Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2022 | Jul. 25, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | 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, $0.05 par value | |
Entity File Number | 0-23837 | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-1356149 | |
Entity Address, Address Line One | 9924 West 74th Street | |
Entity Address, City or Town | Eden Prairie | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55344 | |
City Area Code | 952 | |
Local Phone Number | 500-7000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 14,005,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 20,074 | $ 31,153 |
Available-for-sale securities | 2,012 | 7,717 |
Accounts receivable, net of allowances of $84 and $119 as of June 30, 2022 and September 30, 2021, respectively | 9,382 | 9,169 |
Contract assets — royalties and license fees | 7,584 | 7,091 |
Inventories, net | 10,926 | 6,760 |
Income tax receivable | 2,409 | 1,912 |
Prepaids and other | 7,648 | 6,453 |
Total Current Assets | 60,035 | 70,255 |
Property and equipment, net | 28,289 | 30,090 |
Available-for-sale securities | 2,002 | |
Deferred income taxes | 8,479 | 5,867 |
Intangible assets, net | 30,752 | 37,054 |
Goodwill | 42,590 | 45,606 |
Other assets | 5,507 | 3,718 |
Total Assets | 175,652 | 194,592 |
Current Liabilities: | ||
Accounts payable | 1,928 | 1,783 |
Accrued liabilities: | ||
Compensation | 7,595 | 8,480 |
Accrued other | 5,857 | 4,905 |
Short-term borrowings | 10,000 | 10,000 |
Deferred revenue | 4,007 | 4,647 |
Total Current Liabilities | 29,387 | 29,815 |
Deferred revenue, less current portion | 7,402 | 10,301 |
Deferred income taxes | 2,227 | 2,742 |
Other long-term liabilities | 11,524 | 11,649 |
Total Liabilities | 50,540 | 54,507 |
Commitments and Contingencies (Note 10) | ||
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; 13,999 and 13,899 shares issued and outstanding as of June 30, 2022 and September 30, 2021, respectively | 700 | 695 |
Additional paid-in capital | 26,612 | 21,598 |
Accumulated other comprehensive (loss) income | (5,719) | 1,727 |
Retained earnings | 103,519 | 116,065 |
Total Stockholders’ Equity | 125,112 | 140,085 |
Total Liabilities and Stockholders’ Equity | $ 175,652 | $ 194,592 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Statement Of Financial Position [Abstract] | ||
Allowances (accounts receivable) | $ 84 | $ 119 |
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 | 13,999,000 | 13,899,000 |
Common stock, shares outstanding | 13,999,000 | 13,899,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue: | ||||
Total revenue | $ 24,854 | $ 23,873 | $ 73,963 | $ 81,165 |
Operating costs and expenses: | ||||
Cost, Product and Service [Extensible Enumeration] | Product Sales [Member] | Product Sales [Member] | Product Sales [Member] | Product Sales [Member] |
Product costs | $ 5,141 | $ 5,105 | $ 14,745 | $ 13,018 |
Research and development | 12,975 | 12,246 | 38,350 | 36,003 |
Selling, general and administrative | 12,854 | 7,885 | 33,159 | 22,815 |
Acquired intangible asset amortization | 1,024 | 560 | 3,184 | 1,676 |
Acquisition transaction, integration and other costs | 461 | 461 | ||
Contingent consideration expense | 3 | 9 | ||
Total operating costs and expenses | 31,997 | 26,257 | 89,447 | 73,973 |
Operating (loss) income | (7,143) | (2,384) | (15,484) | 7,192 |
Other expense: | ||||
Investment income, net | 22 | 26 | 73 | 95 |
Interest expense | (145) | (59) | (410) | (178) |
Foreign exchange gain (loss) | 85 | (94) | 120 | (201) |
Other expense | (38) | (127) | (217) | (284) |
(Loss) income before income taxes | (7,181) | (2,511) | (15,701) | 6,908 |
Income tax benefit (provision) | 1,530 | (776) | 3,155 | (2,382) |
Net (loss) income | $ (5,651) | $ (3,287) | $ (12,546) | $ 4,526 |
Basic net loss (income) per share | $ (0.41) | $ (0.24) | $ (0.90) | $ 0.33 |
Diluted net loss (income) per share | $ (0.41) | $ (0.24) | $ (0.90) | $ 0.32 |
Weighted average number of shares outstanding: | ||||
Basic | 13,929 | 13,837 | 13,907 | 13,740 |
Diluted | 13,929 | 13,837 | 13,907 | 13,959 |
Product Sales [Member] | ||||
Revenue: | ||||
Total revenue | $ 13,919 | $ 12,084 | $ 40,227 | $ 33,969 |
Royalties and License Fees [Member] | ||||
Revenue: | ||||
Total revenue | 8,795 | 8,796 | 26,738 | 38,182 |
Research, Development and Other [Member] | ||||
Revenue: | ||||
Total revenue | $ 2,140 | $ 2,993 | $ 6,998 | $ 9,014 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (5,651) | $ (3,287) | $ (12,546) | $ 4,526 |
Other comprehensive (loss) income: | ||||
Net changes related to available-for-sale securities, net of tax | 4 | 4 | (7) | (3) |
Foreign currency translation adjustments | (4,289) | 524 | (7,439) | 588 |
Other comprehensive (loss) income | (4,285) | 528 | (7,446) | 585 |
Comprehensive (loss) income | $ (9,936) | $ (2,759) | $ (19,992) | $ 5,111 |
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, 2020 | $ 131,055 | $ 684 | $ 15,369 | $ 3,174 | $ 111,828 |
Beginning balance, shares at Sep. 30, 2020 | 13,672 | ||||
Net (loss) income | 4,526 | 4,526 | |||
Other comprehensive income (loss), net of tax | 585 | 585 | |||
Issuance of common stock | 297 | $ 5 | 292 | ||
Issuance of common stock ,shares | 91 | ||||
Common stock options exercised, net | 2,330 | $ 6 | 2,324 | ||
Common stock option exercise ,shares | 127 | ||||
Purchase of common stock to pay employee taxes | (2,279) | $ (1) | (2,278) | ||
Purchase of common stock to pay employee taxes ,shares | (18) | ||||
Stock-based compensation | 4,318 | 4,318 | |||
Ending balance at Jun. 30, 2021 | 140,832 | $ 694 | 20,025 | 3,759 | 116,354 |
Ending balance ,shares at Jun. 30, 2021 | 13,872 | ||||
Beginning balance at Mar. 31, 2021 | 142,081 | $ 693 | 18,516 | 3,231 | 119,641 |
Beginning balance, shares at Mar. 31, 2021 | 13,868 | ||||
Net (loss) income | (3,287) | (3,287) | |||
Other comprehensive income (loss), net of tax | 528 | 528 | |||
Issuance of common stock | 1 | $ 1 | |||
Issuance of common stock ,shares | 2 | ||||
Common stock options exercised, net | 90 | 90 | |||
Common stock option exercise ,shares | 2 | ||||
Purchase of common stock to pay employee taxes | (37) | (37) | |||
Stock-based compensation | 1,456 | 1,456 | |||
Ending balance at Jun. 30, 2021 | 140,832 | $ 694 | 20,025 | 3,759 | 116,354 |
Ending balance ,shares at Jun. 30, 2021 | 13,872 | ||||
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 (loss) income | (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 (loss) income | (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 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Activities: | ||
Net (loss) income | $ (12,546) | $ 4,526 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 6,902 | 5,610 |
Stock-based compensation | 5,198 | 4,318 |
Noncash lease expense | 371 | 223 |
Provision for credit losses | 8 | (11) |
Deferred taxes | (2,996) | 947 |
Other | 257 | 37 |
Change in operating assets and liabilities: | ||
Accounts receivable and contract assets | (847) | (1,809) |
Inventories | (4,167) | (338) |
Prepaids and other | (1,998) | (59) |
Accounts payable | 349 | (27) |
Accrued liabilities | (1,039) | (435) |
Income taxes | (676) | 1,327 |
Deferred revenue | (3,539) | 191 |
Net cash (used in) provided by operating activities | (14,723) | 14,500 |
Investing Activities: | ||
Purchases of property and equipment | (2,798) | (2,874) |
Payment for acquisition of intangible assets | (1,000) | |
Purchases of available-for-sale securities | (22,799) | |
Maturities of available-for-sale securities | 7,600 | 43,317 |
Net cash provided by investing activities | 4,802 | 16,644 |
Financing Activities: | ||
Issuance of common stock | 763 | 2,627 |
Payments for taxes related to net share settlement of equity awards | (936) | (2,279) |
Payments for acquisition of in-process research and development | (500) | (150) |
Net cash (used in) provided by financing activities | (673) | 198 |
Effect of exchange rate changes on cash | (485) | 50 |
Net change in cash and cash equivalents | (11,079) | 31,392 |
Cash and Cash Equivalents: | ||
Beginning of period | 31,153 | 30,785 |
End of period | 20,074 | 62,177 |
Supplemental Information: | ||
Cash paid for income taxes | 395 | 35 |
Cash paid for interest | 256 | |
Noncash investing and financing activities: | ||
Acquisition of property and equipment, net of refundable credits in other current assets and liabilities | 90 | 345 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,732 | $ 234 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Overview Surmodics, Inc. and subsidiaries (“Surmodics,” the “Company,” “we,” “us,” “our” and other like terms) is a leading provider of surface modification technologies for intravascular medical devices and chemical components for in vitro diagnostic (“IVD”) immunoassay tests and microarrays. Surmodics is pursuing development and commercialization of highly differentiated 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 technologies, along with enhanced device design, development, and manufacturing capabilities. The Company mission remains to improve the detection and treatment of disease. Surmodics is headquartered in Eden Prairie, Minnesota. Basis of Presentation 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, 2021, and notes thereto included in our Annual Report on Form 10-K as filed with the SEC. 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 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, 2022 are not necessarily indicative of the results that may be expected for the entire 2022 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, 2022 | |
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) 2022 2021 2022 2021 Medical Device Product sales $ 6,741 $ 5,493 $ 19,970 $ 15,464 Royalties 7,771 7,752 23,015 23,135 License fees 1,024 1,044 3,723 15,047 Research, development and other 1,992 2,466 6,181 7,212 Medical Device Revenue 17,528 16,755 52,889 60,858 In Vitro Diagnostics Product sales 7,178 6,591 20,257 18,505 Research, development and other 148 527 817 1,802 In Vitro Diagnostics Revenue 7,326 7,118 21,074 20,307 Total Revenue $ 24,854 $ 23,873 $ 73,963 $ 81,165 Contract assets totaled $7.6 million and $7.1 million as of June 30, 2022 and September 30, 2021, 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, 2022 | |
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 SurVeil Surmodics is responsible for conducting all necessary clinical trials and other activities required to achieve U.S. regulatory clearance for the SurVeil SurVeil SurVeil As of June 30, 2022, the Company has received payments totaling $60.8 million under the Abbott Agreement, which consist 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, and (iv) $15 million milestone payment in the second quarter of fiscal 2021. As of June 30, 2022, the Company may receive an additional contingent milestone payment upon PMA of our SurVeil Revenue recognized from the Abbott agreement totaled $1.0 million for both the three months ended June 30, 2022 and 2021 and $3.6 million and $14.8 million for the nine months ended June 30, 2022 and 2021, 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 $3.6 As of June 30, 2022 and September 30, 2021 , deferred revenue on the condensed consolidated balance sheets included $ 11.3 million and $ million, respectively , related to payments received under the Abbott Agreement. The $ 11.3 deferred revenue as of June 30, 2022 , 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 four years through fiscal 2025 as services, principally the TRANSCEND clinical trial, are completed. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements Assets measured at fair value on a recurring basis by level of the fair value hierarchy were as follows: June 30, 2022 (In thousands) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Assets Cash equivalents (1) $ — $ 16 $ — $ 16 Available-for-sale securities (1) — 2,012 — 2,012 Total assets $ — $ 2,028 $ — $ 2,028 Liabilities Contingent consideration (2) $ — $ — $ 826 $ 826 Total liabilities $ — $ — $ 826 $ 826 September 30, 2021 (In thousands) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Assets Cash equivalents (1) $ — $ 5,308 $ — $ 5,308 Available-for-sale investments (1) — 9,719 — 9,719 Total assets $ — $ 15,027 $ — $ 15,027 Liabilities Contingent consideration (2) $ — $ — $ 817 $ 817 Total liabilities $ — $ — $ 817 $ 817 (1) Fair value of cash equivalents (money market funds) and available-for-sale investments (commercial paper and corporate bond securities) is based on quoted vendor prices and broker pricing where all significant inputs are observable. (2) 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 the acquisition date and as of both June 30, 2022 and September 30, 2021. 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 expense (gain) 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, 2021 $ 817 Additions — Fair value adjustments — Settlements — Interest accretion 9 Foreign currency translation — Contingent consideration liability at June 30, 2022 $ 826 Contingent consideration liabilities were associated with the fiscal 2021 acquisition of Vetex Medical Limited and were included in other long-term liabilities on the condensed consolidated balance sheets; see Note 11 Acquisitions for further disclosures. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Jun. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | 5. Supplemental Balance Sheet Information Investments The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities were as follows: June 30, 2022 Valuation Balance Sheet Classification (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Current Assets Noncurrent Assets Commercial paper and corporate bonds $ 2,018 $ — $ (6 ) $ 2,012 $ 2,012 $ — Total $ 2,018 $ — $ (6 ) $ 2,012 $ 2,012 $ — September 30, 2021 Valuation Balance Sheet Classification (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Current Assets Noncurrent Assets Commercial paper and corporate bonds $ 9,718 $ 2 $ (1 ) $ 9,719 $ 7,717 $ 2,002 Total $ 9,718 $ 2 $ (1 ) $ 9,719 $ 7,717 $ 2,002 Inventories Inventories consisted of the following components: June 30, September 30, (In thousands) 2022 2021 Raw materials $ 6,252 $ 4,165 Work-in process 1,943 1,295 Finished products 2,731 1,300 Total $ 10,926 $ 6,760 Prepaids and Other Assets, Current Prepaids and other current assets consisted of the following: June 30, September 30, (In thousands) 2022 2021 Prepaid expenses $ 3,208 $ 1,712 Irish research and development credits receivable 1,006 1,164 CARES Act employee retention credit receivable 3,434 3,577 Prepaids and other $ 7,648 $ 6,453 In the fourth quarter of fiscal 2021, a benefit of $3.6 million was recorded to reduce operating costs and expenses 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") enacted in March 2020. This benefit and corresponding receivable reflected anticipated reimbursement of personnel expenses we incurred in fiscal 2021 and 2020. Intangible Assets Intangible assets consisted of the following: June 30, 2022 (In thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 12,032 $ (9,039 ) $ 2,993 Developed technology 11.9 33,613 (7,565 ) 26,048 Patents and other 14.1 3,551 (2,420 ) 1,131 Total definite-lived intangible assets 49,196 (19,024 ) 30,172 Unamortized intangible assets: Trademarks and trade names 580 — 580 Total intangible assets $ 49,776 $ (19,024 ) $ 30,752 September 30, 2021 (In thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 13,216 $ (8,878 ) $ 4,338 Developed technology 11.9 36,531 (5,652 ) 30,879 Patents and other 14.1 3,551 (2,294 ) 1,257 Total definite-lived intangible assets 53,298 (16,824 ) 36,474 Unamortized intangible assets: Trademarks and trade names 580 — 580 Total intangible assets $ 53,878 $ (16,824 ) $ 37,054 Intangible asset amortization expense was $1.1 million and $0.6 million for the three months ended June 30, 2022 and 2021, respectively, and $3.4 million and $1.9 million for the nine months ended June 30, 2022 and 2021, respectively. Based on the intangible assets in service as of June 30, 2022, estimated amortization expense for future fiscal years is as follows: (In thousands) Remainder of 2022 $ 1,063 2023 3,739 2024 3,656 2025 3,622 2026 2,754 2027 2,510 Thereafter 12,828 Definite-lived intangible assets $ 30,172 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 Diagnostics Medical Device Total Goodwill as of September 30, 2021 $ 8,010 $ 37,596 $ 45,606 Currency translation adjustment — (3,293 ) (3,293 ) Measurement period adjustment (1) — 277 277 Goodwill as of June 30, 2022 $ 8,010 $ 34,580 $ 42,590 (1) During the third quarter of fiscal 2022, measurement period adjustments were recorded to finalize the allocation of purchase consideration for the fiscal 2021 Vetex acquisition (Note 11). Other Assets, Noncurrent Other noncurrent assets consisted of the following: June 30, September 30, (In thousands) 2022 2021 Operating lease right-of-use assets $ 3,796 $ 2,435 Other 1,711 1,283 Other assets $ 5,507 $ 3,718 Other noncurrent assets include 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) 2022 2021 Accrued professional fees $ 370 $ 489 Accrued clinical study expense 1,876 1,667 Accrued purchases 1,198 1,195 Acquisition of in-process research and development (1) 975 494 Operating lease liability, current portion 897 518 Other 541 542 Total accrued other liabilities $ 5,857 $ 4,905 (1) Acquisition of in-process research and development consists of the present value of guaranteed payments to be made (current portion) in connection with an asset acquisition in fiscal 2018 (Note 10). Other Long-term Liabilities Other long-term liabilities consisted of the following: June 30, September 30, (In thousands) 2022 2021 Deferred consideration (1) $ 4,235 $ 5,106 Contingent consideration (2) 826 817 Unrecognized tax benefits (3) 2,359 2,538 Operating lease liabilities (4) 4,104 3,188 Other long-term liabilities $ 11,524 $ 11,649 (1) Deferred consideration consists of the present value of guaranteed payments to be made (noncurrent portion) in connection with the fiscal 2021 Vetex acquisition (Note 11) and with an asset acquisition in fiscal 2018 (Note 10). (2) Contingent consideration consists of the fair value of contingent consideration liabilities associated with the fiscal 2021 Vetex acquisition (Note 11). (3) Balance of unrecognized tax benefits (Note 9) includes accrued interest and penalties, if applicable. (4) Operating lease liabilities consist 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, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt On September 14, 2020, the Company entered into a secured revolving credit facility pursuant to a Loan and Security Agreement, which was amended by a First Amendment on July 2, 2021 and by a Second Amendment on March 7, 2022 (as amended, the "Loan Agreement") with Bridgewater Bank (“Bridgewater”). The Loan Agreement provides for availability under a secured revolving line of credit of up to $25 million (the "Revolving Credit Facility"). The outstanding balance on the Revolving Credit Facility was $10.0 million as of both June 30, 2022 and September 30, 2021. The Revolving Credit Facility was scheduled to mature on September 14, 2021, but the Company extended the maturity to September 14, 2022, as permitted under the Loan Agreement. The maturity date may be extended by the Company for up to one additional extension period of twelve months subject to certain conditions set forth in the Loan Agreement. The Company's obligations under the Loan Agreement are secured by substantially all of the Company’s and its material subsidiaries' assets, other than intellectual property, real estate and foreign assets, including equity in foreign subsidiaries. The Company has also pledged the stock of certain of its subsidiaries to secure such obligations. Interest under the Loan Agreement accrues at a rate per annum equal to the greater of (i) 3.25% per annum and (ii) the 90-day interest rate yield for U.S. Government Treasury Securities plus 2.75% per annum. A facility fee is payable on unused commitments at a rate of 0.075% quarterly. As of June 30, 2022 and September 30, 2021, the weighted average interest rate on outstanding borrowings on the Revolving Credit Facility was 4.5% and 3.3%, respectively. Unused commitment fees, reported within interest expense on the condensed consolidated statements of operations, totaled zero and less than $0.1 million for the nine months ended June 30, 2022 and 2021, respectively. The Loan Agreement contains affirmative and negative covenants customary for a facility of this type which, among other things, require the Company to meet certain financial tests, including (i) minimum liquidity, (ii) minimum current ratio, (iii) minimum quarterly revenue, and (iv) minimum tangible net worth. The Loan Agreement also contains covenants which, among other things, limit the Company's ability to incur additional debt, make certain investments, create or permit certain liens, create or permit restrictions on the ability of subsidiaries to pay dividends or make other distributions, consolidate or merge, and engage in other activities customarily restricted in such agreements, in each case subject to exceptions permitted by the Loan Agreement. The Loan Agreement also contains customary events of default, the occurrence of which would permit Bridgewater to terminate its commitment and accelerate the Revolving Credit Facility. |
Stock-based Compensation Plans
Stock-based Compensation Plans | 9 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation Plans | 7. 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 Nine Months Ended June 30, June 30, (In thousands) 2022 2021 2022 2021 Product costs $ 62 $ 23 $ 170 $ 92 Research and development 355 329 1,086 918 Selling, general and administrative 1,382 1,104 3,942 3,308 Total $ 1,799 $ 1,456 $ 5,198 $ 4,318 As of June 30, 2022, unrecognized compensation costs related to non-vested awards totaled approximately $11.7 million, which is expected to be recognized over a weighted average period of approximately 2.4 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, 2022 2021 Stock option grant activity: Stock options granted 312,000 244,000 Weighted average grant date fair value $ 16.11 $ 14.08 Weighted average exercise price $ 42.78 $ 39.24 Restricted Stock Awards During the nine months ended June 30, 2022 and 2021, the Company awarded 90,000 and 68,000 restricted stock shares, respectively, to certain key employees and officers with a weighted average grant date fair value per share of $43.02 and $38.06, respectively. Restricted Stock is valued based on the market value of the shares as of the date of grant. Restricted Stock Unit Awards During the nine months ended June 30, 2022 and 2021, the Company awarded 14,000 and 12,000 restricted stock units, respectively, (“RSUs”) to directors and to key employees in foreign jurisdictions with a weighted average grant date fair value per unit of $42.79 and $45.13, 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, 2022 and 2021, 10,000 and 8,000 shares were issued under the ESPP, respectively. |
Net (Loss) Income Per Share Dat
Net (Loss) Income Per Share Data | 9 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share Data | 8. Net (Loss) Income Per Share Data Basic net (loss) income per common share is calculated by dividing net (loss) income by the weighted average number of common shares outstanding during the period. Diluted net (loss) income per common share is computed by dividing net (loss) income 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. However, these items have been excluded from the calculation of diluted net loss per share for the three and nine months ended June 30, 2022 and for the three months ended June 20, 2021 as their effect was anti-dilutive as a result of the net loss incurred for those periods. Therefore, diluted weighted average number of shares outstanding and diluted net loss per share were the same as basic weighted average number of shares outstanding and net loss per share for the three and nine months ended June 30, 2022 and for the three months ended June 30, 2021. The following table presents the denominator for the computation of diluted weighted average shares outstanding: Three Months Ended Nine Months Ended June 30, June 30, (In thousands) 2022 2021 2022 2021 Basic weighted average shares outstanding 13,929 13,837 13,907 13,740 Dilutive effect of outstanding stock options, non-vested restricted stock, and non-vested restricted stock units — — — 219 Diluted weighted average shares outstanding 13,929 13,837 13,907 13,959 The calculation of weighted average diluted shares outstanding excludes outstanding stock options associated with the right to purchase less than 0.1 million shares of common stock for the nine months ended June 30, 2021, as their inclusion would have had an antidilutive effect on diluted net income per share for those periods. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes For interim income tax reporting, the Company estimates its annual effective tax rate and applies it to fiscal year-to-date pretax (loss) income, excluding unusual or infrequently occurring discrete items. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded. The Company reported income tax benefit of $1.5 million and income tax expense of $(0.8) million for the three months ended June 30, 2022 and 2021, respectively, and income tax benefit of $3.2 The effective income tax rate for the three and nine months ended June 30, 2022 and 2021 differs from the U.S. federal statutory tax rate of 21% primarily due to favorable impacts of the U.S. federal research and development tax credits, operating results of one of our Irish subsidiaries for which tax benefit is offset by a valuation allowance, and the effects of equity compensation. The Company recognized discrete tax benefits related to stock-based compensation awards vested, expired, cancelled and exercised of less than $0.1 million for both the three months ended June 30, 2022 and 2021 and $0.1 million and $0.7 million for the nine months ended June 30, 2022 and 2021, respectively. The total amount of unrecognized tax benefits, excluding interest and penalties that, if recognized, would affect the effective tax rate was $3.0 million and $2.7 million as of June 30, 2022 and September 30, 2021, respectively. Interest and penalties related to unrecognized tax benefits are recorded in the income tax benefit (provision). 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 the second quarter of fiscal 2022; the examination has not been completed. U.S. federal income tax returns for years prior to fiscal 2018 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 2011. For tax returns for non-U.S. jurisdictions, the Company is no longer subject to income tax examination for years prior to 2017. Additionally, the Company has been indemnified of liability for any taxes relating to Creagh Medical, NorMedix 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, 2022 and September 30, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. 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 has executed separate contracts with two CROs for services rendered in connection with the TRANSCEND pivotal clinical trial for the DCB, including pass-through expenses paid by the CROs, of up to approximately $30 million in the aggregate. As of June 30, 2022, an estimated $8 million remains to be paid on 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 the first quarter of fiscal 2021, and $0.5 million in the second quarter of fiscal 2022. The Company is obligated to pay additional installments totaling $2.0 million in fiscal 2023 through fiscal 2024. These payments 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. Business Combinations. See Note 11 Acquisitions for disclosure of the fiscal 2021 acquisition of Vetex Medical Limited and associated deferred and contingent consideration liabilities. |
Acquisitions
Acquisitions | 9 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | 11. Acquisitions Vetex Medical Limited On July 2, 2021, Surmodics acquired all of the outstanding shares of Vetex Medical Limited (“Vetex”). Vetex, which was formerly privately held and is based in Galway, Ireland, develops and manufactures medical devices focused on venous clot removal solutions. The transaction expanded Surmodics’ thrombectomy portfolio with a second FDA 510(k)-cleared device, a mechanical venous thrombectomy device. The acquisition was accounted for as a business combination. The acquired assets, liabilities and operating results of Vetex have been included on our condensed consolidated financial statements within the Medical Device segment from the date of acquisition. Surmodics acquired Vetex with an upfront cash payment of $39.9 million funded using cash on hand and $10.0 million from the Revolving Credit Facility. 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. The acquisition date fair value of purchase consideration was as follows: (In thousands) Consideration paid at closing $ 39,985 Deferred consideration 3,257 Contingent consideration 814 Total purchase consideration 44,056 Less: Cash acquired (432 ) Total purchase consideration, net of cash acquired $ 43,624 The fair value of contingent consideration was derived using a discounted cash flow approach based on Level 3 inputs. See Note 4 Fair Value Measurements for additional disclosures regarding contingent consideration. The final allocation of purchase consideration as of the acquisition date was as follows: (In thousands) Asset (Liability) Current assets $ 18 Property and equipment 37 Intangible assets 27,600 Other non-current assets 37 Accrued compensation (236 ) Other accrued liabilities (111 ) Deferred income taxes (3,087 ) Net assets acquired 24,258 Goodwill 19,366 Total purchase consideration, net of cash acquired $ 43,624 During the third quarter of fiscal 2022, the Company recorded measurement adjustments to provisional amounts previously recognized, which resulted in a $0.3 Acquired intangible assets consist of developed technology. We used the income approach, specifically the discounted cash flow method and the incremental cash flow approach using Level 3 inputs, to derive the fair value of the developed technology. The developed technology is amortized on a straight-line basis over its estimated useful life of 12 years. The amortization of the acquired intangible assets is tax deductible. The goodwill recorded from the Vetex acquisition is a result of expected synergies from integrating the Vetex business into the Company’s Medical Device segment and from acquiring and retaining the existing Vetex workforce. The goodwill is not deductible for tax purposes. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | 12. Segment Information Segment revenue, operating (loss) income, and depreciation and amortization were as follows: Three Months Ended Nine Months Ended June 30, June 30, (In thousands) 2022 2021 2022 2021 Revenue: Medical Device $ 17,528 $ 16,755 $ 52,889 $ 60,858 In Vitro Diagnostics 7,326 7,118 21,074 20,307 Total revenue $ 24,854 $ 23,873 $ 73,963 $ 81,165 Operating (loss) income: Medical Device $ (7,308 ) $ (2,491 ) $ (16,712 ) $ 5,480 In Vitro Diagnostics 3,387 3,378 10,262 10,407 Total segment operating (loss) income (3,921 ) 887 (6,450 ) 15,887 Corporate (3,222 ) (3,271 ) (9,034 ) (8,695 ) Total operating (loss) income $ (7,143 ) $ (2,384 ) $ (15,484 ) $ 7,192 Depreciation and amortization: Medical Device $ 2,020 $ 1,631 $ 6,347 $ 5,004 In Vitro Diagnostics 88 121 260 314 Corporate 98 92 295 292 Total depreciation and amortization $ 2,206 $ 1,844 $ 6,902 $ 5,610 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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. |
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 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, 2022 are not necessarily indicative of the results that may be expected for the entire 2022 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. |
Collaborative Arrangement | To account for the Abbott Agreement, the Company applied the guidance in ASC Topic 808 (Collaborative Arrangements) as the parties are active participants and are exposed to significant risks and rewards dependent on commercial success of the collaborative activity. |
Net (Loss) Income Per Share Data | Basic net (loss) income per common share is calculated by dividing net (loss) income by the weighted average number of common shares outstanding during the period. Diluted net (loss) income per common share is computed by dividing net (loss) income 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. However, these items have been excluded from the calculation of diluted net loss per share for the three and nine months ended June 30, 2022 and for the three months ended June 20, 2021 as their effect was anti-dilutive as a result of the net loss incurred for those periods. Therefore, diluted weighted average number of shares outstanding and diluted net loss per share were the same as basic weighted average number of shares outstanding and net loss per share for the three and nine months ended June 30, 2022 and for the three months ended June 30, 2021. |
Income Taxes | For interim income tax reporting, the Company estimates its annual effective tax rate and applies it to fiscal year-to-date pretax (loss) income, 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 the second quarter of fiscal 2022; the examination has not been completed. U.S. federal income tax returns for years prior to fiscal 2018 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 2011. For tax returns for non-U.S. jurisdictions, the Company is no longer subject to income tax examination for years prior to 2017. Additionally, the Company has been indemnified of liability for any taxes relating to Creagh Medical, NorMedix 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, 2022 | |
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) 2022 2021 2022 2021 Medical Device Product sales $ 6,741 $ 5,493 $ 19,970 $ 15,464 Royalties 7,771 7,752 23,015 23,135 License fees 1,024 1,044 3,723 15,047 Research, development and other 1,992 2,466 6,181 7,212 Medical Device Revenue 17,528 16,755 52,889 60,858 In Vitro Diagnostics Product sales 7,178 6,591 20,257 18,505 Research, development and other 148 527 817 1,802 In Vitro Diagnostics Revenue 7,326 7,118 21,074 20,307 Total Revenue $ 24,854 $ 23,873 $ 73,963 $ 81,165 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis by level of the fair value hierarchy were as follows: June 30, 2022 (In thousands) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Assets Cash equivalents (1) $ — $ 16 $ — $ 16 Available-for-sale securities (1) — 2,012 — 2,012 Total assets $ — $ 2,028 $ — $ 2,028 Liabilities Contingent consideration (2) $ — $ — $ 826 $ 826 Total liabilities $ — $ — $ 826 $ 826 September 30, 2021 (In thousands) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Assets Cash equivalents (1) $ — $ 5,308 $ — $ 5,308 Available-for-sale investments (1) — 9,719 — 9,719 Total assets $ — $ 15,027 $ — $ 15,027 Liabilities Contingent consideration (2) $ — $ — $ 817 $ 817 Total liabilities $ — $ — $ 817 $ 817 (1) Fair value of cash equivalents (money market funds) and available-for-sale investments (commercial paper and corporate bond securities) is based on quoted vendor prices and broker pricing where all significant inputs are observable. (2) 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 the acquisition date and as of both June 30, 2022 and September 30, 2021. |
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, 2021 $ 817 Additions — Fair value adjustments — Settlements — Interest accretion 9 Foreign currency translation — Contingent consideration liability at June 30, 2022 $ 826 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Amortized Cost, Unrealized Holding Gains (Losses) and Fair Value of Available for Sale Securities | The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities were as follows: June 30, 2022 Valuation Balance Sheet Classification (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Current Assets Noncurrent Assets Commercial paper and corporate bonds $ 2,018 $ — $ (6 ) $ 2,012 $ 2,012 $ — Total $ 2,018 $ — $ (6 ) $ 2,012 $ 2,012 $ — September 30, 2021 Valuation Balance Sheet Classification (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Current Assets Noncurrent Assets Commercial paper and corporate bonds $ 9,718 $ 2 $ (1 ) $ 9,719 $ 7,717 $ 2,002 Total $ 9,718 $ 2 $ (1 ) $ 9,719 $ 7,717 $ 2,002 |
Components of Inventories | Inventories consisted of the following components: June 30, September 30, (In thousands) 2022 2021 Raw materials $ 6,252 $ 4,165 Work-in process 1,943 1,295 Finished products 2,731 1,300 Total $ 10,926 $ 6,760 |
Summary of Prepaids and Other Current Assets | Prepaids and other current assets consisted of the following: June 30, September 30, (In thousands) 2022 2021 Prepaid expenses $ 3,208 $ 1,712 Irish research and development credits receivable 1,006 1,164 CARES Act employee retention credit receivable 3,434 3,577 Prepaids and other $ 7,648 $ 6,453 |
Schedule of Intangible Assets | Intangible assets consisted of the following: June 30, 2022 (In thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 12,032 $ (9,039 ) $ 2,993 Developed technology 11.9 33,613 (7,565 ) 26,048 Patents and other 14.1 3,551 (2,420 ) 1,131 Total definite-lived intangible assets 49,196 (19,024 ) 30,172 Unamortized intangible assets: Trademarks and trade names 580 — 580 Total intangible assets $ 49,776 $ (19,024 ) $ 30,752 September 30, 2021 (In thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 13,216 $ (8,878 ) $ 4,338 Developed technology 11.9 36,531 (5,652 ) 30,879 Patents and other 14.1 3,551 (2,294 ) 1,257 Total definite-lived intangible assets 53,298 (16,824 ) 36,474 Unamortized intangible assets: Trademarks and trade names 580 — 580 Total intangible assets $ 53,878 $ (16,824 ) $ 37,054 |
Estimated Amortization Expense | Based on the intangible assets in service as of June 30, 2022, estimated amortization expense for future fiscal years is as follows: (In thousands) Remainder of 2022 $ 1,063 2023 3,739 2024 3,656 2025 3,622 2026 2,754 2027 2,510 Thereafter 12,828 Definite-lived intangible assets $ 30,172 |
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 Diagnostics Medical Device Total Goodwill as of September 30, 2021 $ 8,010 $ 37,596 $ 45,606 Currency translation adjustment — (3,293 ) (3,293 ) Measurement period adjustment (1) — 277 277 Goodwill as of June 30, 2022 $ 8,010 $ 34,580 $ 42,590 (1) During the third quarter of fiscal 2022, measurement period adjustments were recorded to finalize the allocation of purchase consideration for the fiscal 2021 Vetex acquisition (Note 11). |
Summary of Other Noncurrent Assets | Other noncurrent assets consisted of the following: June 30, September 30, (In thousands) 2022 2021 Operating lease right-of-use assets $ 3,796 $ 2,435 Other 1,711 1,283 Other assets $ 5,507 $ 3,718 |
Schedule of Accrued Other Liabilities | Accrued other liabilities consisted of the following: June 30, September 30, (In thousands) 2022 2021 Accrued professional fees $ 370 $ 489 Accrued clinical study expense 1,876 1,667 Accrued purchases 1,198 1,195 Acquisition of in-process research and development (1) 975 494 Operating lease liability, current portion 897 518 Other 541 542 Total accrued other liabilities $ 5,857 $ 4,905 (1) Acquisition of in-process research and development consists of the present value of guaranteed payments to be made (current portion) in connection with an asset acquisition in fiscal 2018 (Note 10). |
Schedule of Other Long-term Liabilities | Other long-term liabilities consisted of the following: June 30, September 30, (In thousands) 2022 2021 Deferred consideration (1) $ 4,235 $ 5,106 Contingent consideration (2) 826 817 Unrecognized tax benefits (3) 2,359 2,538 Operating lease liabilities (4) 4,104 3,188 Other long-term liabilities $ 11,524 $ 11,649 (1) Deferred consideration consists of the present value of guaranteed payments to be made (noncurrent portion) in connection with the fiscal 2021 Vetex acquisition (Note 11) and with an asset acquisition in fiscal 2018 (Note 10). (2) Contingent consideration consists of the fair value of contingent consideration liabilities associated with the fiscal 2021 Vetex acquisition (Note 11). (3) Balance of unrecognized tax benefits (Note 9) includes accrued interest and penalties, if applicable. (4) Operating lease liabilities consist 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. |
Stock-based Compensation Plans
Stock-based Compensation Plans (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
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 Nine Months Ended June 30, June 30, (In thousands) 2022 2021 2022 2021 Product costs $ 62 $ 23 $ 170 $ 92 Research and development 355 329 1,086 918 Selling, general and administrative 1,382 1,104 3,942 3,308 Total $ 1,799 $ 1,456 $ 5,198 $ 4,318 |
Summary of Stock Option Grant Activity | Stock option grant activity was as follows: Nine Months Ended June 30, 2022 2021 Stock option grant activity: Stock options granted 312,000 244,000 Weighted average grant date fair value $ 16.11 $ 14.08 Weighted average exercise price $ 42.78 $ 39.24 |
Net (Loss) Income Per Share D_2
Net (Loss) Income Per Share Data (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
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 Nine Months Ended June 30, June 30, (In thousands) 2022 2021 2022 2021 Basic weighted average shares outstanding 13,929 13,837 13,907 13,740 Dilutive effect of outstanding stock options, non-vested restricted stock, and non-vested restricted stock units — — — 219 Diluted weighted average shares outstanding 13,929 13,837 13,907 13,959 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Schedule of Acquisition Date Fair Value of Purchase Consideration | The acquisition date fair value of purchase consideration was as follows: (In thousands) Consideration paid at closing $ 39,985 Deferred consideration 3,257 Contingent consideration 814 Total purchase consideration 44,056 Less: Cash acquired (432 ) Total purchase consideration, net of cash acquired $ 43,624 |
Summary of Final Allocation of Purchase Consideration as of Acquisition Date | The final allocation of purchase consideration as of the acquisition date was as follows: (In thousands) Asset (Liability) Current assets $ 18 Property and equipment 37 Intangible assets 27,600 Other non-current assets 37 Accrued compensation (236 ) Other accrued liabilities (111 ) Deferred income taxes (3,087 ) Net assets acquired 24,258 Goodwill 19,366 Total purchase consideration, net of cash acquired $ 43,624 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Revenue, Operating (Loss) Income and Depreciation and Amortization | Segment revenue, operating (loss) income, and depreciation and amortization were as follows: Three Months Ended Nine Months Ended June 30, June 30, (In thousands) 2022 2021 2022 2021 Revenue: Medical Device $ 17,528 $ 16,755 $ 52,889 $ 60,858 In Vitro Diagnostics 7,326 7,118 21,074 20,307 Total revenue $ 24,854 $ 23,873 $ 73,963 $ 81,165 Operating (loss) income: Medical Device $ (7,308 ) $ (2,491 ) $ (16,712 ) $ 5,480 In Vitro Diagnostics 3,387 3,378 10,262 10,407 Total segment operating (loss) income (3,921 ) 887 (6,450 ) 15,887 Corporate (3,222 ) (3,271 ) (9,034 ) (8,695 ) Total operating (loss) income $ (7,143 ) $ (2,384 ) $ (15,484 ) $ 7,192 Depreciation and amortization: Medical Device $ 2,020 $ 1,631 $ 6,347 $ 5,004 In Vitro Diagnostics 88 121 260 314 Corporate 98 92 295 292 Total depreciation and amortization $ 2,206 $ 1,844 $ 6,902 $ 5,610 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 24,854 | $ 23,873 | $ 73,963 | $ 81,165 |
Product Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 13,919 | 12,084 | 40,227 | 33,969 |
Royalties [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 8,795 | 8,796 | 26,738 | 38,182 |
Research, Development and Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 2,140 | 2,993 | 6,998 | 9,014 |
Operating Segments [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 24,854 | 23,873 | 73,963 | 81,165 |
Operating Segments [Member] | Medical Device [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 17,528 | 16,755 | 52,889 | 60,858 |
Operating Segments [Member] | Medical Device [Member] | Product Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 6,741 | 5,493 | 19,970 | 15,464 |
Operating Segments [Member] | Medical Device [Member] | Royalties [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 7,771 | 7,752 | 23,015 | 23,135 |
Operating Segments [Member] | Medical Device [Member] | License Fees [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 1,024 | 1,044 | 3,723 | 15,047 |
Operating Segments [Member] | Medical Device [Member] | Research, Development and Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 1,992 | 2,466 | 6,181 | 7,212 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 7,326 | 7,118 | 21,074 | 20,307 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | Product Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 7,178 | 6,591 | 20,257 | 18,505 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | Research, Development and Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 148 | $ 527 | $ 817 | $ 1,802 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Revenue From Contract With Customer [Abstract] | ||
Contract assets — royalties and license fees | $ 7,584 | $ 7,091 |
Collaborative Arrangement - Add
Collaborative Arrangement - Additional Information (Detail 1) - Abbott Agreement [Member] - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-07-01 $ in Millions | Jun. 30, 2022 USD ($) |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Remaining performance obligation, amount | $ 11.3 |
Remaining performance obligation, satisfaction period | 4 years |
Collaborative Arrangement - A_2
Collaborative Arrangement - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2021 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Total revenue | $ 24,854,000 | $ 23,873,000 | $ 73,963,000 | $ 81,165,000 | |||||
Abbott Agreement [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Collaborative arrangement payment received | 60,800,000 | ||||||||
Total revenue | 1,000,000 | $ 1,000,000 | 3,600,000 | 14,800,000 | |||||
Collaboration revenue recognized included in balance at beginning of period | 3,600,000 | $ 3,800,000 | |||||||
Deferred revenue | 11,300,000 | 11,300,000 | $ 14,900,000 | ||||||
Abbott Agreement [Member] | Upfront Payment [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Collaborative arrangement payment received | $ 25,000,000 | ||||||||
Abbott Agreement [Member] | Milestone Payment [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Collaborative arrangement payment received | $ 15,000,000 | $ 10,800,000 | $ 10,000,000 | ||||||
Abbott Agreement [Member] | PMA Received Prior to December 31, 2022 [Member] | TRANSCEND Clinical Trial [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Collaborative arrangement additional potential milestone payments receivable | 30,000,000 | 30,000,000 | |||||||
Abbott Agreement [Member] | PMA Received After December 31, 2022 [Member] | TRANSCEND Clinical Trial [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Collaborative arrangement additional potential milestone payments receivable | $ 27,000,000 | $ 27,000,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Detail) - Assets Measured at Fair Value on a Recurring Basis [Member] - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | $ 2,028 | $ 15,027 |
Liabilities measured at fair value | 826 | 817 |
Available-for-sale securities/investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 2,012 | 9,719 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 2,028 | 15,027 |
Significant Other Observable Inputs (Level 2) [Member] | Available-for-sale securities/investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 2,012 | 9,719 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | 826 | 817 |
Cash equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 16 | 5,308 |
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 | 16 | 5,308 |
Contingent consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | 826 | 817 |
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 | $ 826 | $ 817 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Contingent Consideration Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Contingent consideration expense | $ 3 | $ 9 |
Contingent Consideration [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Contingent consideration liability, beginning balance | 817 | |
Contingent consideration expense | 9 | |
Contingent consideration liability, ending balance | $ 826 | $ 826 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Amortized Cost, Unrealized Holding Gains and (Losses) and Fair Value of Available-for-sale Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 2,018 | $ 9,718 |
Unrealized Gains | 2 | |
Unrealized Losses | (6) | (1) |
Fair Value | 2,012 | 9,719 |
Current Assets | 2,012 | 7,717 |
Noncurrent Assets | 2,002 | |
Commercial paper and corporate bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,018 | 9,718 |
Unrealized Gains | 2 | |
Unrealized Losses | (6) | (1) |
Fair Value | 2,012 | 9,719 |
Current Assets | $ 2,012 | 7,717 |
Noncurrent Assets | $ 2,002 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Components of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 6,252 | $ 4,165 |
Work-in process | 1,943 | 1,295 |
Finished products | 2,731 | 1,300 |
Total | $ 10,926 | $ 6,760 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Summary of Prepaids and Other Current Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid expenses | $ 3,208 | $ 1,712 |
Irish research and development credits receivable | 1,006 | 1,164 |
CARES Act employee retention credit receivable | 3,434 | 3,577 |
Prepaids and other | $ 7,648 | $ 6,453 |
Supplemental Balance Sheet In_6
Supplemental Balance Sheet Information - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |||||
CARES Act employee retention credit, benefit to operating costs and expenses | $ 3.6 | ||||
Amortization expense | $ 1.1 | $ 0.6 | $ 3.4 | $ 1.9 |
Supplemental Balance Sheet In_7
Supplemental Balance Sheet Information - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Accumulated Amortization | $ (19,024) | $ (16,824) |
Definite-lived intangible assets, Net | 30,172 | |
Intangible assets, Gross Carrying Amount | 49,776 | 53,878 |
Intangible assets, Net | $ 30,752 | $ 37,054 |
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 | $ 12,032 | $ 13,216 |
Definite-lived intangible assets, Accumulated Amortization | (9,039) | (8,878) |
Definite-lived intangible assets, Net | $ 2,993 | $ 4,338 |
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 | $ 33,613 | $ 36,531 |
Definite-lived intangible assets, Accumulated Amortization | (7,565) | (5,652) |
Definite-lived intangible assets, Net | $ 26,048 | $ 30,879 |
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 | (2,420) | (2,294) |
Definite-lived intangible assets, Net | 1,131 | 1,257 |
Definite-Lived Intangible Assets [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross Carrying Amount | 49,196 | 53,298 |
Definite-lived intangible assets, Accumulated Amortization | (19,024) | (16,824) |
Definite-lived intangible assets, Net | 30,172 | 36,474 |
Trademarks and Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net | $ 580 | $ 580 |
Supplemental Balance Sheet In_8
Supplemental Balance Sheet Information - Estimated Amortization Expense (Detail) $ in Thousands | Jun. 30, 2022 USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remainder of 2022 | $ 1,063 |
2023 | 3,739 |
2024 | 3,656 |
2025 | 3,622 |
2026 | 2,754 |
2027 | 2,510 |
Thereafter | 12,828 |
Definite-lived intangible assets, Net | $ 30,172 |
Supplemental Balance Sheet In_9
Supplemental Balance Sheet Information - Schedule of Carrying Amount of Goodwill by Segment (Detail) $ in Thousands | 9 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill [Line Items] | |
Goodwill as of September 30, 2021 | $ 45,606 |
Currency translation adjustment | (3,293) |
Measurement period adjustment | 277 |
Goodwill as of June 30, 2022 | 42,590 |
In Vitro Diagnostics [Member] | |
Goodwill [Line Items] | |
Goodwill as of September 30, 2021 | 8,010 |
Goodwill as of June 30, 2022 | 8,010 |
Medical Device [Member] | |
Goodwill [Line Items] | |
Goodwill as of September 30, 2021 | 37,596 |
Currency translation adjustment | (3,293) |
Measurement period adjustment | 277 |
Goodwill as of June 30, 2022 | $ 34,580 |
Supplemental Balance Sheet I_10
Supplemental Balance Sheet Information - Summary of Other Noncurrent Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Schedule Of Investments [Line Items] | ||
Other assets | $ 5,507 | $ 3,718 |
Operating Lease Right-of-Use Assets [Member] | ||
Schedule Of Investments [Line Items] | ||
Other assets | 3,796 | 2,435 |
Other [Member] | ||
Schedule Of Investments [Line Items] | ||
Other assets | $ 1,711 | $ 1,283 |
Supplemental Balance Sheet I_11
Supplemental Balance Sheet Information - Schedule of Accrued Other Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Accrued Liabilities Current [Abstract] | ||
Accrued professional fees | $ 370 | $ 489 |
Accrued clinical study expense | 1,876 | 1,667 |
Accrued purchases | 1,198 | 1,195 |
Acquisition of in-process research and development | 975 | 494 |
Operating lease liability, current portion | 897 | 518 |
Other | 541 | 542 |
Total accrued other liabilities | $ 5,857 | $ 4,905 |
Supplemental Balance Sheet I_12
Supplemental Balance Sheet Information - Schedule of Other Long-term Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Deferred consideration | $ 4,235 | $ 5,106 |
Contingent consideration | 826 | 817 |
Unrecognized tax benefits | 2,359 | 2,538 |
Operating lease liabilities | 4,104 | 3,188 |
Other long-term liabilities | $ 11,524 | $ 11,649 |
Debt - Additional Information (
Debt - Additional Information (Details) - Secured Revolving Credit Facility [Member] - Loan and Security Agreement [Member] - USD ($) | 9 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 14, 2020 | |
Line Of Credit Facility [Line Items] | ||||
Revolving credit facility, maximum borrowing capacity | $ 25,000,000 | |||
Revolving credit facility, outstanding balance | $ 10,000,000 | $ 10,000,000 | ||
Revolving credit facility, maturity date | Sep. 14, 2021 | |||
Debt instrument, maturity date, description | The maturity date may be extended by the Company for up to one additional extension period of twelve months subject to certain conditions set forth in the Loan Agreement. | |||
Revolving credit facility, interest rate | Interest under the Loan Agreement accrues at a rate per annum equal to the greater of (i) 3.25% per annum and (ii) the 90-day interest rate yield for U.S. Government Treasury Securities plus 2.75% per annum. | |||
Revolving credit facility, basis spread on variable rate | 2.75% | |||
Revolving credit facility, unused commitment fee rate | 0.075% | |||
Revolving credit facility, frequency of payments | quarterly | |||
Debt weighted average interest rate on the revolving credit facility | 4.50% | 3.30% | ||
Minimum [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Revolving credit facility, interest rate | 3.25 | |||
Interest Expense [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Revolving credit facility, unused commitment fee | $ 0 | |||
Interest Expense [Member] | Maximum [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Revolving credit facility, unused commitment fee | $ 100,000 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,799 | $ 1,456 | $ 5,198 | $ 4,318 |
Product costs [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 62 | 23 | 170 | 92 |
Research and development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 355 | 329 | 1,086 | 918 |
Selling, general and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,382 | $ 1,104 | $ 3,942 | $ 3,308 |
Stock-based Compensation Plan_3
Stock-based Compensation Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Stock-Based Compensation Activity [Line Items] | ||
Unrecognized compensation costs, nonvested awards, amount | $ 11.7 | |
Unrecognized compensation costs, nonvested awards, weighted average recognition period | 2 years 4 months 24 days | |
Restricted Stock Awards [Member] | ||
Stock-Based Compensation Activity [Line Items] | ||
Units granted | 90,000 | 68,000 |
Weighted average grant date fair value | $ 43.02 | $ 38.06 |
Restricted Stock Unit Awards [Member] | ||
Stock-Based Compensation Activity [Line Items] | ||
Units granted | 14,000 | 12,000 |
Weighted average grant date fair value | $ 42.79 | $ 45.13 |
Employee Stock Purchase Plan [Member] | ||
Stock-Based Compensation Activity [Line Items] | ||
Shares issued | 10,000 | 8,000 |
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, 2022 | Jun. 30, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock options granted | 312,000 | 244,000 |
Weighted average grant date fair value | $ 16.11 | $ 14.08 |
Weighted average exercise price | $ 42.78 | $ 39.24 |
Net (Loss) Income Per Share D_3
Net (Loss) Income 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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding | 13,929 | 13,837 | 13,907 | 13,740 |
Dilutive effect of outstanding stock options, non-vested restricted stock, and non-vested restricted stock units | 219 | |||
Diluted weighted average shares outstanding | 13,929 | 13,837 | 13,907 | 13,959 |
Net (Loss) Income Per Share D_4
Net (Loss) Income Per Share Data - Additional Information (Detail) shares in Millions | 9 Months Ended |
Jun. 30, 2021 shares | |
Earnings Per Share [Abstract] | |
Antidilutive options excluded from computation of EPS | 0.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Income Tax Disclosure [Line Items] | |||||
Income tax benefit (expense) | $ 1,530,000 | $ (776,000) | $ 3,155,000 | $ (2,382,000) | |
U.S. federal statutory tax rate | 21% | 21% | 21% | 21% | |
Discrete tax benefits related to stock-based compensation awards | $ 100,000 | $ 700,000 | |||
Unrecognized tax benefits excluding interest and penalties that would impact effective tax rate | $ 3,000,000 | 3,000,000 | $ 2,700,000 | ||
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 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 36 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2020 | Jun. 30, 2022 | Sep. 30, 2020 | Sep. 30, 2018 | Sep. 30, 2024 | |
Embolitech LLC [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Contingent payments upon achievement of regulatory milestones | $ 1,000,000 | |||||
Installment payment beginning period | 2023 | |||||
Installment payment ending period | 2024 | |||||
CRO [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Contractual obligation remaining to be paid | $ 8,000,000 | |||||
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 | $ 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 | $ 2,000,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jul. 02, 2021 | Jun. 30, 2022 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | |||
Measurement period adjustments, increase in goodwill | $ 277 | ||
Vetex Medical Limited [Member] | |||
Business Acquisition [Line Items] | |||
Cash paid | $ 39,900 | ||
Deferred consideration, contractual value | $ 3,500 | ||
Installment payment beginning period | 2024 | ||
Installment payment ending period | 2027 | ||
Contingent consideration, contractual value | $ 3,500 | ||
Contingency period ending year | 2027 | ||
Measurement period adjustments, increase in goodwill | $ 300 | ||
Vetex Medical Limited [Member] | Developed Technology Rights [Member] | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets amortized on straight-line basis, estimated useful life | 12 years | ||
Revolving Credit Facility [Member] | Vetex Medical Limited [Member] | |||
Business Acquisition [Line Items] | |||
Business combination, consideration transferred, liabilities incurred | $ 10,000 |
Acquisitions - Summary of Acqui
Acquisitions - Summary of Acquisition Date Fair Value of Purchase Consideration (Detail) - Vetex Medical Limited [Member] $ in Thousands | Jul. 02, 2021 USD ($) |
Business Acquisition [Line Items] | |
Consideration paid at closing | $ 39,985 |
Deferred consideration | 3,257 |
Contingent consideration | 814 |
Total purchase consideration | 44,056 |
Less: Cash acquired | (432) |
Total purchase consideration, net of cash acquired | $ 43,624 |
Acquisitions - Summary of Final
Acquisitions - Summary of Final Allocation of Purchase Consideration as of Acquisition Date (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 | Jul. 02, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 42,590 | $ 45,606 | |
Vetex Medical Limited [Member] | |||
Business Acquisition [Line Items] | |||
Current assets | $ 18 | ||
Property and equipment | 37 | ||
Intangible assets | 27,600 | ||
Other non-current assets | 37 | ||
Accrued compensation | (236) | ||
Other accrued liabilities | (111) | ||
Deferred income taxes | (3,087) | ||
Net assets acquired | 24,258 | ||
Goodwill | 19,366 | ||
Total purchase consideration, net of cash acquired | $ 43,624 |
Segment Information - Segment R
Segment Information - Segment Revenue, Operating (Loss) Income and Depreciation and Amortization (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 24,854 | $ 23,873 | $ 73,963 | $ 81,165 |
Operating (loss) income | (7,143) | (2,384) | (15,484) | 7,192 |
Depreciation and amortization | 2,206 | 1,844 | 6,902 | 5,610 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 24,854 | 23,873 | 73,963 | 81,165 |
Operating (loss) income | (3,921) | 887 | (6,450) | 15,887 |
Operating Segments [Member] | Medical Device [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 17,528 | 16,755 | 52,889 | 60,858 |
Operating (loss) income | (7,308) | (2,491) | (16,712) | 5,480 |
Depreciation and amortization | 2,020 | 1,631 | 6,347 | 5,004 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 7,326 | 7,118 | 21,074 | 20,307 |
Operating (loss) income | 3,387 | 3,378 | 10,262 | 10,407 |
Depreciation and amortization | 88 | 121 | 260 | 314 |
Corporate Non Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating (loss) income | (3,222) | (3,271) | (9,034) | (8,695) |
Depreciation and amortization | $ 98 | $ 92 | $ 295 | $ 292 |