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Organization and Business Description
12 Months Ended
Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Business Description
Organization and Business Description
Description of Business
LDR Holding Corporation (Holding), a Delaware corporation, and its subsidiaries, LDR Spine USA, Inc. (Spine), LDR Médical, S.A.S (Médical) and LDR Brasil Comercio, Importacao e Exportacao Ltda. (LDR Brazil and collectively, the Company), operates as a medical device company that designs and commercializes novel and proprietary surgical technologies for the treatment of patients suffering from spine disorders. The Company’s primary products are based on the VerteBRIDGE fusion platform and Mobi non-fusion platform, both of which are designed for applications in the cervical and lumbar spine for both fusion and nonfusion surgical treatments. The Company has offices in Troyes, France; Santo Andre, Brazil; Beijing and Hong Kong, China; Seoul, Korea and in Austin, Texas, which serves the U.S. market and is the corporate headquarters. The primary markets for the Company’s products are the U.S. and Western Europe.
Initial and Follow-On Public Offerings
In October 2013, the Company completed its initial public offering (IPO) of 5,750,000 shares of common stock, including 750,000 shares sold to underwriters for the exercise of their over-allotment option to purchase additional shares, at a price of $15.00 per share, before underwriting discounts and expenses. The IPO generated net proceeds to the Company of approximately $77.5 million, after deducting underwriting discounts and expenses of approximately $8.7 million.
In May 2014 and June 2014, the Company completed its follow-on public offering in which the Company sold 1,495,000 shares, including 195,000 shares sold to underwriters for the exercise of their over-allotment option to purchase additional shares, at a price of $24.50 per share, before underwriting discounts and expenses. The follow-on public offering generated net proceeds to the Company of approximately $34.0 million, after deducting underwriting discounts and expenses of approximately $2.6 million.
Reverse Stock Split Ratio
On October 3, 2013, the Company effected a reverse stock split of the Company’s common stock such that each 6.75 shares of issued common stock were reclassified into one share of common stock. All common stock share and per-share amounts for all periods presented in these financial statements have been adjusted retroactively to reflect the reverse stock split.
Reclassifications
Certain reclassifications have been made to prior periods’ consolidated financial statements to conform to the current period presentation. These reclassifications did not result in any change in previously reported net loss, total assets or stockholders’ deficit.
During the quarter ended June 30, 2014, the Company identified immaterial errors in its previously issued financial statements related to the presentation of purchases of property and equipment with the Condensed Consolidated Statements of Cash Flows. These previously reported amounts included property and equipment acquired but unpaid as of the end of the reporting period, which resulted in errors within investing activities with equal and offsetting errors in operating activities. These errors do not impact the Company’s previously reported amounts in its Consolidated Statements of Comprehensive Loss or Condensed Consolidated Balance Sheets for any period. The Company concluded that the errors were not material to any prior financial statements under the guidance of SEC Staff Accounting Bulletin (SAB) No. 99, Materiality.
The Company applied the guidance of SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current Year Financial Statements, to revise amounts previously presented. During 2014, the Company corrected the presentation within the Consolidated Statements of Cash Flows for the year ended December 31, 2013 to correct amounts previously reported relating to purchases of property and equipment within investing activities, the change in accounts payable within operating activities and the supplemental non-cash investing and financing activities disclosure of purchases of property and equipment included in ending accounts payable. For the year ended December 31, 2013, there was an adjustment of $0.2 million to decrease cash flows from used in investing activities and increase cash flows used in operating activities.
In connection with the anticipated filing of the Form 10-Q for the first quarter of 2015, additional adjustments will be made to the Company's Condensed Consolidated Statements of Cash Flows that will decrease cash used in investing activities and increase cash used in operating activities by approximately $0.8 million for the three months ended March 31, 2014.