Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 07, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BIOL | |
Entity Registrant Name | BIOLASE, INC | |
Entity Central Index Key | 0000811240 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 21,866,197 | |
Entity Current Reporting Status | Yes | |
Entity File Number | 001-36385 | |
Entity Tax Identification Number | 870442441 | |
Entity Address, Address Line One | 4 Cromwell | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | California | |
Entity Address, Postal Zip Code | 92618 | |
City Area Code | 949 | |
Local Phone Number | 361-1200 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 3,720 | $ 8,044 |
Restricted cash | 312 | 312 |
Accounts receivable, less allowance of $952 and $850 in 2019 and 2018, respectively | 9,740 | 11,112 |
Inventory | 12,334 | 12,248 |
Prepaid expenses and other current assets | 952 | 1,591 |
Total current assets | 27,058 | 33,307 |
Property, plant, and equipment, net | 1,585 | 1,975 |
Goodwill | 2,926 | 2,926 |
Other assets | 793 | 308 |
Total assets | 32,362 | 38,516 |
Current liabilities: | ||
Accounts payable | 5,878 | 5,953 |
Accrued liabilities | 4,899 | 7,538 |
Deferred revenue, current portion | 2,513 | 2,476 |
Total current liabilities | 13,290 | 15,967 |
Deferred income taxes, net | 72 | 77 |
Warranty accrual | 735 | 447 |
Other liabilities | 1,145 | 100 |
Term loan | 13,328 | 10,836 |
Total liabilities | 28,570 | 27,427 |
Commitments and contingencies — Note 11 | ||
Stockholders' equity: | ||
Preferred stock, par value $0.001 per share; 1,000 shares authorized; 0 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | ||
Common stock, par value $0.001 per share; 40,000 shares authorized, 21,866 and 21,072 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 22 | 21 |
Additional paid-in-capital | 229,972 | 228,430 |
Accumulated other comprehensive loss | (711) | (670) |
Accumulated deficit | (225,491) | (216,692) |
Total stockholders' equity | 3,792 | 11,089 |
Total liabilities and stockholders' equity | $ 32,362 | $ 38,516 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 952 | $ 850 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 40,000 | 40,000 |
Common stock, shares issued | 21,866 | 21,072 |
Common stock, shares outstanding | 21,866 | 21,072 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations And Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Net revenue | $ 8,645 | $ 12,154 | $ 18,971 | $ 22,174 |
Cost of revenue | 5,265 | 7,846 | 12,070 | 14,833 |
Gross profit | 3,380 | 4,308 | 6,901 | 7,341 |
Operating expenses: | ||||
Sales and marketing | 3,272 | 4,657 | 7,151 | 8,548 |
General and administrative | 2,511 | 2,969 | 4,903 | 6,006 |
Engineering and development | 1,124 | 1,361 | 2,549 | 2,650 |
Change in fair value of patent litigation settlement liability | (190) | |||
Total operating expenses | 6,717 | 8,987 | 14,603 | 17,204 |
Loss from operations | (3,337) | (4,679) | (7,702) | (9,863) |
Loss (gain) on foreign currency transactions | 5 | 187 | 48 | (20) |
Interest expense | 529 | 35 | 1,007 | 47 |
Non-operating loss, net | 534 | 222 | 1,055 | 27 |
Loss before income tax provision | (3,871) | (4,901) | (8,757) | (9,890) |
Income tax provision | 28 | 10 | 42 | 42 |
Net loss | (3,899) | (4,911) | (8,799) | (9,932) |
Other comprehensive income item: | ||||
Foreign currency translation adjustment | 14 | (118) | (41) | (34) |
Comprehensive loss | (3,885) | (5,029) | (8,840) | (9,966) |
Net loss attributable to common stockholders | $ (3,899) | $ (4,911) | $ (8,799) | $ (9,932) |
Net loss per share: | ||||
Basic | $ (0.18) | $ (0.24) | $ (0.41) | $ (0.48) |
Diluted | $ (0.18) | $ (0.24) | $ (0.41) | $ (0.48) |
Shares used in the calculation of net loss per share: | ||||
Basic | 21,595 | 20,538 | 21,366 | 20,504 |
Diluted | 21,595 | 20,538 | 21,366 | 20,504 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock and Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance at Dec. 31, 2017 | $ 29,260 | $ 225,012 | $ (576) | $ (195,177) |
Issuance of common stock upon exercise of options | 2 | |||
Stock offering costs | (38) | |||
Stock-based compensation expense | 1,133 | |||
Other comprehensive (loss) income | (34) | |||
Net loss | (9,932) | (9,932) | ||
Ending balance at Jun. 30, 2018 | 20,390 | 226,109 | (610) | (205,109) |
Beginning balance at Mar. 31, 2018 | 24,937 | 225,626 | (492) | (200,198) |
Stock-based compensation expense | 483 | |||
Other comprehensive (loss) income | (118) | |||
Net loss | (4,911) | (4,911) | ||
Ending balance at Jun. 30, 2018 | 20,390 | 226,109 | (610) | (205,109) |
Beginning balance at Dec. 31, 2018 | 11,089 | 228,451 | (670) | (216,692) |
Issuance of common stock upon exercise of options | 3 | |||
Liability award settlement | 209 | |||
Stock-based compensation expense | 1,122 | |||
Other comprehensive (loss) income | (41) | |||
Net loss | (8,799) | (8,799) | ||
Warrants issued in connection with debt instruments | 209 | |||
Ending balance at Jun. 30, 2019 | 3,792 | 229,994 | (711) | (225,491) |
Beginning balance at Mar. 31, 2019 | 6,973 | 229,290 | (725) | (221,592) |
Liability award settlement | 7 | |||
Stock-based compensation expense | 488 | |||
Other comprehensive (loss) income | 14 | |||
Net loss | (3,899) | (3,899) | ||
Warrants issued in connection with debt instruments | 209 | |||
Ending balance at Jun. 30, 2019 | $ 3,792 | $ 229,994 | $ (711) | $ (225,491) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (8,799) | $ (9,932) |
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities: | ||
Depreciation and amortization | 529 | 509 |
Provision for bad debts | 111 | 230 |
Provision for inventory excess and obsolescence | 59 | |
Amortization of discounts on lines of credit | 109 | 17 |
Amortization of debt issuance costs | 86 | 25 |
Stock-based compensation | 1,204 | 1,258 |
Deferred income taxes | (5) | 2 |
Earned interest income | (1) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,263 | (504) |
Inventory | (86) | (1,769) |
Prepaid expenses and other current assets | 644 | 105 |
Accounts payable and accrued liabilities | (1,720) | 2,074 |
Deferred revenue | 37 | (418) |
Net cash and cash equivalents used in operating activities | (6,627) | (8,345) |
Cash Flows from Investing Activities: | ||
Purchases of property, plant, and equipment | (125) | (110) |
Net cash and cash equivalents used in investing activities | (125) | (110) |
Cash Flows from Financing Activities: | ||
Principal payments under capital lease obligation | (46) | |
Borrowings under line of credit | 1,823 | |
Payments under line of credit | (1,823) | |
Borrowings under term loan | 2,500 | |
Payments of debt issuance costs | (38) | (87) |
Payments of equity offering costs | (138) | |
Proceeds from exercise of stock options | 4 | 2 |
Net cash and cash equivalents provided by (used in) financing activities | 2,466 | (269) |
Effect of exchange rate changes | (38) | (26) |
Decrease in cash, cash equivalents and restricted cash | (4,324) | (8,750) |
Cash, cash equivalents and restricted cash, beginning of period | 8,356 | 11,896 |
Cash, cash equivalents and restricted cash, end of period | 4,032 | 3,146 |
Supplemental cash flow disclosure: | ||
Cash paid for interest | 831 | |
Cash paid for income taxes | 12 | $ 15 |
Cash paid for operating leases | 414 | |
Non-cash accrual for capital expenditures | 17 | |
Non-cash right-of-use assets obtained in exchange for lease obligation | 824 | |
Warrants issued in connection with debt instruments | $ 209 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION The Company BIOLASE, Inc. (“BIOLASE” and, together with its consolidated subsidiaries, the “Company”) is a medical device company that develops, manufactures, markets, and sells laser systems in dentistry and medicine and also markets, sells, and distributes dental imaging equipment, including three-dimensional CAD/CAM intra-oral scanners and digital dentistry software Basis of Presentation The unaudited consolidated financial statements include the accounts of BIOLASE and its wholly-owned subsidiaries and have been prepared on a basis consistent with the December 31, 2018 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments and the elimination of all material intercompany transactions and balances, necessary to fairly present the information set forth therein. These unaudited, interim, consolidated financial statements do not include all the footnotes, presentations, and disclosures normally required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements. The consolidated results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results for the full year. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2018, included in BIOLASE’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission (the “SEC”) on March 8, 2019 (the “2018 Form 10-K”). Liquidity and Management’s Plans The Company incurred a loss from operations and a net loss, and used cash in operating activities for the three and six months ended June 30, 2019. The Company’s recurring losses, level of cash used in operations, and potential need for additional capital, along with uncertainties surrounding the Company’s ability to raise additional capital, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. As of March 31, 2019, the Company was not in compliance with certain of its loan covenants relating to the SWK Loan (as defined below). In May 2019, SWK Funding, LLC granted the Company a waiver of such covenants. On May 7, 2019, the Company entered into an amendment of its Credit Agreement with SWK Funding, LLC to increase the total loan commitment in the SWK Loan from $12.5 million to $15.0 million, to revise certain of the financial covenants and to issue additional warrants to purchase the Company’s common stock. See Note 9 for additional information. As of June 30, 2019, the Company had working capital of approximately $13.8 million. The Company’s principal sources of liquidity as of June 30, 2019 consisted of approximately $4.0 million in cash, cash equivalents and restricted cash and $9.7 million of accounts receivable. In order for the Company to continue operations beyond the next 12 months and be able to discharge its liabilities and commitments in the normal course of business, it must sell its products directly to end users and through distributors, establish profitable operations through increased sales, decrease expenses, generate cash from operations, or obtain additional funds when needed. The Company intends to improve its financial condition and ultimately improve its financial results by increasing revenues through expansion of its product offerings, continuing to expand and develop its field sales force and distributor relationships both domestically and internationally, forming strategic arrangements within the dental and medical industries, educating dental and medical patients as to the benefits of its advanced medical technologies, and reducing expenses. Additional capital requirements may depend on many factors, including, among other things, continued losses, the rate at which the Company’s business grows, demands for working capital, manufacturing capacity, and any acquisitions that the Company may pursue. From time to time, the Company could be required, or may otherwise attempt, to raise capital, through either equity or debt offerings, or enter into an additional line of credit facility. Reverse Stock Split Except as the context otherwise requires, all share numbers and share price amounts (including exercise prices and closing market prices) contained in the unaudited financial statements and notes thereto reflect the one-for-five reverse stock split (“the Reverse Stock Split”) effectuated by the Company on May 10, 2018. See Note 4 below for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of these unaudited consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect amounts reported in the consolidated financial statements and the accompanying notes. Significant estimates in these unaudited consolidated financial statements include allowances on accounts receivable, inventory, and deferred taxes, as well as estimates for accrued warranty expenses, goodwill and the ability of goodwill to be realized, revenue deferrals, effects of stock-based compensation and warrants, contingent liabilities, and the provision or benefit for income taxes. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ materially from those estimates. Critical Accounting Policies Information with respect to the Company’s critical accounting policies, which management believes could have the most significant effect on the Company’s reported results and require subjective or complex judgments by management is contained in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of the 2018 Form 10-K. Management believes that there have been no significant changes during the six months ended June 30, 2019 in the Company’s critical accounting policies from those disclosed in Item 7 of the 2018 Form 10-K. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market (or, if none exists, the most advantageous market) for the specific asset or liability at the measurement date (referred to as the “exit price”). The fair value is based on assumptions that market participants would use, including a consideration of non-performance risk. Under the accounting guidance for fair value hierarchy, there are three levels of measurement inputs. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable, either directly or indirectly. Level 3 inputs are unobservable due to little or no corroborating market data. The Company’s financial instruments, consisting of cash, cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities, and the SWK Loan as discussed in Note 9, approximate fair value because of the liquid or short-term nature of these items. Concentration of Credit Risk, Interest Rate Risk and Foreign Currency Exchange Rate Financial instruments which potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents, restricted cash, and trade accounts receivable. The Company maintains its cash and cash equivalents and restricted cash with established commercial banks. At times, balances may exceed federally insured limits. To minimize the risk associated with trade accounts receivable, management performs ongoing credit evaluations of customers’ financial condition and maintains relationships with the Company’s customers that allow management to monitor current changes in business operations so the Company can respond as needed. The Company does not, generally, require customers to provide collateral before it sells them its products. However, the Company has required certain distributors to make prepayments for significant purchases of products. Substantially all of the Company’s revenue is denominated in U.S. dollars, including sales to international distributors. Only a small portion of its revenue and expenses is denominated in foreign currencies, principally the Euro and Indian Rupee. The Company’s foreign currency expenditures primarily consist of the cost of maintaining offices, consulting services, and employee-related costs. During the six-month periods ended June 30, 2019 and 2018, the Company did not enter into any hedging contracts. Future fluctuations in the value of the U.S. dollar may affect the price competitiveness of the Company’s products outside the U.S. Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (the “FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined not to be applicable or are expected to have minimal impact on the Company’s consolidated financial position and results of operations. Adopted Accounting Pronouncements In February 2016, the FASB established ASU Topic 842 – Leases, by issuing ASU Topic No. 2016-02 (“Topic 842”), which requires lessees to recognize lease on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU Topic 2018-11 – Targeted Improvements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and a lease liability for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The Company adopted Topic 842 in the first quarter of 2019 utilizing the modified retrospective transition method and a cumulative effect adjustment at the beginning of the first quarter of 2019. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date, and (3) initial direct costs for any existing leases as of the adoption date. The Company did not elect to apply the hindsight practical expedient when determining lease term and assessing impairment of the right-to-use assets. The adoption of Topic 842 resulted in the recognition of right-of use assets of approximately $0.8 million after a $0.2 million adjustment for deferred rent, and lease liabilities for operating leases of approximately $1.0 million, and no cumulative effect adjustment on retained earnings on its unaudited Consolidated Balance Sheets nor material impact to its unaudited Consolidated Statements of Operations and Comprehensive Loss in the period of adoption. Right-of-use assets are included in Other assets, and lease liabilities are included in Accrued liabilities or Other liabilities in the unaudited consolidated balance sheet for the period ended June 30, 2019. See Note 10 for additional information. Recently Issued Accounting Standards In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company will be required to use a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The standard will be effective for the Company beginning January 1, 2020, with early adoption permitted beginning January 1, 2019. The Company is currently evaluating the impact of this standard on the Company’s consolidated financial statements, including accounting policies, processes, and systems. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | NOTE 3 – REVENUE RECOGNITION Contracts with Customers Revenue for sales of products and services is derived from contracts with customers. The products and services promised in customer contracts include delivery of laser systems, imaging systems, and consumables as well as certain ancillary services such as training and extended warranties. Contracts with each customer generally state the terms of the sale, including the description, quantity and price of each product or service. Payment terms are stated in the contract and vary according to the arrangement. Because the customer typically agrees to a stated rate and price in the contract that does not vary over the life of the contract, the Company’s contracts do not contain variable consideration. The Company establishes a provision for estimated warranty expense. Performance Obligations At contract inception, the Company assesses the products and services promised in its contracts with customers. The Company then identifies performance obligations to transfer distinct products or services to the customers. In order to identify performance obligations, the Company considers all of the products or services promised in contracts regardless of whether they are explicitly stated or are implied by customary business practices. Revenue from products and services transferred to customers at a single point in time accounted for 81% and 82% of net revenue for the three and six months ended June 30, 2019, respectively, and 87% and 85% for the three and six months ended June 30, 2018, respectively. The majority of the Company’s revenue recognized at a point in time is for the sale laser systems, imaging systems, and consumables. Revenue from these contracts is recognized when the customer is able to direct the use of and obtain substantially all of the benefits from the product which generally coincides with title transfer during the shipping process. Revenue from services transferred to customers over time accounted for 19% and 18% of net revenue for the three and six months ended June 30, 2019, respectively, and 13% and 15% for the three and six months ended June 30, 2018, respectively. The majority of the Company’s revenue that is recognized over time relates to product training and extended warranties. Deferred revenue attributable to undelivered elements, which primarily consists of product training, totaled approximately $0.6 million and $0.7 million as of June 30, 2019 and December 31, 2018, respectively. Transaction Price Allocation The transaction price for a contract is allocated to each distinct performance obligation and recognized as revenue when, or as, each performance obligation is satisfied. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the best estimate of the standalone selling price of each distinct good or service in a contract. The primary method used to estimate standalone selling price is the observable price when the good or service is sold separately in similar circumstances and to similar customers. Significant Judgments Revenue is recorded for extended warranties over time as the customer benefits from the warranty coverage. This revenue will be recognized equally throughout the contract period as the customer receives benefits from the Company's promise to provide such services. Revenue is recorded for product training as the customer attends a training program or upon the expiration of the obligation, which is generally after nine months. The Company also has contracts that include both the product sales and product training as performance obligations. In those cases, the Company records revenue for product sales at the point in time when the product has been shipped. The customer obtains control of the product when it is shipped, as all shipments are made FOB shipping point, and after the customer selects its shipping method and pays all shipping costs and insurance. The Company has concluded that control is transferred to the customer upon shipment. Accounts Receivable Accounts receivable are stated at estimated net realizable value. The allowance for bad debts is based on an analysis of customer accounts and the Company’s historical experience with accounts receivable write-offs. Contract Liabilities The Company performs its obligations under a contract with a customer by transferring products and/or services in exchange for consideration from the customer. The Company typically invoices its customers as soon as control of an asset is transferred and a receivable for the Company is established. The Company, however, recognizes a contract liability when a customer prepays for goods and/or services and the Company has not transferred control of the goods and/or services. The opening and closing balances of the Company’s contract liabilities are as follows (in thousands): June 30, December 31, 2019 2018 Undelivered elements (training, installation, product and support services) $ 563 $ 730 Extended warranty contracts 1,945 1,735 Deferred royalties 5 11 Total deferred revenue 2,513 2,476 Less long-term portion of deferred revenue — — Deferred revenue — current $ 2,513 $ 2,476 The balance of contract assets was immaterial as the Company did not have a significant amount of uninvoiced receivables at June 30, 2019 and December 31, 2018. The amount of revenue recognized during the six-month period ended June 30, 2019 and June 30, 2018, and included in the opening contract liability balance related to undelivered elements was $0.3 million and $0.6 million, respectively. The amount of revenue recognized during the six-month period ended June 30, 2019 and June 30, 2018 related to extended warranty contracts was $0.4 million and $0.7 million respectively. Revenue recognized during 2018 and 2019 relating to deferred royalties was not material in either period. Disaggregation of Revenue The Company disaggregates revenue from contracts with customers into geographical regions and by the timing of when goods and services are transferred. The Company determined that disaggregating revenue into these categories depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by regional economic factors. The Company’s revenues related to the following geographic areas were as follows for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 United States $ 5,898 $ 7,164 $ 12,014 $ 12,857 International 2,747 4,990 6,957 9,317 $ 8,645 $ 12,154 $ 18,971 $ 22,174 Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenue recognized over time $ 1,646 $ 1,557 $ 3,415 $ 3,254 Revenue recognized at a point in time 6,999 10,597 15,556 18,920 Total $ 8,645 $ 12,154 $ 18,971 $ 22,174 The Company’s sales by end market were as follows for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 End-customer $ 5,553 $ 7,675 $ 11,254 $ 13,712 Distributors 3,092 4,479 7,717 8,462 $ 8,645 $ 12,154 $ 18,971 $ 22,174 The Company acts as the principal in all its imaging equipment distribution sales. The Company takes possession and control of the equipment before they are sold and transferred to the customer. The Company provides the equipment and any related services directly to the customer. The Company has inventory risk before the equipment is transferred to a customer. The Company purchases and obtains the goods before obtaining a contract with a customer. The Company also has discretion in establishing the price sold to the customer for the equipment. The percentages of the Company’s sales by product line were as follows for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Laser systems 56.9 % 65.2 % 57.4 % 61.4 % Imaging systems 0.7 % 3.1 % 3.2 % 4.3 % Consumables and other 24.2 % 18.9 % 22.2 % 19.6 % Services 18.2 % 12.8 % 17.2 % 14.7 % License fees and royalties — % — % — % — % 100.0 % 100.0 % 100.0 % 100.0 % Shipping and Handling Costs and Revenues Shipping and freight costs are treated as fulfillment costs. For shipments to end-customers, the customer bears the shipping and freight costs and has control of the product upon shipment. For shipments to distributors, the distributor bears the shipping and freight costs, including insurance, tariffs and other import/export costs. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 4—STOCKHOLDERS’ EQUITY Reverse Stock Split At BIOLASE’s annual meeting of stockholders on May 9, 2018 (the “2018 Annual Meeting”), BIOLASE stockholders approved an amendment to BIOLASE’s Restated Certificate of Incorporation, as amended, to effect the Reverse Stock Split of BIOLASE common stock and on May 10, 2018, the Company filed an amendment (the “Amendment”) to its Restated Certificate of Incorporation, as amended, with the Secretary of State of the State of Delaware to effect the Reverse Stock Split, effective as of 11:59 p.m. on May 10, 2018. The Amendment also reduced the authorized shares of common stock from 200,000,000 shares to 40,000,000 shares. Prior year share and per share amounts have been adjusted to reflect the impact of the Reverse Stock Split. Stock-Based Compensation 2002 Stock Incentive Plan The 2002 Stock Incentive Plan (as amended effective as of May 26, 2004, November 15, 2005, May 16, 2007, May 5, 2011, June 6, 2013, October 30, 2014, April 27, 2015, and May 6, 2016, the “2002 Plan”) was replaced by the 2018 Plan (as defined below) with respect to future equity awards. Persons eligible to receive awards under the 2002 Plan included officers, employees, and directors of the Company, as well as consultants. As of June 30, 2019, a total of approximately 3.1 million shares of the Company’s common stock have been authorized for issuance under the 2002 Plan, of which approximately 1.5 million shares of the Company’s common stock have been issued pursuant to options that were exercised and restricted stock units (“RSUs”) that were settled in common stock and 1.6 million shares of common stock have been reserved for outstanding options and unvested RSUs, and no shares are available for future grants. 2018 Stock Incentive Plan At the 2018 Annual Meeting, the Company’s stockholders approved the 2018 Long-Term Incentive Plan (as amended, the “2018 Plan”), which was amended by Amendment No. 1 to the 2018 Plan, approved by the Company’s stockholders at a special meeting on September 21, 2018 and Amendment No. 2 to the 2018 Plan, approved by the Company’s stockholder’s at its annual meeting of stockholders on May 15, 2019. The purposes of the 2018 Plan are (i) to align the interests of the Company’s stockholders and recipients of awards under the 2018 Plan by increasing the proprietary interest of such recipients in the Company’s growth and success; (ii) to advance the interests of the Company by attracting and retaining non-employee directors, officers, other employees, consultants, independent contractors and agents; and (iii) to motivate such persons to act in the long-term best interests of the Company and its stockholders. Subject to the terms and conditions of the 2018 Plan, the number of shares authorized for grants under the 2018 Plan is 5.0 million. As of June 30, 2019, a total 1.4 million shares of the Company’s common stock have been reserved for outstanding options and unvested RSUs, and 3.6 million shares of common stock remain available for future grants. The Company recognized stock-based compensation expense of $0.5 million and $0.6 million, for the three months ended June 30, 2019 and June 30, 2018, respectively, and $1.2 million and $1.3 million for the six months ended June 30, 2019 and June 30, 2018, respectively, based on the grant-date fair value. As of June 30, the Company had approximately $1.6 million of total unrecognized compensation expense, net of estimated forfeitures, related to unvested share-based compensation arrangements. The Company expects that expense to be recognized over a weighted-average period of 2.0 years. The following table summarizes the income statement classification of compensation expense associated with share-based payments (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Cost of revenue $ 54 $ 105 $ 136 $ 162 Sales and marketing 78 154 238 234 General and administrative 283 207 724 674 Engineering and development 32 91 106 188 $ 447 $ 557 $ 1,204 $ 1,258 The stock option fair values were estimated using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Expected term 6.1 years 5.7 years 6.1 years 5.9 years Volatility 85.0 % 81.2 % 85.8 % 81.4 % Annual dividend per share $ — $ — $ — $ — Risk-free interest rate 2.50 % 2.71 % 2.60 % 2.46 % A summary of option activity for the six months ended June 30, 2019 is as follows (in thousands, except per share data): Weighted Average Weighted Remaining Average Contractual Aggregate Shares Exercise Price Term (Years) Intrinsic Value(1) Options outstanding, December 31, 2018 1,623 $ 6.54 $ — Granted at fair market value 70 $ 2.08 Exercised (2 ) $ 2.10 Forfeited, cancelled, or expired (159 ) $ 5.77 Options outstanding at June 30, 2019 1,532 $ 6.42 5.46 $ 16,200 Options exercisable at June 30, 2019 1,165 $ 7.56 4.61 $ — Vested options expired during the quarter ended June 30, 2019 14 $ 13.25 (1) The intrinsic value calculation does not include negative values. This can occur when the fair market value on the reporting date is less than the exercise price of the grant. A summary of unvested stock option activity for the six months ended June 30, 2019 is as follows (in thousands, except per share data): Weighted Average Grant Shares Date Fair Value Unvested options at December 31, 2018 522 $ 2.11 Granted 70 $ 1.53 Vested (147 ) $ 2.94 Forfeited or cancelled (78 ) $ 2.62 Unvested options at June 30, 2019 367 $ 1.56 Cash proceeds, along with fair value disclosures related to grants, exercises and vested options are as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Proceeds from stock options exercised $ — $ — $ 3 $ 2 Tax benefit related to stock options exercised (1) N/A N/A N/A N/A Intrinsic value of stock options exercised (2) $ — $ — $ — $ — Weighted-average fair value of options granted during period $ 1.53 $ 1.27 $ 1.53 $ 1.46 Total fair value of shares vested during the period $ 90 $ 843 $ 431 $ 245 (1) Excess tax benefits received related to stock option exercises are presented as operating cash inflows. The Company currently does not receive a tax benefit related to the exercise of stock options due to the Company’s net operating losses. (2) The intrinsic value of stock options exercised is the amount by which the market price of the stock on the date of exercise exceeded the market price of the stock on the date of grant. Restricted Stock Units There were no material grants made during the three and six months ended June 30, 2019. A summary of unvested RSU activity for the six months ended June 30, 2019 is as follows (in thousands, except per share amounts): Weighted Average Grant Shares Date Fair Value Unvested RSUs at December 31, 2018 2,163 $ 1.84 Granted 97 $ 2.08 Vested (794 ) $ 1.74 Forfeited or cancelled (213 ) $ 2.37 Unvested RSUs at June 30, 2019 1,253 $ 1.87 Warrants The Company issues warrants to acquire shares of the Company’s common stock as approved by the Board. A summary of warrant activity for the six months ended June 30, 2019 is as follows (in thousands, except exercise price amounts): Weighted Average Shares Exercise Price Warrants outstanding, December 31, 2018 1,934 $ 6.62 Granted or Issued 149 $ 2.22 Exercised — $ — Forfeited, cancelled, or expired — $ — Warrants outstanding at June 30, 2019 2,083 $ 6.30 Warrants exercisable at June 30, 2019 2,083 $ 6.30 Vested warrants expired during the quarter ended June 30, 2019 — $ — See Note 9 for additional information on the Western Alliance Warrants, the SWK Warrants, and the DPG Warrants (each as defined below). Net Loss Per Share – Basic and Diluted Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted-average number of shares of the Company’s common stock outstanding for the period. In computing diluted net loss per share, the weighted average number of shares outstanding is adjusted to reflect the effect of potentially dilutive securities. Outstanding stock options, RSUs and warrants to purchase approximately 5.7 million shares were not included in the calculation of diluted loss per share for the three and six months ended June 30, 2019, as their effect would have been anti-dilutive. For the same 2018 periods, anti-dilutive outstanding stock options and warrants to purchase 3.8 million shares were not included in the computation of diluted loss per share. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 5—INVENTORY Inventory is valued at the lower of cost or net realizable value and is comprised of the following (in thousands): June 30, December 31, 2019 2018 Raw materials $ 3,909 $ 3,590 Work-in-process 1,342 1,435 Finished goods 7,083 7,223 Inventory $ 12,334 $ 12,248 Inventory includes write-downs for excess and obsolete inventory totaling approximately $1.1 million and $1.1 million as of June 30, 2019 and December 31, 2018, respectively. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant, and Equipment | NOTE 6—PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment, net is comprised of the following (in thousands): June 30, December 31, 2019 2018 Building $ 211 $ 213 Leasehold improvements 2,004 2,004 Equipment and computers 7,423 7,277 Furniture and fixtures 634 634 Construction in progress 20 25 10,292 10,153 Accumulated depreciation and amortization (8,872 ) (8,344 ) 1,420 1,809 Land 165 166 Property, plant, and equipment, net $ 1,585 $ 1,975 Depreciation and amortization expense related to property, plant, and equipment totaled $0.3 million and $0.5 million for the three and six months ended June 30, 2019, respectively, and $0.2 million and $0.5 million for the three and six months ended June 30, 2018. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets And Goodwill | NOTE 7—INTANGIBLE ASSETS AND GOODWILL The Company conducted its annual impairment test of goodwill as of June 30, 2019 and determined that there was no impairment. The Company also tests its intangible assets and goodwill between the annual impairment tests if events occur or circumstances change that would more likely than not reduce the fair value of the Company or its assets below their carrying amounts. For intangible assets subject to amortization, the Company performs its impairment test when indicators, such as reductions in demand or significant economic slowdowns, are present. No events have occurred since June 30, 2019 through the date of these unaudited consolidated financial statements that would trigger further impairment testing of the Company’s intangible assets and goodwill. As of June 30, 2019 and December 31, 2018, the Company had goodwill of $2.9 million. As of June 30, 2019 and December 31, 2018, all intangible assets have been fully amortized and no amortization expense was recognized during the three and six months ended June 30, 2019 and 2018. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | NOTE 8—ACCRUED LIABILITIES Accrued liabilities are comprised of the following (in thousands): June 30, December 31, 2019 2018 Payroll and benefits $ 1,660 $ 2,400 Patent litigation settlement — 1,500 Warranty accrual, current portion 764 861 Lease liability 565 — Accrued professional services 1,060 1,044 Taxes 412 714 Accrued insurance premium 44 328 Customer deposits 19 21 Other 375 670 Total accrued liabilities $ 4,899 $ 7,538 Changes in the initial product warranty accrual and the expenses incurred under the Company’s initial and extended warranties for the three and six months ended June 30, 2019 and 2018 are included within accrued liabilities on the Consolidated Balance Sheets and were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Balance, beginning of period $ 1,384 $ 1,214 $ 1,308 $ 1,190 Provision for estimated warranty cost 383 378 622 624 Warranty expenditures (268 ) (233 ) (431 ) (455 ) Balance, June 30 1,499 1,359 1,499 1,359 Less warranty accrual, long-term 735 221 735 221 Total warranty accrual, current portion $ 764 $ 1,138 $ 764 $ 1,138 The Company’s Waterlase laser systems sold worldwide are covered by a warranty against defects in material and workmanship for a period of up to 16 months domestically and up to 28 months internationally, from the date of sale by the Company or a distributor to the end-user. The Company’s Diode systems sold worldwide are covered by a warranty against defects in material and workmanship for a period of up to 28 months from the date of sale by the Company or a distributor to the end-user. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 9—DEBT The following table presents the details of the principal outstanding and unamortized discount (in thousands): June 30, December 31, 2019 2018 Term loan $ 15,000 $ 12,500 Discount and debt issuance costs on term loan (1,672 ) (1,664 ) Total long-term debt, net $ 13,328 $ 10,836 Line of Credit On March 6, 2018, BIOLASE and two of its wholly-owned subsidiaries (such subsidiaries, together with BIOLASE, the “Borrower”) entered into the Business Financing Agreement (the “Business Financing Agreement”) with Western Alliance Bank (“Western Alliance”). The Business Financing Agreement required the Company to maintain compliance with certain financial and non-financial covenants, as defined therein. Western Alliance had the right to declare the amounts outstanding under the Business Financing Agreement immediately due and payable upon a default. Amounts outstanding under the Business Financing Agreement bore interest at a per annum floating rate equal to the greater of 4.5% or the “Prime Rate” published in the Money Rates section of the Western Edition of The Wall Street Journal (or such other rate of interest publicly announced from time to time by Western Alliance as its “Prime Rate”), plus 1.5% with respect to advances made under the line of credit, plus an additional 5.0% during any period that an event of default occurred and was continuing. The commitment fee under the Business Financing Agreement was 0.25% of the domestic credit limit and 1.75% of the EXIM credit limit, payable on March 6, 2018 and each anniversary thereof. Pursuant to the Business Financing Agreement, the Company paid the first of two annual commitment fees totaling $67,500, being 0.25% of the aggregate $6.0 million commitment for the Domestic Revolver and 1.75% of the aggregate $3.0 million commitment for the EXIM Revolver. The commitment fees and the legal costs associated with acquiring the credit facilities were capitalized and were amortized on a straight-line basis as interest expense over the term of the Business Financing Agreement. As additional consideration for the lines of credit, the Company also issued to Western Alliance warrants to purchase shares of the Company’s common stock (the “Original Western Alliance Warrants”). The fair value of the Original Western Alliance Warrants was estimated using the Black-Scholes option-pricing model with the following assumptions: expected term of 10 years; volatility of 91.49%; annual dividend per share of $0.00; and risk-free interest rate of 2.88%; and resulted in an estimated fair value of $0.1 million, which was recorded as a liability and resulted in a discount to the credit facilities at issuance. The discount was expensed to interest expense at the time the Business Financing Agreement was terminated, as discussed below. On August 13, 2018, the Borrower and Western Alliance entered into a Waiver and Business Financing Modification Agreement, pursuant to which Western Alliance waived certain of the Borrower’s covenants under the Business Financing Agreement and provided an advance of $1.5 million, which advance was due by September 27, 2018. On September 27, 2018, the Borrower and Western Alliance entered into a second Business Financing Modification Agreement which reduced the credit limit under the Business Financing Agreement to $2.5 million and extended the due date of the $1.5 million advance to March 6, 2019. In connection with the agreement, the Original Western Alliance Warrants were terminated, and the Company issued to Western Alliance new warrants (the “Western Alliance Warrants”) to purchase up to 56,338 shares of the Company’s common stock. The Western Alliance Warrants are immediately exercisable and expire on September 27, 2028. These warrants contain down-round features that require the Company to adjust the exercise price proportionately should the Company issue shares at a price less than the $2.13 per share exercise price. On October 22, 2018, the Borrower and Western Alliance entered into a third Business Financing Modification Agreement, pursuant to which Western Alliance waived BIOLASE’s non-compliance with certain financial operating covenants as set forth in the Business Financing Agreement, and the Borrower agreed to certain amended covenants contained in the Business Financing Agreement, including a $300,000 minimum unrestricted cash balance covenant and a waiver of reporting items required to be delivered by BIOLASE to Western Alliance under the Business Financing Agreement. On November 9, 2018, all outstanding borrowings, accrued interest and fees under the Business Financing Agreement were repaid with a portion of the proceeds under the Credit Agreement (as defined and described below), and the Business Financing Agreement was terminated. The Company recorded approximately $0.1 million of interest expense including unamortized debt issuance costs that were written-off upon extinguishment of the debt. As of June 30, 2019 and December 31, 2018, the Western Alliance Warrants remain outstanding and are classified in equity in the consolidated balance sheet. Term Loan On November 9, 2018, the Company entered into a five-year secured Credit Agreement (the “Credit Agreement”) with SWK Funding LLC (“SWK”), pursuant to which the Company has borrowed $12.5 million (the “SWK Loan”). The Company’s obligations under the Credit Agreement are secured by substantially all of the Company’s assets. Under the terms of the Credit Agreement, repayment of the loan is interest-only for the first two years, paid quarterly with the option to extend the interest-only period. Principal repayments will begin in the first quarter of 2021 and will be approximately $0.7 million quarterly until the loan matures in the fourth quarter of 2023. The loan bears interest at London Interbank Bank Offered Rate (“LIBOR”) plus 10% or another index that approximates LIBOR as close as possible if and when LIBOR no longer exists. Approximately $0.9 million of the proceeds from the SWK Loan were used to pay off all amounts owed to Western Alliance under the Business Financing Agreement. The Company plans to use the remaining proceeds to provide additional working capital to fund its growth initiatives, such as broadening its customer base and increasing the utilization of its products to drive recurring higher margin consumables revenue. The Credit Agreement contains financial and non-financial covenants requiring the Company to, among other things, (i) maintain unencumbered liquid assets of no less than $1.5 million or the sum of aggregate cash flow from operations less capital expenditures, ii) achieve certain revenue and EBITDA levels during the first two years of the loan, (iii) limit future borrowing, investments and dividends, and (iv) submit monthly and quarterly financial reporting. In connection with the SWK Loan, the Company paid approximately $1.0 million in debt issuance costs, including a $0.2 million loan origination fee, a $0.4 million finder’s fee, and $0.4 million in legal and other fees. These costs were recognized as a discount on the SWK Loan and are being amortized on a straight-line basis over the loan term which approximates the effective-interest method. The Company recognized approximately $0.5 million in interest expense relating to the SWK Loan for the period ended June 30, 2019. The weighted-average interest rate for the three months ended June 30, 2019 was 12.7%. As of March 31, 2019, the Company was not in compliance with certain covenants in the Credit Agreement, as described in Note 9 and in May 2019, SWK granted the Company a waiver of such covenants. On May 7, 2019, the Company and SWK agreed to amend the Credit Agreement (the “First Amendment) to increase the total commitment from $12.5 million to $15.0 million, and to revise the financial covenants to (a) adjust minimum revenue and EBITDA levels, (b) require the Company to have a shelf registration statement declared effective by the Securities and Exchange Commission before September 30, 2019, with a proposed maximum aggregate offering price of at least $10.0 million if the Company does not reach set minimum revenue levels for the three-month period ended June 30, 2019, and (c) require minimum liquidity of $1.5 million at all times. The First Amendment provides that if aggregate minimum revenue and EBITDA levels are not achieved by September 30, 2019, the minimum liquidity requirement will be increased to $3.0 million, until the Company has obtained additional equity or debt funding of no less than $5.0 million. In connection with the amendment, the Company paid to SWK loan origination and other fees of approximately $0.1 million payable in cash and approximately $0.2 million in additional SWK Warrants (as defined below) to purchase the Company’s common stock. The Company will also pay an additional finder’s fee to Deal Partners Group (“DPG”) of approximately $0.1 million in cash and $0.1 million in additional DPG Warrants to purchase the Company’s common stock. The Company accounted for the First Amendment as a modification to existing debt and as a result, recognized the amounts paid to SWK in cash and warrants as additional debt issuance costs. Amounts paid to DPG in cash and warrants relating to the First Amendment were expensed as incurred in the Company’s consolidated statement of operations for the three and six months ended June 30, 2019. SWK Warrants In connection with the Credit Agreement, as amended, the Company issued warrants to SWK (the “SWK Warrants”) on November 9, 2018 to purchase up to 372,023 and on May 7, 2019, to purchase up to 115,175 shares of the Company’s common stock. The SWK Warrants are immediately exercisable and expire 7 years after the issuance date. The exercise price of the SWK Warrants issued on November 9, 2018 is $1.34 and the exercise price of the SWK Warrants issued on May 7, 2019 is $2.17, both of which were based on the average closing price of the Company’s common stock for the ten trading days immediately preceding the issuance date. These warrants contain down-round features that require the Company to adjust the exercise price proportionately should the Company issue shares at a price per share less than the exercise price. The fair value of the 372,023 SWK Warrants issued on November 9, 2018 was $0.4 million and estimated using the Black-Scholes option-pricing model with the following assumptions: expected term of 8 years; volatility of 81.79%; annual dividend per share of $0.00; and risk-free interest rate of 3.13%. The fair value of the 115,175 SWK Warrants issued on May 7, 2019 was $0.2 million and estimated using a binomial option pricing model with the following assumptions: expected term of 8 years; volatility of 80.73%; annual dividend per share of $0.00; and a risk-free rate of 2.37%. DPG Warrants In connection with the SWK Loan, the Company paid a finder’s fee to DPG of $0.5 million cash and issued warrants (“the DPG warrants) on November 9, 2018 to purchase up to 279,851 shares of common stock and on May 7, 2019 to purchase up to 34,552 shares of the Company’s common stock. The DPG Warrants are exercisable immediately and expire 7 years after the issuance date. The exercise price of the DPG Warrants issued on November 9, 2018 is $1.34 and the exercise price of the DPG warrants issued on May 7, 2019 is $2.17, both of which were based on the average closing price of the Company’s common stock for the ten trading days immediately preceding the issuance date. These warrants contain down-round features that require the Company to adjust the exercise price proportionately should the Company issue shares at a price per share less than the exercise price. The fair value of the 279,851 DPG Warrants issued on November 9, 2018 was $0.3 million was estimated using the Black Scholes option pricing model with the following assumptions: ex pected term of 8 years; volatility of 81.79%; annual dividend per share of $0.00; and risk-free interest rate of 3.13%. The fair value of the 34,552 DPG Warrants issued on May 7, 2019 was $0.1 million and estimated using a binomial option pricing model with the following assumptions: expected term of 8 years; volatility of 80.73%; annual dividend per share of $0.00; and a risk-free rate of 2.37%. The value of both of the SWK Warrants issued in 2018 and 2019 and the DPG Warrants issued in 2018, was recognized as a discount on the SWK Loan and is being amortized on a straight-line basis which approximates the effective-interest method, over the loan term of five years. The value of the DPG Warrants issued in 2019 in connection with the First Amendment were expensed in the three-month period ended June 30, 2019. Additionally, based on the adoption of ASU 2017-11 in the fourth quarter of 2018, these warrants are classified as equity in the consolidated Balance Sheets as of June 30, 2019 and December 31, 2018. The future minimum principal and interest payments as of June 30, 2019 are as follows (in thousands): Principal Interest (1) 2019 $ — $ 936 2020 — 1,872 2021 2,100 1,654 2022 2,800 1,304 2023 10,100 955 Total future payments $ 15,000 $ 6,721 (1) estimated using LIBOR rates as at June 30, 2019 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | NOTE 10— LEASES The Company enters into operating leases primarily for real estate, office equipment, and fleet vehicles. Lease terms generally range from one to five years, and often include options to renew for one year. On January 1, 2019, the Company adopted Topic 842, using the modified-retrospective approach as discussed in Note 2, and as a result recognized a right-of-use asset of approximately $0.8 million as adjusted for deferred rent at the date of adoption of $0.2 million, and a lease liability of approximately $1.0 million. No cumulative-effect adjustment to retained earnings was required upon adoption of Topic 842. Right-of-use assets are recorded in Other assets and lease liabilities are included in Accrued liabilities or Other liabilities depending on whether they are current or noncurrent. Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate (“IBR”) to determine the present value of the lease payments and on the date of adoption, the Company determined its IBR to be 12.78%. This rate was based on the Company’s financing of the SWK Loan which is a collateralized loan, and was based on prevailing market rates during the fourth quarter of 2018. Information related to the Company’s right-of-use assets and related liabilities were as follows (in thousands): Six Months Ended June 30, 2019 Cash paid for operating lease liabilities $ 414 Right-of-use assets obtained in exchange for new operating lease obligations 803 Weighted-average remaining lease term 1.6 years Weighted-average discount rate 12.8 % The Company allocates lease cost amongst lease and non-lease components. The Company excludes short-term leases (those with lease terms of less than one year at inception) from the measurement of lease liabilities or right-of-use assets. Maturities of lease liabilities as of June 30, 2019 were as follows (in thousands): Due in 12 month period ended June 30, 2020 $ 622 2021 63 Thereafter — $ 685 Less imputed interest (42 ) Total lease liabilities $ 643 Current operating lease liabilities 565 Non-current lease liabilities 78 Total lease liabilities $ 643 As of June 30, 2019, right-of-use assets were $0.5 million and lease liabilities were $0.6 million. During the three and six months ended June 30, 2019, the Company did not enter into any new lease arrangements, nor did it have any arrangements that had not commenced. Future minimum rental commitments under lease agreements, as of June 30, 2019, with non-cancelable terms greater than one year for each of the periods ending June 30, are as follows (in thousands): Period Ended June 30, 2019 2019 $ 622 2020 63 2021 — 2022 and thereafter — Total future minimum lease obligations $ 685 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11— COMMITMENTS AND CONTINGENCIES On April 24, 2012, CAO Group, Inc. (“CAO”) filed a lawsuit against BIOLASE in the District of Utah alleging that BIOLASE’s ezlase dental laser infringes on U.S. Patent No. 7,485,116 (the “116 Patent”). On September 9, 2012, CAO amended its complaint, adding claims for (1) business disparagement/injurious falsehood under common law and (2) unfair competition under 15 U.S.C. Section 1125(a). The additional claims stem from a press release that BIOLASE issued on April 30, 2012, which CAO claims contained false statements that are disparaging to CAO and its diode product. The amended complaint sought injunctive relief, treble damages, attorneys’ fees, punitive damages, and interest. Until January 24, 2018, this lawsuit was stayed in connection with United States Patent and Trademark Office proceedings relating to the 116 Patent, which proceedings ultimately culminated in a January 27, 2017 decision by the United States Court of Appeals for the Federal Circuit, affirming the findings of the Patent Trial and Appeal Board, which were generally favorable to the Company. On January 25, 2018, CAO moved for leave to file a second amended complaint to add certain claims, which filing the Company is not opposing. On January 23, 2018, CAO filed a lawsuit against BIOLASE in the Central District of California alleging that BIOLASE’s diode lasers infringe on U.S. Patent Nos. 8,337,097, 8,834,497, 8,961,040 On January 25, 2019 (the “Effective Date”), BIOLASE entered into a settlement agreement (the “Settlement Agreement”) with CAO. Pursuant to the Settlement Agreement, CAO agreed to dismiss with prejudice the lawsuits filed by CAO against the Company in April 2012 and January 2018. In addition, CAO granted to the Company and its affiliates a non-exclusive, non-transferable (except as provided in the Settlement Agreement), royalty-free, fully-paid, worldwide license to the licensed patents for use in the licensed products and agreed not to sue the Company, its affiliates or any of its manufacturers, distributors, suppliers or customers for use of the licensed patents in the licensed products, and the parties agreed to a mutual release of claims. The Company has agreed (i) to pay to CAO, within five days of the Effective Date, $500,000 in cash, (ii) to issue to CAO, within 30 days of the Effective Date, 500,000 restricted shares of common stock of the Company (the “Stock Consideration”), and (iii) to pay to CAO, within 30 days of December 31, 2021, an amount in cash equal to the difference (if positive) between $1,000,000 and the value of the Stock Consideration on December 31, 2021. The Stock Consideration vests and becomes transferrable on December 31, 2021, subject to the terms of a restricted stock agreement to be entered into between the parties. The Company considered this a Type I subsequent event and recognized a $1.5 million contingent loss on patent litigation settlement in its statement of operations for the year ended December 31, 2018. In January 2019, the Company paid CAO $500,000 in cash. On January 31, 2019, the case was dismissed with prejudice. During the three and six month periods ended June 30, 2019, the Company recorded an additional gain on patent litigation of $0.2million and $0.0 million, respectively, million which represents the change in fair value of the restricted stock to be issued to CAO, resulting in a total $1.0 million accrued liability as of June 30, 2019. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 12—SEGMENT INFORMATION The Company currently operates in a single business segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. For the three and six months ended June 30, 2019, sales to customers in the United States accounted for approximately 68% and 63% of net revenue, respectively, and international sales accounted for approximately 32% and 37% of net revenue, respectively. No individual country, other than the United States, represented more than 10% of total net revenue during the three and six months ended June 30, 2019 or 2018. Net revenue by geographic location based on the location of customers was as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 United States $ 5,898 $ 7,164 $ 12,014 $ 12,857 International 2,747 4,990 6,957 9,317 $ 8,645 $ 12,154 $ 18,971 $ 22,174 Property, plant, and equipment by geographic location was as follows (in thousands): June 30, December 31, 2019 2018 United States $ 1,290 $ 1,673 International 295 302 $ 1,585 $ 1,975 |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2019 | |
Risks And Uncertainties [Abstract] | |
Concentrations | NOTE 13—CONCENTRATIONS Revenue from the Company’s products for the three and six months ended June 30, 2019 and 2018 are as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Laser systems $ 4,917 56.9 % $ 7,920 65.2 % $ 10,880 57.4 % $ 13,623 61.4 % Imaging systems 63 0.7 % 371 3.1 % 615 3.2 % 954 4.3 % Consumables and other 2,084 24.1 % 2,303 18.9 % 4,196 22.1 % 4,337 19.6 % Services 1,578 18.3 % 1,557 12.8 % 3,273 17.3 % 3,254 14.7 % License fees and royalties 3 — % 3 — % 7 — % 6 — % Net revenue $ 8,645 100.0 % $ 12,154 100.0 % $ 18,971 100.0 % $ 22,174 100.0 % No individual customer represented more than 10% of the Company’s total net revenue for the three and six months ended June 30, 2019 or 2018. The Company maintains its cash and cash equivalent accounts with established commercial banks. Such cash deposits periodically exceed the Federal Deposit Insurance Corporation insured limit. One individual customer represented more than 10% of the Company’s accounts receivable at June 30, 2019 and December 31, 2018. The Company currently purchases certain key components of its products from single suppliers. Although there are a limited number of manufacturers of these key components, management believes that other suppliers could provide similar key components on comparable terms. A change in suppliers, however, could cause delays in manufacturing and a possible loss of sales, which could adversely affect the Company’s business, results of operations and financial condition. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 14—INCOME TAXES The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Management evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences, the period in which they are expected to be recovered, and expected levels of taxable income. A valuation allowance to reduce deferred tax assets is established when it is “more likely than not” that some or all of the deferred tax assets will not be realized. Based on the Company’s net losses in prior years, management has determined that a full valuation allowance against the Company’s net deferred tax assets is appropriate. Accounting for uncertainty in income taxes 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 and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has elected to classify interest and penalties as a component of its income tax provision. With respect to the liability for unrecognized tax benefits, including related estimates of penalties and interest, the Company did not record a liability for unrecognized tax benefits for the three and six months ended June 30, 2019 and 2018. The Company does not expect any changes to its unrecognized tax benefit for the next 12 months that would materially impact its consolidated financial statements. During the three and six months ended June 30, 2019, the Company recorded an income tax provision of $28,000 and $42,000, respectively, resulting in an effective tax rate of 0.5% and 0.3%, respectively. During the three and six months ended June 30, 2018, the Company recorded an income tax provision of $10,000 and $42,000, respectively, resulting in an effective tax rate of (10.0)% and 0.8%, respectively. The income tax provisions for the three and six months ended June 30, 2019 2018 were calculated using the discrete year-to-date method. The effective tax rate differs from the statutory tax rate of 21% primarily due to the existence of valuation allowances against net deferred tax assets and current liabilities resulting from the estimated state income tax liabilities and foreign tax liability. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements include the accounts of BIOLASE and its wholly-owned subsidiaries and have been prepared on a basis consistent with the December 31, 2018 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments and the elimination of all material intercompany transactions and balances, necessary to fairly present the information set forth therein. These unaudited, interim, consolidated financial statements do not include all the footnotes, presentations, and disclosures normally required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements. The consolidated results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results for the full year. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2018, included in BIOLASE’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission (the “SEC”) on March 8, 2019 (the “2018 Form 10-K”). |
Liquidity and Management's Plans | Liquidity and Management’s Plans The Company incurred a loss from operations and a net loss, and used cash in operating activities for the three and six months ended June 30, 2019. The Company’s recurring losses, level of cash used in operations, and potential need for additional capital, along with uncertainties surrounding the Company’s ability to raise additional capital, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. As of March 31, 2019, the Company was not in compliance with certain of its loan covenants relating to the SWK Loan (as defined below). In May 2019, SWK Funding, LLC granted the Company a waiver of such covenants. On May 7, 2019, the Company entered into an amendment of its Credit Agreement with SWK Funding, LLC to increase the total loan commitment in the SWK Loan from $12.5 million to $15.0 million, to revise certain of the financial covenants and to issue additional warrants to purchase the Company’s common stock. See Note 9 for additional information. As of June 30, 2019, the Company had working capital of approximately $13.8 million. The Company’s principal sources of liquidity as of June 30, 2019 consisted of approximately $4.0 million in cash, cash equivalents and restricted cash and $9.7 million of accounts receivable. In order for the Company to continue operations beyond the next 12 months and be able to discharge its liabilities and commitments in the normal course of business, it must sell its products directly to end users and through distributors, establish profitable operations through increased sales, decrease expenses, generate cash from operations, or obtain additional funds when needed. The Company intends to improve its financial condition and ultimately improve its financial results by increasing revenues through expansion of its product offerings, continuing to expand and develop its field sales force and distributor relationships both domestically and internationally, forming strategic arrangements within the dental and medical industries, educating dental and medical patients as to the benefits of its advanced medical technologies, and reducing expenses. Additional capital requirements may depend on many factors, including, among other things, continued losses, the rate at which the Company’s business grows, demands for working capital, manufacturing capacity, and any acquisitions that the Company may pursue. From time to time, the Company could be required, or may otherwise attempt, to raise capital, through either equity or debt offerings, or enter into an additional line of credit facility. |
Reverse Stock Split | Reverse Stock Split Except as the context otherwise requires, all share numbers and share price amounts (including exercise prices and closing market prices) contained in the unaudited financial statements and notes thereto reflect the one-for-five reverse stock split (“the Reverse Stock Split”) effectuated by the Company on May 10, 2018. See Note 4 below for additional information. |
Use of Estimates | Use of Estimates The preparation of these unaudited consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect amounts reported in the consolidated financial statements and the accompanying notes. Significant estimates in these unaudited consolidated financial statements include allowances on accounts receivable, inventory, and deferred taxes, as well as estimates for accrued warranty expenses, goodwill and the ability of goodwill to be realized, revenue deferrals, effects of stock-based compensation and warrants, contingent liabilities, and the provision or benefit for income taxes. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ materially from those estimates. |
Critical Accounting Policies | Critical Accounting Policies Information with respect to the Company’s critical accounting policies, which management believes could have the most significant effect on the Company’s reported results and require subjective or complex judgments by management is contained in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of the 2018 Form 10-K. Management believes that there have been no significant changes during the six months ended June 30, 2019 in the Company’s critical accounting policies from those disclosed in Item 7 of the 2018 Form 10-K. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market (or, if none exists, the most advantageous market) for the specific asset or liability at the measurement date (referred to as the “exit price”). The fair value is based on assumptions that market participants would use, including a consideration of non-performance risk. Under the accounting guidance for fair value hierarchy, there are three levels of measurement inputs. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable, either directly or indirectly. Level 3 inputs are unobservable due to little or no corroborating market data. The Company’s financial instruments, consisting of cash, cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities, and the SWK Loan as discussed in Note 9, approximate fair value because of the liquid or short-term nature of these items. |
Concentration of Credit Risk, Interest Rate Risk and Foreign Currency Exchange Rate | Concentration of Credit Risk, Interest Rate Risk and Foreign Currency Exchange Rate Financial instruments which potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents, restricted cash, and trade accounts receivable. The Company maintains its cash and cash equivalents and restricted cash with established commercial banks. At times, balances may exceed federally insured limits. To minimize the risk associated with trade accounts receivable, management performs ongoing credit evaluations of customers’ financial condition and maintains relationships with the Company’s customers that allow management to monitor current changes in business operations so the Company can respond as needed. The Company does not, generally, require customers to provide collateral before it sells them its products. However, the Company has required certain distributors to make prepayments for significant purchases of products. Substantially all of the Company’s revenue is denominated in U.S. dollars, including sales to international distributors. Only a small portion of its revenue and expenses is denominated in foreign currencies, principally the Euro and Indian Rupee. The Company’s foreign currency expenditures primarily consist of the cost of maintaining offices, consulting services, and employee-related costs. During the six-month periods ended June 30, 2019 and 2018, the Company did not enter into any hedging contracts. Future fluctuations in the value of the U.S. dollar may affect the price competitiveness of the Company’s products outside the U.S. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (the “FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined not to be applicable or are expected to have minimal impact on the Company’s consolidated financial position and results of operations. Adopted Accounting Pronouncements In February 2016, the FASB established ASU Topic 842 – Leases, by issuing ASU Topic No. 2016-02 (“Topic 842”), which requires lessees to recognize lease on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU Topic 2018-11 – Targeted Improvements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and a lease liability for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The Company adopted Topic 842 in the first quarter of 2019 utilizing the modified retrospective transition method and a cumulative effect adjustment at the beginning of the first quarter of 2019. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date, and (3) initial direct costs for any existing leases as of the adoption date. The Company did not elect to apply the hindsight practical expedient when determining lease term and assessing impairment of the right-to-use assets. The adoption of Topic 842 resulted in the recognition of right-of use assets of approximately $0.8 million after a $0.2 million adjustment for deferred rent, and lease liabilities for operating leases of approximately $1.0 million, and no cumulative effect adjustment on retained earnings on its unaudited Consolidated Balance Sheets nor material impact to its unaudited Consolidated Statements of Operations and Comprehensive Loss in the period of adoption. Right-of-use assets are included in Other assets, and lease liabilities are included in Accrued liabilities or Other liabilities in the unaudited consolidated balance sheet for the period ended June 30, 2019. See Note 10 for additional information. Recently Issued Accounting Standards In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company will be required to use a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The standard will be effective for the Company beginning January 1, 2020, with early adoption permitted beginning January 1, 2019. The Company is currently evaluating the impact of this standard on the Company’s consolidated financial statements, including accounting policies, processes, and systems. |
Income Tax Uncertainties | Accounting for uncertainty in income taxes 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 and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has elected to classify interest and penalties as a component of its income tax provision. With respect to the liability for unrecognized tax benefits, including related estimates of penalties and interest, the Company did not record a liability for unrecognized tax benefits for the three and six months ended June 30, 2019 and 2018. The Company does not expect any changes to its unrecognized tax benefit for the next 12 months that would materially impact its consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Summary of Opening and Closing Balances of Contract Liabilities | The Company performs its obligations under a contract with a customer by transferring products and/or services in exchange for consideration from the customer. The Company typically invoices its customers as soon as control of an asset is transferred and a receivable for the Company is established. The Company, however, recognizes a contract liability when a customer prepays for goods and/or services and the Company has not transferred control of the goods and/or services. The opening and closing balances of the Company’s contract liabilities are as follows (in thousands): June 30, December 31, 2019 2018 Undelivered elements (training, installation, product and support services) $ 563 $ 730 Extended warranty contracts 1,945 1,735 Deferred royalties 5 11 Total deferred revenue 2,513 2,476 Less long-term portion of deferred revenue — — Deferred revenue — current $ 2,513 $ 2,476 |
Summary of Disaggregation of Revenues Related to Geographic Areas | The Company’s revenues related to the following geographic areas were as follows for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 United States $ 5,898 $ 7,164 $ 12,014 $ 12,857 International 2,747 4,990 6,957 9,317 $ 8,645 $ 12,154 $ 18,971 $ 22,174 |
Summary of Revenues Disaggregated by Timing of Goods and Services Transferred | Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenue recognized over time $ 1,646 $ 1,557 $ 3,415 $ 3,254 Revenue recognized at a point in time 6,999 10,597 15,556 18,920 Total $ 8,645 $ 12,154 $ 18,971 $ 22,174 |
Summary of Sales by End Market | The Company’s sales by end market were as follows for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 End-customer $ 5,553 $ 7,675 $ 11,254 $ 13,712 Distributors 3,092 4,479 7,717 8,462 $ 8,645 $ 12,154 $ 18,971 $ 22,174 |
Summary of Percentages of Sales by Product line | The percentages of the Company’s sales by product line were as follows for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Laser systems 56.9 % 65.2 % 57.4 % 61.4 % Imaging systems 0.7 % 3.1 % 3.2 % 4.3 % Consumables and other 24.2 % 18.9 % 22.2 % 19.6 % Services 18.2 % 12.8 % 17.2 % 14.7 % License fees and royalties — % — % — % — % 100.0 % 100.0 % 100.0 % 100.0 % Revenue from the Company’s products for the three and six months ended June 30, 2019 and 2018 are as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Laser systems $ 4,917 56.9 % $ 7,920 65.2 % $ 10,880 57.4 % $ 13,623 61.4 % Imaging systems 63 0.7 % 371 3.1 % 615 3.2 % 954 4.3 % Consumables and other 2,084 24.1 % 2,303 18.9 % 4,196 22.1 % 4,337 19.6 % Services 1,578 18.3 % 1,557 12.8 % 3,273 17.3 % 3,254 14.7 % License fees and royalties 3 — % 3 — % 7 — % 6 — % Net revenue $ 8,645 100.0 % $ 12,154 100.0 % $ 18,971 100.0 % $ 22,174 100.0 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Summary of Income Statement Classification of Compensation Expense | The following table summarizes the income statement classification of compensation expense associated with share-based payments (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Cost of revenue $ 54 $ 105 $ 136 $ 162 Sales and marketing 78 154 238 234 General and administrative 283 207 724 674 Engineering and development 32 91 106 188 $ 447 $ 557 $ 1,204 $ 1,258 |
Assumptions on Estimation of Stock Option Fair Values | The stock option fair values were estimated using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Expected term 6.1 years 5.7 years 6.1 years 5.9 years Volatility 85.0 % 81.2 % 85.8 % 81.4 % Annual dividend per share $ — $ — $ — $ — Risk-free interest rate 2.50 % 2.71 % 2.60 % 2.46 % |
Summary of Option Activity | A summary of option activity for the six months ended June 30, 2019 is as follows (in thousands, except per share data): Weighted Average Weighted Remaining Average Contractual Aggregate Shares Exercise Price Term (Years) Intrinsic Value(1) Options outstanding, December 31, 2018 1,623 $ 6.54 $ — Granted at fair market value 70 $ 2.08 Exercised (2 ) $ 2.10 Forfeited, cancelled, or expired (159 ) $ 5.77 Options outstanding at June 30, 2019 1,532 $ 6.42 5.46 $ 16,200 Options exercisable at June 30, 2019 1,165 $ 7.56 4.61 $ — Vested options expired during the quarter ended June 30, 2019 14 $ 13.25 (1) The intrinsic value calculation does not include negative values. This can occur when the fair market value on the reporting date is less than the exercise price of the grant. |
Summary of Unvested Stock Option Activity | A summary of unvested stock option activity for the six months ended June 30, 2019 is as follows (in thousands, except per share data): Weighted Average Grant Shares Date Fair Value Unvested options at December 31, 2018 522 $ 2.11 Granted 70 $ 1.53 Vested (147 ) $ 2.94 Forfeited or cancelled (78 ) $ 2.62 Unvested options at June 30, 2019 367 $ 1.56 |
Cash Proceeds, Along With Fair Value Disclosures Related to Grants, Exercises and Vesting Options | Cash proceeds, along with fair value disclosures related to grants, exercises and vested options are as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Proceeds from stock options exercised $ — $ — $ 3 $ 2 Tax benefit related to stock options exercised (1) N/A N/A N/A N/A Intrinsic value of stock options exercised (2) $ — $ — $ — $ — Weighted-average fair value of options granted during period $ 1.53 $ 1.27 $ 1.53 $ 1.46 Total fair value of shares vested during the period $ 90 $ 843 $ 431 $ 245 (1) Excess tax benefits received related to stock option exercises are presented as operating cash inflows. The Company currently does not receive a tax benefit related to the exercise of stock options due to the Company’s net operating losses. (2) The intrinsic value of stock options exercised is the amount by which the market price of the stock on the date of exercise exceeded the market price of the stock on the date of grant. |
Summary of Unvested Restricted Stock Units | A summary of unvested RSU activity for the six months ended June 30, 2019 is as follows (in thousands, except per share amounts): Weighted Average Grant Shares Date Fair Value Unvested RSUs at December 31, 2018 2,163 $ 1.84 Granted 97 $ 2.08 Vested (794 ) $ 1.74 Forfeited or cancelled (213 ) $ 2.37 Unvested RSUs at June 30, 2019 1,253 $ 1.87 |
Summary of Warrant Activity | The Company issues warrants to acquire shares of the Company’s common stock as approved by the Board. A summary of warrant activity for the six months ended June 30, 2019 is as follows (in thousands, except exercise price amounts): Weighted Average Shares Exercise Price Warrants outstanding, December 31, 2018 1,934 $ 6.62 Granted or Issued 149 $ 2.22 Exercised — $ — Forfeited, cancelled, or expired — $ — Warrants outstanding at June 30, 2019 2,083 $ 6.30 Warrants exercisable at June 30, 2019 2,083 $ 6.30 Vested warrants expired during the quarter ended June 30, 2019 — $ — |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventory is valued at the lower of cost or net realizable value and is comprised of the following (in thousands): June 30, December 31, 2019 2018 Raw materials $ 3,909 $ 3,590 Work-in-process 1,342 1,435 Finished goods 7,083 7,223 Inventory $ 12,334 $ 12,248 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant, and Equipment | Property, plant, and equipment, net is comprised of the following (in thousands): June 30, December 31, 2019 2018 Building $ 211 $ 213 Leasehold improvements 2,004 2,004 Equipment and computers 7,423 7,277 Furniture and fixtures 634 634 Construction in progress 20 25 10,292 10,153 Accumulated depreciation and amortization (8,872 ) (8,344 ) 1,420 1,809 Land 165 166 Property, plant, and equipment, net $ 1,585 $ 1,975 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Payables And Accruals [Abstract] | |
Components of Accrued Liabilities | Accrued liabilities are comprised of the following (in thousands): June 30, December 31, 2019 2018 Payroll and benefits $ 1,660 $ 2,400 Patent litigation settlement — 1,500 Warranty accrual, current portion 764 861 Lease liability 565 — Accrued professional services 1,060 1,044 Taxes 412 714 Accrued insurance premium 44 328 Customer deposits 19 21 Other 375 670 Total accrued liabilities $ 4,899 $ 7,538 |
Changes in Initial Product Warranty Accrual and Expenses Under Initial and Extended Warranties | Changes in the initial product warranty accrual and the expenses incurred under the Company’s initial and extended warranties for the three and six months ended June 30, 2019 and 2018 are included within accrued liabilities on the Consolidated Balance Sheets and were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Balance, beginning of period $ 1,384 $ 1,214 $ 1,308 $ 1,190 Provision for estimated warranty cost 383 378 622 624 Warranty expenditures (268 ) (233 ) (431 ) (455 ) Balance, June 30 1,499 1,359 1,499 1,359 Less warranty accrual, long-term 735 221 735 221 Total warranty accrual, current portion $ 764 $ 1,138 $ 764 $ 1,138 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Principal Outstanding and Unamortized Discount | The following table presents the details of the principal outstanding and unamortized discount (in thousands): June 30, December 31, 2019 2018 Term loan $ 15,000 $ 12,500 Discount and debt issuance costs on term loan (1,672 ) (1,664 ) Total long-term debt, net $ 13,328 $ 10,836 |
Summary of Future Minimum Principal and Interest Payments | The future minimum principal and interest payments as of June 30, 2019 are as follows (in thousands): Principal Interest (1) 2019 $ — $ 936 2020 — 1,872 2021 2,100 1,654 2022 2,800 1,304 2023 10,100 955 Total future payments $ 15,000 $ 6,721 (1) estimated using LIBOR rates as at June 30, 2019 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Information related to Right-of-use Assets and Liabilities | Information related to the Company’s right-of-use assets and related liabilities were as follows (in thousands): Six Months Ended June 30, 2019 Cash paid for operating lease liabilities $ 414 Right-of-use assets obtained in exchange for new operating lease obligations 803 Weighted-average remaining lease term 1.6 years Weighted-average discount rate 12.8 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of June 30, 2019 were as follows (in thousands): Due in 12 month period ended June 30, 2020 $ 622 2021 63 Thereafter — $ 685 Less imputed interest (42 ) Total lease liabilities $ 643 Current operating lease liabilities 565 Non-current lease liabilities 78 Total lease liabilities $ 643 |
Future minimum rental commitments under lease agreements with non-cancelable Operating Leases | Future minimum rental commitments under lease agreements, as of June 30, 2019, with non-cancelable terms greater than one year for each of the periods ending June 30, are as follows (in thousands): Period Ended June 30, 2019 2019 $ 622 2020 63 2021 — 2022 and thereafter — Total future minimum lease obligations $ 685 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Net Revenue by Geographic Location | Net revenue by geographic location based on the location of customers was as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 United States $ 5,898 $ 7,164 $ 12,014 $ 12,857 International 2,747 4,990 6,957 9,317 $ 8,645 $ 12,154 $ 18,971 $ 22,174 |
Summary of Property, Plant and Equipment by Geographic Location | Property, plant, and equipment by geographic location was as follows (in thousands): June 30, December 31, 2019 2018 United States $ 1,290 $ 1,673 International 295 302 $ 1,585 $ 1,975 |
Concentrations (Tables)
Concentrations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Risks And Uncertainties [Abstract] | |
Summary of Percentages of Sales by Product line | The percentages of the Company’s sales by product line were as follows for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Laser systems 56.9 % 65.2 % 57.4 % 61.4 % Imaging systems 0.7 % 3.1 % 3.2 % 4.3 % Consumables and other 24.2 % 18.9 % 22.2 % 19.6 % Services 18.2 % 12.8 % 17.2 % 14.7 % License fees and royalties — % — % — % — % 100.0 % 100.0 % 100.0 % 100.0 % Revenue from the Company’s products for the three and six months ended June 30, 2019 and 2018 are as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Laser systems $ 4,917 56.9 % $ 7,920 65.2 % $ 10,880 57.4 % $ 13,623 61.4 % Imaging systems 63 0.7 % 371 3.1 % 615 3.2 % 954 4.3 % Consumables and other 2,084 24.1 % 2,303 18.9 % 4,196 22.1 % 4,337 19.6 % Services 1,578 18.3 % 1,557 12.8 % 3,273 17.3 % 3,254 14.7 % License fees and royalties 3 — % 3 — % 7 — % 6 — % Net revenue $ 8,645 100.0 % $ 12,154 100.0 % $ 18,971 100.0 % $ 22,174 100.0 % |
Description of Business and B_2
Description of Business and Basis of Presentation - Additional Information (Detail) $ in Thousands | May 10, 2018 | Jun. 30, 2019USD ($) | May 07, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Basis Of Presentation [Line Items] | |||||||
Working capital | $ 13,800 | ||||||
Cash and cash equivalents, including restricted cash | 4,032 | $ 8,356 | $ 3,146 | $ 11,896 | |||
Accounts receivable | $ 9,740 | $ 11,112 | |||||
Reverse stock split ratio | 0.2 | ||||||
SWK Loan | |||||||
Basis Of Presentation [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 15,000 | $ 12,500 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Jan. 02, 2019 | Jun. 30, 2019 | Jan. 01, 2019 |
Accounting Policies [Line Items] | |||
Operating lease, right-of-use asset | $ 500,000 | ||
Operating lease liabilities | 643,000 | ||
ASU 2016-02 | |||
Accounting Policies [Line Items] | |||
Operating lease, right-of-use asset | 800,000 | $ 800,000 | |
Operating lease right of use asset after adjustment for deferred rent | 200,000 | ||
Operating lease liabilities | 1,000,000 | $ 1,000,000 | |
Cumulative effect adjustment to retained earnings | $ 0 | $ 0 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |||||
Revenue from products and services transferred to customers, percentage | 81.00% | 87.00% | 82.00% | 85.00% | |
Revenue from services transferred to customers over time, percentage | 19.00% | 13.00% | 18.00% | 15.00% | |
Undelivered elements (product training, installation, product and support services) | $ 563 | $ 563 | $ 730 | ||
Revenue recognized from contract liability | 300 | $ 600 | |||
Extended warranties recognized | $ 400 | $ 700 |
Summary of Opening and Closing
Summary of Opening and Closing Balances of Contract Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Revenue Recognition [Abstract] | ||
Undelivered elements (training, installation, product and support services) | $ 563 | $ 730 |
Extended warranty contracts | 1,945 | 1,735 |
Deferred royalties | 5 | 11 |
Total deferred revenue | 2,513 | 2,476 |
Deferred revenue — current | $ 2,513 | $ 2,476 |
Summary of Disaggregation of Re
Summary of Disaggregation of Revenues Related to Geographic Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | $ 8,645 | $ 12,154 | $ 18,971 | $ 22,174 |
United States | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 5,898 | 7,164 | 12,014 | 12,857 |
International | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | $ 2,747 | $ 4,990 | $ 6,957 | $ 9,317 |
Summary of Revenues Disaggregat
Summary of Revenues Disaggregated by Timing of Goods and Services Transferred (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | $ 8,645 | $ 12,154 | $ 18,971 | $ 22,174 |
Revenue Recognized Over Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 1,646 | 1,557 | 3,415 | 3,254 |
Revenue Recognized at a Point in Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | $ 6,999 | $ 10,597 | $ 15,556 | $ 18,920 |
Summary of Sales by End Market
Summary of Sales by End Market (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | $ 8,645 | $ 12,154 | $ 18,971 | $ 22,174 |
End-customer | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 5,553 | 7,675 | 11,254 | 13,712 |
Distributors | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | $ 3,092 | $ 4,479 | $ 7,717 | $ 8,462 |
Summary of Percentages of Sales
Summary of Percentages of Sales by Product line (Detail) - Product Concentration Risk - Sales Revenue, Net | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Percentage of sales | 100.00% | 100.00% | 100.00% | 100.00% |
Laser systems | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of sales | 56.90% | 65.20% | 57.40% | 61.40% |
Imaging systems | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of sales | 0.70% | 3.10% | 3.20% | 4.30% |
Consumables and Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of sales | 24.20% | 18.90% | 22.20% | 19.60% |
Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of sales | 18.20% | 12.80% | 17.20% | 14.70% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | May 10, 2018 | May 09, 2018 | |
Stockholders Equity [Line Items] | |||||||
Description of reverse stock split | At BIOLASE’s annual meeting of stockholders on May 9, 2018 (the “2018 Annual Meeting”), BIOLASE stockholders approved an amendment to BIOLASE’s Restated Certificate of Incorporation, as amended, to effect the Reverse Stock Split of BIOLASE common stock and on May 10, 2018, the Company filed an amendment (the “Amendment”) to its Restated Certificate of Incorporation, as amended, with the Secretary of State of the State of Delaware to effect the Reverse Stock Split, effective as of 11:59 p.m. on May 10, 2018. The Amendment also reduced the authorized shares of common stock from 200,000,000 shares to 40,000,000 shares. Prior year share and per share amounts have been adjusted to reflect the impact of the Reverse Stock Split. | ||||||
Common stock, shares authorized | 40,000 | 40,000 | 40,000 | 40,000,000 | 200,000,000 | ||
Compensation expense related to stock options | $ 0.5 | $ 0.6 | $ 1.2 | $ 1.3 | |||
Total unrecognized compensation expense | $ 1.6 | $ 1.6 | |||||
Unrecognized share based compensation expense to be recognized over weighted-average period | 2 years | ||||||
Outstanding stock options, RSUs and warrants excluded from diluted loss per share | 5,700,000 | 3,800,000 | 5,700,000 | 3,800,000 | |||
2002 Stock Incentive Plan | |||||||
Stockholders Equity [Line Items] | |||||||
Common stock authorized for issuance | 3,100,000 | 3,100,000 | |||||
Common stock issued pursuant to options exercised | 1,500,000 | ||||||
Options and restricted stock units outstanding | 1,600,000 | 1,600,000 | |||||
Options available for future grants | 0 | 0 | |||||
2018 Long-Term Incentive Plan | |||||||
Stockholders Equity [Line Items] | |||||||
Common stock authorized for issuance | 5,000,000 | 5,000,000 | |||||
Options and restricted stock units outstanding | 1,400,000 | 1,400,000 | |||||
Options available for future grants | 3,600,000 | 3,600,000 |
Classification of Compensation
Classification of Compensation Expense Associated with Share-Based Payments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 447 | $ 557 | $ 1,204 | $ 1,258 |
Cost of Revenue | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 54 | 105 | 136 | 162 |
Sales and Marketing | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 78 | 154 | 238 | 234 |
General and Administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 283 | 207 | 724 | 674 |
Engineering and Development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 32 | $ 91 | $ 106 | $ 188 |
Assumptions Used in Estimating
Assumptions Used in Estimating Fair Value of Stock Options Granted (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | ||||
Expected term | 6 years 1 month 6 days | 5 years 8 months 12 days | 6 years 1 month 6 days | 5 years 10 months 24 days |
Volatility | 85.00% | 81.20% | 85.80% | 81.40% |
Risk-free interest rate | 2.50% | 2.71% | 2.60% | 2.46% |
Summary of Option Activity (Det
Summary of Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)$ / sharesshares | ||
Shares | ||
Beginning Balance | shares | 1,623 | |
Granted at fair market value | shares | 70 | |
Exercised | shares | (2) | |
Forfeited, cancelled, or expired | shares | (159) | |
Ending Balance | shares | 1,532 | |
Options exercisable at June 30, 2019 | shares | 1,165 | |
Vested options expired during the quarter ended June 30, 2019 | shares | 14 | |
Weighted Average Exercise Price | ||
Beginning Balance | $ / shares | $ 6.54 | |
Granted at fair market value | $ / shares | 2.08 | |
Exercised | $ / shares | 2.10 | |
Forfeited, cancelled, or expired | $ / shares | 5.77 | |
Ending Balance | $ / shares | 6.42 | |
Options exercisable at June 30, 2019 | $ / shares | 7.56 | |
Vested options expired during the quarter ended June 30, 2019 | $ / shares | $ 13.25 | |
Weighted Average Remaining Contractual Term (Years) | ||
Options outstanding | 5 years 5 months 15 days | |
Options exercisable | 4 years 7 months 9 days | |
Aggregate Intrinsic Value | ||
Options outstanding | $ | $ 16,200 | [1] |
[1] | The intrinsic value calculation does not include negative values. This can occur when the fair market value on the reporting date is less than the exercise price of the grant. |
Summary of Unvested Stock Optio
Summary of Unvested Stock Option Activity (Detail) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Weighted Average Grant Date Fair Value | ||||
Granted | $ 1.53 | $ 1.27 | $ 1.53 | $ 1.46 |
Stock Options | ||||
Shares | ||||
Beginning Balance | 522 | |||
Granted | 70 | |||
Vested | (147) | |||
Forfeited or cancelled | (78) | |||
Ending Balance | 367 | 367 | ||
Weighted Average Grant Date Fair Value | ||||
Beginning Balance | $ 2.11 | |||
Granted | 1.53 | |||
Vested | 2.94 | |||
Forfeited or cancelled | 2.62 | |||
Ending Balance | $ 1.56 | $ 1.56 |
Cash Proceeds Along with Fair V
Cash Proceeds Along with Fair Value Disclosures Related to Grants, Exercises and Vested Options (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Proceeds from stock options exercised | $ 3 | $ 2 | ||
Weighted-average fair value of options granted during period | $ 1.53 | $ 1.27 | $ 1.53 | $ 1.46 |
Total fair value of shares vested during the period | $ 90 | $ 843 | $ 431 | $ 245 |
Summary of Unvested Restricted
Summary of Unvested Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) shares in Thousands | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Shares | |
Beginning Balance | shares | 2,163 |
Granted | shares | 97 |
Vested | shares | (794) |
Forfeited or cancelled | shares | (213) |
Ending Balance | shares | 1,253 |
Weighted Average Grant Date Fair Value | |
Unvested RSUs at December 31, 2018 | $ / shares | $ 1.84 |
Granted | $ / shares | 2.08 |
Vested | $ / shares | 1.74 |
Forfeited or cancelled | $ / shares | 2.37 |
Unvested RSUs at June 30, 2019 | $ / shares | $ 1.87 |
Summary of Warrant Activity (De
Summary of Warrant Activity (Detail) - Warrants shares in Thousands | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Shares | |
Beginning Balance | shares | 1,934 |
Granted or Issued | shares | 149 |
Ending Balance | shares | 2,083 |
Warrants exercisable at June 30, 2019 | shares | 2,083 |
Weighted Average Exercise Price | |
Beginning Balance | $ / shares | $ 6.62 |
Granted or Issued | $ / shares | 2.22 |
Ending Balance | $ / shares | 6.30 |
Warrants exercisable at June 30, 2019 | $ / shares | $ 6.30 |
Components of Inventory (Detail
Components of Inventory (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Components of inventory, net of allowances | ||
Raw materials | $ 3,909 | $ 3,590 |
Work-in-process | 1,342 | 1,435 |
Finished goods | 7,083 | 7,223 |
Inventory | $ 12,334 | $ 12,248 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Inventory includes write-downs for excess and obsolete inventory | $ 1.1 | $ 1.1 |
Summary of Property, Plant, and
Summary of Property, Plant, and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property, plant, and equipment gross, excluding land | $ 10,292 | $ 10,153 |
Accumulated depreciation and amortization | (8,872) | (8,344) |
Property, plant, and equipment net, excluding land | 1,420 | 1,809 |
Land | 165 | 166 |
Property, plant, and equipment, net | 1,585 | 1,975 |
Building | ||
Property Plant And Equipment [Line Items] | ||
Property, plant, and equipment gross, excluding land | 211 | 213 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, plant, and equipment gross, excluding land | 2,004 | 2,004 |
Equipment and Computers | ||
Property Plant And Equipment [Line Items] | ||
Property, plant, and equipment gross, excluding land | 7,423 | 7,277 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property, plant, and equipment gross, excluding land | 634 | 634 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property, plant, and equipment gross, excluding land | $ 20 | $ 25 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation and amortization expenses | $ 0.3 | $ 0.2 | $ 0.5 | $ 0.5 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Intangible assets and goodwill impairment | $ 0 | ||||
Goodwill | $ 2,926,000 | 2,926,000 | $ 2,926,000 | ||
Amortization expense | $ 0 | $ 0 | $ 0 | $ 0 |
Components of Accrued Liabiliti
Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Payables And Accruals [Abstract] | |||
Payroll and benefits | $ 1,660 | $ 2,400 | |
Patent litigation settlement | 1,500 | ||
Warranty accrual, current portion | 764 | 861 | $ 1,138 |
Lease liability | 565 | ||
Accrued professional services | 1,060 | 1,044 | |
Taxes | 412 | 714 | |
Accrued insurance premium | 44 | 328 | |
Customer deposits | 19 | 21 | |
Other | 375 | 670 | |
Total accrued liabilities | $ 4,899 | $ 7,538 |
Changes in Initial Product Warr
Changes in Initial Product Warranty Accrual and Expenses Under Initial and Extended Warranties (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Movement in Standard Product Warranty Accrual | |||||
Balance, beginning of period | $ 1,384 | $ 1,214 | $ 1,308 | $ 1,190 | |
Provision for estimated warranty cost | 383 | 378 | 622 | 624 | |
Warranty expenditures | (268) | (233) | (431) | (455) | |
Balance, June 30 | 1,499 | 1,359 | 1,499 | 1,359 | |
Less warranty accrual, long-term | 735 | 221 | 735 | 221 | $ 447 |
Total warranty accrual, current portion | $ 764 | $ 1,138 | $ 764 | $ 1,138 | $ 861 |
Accrued Liabilities - Additiona
Accrued Liabilities - Additional Information (Detail) - Maximum | 6 Months Ended |
Jun. 30, 2019 | |
Diode Systems | |
Accrued Liabilities [Line Items] | |
Product warrant period | 28 months |
United States | Waterlase Laser Systems | |
Accrued Liabilities [Line Items] | |
Product warrant period | 16 months |
International | Waterlase Laser Systems | |
Accrued Liabilities [Line Items] | |
Product warrant period | 28 months |
Debt - Summary of Principal Out
Debt - Summary of Principal Outstanding and Unamortized Discount (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Term loan | $ 15,000 | $ 12,500 |
Discount and debt issuance costs on term loan | (1,672) | (1,664) |
Total long-term debt, net | $ 13,328 | $ 10,836 |
Debt - Additional Information (
Debt - Additional Information (Detail) | May 07, 2019USD ($)Day$ / sharesshares | Nov. 09, 2018USD ($)Day$ / sharesshares | Sep. 27, 2018USD ($)$ / sharesshares | Mar. 06, 2018USD ($)$ / shares | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2019USD ($) | Oct. 22, 2018USD ($) | Aug. 13, 2018USD ($) |
Debt Instrument [Line Items] | |||||||||
Borrowings under lines of credit | $ 1,823,000 | ||||||||
Repayments of lines of credit | 1,823,000 | ||||||||
Debt issuance costs | $ 38,000 | $ 87,000 | |||||||
SWK Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | $ 12,500,000 | |||||||
Line of credit facility term | 5 years | ||||||||
Borrowings under lines of credit | $ 12,500,000 | ||||||||
Debt instrument, repayment of interest-only on loan period | 2 years | ||||||||
Debt instrument, principal repayments beginning term | 2021 | ||||||||
Repayments of lines of credit | $ 700,000 | ||||||||
Debt instrument, maturity term | 2023 | ||||||||
Debt instrument covenant description | (i) maintain unencumbered liquid assets of no less than $1.5 million or the sum of aggregate cash flow from operations less capital expenditures, ii) achieve certain revenue and EBITDA levels during the first two years of the loan, (iii) limit future borrowing, investments and dividends, and (iv) submit monthly and quarterly financial reporting. | ||||||||
Debt issuance costs | $ 1,000,000 | ||||||||
Loan origination fee | 200,000 | ||||||||
Finder's fee | 400,000 | ||||||||
Legal and other fees | $ 400,000 | ||||||||
Interest expense | $ 500,000 | ||||||||
Weighted-average interest rate | 12.70% | ||||||||
SWK Loan | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility bearing floating interest rate per annum | 10.00% | ||||||||
Line of credit facility interest rate description | London Interbank Bank Offered Rate (“LIBOR”) plus 10% or another index that approximates LIBOR as close as possible if and when LIBOR no longer exists. | ||||||||
Western Alliance Warrant | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrants issued to purchase shares of common stock | shares | 56,338 | ||||||||
Warrants expire date | Sep. 27, 2028 | ||||||||
Initial exercise price of warrants | $ / shares | $ 2.13 | ||||||||
SWK Warrants | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrants expiration period | 8 years | 8 years | |||||||
Warrants fair value assumptions, expected volatility rate | 80.73% | 81.79% | |||||||
Warrants fair value assumptions annual dividend per share | $ / shares | $ 0 | $ 0 | |||||||
Warrants fair value assumptions, risk-free interest rate | 2.37% | 3.13% | |||||||
Warrants, estimated fair value | $ 200,000 | $ 400,000 | |||||||
Warrants issued to purchase shares of common stock | shares | 115,175 | 372,023 | |||||||
Initial exercise price of warrants | $ / shares | $ 2.17 | $ 1.34 | |||||||
Warrants expiration period | 7 years | 7 years | |||||||
Number of trading days of average closing price of common stock | Day | 10 | 10 | |||||||
DPG Warrants | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrants expiration period | 8 years | 8 years | |||||||
Warrants fair value assumptions, expected volatility rate | 80.73% | 81.79% | |||||||
Warrants fair value assumptions annual dividend per share | $ / shares | $ 0 | $ 0 | |||||||
Warrants fair value assumptions, risk-free interest rate | 2.37% | 3.13% | |||||||
Warrants, estimated fair value | $ 100,000 | $ 300,000 | |||||||
Warrants issued to purchase shares of common stock | shares | 34,552 | 279,851 | |||||||
Initial exercise price of warrants | $ / shares | $ 2.17 | $ 1.34 | |||||||
Finder's fee | $ 500,000 | ||||||||
Warrants expiration period | 7 years | 7 years | |||||||
Number of trading days of average closing price of common stock | Day | 10 | 10 | |||||||
SWK Warrants and DPG Warrants | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrants effective-interest method amortization period | 5 years | ||||||||
Maximum | SWK Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument covenants unencumbered liquid assets | $ 1,500,000 | ||||||||
Business Financing Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 6,000,000 | ||||||||
Line of credit facility expiration date | Mar. 6, 2020 | ||||||||
Line of credit facility, interest rate description | Amounts outstanding under the Business Financing Agreement bore interest at a per annum floating rate equal to the greater of 4.5% or the “Prime Rate” published in the Money Rates section of the Western Edition of The Wall Street Journal (or such other rate of interest publicly announced from time to time by Western Alliance as its “Prime Rate”), plus 1.5% with respect to advances made under the line of credit, plus an additional 5.0% during any period that an event of default occurred and was continuing. | ||||||||
Line of credit facility, commitment fee amount | $ 67,500 | ||||||||
Line of credit facility, commitment fee description | the Company paid the first of two annual commitment fees totaling $67,500, being 0.25% of the aggregate $6.0 million commitment for the Domestic Revolver and 1.75% of the aggregate $3.0 million commitment for the EXIM Revolver. The commitment fees and the legal costs associated with acquiring the credit facilities were capitalized and were amortized on a straight-line basis as interest expense over the term of the Business Financing Agreement | ||||||||
Business Financing Agreement | Western Alliance | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility minimum unrestricted cash covenant | $ 300,000 | ||||||||
Interest expense including debt issuance costs | 100,000 | ||||||||
Repayments of lines of credit | $ 900,000 | ||||||||
Business Financing Agreement | Western Alliance Warrant | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrants expiration period | 10 years | ||||||||
Warrants fair value assumptions, expected volatility rate | 91.49% | ||||||||
Warrants fair value assumptions annual dividend per share | $ / shares | $ 0 | ||||||||
Warrants fair value assumptions, risk-free interest rate | 2.88% | ||||||||
Warrants, estimated fair value | $ 100,000 | ||||||||
Business Financing Agreement | Domestic Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 6,000,000 | ||||||||
Maximum borrowing base percentage of eligible accounts receivable | 75.00% | ||||||||
Line of credit facility commitment fee percentage | 0.25% | ||||||||
Line of credit facility, commitment fee amount | $ 6,000,000 | ||||||||
Business Financing Agreement | Export Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 3,000,000 | ||||||||
Maximum borrowing base percentage of eligible accounts receivable | 85.00% | ||||||||
Line of credit facility commitment fee percentage | 1.75% | ||||||||
Line of credit facility, commitment fee amount | $ 3,000,000 | ||||||||
Business Financing Agreement | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest Rate with respect to advances made | 1.50% | ||||||||
Line of credit facility interest rate during period in event of default | 5.00% | ||||||||
Business Financing Agreement | Line of Credit | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility bearing floating interest rate per annum | 4.50% | ||||||||
Business Financing Modification Agreement | Western Alliance | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 2,500,000 | ||||||||
Line of credit facility expiration date | Mar. 6, 2019 | ||||||||
Line of credit facility default covenant advance | $ 1,500,000 | ||||||||
Line of credit, outstanding borrowings | $ 1,500,000 | ||||||||
Credit Agreement, First Amendment [Member] | SWK Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | ||||||||
Debt instrument covenant description | (a) adjust minimum revenue and EBITDA levels, (b) require the Company to have a shelf registration statement declared effective by the Securities and Exchange Commission before September 30, 2019, with a proposed maximum aggregate offering price of at least $10.0 million if the Company does not reach set minimum revenue levels for the three-month period ended June 30, 2019, and (c) require minimum liquidity of $1.5 million at all times. The First Amendment provides that if aggregate minimum revenue and EBITDA levels are not achieved by September 30, 2019, the minimum liquidity requirement will be increased to $3.0 million, until the Company has obtained additional equity or debt funding of no less than $5.0 million. | ||||||||
Minimum level of liquidity financial covenant | 1,500,000 | ||||||||
Additional equity or debt funding requirement until minimum liquidity is met | 5,000,000 | ||||||||
Maximum aggregate offering price | 10,000,000 | ||||||||
Increase in minimum liquidity requirement if aggregate minimum revenue and EBITDA levels are not achieved | 3,000,000 | ||||||||
Loan origination and other fees to be paid | 100,000 | ||||||||
Credit Agreement, First Amendment [Member] | SWK Warrants | |||||||||
Debt Instrument [Line Items] | |||||||||
Additional warrants to purchase common stock value | 200,000 | ||||||||
Credit Agreement, First Amendment [Member] | DPG Warrants | |||||||||
Debt Instrument [Line Items] | |||||||||
Additional warrants to purchase common stock value | 100,000 | ||||||||
Additional finders fee | $ 100,000 |
Debt - Summary of Future Minimu
Debt - Summary of Future Minimum Principal and Interest Payments (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
2021 | $ 2,100 | ||
2022 | 2,800 | ||
2023 | 10,100 | ||
Total future payments | 15,000 | $ 12,500 | |
2019 | [1] | 936 | |
2020 | [1] | 1,872 | |
2021 | [1] | 1,654 | |
2022 | [1] | 1,304 | |
2023 | [1] | 955 | |
Total future payments | [1] | $ 6,721 | |
[1] | estimated using LIBOR rates as at June 30, 2019 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | Jan. 02, 2019 | Jun. 30, 2019 | Jan. 01, 2019 |
Lessee Lease Description [Line Items] | |||
Operating lease, options to renew term | 1 year | ||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||
Operating lease, right-of-use asset | $ 500,000 | ||
Operating lease, liability | $ 643,000 | ||
Lessee, operating lease incremental borrowing rate | 12.78% | ||
Operating lease, lease not yet commenced, description | The Company did not enter into any new lease arrangements nor did it have any arrangements that had not commenced. | ||
ASU 2016-02 | |||
Lessee Lease Description [Line Items] | |||
Operating lease, right-of-use asset | $ 800,000 | $ 800,000 | |
Operating Lease Right Of Use Asset Statement Of Financial Position Extensible List | us-gaap:OtherAssetsNoncurrent | ||
Adjustment for deferred rent | $ 200,000 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | ||
Operating lease, liability | 1,000,000 | $ 1,000,000 | |
Cumulative-effect adjustment to retained earnings | $ 0 | $ 0 | |
Minimum | |||
Lessee Lease Description [Line Items] | |||
Lease term | 1 year | ||
Maximum | |||
Lessee Lease Description [Line Items] | |||
Lease term | 5 years | ||
Lease initial term of contract | 1 year |
Leases - Information related to
Leases - Information related to Right-of-use Assets and Liabilities (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for operating lease liabilities | $ 414 |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 803 |
Weighted-average remaining lease term | 1 year 7 months 6 days |
Weighted-average discount rate | 12.80% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 622 |
2021 | 63 |
Total lease payments | 685 |
Less imputed interest | (42) |
Total lease liabilities | 643 |
Current operating lease liabilities | 565 |
Non-current lease liabilities | $ 78 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Commitments Under Lease Agreements (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 622 |
2020 | 63 |
Total future minimum lease obligations | $ 685 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Jan. 25, 2019 | Jan. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Commitment And Contingencies [Line Items] | |||||
Contingent loss on patent litigation settlement | $ 190,000 | ||||
Accrued liability | 4,899,000 | $ 4,899,000 | $ 7,538,000 | ||
Settlement Agreement | Patent Litigation | |||||
Commitment And Contingencies [Line Items] | |||||
Settlement agreement date | January 25, 2019 | ||||
Number of days litigation settlement to be paid in cash | 5 days | ||||
Litigation settlement in cash | $ 500,000 | ||||
Number of days litigation settlement shares to be issued | 30 days | ||||
Litigation settlement share issued | 500,000 | ||||
Number of days litigation settlement to be paid in value of stock consideration | 30 days | ||||
Settlement agreement, terms | The Company has agreed (i) to pay to CAO, within five days of the Effective Date, $500,000 in cash, (ii) to issue to CAO, within 30 days of the Effective Date, 500,000 restricted shares of common stock of the Company (the “Stock Consideration”), and (iii) to pay to CAO, within 30 days of December 31, 2021, an amount in cash equal to the difference (if positive) between $1,000,000 and the value of the Stock Consideration on December 31, 2021. | ||||
Litigation settlement amount in cash equal to difference between value of stock consideration | $ 1,000,000 | ||||
Contingent loss on patent litigation settlement | $ 1,500,000 | ||||
Payment for litigation settlement in cash | $ 500,000 | 200,000 | $ 0 | ||
Accrued liability | $ 1,000,000 | $ 1,000,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Sales Revenue, Net - Customer | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Customer Concentration Risk | United States | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of sales | 68.00% | 63.00% | ||
Customer Concentration Risk | International | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of sales | 32.00% | 37.00% | ||
Geographic Concentration Risk | International | ||||
Segment Reporting Information [Line Items] | ||||
Number of customers which represented more than 10% of the Company's revenue | 0 | 0 | 0 | 0 |
Summary of Net Revenue by Geogr
Summary of Net Revenue by Geographic Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 8,645 | $ 12,154 | $ 18,971 | $ 22,174 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 5,898 | 7,164 | 12,014 | 12,857 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 2,747 | $ 4,990 | $ 6,957 | $ 9,317 |
Summary of Property, Plant and
Summary of Property, Plant and Equipment by Geographic Location (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Property, plant, and equipment, net | $ 1,585 | $ 1,975 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, plant, and equipment, net | 1,290 | 1,673 |
International | ||
Segment Reporting Information [Line Items] | ||
Property, plant, and equipment, net | $ 295 | $ 302 |
Concentrations - Summary of Net
Concentrations - Summary of Net Revenue from Various Products (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Concentration Risk [Line Items] | ||||
Net revenue | $ 8,645 | $ 12,154 | $ 18,971 | $ 22,174 |
Product Concentration Risk | Sales Revenue, Net | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 100.00% | 100.00% | 100.00% | 100.00% |
Laser systems | ||||
Concentration Risk [Line Items] | ||||
Net revenue | $ 4,917 | $ 7,920 | $ 10,880 | $ 13,623 |
Laser systems | Product Concentration Risk | Sales Revenue, Net | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 56.90% | 65.20% | 57.40% | 61.40% |
Imaging systems | ||||
Concentration Risk [Line Items] | ||||
Net revenue | $ 63 | $ 371 | $ 615 | $ 954 |
Imaging systems | Product Concentration Risk | Sales Revenue, Net | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 0.70% | 3.10% | 3.20% | 4.30% |
Consumables and other | ||||
Concentration Risk [Line Items] | ||||
Net revenue | $ 2,084 | $ 2,303 | $ 4,196 | $ 4,337 |
Consumables and other | Product Concentration Risk | Sales Revenue, Net | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 24.10% | 18.90% | 22.10% | 19.60% |
Services | ||||
Concentration Risk [Line Items] | ||||
Net revenue | $ 1,578 | $ 1,557 | $ 3,273 | $ 3,254 |
Services | Product Concentration Risk | Sales Revenue, Net | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 18.30% | 12.80% | 17.30% | 14.70% |
License fees and royalties | ||||
Concentration Risk [Line Items] | ||||
Net revenue | $ 3 | $ 3 | $ 7 | $ 6 |
Concentrations - Additional Inf
Concentrations - Additional Information (Detail) - Product Concentration Risk - Customer | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||||
Number of customers which represented more than 10% of the Company's accounts receivable | 1 | 1 | |||
Sales Revenue, Net | |||||
Concentration Risk [Line Items] | |||||
Number of customers which represented more than 10% of the Company's revenue | 0 | 0 | 0 | 0 | |
Concentration Risk Percentage | 100.00% | 100.00% | 100.00% | 100.00% | |
Account Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk Percentage | 10.00% | 10.00% | |||
Minimum | Sales Revenue, Net | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk Percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Liability for unrecognized tax benefit, including related estimates of penalties and interest | $ 0 | $ 0 | $ 0 | $ 0 |
Income tax provision (benefit) | $ 28,000 | $ 10,000 | $ 42,000 | $ 42,000 |
Projected annual effective tax rate | 0.50% | (10.00%) | 0.30% | 0.80% |
Statutory tax rate | 21.00% |