Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2023 | Jul. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SRDX | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | Surmodics, Inc. | |
Entity Central Index Key | 0000924717 | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock, $0.05 par value | |
Entity File Number | 0-23837 | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-1356149 | |
Entity Address, Address Line One | 9924 West 74th Street | |
Entity Address, City or Town | Eden Prairie | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55344 | |
City Area Code | 952 | |
Local Phone Number | 500-7000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 14,134,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 44,579 | $ 18,998 |
Accounts receivable, net of allowances of $206 and $81 as of June 30, 2023 and September 30, 2022, respectively | 11,752 | 10,452 |
Contract assets — royalties and license fees | 7,678 | 7,116 |
Inventories, net | 14,610 | 11,819 |
Income tax receivable | 2,438 | |
Prepaids and other | 7,231 | 6,764 |
Total Current Assets | 85,850 | 57,587 |
Property and equipment, net | 26,571 | 27,148 |
Intangible assets, net | 27,798 | 28,145 |
Goodwill | 43,844 | 40,710 |
Other assets | 4,838 | 4,769 |
Total Assets | 188,901 | 158,359 |
Current Liabilities: | ||
Accounts payable | 2,484 | 3,136 |
Accrued liabilities: | ||
Compensation | 7,830 | 8,929 |
Accrued other | 5,453 | 5,854 |
Short-term borrowings | 10,000 | |
Deferred revenue | 4,328 | 4,160 |
Income tax payable | 11,953 | |
Total Current Liabilities | 32,048 | 32,079 |
Long-term debt, net | 29,353 | |
Deferred revenue, less current portion | 3,492 | 5,088 |
Deferred income taxes | 2,057 | 2,027 |
Other long-term liabilities | 9,539 | 10,773 |
Total Liabilities | 76,489 | 49,967 |
Commitments and Contingencies (Note 11) | ||
Stockholders’ Equity: | ||
Series A Preferred stock - $.05 par value, 450 shares authorized; no shares issued and outstanding | ||
Common stock --$.05 par value, 45,000 shares authorized: 14,134 and 14,029 shares issued and outstanding as of June 30, 2023 and September 30, 2022, respectively | 707 | 701 |
Additional paid-in capital | 34,345 | 28,774 |
Accumulated other comprehensive loss | (3,201) | (9,874) |
Retained earnings | 80,561 | 88,791 |
Total Stockholders’ Equity | 112,412 | 108,392 |
Total Liabilities and Stockholders’ Equity | $ 188,901 | $ 158,359 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Statement Of Financial Position [Abstract] | ||
Allowances (accounts receivable) | $ 206 | $ 81 |
Series A preferred stock, par value | $ 0.05 | $ 0.05 |
Series A preferred stock, shares authorized | 450,000 | 450,000 |
Series A preferred stock, shares issued | 0 | 0 |
Series A preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.05 | $ 0.05 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 14,134,000 | 14,029,000 |
Common stock, shares outstanding | 14,134,000 | 14,029,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue: | ||||
Total revenue | $ 52,483 | $ 24,854 | $ 104,614 | $ 73,963 |
Operating costs and expenses: | ||||
Cost, Product and Service [Extensible Enumeration] | Product Sales [Member] | Product Sales [Member] | Product Sales [Member] | Product Sales [Member] |
Product costs | $ 6,921 | $ 5,141 | $ 17,926 | $ 14,745 |
Research and development | 11,232 | 12,975 | 36,899 | 38,350 |
Selling, general and administrative | 12,874 | 12,854 | 39,077 | 33,159 |
Acquired intangible asset amortization | 879 | 1,024 | 2,659 | 3,184 |
Restructuring expense | 1,282 | |||
Contingent consideration (gain) expense | (835) | 3 | (829) | 9 |
Total operating costs and expenses | 31,071 | 31,997 | 97,014 | 89,447 |
Operating income (loss) | 21,412 | (7,143) | 7,600 | (15,484) |
Other expense: | ||||
Interest expense, net | (884) | (145) | (2,594) | (410) |
Foreign exchange (loss) gain | (61) | 85 | (261) | 120 |
Investment income, net | 182 | 22 | 531 | 73 |
Other expense | (763) | (38) | (2,324) | (217) |
Income (loss) before income taxes | 20,649 | (7,181) | 5,276 | (15,701) |
Income tax (expense) benefit | (13,303) | 1,530 | (13,506) | 3,155 |
Net income (loss) | $ 7,346 | $ (5,651) | $ (8,230) | $ (12,546) |
Basic net income (loss) per share | $ 0.52 | $ (0.41) | $ (0.59) | $ (0.90) |
Diluted net income (loss) per share | $ 0.52 | $ (0.41) | $ (0.59) | $ (0.90) |
Weighted average number of shares outstanding: | ||||
Basic | 14,050 | 13,929 | 14,020 | 13,907 |
Diluted | 14,072 | 13,929 | 14,020 | 13,907 |
Product Sales [Member] | ||||
Revenue: | ||||
Total revenue | $ 15,667 | $ 13,919 | $ 45,251 | $ 40,227 |
Royalties and License Fees [Member] | ||||
Revenue: | ||||
Total revenue | 34,153 | 8,795 | 52,347 | 26,738 |
Research, Development and Other [Member] | ||||
Revenue: | ||||
Total revenue | $ 2,663 | $ 2,140 | $ 7,016 | $ 6,998 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 7,346 | $ (5,651) | $ (8,230) | $ (12,546) |
Derivative instruments: | ||||
Unrealized net gain (loss) | 607 | (141) | ||
Net (gain) loss reclassified to earnings | (39) | (19) | ||
Net changes related to available-for-sale securities, net of tax | 4 | (7) | ||
Foreign currency translation adjustments | 45 | (4,289) | 6,833 | (7,439) |
Other comprehensive income (loss) | 613 | (4,285) | 6,673 | (7,446) |
Comprehensive income (loss) | $ 7,959 | $ (9,936) | $ (1,557) | $ (19,992) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss)Income [Member] | Retained Earnings [Member] |
Beginning balance at Sep. 30, 2021 | $ 140,085 | $ 695 | $ 21,598 | $ 1,727 | $ 116,065 |
Beginning balance, shares at Sep. 30, 2021 | 13,899 | ||||
Net income (loss) | (12,546) | (12,546) | |||
Other comprehensive income (loss), net of tax | (7,446) | (7,446) | |||
Issuance of common stock | 372 | $ 5 | 367 | ||
Issuance of common stock ,shares | 100 | ||||
Common stock options exercised, net | 391 | $ 1 | 390 | ||
Common stock option exercise ,shares | 21 | ||||
Purchase of common stock to pay employee taxes | (942) | $ (1) | 941 | ||
Purchase of common stock to pay employee taxes ,shares | (21) | ||||
Stock-based compensation | 5,198 | 5,198 | |||
Ending balance at Jun. 30, 2022 | 125,112 | $ 700 | 26,612 | (5,719) | 103,519 |
Ending balance ,shares at Jun. 30, 2022 | 13,999 | ||||
Beginning balance at Mar. 31, 2022 | 133,263 | $ 700 | 24,827 | (1,434) | 109,170 |
Beginning balance, shares at Mar. 31, 2022 | 13,990 | ||||
Net income (loss) | (5,651) | (5,651) | |||
Other comprehensive income (loss), net of tax | (4,285) | (4,285) | |||
Issuance of common stock ,shares | 9 | ||||
Common stock options exercised, net | 22 | 22 | |||
Common stock option exercise ,shares | 1 | ||||
Purchase of common stock to pay employee taxes | (36) | (36) | |||
Purchase of common stock to pay employee taxes ,shares | (1) | ||||
Stock-based compensation | 1,799 | 1,799 | |||
Ending balance at Jun. 30, 2022 | 125,112 | $ 700 | 26,612 | (5,719) | 103,519 |
Ending balance ,shares at Jun. 30, 2022 | 13,999 | ||||
Beginning balance at Sep. 30, 2022 | 108,392 | $ 701 | 28,774 | (9,874) | 88,791 |
Beginning balance, shares at Sep. 30, 2022 | 14,029 | ||||
Net income (loss) | (8,230) | (8,230) | |||
Other comprehensive income (loss), net of tax | 6,673 | 6,673 | |||
Issuance of common stock | 453 | $ 6 | 447 | ||
Issuance of common stock ,shares | 113 | ||||
Common stock options exercised, net | 350 | $ 1 | 349 | ||
Common stock option exercise ,shares | 17 | ||||
Purchase of common stock to pay employee taxes | (888) | $ 1 | (887) | ||
Purchase of common stock to pay employee taxes ,shares | (25) | ||||
Stock-based compensation | 5,662 | 5,662 | |||
Ending balance at Jun. 30, 2023 | 112,412 | $ 707 | 34,345 | (3,201) | 80,561 |
Ending balance ,shares at Jun. 30, 2023 | 14,134 | ||||
Beginning balance at Mar. 31, 2023 | 102,554 | $ 707 | $ 32,446 | (3,814) | 73,215 |
Beginning balance, shares at Mar. 31, 2023 | 14,134 | ||||
Net income (loss) | 7,346 | 7,346 | |||
Other comprehensive income (loss), net of tax | $ 613 | 613 | |||
Issuance of common stock ,shares | 1 | ||||
Purchase of common stock to pay employee taxes ,shares | (16) | (1) | (16) | ||
Stock-based compensation | $ 1,915 | $ 1,915 | |||
Ending balance at Jun. 30, 2023 | $ 112,412 | $ 707 | $ 34,345 | $ (3,201) | $ 80,561 |
Ending balance ,shares at Jun. 30, 2023 | 14,134 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Activities: | ||
Net loss | $ (8,230) | $ (12,546) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 6,365 | 6,902 |
Stock-based compensation | 5,662 | 5,198 |
Noncash lease expense | 485 | 371 |
Amortization of debt issuance costs | 274 | 34 |
Provision for credit losses | 163 | 8 |
Contingent consideration (gain) expense | (829) | 9 |
Deferred taxes | (187) | (2,996) |
Other | 124 | 214 |
Change in operating assets and liabilities: | ||
Accounts receivable and contract assets | (1,825) | (847) |
Inventories | (2,790) | (4,167) |
Prepaids and other | (961) | (1,998) |
Accounts payable | (669) | 349 |
Accrued liabilities | (2,474) | (1,039) |
Income taxes | 15,583 | (676) |
Deferred revenue | (1,427) | (3,539) |
Net cash provided by (used in) operating activities | 9,264 | (14,723) |
Investing Activities: | ||
Purchases of property and equipment | (2,170) | (2,798) |
Maturities of available-for-sale securities | 7,600 | |
Net cash (used in) provided by investing activities | (2,170) | 4,802 |
Financing Activities: | ||
Payments of short-term borrowings | (10,000) | |
Proceeds from issuance of long-term debt | 29,664 | |
Payments of debt issuance costs | (614) | |
Issuance of common stock | 803 | 763 |
Payments for taxes related to net share settlement of equity awards | (888) | (936) |
Payments for acquisition of in-process research and development | (978) | (500) |
Net cash provided by (used in) financing activities | 17,987 | (673) |
Effect of exchange rate changes on cash | 500 | (485) |
Net change in cash and cash equivalents | 25,581 | (11,079) |
Cash and Cash Equivalents: | ||
Beginning of period | 18,998 | 31,153 |
End of period | 44,579 | 20,074 |
Supplemental Information: | ||
Cash paid for income taxes | 251 | 395 |
Cash paid for interest | $ 2,157 | 256 |
Noncash investing and financing activities: | ||
Acquisition of property and equipment, net of refundable credits in other current assets and liabilities | 90 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,732 |
Organization
Organization | 9 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization Description of Business Surmodics, Inc. and subsidiaries (referred to as “Surmodics,” the “Company,” “we,” “us,” “our” and other like terms) is a leading provider of performance coating technologies for intravascular medical devices and chemical and biological components for in vitro diagnostic (“IVD”) immunoassay tests and microarrays. Surmodics develops and commercializes highly differentiated vascular intervention medical devices that are designed to address unmet clinical needs and engineered to the most demanding requirements. This key growth strategy leverages the combination of the Company’s expertise in proprietary surface modification and drug-delivery coating technologies, along with its device design, development and manufacturing capabilities. The Company’s mission is to improve the detection and treatment of disease. Surmodics is headquartered in Eden Prairie, Minnesota. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include all accounts and wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All intercompany transactions have been eliminated. The Company operates on a fiscal year ending on September 30. In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), the Company has omitted footnote disclosures that would substantially duplicate the disclosures contained in the audited consolidated financial statements of the Company. These unaudited condensed consolidated financial statements should be read together with the audited consolidated financial statements for the fiscal year ended September 30, 2022, and notes thereto included in our Annual Report on Form 10-K as filed with the SEC. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from those estimates. The results of operations for the three and nine months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the entire 2023 fiscal year. Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current year presentation. New Accounting Pronouncements No new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s condensed consolidated financial statements. |
Revenue
Revenue | 9 Months Ended |
Jun. 30, 2023 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 2. Revenue The following table presents the Company’s revenues disaggregated by product classification and by reportable segment. Three Months Ended June 30, Nine Months Ended June 30, (In thousands) 2023 2022 2023 2022 Medical Device Product sales $ 9,299 $ 6,741 $ 25,593 $ 19,970 Royalties 8,220 7,771 23,702 23,015 License fees 25,933 1,024 28,645 3,723 Research, development and other 2,562 1,992 6,799 6,181 Medical Device Revenue 46,014 17,528 84,739 52,889 In Vitro Diagnostics Product sales 6,368 7,178 19,658 20,257 Research, development and other 101 148 217 817 In Vitro Diagnostics Revenue 6,469 7,326 19,875 21,074 Total Revenue $ 52,483 $ 24,854 $ 104,614 $ 73,963 Contract assets totaled $ 7.7 million and $ 7.1 million as of June 30, 2023 and September 30, 2022 , respectively, on the condensed consolidated balance sheets. Fluctuations in the balance of contract assets result primarily from changes in sales-based and minimum royalties earned, but not collected, at each balance sheet date due to payment timing and contractual changes in the normal course of business. For discussion of contract liability (deferred revenue) balances and remaining performance obligations, see Note 3 Collaborative Arrangement. |
Collaborative Arrangement
Collaborative Arrangement | 9 Months Ended |
Jun. 30, 2023 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaborative Arrangement | 3. Collaborative Arrangement On February 26, 2018, the Company entered into an agreement with Abbott Vascular, Inc. (“Abbott”) whereby Abbott has exclusive worldwide commercialization rights for Surmodics' SurVeil TM drug-coated balloon (“DCB”) to treat the superficial femoral artery (the “Abbott Agreement”). In June 2023, the Company received premarket approval (“PMA”) for the SurVeil DCB from the U.S. Food and Drug Administration (“FDA”), and the product may now be marketed and sold in the U.S. by the Company’s exclusive distribution partner, Abbott. Under the Abbott Agreement, Abbott has the right to purchase commercial units from Surmodics, and the Company will realize revenue from product sales to Abbott at an agreed-upon transfer price, as well as a share of net profits resulting from third-party product sales by Abbott. Timing of commercialization in the U.S. is at the discretion of Abbott. Under the Abbott Agreement, Surmodics is responsible for conducting all necessary clinical trials, including completion of the ongoing, five-year TRANSCEND pivotal clinical trial. Abbott and Surmodics participate on a joint development committee charged with providing guidance on the Company’s clinical and regulatory activities with regard to the SurVeil DCB product. As of June 30, 2023 , the Company had received payments totaling $ 87.8 million for achievement of clinical and regulatory milestones under the Abbott Agreement, which consisted of the following: (i) $ 25 million upfront fee in fiscal 2018, (ii) $ 10 million milestone payment in fiscal 2019, (iii) $ 10.8 million milestone payment in fiscal 2020, (iv) $ 15 million milestone payment in fiscal 2021, and (v) $ 27 million milestone payment in the third quarter of fiscal 2023 upon receipt of PMA for the SurVeil DCB from the FDA. As of June 30, 2023, there are no remaining contingent milestone payments under the Abbott Agreement. License fee revenue recognized from the Abbott Agreement on the condensed consolidated statements of operations totaled $ 25.9 million and $ 1.0 million for the three months ended June 30, 2023 and 2022 , respectively, and $ 28.5 million and $ 3.6 million for the nine months ended June 30, 2023 and 2022 , respectively. The amount of revenue recognized from the Abbott Agreement that was included in the respective beginning of fiscal year balances of deferred revenue on the condensed consolidated balance sheets totaled $ 3.9 million and $ 3.6 million for the nine months ended June 30, 2023 and 2022, respectively. As of June 30, 2023 and September 30, 2022 , deferred revenue on the condensed consolidated balance sheets included $ 7.7 million and $ 9.2 million, respectively, related to payments received under the Abbott Agreement. The $ 7.7 million in deferred revenue as of June 30, 2023 , which represents the Company’s performance obligations that are unsatisfied for executed contracts with an original duration of one year, is expected to be recognized as revenue over the next two years through fiscal 2025 as services, principally TRANSCEND clinical trial, are completed. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis by level of the fair value hierarchy were as follows: June 30, 2023 (In thousands) Quoted Prices in Active Markets for Identical Instruments Significant Other Significant Total Fair Value Assets Cash equivalents (1) $ — $ 14,733 $ — $ 14,733 Total assets $ — $ 14,733 $ — $ 14,733 Liabilities Interest rate swap (2) — 160 — 160 Total liabilities $ — $ 160 $ — $ 160 September 30, 2022 (In thousands) Quoted Prices in Active Markets for Identical Instruments Significant Other Significant Total Fair Value Assets Cash equivalents (1) $ — $ 2,035 $ — $ 2,035 Total assets $ — $ 2,035 $ — $ 2,035 Liabilities Contingent consideration (3) $ — $ — $ 829 $ 829 Total liabilities $ — $ — $ 829 $ 829 (1) Fair value of cash equivalents (money market funds) is based on quoted vendor prices and broker pricing where all significant inputs are observable. (2) Fair value of interest rate swap is based on forward-looking, one-month term secured overnight financing rate (“Term SOFR”) spot rates and interest rate curves (Note 7). (3) Fair value of contingent consideration liabilities was determined based on discounted cash flow analyses that included probability and timing of development and regulatory milestone achievements and a discount rate, which are considered significant unobservable inputs as of September 30, 2022 . Contingent consideration liabilities are remeasured to fair value each reporting period using discount rates, probabilities of payment and projected payment dates. Increases or decreases in the fair value of the contingent consideration liability can result from changes in the timing or likelihood of achieving milestones and changes in discount periods and rates. Projected contingent payment amounts are discounted back to the current period using a discount cash flow model. Interest accretion and fair value adjustments associated with contingent consideration liabilities are reported in contingent consideration (gain) expense on the condensed consolidated statements of operations. Changes in the contingent consideration liabilities measured at fair value using Level 3 inputs were as follows: (In thousands) Contingent consideration liability at September 30, 2022 $ 829 Additions — Fair value adjustments ( 835 ) Settlements — Interest accretion 6 Foreign currency translation — Contingent consideration liability at June 30, 2023 $ — Contingent consideration liabilities were associated with the fiscal 2021 acquisition of Vetex Medical Limited ("Vetex") and were included in other long-term liabilities on the condensed consolidated balance sheets as of September 30, 2022. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Jun. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | 5. Supplemental Balance Sheet Information Inventories Inventories consisted of the following components: June 30, September 30, (In thousands) 2023 2022 Raw materials $ 8,274 $ 6,102 Work-in process 2,016 1,595 Finished products 4,320 4,122 Total $ 14,610 $ 11,819 Prepaids and Other Assets, Current Prepaids and other current assets consisted of the following: June 30, September 30, (In thousands) 2023 2022 Prepaid expenses $ 2,961 $ 2,570 Irish research and development credits receivable 829 753 CARES Act employee retention credit receivable (1) 3,441 3,441 Prepaids and other $ 7,231 $ 6,764 (1) Receivable consisted of anticipated reimbursement of personnel expenses incurred in fiscal periods prior to fiscal 2023 as a result of our eligibility for the employee retention credit under the provisions of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). Intangible Assets Intangible assets consisted of the following: June 30, 2023 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 12,484 $ ( 10,386 ) $ 2,098 Developed technology 11.9 34,727 ( 10,570 ) 24,157 Patents and other 14.1 3,551 ( 2,588 ) 963 Total definite-lived intangible assets 50,762 ( 23,544 ) 27,218 Unamortized intangible assets: Trademarks and trade names 580 — 580 Total intangible assets $ 51,342 $ ( 23,544 ) $ 27,798 September 30, 2022 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 11,354 $ ( 8,827 ) $ 2,527 Developed technology 11.9 31,943 ( 7,994 ) 23,949 Patents and other 14.1 3,551 ( 2,462 ) 1,089 Total definite-lived intangible assets 46,848 ( 19,283 ) 27,565 Unamortized intangible assets: Trademarks and trade names 580 — 580 Total intangible assets $ 47,428 $ ( 19,283 ) $ 28,145 Intangible asset amortization expense was $ 0.9 million and $ 1.1 million for the three months ended June 30, 2023 and 2022 , respectively, and $ 2.9 million and $ 3.4 million for the nine months ended June 30, 2023 and 2022 , respectively. Based on the intangible assets in service as of June 30, 2023, estimated amortization expense for future fiscal years was as follows: (In thousands) Remainder of 2023 $ 945 2024 3,779 2025 3,743 2026 2,845 2027 2,595 2028 2,584 Thereafter 10,727 Definite-lived intangible assets $ 27,218 Future amortization amounts presented above are estimates. Actual future amortization expense may be different as a result of future acquisitions, impairments, changes in amortization periods, foreign currency translation rates, or other factors. Goodwill Changes in the carrying amount of goodwill by segment were as follows: (In thousands) In Vitro Medical Total Goodwill as of September 30, 2022 $ 8,010 $ 32,700 $ 40,710 Currency translation adjustment — 3,134 3,134 Goodwill as of June 30, 2023 $ 8,010 $ 35,834 $ 43,844 Other Assets, Noncurrent Other noncurrent assets consisted of the following: June 30, September 30, (In thousands) 2023 2022 Operating lease right-of-use assets $ 3,155 $ 3,633 Other 1,683 1,136 Other assets $ 4,838 $ 4,769 Other noncurrent assets consisted primarily of prepaid expenses and receivables related to refundable Irish research and development tax credits. Accrued Other Liabilities Accrued other liabilities consisted of the following: June 30, September 30, (In thousands) 2023 2022 Accrued professional fees $ 358 $ 279 Accrued clinical study expense 1,531 1,425 Accrued purchases 1,203 1,655 Acquisition of in-process research and development (1) 949 981 Operating lease liability, current portion 1,046 963 Other 366 551 Total accrued other liabilities $ 5,453 $ 5,854 (1) Acquisition of in-process research and development consisted of the present value of guaranteed payments to be made (current portion) in connection with an asset acquisition in fiscal 2018 (Note 11). Other Long-term Liabilities Other long-term liabilities consisted of the following: June 30, September 30, (In thousands) 2023 2022 Deferred consideration (1) $ 3,447 $ 4,260 Contingent consideration (2) — 829 Unrecognized tax benefits (3) 3,032 1,841 Operating lease liabilities (4) 3,060 3,843 Other long-term liabilities $ 9,539 $ 10,773 (1) Deferred consideration consisted of the present value of guaranteed payments to be made (noncurrent portion) in connection with the fiscal 2021 Vetex acquisition and with an asset acquisition in fiscal 2018 (Note 11). (2) Contingent consideration consisted of the fair value of contingent consideration liabilities associated with the fiscal 2021 Vetex acquisition (Note 11). (3) Balance of unrecognized tax benefits includes accrued interest and penalties, if applicable (Note 10). (4) Operating lease liabilities consisted of the non-current portion of the net present value of future minimum lease payments, reduced by the discounted value of leasehold improvement incentives paid or payable to the Company. |
Debt
Debt | 9 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt Debt consisted of the following: June 30, September 30, (In thousands) 2023 2022 Short-term borrowings (1) $ — $ 10,000 Revolving Credit Facility, Term SOFR + 3.00 % , maturing October 1, 2027 $ 5,000 $ — Tranche 1 Term Loans, Term SOFR + 5.75 % , maturing October 1, 2027 25,000 — Long-term debt, gross 30,000 — Less: Unamortized debt issuance costs ( 647 ) — Long-term debt, net $ 29,353 $ — (1) Consisted of the outstanding balance on the secured revolving credit facility with Bridgewater Bank; this balance was repaid and the credit agreement terminated on October 14, 2022. For further information, refer to the Notes to the Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2022. On October 14, 2022, the Company entered into a secured revolving credit facility and secured term loan facilities pursuant to a Credit, Security and Guaranty Agreement (the “MidCap Credit Agreement”) with Mid Cap Funding IV Trust, as agent, and MidCap Financial Trust, as term loan servicer and the lenders from time to time party thereto. The MidCap Credit Agreement provides for availability under a secured revolving line of credit of up to $ 25.0 million (the “Revolving Credit Facility”). Availability under the Revolving Credit Facility is subject to a borrowing base. The MidCap Credit Agreement also provides for up to $ 75.0 million in term loans (the “Term Loans”), consisting of a $ 25.0 million Tranche 1 (“Tranche 1”) and a $ 50.0 million Tranche 2 (“Tranche 2”), which may be drawn in increments of at least $ 10.0 million. In addition, after the closing and prior to December 31, 2024, the Term Loan lenders may, in their sole discretion, fund an additional tranche of Term Loans of up to $ 25.0 million upon the written request of the Company. Upon closing, the Company borrowed $ 25.0 million of Tranche 1, borrowed $ 5.0 million on the Revolving Credit Facility, and used approximately $ 10.0 million of the proceeds to repay borrowings under the revolving credit facility with Bridgewater Bank. The Company intends to use the remaining proceeds to fund working capital needs and for other general corporate purposes, as permitted under the MidCap Credit Agreement. Until December 31, 2024, the Company will be eligible to borrow Tranche 2 at the Company’s option upon meeting certain conditions set forth in the MidCap Credit Agreement, including having no less than $ 60.0 million of rolling-four-quarter core net revenue as of the end of the prior fiscal quarter. Core net revenue is defined in the MidCap Credit Agreement as the sum of revenue from our In Vitro Diagnostics segment and revenues from performance coating technologies in our Medical Device segment. Pursuant to the MidCap Credit Agreement, the Company provided a first priority security interest in all existing and future acquired assets, including intellectual property and real estate, owned by the Company. The MidCap Credit Agreement contains certain covenants that limit the Company’s ability to engage in certain transactions. Subject to certain limited exceptions, these covenants limit the Company’s ability to, among other things: • create, incur, assume or permit to exist any additional indebtedness, or create, incur, allow or permit to exist any additional liens; • enter into any amendment or other modification of certain agreements; • effect certain changes in the Company’s business, fiscal year, management, entity name or business locations; • liquidate or dissolve, merge with or into, or consolidate with, any other company; • pay cash dividends on, make any other distributions in respect of, or redeem, retire or repurchase, any shares of the Company’s capital stock; • make certain investments, other than limited permitted acquisitions; and • enter into transactions with the Company’s affiliates. The MidCap Credit Agreement also contains customary indemnification obligations and customary events of default, including, among other things, (i) non-payment, (ii) breach of warranty, (iii) non-performance of covenants and obligations, (iv) default on other indebtedness, (v) judgments, (vi) change of control, (vii) bankruptcy and insolvency, (viii) impairment of security, (ix) termination of a pension plan, (x) regulatory matters, and (xi) material adverse effect. In addition, the Company must maintain minimum core net revenue levels tested quarterly to the extent that Term Loans advanced under the MidCap Credit Agreement exceed $ 25.0 million. In the event of default under the MidCap Credit Agreement, the Company would be required to pay interest on principal and all other due and unpaid obligations at the current rate in effect plus 2 %. Borrowings under the MidCap Credit Agreement bear interest at the forward-looking, one-month secured overnight financing rate (“Term SOFR”) as published by CME Group Benchmark Administration Limited plus 0.10 % (“Adjusted Term SOFR”). The Revolving Credit Facility bears interest at an annual rate equal to 3.00 % plus the greater of Adjusted Term SOFR or 1.50 %, and the Term Loans bear interest at an annual rate equal to 5.75 % plus the greater of Adjusted Term SOFR or 1.50 %. The Company is required to make monthly interest payments on the Revolving Credit Facility with the entire principal payment due at maturity. The Company is required to make 48 monthly interest payments on the Term Loans beginning on November 1, 2022 (the “Interest-Only Period”). If the Company is in covenant compliance at the end of the Interest-Only Period, the Company will have the option to extend the Interest-Only Period through maturity with the entire principal payment due at maturity. If the Company is not in covenant compliance at the end of the Interest-Only Period, the Company is required to make 12 months of straight-line amortization payments with the entire principal amount due at maturity. Subject to certain limitations, the Term Loans have a prepayment fee for payments made prior to the maturity date equal to 3.0 % of the prepaid principal amount for the first year following the closing date of the MidCap Credit Agreement, 2.0 % of the prepaid principal amount for the second year following the closing date and 1.0 % of the prepaid principal amount for the third year following the closing date and thereafter. In addition, if the Revolving Credit Facility is terminated in whole or in part prior to the maturity date, the Company must pay a prepayment fee equal to 3.0 % of the terminated commitment amount for the first year following the closing date of the MidCap Credit Agreement, 2.0 % of the terminated commitment amount for the second year following the closing date of the MidCap Credit Agreement and 1.0 % of the terminated commitment amount for the third year following the closing date and thereafter. The Company is also required to pay a full exit fee at the time of maturity or full prepayment event equal to 2.5 % of the aggregate principal amount of the Term Loans made pursuant to the MidCap Credit Agreement and a partial exit fee at the time of any partial prepayment event equal to 2.5 % of the amount prepaid. This exit fee is accreted over the remaining term of the Term Loans. The Company also is obligated to pay customary origination fees at the time of each funding of the Term Loans and a customary annual administrative fee based on the amount borrowed under the Term Loan, due on an annual basis. The customary fees on the Revolving Credit Facility include (i) an origination fee based on the commitment amount, which was paid on the closing date, (ii) an annual collateral management fee of 0.50 % per annum based on the outstanding balance of the Revolving Credit Facility, payable monthly in arrears and (iii) an unused line fee of 0.50 % per annum based on the average unused portion of the Revolving Credit Facility, payable monthly in arrears. The Company must also maintain a minimum balance of no less than 20 % of availability under the Revolving Credit Facility or a minimum balance fee applies of 0.50 % per annum. Expenses recognized for fees for the Revolving Credit Facility and Term Loans are reported in interest expense, net on the condensed consolidated statements of operations. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 7. Derivative Financial Instruments We periodically enter into interest rate swaps with major financial institutions of high credit quality to mitigate exposure to changes in interest rates on our floating-rate indebtedness. Since the fair value of these interest rate swaps is derived from current market rates, they are classified as derivative financial instruments. We do not use derivatives for speculative or trading purposes. When the Company has multiple derivative financial instruments with the same counterparty subject to a master netting arrangement, we have elected to offset the amounts: (i) recorded as assets and liabilities and (ii) amounts recognized for the right to reclaim cash collateral we have deposited with the counterparty (i.e., cash collateral receivable). Such offset amounts are presented as either a net asset or liability by counterparty on the condensed consolidated balance sheets. Cash Flow Hedge — Interest Rate Swap On October 14, 2022, we entered into a floating-to-fixed interest rate swap agreement to mitigate exposure to interest rate increases related to our Term Loans. See Note 6 Debt for further information on our financing arrangements. The total notional amount of the interest rate swap was $ 25 million as of June 30, 2023 . The interest rate swap agreement expires October 1, 2027 . As a result of this agreement, every month we pay fixed interest at 4.455 % in exchange for interest received at Term SOFR, and the fixed interest rate per annum on the first $ 25 million of notional value of the Term Loans will be 10.205 % through its maturity. The interest rate swap agreement requires the Company to make deposits of cash collateral, which may increase or be refunded commensurate with fluctuations in current and forecasted interest rates. We have the contractual right to reclaim this cash collateral receivable. The interest rate swap has been designated as a cash flow hedge. Consequently, changes in the fair value of the interest rate swap are recorded in accumulated other comprehensive loss ("AOCL") within stockholders' equity on the condensed consolidated balance sheets. The unrealized (losses) gains on the interest rate swap associated with the interest payments on the Term Loans that are still forecasted to occur are included in AOCL. These (losses) gains will be reclassified into interest expense on the condensed consolidated statements of operations over the life of the swap agreement as the hedged interest payments occur. Upon termination of the derivative instrument or a change in the hedged item, any remaining fair value recorded on the condensed consolidated balance sheets will be recorded as interest expense consistent with the cash flows associated with the underlying hedged item. Cash flows associated with the interest rate swap are included in cash flows from operating activities on the condensed consolidated statements of cash flows. The net fair value of designated hedge derivatives subject to master netting arrangements reported on the condensed consolidated balance sheets was as follows: Asset (Liability) (In thousands) Gross Recognized Amount Gross Offset Amount Net Amount Presented Cash Collateral Receivable Net Amount Reported Balance Sheet Location June 30, 2023 Interest rate swap $ ( 160 ) $ — $ ( 160 ) $ 545 $ 385 Other assets, noncurrent September 30, 2022 — $ — $ — $ — $ — $ — — The pretax amounts recognized in AOCL on the interest rate swap were as follows: Three Months Ended June 30, Nine Months Ended June 30, (In thousands) 2023 2022 2023 2022 Beginning unrealized net gain (loss) in AOCL $ — $ — $ — $ — Net gain (loss) recognized in other comprehensive income (loss) 607 — ( 141 ) — Net (gain) loss reclassified into interest expense ( 39 ) — ( 19 ) — Ending unrealized net gain (loss) in AOCL $ 568 $ — $ ( 160 ) $ — |
Stock-based Compensation Plans
Stock-based Compensation Plans | 9 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation Plans | . Stock-based Compensation Plans The Company has stock-based compensation plans approved by its shareholders under which it grants stock options, restricted stock awards, restricted stock units and deferred stock units to officers, directors and key employees. Stock-based compensation expense was reported as follows in the condensed consolidated statements of operations: Three Months Ended June 30, Nine Months Ended June 30, (In thousands) 2023 2022 2023 2022 Product costs $ 63 $ 62 $ 202 $ 170 Research and development 353 355 1,056 1,086 Selling, general and administrative 1,499 1,382 4,404 3,942 Total $ 1,915 $ 1,799 $ 5,662 $ 5,198 As of June 30, 2023 , unrecognized compensation costs related to non-vested awards totaled approximately $ 12.5 million, which is expected to be recognized over a weighted average period of approximately 2.3 years. Stock Option Awards T he Company awards stock options to officers, directors and key employees and uses the Black-Scholes option pricing model to determine the fair value of stock options as of the date of each grant. Stock option grant activity was as follows: Nine Months Ended June 30, 2023 2022 Stock option grant activity: Stock options granted 305,000 312,000 Weighted average grant date fair value $ 15.03 $ 16.11 Weighted average exercise price $ 34.79 $ 42.78 Restricted Stock Awards During the nine months ended June 30, 2023 and 2022 , the Company awarded 102,000 and 90,000 restricted stock shares, respectively, to certain key employees and officers with a weighted average grant date fair value per share of $ 35.84 and $ 43.02 , respectively. Restricted Stock is valued based on the market value of the shares as of the date of grant. Restricted Stock Unit Awards During each of the nine months ended June 30, 2023 and 2022 , the Company awarded 16,000 and 14,000 restricted stock units (“RSUs”), respectively, to directors and to key employees in foreign jurisdictions with a weighted average grant date fair value per unit of $ 31.72 and $ 42.79 , respectively. RSUs are valued based on the market value of the shares as of the date of grant. Employee Stock Purchase Plan Our U.S. employees are eligible to participate in the amended 1999 Employee Stock Purchase Plan (“ESPP”) approved by our shareholders. During the nine months ended June 30, 2023 and 2022 , 23,000 and 10,000 shares, respectively, were issued under the ESPP. |
Net Income (Loss) Per Share Dat
Net Income (Loss) Per Share Data | 9 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share Data | 9. Net Income (Loss) Per Share Data Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common and common equivalent shares outstanding during the period. The Company’s potentially dilutive common shares are those that result from dilutive common stock options and non-vested stock relating to restricted stock awards and restricted stock units. The calculation of diluted income (loss) per share excluded 0.1 million and less than 0.1 million in weighted-average shares for the three months ended June 30, 2023 and 2022 , respectively, and 0.1 million in weighted-average shares for each of the nine months ended June 30, 2023 and 2022 , as their effect was anti-dilutive. The following table presents the denominator for the computation of diluted weighted average shares outstanding: Three Months Ended June 30, Nine Months Ended June 30, (In thousands) 2023 2022 2023 2022 Basic weighted average shares outstanding 14,050 13,929 14,020 13,907 Dilutive effect of outstanding stock options, non-vested restricted stock, and non-vested restricted stock units 22 — — — Diluted weighted average shares outstanding 14,072 13,929 14,020 13,907 |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes For interim income tax reporting, the Company estimates its full-year effective tax rate and applies it to fiscal year-to-date pretax income (loss), excluding unusual or infrequently occurring discrete items. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded. The Company reported an income tax expense of $( 13.3 ) million and income tax benefit of $ 1.5 million for the three months ended June 30, 2023 and 2022, respectively. For the nine months ended June 30, 2023 and 2022 , the Company reported income tax expense of $( 13.5 ) million and income tax benefit of $ 3.2 million, respectively. • In the fourth quarter of fiscal 2022, we established a full valuation allowance against U.S. net deferred tax assets as of September 30, 2022. As a result, in fiscal 2023, we are no longer recording a tax benefit associated with U.S. pretax losses and incremental deferred tax assets. • Recurring items cause our effective tax rate to differ from the U.S. federal statutory rate of 21 %, including foreign-derived intangible income (“FDII”) deductions in the U.S., U.S. federal and Irish R&D credits, Irish and U.S. state tax rates, and excess tax benefits associated with stock-based compensation. • Beginning in our fiscal 2023, certain R&D costs are required to be capitalized and amortized over a five-year period under the Tax Cuts and Jobs Act enacted in December 2017. This change will impact the expected U.S. federal and state income tax expense and cash taxes to be paid for our fiscal 2023. A valuation allowance is required to be recognized against deferred tax assets if, based on the available evidence, it is more likely than not (defined as a likelihood of more than 50 %) that all or a portion of such assets will not be realized. The relevant guidance weighs available evidence such as historical cumulative taxable losses more heavily than future profitability. The valuation allowance has no impact on the availability of U.S. net deferred tax assets to offset future tax liabilities. Each reporting period, we evaluate the realizability of our net deferred tax assets and perform an assessment of both positive and negative evidence. Based on our evaluation of all available positive and negative evidence, and by placing greater weight on the objective negative evidence associated with our three-year cumulative U.S. pre-tax loss adjusted for permanent adjustments, we determined, as of June 30, 2023 and September 30, 2022, that it is more likely than not that our net U.S. deferred tax assets will not be realized. Accordingly, a full valuation allowance is recorded against our net U.S. deferred tax assets as of June 30, 2023 and September 30, 2022. Due to significant estimates used to establish the valuation allowance and the potential for changes in facts and circumstances, it is reasonably possible that we will be required to record additional adjustments to the valuation allowance in future reporting periods that could have a material effect on our results of operations. Discrete tax (expense) benefit related to stock-based compensation awards vested, expired, canceled and exercised was $ 0.1 million or less for each of the three and nine months ended June 30, 2023 and 2022. The total amount of unrecognized tax benefits, excluding interest and penalties that, if recognized, would affect the effective tax rate was $ 3.1 million and $ 2.5 million as of June 30, 2023 and September 30, 2022, respectively. Interest and penalties related to unrecognized tax benefits are recorded in the income tax (expense) benefit. The Company files income tax returns, including returns for its subsidiaries, in the U.S. federal jurisdiction and in various state jurisdictions, as well as several non-U.S. jurisdictions. Uncertain tax positions are related to tax years that remain subject to examination. The Internal Revenue Service commenced an examination of the Company’s fiscal 2019 U.S. federal tax return in fiscal 2022; the examination has not been completed. U.S. federal income tax returns for years prior to fiscal 2019 are no longer subject to examination by federal tax authorities. For tax returns for U.S. state and local jurisdictions, the Company is no longer subject to examination for tax years generally before fiscal 2012. For tax returns for non-U.S. jurisdictions, the Company is no longer subject to income tax examination for years prior to 2018. Additionally, the Company has been indemnified of liability for any taxes relating to Creagh Medical, Ltd.; NorMedix, Inc.; and Vetex for periods prior to the respective acquisition dates, pursuant to the terms of the related share purchase agreements. There were no undistributed earnings in foreign subsidiaries as of June 30, 2023 and September 30, 2022 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2023 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Clinical Trials. The Company has engaged clinical trial clinical research organization (“CRO”) consultants to assist with the administration of its ongoing clinical trials. The Company executed separate contracts with two CROs for services in connection with the TRANSCEND pivotal clinical trial for the SurVeil DCB, including pass-through expenses paid by the CROs, of up to approximately $ 30 million in the aggregate. As of June 30, 2023 , an estimated $ 2 million remains to be paid on one of these contracts, which may vary depending on actual pass-through expenses incurred to execute the trial. The Company estimates that the total cost of the TRANSCEND clinical trial will be in the range of $ 37 million to $ 40 million from inception to completion. In the event the Company were to terminate any trial, it may incur certain financial penalties which would become payable to the CRO for costs to wind down the terminated trial. Asset Acquisitions. In fiscal 2018, the Company acquired certain intellectual property assets of Embolitech, LLC (the “Embolitech Transaction”). As part of the Embolitech Transaction, the Company paid the sellers $ 5.0 million in fiscal 2018, $ 1.0 million in fiscal 2020, $ 1.0 million in fiscal 2021, $ 0.5 million in fiscal 2022, and $ 1.0 million in the second quarter of fiscal 2023. The Company is obligated to pay an additional installment of $ 1.0 million in fiscal 2024 , which may be accelerated upon the occurrence of certain sales and regulatory milestones. An additional $ 1.0 million payment is contingent upon the achievement of certain regulatory milestones within a contingency period ending in 2033 . Vetex Acquisition. In fiscal 2021, Surmodics acquired all of the outstanding shares of Vetex with an upfront cash payment of $ 39.9 million. The Company is obligated to pay additional installments totaling $ 3.5 million in fiscal 2024 through fiscal 2027 . These payments may be accelerated upon the occurrence of certain product development and regulatory milestones. An additional $ 3.5 million in payments is contingent upon the achievement of certain product development and regulatory milestones within a contingency period ending in fiscal 2027 . |
Restructuring
Restructuring | 9 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 12. Restructuring In the second quarter of fiscal 2023, we initiated a spending reduction plan intended to preserve capital and more closely align our capital allocation priorities with our strategic objectives, which included a workforce restructuring in our Medical Device segment. As a result, for the nine months ended June 30, 2023 , we recorded $ 1.3 million in severance and related charges in restructuring expense on our condensed consolidated statements of operations, which represented the total estimated expense as of June 30, 2023 expected to be incurred associated with the workforce restructuring. Restructuring expense accruals included in accrued other liabilities on the condensed consolidated balance sheets were as follows: (In thousands) Restructuring expense accruals as of September 30, 2022 $ — Restructuring expense 1,282 Payments ( 1,259 ) Other adjustments — Currency translation — Restructuring expense accruals as of June 30, 2023 $ 23 Restructuring expense accruals as of June 30, 2023 are expected to be paid during the fourth quarter of fiscal 2023. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment Information Segment revenue, operating income (loss), and depreciation and amortization were as follows: Three Months Ended June 30, Nine Months Ended June 30, (In thousands) 2023 2022 2023 2022 Revenue: Medical Device $ 46,014 $ 17,528 $ 84,739 $ 52,889 In Vitro Diagnostics 6,469 7,326 19,875 21,074 Total revenue $ 52,483 $ 24,854 $ 104,614 $ 73,963 Operating income (loss): Medical Device $ 21,777 $ ( 7,308 ) $ 7,483 $ ( 16,712 ) In Vitro Diagnostics 2,866 3,387 9,450 10,262 Total segment operating income (loss) 24,643 ( 3,921 ) 16,933 ( 6,450 ) Corporate ( 3,231 ) ( 3,222 ) ( 9,333 ) ( 9,034 ) Total operating income (loss) $ 21,412 $ ( 7,143 ) $ 7,600 $ ( 15,484 ) Depreciation and amortization: Medical Device $ 1,997 $ 2,020 $ 5,883 $ 6,347 In Vitro Diagnostics 78 88 230 260 Corporate 76 98 252 295 Total depreciation and amortization $ 2,151 $ 2,206 $ 6,365 $ 6,902 The Corporate category includes expenses that are not fully allocated to the Medical Device and In Vitro Diagnostics segments. These Corporate costs are related to administrative corporate functions, such as executive management, corporate accounting, information technology, legal, human resources and Board of Directors. Corporate may also include expenses, such as acquisition-related costs and litigation, which are not specific to a segment and thus not allocated to the reportable segments. Asset information by segment is not presented because the Company does not provide its chief operating decision maker assets by segment, as the data is not readily available. |
Organization (Policies)
Organization (Policies) | 9 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Surmodics, Inc. and subsidiaries (referred to as “Surmodics,” the “Company,” “we,” “us,” “our” and other like terms) is a leading provider of performance coating technologies for intravascular medical devices and chemical and biological components for in vitro diagnostic (“IVD”) immunoassay tests and microarrays. Surmodics develops and commercializes highly differentiated vascular intervention medical devices that are designed to address unmet clinical needs and engineered to the most demanding requirements. This key growth strategy leverages the combination of the Company’s expertise in proprietary surface modification and drug-delivery coating technologies, along with its device design, development and manufacturing capabilities. The Company’s mission is to improve the detection and treatment of disease. Surmodics is headquartered in Eden Prairie, Minnesota. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include all accounts and wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All intercompany transactions have been eliminated. The Company operates on a fiscal year ending on September 30. In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), the Company has omitted footnote disclosures that would substantially duplicate the disclosures contained in the audited consolidated financial statements of the Company. These unaudited condensed consolidated financial statements should be read together with the audited consolidated financial statements for the fiscal year ended September 30, 2022, and notes thereto included in our Annual Report on Form 10-K as filed with the SEC. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from those estimates. The results of operations for the three and nine months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the entire 2023 fiscal year. Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current year presentation. |
New Accounting Pronouncements | New Accounting Pronouncements No new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s condensed consolidated financial statements. |
Net Loss Per Share Data | Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common and common equivalent shares outstanding during the period. The Company’s potentially dilutive common shares are those that result from dilutive common stock options and non-vested stock relating to restricted stock awards and restricted stock units. The calculation of diluted income (loss) per share excluded 0.1 million and less than 0.1 million in weighted-average shares for the three months ended June 30, 2023 and 2022 , respectively, and 0.1 million in weighted-average shares for each of the nine months ended June 30, 2023 and 2022 , as their effect was anti-dilutive. |
Income Taxes | For interim income tax reporting, the Company estimates its full-year effective tax rate and applies it to fiscal year-to-date pretax income (loss), excluding unusual or infrequently occurring discrete items. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded. |
Income Tax Uncertainties | The Company files income tax returns, including returns for its subsidiaries, in the U.S. federal jurisdiction and in various state jurisdictions, as well as several non-U.S. jurisdictions. Uncertain tax positions are related to tax years that remain subject to examination. The Internal Revenue Service commenced an examination of the Company’s fiscal 2019 U.S. federal tax return in fiscal 2022; the examination has not been completed. U.S. federal income tax returns for years prior to fiscal 2019 are no longer subject to examination by federal tax authorities. For tax returns for U.S. state and local jurisdictions, the Company is no longer subject to examination for tax years generally before fiscal 2012. For tax returns for non-U.S. jurisdictions, the Company is no longer subject to income tax examination for years prior to 2018. Additionally, the Company has been indemnified of liability for any taxes relating to Creagh Medical, Ltd.; NorMedix, Inc.; and Vetex for periods prior to the respective acquisition dates, pursuant to the terms of the related share purchase agreements. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenues Disaggregated by Product Classification and Reportable Segment | The following table presents the Company’s revenues disaggregated by product classification and by reportable segment. Three Months Ended June 30, Nine Months Ended June 30, (In thousands) 2023 2022 2023 2022 Medical Device Product sales $ 9,299 $ 6,741 $ 25,593 $ 19,970 Royalties 8,220 7,771 23,702 23,015 License fees 25,933 1,024 28,645 3,723 Research, development and other 2,562 1,992 6,799 6,181 Medical Device Revenue 46,014 17,528 84,739 52,889 In Vitro Diagnostics Product sales 6,368 7,178 19,658 20,257 Research, development and other 101 148 217 817 In Vitro Diagnostics Revenue 6,469 7,326 19,875 21,074 Total Revenue $ 52,483 $ 24,854 $ 104,614 $ 73,963 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis by level of the fair value hierarchy were as follows: June 30, 2023 (In thousands) Quoted Prices in Active Markets for Identical Instruments Significant Other Significant Total Fair Value Assets Cash equivalents (1) $ — $ 14,733 $ — $ 14,733 Total assets $ — $ 14,733 $ — $ 14,733 Liabilities Interest rate swap (2) — 160 — 160 Total liabilities $ — $ 160 $ — $ 160 September 30, 2022 (In thousands) Quoted Prices in Active Markets for Identical Instruments Significant Other Significant Total Fair Value Assets Cash equivalents (1) $ — $ 2,035 $ — $ 2,035 Total assets $ — $ 2,035 $ — $ 2,035 Liabilities Contingent consideration (3) $ — $ — $ 829 $ 829 Total liabilities $ — $ — $ 829 $ 829 (1) Fair value of cash equivalents (money market funds) is based on quoted vendor prices and broker pricing where all significant inputs are observable. (2) Fair value of interest rate swap is based on forward-looking, one-month term secured overnight financing rate (“Term SOFR”) spot rates and interest rate curves (Note 7). (3) Fair value of contingent consideration liabilities was determined based on discounted cash flow analyses that included probability and timing of development and regulatory milestone achievements and a discount rate, which are considered significant unobservable inputs as of September 30, 2022 . |
Schedule of Contingent Consideration Liabilities Measured at Fair Value | Changes in the contingent consideration liabilities measured at fair value using Level 3 inputs were as follows: (In thousands) Contingent consideration liability at September 30, 2022 $ 829 Additions — Fair value adjustments ( 835 ) Settlements — Interest accretion 6 Foreign currency translation — Contingent consideration liability at June 30, 2023 $ — |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Components of Inventories | Inventories consisted of the following components: June 30, September 30, (In thousands) 2023 2022 Raw materials $ 8,274 $ 6,102 Work-in process 2,016 1,595 Finished products 4,320 4,122 Total $ 14,610 $ 11,819 |
Summary of Prepaids and Other Current Assets | Prepaids and other current assets consisted of the following: June 30, September 30, (In thousands) 2023 2022 Prepaid expenses $ 2,961 $ 2,570 Irish research and development credits receivable 829 753 CARES Act employee retention credit receivable (1) 3,441 3,441 Prepaids and other $ 7,231 $ 6,764 (1) Receivable consisted of anticipated reimbursement of personnel expenses incurred in fiscal periods prior to fiscal 2023 as a result of our eligibility for the employee retention credit under the provisions of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). |
Schedule of Intangible Assets | Intangible assets consisted of the following: June 30, 2023 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 12,484 $ ( 10,386 ) $ 2,098 Developed technology 11.9 34,727 ( 10,570 ) 24,157 Patents and other 14.1 3,551 ( 2,588 ) 963 Total definite-lived intangible assets 50,762 ( 23,544 ) 27,218 Unamortized intangible assets: Trademarks and trade names 580 — 580 Total intangible assets $ 51,342 $ ( 23,544 ) $ 27,798 September 30, 2022 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 11,354 $ ( 8,827 ) $ 2,527 Developed technology 11.9 31,943 ( 7,994 ) 23,949 Patents and other 14.1 3,551 ( 2,462 ) 1,089 Total definite-lived intangible assets 46,848 ( 19,283 ) 27,565 Unamortized intangible assets: Trademarks and trade names 580 — 580 Total intangible assets $ 47,428 $ ( 19,283 ) $ 28,145 |
Estimated Amortization Expense | Based on the intangible assets in service as of June 30, 2023, estimated amortization expense for future fiscal years was as follows: (In thousands) Remainder of 2023 $ 945 2024 3,779 2025 3,743 2026 2,845 2027 2,595 2028 2,584 Thereafter 10,727 Definite-lived intangible assets $ 27,218 |
Schedule of Carrying Amount of Goodwill By Reportable Segment | Changes in the carrying amount of goodwill by segment were as follows: (In thousands) In Vitro Medical Total Goodwill as of September 30, 2022 $ 8,010 $ 32,700 $ 40,710 Currency translation adjustment — 3,134 3,134 Goodwill as of June 30, 2023 $ 8,010 $ 35,834 $ 43,844 |
Summary of Other Noncurrent Assets | Other noncurrent assets consisted of the following: June 30, September 30, (In thousands) 2023 2022 Operating lease right-of-use assets $ 3,155 $ 3,633 Other 1,683 1,136 Other assets $ 4,838 $ 4,769 |
Schedule of Accrued Other Liabilities | Accrued other liabilities consisted of the following: June 30, September 30, (In thousands) 2023 2022 Accrued professional fees $ 358 $ 279 Accrued clinical study expense 1,531 1,425 Accrued purchases 1,203 1,655 Acquisition of in-process research and development (1) 949 981 Operating lease liability, current portion 1,046 963 Other 366 551 Total accrued other liabilities $ 5,453 $ 5,854 (1) Acquisition of in-process research and development consisted of the present value of guaranteed payments to be made (current portion) in connection with an asset acquisition in fiscal 2018 (Note 11). |
Schedule of Other Long-term Liabilities | Other long-term liabilities consisted of the following: June 30, September 30, (In thousands) 2023 2022 Deferred consideration (1) $ 3,447 $ 4,260 Contingent consideration (2) — 829 Unrecognized tax benefits (3) 3,032 1,841 Operating lease liabilities (4) 3,060 3,843 Other long-term liabilities $ 9,539 $ 10,773 (1) Deferred consideration consisted of the present value of guaranteed payments to be made (noncurrent portion) in connection with the fiscal 2021 Vetex acquisition and with an asset acquisition in fiscal 2018 (Note 11). (2) Contingent consideration consisted of the fair value of contingent consideration liabilities associated with the fiscal 2021 Vetex acquisition (Note 11). (3) Balance of unrecognized tax benefits includes accrued interest and penalties, if applicable (Note 10). (4) Operating lease liabilities consisted of the non-current portion of the net present value of future minimum lease payments, reduced by the discounted value of leasehold improvement incentives paid or payable to the Company. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following: June 30, September 30, (In thousands) 2023 2022 Short-term borrowings (1) $ — $ 10,000 Revolving Credit Facility, Term SOFR + 3.00 % , maturing October 1, 2027 $ 5,000 $ — Tranche 1 Term Loans, Term SOFR + 5.75 % , maturing October 1, 2027 25,000 — Long-term debt, gross 30,000 — Less: Unamortized debt issuance costs ( 647 ) — Long-term debt, net $ 29,353 $ — (1) Consisted of the outstanding balance on the secured revolving credit facility with Bridgewater Bank; this balance was repaid and the credit agreement terminated on October 14, 2022. For further information, refer to the Notes to the Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2022. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Net Fair Value of Designated Hedge Derivatives Subject to Master Netting Arrangements Reported on Condensed Consolidated Balance Sheets | The net fair value of designated hedge derivatives subject to master netting arrangements reported on the condensed consolidated balance sheets was as follows: Asset (Liability) (In thousands) Gross Recognized Amount Gross Offset Amount Net Amount Presented Cash Collateral Receivable Net Amount Reported Balance Sheet Location June 30, 2023 Interest rate swap $ ( 160 ) $ — $ ( 160 ) $ 545 $ 385 Other assets, noncurrent September 30, 2022 — $ — $ — $ — $ — $ — — |
Schedule of Pretax Amounts Recognized in AOCL on Interest Rate Swap | The pretax amounts recognized in AOCL on the interest rate swap were as follows: Three Months Ended June 30, Nine Months Ended June 30, (In thousands) 2023 2022 2023 2022 Beginning unrealized net gain (loss) in AOCL $ — $ — $ — $ — Net gain (loss) recognized in other comprehensive income (loss) 607 — ( 141 ) — Net (gain) loss reclassified into interest expense ( 39 ) — ( 19 ) — Ending unrealized net gain (loss) in AOCL $ 568 $ — $ ( 160 ) $ — |
Stock-based Compensation Plans
Stock-based Compensation Plans (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation Expenses | Stock-based compensation expense was reported as follows in the condensed consolidated statements of operations: Three Months Ended June 30, Nine Months Ended June 30, (In thousands) 2023 2022 2023 2022 Product costs $ 63 $ 62 $ 202 $ 170 Research and development 353 355 1,056 1,086 Selling, general and administrative 1,499 1,382 4,404 3,942 Total $ 1,915 $ 1,799 $ 5,662 $ 5,198 |
Summary of Stock Option Grant Activity | Stock option grant activity was as follows: Nine Months Ended June 30, 2023 2022 Stock option grant activity: Stock options granted 305,000 312,000 Weighted average grant date fair value $ 15.03 $ 16.11 Weighted average exercise price $ 34.79 $ 42.78 |
Net Income (Loss) Per Share D_2
Net Income (Loss) Per Share Data (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Denominator for Computation of Diluted Weighted Average Shares Outstanding | The following table presents the denominator for the computation of diluted weighted average shares outstanding: Three Months Ended June 30, Nine Months Ended June 30, (In thousands) 2023 2022 2023 2022 Basic weighted average shares outstanding 14,050 13,929 14,020 13,907 Dilutive effect of outstanding stock options, non-vested restricted stock, and non-vested restricted stock units 22 — — — Diluted weighted average shares outstanding 14,072 13,929 14,020 13,907 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Expense Accruals included in Accrued and Other Liabilities | Restructuring expense accruals included in accrued other liabilities on the condensed consolidated balance sheets were as follows: (In thousands) Restructuring expense accruals as of September 30, 2022 $ — Restructuring expense 1,282 Payments ( 1,259 ) Other adjustments — Currency translation — Restructuring expense accruals as of June 30, 2023 $ 23 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Revenue, Operating income (loss) and Depreciation and Amortization | Segment revenue, operating income (loss), and depreciation and amortization were as follows: Three Months Ended June 30, Nine Months Ended June 30, (In thousands) 2023 2022 2023 2022 Revenue: Medical Device $ 46,014 $ 17,528 $ 84,739 $ 52,889 In Vitro Diagnostics 6,469 7,326 19,875 21,074 Total revenue $ 52,483 $ 24,854 $ 104,614 $ 73,963 Operating income (loss): Medical Device $ 21,777 $ ( 7,308 ) $ 7,483 $ ( 16,712 ) In Vitro Diagnostics 2,866 3,387 9,450 10,262 Total segment operating income (loss) 24,643 ( 3,921 ) 16,933 ( 6,450 ) Corporate ( 3,231 ) ( 3,222 ) ( 9,333 ) ( 9,034 ) Total operating income (loss) $ 21,412 $ ( 7,143 ) $ 7,600 $ ( 15,484 ) Depreciation and amortization: Medical Device $ 1,997 $ 2,020 $ 5,883 $ 6,347 In Vitro Diagnostics 78 88 230 260 Corporate 76 98 252 295 Total depreciation and amortization $ 2,151 $ 2,206 $ 6,365 $ 6,902 |
Revenue - Summary of Revenues D
Revenue - Summary of Revenues Disaggregated by Product Classification and Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 52,483 | $ 24,854 | $ 104,614 | $ 73,963 |
Product Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 15,667 | 13,919 | 45,251 | 40,227 |
Royalties [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 34,153 | 8,795 | 52,347 | 26,738 |
Research, Development and Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 2,663 | 2,140 | 7,016 | 6,998 |
Operating Segments [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 52,483 | 24,854 | 104,614 | 73,963 |
Operating Segments [Member] | Medical Device [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 46,014 | 17,528 | 84,739 | 52,889 |
Operating Segments [Member] | Medical Device [Member] | Product Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 9,299 | 6,741 | 25,593 | 19,970 |
Operating Segments [Member] | Medical Device [Member] | Royalties [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 8,220 | 7,771 | 23,702 | 23,015 |
Operating Segments [Member] | Medical Device [Member] | License Fees [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 25,933 | 1,024 | 28,645 | 3,723 |
Operating Segments [Member] | Medical Device [Member] | Research, Development and Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 2,562 | 1,992 | 6,799 | 6,181 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 6,469 | 7,326 | 19,875 | 21,074 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | Product Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 6,368 | 7,178 | 19,658 | 20,257 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | Research, Development and Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 101 | $ 148 | $ 217 | $ 817 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Revenue From Contract With Customer [Abstract] | ||
Contract assets — royalties and license fees | $ 7,678 | $ 7,116 |
Collaborative Arrangement - Add
Collaborative Arrangement - Additional Information (Detail 1) - Abbott Agreement [Member] - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-07-01 $ in Millions | Jun. 30, 2023 USD ($) |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Remaining performance obligation, amount | $ 7.7 |
Remaining performance obligation, satisfaction period | 2 years |
Collaborative Arrangement - A_2
Collaborative Arrangement - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2022 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Total revenue | $ 52,483 | $ 24,854 | $ 104,614 | $ 73,963 | |||||
Deferred revenue | $ 9,200 | ||||||||
Royalties and License Fees [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Total revenue | 34,153 | 8,795 | 52,347 | 26,738 | |||||
Abbott Agreement [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Collaborative arrangement payment received | 87,800 | ||||||||
Deferred revenue | 7,700 | 7,700 | |||||||
Abbott Agreement [Member] | Upfront Payment [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Collaborative arrangement payment received | $ 25,000 | ||||||||
Abbott Agreement [Member] | Milestone Payment [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Collaborative arrangement payment received | 27,000 | $ 15,000 | $ 10,800 | $ 10,000 | |||||
Abbott Agreement [Member] | Royalties and License Fees [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Total revenue | $ 25,900 | $ 1,000 | 28,500 | 3,600 | |||||
Collaboration revenue recognized included in balance at beginning of period | $ 3,900 | $ 3,600 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | $ 14,733 | $ 2,035 |
Liabilities measured at fair value | 160 | 829 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 14,733 | 2,035 |
Liabilities measured at fair value | 160 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | 829 | |
Cash equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 14,733 | 2,035 |
Cash equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 14,733 | 2,035 |
Contingent consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | 829 | |
Contingent consideration [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | $ 829 | |
Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | 160 | |
Interest Rate Swap [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | $ 160 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Contingent Consideration Liabilities Measured at Fair Value (Detail) - Contingent Consideration [Member] - Significant Unobservable Inputs (Level 3) [Member] $ in Thousands | 9 Months Ended |
Jun. 30, 2023 USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Contingent consideration liability, beginning balance | $ 829 |
Fair value adjustments | (835) |
Interest accretion | $ 6 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Components of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 8,274 | $ 6,102 |
Work-in process | 2,016 | 1,595 |
Finished products | 4,320 | 4,122 |
Total | $ 14,610 | $ 11,819 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Summary of Prepaids and Other Current Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid expenses | $ 2,961 | $ 2,570 |
Irish research and development credits receivable | 829 | 753 |
CARES Act employee retention credit receivable | 3,441 | 3,441 |
Prepaids and other | $ 7,231 | $ 6,764 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Amortization expense | $ 0.9 | $ 1.1 | $ 2.9 | $ 3.4 |
Supplemental Balance Sheet In_6
Supplemental Balance Sheet Information - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Sep. 30, 2022 | |
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Accumulated Amortization | $ (23,544) | $ (19,283) |
Definite-lived intangible assets, Net | 27,218 | |
Intangible assets, Gross Carrying Amount | 51,342 | 47,428 |
Intangible assets, Net | $ 27,798 | $ 28,145 |
Customer Lists and Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 8 years 10 months 24 days | 8 years 10 months 24 days |
Definite-lived intangible assets, Gross Carrying Amount | $ 12,484 | $ 11,354 |
Definite-lived intangible assets, Accumulated Amortization | (10,386) | (8,827) |
Definite-lived intangible assets, Net | $ 2,098 | $ 2,527 |
Developed Technology [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 11 years 10 months 24 days | 11 years 10 months 24 days |
Definite-lived intangible assets, Gross Carrying Amount | $ 34,727 | $ 31,943 |
Definite-lived intangible assets, Accumulated Amortization | (10,570) | (7,994) |
Definite-lived intangible assets, Net | $ 24,157 | $ 23,949 |
Patents and Other [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 14 years 1 month 6 days | 14 years 1 month 6 days |
Definite-lived intangible assets, Gross Carrying Amount | $ 3,551 | $ 3,551 |
Definite-lived intangible assets, Accumulated Amortization | (2,588) | (2,462) |
Definite-lived intangible assets, Net | 963 | 1,089 |
Definite-Lived Intangible Assets [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross Carrying Amount | 50,762 | 46,848 |
Definite-lived intangible assets, Accumulated Amortization | (23,544) | (19,283) |
Definite-lived intangible assets, Net | 27,218 | 27,565 |
Trademarks and Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net | $ 580 | $ 580 |
Supplemental Balance Sheet In_7
Supplemental Balance Sheet Information - Estimated Amortization Expense (Detail) $ in Thousands | Jun. 30, 2023 USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remainder of 2023 | $ 945 |
2024 | 3,779 |
2025 | 3,743 |
2026 | 2,845 |
2027 | 2,595 |
2028 | 2,584 |
Thereafter | 10,727 |
Definite-lived intangible assets, Net | $ 27,218 |
Supplemental Balance Sheet In_8
Supplemental Balance Sheet Information - Schedule of Carrying Amount of Goodwill by Segment (Detail) $ in Thousands | 9 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill [Line Items] | |
Goodwill as of September 30, 2022 | $ 40,710 |
Currency translation adjustment | 3,134 |
Goodwill as of March 31, 2023 | 43,844 |
In Vitro Diagnostics [Member] | |
Goodwill [Line Items] | |
Goodwill as of September 30, 2022 | 8,010 |
Goodwill as of March 31, 2023 | 8,010 |
Medical Device [Member] | |
Goodwill [Line Items] | |
Goodwill as of September 30, 2022 | 32,700 |
Currency translation adjustment | 3,134 |
Goodwill as of March 31, 2023 | $ 35,834 |
Supplemental Balance Sheet In_9
Supplemental Balance Sheet Information - Summary of Other Noncurrent Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Schedule Of Investments [Line Items] | ||
Other assets | $ 4,838 | $ 4,769 |
Operating Lease Right-of-Use Assets [Member] | ||
Schedule Of Investments [Line Items] | ||
Other assets | 3,155 | 3,633 |
Other [Member] | ||
Schedule Of Investments [Line Items] | ||
Other assets | $ 1,683 | $ 1,136 |
Supplemental Balance Sheet I_10
Supplemental Balance Sheet Information - Schedule of Accrued Other Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Accrued Liabilities Current [Abstract] | ||
Accrued professional fees | $ 358 | $ 279 |
Accrued clinical study expense | 1,531 | 1,425 |
Accrued purchases | 1,203 | 1,655 |
Acquisition of in-process research and development | 949 | 981 |
Operating lease liability, current portion | 1,046 | 963 |
Other | 366 | 551 |
Total accrued other liabilities | $ 5,453 | $ 5,854 |
Supplemental Balance Sheet I_11
Supplemental Balance Sheet Information - Schedule of Other Long-term Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Deferred consideration | $ 3,447 | $ 4,260 |
Contingent consideration | 829 | |
Unrecognized tax benefits | 3,032 | 1,841 |
Operating lease liabilities | 3,060 | 3,843 |
Other long-term liabilities | $ 9,539 | $ 10,773 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Schedule of Debt [Line Items] | ||
Short-term borrowings | $ 10,000 | |
Long-term debt, gross | $ 30,000 | |
Less: Unamortized debt issuance costs | (647) | |
Long-term debt, net | 29,353 | |
Revolving Credit Facility [Member] | Term SOFR [Member] | ||
Schedule of Debt [Line Items] | ||
Long-term debt, gross | 5,000 | |
Secured Term Loan Facilities [Member] | Term SOFR [Member] | Tranche 1 [Member] | ||
Schedule of Debt [Line Items] | ||
Long-term debt, gross | $ 25,000 |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Detail) - Term SOFR [Member] | 9 Months Ended |
Jun. 30, 2023 | |
Revolving Credit Facility [Member] | |
Schedule of Debt [Line Items] | |
Description of variable rate basis | Term SOFR + 3.00% |
Debt instrument, basis spread on variable rate | 3% |
Maturity date | Oct. 01, 2027 |
Secured Term Loan Facilities [Member] | Tranche 1 [Member] | |
Schedule of Debt [Line Items] | |
Description of variable rate basis | Term SOFR +5.75% |
Debt instrument, basis spread on variable rate | 5.75% |
Maturity date | Oct. 01, 2027 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Oct. 14, 2022 | Jun. 30, 2023 | |
Line Of Credit Facility [Line Items] | ||
Secured term loan facilities, proceeds at closing | $ 30,000,000 | |
Term Loans [Member] | Tranche 1 [Member] | Secured Overnight Financing Rate [Member] | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 5.75% | |
Description of variable rate basis | Term SOFR +5.75% | |
Revolving Credit Facility [Member] | Secured Overnight Financing Rate [Member] | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 3% | |
Description of variable rate basis | Term SOFR + 3.00% | |
MidCap Credit Agreement [Member] | Secured Overnight Financing Rate [Member] | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.10% | |
Description of variable rate basis | one-month secured overnight financing rate (“Term SOFR”) as published by CME Group Benchmark Administration Limited plus 0.10% | |
MidCap Credit Agreement [Member] | Term Loans [Member] | ||
Line Of Credit Facility [Line Items] | ||
Secured term loan facilities, borrowing capacity | $ 75,000,000 | |
Debt instrument, basis spread on variable rate | 5.75% | |
MidCap Credit Agreement, exit fee | 2.50% | |
MidCap Credit Agreement [Member] | Term Loans [Member] | Minimum [Member] | ||
Line Of Credit Facility [Line Items] | ||
Secured term loan facilities, borrowing capacity | $ 10,000,000 | |
MidCap Credit Agreement [Member] | Term Loans [Member] | Minimum [Member] | Secured Overnight Financing Rate [Member] | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, variable rate floor | 1.50% | |
MidCap Credit Agreement [Member] | Term Loans [Member] | Minimum [Member] | Rolling-four-quarter Core Net Revenue [Member] | ||
Line Of Credit Facility [Line Items] | ||
MidCap Credit Agreement, minimum rolling-four-quarter core net revenue | $ 60,000,000 | |
MidCap Credit Agreement [Member] | Term Loans [Member] | Tranche 1 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Secured term loan facilities, borrowing capacity | 25,000,000 | |
Secured term loan facilities, proceeds at closing | 25,000,000 | |
Repayments of lines of credit | 10,000,000 | |
MidCap Credit Agreement [Member] | Term Loans [Member] | Tranche 2 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Secured term loan facilities, borrowing capacity | 50,000,000 | |
MidCap Credit Agreement [Member] | Term Loans [Member] | Tranche 2 [Member] | Minimum [Member] | Rolling-four-quarter Core Net Revenue [Member] | ||
Line Of Credit Facility [Line Items] | ||
Secured term loan facilities, borrowing capacity | 25,000,000 | |
MidCap Credit Agreement [Member] | Term Loans [Member] | Additional Tranche [Member] | Maximum [Member] | ||
Line Of Credit Facility [Line Items] | ||
Secured term loan facilities, borrowing capacity | $ 25,000,000 | |
MidCap Credit Agreement [Member] | Term Loans [Member] | Midcap Event Of Default [Member] | Midcap Revolving Credit Facility [Member] | ||
Line Of Credit Facility [Line Items] | ||
MidCap Credit Agreement, interest rate premium upon event of default | 2% | |
MidCap Credit Agreement [Member] | Term Loans [Member] | Year One [Member] | ||
Line Of Credit Facility [Line Items] | ||
Prepayment penalty | 3% | |
MidCap Credit Agreement [Member] | Term Loans [Member] | Year Two [Member] | ||
Line Of Credit Facility [Line Items] | ||
Prepayment penalty | 2% | |
MidCap Credit Agreement [Member] | Term Loans [Member] | Year Three [Member] | ||
Line Of Credit Facility [Line Items] | ||
Prepayment penalty | 1% | |
MidCap Credit Agreement [Member] | Revolving Credit Facility [Member] | ||
Line Of Credit Facility [Line Items] | ||
Revolving credit facility, maximum borrowing capacity | $ 25,000,000 | |
Debt instrument, basis spread on variable rate | 3% | |
Revolving credit facility, minimum borrowing as percentage of availability | 20% | |
Percentage of annual collateral management fee | 0.50% | |
Percentage of annual minimum balance fee | 0.50% | |
Percentage of annual unused line fee | 0.50% | |
MidCap Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Secured Overnight Financing Rate [Member] | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, variable rate floor | 1.50% | |
MidCap Credit Agreement [Member] | Revolving Credit Facility [Member] | Tranche 1 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Revolving credit facility, proceeds at closing | $ 5,000,000 | |
MidCap Credit Agreement [Member] | Revolving Credit Facility [Member] | Year One [Member] | ||
Line Of Credit Facility [Line Items] | ||
Prepayment penalty | 3% | |
MidCap Credit Agreement [Member] | Revolving Credit Facility [Member] | Year Two [Member] | ||
Line Of Credit Facility [Line Items] | ||
Prepayment penalty | 2% | |
MidCap Credit Agreement [Member] | Revolving Credit Facility [Member] | Year Three [Member] | ||
Line Of Credit Facility [Line Items] | ||
Prepayment penalty | 1% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - Term Loans [Member] $ in Millions | 9 Months Ended |
Jun. 30, 2023 USD ($) | |
Derivative [Line Items] | |
Notional amount | $ 25 |
Fixed interest | 10.205% |
Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Notional amount | $ 25 |
Expiry date | Oct. 01, 2027 |
Fixed interest | 4.455% |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Net Fair Value of Designated Hedge Derivatives Subject to Master Netting Arrangements Reported on Condensed Consolidated Balance Sheets (Detail) - Interest Rate Swap [Member] $ in Thousands | Jun. 30, 2023 USD ($) |
Offsetting Assets [Line Items] | |
Gross Recognized Amount | $ (160) |
Net Amount Presented | (160) |
Cash Collateral Receivable | 545 |
Net Amount Reported | $ 385 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Assets Noncurrent |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Pretax Amounts Recognized in AOCL on Interest Rate Swap (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) recognized in other comprehensive income (loss) | $ 607 | $ (141) |
Net (gain) loss reclassified into interest expense | (39) | (19) |
Ending unrealized net gain (loss) in AOCL | $ 568 | $ (160) |
Stock-based Compensation Plan_2
Stock-based Compensation Plans - Stock-based Compensation Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,915 | $ 1,799 | $ 5,662 | $ 5,198 |
Product costs [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 63 | 62 | 202 | 170 |
Research and development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 353 | 355 | 1,056 | 1,086 |
Selling, general and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,499 | $ 1,382 | $ 4,404 | $ 3,942 |
Stock-based Compensation Plan_3
Stock-based Compensation Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Stock-Based Compensation Activity [Line Items] | ||
Unrecognized compensation costs, nonvested awards, amount | $ 12.5 | |
Unrecognized compensation costs, nonvested awards, weighted average recognition period | 2 years 3 months 18 days | |
Restricted Stock Awards [Member] | ||
Stock-Based Compensation Activity [Line Items] | ||
Units granted | 102,000 | 90,000 |
Weighted average grant date fair value | $ 35.84 | $ 43.02 |
Restricted Stock Unit Awards [Member] | ||
Stock-Based Compensation Activity [Line Items] | ||
Units granted | 16,000 | 14,000 |
Weighted average grant date fair value | $ 31.72 | $ 42.79 |
Employee Stock Purchase Plan [Member] | ||
Stock-Based Compensation Activity [Line Items] | ||
Shares issued | 23,000 | 10,000 |
Stock-based Compensation Plan_4
Stock-based Compensation Plans - Summary of Stock Option Grant Activity (Detail) - Stock Option Awards [Member] - $ / shares | 9 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock options granted | 305,000 | 312,000 |
Weighted average grant date fair value | $ 15.03 | $ 16.11 |
Weighted average exercise price | $ 34.79 | $ 42.78 |
Net Income (Loss) Per Share D_3
Net Income (Loss) Per Share Data - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.1 | 0.1 | 0.1 | |
Maximum [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.1 |
Net Income (Loss) Per Share D_4
Net Income (Loss) Per Share Data - Denominator for Computation of Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding | 14,050 | 13,929 | 14,020 | 13,907 |
Dilutive effect of outstanding stock options, non-vested restricted stock, and non-vested restricted stock units | 22 | |||
Diluted weighted average shares outstanding | 14,072 | 13,929 | 14,020 | 13,907 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Income Tax Disclosure [Line Items] | |||||
Income tax (expense) benefit | $ (13,303,000) | $ 1,530,000 | $ (13,506,000) | $ 3,155,000 | |
U.S. federal statutory tax rate | 21% | ||||
valuation allowance percentage | 50% | 50% | |||
Unrecognized tax benefits excluding interest and penalties that would impact effective tax rate | $ 3,100,000 | $ 3,100,000 | $ 2,500,000 | ||
Undistributed earnings in foreign subsidiaries | 0 | 0 | $ 0 | ||
Maximum [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Discrete tax benefits related to stock-based compensation awards | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 6 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | |||
Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2018 | Sep. 30, 2024 | |
Vetex Medical Limited [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Cash paid | $ 39,900,000 | ||||||
Deferred consideration, contractual value | $ 3,500,000 | ||||||
Installment payment beginning period | 2024 | ||||||
Installment payment ending period | 2027 | ||||||
Contingent consideration, contractual value | $ 3,500,000 | ||||||
Contingency period ending year | 2027 | ||||||
Embolitech LLC [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Contingent payments upon achievement of regulatory milestones | $ 1,000,000 | ||||||
Installment payment period | 2024 | ||||||
CRO [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Contractual obligation remaining to be paid | $ 2,000,000 | ||||||
CRO [Member] | Minimum [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Gross contractual obligation | 37,000,000 | ||||||
CRO [Member] | Maximum [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Gross contractual obligation | 40,000,000 | ||||||
CRO [Member] | Maximum [Member] | CRO Pass-through Expenses [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Gross contractual obligation | $ 30,000,000 | ||||||
In Process Research and Development | Embolitech LLC [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Contingency period ending year | 2033 | ||||||
Payments to acquire in-process research and development | $ 1,000,000 | $ 500,000 | $ 1,000,000 | $ 1,000,000 | $ 5,000,000 | ||
In Process Research and Development | Embolitech LLC [Member] | Forecast [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Contractual obligation payable in fiscal 2022 through fiscal 2024 | $ 1,000,000 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ in Thousands | 9 Months Ended |
Jun. 30, 2023 USD ($) | |
Restructuring and Related Activities [Abstract] | |
Restructuring expense | $ 1,282 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Expense Accruals included in Accrued and Other Liabilities (Detail) $ in Thousands | 9 Months Ended |
Jun. 30, 2023 USD ($) | |
Restructuring and Related Activities [Abstract] | |
Restructuring expense | $ 1,282 |
Payments | (1,259) |
Restructuring expense accruals as of March 31, 2023 | $ 23 |
Segment Information - Segment R
Segment Information - Segment Revenue, Operating income (loss) and Depreciation and Amortization (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 52,483 | $ 24,854 | $ 104,614 | $ 73,963 |
Total operating income (loss) | 21,412 | (7,143) | 7,600 | (15,484) |
Depreciation and amortization | 2,151 | 2,206 | 6,365 | 6,902 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 52,483 | 24,854 | 104,614 | 73,963 |
Total operating income (loss) | 24,643 | (3,921) | 16,933 | (6,450) |
Operating Segments [Member] | Medical Device [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 46,014 | 17,528 | 84,739 | 52,889 |
Total operating income (loss) | 21,777 | (7,308) | 7,483 | (16,712) |
Depreciation and amortization | 1,997 | 2,020 | 5,883 | 6,347 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 6,469 | 7,326 | 19,875 | 21,074 |
Total operating income (loss) | 2,866 | 3,387 | 9,450 | 10,262 |
Depreciation and amortization | 78 | 88 | 230 | 260 |
Corporate Non Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | (3,231) | (3,222) | (9,333) | (9,034) |
Depreciation and amortization | $ 76 | $ 98 | $ 252 | $ 295 |