QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
Page |
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4 | ||||||
Item 1. |
4 | |||||
4 | ||||||
5 | ||||||
6 | ||||||
7 | ||||||
8 | ||||||
Item 2. |
26 | |||||
Item 3. |
38 | |||||
Item 4. |
38 | |||||
39 | ||||||
Item 1. |
39 | |||||
Item 1A |
39 | |||||
Item 2. |
41 | |||||
Item 3. |
41 | |||||
Item 4. |
41 | |||||
Item 5. |
41 | |||||
Item 6. |
42 | |||||
43 |
September 30, |
December 31, |
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2021 |
2020 |
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Assets |
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Current assets: |
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Cash |
$ | $ | ||||||
Restricted cash |
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Accounts receivable, net |
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Inventory |
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Prepaid expenses and other current assets |
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Total current assets |
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Property and equipment, net |
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Intangible assets, net |
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Goodwill |
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Operating lease right-of-use |
— | |||||||
Deferred tax asset, net |
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Other assets |
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Total assets |
$ | $ | ||||||
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Deferred acquisition consideration |
$ | — | $ | |||||
Current portion of term loan |
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Current portion of finance lease obligations |
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Current portion of operating lease obligations |
— | |||||||
Current portion of deferred rent and lease incentive obligation |
— | |||||||
Accounts payable |
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Accrued expenses and other current liabilities |
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Total current liabilities |
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Line of credit |
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Term loan, net of current portion |
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Deferred acquisition consideration, net of current portion |
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Earnout liability |
||||||||
Deferred rent and lease incentive obligation, net of current portion |
— | |||||||
Finance lease obligations, net of current portion |
||||||||
Operating lease obligations, net of current portion |
— | |||||||
Other liabilities |
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Total liabilities |
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Commitments and contingencies (Note 18) |
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Stockholders’ equity: |
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Preferred stock, $ |
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Common stock, $ |
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Additional paid-in capital |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
$ | $ | ||||||
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|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
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Net revenue |
$ | $ | $ | $ | ||||||||||||
Cost of goods sold |
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Gross profit |
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Operating expenses: |
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Selling, general and administrative |
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Research and development |
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Total operating expenses |
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Income from operations |
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Other expense, net: |
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Interest expense, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Loss on extinguishment of debt |
( |
) | — | ( |
) | — | ||||||||||
Gain on settlement of deferred acquisition consideration |
— | — | ||||||||||||||
Other income, net |
( |
) | ( |
) | ||||||||||||
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Total other expense, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
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|
|||||||||
Net income (loss) before income taxes |
( |
) | ||||||||||||||
Income tax expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
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|
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|
|||||||||
Net income (loss) |
$ | $ | $ | $ | ( |
) | ||||||||||
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|
|||||||||
Net income (loss), per share: |
||||||||||||||||
Basic |
$ | $ | $ | $ | ( |
) | ||||||||||
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Diluted |
$ | $ | $ | $ | ( |
) | ||||||||||
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Weighted-average common shares outstanding |
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Basic |
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Diluted |
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Three and Nine Months Ended September 30, 2021 |
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Additional |
||||||||||||||||||||
Common Stock |
Paid-in |
Accumulated |
Total |
|||||||||||||||||
Shares |
Amount |
Capital |
Deficit |
Stockholders’ Equity |
||||||||||||||||
Balance as of June 30, 2021 (as reported) |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Adjustment due to right of use asset amortization |
— |
— |
— | ( |
) | ( |
) | |||||||||||||
Balance as of June 30, 2021 (as adjusted) |
( |
) | ||||||||||||||||||
Exercise of stock options |
— | — | ||||||||||||||||||
Stock-based compensation expense |
— | — | — | |||||||||||||||||
Net income |
— | — | — | |||||||||||||||||
Balance as of September 30, 2021 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Balance as of December 31, 2020 (as reported) |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Adjustment due to Private Warrant reclassification |
— | — | ( |
) | — | |||||||||||||||
Adjustment due to right of use asset amortization |
— | — | — | ( |
) | ( |
) | |||||||||||||
Balance as of December 31, 2020 (as adjusted) |
( |
) | ||||||||||||||||||
Exercise of stock options |
— | — | ||||||||||||||||||
Vesting of RSUs, net of shares surrendered to pay taxes |
— | ( |
) | — |
( |
) | ||||||||||||||
Stock-based compensation expense |
— | — | — | |||||||||||||||||
Net income |
— | — | — | |||||||||||||||||
Balance as of September 30, 2021 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Three and Nine Months Ended September 30, 2020 |
||||||||||||||||||||
Additional |
||||||||||||||||||||
Common Stock |
Paid-in |
Accumulated |
Total |
|||||||||||||||||
Shares |
Amount |
Capital |
Deficit |
Stockholders’ Equity |
||||||||||||||||
Balance as of June 30, 2020 (as reported) |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Adjustment due to Private Warrant reclassification |
— | — | ( |
) | — | |||||||||||||||
Adjustment due to right of use asset amortization |
— | — | — | ( |
) | ( |
) | |||||||||||||
Balance as of June 30, 2020 (as adjusted) |
( |
) | ||||||||||||||||||
Exercise of stock options |
— | — | ||||||||||||||||||
Issuance of common stock associated with business acquisition |
— | — | ||||||||||||||||||
Stock-based compensation expense |
— | — | — | |||||||||||||||||
Net income |
— | — | — | |||||||||||||||||
Balance as of September 30, 2020 (as adjusted) |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Balance as of December 31, 2019 (as reported) |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Adjustment due to Private Warrant reclassification |
— | — | ( |
) | — | |||||||||||||||
Adjustment due to right of use asset amortization |
— | — | — | ( |
) | ( |
) | |||||||||||||
Balance as of December 31, 2019 (as adjusted) |
( |
) | ||||||||||||||||||
Exercise of stock options |
— | |||||||||||||||||||
Issuance of common stock associated with business acquisition |
— | — | ||||||||||||||||||
Stock-based compensation expense |
— | — | — | |||||||||||||||||
Net loss |
— | — | — | ( |
) | ( |
) | |||||||||||||
Balance as of September 30, 2020 (as adjusted) |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Nine Months Ended September 30, |
||||||||
2021 |
2020 |
|||||||
Cash flows from operating activities: |
||||||||
Net income (loss) |
$ | $ | ( |
) | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
||||||||
Depreciation |
||||||||
Amortization of intangible assets |
||||||||
Amortization of operating lease right-of-use |
— | |||||||
Non-cash interest expense |
||||||||
Deferred interest expense |
||||||||
Deferred rent expense |
— | |||||||
Gain on settlement of deferred acquisition consideration |
— | ( |
) | |||||
Provision recorded for sales returns and doubtful accounts |
||||||||
Loss on disposal of property and equipment |
||||||||
Adjustment for excess and obsolete inventories |
||||||||
Stock-based compensation |
||||||||
Change in fair value of Earnout liability |
( |
) | — | |||||
Loss on extinguishment of debt |
— | |||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
( |
) | ( |
) | ||||
Inventory |
( |
) | ( |
) | ||||
Prepaid expenses and other current assets |
( |
) | ( |
) | ||||
Operating leases |
( |
) | — | |||||
Accounts payable |
( |
) | ||||||
Accrued expenses and other current liabilities |
||||||||
Other liabilities |
( |
) | ||||||
|
|
|
|
|||||
Net cash provided by (used in) operating activities |
( |
) | ||||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
( |
) | ( |
) | ||||
Cash paid for business acquisition |
— | ( |
) | |||||
|
|
|
|
|||||
Net cash used in investing activities |
( |
) | ( |
) | ||||
Cash flows from financing activities: |
||||||||
Line of credit borrowings (repayments) under the 2019 Credit Agreement |
( |
) | ||||||
Term loan borrowings (repayments) under the 2019 Credit Agreement |
( |
) | ||||||
Proceeds from term loan under the 2021 Credit Agreement, net of debt discount and issuance cost |
— | |||||||
Term loan repayments under the 2021 Credit Agreement |
( |
) | — | |||||
Payments of withholding taxes in connection with RSUs vesting |
( |
) | — | |||||
Proceeds from the exercise of stock options |
||||||||
Principal repayments of finance lease obligations |
( |
) | ( |
) | ||||
Payment to extinguish debt |
( |
) | — | |||||
Payment of deferred acquisition consideration |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash (used in) provided by financing activities |
( |
) | ||||||
Change in cash and restricted cash |
( |
) | ||||||
Cash and restricted cash, beginning of period |
||||||||
|
|
|
|
|||||
Cash and restricted cash, end of period |
$ | $ | ||||||
|
|
|
|
|||||
Supplemental disclosure of cash flow information: |
||||||||
Cash paid for interest |
$ | $ | ||||||
Cash paid for income taxes |
$ | $ | — | |||||
Supplemental disclosure of non-cash investing and financing activities: |
||||||||
Fair value of shares issued for business acquisition |
$ | — | $ | |||||
Deferred acquisition consideration and earnout liability recorded for business acquisition |
$ | — | $ | |||||
Purchases of property and equipment included in accounts payable and accrued expenses |
$ | $ | ||||||
Right-of-use |
$ | $ | — |
As of December 31, 2020 |
||||||||||||
CONSOLIDATED BALANCE SHEETS |
As Previously Reported |
Adjustments |
As Revised |
|||||||||
Property and equipment, net |
$ |
$ |
( |
) |
$ |
|||||||
Total assets |
$ |
$ |
( |
) |
$ |
|||||||
Accumulated deficit |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | |||
Total stockholders’ equity |
$ |
$ |
( |
) |
$ |
|||||||
Total liabilities and stockholders’ equity |
$ |
$ |
( |
) |
$ |
For September |
For September |
|||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
As Previously Reported |
Adjustments |
As |
As Previously Reported |
Adjustments |
As |
||||||||||||||||||
Selling, general and administrative |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
Total operating expenses |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
Income from operations |
$ |
$ |
( |
) |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||
Net income (loss) before income taxes |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||||||||
Net income (loss) |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
Nine Months Ended September 30, 2020 |
||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
As Previously Reported |
Adjustments |
As |
|||||||||
Net loss |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | |||
Depreciation |
$ |
$ |
$ |
Three Months Ended September 30, |
||||||||
2021 |
2020 |
|||||||
Advanced Wound Care |
$ | $ | ||||||
Surgical & Sports Medicine |
||||||||
|
|
|
|
|||||
Total net revenue |
$ | $ | ||||||
|
|
|
|
Nine Months Ended September 30, |
||||||||
2021 |
2020 |
|||||||
Advanced Wound Care |
$ | $ | ||||||
Surgical & Sports Medicine |
||||||||
|
|
|
|
|||||
Total net revenue |
$ | $ | ||||||
|
|
|
|
Fair Value Measurements |
||||||||||||||||
as of September 30, 2021 Using: |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Liabilities: |
||||||||||||||||
Earnout liability |
$ |
— |
$ |
— |
$ |
$ |
||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ |
— |
$ |
— |
$ |
$ |
|||||||||||
|
|
|
|
|
|
|
|
|||||||||
Fair Value Measurements |
||||||||||||||||
as of December 31, 2020 Using: |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Liabilities: |
||||||||||||||||
Earnout liability |
$ |
— |
$ |
— |
$ |
$ |
||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ |
— |
$ |
— |
$ |
$ |
|||||||||||
|
|
|
|
|
|
|
|
Earnout liability |
||||
Balance as of December 31, 2020 |
$ | |||
Change in fair value |
( |
) | ||
|
|
|||
Balance as of September 30, 2021 |
$ | |||
|
|
September 30, |
December 31, |
|||||||
2021 |
2020 |
|||||||
Accounts receivable |
$ | $ | ||||||
Less — allowance for sales returns and doubtful accounts |
( |
) | ( |
) | ||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Balance at beginning of period |
$ | $ | $ | $ | ||||||||||||
Additions |
||||||||||||||||
Write-offs |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance at end of period |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
September 30, |
December 31, |
|||||||
2021 |
2020 |
|||||||
Raw materials |
$ | $ | ||||||
Work in process |
||||||||
Finished goods |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
September 30, |
December 31, |
|||||||
2021 |
2020 |
|||||||
Subscriptions |
$ | $ | ||||||
Conferences and marketing expenses |
||||||||
Deposits |
||||||||
Reimbursement of offering expenses |
||||||||
Insurance |
||||||||
Other |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
September 30, |
December 31, |
|||||||
2021 |
2020 |
|||||||
Leasehold improvements |
$ | $ | ||||||
Building |
$ | — | ||||||
Furniture, computers and equipment |
||||||||
Accumulated depreciation and amortization |
( |
) | ( |
) | ||||
Construction in progress |
||||||||
$ | $ | |||||||
Original |
Accumulated |
Net Book |
||||||||||
Cost |
Amortization |
Value |
||||||||||
Developed technology |
$ | $ | ( |
) | $ | |||||||
Trade names and trademarks |
( |
) | ||||||||||
Customer relationships |
( |
) | ||||||||||
Non-compete agreements |
( |
) | ||||||||||
Total |
$ | $ | ( |
) | $ | |||||||
Original |
Accumulated |
Net Book |
||||||||||
Cost |
Amortization |
Value |
||||||||||
Developed technology |
$ | $ | ( |
) | $ | |||||||
Trade names and trademarks |
( |
) | ||||||||||
Customer relationship |
( |
) | ||||||||||
Non-compete agreements |
( |
) | ||||||||||
Total |
$ | $ | ( |
) | $ | |||||||
September 30, |
December 31, |
|||||||
2021 |
2020 |
|||||||
Personnel costs |
$ | $ | ||||||
Royalties |
||||||||
Accrued but unpaid lease obligations and interest |
— | |||||||
Other |
||||||||
$ | $ | |||||||
Employee |
Facility |
|||||||
Liability balance as of June 30, 2021 |
$ | $ | ||||||
Expenses |
||||||||
Payments |
( |
) | ( |
) | ||||
Liability balance as of September 30, 2021 |
$ | $ | ||||||
Employee |
Facility |
|||||||
Liability balance as of December 31, 2020 |
$ | $ | ||||||
Expenses |
||||||||
Payments |
( |
) | ( |
) | ||||
Liability balance as of September 30, 2021 |
$ | $ | ||||||
September 30, |
December 31, |
|||||||
2021 |
2020 |
|||||||
Line of credit |
$ |
$ |
||||||
Term loan |
||||||||
Less debt discount and debt issuance cost |
( |
) |
( |
) | ||||
Term loan, net of debt discount and debt issuance cost |
$ |
$ |
||||||
2021 |
||||
2022 |
||||
2023 |
||||
2024 |
||||
2025 and beyond |
||||
Total |
$ | |||
September 30, |
December 31, |
|||||||
2021 |
2020 |
|||||||
Shares reserved for issuance for outstanding options |
||||||||
Shares reserved for issuance for outstanding restricted stock units |
||||||||
Shares reserved for issuance for future grants |
||||||||
Total shares of authorized common stock reserved for future issuance |
||||||||
Weighted Average |
||||||||
Number |
Grant Date |
|||||||
of Shares |
Fair Value |
|||||||
Unvested at December 31, 2020 |
$ | |||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Canceled/Forfeited |
( |
) | ||||||
Unvested at September 30, 2021 |
$ | |||||||
September 30, |
September 30, |
|||||||
2021 |
2020 |
|||||||
Risk-free interest rate |
% | % | ||||||
Expected term (in years) |
||||||||
Expected volatility |
% | % | ||||||
Expected dividend yield |
% | % | ||||||
Exercise price |
$ | $ | ||||||
Underlying stock price |
$ | $ |
Weighted |
||||||||||||||||
Average |
||||||||||||||||
Weighted |
Remaining |
|||||||||||||||
Average |
Contractual |
Aggregate |
||||||||||||||
Number of |
Exercise |
Term |
Intrinsic |
|||||||||||||
Shares |
Price |
(in years) |
Value |
|||||||||||||
Outstanding as of December 31, 2020 |
$ | $ | ||||||||||||||
Granted |
||||||||||||||||
Exercised |
( |
) | ||||||||||||||
Canceled / forfeited |
( |
) | ||||||||||||||
Outstanding as of September 30, 2021 |
||||||||||||||||
Options exercisable as of September 30, 2021 |
||||||||||||||||
Options vested or expected to vest as of September 30, 2021 |
$ | $ | ||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
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2021 |
2020 |
2021 |
2020 |
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Net Income (loss) |
$ | $ | $ | $ | ( |
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Weighted average common shares outstanding |
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Dilutive effect of restricted stock units |
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Dilutive effect of options |
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Weighted-average common shares outstanding—diluted |
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Earnings (loss) per share—basic |
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Earnings (loss) per share—diluted |
$ | $ | $ | $ | ( |
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Classification |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2021 |
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Finance lease |
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Amortization of right-of-use |
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COGS and SG&A | |
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Interest on lease liabilities |
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Interest Expense | |
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Total Finance lease cost |
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Operating lease cost |
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COGS, R&D, SG&A | |
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Short-term lease cost |
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COGS, R&D, SG&A | |
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Variable lease cost |
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Total lease cost |
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September 30, 2021 |
January 1 2021 |
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Property and equipment, gross |
$ | $ | ||||||
Accumulated depreciation |
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Property and equipment, net |
$ | $ | ||||||
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Current portion of finance lease obligations |
$ | $ | ||||||
Finance lease long-term obligations |
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Total finance lease liabilities |
$ | $ | ||||||
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Nine Months Ended September 30, 2021 |
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Cash paid for amounts included in the measurement of lease liabilities: |
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Operating cash flows for operating leases |
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Operating cash flows for finance leases |
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Financing cash flows for finance leases |
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Right-of-use |
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Operating leases |
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Finance leases |
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Right-of-use |
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Operating leases |
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Finance leases |
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September 30, 2021 |
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Weighted-average remaining lease term |
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Finance leases |
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Operating leases |
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September 30, |
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2021 |
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Weighted-average discount rate |
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Finance leases |
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Operating leases |
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Operating leases |
Finance leases |
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2021 (remaining 3 months) |
$ | $ | ||||||
2022 |
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2023 |
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2024 |
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2025 |
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Thereafter |
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Total lease payments |
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Less: interest |
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Total lease liabilities |
$ | $ | ||||||
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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2021 |
2020 |
2021 |
2020 |
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Net revenue |
$ | 113,753 | $ | 100,799 | $ | 339,501 | $ | 231,491 | ||||||||
Cost of goods sold |
26,167 | 22,964 | 81,602 | 61,799 | ||||||||||||
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Gross profit |
87,586 | 77,835 | 257,899 | 169,692 | ||||||||||||
Operating expenses: |
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Selling, general and administrative |
62,369 | 51,325 | 182,950 | 150,797 | ||||||||||||
Research and development |
8,953 | 3,709 | 22,482 | 13,787 | ||||||||||||
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Total operating expenses |
71,322 | 55,034 | 205,432 | 164,584 | ||||||||||||
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Income from operations |
16,264 | 22,801 | 52,467 | 5,108 | ||||||||||||
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Other expense, net: |
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Interest expense, net |
(1,482 | ) | (2,969 | ) | (6,383 | ) | (8,391 | ) | ||||||||
Loss on extinguishment of debt |
(1,883 | ) | — | (1,883 | ) | — | ||||||||||
Gain on settlement of deferred acquisition consideration |
— | 951 | — | 2,246 | ||||||||||||
Other income, net |
(19 | ) | 44 | (4 | ) | 90 | ||||||||||
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Total other expense, net |
(3,384 | ) | (1,974 | ) | (8,270 | ) | (6,055 | ) | ||||||||
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Net income (loss) before income taxes |
12,880 | 20,827 | 44,197 | (947 | ) | |||||||||||
Income tax expense |
(303 | ) | (72 | ) | (990 | ) | (134 | ) | ||||||||
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Net income (loss) |
$ | 12,577 | $ | 20,755 | $ | 43,207 | $ | (1,081 | ) | |||||||
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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2021 |
2020 |
2021 |
2020 |
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(in thousands) |
(in thousands) |
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Net income (loss) |
$ | 12,577 | $ | 20,755 | $ | 43,207 | $ | (1,081 | ) | |||||||
Interest expense, net |
1,482 | 2,969 | 6,383 | 8,391 | ||||||||||||
Income tax expense |
303 | 72 | 990 | 134 | ||||||||||||
Depreciation |
1,937 | 1,135 | 4,010 | 3,285 | ||||||||||||
Amortization |
1,240 | 885 | 3,726 | 2,518 | ||||||||||||
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EBITDA |
17,539 | 25,816 | 58,316 | 13,247 | ||||||||||||
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Stock-based compensation expense |
1,041 | 486 | 2,781 | 1,164 | ||||||||||||
Gain on settlement of deferred acquisition consideration (1) |
— | (951 | ) | — | (2,246 | ) | ||||||||||
Recovery of certain notes receivable from related parties (2) |
— | (1,111 | ) | (179 | ) | (1,111 | ) | |||||||||
Change in fair value of Earnout (3) |
(927 | ) | — | (3,985 | ) | — | ||||||||||
Restructuring charge (4) |
1,010 | — | 2,876 | — | ||||||||||||
Transaction cost (5) |
— | 361 | — | 929 | ||||||||||||
Loss on extinguishment of debt (6) |
1,883 | — | 1,883 | — | ||||||||||||
Write-off of a fixed asset (7) |
1,104 | — | 1,104 | — | ||||||||||||
Cancellation fee (8) |
— | — | — | 1,950 | ||||||||||||
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Adjusted EBITDA |
$ | 21,650 | $ | 24,601 | $ | 62,796 | $ | 13,933 | ||||||||
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(1) | Amounts reflect the gain recognized related to the settlement of the deferred acquisition consideration dispute with the sellers of NuTech Medical in February 2020 as well as the settlement of the assumed legacy lawsuit from the sellers of NuTech Medical in October 2020. See Note “18. Commitments and Contingencies”. |
(2) | Amounts reflect the collection of certain notes receivable from related parties previously reserved. See Note “19. Related Party Transactions”. |
(3) | Amounts reflect the change in the fair value of the Earnout liability in connection with the CPN acquisition. See Note “3. Acquisition”. |
(4) | Amounts reflect employee retention and benefits as well as the facility-related cost associated with the Company’s restructuring activities. See Note “12. Restructuring”. |
(5) | Amounts reflect legal, advisory and other professional fees incurred related directly to the CPN acquisition. See Note “3. Acquisition”. |
(6) | Amounts reflect the loss recognized on the extinguishment of the 2019 Credit Agreement upon repayment. See Note “13. Long-Term Debt Obligations”. |
(7) | Amounts reflect the write-off of certain design and consulting fees previously capitalized related to the unfinished construction work on the 275 Dan Road Building. |
(8) | Amount reflects the cancellation fee for terminating certain product development and consulting agreements the Company inherited from NuTech Medical. See Note “18. Commitments and Contingencies”. |
Three Months Ended September 30, |
Change |
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2021 |
2020 |
$ |
% |
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(in thousands, except for percentages) |
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Advanced Wound Care |
$ | 107,341 | $ | 89,990 | $ | 17,351 | 19 | % | ||||||||
Surgical & Sports Medicine |
6,412 | 10,809 | (4,397 | ) | (41 | %) | ||||||||||
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Net revenue |
$ | 113,753 | $ | 100,799 | $ | 12,954 | 13 | % | ||||||||
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Nine Months Ended September 30, |
Change |
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2021 |
2020 |
$ |
% |
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(in thousands, except for percentages) |
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Advanced Wound Care |
$ | 309,485 | $ | 201,009 | $ | 108,476 | 54 | % | ||||||||
Surgical & Sports Medicine |
30,016 | 30,482 | (466 | ) | (2 | %) | ||||||||||
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Net revenue |
$ | 339,501 | $ | 231,491 | $ | 108,010 | 47 | % | ||||||||
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Three Months Ended September 30, |
Change |
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2021 |
2020 |
$ |
% |
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(in thousands, except for percentages) |
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Cost of goods sold |
$ | 26,167 | $ | 22,964 | $ | 3,203 | 14 | % | ||||||||
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Gross profit |
$ | 87,586 | $ | 77,835 | $ | 9,751 | 13 | % | ||||||||
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Gross profit % |
77 | % | 77 | % |
Nine Months Ended September 30, |
Change |
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2021 |
2020 |
$ |
% |
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(in thousands, except for percentages) |
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Cost of goods sold |
$ | 81,602 | $ | 61,799 | $ | 19,803 | 32 | % | ||||||||
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Gross profit |
$ | 257,899 | $ | 169,692 | $ | 88,207 | 52 | % | ||||||||
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Gross profit % |
76 | % | 73 | % |
Three Months Ended September 30, |
Change |
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2021 |
2020 |
$ |
% |
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(in thousands, except for percentages) |
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Research and development |
$ | 8,953 | $ | 3,709 | $ | 5,244 | 141 | % | ||||||||
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Research and development as a percentage of net revenue |
8 | % | 4 | % |
Nine Months Ended September 30, |
Change |
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2021 |
2020 |
$ |
% |
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(in thousands, except for percentages) |
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Research and development |
$ | 22,482 | $ | 13,787 | $ | 8,695 | 63 | % | ||||||||
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Research and development as a percentage of net revenue |
7 | % | 6 | % |
Three Months Ended September 30, |
Change |
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2021 |
2020 |
$ |
% |
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(in thousands, except for percentages) |
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Selling, general and administrative |
$ | 62,369 | $ | 51,325 | $ | 11,044 | 22 | % | ||||||||
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Selling, general and administrative as a percentage of net revenue |
55 | % | 51 | % |
Nine Months Ended September 30, |
Change |
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2021 |
2020 |
$ |
% |
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(in thousands, except for percentages) |
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Selling, general and administrative |
$ | 182,950 | $ | 150,797 | $ | 32,153 | 21 | % | ||||||||
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Selling, general and administrative as a percentage of net revenue |
54 | % | 65 | % |
Three Months Ended September 30, |
Change |
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2021 |
2020 |
$ |
% |
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(in thousands, except for percentages) |
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Interest expense, net |
$ | (1,482 | ) | $ | (2,969 | ) | $ | 1,487 | (50 | %) | ||||||
Loss on extinguishment of debt |
(1,883 | ) | — | (1,883 | ) | 100 | % | |||||||||
Gain on settlement of deferred acquisition consideration |
— | 951 | (951 | ) | (100 | %) | ||||||||||
Other income (expense), net |
(19 | ) | 44 | (63 | ) | (143 | %) | |||||||||
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Total other expense, net |
$ | (3,384 | ) | $ | (1,974 | ) | $ | (1,410 | ) | 71 | % | |||||
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Nine Months Ended September 30, |
Change |
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2021 |
2020 |
$ |
% |
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(in thousands, except for percentages) |
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Interest expense, net |
$ | (6,383 | ) | $ | (8,391 | ) | $ | 2,008 | (24 | %) | ||||||
Loss on extinguishment of debt |
(1,883 | ) | — | (1,883 | ) | 100 | % | |||||||||
Gain on settlement of deferred acquisition consideration |
— | 2,246 | (2,246 | ) | (100 | %) | ||||||||||
Other income, net |
(4 | ) | 90 | (94 | ) | (104 | %) | |||||||||
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Total other expense, net |
$ | (8,270 | ) | $ | (6,055 | ) | $ | (2,215 | ) | 37 | % | |||||
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Nine Months Ended September 30, |
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2021 |
2020 |
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(in thousands) |
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Net cash provided by (used in) operating activities |
$ | 44,030 | $ | (17,749 | ) | |||
Net cash used in investing activities |
(25,993 | ) | (18,080 | ) | ||||
Net cash provided by (used in) financing activities |
(119 | ) | 12,345 | |||||
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Net change in cash and restricted cash |
$ | 17,918 | $ | (23,484 | ) | |||
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• | In 2019, we began the implementation of a new company-wide enterprise resource planning system to provide additional systematic controls and segregation of duties for our accounting processes. We anticipate that the enterprise resource planning system will go live during the first half of 2022. |
• | We have designed and implemented more effective controls throughout 2019 and 2020. |
• | We completed the risk assessment activities by evaluating whether the design of our internal controls appropriately addresses changes in the business (including changes to people, processes and systems) that could impact our system of internal controls. |
• | We designed controls that address the completeness and accuracy of any key reports utilized in the execution of internal controls. |
• | We reported regularly to the audit committee on the progress and results of control remediation. |
• | We developed and executed upon a monitoring protocol that allows the Company to validate the operating effectiveness of certain controls over financial reporting to gain assurance that such controls are present and functioning as designed. |
† |
Filed herewith |
Dated: November 9, 2021 | Organogenesis Holdings Inc. | |||||
(Registrant) | ||||||
/s/ David Francisco | ||||||
David Francisco | ||||||
Chief Financial Officer | ||||||
(Principal Financial and Accounting Officer) |
Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO EXCHANGE ACT RULE 13a-14(a) AS
ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Gary S. Gillheeney, Sr., certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Organogenesis Holdings Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: November 9, 2021 | By: | /s/ Gary S. Gillheeney, Sr. | ||||
Gary S. Gillheeney, Sr. | ||||||
Chief Executive Officer | ||||||
(Principal Executive Officer) |
Exhibit 31.2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO EXCHANGE ACT RULE 13a-14(a) AS
ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, David Francisco, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Organogenesis Holdings Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: November 9, 2021 | By: | /s/ David Francisco | ||||
David Francisco | ||||||
Chief Financial Officer | ||||||
(Principal Financial and Accounting Officer) |
Exhibit 32.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO
18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Each of the undersigned officers of Organogenesis Holdings Inc. (the Company) certifies, to his knowledge and solely for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2021 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: November 9, 2021 | By: | /s/ Gary S. Gillheeney, Sr. | ||||
Gary S. Gillheeney, Sr. | ||||||
Chief Executive Officer | ||||||
(Principal Executive Officer) | ||||||
Date: November 9, 2021 | By: | /s/ David Francisco | ||||
David Francisco | ||||||
Chief Financial Officer | ||||||
(Principal Financial and Accounting Officer) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 129,365,209 | 128,460,381 |
Common stock, shares outstanding | 128,636,661 | 127,731,833 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Statement [Abstract] | ||||
Net revenue | $ 113,753 | $ 100,799 | $ 339,501 | $ 231,491 |
Cost of goods sold | 26,167 | 22,964 | 81,602 | 61,799 |
Gross profit | 87,586 | 77,835 | 257,899 | 169,692 |
Operating expenses: | ||||
Selling, general and administrative | 62,369 | 51,325 | 182,950 | 150,797 |
Research and development | 8,953 | 3,709 | 22,482 | 13,787 |
Total operating expenses | 71,322 | 55,034 | 205,432 | 164,584 |
Income from operations | 16,264 | 22,801 | 52,467 | 5,108 |
Other expense, net: | ||||
Interest expense, net | (1,482) | (2,969) | (6,383) | (8,391) |
Loss on extinguishment of debt | (1,883) | (1,883) | ||
Gain on settlement of deferred acquisition consideration | 951 | 2,246 | ||
Other income, net | (19) | 44 | (4) | 90 |
Total other expense, net | (3,384) | (1,974) | (8,270) | (6,055) |
Net income (loss) before income taxes | 12,880 | 20,827 | 44,197 | (947) |
Income tax expense | (303) | (72) | (990) | (134) |
Net income (loss) | $ 12,577 | $ 20,755 | $ 43,207 | $ (1,081) |
Net income (loss), per share: | ||||
Basic | $ 0.10 | $ 0.20 | $ 0.34 | $ (0.01) |
Diluted | $ 0.09 | $ 0.19 | $ 0.32 | $ (0.01) |
Weighted-average common shares outstanding | ||||
Basic | 128,546,301 | 105,040,035 | 128,219,674 | 104,748,297 |
Diluted | 133,850,216 | 108,489,768 | 133,766,004 | 104,748,297 |
Nature of the Business and Basis of Presentation |
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Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business and Basis of Presentation | 1. Nature of the Business and Basis of Presentation Organogenesis Holdings Inc. (formerly Avista Healthcare Public Acquisition Corp.) (“ORGO” or the “Company”) is a leading regenerative medicine company focused on the development, manufacture, and commercialization of solutions for the Advanced Wound Care and Surgical & Sports Medicine markets. Several of the existing and pipeline products in the Company’s portfolio have Premarket Application (“PMA”) approval, Business License Applicant (“BLA”) approval or Premarket Notification 510(k) clearance from the United States Food and Drug Administration (“FDA”). The Company’s customers include hospitals, wound care centers, government facilities, ambulatory serv i ce centers (“ASCs”) and physician offices. The Company has one operating and reportable segment.COVID-19 pandemicThe emergence of the coronavirus (COVID-19) around the world, and particularly in the United States, continues to present risks to the Company. While the COVID-19 pandemic has not materially adversely affected the Company’s financial results and business operations through the third quarter ended September 30, 2021, the Company is unable to predict the impact that COVID-19 will have on its financial position and operating results because of the numerous uncertainties created by the unprecedented nature of the pandemic. The Company is closely monitoring the evolving impact of the pandemic on all aspects of its business. The Company has implemented a number of measures designed to protect the health and safety of its employees, support its customers and promote business continuity. Merger with Avista Healthcare Public Acquisition Corp On December 10, 2018, Avista Healthcare Public Acquisition Corp., our predecessor company (“AHPAC”), consummated a business combination (the “Avista Merger”) pursuant to an Agreement and Plan of Merger, dated as of August 17, 2018 (as amended, the “Avista Merger Agreement”), by and among AHPAC, Avista Healthcare Merger Sub, Inc., a direct wholly-owned subsidiary of AHPAC (“Avista Merger Sub”) and Organogenesis Inc. As a result of the Avista Merger and the other transactions contemplated by the Avista Merger Agreement, Avista Merger Sub merged with and into Organogenesis Inc., with Organogenesis Inc. surviving the Avista Merger and becoming a wholly-owned subsidiary of AHPAC. AHPAC changed its name to Organogenesis Holdings Inc. (ORGO). |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Unaudited Interim Financial Information The accompanying unaudited consolidated financial statements have been prepared by management in accordance with GAAP and the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. While we believe that the disclosures presented are adequate in order to make the information not misleading, these unaudited quarterly financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as amended (the “Annual Report”). The unaudited consolidated financial statements include the accounts and results of operations of Organogenesis Holdings Inc. and its wholly-owned subsidiaries of Organogenesis Inc., including Organogenesis GmbH (a Switzerland corporation) and Prime Merger Sub, LLC. All intercompany balances and transactions have been eliminated in consolidation. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments of a normal recurring nature necessary for a fair presentation of the Company’s financial position, results of operations and cash flows at the dates and for the periods indicated. The results for the nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021, any other interim periods, or any future years or periods. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure as of the date of the consolidated financial statements and the reported results of operations during the reporting periods. Actual results could differ from those estimates. Summary of Significant Accounting Policies The Company’s significant accounting policies are described in Note “2. Significant Accounting Policies” to the Consolidated Financial Statements included in the Annual Report. There have been no material changes to the significant accounting policies previously disclosed in the Annual Report, other than as it related to the recently adopted accounting pronouncement disclosed below. Revision to Previously Issued Financial Statements Private Warrant Reclassification On April 12, 2021, the Staff of the SEC issued a statement regarding the accounting and reporting considerations for warrants issued by special purpose acquisition companies entitled “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”)” (the “SEC Statement”). In the SEC Statement, the SEC Staff expressed its view that certain terms and conditions common to SPAC warrants may require the warrants to be classified as liabilities on the SPAC’s financial statements as opposed to equity. As of December 31, 2018, the Company had 4.1 million private warrants outstanding, which were issued to Avista Capital Partners IV, L.P. and Avista Capital Partners IV (Offshore), L.P. in connection with the Avista Merger on December 10, 2018 (the “Private Warrants”), and 31.0 million public warrants outstanding that were issued in connection with the initial public offering of Avista Healthcare Public Acquisition Corp. on October 10, 2016 (the “Public Warrants”, together with the Private Warrants, the “Warrants”). The Company originally classified the Warrants as equity on its financial statements. In 2019, the outstanding Warrants were exchanged for 3.3 million shares of the Company’s Class A common stock. There were no Warrants outstanding as of December 31, 2019. As a result of the SEC Statement, the Company reevaluated the historical accounting treatment of its Public Warrants and Private Warrants and determined that the Private Warrants should have been recorded at fair value as a liability in the Company’s consolidated balance sheet with changes to the fair value recorded to the consolidated statements of operations. The Company assessed the materiality of this error on prior period financial statements in accordance with the SEC Staff Accounting Bulletin Number 99, Materiality, and ASC 250-10, Accounting Changes and Error Corrections. The Company determined that this error was not material to the financial statements of any prior annual or interim period. The Company reclassified $ 2,299 from additional paid-in capital to accumulated deficit on the co n solidated balance sheet as of December 31, 2020 as the cumulative adjustment for this error.Right of Use Asset Amortization In August 2021, the Company identified an error in its accounting treatment for two ass To correct the immaterial misstatement, the Company revised its previously issued financial statements as follows: e ts recorded as finance leases. The Company did not record amortization expenses for these assets since the lease commencement date. This error resulted in an overstatement of property and equipment, net, and an understatement of accumulated deficit, and selling, general and administrative expenses in the financial statements included in the Company’s quarterly reports on Form 10-Q and the Company’s annual reports on Form 10-K previously filed with the SEC. The Company assessed the materiality of this error on prior period financial statements in accordance with the SEC Staff Accounting Bulletin Number 99, Materiality, and ASC 250-10, Accounting Changes and Error Corrections. The Company determined that this error was not material to the financial statements of any prior annual or interim period.
Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 12No. 2016-02 (“ASU 2016-02”), Leases (Topic 842), as further amended (“ASC 842”), to increase transparency and comparability among organizations by requiring the recognition of, at the lease commencement date, a lease liability for the obligation to make lease payments, and a right-of-use o ption (January 1, 2021) transition method and therefore did not recast prior periods. Results for reporting periods beginning on January 1, 2021 are presented under ASC 842, while prior period amounts continue to be reported and disclosed in accordance with the Company’s historical accounting treatment under Accounting Standards Codification 840, Leases (“ASC 840”). In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company: (1) to carry forward the historical lease classification; (2) not to reassess whether expired or existing contracts are or contain leases; and, (3) not to reassess the treatment of initial direct costs for existing leases. The Company made an accounting policy election under ASC 842 not to recognize the right of use assets and lease liabilities for leases with a term of months or less. The Company also elected to account for lease components and the associated non-lease components in the contracts as a single lease component for most of the leased assets. Upon the adoption of this standard on January 1, 2021, the Company recognized an operating lease liability of $ 15,935, representing the present value of the minimum lease payments remaining as of the adoption date, and a right-of-use asset in the amount of $ 13,525. The right-of-use asset reflects adjustments for de-recognition of deferred lease liabilities and lease incentives. The Company’s accounting for finance leases (previously classified as capital leases under ASC 840) remained substantially unchanged. See Note “17. Leases” for further disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). Subsequent to the issuance of ASU 2016-13, the FASB has issued the following updates: ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments- Credit Losses ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ASU 2019-05, Financial Instruments—Credit Losses (Topic 326)—Targeted Transition Relief ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses ASU 2016-13 and all the related updates is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 and the related updates are effective for fiscal years, and interim periods within those years, beginning after December 15, 2019 for public business entities excluding entities eligible to be smaller reporting companies and for fiscal years, and interim periods within those years, beginning after December 15, 2022 for all other entities. Early adoption is permitted. The Company will adopt this standard and the related improvements on January 1, 2023 by recognizing a cumulative-effect adjustment to retained earnings for any impact. The Company is currently assessing the adoption of ASU 2016-13 and the related impact on the Company’s consolidated financial statements. |
Acquisition |
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Business Combinations [Abstract] | |
Acquisition | 3. Acquisition On September 17, 2020 (the “Acquisition Date”), the Company acquired certain assets and assumed certain liabilities of CPN Biosciences, LLC (“CPN”) pursuant to an asset purchase agreement dated July 24, 2020. CPN offered a physician office management solution and advanced wound care products. The Company is obligated to pay a contingent consideration (the “Earnout”) to CPN’s former shareholders if CPN’s legacy product revenue in the Earnout Period (defined as a twelve-month period, starting on the first day of the next calendar quarter immediately following the post-closing sales meeting), exceeds CPN’s 2019 revenue. The amount of the Earnout, if any, will be equal to 70% of the excess and will be payable 60 days after the expiration of the Earnout Period. The post-closing sales meeting took place in April 2021 and the Earnout Period is July 1, 2021 to June 30, 2022. The Company recorded a
non-current liability of $3,782 on the Acquisition Date for the fair value of the contingent consideration related to the expected Earnout. The Company assesses the fair value of the Earnout liability at each reporting period. As of September 30, 2021, the Earnout liability was estimated at $0 as a result of the Company’s updated assessment of the near-term market for the CPN product portfolio. Subsequent changes in the estimated fair value of the liability are reflected in earnings until the liability is settled (see Note “5. Fair Value Measurement of Financial Instruments”). |
Product and Geographic Sales |
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Product and Geographic Sales | 4. Product and Geographic Sales The Company generates revenue through the sale of Advanced Wound Care and Surgical & Sports Medicine products. There is a single performance obligation in all of the Company’s contracts, which is the Company’s promise to transfer the Company’s products to customers based on specific payment and shipping terms in the arrangement. The entire transaction price reflects a single performance obligation. Product revenue is recognized when a customer obtains control of the Company’s products which occurs at a point in time and may be upon shipment, procedure date, or delivery, based on the terms of the contract. Revenue is recorded net of a reserve for returns, discounts and Group Purchasing Organization (“GPO”) rebates, which represent a direct reduction to the revenue recognized. These reductions are accrued at the time revenue is recognized, based upon historical experience and specific circumstances. For the three months ended September 30, 2021 and 2020, the Company recorded GPO fees of $794 and $1,013, respectively, as a direct reduction of revenue. For the nine months ended September 30, 2021 and 2020, the Company recorded GPO fees of $2,323 and $2,810, respectively, as a direct reduction of revenue. The following tables set forth revenue by product category:
For all periods presented, net revenue generated outside the United States represented less than 1% of total net revenue. |
Fair Value of Financial Assets and Liabilities |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities | 5. Fair Value of Financial Assets and Liabilities The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values as of S e ptember 30, 2021 and December 31, 2020.
Earnout Liability In connection with accounting for the CPN acquisition on September 17, 2020, the Company recorded an Earnout liability of $3,782 on the Acquisition Date, representing the fair value of contingent consideration payable upon the ach i evement of a certain revenue target. The Earnout Liability is classified as a Level 3 measurement within the fair value hierarchy for which fair value is derived from inputs that are unobservable and significant to the overall fair value measurement. The fair value of such Earnout Liability is estimated using a Monte Carlo simulation model that utilizes key assumptions including forecasted revenues and volatilities of the underlying financial metrics during the Earnout period. The Company assesses the fair value of the Earnout liability at each reporting period. Any subsequent changes in the estimated fair value of the liability are reflected in selling, general and administrative expenses until the liability is settled. For more information about the Earnout liability, refer to Note “3. Acquisition”. As of September 30, 2021, the Earnout liability decreased to $0 as a result of the Company’s updated assessment of the near-term market for the CPN product portfolio. The following table provides a roll-forward of the fair value of the Company’s Earnout liability, for which fair value is determined using Level 3 inputs:
The Company did not have any financial assets and liabilities measured at fair value on a
non-recurring basis as of September 30, 2021 and December 31, 2020. |
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Accounts Receivable, Net | 6. Accounts Receivable, Net Accounts receivable consisted of the following:
The Company’s allowance for sales returns and doubtful accounts was comprised of the following:
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Inventories |
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Inventories | 7. Inventories Inventories, net of related reserves for excess and obsolescence, consisted of the following:
Raw materials include various components used in the Company’s manufacturing process. The Company’s excess and obsolete inventory review process includes analysis of sales forecasts and historical sales as compared to inventory level, and working with operations to maximize recovery of excess inventory. During the three months ended September 30, 2021 and 2020, the Company charged $3,367 and $315, respectively, for inventory excess and obsolescence to cost of goods sold within the consolidated statements of operations. During the nine months ended September 30, 2021 and 2020, the Company charged $8,045 and $2,024, respectively, for inventory excess and obsolescence to cost of goods sold within the consolidated statements of operations. |
Prepaid Expenses and Other Current Assets |
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Prepaid Expenses and Other Current Assets | 8. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following:
Deposits are funds held by vendors which are expected to be released within twelve months and therefore they are recorded as current assets. |
Property and Equipment, Net |
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Property and Equipment, Net | 9. Property and Equipment, Net Property and equipment consisted of the following:
Depreciation expense was $1,937 and $1,135 for the three months ended September 30, 2021 and 2020. Depreciation expense was $4,010 and $3,285 for the nine months ended September 30, 2021 and 2020. As of December 31, 2020, the Company had $21,689 of buildings under finance leases recorded within leasehold improvements and had $18,716 recorded within accumulated depreciation related to these buildings. In August 2021, the Company purchased one building previously under a finance lease (see Note “17. Leases”) from a related party and removed the lease from leasehold improvements and recorded the asset to buildings. As of September 30, 2021, the Company had $17,370 of buildings under finance leases recorded within leasehold improvements and had $15,873 recorded withi n accumulated depreciation related to these buildings. Construction in progress primarily represents unfinished construction work on the aforementioned purchased building and, more recently, improvements at the Company’s leased facilities in Canton and Norwood, Massachusetts. |
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | 10. Goodwill and Intangible Assets Goodwill was $28,772 as of September 30, 2021 and December 31, 2020. Identifiable intangible assets consisted of the following as of September 30, 2021:
Identifiable intangible assets consisted of the following as of December 31, 2020:
Amortization of intangible assets, calculated on a straight-line basis or using an accelerated method, was $1,240 and $885 for the three months ended September 30, 2021 and 2020, respectively, and $3,726 and $2,518 for the nine months ended September 30, 2021 and 2020, respectively. |
Accrued Expenses and Other Current Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | 11. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following:
The accrued but unpaid lease obligations and the interest accrual on these obligations were previously included in the long-term portion of the finance lease obligations, and other liabilities as of December 31, 2020. The reclassification was due to the purchase of a building previously recorded as a finance lease from a related party (see Note “17. Leases”) and the termination of the 2019 Credit Agreement (see Note “13. Long-Term Debt Obligations”). |
Restructuring |
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Restructuring | 12. Restructuring On October 21, 2020, the Company committed to a plan to restructure the workforce and consolidate its La Jolla facilities as part of the Company’s long-term plan to consolidate manufacturing operations in Massachusetts to reduce the Company’s cost structure. The majority of the restructuring costs are expected to be incurred by the end of 2021, with certain facility and storage costs continuing through the middle of 2024. The restructuring will result in a charge of approximately $6.5 million, of which approximately $4.0 million is attributable to the retention benefits associated with approximately 65 employees and the remaining $2.5 million is related to the facility closures. As employees are required to provide future services, employee retention and other benefit-related costs related to the Company’s restructuring are expensed over the service period. As a result of this restructuring activity, the Company incurred
a pr of $1,010 and $2,876 during the three and nine months ended September 30, 2021. This charge was primarily related to employee retention benefits and was included in selling, ge -tax chargee neral and administrative expenses in the consolidated statements of operations. The liability related to the restructuring activities was $3,234 as of September 30, 2021 and was included in accrued expenses and other current liabilities in the consolidated balance sheets. The following table provides a roll-forward of the restructuring liability.
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Long-Term Debt Obligations |
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Long-term Debt, Unclassified [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt Obligations | 13. Long-Term Debt Obligations Long-term debt obligations consisted of the following:
2021 Credit Agreement In August 2021, the Company, as borrower, its subsidiaries, as guarantors, and Silicon Valley Bank (“SVB”), and the several other lenders thereto (collectively, the “Lenders”) entered into a credit agreement (the “2021 Credit Agreement”), providing for a term loan facility not to exceed $75,000 (the “Term Loan Facility”) and a revolving credit facility not to exceed $125,000 (the “Revolving Facility”). The Company’s obligations to the Lenders are secured by substantially all of Company’s assets, including intellectual property. Capitalized terms used h e rein and not otherwise defined are defined as set forth in the 2021 Credit Agreement. Advances made under the 2021 Credit Agreement may be either Eurodollar Lo a ns or ABR Loans, at the Company’s option. For Eurodollar Loans, the interest rate is a per annum interest rate equal to LIBOR plus an Applicable Margin as follows: (i) if the Total Net Leverage Ratio is greater than or equal to 3.25x, 3.25%; (ii) if the Total Net Leverage Ratio is greater than or equal to 2.50x but less than 3.25x, 2.75% ; (iii) if the Total Net Leverage Ratio is greater than or equal to 2.00x but less than 2.50x, 2.50%; (iv) if the Total Net Leverage Ratio is greater than or equal to 1.50x but less than 2.00x, 2.25% and (v) if the Total Net Leverage Ratio is less than 1.50x, 2.00%. For ABR Loans, the interest rate is equal to (1) the highest of (a) the Wall Street Journal Prime Rate, (b) the Federal Funds Rate plus 0.50% and (c) the LIBOR rate plus 1.0%, plus The 2021 Credit Agreement requires the Company to make consecutive quarterly installment payments equal to the following percentages of the original principal amount of the Term Loans: (a) from September 30, 2021 through and including June 30, 2022, 0.625(or $469) ; (b) from 1.250% (or $938); (c) from September 30, 2023 through and including June 30, 2025, 1.875% (or $1,406) and (d) from September 30, 2025 and the last day of each quarter thereafter until August 6, 2026 (the “Term Loan Maturity Date”),(or $1,875). The Company may prepay the Term Loan Facility, provided that any Term Loans prepaid prior to August 6, 2022 must be accompanied byof the aggregate amount of Term Loans prepaid. Once repaid, amounts borrowed under the Term Loan Facility may not be re-borrowed. The Company must pay in arrears, on the first day of each quarter prior to August 6, 2026 (the “Revolving Termination Date”) and on the Revolving Termination Date, a fee for the Company’s non-use of available funds in an amount equal to the Commitment Fee Rate per annum, multiplied by the difference between (x) the Total Revolving Commitments and (y) the sum of (A) the average for the period of the daily closing balance of the Revolving Loans, excluding the aggregate principal amount of Swingline Loans,(B) the aggregate undrawn amount of all Letters of Credit outstanding at such time and (c) the aggregate amount of all L/C Disbursements that have not yet been reimbursed or converted into Revolving Loans or Swingline Loans. The Commitment Fee Rate is equal to (i) if the Total Net Leverage Ratio is greater than or equal to 3.25x, 0.45%; (ii) if the Total Net Leverage Ratio is greater than or equal to 2.50x but less than 3.25x, 0.40% ; (iii) if the Total Net Leverage Ratio is greater than or equal to 2.00x but less than 2.50x, 0.35%; (iv) if the Total Net Leverage Ratio is greater than or equal to 1.50x but less than 2.00x, 0.30%; and (v) if the Total Net Leverage Ratio is 0.25%less than 1.50x, . The maturity date for advances made under the Revolving Facility is the Revolving Termination Date. The Company may elect to reduce or terminate the Revolving Facility in its entirety at any time by repaying all outstanding principal, unpaid accrued interest and, with respect to any such reduction or termination of the Revolving Commitments made prior to August 6, 2022, 1.00% of the aggregate amount of the Revolving Commitments so reduced or terminated. Under the 2021 Credit Agreement, the Company is required to comply with certain financial covenants. The Company may not permit the Consolidated Fixed Charge Coverage Ratio at the last day of any period of four consecutive fiscal quarters, commencing with the fiscal quarter ending September 30, 2021, to be less than 1.25:1.00. Additionally, the Company may not permit the Consolidated Total Net Leverage Ratio at the last day of any period of four consecutive fiscal quarters, commencing with the fiscal quarter ending September 30, 2021, to exceed the following ratios: (i) for the trailing four fiscal quarters ending September 30, 2021, December 31, 2021, March 31, 2022, June 30, 2022 and September 30, 2022, a ratio of 3.50:1.00; (ii) for the trailing four fiscal quarters ending December 31, 2022, March 31, 2023, June 30, 2023 and September 30, 2023, a ratio of 3.25:1.00; and (iii) for the trailing four fiscal quarters ending December 31, 2023 and each fiscal quarter thereafter, a ratio of 3.00:1.00. As of September 30, 2021, the Company had outstanding borrowings of $74,531 under the Term Loan Facility and $0 under the Revolving Facility with $125,000 available for future revolving borrowings. The Company recorded additional debt issuance costs and related fees of $604 in connection with the Term Loan Facility, which are recorded as a reduction of the carrying value of the term loan on the Company’s consolidated balance sheets. In connection with the Revolving Facility, the Company recorded debt issuance costs and related fees of $1,223, which are recorded as other assets. Both of these costs are being amortized to interest expenses through the maturity date of the facilities. Future payments of the 2021 Credit Agreement, as of September 30, 2021, are as follows for the calendar years ending December 31:
2019 Credit Agreement In March 2019 , the Company, its subsidiaries and SVB, and the several other lenders thereto entered into a credit agreement, as amended (the “2019 Credit Agreement”), providing for a term loan facility of $ 40,000 and a revolving credit facility of up to $ 60,000. Both facilities w ere set to mature in 2024. The interest rate for the term loan facility was a floating per annum interest rate equal to the greater of 3.75% above the Wall Street Journal Prime Rate and 9.25%. The interest rate for advances under the revolving facility was a floating per annum interest rate equal to the greater of the Wall Street Journal Prime Rate and 5.50%. If the Company elected to prepay the loan or terminate the facilities, the Company was required to pay a certain percentage of the outstanding principal as a prepayment fee. A final payment fee (the “Final Payment”) of 6.5% multiplied by the original aggregate principal amount of term loan facility was due upon the earlier to occur of the maturity date of the term loan or prepayment of all outstanding principal. In August 2021, upon entering into the 2021 Credit Agreement, the Company paid an aggregate amount of $70,559 due under the 2019 Credit Agreement, including unpaid principal, accrued interest, the Final Payment and a prepayment fee, with proceeds from the 2021 Credit Agreement, and the 2019 Credit Agreement was terminated. Upon termination of the 2019 Credit Agreement, the Company recognized $1,883 as loss on the extinguishment of the loan for the three and nine months ended September 30, 2021. |
Stockholders' Equity |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | 14. Stockholders’ Equity Common Stock As of September 30, 2021, the Company was authorized to issue 400,000,000 shares of $0.0001 par value Class A common stock and 1,000,000 shares of $0.0001 par value preferred stock. 129,365,209 shares of Class A common stock were issued and 128,636,661 shares were outstanding as of September 30, 2021. No shares of preferred stock were outstanding as of September 30, 2021. The issued shares of Class A common stock include 728,548 treasury shares that were reacquired in connection with the redemption of redeemable shares in March 2019. As of September 30, 2021 and December 31, 2020, the Company reserved the following shares of Class A common stock for future issuance:
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Stock-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | 15. Stock-Based Compensation Stock Incentive Plans-the 2018 Plan On November 28, 2018, the Board of Directors of the Company adopted, and on December 10, 2018, the Company’s stockholders approved, the Organogenesis 2018 Equity and Incentive Plan (the “2018 Plan”). The purposes of the 2018 Plan are to provide long-term incentives and rewards to the Company’s employees, officers, directors and other key persons (including consultants), to attract and retain persons with the requisite experience and ability, and to more closely align the interests of such employees, officers, directors and other key persons with the interests of the Company’s stockholders. The 2018 Plan authorizes the Company’s Board of Directors or a committee of not less than two independent directors (in either case, the “Administrator”) to grant the following types of awards: non-statutory stock options; incentive stock options; restricted stock awards; restricted stock units; stock appreciation rights; unrestricted stock awards; performance share awards; and dividend equivalent rights. The 2018 Plan is administered by the Company’s Board of Directors. As of September 30, 2021, a total of 9,198,996 shares of Class A common stock have been authorized to be issued under the 2018 Plan (subject to adjustment in the case of any stock dividend, stock split, reverse stock split, or similar change in capitalization of the Company). Stock Incentive Plans-the 2003 PlanThe Organogenesis 2003 Stock Incentive Plan (the “2003 Plan”), provides for the Company to issue restricted stock awards, or to grant incentive stock options or non-statutory stock options. Incentive stock options may be granted only to the Company’s employees. Restricted stock awards and non-statutory stock options may be granted to employees, members of the Board of Directors, outside adviso rs and consultants of the Company. Effective as of the closing of the Avista Merger on December 10, 2018, no additional awards may be made under the 2003 Plan and as a result (i) any shares in respect of stock options that are expired or terminated under the 2003 Plan without having been fully exercised will not be available for future awards; (ii) any shares in respect of restricted stock that are forfeited to, or otherwise repurchased by the Company, will not be available for future awards; and (iii) any shares of common stock that are tendered to the Company by a participant to exercise an award will not be available for future awards. Stock-Based Compensation Expense Stock options awarded under the stock incentive plans expire 10 years after the grant date and typically vest over four or five years. Restricted stock units awarded typically vest over four years. Stock-based compensation expense was $1,041 and $486 for the three months ended September 30, 2021 and 2020, respectively, and was $2,781 and $1,164 for the nine months ended September 30, 2021 and 2020, respectively. The total amount of stock-based compensation expense was included within selling, general and administrative expenses on the consolidated statements of operations. Restricted Stock Units (RSUs) In the nine months ended September 30, 2021, the Company granted 299,352 time-based restricted stock units to its employees, executives and the Board of Directors. Each restricted stock unit represents the contingent right to receive one share of the Company’s common stock. A majority of the restricted stock units will vest in four equal annual installments. The fair value of the restricted stock units was based on the fair market value of the Company’s stock on the date of grant. The activity of restricted stock units is set forth below:
As of September 30, 2021, the total unrecognized compensation cost related to unvested restricted stock units expected to vest was $3,559 and the weighted average remaining recognition period for unvested awards was 2.92 years. Stock Option Valuation The stock options granted during the nine months ended September 30, 2021 and 2020 were 1,069,658 and 1,553,723 respectively. The assumptions that the Company used to determine the grant-date fair value of stock options granted during these periods were as follows, presented on a weighted-average basis:
These assumptions resulted in an estimated weighted-average grant-date fair value per share of stock options granted during the nine months ended September 30, 2021 and 2020 of $5.32 and $1.05, respectively. Stock Option Activity The following table summarizes the Company’s stock option activity since December 31, 2020:
The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s Class A common stock for those stock options that have exercise prices lower than the fair value of the Company’s Class A common stock. The total fair value of options vested during the nine months ended September 30, 2021 and 2020 was $592 and $387, respectively. As of September 30, 2021, the total unrecognized stock compensation expense related to unvested stock options expected to vest was $4,431 and was expected to be recognized over a weighted-average period of 3.10 years. Between 2010 and 2013, a former executive took several partial recourse notes totaling $635 to exercise his 675,990 shares of stock options. The notes were secured with these shares held by the former executive. When the loans were outstanding, the options were not considered exercised and were included within the options outstanding for accounting purposes. As of December 31, 2020, $334 of the principal balance of the partial recourse notes was outstanding and 195,278 shares were not considered outstanding for accounting purposes. In the three months ended March 31, 2021, the former executive repaid the remaining principal balance of the notes (see Note “19. Related Parties Transactions”). The repayments were treated as the exercise price for the 195,278 shares of the options and were included in the consolidated statement of stockholders’ equity. As of September 30, 2021, none of the partial recourse notes was outstanding and all of the 675,990 shares used to secure the notes were considered outstanding for accounting purposes. |
Net Income (Loss) Per Share (EPS) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) per Share (EPS) | 16. Net Income (Loss) per Share (EPS) Basic EPS is calculated by dividing net income (loss) by the weighted-average number of shares outstanding during the period. Diluted EPS is calculated by dividing net income (loss) by the weighted-average number of shares outst a nding plus the dilutive effect, if any, of outstanding equity awards using the treasury stock method which includes consideration of unrecognized compensation expenses as additional proceeds.A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net income (loss) attributable to the common stockholders of Organogenesis Holdings Inc. is as follows.
For the three and nine months ended September 30, 2021, outstanding stock-based awards of 956,466 were excluded from the diluted EPS calculation. For the three months ended September 30, 2020, outstanding stock-based awards of 2,009,245 were excluded from the diluted EPS calculation. For the nine months ended September 30, 2020, the Company had a net loss. As such, 8,283,893 shares of potentially dilutive securities were excluded from the computation of diluted net loss per share as these securities had anti-dilutive effects and including them would reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders was the same for this period. |
Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | 17. Leases As of December 31, 2020 and September 30, 2021, the Company’s contracts that contained a lease consisted primarily of real estate, equipment and vehicle leases. The Company leases real estate for office, lab and production space under noncancelable operating and finance leases that expire at various dates through 2031, subject to the Company’s options to terminate or renew certain leases for an additional toThe Company leases vehicles under operating leases for certain employees and has fleet services agreements for service on these vehicles. The minimum lease term for each newly leased vehicle is 367 days with renewal options. The Company may terminate the vehicle lease after the minimum lease term upon thirty days’ prior notice. The Company also leases other equipment under noncancelable operating and finance leases that expire at various dates through 2025. The Company determines if an arrangement is a lease at lease inception. The options to extend or terminate a lease are included in the lease terms when it is reasonably certain that the Company will exercise the options. Operating leases are included in operating lease right-of-use assets lease right-of-use assets Right-of-use assets leases. Right-of-use assets a se liabilities are recognized based on the present value of the fixed lease payments over the lease term at the commencement date. The right-of-use assets made at or before the commencement date and are reduced by lease incentives. The Company uses its incremental borrowing rate as the discount rate to determine the present value of the lease payments for leases that do not have a readily determinable implicit discount rate. The Company’s incremental borrowing rate is the rate of interest that it would have to borrow on a collateralized basis over a similar term and amount in a similar economic environment. The Company determines the incremental borrowing rates for its leases by adjusting the risk-free interest rate with a credit risk premium corresponding to the Company’s credit rating. The Company records rent expense for its operating leases on a straight-line basis from the lease commencement date until the end of the lease term. The Company records finance lease cost as a combination of the depreciation expense for the right-of-use assets initial right-of-use assets In August 2020, the Company entered into a lease for approximately 23,000 square feet in San Diego, California for office and laboratory use. The lease commenced on April 1, 2021. The initial lease term is ten years from the lease commencement date, with an option to extend the term for a period of five years. Annual lease payments during the first year are $1,562 with a 3% increase each year during the lease term. A security deposit of $237 is required throughout the term of the lease. On January 1, 2013, the Company entered into finance lease arrangements with 65 Dan Road SPE, LLC, 85 Dan Road Associates, LLC, Dan Road Equity I, LLC and 275 Dan Road SPE, LLC for office and laboratory space in Canton, Massachusetts. 65 Dan Road SPE, LLC, 85 Dan Road Associates, LLC, Dan Road Equity I, LLC and 275 Dan Road SPE, LLC are related parties as the owners of these entities are also stockholders of the Company. The leases terminate on December 31, 2022 and each contains a renewal option for a five-year period with the rental rate at the greater of (i) rent for the last year of the prior term, or (ii) the then fair market value. Notice of the exercise of this renewal option is due one year prior to the expiration of the initial term. Excluding the lease with 275 Dan Road SPE, LLC which was terminated in August 2021 discussed below, aggregate annual lease payments are approximately $ As of September 30, 2021 and December 31, 2020, the Company owed an aggregate of $10,336 of accrued but unpaid lease obligations that include rent in arrears and unpaid operating and common area maintenance costs under the aforementioned leases. Effective April 1, 2019, the Company agreed to accrue interest on the accrued but unpaid lease obligations at an interest rate equal to the rate charged in the 2019 Credit Agreement. These accrued but unpaid lease obligations as well as the accrued interest on these obligations were subordinated to the 2019 Credit Agreement. With the termination of the 2019 Credit Agreement and the execution of the 2021 Credit Agreement (see Note “13. Long-Term Debt Obligations”) in August 2021, these obligations are no longer subordinated to the Company’s existing loans. In August 2021, the Company purchased the building (the “275 Dan Road Building”) under the lease with 275 Dan Road SPE, LLC for $6,013 and the lease was terminated. The Company recorded an asset of $4,943 to buildings within fixed asset, net in accordance with ASC 842-20-40-2 Purchase of the Underlying Asset for the purchase of the leased asset . The asset value includes $408 net book value of the right of use asset removed from leasehold improvement and the difference of $4,535 between the cash paid and the lease liability extinguished. In connection with the purchase of the 275 Dan Road Building, the Company is required to payThe principal portion of rent in arrears totaled $7,393 and $6,946 as of September 30, 2021 and December 31, 2020, respectively. This liability was included in the short-term portion of finance lease obligations other than the balance related to the 275 Dan Road Building that was primarily included in accrued expenses and other current liabilities on the consolidated balance sheet. The interest portion of rent in arrears totaled $2,384 and $2,865 as of September 30, 2021 and December 31, 2020, respectively. The unpaid operating and common area maintenance costs totaled $558 and $525 as of September 30, 2021 and December 31, 2020, respectively. The accrued interest on the accrued but unpaid lease obligations totaled $2,357 and $1,673 as of September 30, 2021 and December 31, 2020, respectively. The above-mentioned mentioned liabilities were included in accrued expenses and other current liabilities and other liabilities on the consolidated balance sheet. The components of lease cost were as follows:
Supplemental balance sheet information related to finance le a ses was as follows:
Supplemental cash flow information related to leases was as follows:
As of September 30, 2021, the maturities of lease liabilities were as follows:
Under ASC 840, for the three and nine months ended September 30, 2020, the Company recorded lease expenses of $1,620 and $4,971, respectively for operating leases. |
Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | 18. Commitments and Contingencies Royalty Commitments The Company entered into a license agreement with a university for certain patent rights related to the development, use, and production of one of its advanced wound care products. Under this agreement, the Company incurred a royalty based on a percentage of net product sales, for the use of these patents until the patents expired, which was in November 2006. Accrued royalties totaled $1,187 as of September 30, 2021 and December 31, 2020, respectively, and were classified as part of accrued expenses on the Company’s consolidated balance sheets. There was no royalty expense incurred during the three and nine months end e d September 30, 2021 or 2020 related to this agreement. In October 2017, the Company entered into a license agreement with a third party. Under the license agreement, the Company is required to pay royalties based on a percentage of net sales of the licensed product that occur, after December 31, 2017, through the expiration of the underlying patent in October 2026, subject to minimum royalty payment provisions. The Company recorded royalty expense of $1,707 and $1,201 during the three months ended September 30, 2021 and 2020, respectively, and $4,062 and $3,020 As part of the NuTech Medical acquisition, the Company inherited certain product development and consulting agreements for ongoing consulting services and royalty payments based on a percentage of net sales on certain products over a period of 15 years from the execution of the agreements. These product development and consulting agreements were canceled in January 2020 for total consideration of $1,950 that was paid on February 14, 2020. The $1,950 cancellation fee was recorded within selling, general and administrative expenses on the consolidated statement of operations for the nine months ended September 30, 2020. Legal Proceedings In conducting its activities, the Company, from time to time, is subject to various claims and also has claims against others. In management’s opinion, the ultimate resolution of such claims would not have a material effect on the financial position, operating results or cash flows of the Company. The Company accrues for these claims when am o unts due are probable and estimable. The Company accrued $150 as of September 30, 2021 and December 31, 2020 for certain pending lawsuits. The purchase price for NuTech Medical acquired in 2017 included $7,500 deferred acquisition consideration of which the Company paid $2,500 in 2017. The remaining $5,000 of deferred acquisition consideration plus accrued interest owed to the sellers of NuTech Medical was previously in dispute. In February 2020, the Company entered into a settlement agreement with the sellers of NuTech Medical and settled the dispute for $4,000, of which, $2,000 was paid immediately on February 24, 2020 and the remaining $2,000 was paid in four quarterly installments of $500 each. As of March 31, 2021, the entire settlement was paid off. In addition, the Company assumed from the sellers of NuTech Medical the payment responsibilities related to a legacy lawsuit existing at the acquisition date of NuTech Medical. The assumed legacy lawsuit was settled in October 2020. In connection with the settlement of the deferred acquisition consideration dispute and the legacy lawsuit, the Company recorded a gain of $1,295 and $951 for the three months ended March 31, 2020 and September 30, 2020, respectively. The gain was included as a component of other expense, net, on the consolidated statement of operations. |
Related Party Transactions |
9 Months Ended |
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Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 19. Related Party Transactions Finance lease obligations to affiliates, including accrued but unpaid lease obligations, and purchase of an asset under a finance lease with an affiliate are further described in Note “17. Leases”. During 2010, the Company’s Board of Directors approved a loan program that permitted the Company to make loans to three executives of the Company (the “Employer Loans”) to (i) provide them with liquidity (“Liquidity Loans”) and (ii) fund the ex e rcise of vested stock options (“Option Loans”). Two of the executives left the Company in 2014. The Employer Loans matured with all principal and accrued interest due on the tenth anniversary of the issuance date of each subject loan. Interest on the Employer Loans was at various rates ranging from 2.30%—3.86% per annum, compounded annually. The Employer Loans were secured by shares of the Company’s Class A common stock held by the former executives. With respect to the Liquidity Loans, the Company had no personal recourse against the borrowers beyond the pledged shares. As of December 31, 2020, Liquidity Loans and Option Loans to one former executive were outstanding with an aggregate principal balance of $100 and $334, respectively. During the three months ended March 31, 2021, this former executive paid off the outstanding principal balance of his Employer Loans and the related interest receivable. As a result, the Company recorded $179 as a recovery of the previously reserved related party receivables within selling, general and administrative expenses on the consolidated statement of operations for the nine months ended September 30, 2021. The $334 of the repaid principal balance of the Option Loans was recorded to equity. See Note “15. Share-Based Compensation”. |
Taxes |
9 Months Ended |
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Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Taxes | 20. Taxes The Company is principally subject to taxation in the United States. The Company has a history of net operating losses both federally and in various states and began utilizing those losses to offset current taxable income in 2020. The Company’s wholly-owned Swiss subsidiary, Organogenesis GmbH, is subject to taxation in Switzerland and generally has profits as a result of a transfer pricing arrangement in place with Organogenesis Inc., its U.S. parent and a wholly-owned subsidiary of the Company. The income tax rate for the nine months ended September 30, 2021 varied from the U.S. statutory rate of 21% primarily due to the utilization of net operating losses federally and in many states as well as the cash taxes in Switzerland. The Company maintains a full valuation allowance against its U.S. deferred tax assets and as such, the Company’s provision for income taxes primarily relates to cash taxes to be paid in certain states where the net operating losses are expected to be fully utilized or limited based on state statute. Income tax expense for the nine months ended September 30, 2021 was $990, which included a discrete tax expense of $31 related to the interest on certain uncertain tax positions. Income tax expense for the nine months ended September 30, 2020 was $134 and related primarily to state and foreign taxes. The Company examines all positive and negative evidence to estimate whether sufficient future taxable income in the U.S. will be generated to permit the use of existing deferred tax assets. The Company has significant negative evidence in the form of cumulative losses and believes that it is more likely than not that these United States deferred tax assets will not be util i zed. As such, the Company maintained the valuation allowance against its U.S. deferred tax asset as of September 30, 2021. There are no material deferred tax assets in the other jurisdictions. On a quarterly basis, the Company reassesses the valuation allowance on deferred income tax assets, weighing positive and negative evidence to assess the recoverability of the deferred tax assets. After assessing both the positive and negative evidence, the Company may determine it is more likely than not the deferred tax assets would be realized in the future and the Company would therefore release all or a portion of the valuation allowance related to the net operating loss carryforwards and other deferred tax assets. The Company will perform a study to determine if ownership changes, as defined by the Internal Revenue Code, have occurred that have limited the amount of net operating losses and research and development tax credit carryforwards that can be utilized annually to offset future taxable income. |
Subsequent Events |
9 Months Ended |
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Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Events The Company has evaluated subsequent events through November 9, 2021, the date on which these consolidated financial statements were issued has determined that there were no such events to report. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying unaudited consolidated financial statements have been prepared by management in accordance with GAAP and the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. While we believe that the disclosures presented are adequate in order to make the information not misleading, these unaudited quarterly financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as amended (the “Annual Report”). The unaudited consolidated financial statements include the accounts and results of operations of Organogenesis Holdings Inc. and its wholly-owned subsidiaries of Organogenesis Inc., including Organogenesis GmbH (a Switzerland corporation) and Prime Merger Sub, LLC. All intercompany balances and transactions have been eliminated in consolidation. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments of a normal recurring nature necessary for a fair presentation of the Company’s financial position, results of operations and cash flows at the dates and for the periods indicated. The results for the nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021, any other interim periods, or any future years or periods. |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure as of the date of the consolidated financial statements and the reported results of operations during the reporting periods. Actual results could differ from those estimates. |
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Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The Company’s significant accounting policies are described in Note “2. Significant Accounting Policies” to the Consolidated Financial Statements included in the Annual Report. There have been no material changes to the significant accounting policies previously disclosed in the Annual Report, other than as it related to the recently adopted accounting pronouncement disclosed below. |
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Revision to Previously Issued Financial Statements | Revision to Previously Issued Financial Statements Private Warrant Reclassification On April 12, 2021, the Staff of the SEC issued a statement regarding the accounting and reporting considerations for warrants issued by special purpose acquisition companies entitled “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”)” (the “SEC Statement”). In the SEC Statement, the SEC Staff expressed its view that certain terms and conditions common to SPAC warrants may require the warrants to be classified as liabilities on the SPAC’s financial statements as opposed to equity. As of December 31, 2018, the Company had 4.1 million private warrants outstanding, which were issued to Avista Capital Partners IV, L.P. and Avista Capital Partners IV (Offshore), L.P. in connection with the Avista Merger on December 10, 2018 (the “Private Warrants”), and 31.0 million public warrants outstanding that were issued in connection with the initial public offering of Avista Healthcare Public Acquisition Corp. on October 10, 2016 (the “Public Warrants”, together with the Private Warrants, the “Warrants”). The Company originally classified the Warrants as equity on its financial statements. In 2019, the outstanding Warrants were exchanged for 3.3 million shares of the Company’s Class A common stock. There were no Warrants outstanding as of December 31, 2019. As a result of the SEC Statement, the Company reevaluated the historical accounting treatment of its Public Warrants and Private Warrants and determined that the Private Warrants should have been recorded at fair value as a liability in the Company’s consolidated balance sheet with changes to the fair value recorded to the consolidated statements of operations. The Company assessed the materiality of this error on prior period financial statements in accordance with the SEC Staff Accounting Bulletin Number 99, Materiality, and ASC 250-10, Accounting Changes and Error Corrections. The Company determined that this error was not material to the financial statements of any prior annual or interim period. The Company reclassified $ 2,299 from additional paid-in capital to accumulated deficit on the co n solidated balance sheet as of December 31, 2020 as the cumulative adjustment for this error.Right of Use Asset Amortization In August 2021, the Company identified an error in its accounting treatment for two ass To correct the immaterial misstatement, the Company revised its previously issued financial statements as follows: e ts recorded as finance leases. The Company did not record amortization expenses for these assets since the lease commencement date. This error resulted in an overstatement of property and equipment, net, and an understatement of accumulated deficit, and selling, general and administrative expenses in the financial statements included in the Company’s quarterly reports on Form 10-Q and the Company’s annual reports on Form 10-K previously filed with the SEC. The Company assessed the materiality of this error on prior period financial statements in accordance with the SEC Staff Accounting Bulletin Number 99, Materiality, and ASC 250-10, Accounting Changes and Error Corrections. The Company determined that this error was not material to the financial statements of any prior annual or interim period.
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Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 12No. 2016-02 (“ASU 2016-02”), Leases (Topic 842), as further amended (“ASC 842”), to increase transparency and comparability among organizations by requiring the recognition of, at the lease commencement date, a lease liability for the obligation to make lease payments, and a right-of-use o ption (January 1, 2021) transition method and therefore did not recast prior periods. Results for reporting periods beginning on January 1, 2021 are presented under ASC 842, while prior period amounts continue to be reported and disclosed in accordance with the Company’s historical accounting treatment under Accounting Standards Codification 840, Leases (“ASC 840”). In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company: (1) to carry forward the historical lease classification; (2) not to reassess whether expired or existing contracts are or contain leases; and, (3) not to reassess the treatment of initial direct costs for existing leases. The Company made an accounting policy election under ASC 842 not to recognize the right of use assets and lease liabilities for leases with a term of months or less. The Company also elected to account for lease components and the associated non-lease components in the contracts as a single lease component for most of the leased assets. Upon the adoption of this standard on January 1, 2021, the Company recognized an operating lease liability of $ 15,935, representing the present value of the minimum lease payments remaining as of the adoption date, and a right-of-use asset in the amount of $ 13,525. The right-of-use asset reflects adjustments for de-recognition of deferred lease liabilities and lease incentives. The Company’s accounting for finance leases (previously classified as capital leases under ASC 840) remained substantially unchanged. See Note “17. Leases” for further disclosures. |
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Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). Subsequent to the issuance of ASU 2016-13, the FASB has issued the following updates: ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments- Credit Losses ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ASU 2019-05, Financial Instruments—Credit Losses (Topic 326)—Targeted Transition Relief ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses ASU 2016-13 and all the related updates is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 and the related updates are effective for fiscal years, and interim periods within those years, beginning after December 15, 2019 for public business entities excluding entities eligible to be smaller reporting companies and for fiscal years, and interim periods within those years, beginning after December 15, 2022 for all other entities. Early adoption is permitted. The Company will adopt this standard and the related improvements on January 1, 2023 by recognizing a cumulative-effect adjustment to retained earnings for any impact. The Company is currently assessing the adoption of ASU 2016-13 and the related impact on the Company’s consolidated financial statements. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Revision Of Previously Issued Financial Statements To Correct The Immaterial Misstatement | To correct the immaterial misstatement, the Company revised its previously issued financial statements as follows:
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Product and Geographic Sales (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue by Product Category | The following tables set forth revenue by product category:
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Fair Value of Financial Assets and Liabilities (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values as of S e ptember 30, 2021 and December 31, 2020.
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Summary of Fair Value of Earnout liability | The following table provides a roll-forward of the fair value of the Company’s Earnout liability, for which fair value is determined using Level 3 inputs:
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Accounts Receivable, Net (Tables) |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accounts receivable | Accounts receivable consisted of the following:
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Schedule of allowance for sales returns and doubtful accounts | The Company’s allowance for sales returns and doubtful accounts was comprised of the following:
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Inventories (Tables) |
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Schedule of Inventory, Current | Inventories, net of related reserves for excess and obsolescence, consisted of the following:
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Prepaid Expenses and Other Current Assets (Tables) |
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Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets consisted of the following:
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Property and Equipment, Net (Tables) |
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Property and Equipment, Net | Property and equipment consisted of the following:
Depreciation expense was $1,937 and $1,135 for the three months ended September 30, 2021 and 2020. Depreciation expense was $4,010 and $3,285 for the nine months ended September 30, 2021 and 2020. As of December 31, 2020, the Company had $21,689 of buildings under finance leases recorded within leasehold improvements and had $18,716 recorded within accumulated depreciation related to these buildings. In August 2021, the Company purchased one building previously under a finance lease (see Note “17. Leases”) from a related party and removed the lease from leasehold improvements and recorded the asset to buildings. As of September 30, 2021, the Company had $17,370 of buildings under finance leases recorded within leasehold improvements and had $15,873 recorded withi n accumulated depreciation related to these buildings. Construction in progress primarily represents unfinished construction work on the aforementioned purchased building and, more recently, improvements at the Company’s leased facilities in Canton and Norwood, Massachusetts. |
Goodwill and Intangible Assets (Tables) |
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Schedule of Finite-Lived Intangible Assets | Identifiable intangible assets consisted of the following as of September 30, 2021:
Identifiable intangible assets consisted of the following as of December 31, 2020:
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Accrued Expenses and Other Current Liabilities (Tables) |
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Schedule of Accounts Payable and Accrued Liabilities | Accrued expenses and other current liabilities consisted of the following:
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Restructuring (Tables) |
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Summary of Restructuring Liability | The following table provides a roll-forward of the restructuring liability.
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Long-Term Debt Obligations (Tables) |
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Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt obligations | Long-term debt obligations consisted of the following:
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Schudle of future payments of term loan facility | Future payments of the 2021 Credit Agreement, as of September 30, 2021, are as follows for the calendar years ending December 31:
2019 Credit Agreement In March 2019 , the Company, its subsidiaries and SVB, and the several other lenders thereto entered into a credit agreement, as amended (the “2019 Credit Agreement”), providing for a term loan facility of $ 40,000 and a revolving credit facility of up to $ 60,000. Both facilities w ere set to mature in 2024. The interest rate for the term loan facility was a floating per annum interest rate equal to the greater of 3.75% above the Wall Street Journal Prime Rate and 9.25%. The interest rate for advances under the revolving facility was a floating per annum interest rate equal to the greater of the Wall Street Journal Prime Rate and 5.50%. If the Company elected to prepay the loan or terminate the facilities, the Company was required to pay a certain percentage of the outstanding principal as a prepayment fee. A final payment fee (the “Final Payment”) of 6.5% multiplied by the original aggregate principal amount of term loan facility was due upon the earlier to occur of the maturity date of the term loan or prepayment of all outstanding principal. |
Stockholders' Equity (Tables) |
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Schedule Of Common Stock Shares Reserved For Future Issuance | As of September 30, 2021 and December 31, 2020, the Company reserved the following shares of Class A common stock for future issuance:
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Stock-Based Compensation (Tables) |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Unvested Restricted Stock Units | The activity of restricted stock units is set forth below:
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Schedule of Fair Value of Stock Options Granted to Employees and Directors | The assumptions that the Company used to determine the grant-date fair value of stock options granted during these periods were as follows, presented on a weighted-average basis:
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Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity since December 31, 2020:
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Net Income (Loss) Per Share (EPS) (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net income (loss) attributable to the common stockholders of Organogenesis Holdings Inc. is as follows.
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Leases (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Cost | The components of lease cost were as follows:
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Summary of Balance Sheet Information Related To Finance Leases | Supplemental balance sheet information related to finance le a ses was as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Cash Flow Information Related To Leases | Supplemental cash flow information related to leases was as follows:
|
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Summary of Maturities of Lease Liabilities | As of September 30, 2021, the maturities of lease liabilities were as follows:
|
Nature of the Business and Basis of Presentation - Additional Information (Detail) |
9 Months Ended |
---|---|
Sep. 30, 2021
Segments
| |
Liquidity and Financial Conditions [Line Items] | |
Number of Operating Segments | 1 |
Number of Reportable Segments | 1 |
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Jan. 01, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|---|
Significant Accounting Policies [Line Items] | |||||
Lease liabilities, Term | 12 months | ||||
Operating lease liability | $ 28,871 | $ 15,935 | |||
Right-of-use asset | 26,522 | $ 13,525 | |||
Number of Warrants | 0 | ||||
Retained Earnings Accumulated Deficit | $ (111,828) | $ (155,035) | |||
Error Correction, Warrant | |||||
Significant Accounting Policies [Line Items] | |||||
Retained Earnings Accumulated Deficit | $ 2,299 | ||||
Common Class A | |||||
Significant Accounting Policies [Line Items] | |||||
Number of common stock issuable | 3,300,000 | ||||
Private Warrants | |||||
Significant Accounting Policies [Line Items] | |||||
Number of Warrants | 4,100,000 | ||||
Public Warrant | |||||
Significant Accounting Policies [Line Items] | |||||
Number of Warrants | 31,000,000.0 |
Acquisition - Additional Information (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 17, 2020 |
---|---|---|---|
Business Acquisitions, Contingent Consideration Liability Noncurrent | $ 0 | $ 3,985 | $ 3,782 |
CPN Biosciences, LLC | |||
Earnout Calculation | 70.00% |
Product and Geographic Sales - Schedule of Revenue by Product Category (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Total revenue | $ 113,753 | $ 100,799 | $ 339,501 | $ 231,491 |
Advanced Wound Care | ||||
Total revenue | 107,341 | 89,990 | 309,485 | 201,009 |
Surgical & Sports Medicine | ||||
Total revenue | $ 6,412 | $ 10,809 | $ 30,016 | $ 30,482 |
Product and Geographic Sales - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Significant Accounting Policies [Line Items] | ||||
GPO Fees | $ 794 | $ 1,013 | $ 2,323 | $ 2,810 |
Sales Revenue | Geographic Concentration Risk | International | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 1.00% |
Fair Value of Financial Assets and Liabilities - Financial Assets And Liabilities Measured At Fair Value (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 17, 2020 |
---|---|---|---|
Liabilities: | |||
Liabilities | $ 0 | $ 3,985 | $ 3,782 |
Fair Value, Measurements, Recurring | |||
Liabilities: | |||
Liabilities | 0 | 3,985 | |
Fair Value, Measurements, Recurring | Earnout Liability [Member] | |||
Liabilities: | |||
Liabilities | 0 | 3,985 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||
Liabilities: | |||
Liabilities | 0 | 3,985 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Earnout Liability [Member] | |||
Liabilities: | |||
Liabilities | $ 0 | $ 3,985 |
Fair Value of Financial Assets and Liabilities - Fair value of the Company's Earnout liability (Detail) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2021
USD ($)
| |
Business Acquisition, Contingent Consideration [Line Items] | |
Change in fair value | $ (3,985) |
Fair Value, Inputs, Level 3 | Earnout Liability [Member] | |
Business Acquisition, Contingent Consideration [Line Items] | |
Beginning balance | 3,985 |
Change in fair value | (3,985) |
Ending balance | $ 0 |
Fair Value of Financial Assets and Liabilities - Additional Information (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 17, 2020 |
---|---|---|---|
Earnout liability | $ 0 | $ 3,985 | $ 3,782 |
Accounts Receivable, Net (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Receivables [Abstract] | ||
Accounts receivable | $ 81,925 | $ 61,792 |
Less — allowance for sales returns and doubtful accounts | (7,342) | (4,988) |
Accounts receivable | $ 74,583 | $ 56,804 |
Accounts Receivable, Net - Sales Returns and Doubtful Accounts (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Balance at beginning of period | $ 7,113 | $ 3,928 | $ 4,988 | $ 3,049 |
Additions | 704 | 1,589 | 2,862 | 2,559 |
Write-offs | (475) | (392) | (508) | (483) |
Balance at end of period | $ 7,342 | $ 5,125 | $ 7,342 | $ 5,125 |
Inventories (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Raw materials | $ 8,761 | $ 10,075 |
Work in process | 2,144 | 1,305 |
Finished goods | 18,590 | 16,419 |
Inventory | $ 29,495 | $ 27,799 |
Inventories - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Inventory reserve and obsolescence charged to cost of goods | $ 3,367 | $ 315 | $ 8,045 | $ 2,024 |
Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Subscriptions | $ 2,091 | $ 2,013 |
Conferences and marketing expenses | 623 | 63 |
Deposits | 1,185 | 1,438 |
Reimbursement of offering expenses | 0 | 1,009 |
Insurance | 997 | 240 |
Other | 137 | 172 |
Prepaid Expense | $ 5,033 | $ 4,935 |
Property and Equipment, Net (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Property, Plant and Equipment, Gross | $ 102,689 | $ 87,810 |
Accumulated depreciation and amortization | (73,894) | (73,797) |
Property and equipment net | 74,774 | 55,792 |
Leasehold improvements | ||
Property, Plant and Equipment, Gross | 45,050 | 39,574 |
Building | ||
Property, Plant and Equipment, Gross | 4,943 | |
Furniture, computers and equipment | ||
Property, Plant and Equipment, Gross | 52,696 | 48,236 |
Construction in progress | ||
Property and equipment net | $ 45,979 | $ 41,779 |
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Depreciation expense | $ 1,937 | $ 1,135 | $ 4,010 | $ 3,285 | |
Leasehold improvements | |||||
Finance leases recorded within leasehold improvements | 17,370 | 17,370 | $ 21,689 | ||
Accumulated depreciation to finance lease asset recorded within leasehold improvement | $ 15,873 | $ 15,873 | $ 18,716 |
Goodwill and Intangible Assets - Identifiable intangible assets (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Original Cost | $ 46,400 | $ 46,400 |
Accumulated Amortization | (19,504) | (15,778) |
Net Book Value | 26,896 | 30,622 |
Developed technology | ||
Original Cost | 32,620 | 32,620 |
Accumulated Amortization | (16,864) | (14,330) |
Net Book Value | 15,756 | 18,290 |
Trade names and trademarks | ||
Original Cost | 2,080 | 2,080 |
Accumulated Amortization | (1,128) | (906) |
Net Book Value | 952 | 1,174 |
Customer relationships | ||
Original Cost | 10,690 | 10,690 |
Accumulated Amortization | (1,114) | (312) |
Net Book Value | 9,576 | 10,378 |
Non-compete agreements | ||
Original Cost | 1,010 | 1,010 |
Accumulated Amortization | (398) | (230) |
Net Book Value | $ 612 | $ 780 |
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Goodwill | $ 28,772 | $ 28,772 | $ 28,772 | ||
Amortization of Intangible Assets | $ 1,240 | $ 885 | $ 3,726 | $ 2,518 |
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Payables and Accruals [Abstract] | ||
Personnel costs | $ 25,482 | $ 18,943 |
Royalties | 3,338 | 2,971 |
Accrued but unpaid lease obligations and interest | 6,390 | |
Other | 1,918 | 2,059 |
Total Accrued Expenses and Other Current Liabilities | $ 37,128 | $ 23,973 |
Restructuring - Summary of Restructuring Liability (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2021 |
|
Employee | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability balance as of beginning | $ 2,381 | $ 618 |
Restructuring Charges | 854 | 2,617 |
Payments | (26) | (26) |
Liability balance as of ending | 3,209 | 3,209 |
Facility | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability balance as of beginning | 29 | 0 |
Restructuring Charges | 156 | 259 |
Payments | (160) | (234) |
Liability balance as of ending | $ 25 | $ 25 |
Restructuring - Additional Information (Detail) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2021
USD ($)
Employees
|
Sep. 30, 2021
USD ($)
Employees
|
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost | $ 6,500 | $ 6,500 |
Number of employees to retention Benefits | Employees | 65 | 65 |
Restructuring Reserve Current | $ 3,234 | $ 3,234 |
Selling, General and Administrative Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 1,010 | 2,876 |
Employee Cost | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost | 4,000 | 4,000 |
Restructuring Charges | 854 | 2,617 |
Facility and Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost | 2,500 | 2,500 |
Restructuring Charges | $ 156 | $ 259 |
Long-Term Debt Obligations (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Line of credit | $ 0 | $ 10,000 |
Term loan | 74,531 | 60,000 |
Less debt discount and debt issuance cost | (678) | (290) |
Term loan, net of debt discount and debt issuance cost | $ 73,853 | $ 59,710 |
Long-Term Debt Obligations - Future payments of term loan (Detail) $ in Thousands |
Sep. 30, 2021
USD ($)
|
---|---|
2021 | $ 469 |
2022 | 2,812 |
2023 | 4,687 |
2024 | 5,625 |
2025 and beyond | 60,938 |
Total | $ 74,531 |
Stockholders' Equity (Detail) - shares |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Equity [Abstract] | ||
Shares reserved for issuance for outstanding options | 6,724,574 | 6,425,040 |
Shares reserved for issuance for outstanding restricted stock units | 768,203 | 806,048 |
Shares reserved for issuance for future grants | 5,635,822 | 6,832,649 |
Total shares of authorized common stock reserved for future issuance | 13,128,599 | 14,063,737 |
Stockholders' Equity - Additional Information (Detail) - $ / shares |
1 Months Ended | ||
---|---|---|---|
Mar. 24, 2019 |
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Common stock, shares authorized | 400,000,000 | 400,000,000 | |
Common stock, par value | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued | 129,365,209 | 128,460,381 | |
Shares outstanding | 128,636,661 | 127,731,833 | |
Common Class A | |||
Common stock, shares authorized | 400,000,000 | ||
Common stock, par value | $ 0.0001 | ||
Company issued acquisition of shares | 728,548 | ||
Common stock, shares issued | 129,365,209 | ||
Preferred Stock | |||
Common stock, shares authorized | 1,000,000 | ||
Common stock, par value | $ 0.0001 | ||
Shares outstanding | 0 | ||
Redeemable Common Stock | Nutech Acquisition [Member] | |||
Company issued acquisition of shares | 728,548 |
Stock-Based Compensation - Schedule of Fair Value of Stock Options Granted to Employees and Directors (Detail) - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Risk-free interest rate | 0.83% | 0.46% |
Expected term (in years) | 6 years 2 months 19 days | 6 years 2 months 19 days |
Expected volatility | 39.31% | 37.42% |
Expected dividend yield | 0.00% | 0.00% |
Exercise price | $ 13.57 | $ 4.04 |
Underlying stock price | $ 13.57 | $ 3.37 |
Stock-Based Compensation - Summary of Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) [Member] |
9 Months Ended |
---|---|
Sep. 30, 2021
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at December 31, 2020 | shares | 787,923 |
Unvested Granted | shares | 299,352 |
Unvested Vested | shares | (248,305) |
Unvested Canceled/Forfeited | shares | (70,767) |
Unvested at September 30,2021 | shares | 768,203 |
Unvested at December 31, 2020 | $ / shares | $ 3.81 |
Unvested Granted | $ / shares | 14.46 |
Unvested Vested | $ / shares | 4.20 |
Unvested Canceled/Forfeited | $ / shares | 8.01 |
Unvested at September 30,2021 | $ / shares | $ 7.45 |
Stock-Based Compensation - Parenthetical (Detail) - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Share-based Payment Arrangement [Abstract] | ||
Options granted | 1,069,658 | 1,553,723 |
Net Income (Loss) Per Share (EPS) - Basic and diluted net loss per share (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Net income (loss) | $ 12,577 | $ 20,755 | $ 43,207 | $ (1,081) |
Weighted-average common shares outstanding—basic | 128,546,301 | 105,040,035 | 128,219,674 | 104,748,297 |
Weighted-average common shares outstanding—diluted | 133,850,216 | 108,489,768 | 133,766,004 | 104,748,297 |
Earnings (loss) per share—basic | $ 0.10 | $ 0.20 | $ 0.34 | $ (0.01) |
Earnings (loss) per share—diluted | $ 0.09 | $ 0.19 | $ 0.32 | $ (0.01) |
Restricted Stock Units [Member] | ||||
Dilutive effect of awards | 458,642 | 134,759 | 498,105 | |
Employee Stock Option | ||||
Dilutive effect of awards | 4,845,273 | 3,314,974 | 5,048,225 |
Net Income (Loss) per Share (EPS) - Additional Information (Detail) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Earnings Per Share [Abstract] | ||||
Anti-dilutive shares excluded from the diluted EPS | 956,466 | 2,009,245 | 956,466 | 8,283,893 |
Leases - Schedule of Lease Cost (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2021 |
|
Leases [Abstract] | ||
Finance lease Amortization of right-of-use assets | $ 793 | $ 1,396 |
Finance lease Interest on lease liabilities | 218 | 879 |
Total Finance lease cost | 1,011 | 2,275 |
Operating lease cost | 1,857 | 4,872 |
Short-term lease cost | 758 | 2,172 |
Variable lease cost | 1,304 | 3,753 |
Total lease cost | $ 4,930 | $ 13,072 |
Leases - Summary of Balance Sheet Information Related To Finance Leases (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Jan. 01, 2021 |
---|---|---|
Lessee Disclosure [Abstract] | ||
Property and equipment, gross | $ 18,670 | $ 22,989 |
Accumulated depreciation | (16,736) | (19,250) |
Property and equipment, net | 1,934 | 3,739 |
Current portion of finance lease obligations | 8,531 | 3,619 |
Finance lease long-term obligations | 831 | 11,442 |
Total lease liabilities | $ 9,362 | $ 15,061 |
Leases - Summary of Cash Flow Information Related To Leases (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 4,933 | |
Operating cash flows for finance leases | 1,327 | |
Financing cash flows for finance leases | 2,099 | $ 1,776 |
Right-of-use assets obtained in exchange for lease obligations | ||
Operating leases | $ 30,639 | |
Weighted-average remaining lease term | ||
Finance leases | 1 year 2 months 23 days | |
Operating leases | 8 years 21 days | |
Weighted-average discount rate | ||
Finance leases | 15.04% | |
Operating leases | 4.18% | |
Post Adoption [Member] | ||
Right-of-use assets obtained in exchange for lease obligations | ||
Operating leases | $ 17,114 | |
Upon Adoption [Member] | ||
Right-of-use assets obtained in exchange for lease obligations | ||
Operating leases | $ 13,525 |
Leases - Summary of Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Jan. 01, 2021 |
---|---|---|
Lessee Disclosure [Abstract] | ||
2021 (remaining 3 months) | $ 1,975 | |
2022 | 4,980 | |
2023 | 4,137 | |
2024 | 3,345 | |
2025 | 3,249 | |
Thereafter | 16,644 | |
Total lease payments | 34,330 | |
Less: interest | (5,459) | |
Total lease liabilities | 28,871 | $ 15,935 |
2021 (remaining 3 months) | 889 | |
2022 | 8,887 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total lease payments | 9,776 | |
Less: interest | (414) | |
Total lease liabilities | $ 9,362 | $ 15,061 |
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Selling, General and Administrative Expenses | |||
Related Party Transaction, Amounts of Transaction | $ 179 | ||
Option Loans | |||
Related Parties Notes Receivable | 0 | $ 334 | $ 635 |
Proceeds from Collection of Long-term Loans to Related Parties | $ 334 | ||
Liquidity Loan [Member] | |||
Related Parties Notes Receivable | $ 100 | ||
Maximum [Member] | Liquidity Loan and Option Loans | |||
Interest Rate | 3.86% | ||
Minimum [Member] | Liquidity Loan and Option Loans | |||
Interest Rate | 2.30% |
Taxes - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Tax Disclosure [Abstract] | ||||
Federal corporate income tax rate | 21.00% | |||
Income tax expense | $ 303 | $ 72 | $ 990 | $ 134 |
Income tax penalities and interest expense | $ 31 |
R_29
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