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 |
(I.R.S. Employer | |
Incorporation or Organization) |
Identification No.) |
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(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
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Capital Market |
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
Emerging growth company |
Page |
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4 |
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Item 1. |
4 |
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4 |
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5 |
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6 |
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7 |
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8 |
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Item 2. |
22 |
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Item 3. |
31 |
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Item 4. |
31 |
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32 |
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Item 1. |
32 |
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Item 1A |
33 |
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Item 2. |
33 |
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Item 3. |
33 |
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Item 4. |
33 |
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Item 5. |
33 |
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Item 6. |
34 |
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35 |
March 31, |
December 31, |
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2022 |
2021 |
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Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Restricted cash |
||||||||
Accounts receivable, net |
||||||||
Inventory , net |
||||||||
Prepaid expenses and other current assets |
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Total current assets |
||||||||
Property and equipment, net |
||||||||
Intangible assets, net |
||||||||
Goodwill |
||||||||
Operating lease right-of-use |
||||||||
Deferred tax asset, net |
||||||||
Other assets |
||||||||
Total assets |
$ | $ | ||||||
Liabilities and Stockholders’ Equity |
||||||||
Current liabilities: |
||||||||
D eferred acquisition consideration |
$ | $ | ||||||
Current portion of term loan |
||||||||
F inance lease obligations |
||||||||
Current portion of operating lease obligations |
||||||||
Accounts payable |
||||||||
Accrued expenses and other current liabilities |
||||||||
Total current liabilities |
||||||||
Term loan, net of current portion |
||||||||
Operating lease obligations, net of current portion |
||||||||
Other liabilities |
||||||||
Total liabilities |
||||||||
Commitments and contingencies (Note 18) |
||||||||
Stockholders’ equity: |
||||||||
Preferred stock, $ |
||||||||
Common stock, $ |
||||||||
Additional paid-in capital |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
Total stockholders’ equity |
||||||||
Total liabilities and stockholders’ equity |
$ | $ | ||||||
Three Months Ended March 31, |
||||||||
2022 |
2021 |
|||||||
Net revenue |
$ | $ | ||||||
Cost of goods sold |
||||||||
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|
|
|
|||||
Gross profit |
||||||||
Operating expenses: |
||||||||
Selling, general and administrative |
||||||||
Research and development |
||||||||
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|
|
|||||
Total operating expenses |
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|
|||||
Income from operations |
||||||||
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|
|||||
Other expense, net: |
||||||||
Interest expense |
( |
) | ( |
) | ||||
Other expense, net |
( |
) | ( |
) | ||||
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|
|
|
|||||
Total other expense, net |
( |
) | ( |
) | ||||
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|
|||||
Net income before income taxes |
||||||||
Income tax expense |
( |
) | ( |
) | ||||
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|
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|
|||||
Net income |
$ | $ | ||||||
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|
|||||
Net income, per share: |
||||||||
Basic |
$ | $ | ||||||
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|
|
|||||
Diluted |
$ | $ | ||||||
|
|
|
|
|||||
Weighted-average common shares outstanding |
||||||||
Basic |
||||||||
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|
|||||
Diluted |
||||||||
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|
|
Three Months Ended March 31, 2022 |
||||||||||||||||||||
Additional |
||||||||||||||||||||
Common Stock |
Paid-in |
Accumulated |
Total |
|||||||||||||||||
Shares |
Amount |
Capital |
Deficit |
Stockholders’ Equity |
||||||||||||||||
Balance as of December 31, 2021 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Exercise of stock options |
— | — | ||||||||||||||||||
Vesting of RSUs, net of shares surrendered to pay taxes |
— | ( |
) | — | ( |
) | ||||||||||||||
Stock-based compensation expense |
— | — | — | |||||||||||||||||
Net income |
— | — | — | |||||||||||||||||
|
|
|
|
|
|
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|
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|
|||||||||||
Balance as of March 31, 2022 |
( |
) | ||||||||||||||||||
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|
|
|
|
|
|
|
Three Months Ended March 31, 2021 |
||||||||||||||||||||
Additional |
||||||||||||||||||||
Common Stock |
Paid-in |
Accumulated |
Total |
|||||||||||||||||
Shares |
Amount |
Capital |
Deficit |
Stockholders’ Equity |
||||||||||||||||
|
|
|
|
|
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|
|
|||||||||||
Balance as of December 31, 2020 |
( |
) | ||||||||||||||||||
Exercise of stock options |
— | — | ||||||||||||||||||
Vesting of RSUs, net of shares surrendered to pay taxes |
— | ( |
) | — | ( |
) | ||||||||||||||
Stock-based compensation expense |
— | — | — | |||||||||||||||||
Net income |
— | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance as of March 31, 2021 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
||||||||
2022 |
2021 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income 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 |
||||||||
Provision recorded for 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 |
( |
) | ||||||
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 |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash used in investing activities |
( |
) | ( |
) | ||||
Cash flows from financing activities: |
||||||||
Payments of term loan |
( |
) | ||||||
Payments of withholding taxes in connection with RSUs vesting |
( |
) | ( |
) | ||||
Proceeds from the exercise of stock options |
||||||||
Principal repayments of finance lease obligations |
( |
) | ( |
) | ||||
Payment of deferred acquisition consideration |
( |
) | ||||||
|
|
|
|
|||||
Net cash used in financing activities |
( |
) | ( |
) | ||||
Change in cash , cash equivalents, and restricted cash |
( |
) | ( |
) | ||||
Cash , cash equivalents, and restricted cash, beginning of period |
||||||||
|
|
|
|
|||||
Cash , cash equivalents, 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: |
||||||||
Purchases of property and equipment included in accounts payable and accrued expenses |
$ | $ | ||||||
Right-of-use |
$ | $ |
Three Months Ended March 31, |
||||||||
2022 |
2021 |
|||||||
Advanced Wound Care |
$ | $ | ||||||
Surgical & Sports Medicine |
||||||||
|
|
|
|
|||||
Total net revenue |
$ | $ | ||||||
|
|
|
|
Three Months Ended March 31, |
||||||||
2022 |
2021 |
|||||||
Beginning balance |
$ | $ | ||||||
Change in fair value |
( |
) | ||||||
|
|
|
|
|||||
Ending balance |
$ | $ | ||||||
|
|
|
|
March 31 |
December 31, |
|||||||
2022 |
2021 |
|||||||
Accounts receivable |
$ | $ | ||||||
Less — allowance for doubtful accounts |
( |
) | ( |
) | ||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
Three Months Ended March 31, |
||||||||
2022 |
2021 |
|||||||
Balance at beginning of period |
$ | $ | ||||||
Additions |
||||||||
Write-offs |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Balance at end of period |
$ | $ | ||||||
|
|
|
|
March 31, |
December 31, |
|||||||
2022 |
2021 |
|||||||
Raw materials |
$ | $ | ||||||
Work in process |
||||||||
Finished goods |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
March 31, 2022 |
December 31, 2021 |
|||||||
Subscriptions |
$ | $ | ||||||
Conferences and marketing expenses |
||||||||
Deposits |
||||||||
Insurance |
||||||||
Other |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
March 31, 2022 |
December 31, 2021 |
|||||||
Leasehold improvements |
$ | $ | ||||||
Buildings |
||||||||
Furniture, computers and equipment |
||||||||
|
|
|
|
|||||
Accumulated depreciation and amortization |
( |
) | ( |
) | ||||
Construction in progress |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
Original Cost |
Accumulated Amortization |
Net Book Value |
||||||||||
Developed technology |
$ | $ | ( |
) | $ | |||||||
Trade names and trademarks |
( |
) | ||||||||||
Customer relationships |
( |
) | ||||||||||
Independent sales agency network |
( |
) | — | |||||||||
Patent |
( |
) | — | |||||||||
Non-compete agreements |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Total |
$ | $ | ( |
) | $ | |||||||
|
|
|
|
|
|
Original Cost |
Accumulated Amortization |
Net Book Value |
||||||||||
Developed technology |
$ | $ | ( |
) | $ | |||||||
Trade names and trademarks |
( |
) | ||||||||||
Customer relationship |
( |
) | ||||||||||
Independent sales agency network |
( |
) | — | |||||||||
Patent |
( |
) | — | |||||||||
Non-compete agreements |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Total |
$ | $ | ( |
) | $ | |||||||
|
|
|
|
|
|
March 31, 2022 |
December 31, 2021 |
|||||||
Personnel costs |
$ | $ | ||||||
Royalties |
||||||||
Accrued but unpaid lease obligations and interest |
||||||||
Other |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
Employee |
Other |
Total |
||||||||||
Liability balance as of December 31, 2021 |
$ | $ | |
$ |
|
| ||||||
Expenses |
|
|
|
| ||||||||
Payments |
( |
) | ( |
) | |
|
( |
) | ||||
|
|
|
|
|
|
|
| |||||
Liability balance as of March 31, 2022 |
$ | $ | |
$ |
|
| ||||||
|
|
|
|
|
|
|
|
March 31, 2022 |
December 31, 2021 |
|||||||
Line of credit |
$ | $ | ||||||
|
|
|
|
|||||
Term loan |
||||||||
Less debt discount and debt issuance cost |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Term loan, net of debt discount, debt issuance cost |
$ | $ | ||||||
|
|
|
|
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
|
|
|||
Total |
$ | |||
|
|
March 31 2022 |
December 31, 2021 |
|||||||
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 |
||||||||
|
|
|
|
Number of Shares |
Weighted Average Grant Date Fair Value |
|||||||
Unvested at December 31, 2021 |
$ | |||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Canceled/Forfeited |
( |
) | ||||||
|
|
|
|
|||||
Unvested at March 31, 2022 |
$ | |
||||||
|
|
|
|
Three Months Ended March 31, |
||||||||
2022 |
2021 |
|||||||
Risk-free interest rate |
% | % | ||||||
Expected term (in years) |
||||||||
Expected volatility |
% | % | ||||||
Expected dividend yield |
% | % | ||||||
Exercise price |
$ | $ | ||||||
Underlying stock price |
$ | |
$ | |
Number of Shares |
Weighted Average Exercise Price |
Weighted Average Remaining Contractual Term (in years) |
Aggregate Intrinsic Value |
|||||||||||||
Outstanding as of December 31, 2021 |
$ | $ | ||||||||||||||
Granted |
||||||||||||||||
Exercised |
( |
) | ||||||||||||||
Canceled / forfeited |
( |
) | ||||||||||||||
|
|
|||||||||||||||
Outstanding as of March 31, 2022 |
||||||||||||||||
|
|
|||||||||||||||
Options exercisable as of March 31, 2022 |
||||||||||||||||
|
|
|||||||||||||||
Options vested or expected to vest as of March 31, 2022 |
$ | $ | ||||||||||||||
|
|
Three Months Ended March 31, |
||||||||
2022 |
2021 |
|||||||
Numerator: |
||||||||
Net Income |
$ | $ | ||||||
Denominator: |
||||||||
Weighted average common shares outstanding —basic |
||||||||
Dilutive effect of restricted stock units |
||||||||
Dilutive effect of options |
||||||||
|
|
|
|
|||||
Weighted-average common shares outstanding—diluted |
||||||||
Earnings per share—basic |
$ | $ | ||||||
|
|
|
|
|||||
Earnings per share—diluted |
$ | $ | ||||||
|
|
|
|
March 31 |
December 31, |
|||||||
2022 |
2021 |
|||||||
Principal portion of rent in arrears |
||||||||
Unpaid operating and common area maintenance costs |
||||||||
|
|
|
|
|||||
Total accrued but unpaid lease obligations |
||||||||
Accrued interest on accrued but unpaid lease obligations |
Three Months Ended March 31, |
||||||||||
Classification |
2022 |
2021 |
||||||||
|
|
|
|
|||||||
Finance lease |
||||||||||
Amortization of right-of-use |
COGS and SG&A | $ | $ | |||||||
Interest on lease liabilities |
Interest Expense | |||||||||
|
|
|
|
|||||||
Total Finance lease cost |
||||||||||
Operating lease cost |
COGS, R&D, SG&A | |||||||||
Short-term lease cost |
COGS, R&D, SG&A | |||||||||
Variable lease cost |
COGS, R&D, SG&A | |||||||||
|
|
|
|
|||||||
Total lease cost |
$ | $ | ||||||||
|
|
|
|
March 31, 2022 |
December 31, 2021 |
|||||||
Property and equipment, gross |
$ | $ | ||||||
Accumulated depreciation |
( |
) | ( |
) | ||||
|
|
|
|
|||||
and equipment, net |
$ | $ | ||||||
|
|
|
|
|||||
Finance lease obligations |
$ |
$ |
||||||
|
|
|
|
Three Months Ended March 31, |
||||||||
2022 |
2021 |
|||||||
Cash paid for amounts included in the measurement of lease liabilities: |
||||||||
Operating cash flows for operating leases |
$ | $ | ||||||
Operating cash flows for finance leases |
$ | $ | ||||||
Financing cash flows for finance leases |
$ | $ | ||||||
Right-of-use |
||||||||
Operating leases |
$ | $ | ||||||
Finance leases |
$ | — | $ | — |
March 31, 2022 |
December 31, 2021 |
|||||||
Weighted-average remaining lease term |
||||||||
Finance leases |
||||||||
Operating leases |
||||||||
March 31, 2022 |
December 31, 2021 |
|||||||
Weighted-average discount rate |
||||||||
Finance leases |
% | % | ||||||
Operating leases |
% | % |
Operating leases |
Finance leases |
|||||||
2022 |
$ | $ | ||||||
2023 |
||||||||
2024 |
||||||||
2025 |
||||||||
2026 |
||||||||
Thereafter |
||||||||
|
|
|
|
|||||
Total lease payments |
||||||||
Less: interest |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total lease liabilities |
$ | |
$ | |
||||
|
|
|
|
Three Months Ended March 31, |
||||||||
2022 |
2021 |
|||||||
Net revenue |
$ | 98,117 | $ | 102,552 | ||||
Cost of goods sold |
25,080 | 25,495 | ||||||
|
|
|
|
|||||
Gross profit |
73,037 | 77,057 | ||||||
Operating expenses: |
||||||||
Selling, general and administrative |
63,578 | 58,232 | ||||||
Research and development |
8,587 | 6,209 | ||||||
|
|
|
|
|||||
Total operating expenses |
72,165 | 64,441 | ||||||
|
|
|
|
|||||
Income from operations |
872 | 12,616 | ||||||
|
|
|
|
|||||
Other expense, net: |
||||||||
Interest expense |
(737 | ) | (2,470 | ) | ||||
Other expense, net |
(3 | ) | (3 | ) | ||||
|
|
|
|
|||||
Total other expense, net |
(740 | ) | (2,473 | ) | ||||
|
|
|
|
|||||
Net income before income taxes |
132 | 10,143 | ||||||
Income tax expense |
(45 | ) | (200 | ) | ||||
|
|
|
|
|||||
Net income |
$ | 87 | $ | 9,943 | ||||
|
|
|
|
Three Months Ended March 31, |
||||||||
2022 |
2021 |
|||||||
Net income |
$ | 87 | $ | 9,943 | ||||
Interest expense |
737 | 2,470 | ||||||
Income tax expense |
45 | 200 | ||||||
Depreciation |
1,347 | 1,010 | ||||||
Amortization |
1,221 | 1,243 | ||||||
|
|
|
|
|||||
EBITDA |
3,437 | 14,866 | ||||||
|
|
|
|
|||||
Stock-based compensation expense |
1,303 | 698 | ||||||
Recovery of certain notes receivable from related parties (1) |
— | (179 | ) | |||||
Change in fair value of Earnout (2) |
— | (296 | ) | |||||
Restructuring charge (3) |
264 | 927 | ||||||
|
|
|
|
|||||
Adjusted EBITDA |
$ | 5,004 | $ | 16,016 | ||||
|
|
|
|
(1) | Amount reflects the collection of certain notes receivable from related parties previously reserved. See Note “19. Related Party Transactions”. |
(2) | Amount reflects the change in the fair value of the Earnout liability in connection with the CPN acquisition. See Note “3. Acquisition” and “5. Fair Value Measurement of Financial Assets and Liabilities”. |
(3) | Amount reflects employee retention and benefits as well as the facility-related cost related to the Company’s restructuring activities. See Note “12. Restructuring”. |
Three Months Ended March 31, |
Change |
|||||||||||||||
2022 |
2021 |
$ |
% |
|||||||||||||
(in thousands, except for percentages) |
||||||||||||||||
Advanced Wound Care |
$ | 90,950 | $ | 90,708 | $ | 242 | 0 | % | ||||||||
Surgical & Sports Medicine |
7,167 | 11,844 | (4,677 | ) | (39 | %) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net revenue |
$ | 98,117 | $ | 102,552 | $ | (4,435 | ) | (4 | %) | |||||||
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
Change |
|||||||||||||||
2022 |
2021 |
$ |
% |
|||||||||||||
(in thousands, except for percentages) |
||||||||||||||||
Cost of goods sold |
$ |
25,080 |
$ |
25,495 |
$ |
(415 |
) |
(2 |
%) | |||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
$ |
73,037 |
$ |
77,057 |
$ |
(4,020 |
) |
(5 |
%) | |||||||
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
Change |
|||||||||||||||
2022 |
2021 |
$ |
% |
|||||||||||||
(in thousands, except for percentages) |
||||||||||||||||
Research and development |
$ |
8,587 |
$ |
6,209 |
$ |
2,378 |
38 |
% | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
Change |
|||||||||||||||
2022 |
2021 |
$ |
% |
|||||||||||||
(in thousands, except for percentages) |
||||||||||||||||
Selling, general and administrative |
$ |
63,578 |
$ |
58,232 |
$ |
5,346 |
9 |
% | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
Change |
|||||||||||||||
2022 |
2021 |
$ |
% |
|||||||||||||
(in thousands, except for percentages) |
||||||||||||||||
Interest expense, net |
$ |
(737 |
) |
$ |
(2,470 |
) |
$ |
1,733 |
(70 |
%) | ||||||
Other expense, net |
(3 |
) |
(3 |
) |
— |
** |
||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other expense, net |
$ |
(740 |
) |
$ |
(2,473 |
) |
$ |
1,733 |
(70 |
%) | ||||||
|
|
|
|
|
|
|
|
** | not meaningful |
Three Months Ended March 31, |
Change |
|||||||||||||||
2022 |
2021 |
$ |
% |
|||||||||||||
(in thousands, except for percentages) |
||||||||||||||||
Income tax expense |
$ |
(45 |
) |
$ |
(200 |
) |
$ |
155 |
(78 |
%) | ||||||
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
||||||||
2022 |
2021 |
|||||||
(in thousands) |
||||||||
Net cash provided by (used in) operating activities |
$ | 1,411 | $ | (1,300 | ) | |||
Net cash used in investing activities |
(6,672 | ) | (4,957 | ) | ||||
Net cash used in financing activities |
(765 | ) | (591 | ) | ||||
|
|
|
|
|||||
Net change in cash, cash equivalents, and restricted cash |
$ | (6,026 | ) | $ | (6,848 | ) | ||
|
|
|
|
• | We are planning the implementation of a new company-wide enterprise resource planning, or ERP, system to provide additional systematic controls and segregation of duties for our accounting processes. We anticipate that the ERP system will go live in 2022. |
• | We have continued to train and cross train our employees on their internal control responsibilities and how to best support the Company if personnel turnover issues within their departments occur. We have also supplemented our internal resources with third-party resources, where necessary. |
• | We have continued to engage an outside firm to assist management with performing control operating effectiveness testing throughout the year. |
• | We regularly reported the results of control testing to the key stakeholders across the organization, including the audit committee, on testing progress and defined corrective actions, and we monitored and reported on the results of control remediation. Through these actions, we have continued to strengthen our internal policies, processes, and reviews. |
† |
Filed herewith |
†† | Furnished herewith |
* | Management contract or compensatory plan or arrangement |
Dated: May 10, 2022 | 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: May 10, 2022 | 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: May 10, 2022 | 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 March 31, 2022 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: May 10, 2022 | By: | /s/ Gary S. Gillheeney, Sr. | ||||
Gary S. Gillheeney, Sr. | ||||||
Chief Executive Officer | ||||||
(Principal Executive Officer) | ||||||
Date: May 10, 2022 | By: | /s/ David Francisco | ||||
David Francisco | ||||||
Chief Financial Officer | ||||||
(Principal Financial and Accounting Officer) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
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 | 129,615,732 | 129,408,740 |
Common stock, shares outstanding | 128,887,184 | 128,680,192 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Income Statement [Abstract] | ||
Net revenue | $ 98,117 | $ 102,552 |
Cost of goods sold | 25,080 | 25,495 |
Gross profit | 73,037 | 77,057 |
Operating expenses: | ||
Selling, general and administrative | 63,578 | 58,232 |
Research and development | 8,587 | 6,209 |
Total operating expenses | 72,165 | 64,441 |
Income from operations | 872 | 12,616 |
Other expense, net: | ||
Interest expense, net | (737) | (2,470) |
Other expense, net | (3) | (3) |
Total other expense, net | (740) | (2,473) |
Net income before income taxes | 132 | 10,143 |
Income tax expense | (45) | (200) |
Net income | $ 87 | $ 9,943 |
Net income, per share: | ||
Basic | $ 0.00 | $ 0.08 |
Diluted | $ 0.00 | $ 0.07 |
Weighted-average common shares outstanding | ||
Basic | 128,788,721 | 127,870,065 |
Diluted | 132,805,154 | 133,451,950 |
Nature of Business and Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | 1. Nature of 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, 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 service centers (“ASCs”) and physician offices. The Company has one operating and reportable segment. COVID-19 pandemic The coronavirus (COVID-19) pandemic 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 March 31, 2022, 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.
|
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. 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 Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as amended (the “Annual Report”). There have been no material changes to the significant accounting policies previously disclosed in the Annual Report. 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 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 three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022, 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, disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting periods. In preparing the consolidated financial statements, the estimates and assumptions that management consider to be significant and that present the greatest amount of uncertainty include: revenue recognition; sales returns and credit losses; inventory reserve; recognition and measurement of current and deferred income tax assets and liabilities; the assessment of recoverability of long-lived and indefinite lived assets (including intangible assets); assessing impairment of goodwill; valuation of assets and liabilities that use unobservable inputs; and the valuation and recognition of stock-based compensation. Actual results and outcomes may differ significantly from those estimates and assumptions. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2019-12, Income Taxes— Simplifying the Accounting for Income Taxes 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted for all periods in which financial statements have not yet been issued, including interim periods. The Company adopted this standard on January 1, 2021 and noted no impact to the financial statements. 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. As the Company was a smaller reporting company when the standard was issued, the Company took advantage of the extended transition period and 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. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting 2020-04”). ASU 2020-04 provides temporary optional expedients and exceptions to the US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope 2021-01”), to clarify certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting to apply to derivatives that are affected by the discounting transition. Both ASU 2020-04 and ASU 2021-01 are effective upon issuance through December 31, 2022. The Company’s debt agreement that utilizes LIBOR has conventional LIBOR replacement language. Since the debt agreement has not discontinued the use of LIBOR, this ASU is not yet effective for the Company. To the extent the interest rate changes to the rate specified in the debt agreement, the Company will utilize the relief in this ASU. The Company evaluated the effects of adopting the provisions of ASU 2020-04 and ASU 2021-01 and does not expect a material impact on the Company’s consolidated financial statements. |
Acquisition |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
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 aggregate consideration amounted to $19,024 as of the Acquisition Date, consisting of $6,427 in cash, 2,151,438 shares of the Company’s Class A common stock with a fair value of $8,815, and contingent consideration (the “Earnout”) with a fair value of $3,782. On the Acquisition Date, the Company paid $5,820 in cash and issued 1,947,953 shares of the Company’s Class A common stock. The remaining consideration of $1,436 was held back and was released in April 2022 by the Company paying additional $739 in cash and issuing additional 203,485 shares of the Company’s Class A common stock to the former equityholders The Company is obligated to pay the Earnout to CPN’s former
equityholders if CPN’s legacy product revenue in the Earnout Period (July 1, 2021 to June 30, 2022), 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 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 March 31, 2022, 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 Assets and Liabilities”. |
Product and Geographic Sales |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2022 and 2021, the Company recorded GPO fees of $619 and $700, 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 Measurement of Financial Assets and Liabilities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement of Financial Assets and Liabilities | 5. Fair Value Measurement of Financial Assets and Liabilities As of March 31, 2022 and December 31, 2021, the Company’s financial assets and liabilities measured at fair value on a recurring basis only included the Earnout liability as discussed below. 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 achievement 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 December 31, 2021 and March 31, 2022, the Earnout liability was $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 a
nd liabilities measured at fair value on a non-recurring basis as of March 31, 2022 or December 31, 2021. |
Accounts Receivable, Net |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Net | 6. Accounts Receivable, Net Accounts receivable consisted of the following:
The Company’s allowance for doubtful accounts was comprised of the following:
|
Inventories |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2022 and 2021, the Company charged $2,205 and $2,290, respectively, for inventory excess and obsolescence to cost of goods sold within the consolidated statements of operations.
|
Prepaid Expenses and Other Current Assets |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
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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 $1,347 and $1,010, for the three months ended March 31, 2022 and 2021, respectively. Construction in progress primarily represents unfinished c ons truction work on a purchased building located on the Company’s Canton, Massachusetts campus and improvements at the Company’s leased facilities in Canton and Norwood, Massachusetts. |
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets | 10. Goodwill and Intangible Assets Goodwill was $28,772 as of March 31, 2022 and December 31, 2021. Identifiable intangible assets consisted of the following as of March 31, 2022:
Identifiable intangible assets consisted of the following as of December 31, 2021:
Amortization of intangible assets, calculated on a straight-line basis or using an accelerated method, was $1,221 and $1,243 for the three months ended March 31, 2022 and 2021, respectively.
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Accrued Expenses and Other Current Liabilities |
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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 are related to the buildings in Canton, Massachusetts. See Note “17. Leases”. |
Restructuring |
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Restructuring | 12. Restructuring In order to reduce the Company’s cost structure and achieve operating efficiency, the Company is consolidating its manufacturing operations in various locations into Massachusetts facilities. On October 21, 2020, the Company committed to a plan to restructure the workforce and operations in its La Jolla, California facilities. The restructuring involved approximately 65 employees and was substantially completed as of December 31, 2021, with certain facility and storage activities continuing through 2024. On March 9, 2022, the Company committed $3.0 million, of which approximately $2.0 million is attributable to the retention benefits associated with approximately 25 employees and the remaining $1.0 to a plan to restructure the workforce and operations in its Birmingham facilities. The restructuring is expected to be completed by the end of 2022 and will result in a charge of approximatelymillion is related to the other exit activities, including but not limited to contract termination, decommission and transportation of certain fixed assets. As employees are required to provide future services, employee retention and other benefit-related costs are expensed over the service period. As a result of the restructuring activities, the Company incurred a pre-tax charge of $264 and $927 during the three months ended March 31, 2022 and 2021, respectively. These charges were included in selling, general and administrative expenses in the consolidated statements of operations. The liability related to the restructuring activities was $132 and $3,168 as of March 31, 2022 and December 31, 2021, respectively, 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 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 the Company’s assets, including intellectual property. Capitalized terms used herein and not otherwise defined are defined as set forth in the 2021 Credit Agreement. Advances plus The 2021 Credit Agreement requires the Company to make consecutive quarterly installment payments equal to the following: (a) from September 30, 2021 through and including June 30, 2022, $469; (b) from September 30, 2022 through and including June 30, 2023, $938; (c) from September 30, 2023 through and including June 30, 2025, $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”), $1,875. The Company may prepay the Term Loan Facility, provided that any Term Loans prepaid prior to August 6, 2022 must be accompanied by a prepayment premium equal to 1.00% of 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 (the “Commitment Fee”). The Commitment Fee rate is between 0.25% to 0.45% based on the Total Net Leverage Ratio. 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 including the Consolidated Fixed Charge Coverage Ratio and Consolidated Total Net Leverage Ratio, tested quarterly. In addition, the Company is also required to make representations and warranties and comply with certain non-financial covenants that are customary in loan agreements of this type, including restrictions on the payment of dividends, repurchase of stock, incurrence of indebtedness, dispositions and acquisitions. The Company had outstanding borrowings of $73,593 and $74,062 under the Term Loan Facility and $0 under the Revolving Facility with $125,000 available for future revolving borrowings as of March 31, 2022 and December 31, 2021, respectively. 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 expense through the maturity date of the facilities. Future payments of the 2021 Credit Agreement, as of March 31, 2022, 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 were 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 year ended December 31, 2021.
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Stockholders' Equity |
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Stockholders' Equity | 14. Stockholders’ Equity Common Stock As of March 31, 2022, t he 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 March 31, 2022 and December 31, 2021, 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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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. 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). There has been no change to the total authorized shares since the adoption of the 2018 Plan. Stock Incentive Plans-the 2003 Plan The 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 advisors 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 Class A 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 or five years. Restricted stock units awarded typically vest over four years.Stock-based compensation expense was $1,303 and $698 for the three months ended March 31, 2022 and 2021, 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) The Company granted 931,431 and 284,708 time-based restricted stock units to its employees, executives and the Board of Directors in the three months ended March 31, 2022 and 2021, respectively. Each restricted stock unit represents the contingent right to receive one share of the Company’s Class A 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 March 31, 2022, the total unrecognized compensation cost related to unvested restricted stock units expected to vest was $7,892 and the weighted average remaining recognition period for unvested awards was 3.19 years. Stock Option Valuation The stock options granted during the three months ended March 31, 2022 and 2021 were 1,418,224 and 1,037,099, 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 three months ended March 31, 2022 and 2021 of $3.94 and $5.31, respectively. Stock Option Activity The following table summarizes the Company’s stock option activity since December 31, 2021:
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 three months ended March 31, 2022 and 2021 was $1,612 and $143, respectively. As of March 31, 2022, the total unrecognized stock compensation expense related to unvested stock options expected to vest was $7,579 and was expected to be recognized over a weighted-average period of 3.29 years.
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Net Income (Loss) Per Share (EPS) |
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Net Income (Loss) per Share (EPS) | 16. Net Income 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 outstanding 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 denomina to r used in the calculation of the basic and diluted net income attributable to the Class A common stockholders is as follows.
For the three months ended March 31, 2022 and
20 21, outstanding stock-based awards of 155,207 and 1,202,193 were excluded from the diluted EPS calculation as they were anti-dilutive. |
Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | 17. Leases As of December 31, 2021 and March 31, 2022, 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, warehouse and production space under noncancelable leases that expire at various dates through 2035, subject to the Company’s options to terminate or renew certain leases for an additional to ten years.The 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 right-of-use Right-of-use Right-of-use right-of-use 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 right-of-use 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. Other than the lease with 275 Dan Road SPE, LLC which was terminated in August 2021 as discussed below, the remaining three leases were set to terminate on December 31, 2022 and each contained a renewal option for a five-year period with a rental rate at the greater of (i) rent for the last year of the prior term, or (ii) the then fair market value. The Company exercised the option to extend the leases for an additional five years in November 2021. These leases were reclassified from finance leases to operating leases upon the Company’s reassessment of the lease classification according to ASC 842-10-25-1 Lease Classification. lease right-of-use assets As of December 31, 2020, the Company owed an aggregate of $10,336 of accrued but unpaid lease obligations 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 842-20-40-2 Purchase of the Underlying Asset The accrued but unpaid lease obligations as well as the related interest accruals are shown below.
The principal portion of rent in arrears was included in the short-term portion of operating lease obligations other than the balance related to the 275 Dan Road Building that was included in accrued expenses and other current liabilities on the consolidated balance sheets as of March 31, 2022 and December 31, 2021. The unpaid operating and common area maintenance costs, and the accrued interest on the accrued but unpaid lease obligations were included in accrued expenses and other current liabilities on the consolidated balance sheets as of March 31, 2022 and December 31, 2021 . The components of lease cost were as follows:
Supplemental balance sheet information related to finance leases was as follows:
Supplemental cash flow information related to leases was as follows:
As of March 31, 2021, maturities of lease liabilities were as follows:
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Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | 18. Commitments and Contingencies Royalties 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 March 31, 2022 and December 31, 2021, respectively, and were classified as part of accrued expenses and other current liabilities on the Company’s consolidated balance sheets. There was no royalty expense incurred during the three months ended March 31, 2022 or 2021 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 $1,601 and $1,220 during the three months ended March 31, 2022 and 2021, respectively, within selling, general and administrative expenses on the consolidated statements of operations. Legal Matters 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 amounts due are probable and estimable. The Company accrued $150 as of March 31, 2022 and December 31, 2021 in relation to certain pending lawsuits.
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Related Party Transactions |
3 Months Ended |
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Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 19. Related Party Transactions 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 exercise 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 year ended December 31, 2021. The $334 of the repaid principal balance of the Option Loans was recorded to equity. - |
Taxes |
3 Months Ended |
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Mar. 31, 2022 | |
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 Switzerland GmbH, is subject to taxation in Switzerland and has 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 three months ended March 31, 2022 varied from the U.S. statutory rate of 21% primarily due to the tax adjustments related to executive compensation, other permanent tax adjustments, and discrete items. Income tax expense for the three months ended March 31, 2022 was $45, which include d a discrete tax expense of $10, and related primarily to federal and state taxes. Income tax expense for the three months ended March 31, 2021 was $200, which included a discrete expense of $10, 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. In the fourth quarter of 2021, the Company released the valuation allowance recorded against its U.S. deferred tax assets. Upon reviewing the positive evidence of net operating loss utilization, cumulative profits, and forecasted taxable income, the Company believed that it was more likely than not that these United States deferred tax assets will be utilized. There are no material deferred tax assets in the other jurisdictions. On a quarterly basis, the Company reassesses the need for a 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, including net operating loss utilization, cumulative profits, and forecasted taxable income, the Company determined that it is more likely than not the U.S. deferred assets will be realized in full. As such, the Company has not recorded a valuation allowance against its U.S. deferred tax
assets as of March 31, 2022 and December 31, 2021. |
Subsequent Events |
3 Months Ended |
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Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Events The Company has evaluated subsequent events through May 10, 2022, the date on which these consolidated financial statements were issued and has determined that there were no such events to report. |
Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2022 | |
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 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 three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022, 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, disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting periods. In preparing the consolidated financial statements, the estimates and assumptions that management consider to be significant and that present the greatest amount of uncertainty include: revenue recognition; sales returns and credit losses; inventory reserve; recognition and measurement of current and deferred income tax assets and liabilities; the assessment of recoverability of long-lived and indefinite lived assets (including intangible assets); assessing impairment of goodwill; valuation of assets and liabilities that use unobservable inputs; and the valuation and recognition of stock-based compensation. Actual results and outcomes may differ significantly from those estimates and assumptions. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2019-12, Income Taxes— Simplifying the Accounting for Income Taxes 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted for all periods in which financial statements have not yet been issued, including interim periods. The Company adopted this standard on January 1, 2021 and noted no impact to the financial statements. |
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. As the Company was a smaller reporting company when the standard was issued, the Company took advantage of the extended transition period and 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. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting 2020-04”). ASU 2020-04 provides temporary optional expedients and exceptions to the US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope 2021-01”), to clarify certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting to apply to derivatives that are affected by the discounting transition. Both ASU 2020-04 and ASU 2021-01 are effective upon issuance through December 31, 2022. The Company’s debt agreement that utilizes LIBOR has conventional LIBOR replacement language. Since the debt agreement has not discontinued the use of LIBOR, this ASU is not yet effective for the Company. To the extent the interest rate changes to the rate specified in the debt agreement, the Company will utilize the relief in this ASU. The Company evaluated the effects of adopting the provisions of ASU 2020-04 and ASU 2021-01 and does not expect a material impact on the Company’s consolidated financial statements. |
Product and Geographic Sales (Tables) |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue by Product Category | The following tables set forth revenue by product category:
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Fair Value Measurement of Financial Assets and Liabilities (Tables) |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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
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Accounts Receivable, Net (Tables) |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accounts receivable | Accounts receivable consisted of the following:
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Schedule of allowance for doubtful accounts | The Company’s allowance for doubtful accounts was comprised of the following:
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Inventories (Tables) |
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment, Net | Property and equipment consisted of the following:
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Goodwill and Intangible Assets (Tables) |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | Identifiable intangible assets consisted of the following as of March 31, 2022:
Identifiable intangible assets consisted of the following as of December 31, 2021:
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Accrued Expenses and Other Current Liabilities (Tables) |
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of liability related to the restructuring activities | The following table provides a roll-forward of the restructuring liability.
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Long-Term Debt Obligations (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt obligations | Long-term debt obligations consisted of the following:
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Schedule of future payments of term loan facility | Future payments of the 2021 Credit Agreement, as of March 31, 2022, are as follows for the calendar years ending December 31:
|
Stockholders' Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Common Stock Shares Reserved For Future Issuance | As of March 31, 2022 and December 31, 2021, the Company reserved the following shares of Class A common stock for future issuance:
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Stock-Based Compensation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2021:
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Net Income (Loss) Per Share (EPS) (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the numerator and denomina to r used in the calculation of the basic and diluted net income attributable to the Class A common stockholders is as follows.
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Leases (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued But Unpaid Lease Obligations | The accrued but unpaid lease obligations as well as the related interest accruals are shown below.
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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 leases was as follows:
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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 March 31, 2021, maturities of lease liabilities were as follows:
|
Nature of Business and Basis of Presentation - Additional Information (Detail) |
3 Months Ended |
---|---|
Mar. 31, 2022
Segments
| |
Liquidity and Financial Conditions [Line Items] | |
Number of Operating Segments | 1 |
Number of Reportable Segments | 1 |
Product and Geographic Sales - Schedule of Revenue by Product Category (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Total net revenue | $ 98,117 | $ 102,552 |
Advanced Wound Care | ||
Total net revenue | 90,950 | 90,708 |
Surgical & Sports Medicine | ||
Total net revenue | $ 7,167 | $ 11,844 |
Product and Geographic Sales - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Significant Accounting Policies [Line Items] | ||
GPO Fees | $ 619 | $ 700 |
Sales Revenue | Geographic Concentration Risk | International | ||
Significant Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 1.00% |
Fair Value Measurement of Financial Assets and Liabilities - Fair value of the Company's Earnout liability (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Business Acquisition, Contingent Consideration [Line Items] | ||
Change in fair value | $ 0 | $ (296) |
Fair Value, Inputs, Level 3 | Earnout Liability [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Beginning balance | 0 | 3,985 |
Change in fair value | 0 | (296) |
Ending balance | $ 0 | $ 3,689 |
Fair Value Measurement of Financial Assets and Liabilities - Additional Information (Detail) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Sep. 17, 2020 |
---|---|---|---|---|
Earnout liability | $ 0 | $ 0 | $ 0 | $ 3,782 |
Accounts Receivable, Net - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Receivables [Abstract] | ||
Accounts receivable | $ 84,604 | $ 87,613 |
Less — allowance for doubtful accounts | (5,127) | (5,153) |
Accounts receivable | $ 79,477 | $ 82,460 |
Accounts Receivable, Net - Summary of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Balance at beginning of period | $ 5,153 | $ 2,669 |
Additions | 40 | 921 |
Write-offs | (66) | (14) |
Balance at end of period | $ 5,127 | $ 3,576 |
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Raw materials | $ 9,524 | $ 9,023 |
Work in process | 995 | 991 |
Finished goods | 12,218 | 15,008 |
Inventory | $ 22,737 | $ 25,022 |
Inventories - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Inventory reserve and obsolescence charged to cost of goods | $ 2,205 | $ 2,290 |
Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Subscriptions | $ 2,685 | $ 2,745 |
Conferences and marketing expenses | 2,060 | 538 |
Deposits | 1,344 | 1,216 |
Insurance | 1,001 | 358 |
Other | 45 | 112 |
Prepaid Expense | $ 7,135 | $ 4,969 |
Property and Equipment, Net (Detail) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Property, Plant and Equipment, Gross | $ 93,738 | $ 89,433 |
Accumulated depreciation and amortization | (59,075) | (57,729) |
Property and equipment net | 84,268 | 79,160 |
Leasehold improvements | ||
Property, Plant and Equipment, Gross | 33,973 | 30,531 |
Buildings | ||
Property, Plant and Equipment, Gross | 4,943 | 4,943 |
Furniture, computers and equipment | ||
Property, Plant and Equipment, Gross | 54,822 | 53,959 |
Construction in progress | ||
Property and equipment net | $ 49,605 | $ 47,456 |
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Depreciation expense | $ 1,347 | $ 1,010 |
Goodwill and Intangible Assets - Identifiable intangible assets (Detail) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Original Cost | $ 58,523 | $ 58,523 |
Accumulated Amortization | (34,071) | (32,850) |
Net Book Value | 24,452 | 25,673 |
Developed technology | ||
Original Cost | 32,620 | 32,620 |
Accumulated Amortization | (18,573) | (17,709) |
Net Book Value | 14,047 | 14,911 |
Trade names and trademarks | ||
Original Cost | 2,080 | 2,080 |
Accumulated Amortization | (1,236) | (1,183) |
Net Book Value | 844 | 897 |
Customer relationships | ||
Original Cost | 10,690 | 10,690 |
Accumulated Amortization | (1,648) | (1,381) |
Net Book Value | 9,042 | 9,309 |
Independent sales agency network | ||
Original Cost | 4,500 | 4,500 |
Accumulated Amortization | (4,500) | (4,500) |
Patent | ||
Original Cost | 7,623 | 7,623 |
Accumulated Amortization | (7,623) | (7,623) |
Non-compete agreements | ||
Original Cost | 1,010 | 1,010 |
Accumulated Amortization | (491) | (454) |
Net Book Value | $ 519 | $ 556 |
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Goodwill | $ 28,772 | $ 28,772 | |
Amortization of Intangible Assets | $ 1,221 | $ 1,243 |
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Payables and Accruals [Abstract] | ||
Personnel costs | $ 23,060 | $ 26,865 |
Royalties | 3,190 | 3,458 |
Accrued but unpaid lease obligations and interest | 3,981 | 3,963 |
Other | 2,188 | 2,303 |
Total Accrued Expenses and Other Current Liabilities | $ 32,419 | $ 36,589 |
Restructuring - Summary of liability related to the restructuring activities (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Restructuring Cost and Reserve [Line Items] | ||
Liability balance as of beginning | $ 3,168 | |
Expenses | 264 | $ 927 |
Payments | (3,300) | |
Liability balance as of ending | 132 | |
Employee | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability balance as of beginning | 2,517 | |
Expenses | 115 | |
Payments | (2,517) | |
Liability balance as of ending | 115 | |
Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability balance as of beginning | 651 | |
Expenses | 149 | |
Payments | (783) | |
Liability balance as of ending | $ 17 |
Long-Term Debt Obligations (Detail) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Line of credit | $ 0 | $ 0 |
Term loan | 73,593 | 74,062 |
Less debt discount and debt issuance cost | (598) | (637) |
Term loan, net of debt discount and debt issuance cost | $ 72,995 | $ 73,425 |
Long-Term Debt Obligations - Future payments of term loan (Detail) $ in Thousands |
Mar. 31, 2022
USD ($)
|
---|---|
2022 | $ 2,343 |
2023 | 4,687 |
2024 | 5,625 |
2025 | 6,563 |
2026 | 54,375 |
Total | $ 73,593 |
Stockholders' Equity (Detail) - shares |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Equity [Abstract] | ||
Shares reserved for issuance for outstanding options | 7,924,792 | 6,596,969 |
Shares reserved for issuance for outstanding restricted stock units | 1,496,853 | 764,871 |
Shares reserved for issuance for future grants | 3,373,334 | 5,644,691 |
Total shares of authorized common stock reserved for future issuance | 12,794,979 | 13,006,531 |
Stockholders' Equity - Additional Information (Detail) |
1 Months Ended |
---|---|
Mar. 24, 2019
shares
| |
Common Class A | |
Company issued acquisition of shares | 728,548 |
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 |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Risk-free interest rate | 1.92% | 0.82% |
Expected term (in years) | 6 years 3 months | 6 years 2 months 15 days |
Expected volatility | 50.66% | 39.30% |
Expected dividend yield | 0.00% | 0.00% |
Exercise price | $ 13.54 | $ 8.03 |
Underlying stock price | $ 7.87 | $ 13.54 |
Stock-Based Compensation - Summary of Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) [Member] |
3 Months Ended |
---|---|
Mar. 31, 2022
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at December 31, 2021 | shares | 764,871 |
Unvested Granted | shares | 931,431 |
Unvested Vested | shares | (179,714) |
Unvested Canceled/Forfeited | shares | (19,735) |
Unvested at March 31, 2022 | shares | 1,496,853 |
Unvested at December 31, 2021 | $ / shares | $ 7.52 |
Unvested Granted | $ / shares | 7.59 |
Unvested Vested | $ / shares | 7.81 |
Unvested Canceled/Forfeited | $ / shares | 6.83 |
Unvested at March 31, 2022 | $ / shares | $ 7.54 |
Stock-Based Compensation - Parenthetical (Detail) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Share-based Payment Arrangement [Abstract] | ||
Options granted | 1,418,224 | 1,037,099 |
Net Income (Loss) Per Share (EPS) - Basic and diluted net loss per share (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Net Income | $ 87 | $ 9,943 |
Weighted average common shares outstanding —basic | 128,788,721 | 127,870,065 |
Weighted-average common shares outstanding—diluted | 132,805,154 | 133,451,950 |
Earnings (loss) per share—basic | $ 0.00 | $ 0.08 |
Earnings (loss) per share—diluted | $ 0.00 | $ 0.07 |
Restricted Stock Units [Member] | ||
Dilutive effect of awards | 264,075 | 527,658 |
Employee Stock Option | ||
Dilutive effect of awards | 3,752,358 | 5,054,227 |
Net Income (Loss) per Share (EPS) - Additional Information (Detail) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Earnings Per Share [Abstract] | ||
Anti-dilutive shares excluded from the diluted EPS | 155,207 | 1,202,193 |
Leases - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Aug. 11, 2021 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Property plant and equipment net | $ 84,268 | $ 79,160 | ||
Accrued But Unpaid Lease Obligation | Principal, Interest and CAM [Member] | ||||
Accrued but unpaid lease obligations | $ 7,298 | $ 7,804 | $ 10,336 | |
275 Dan Road SPE LLC [Member] | ||||
Purchase of building under the lease amount | $ 6,013 | |||
Percentage of amount required to pay for the accrued but unpaid lease obligations associated with building | 50.00% | |||
Interest on the balance of the accrued but unpaid lease obligations associated with building was reduced to annula simplete rate,Percentage | 4.50% | |||
Property plant and equipment net | $ 4,943 | |||
Fleet Lease | ||||
Lessee, operating lease, term of contract | 367 days | |||
Maximum | ||||
Lessee, operating lease, renewal term | 10 years | |||
Minimum | ||||
Lessee, operating lease, renewal term | 5 years |
Leases - Schedule of Accrued but Unpaid Lease Obligations (Detail) - Accrued But Unpaid Lease Obligation [Member] - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|
Schedule Of Accrued But Unpaid Lease Obligations [Line Items] | |||
Accrued interest on accrued but unpaid lease obligations | $ 1,956 | $ 1,938 | |
Principal [Member] | |||
Schedule Of Accrued But Unpaid Lease Obligations [Line Items] | |||
Total accrued but unpaid lease obligations | 7,246 | 7,246 | |
Principal Interest and C A M [Member] | |||
Schedule Of Accrued But Unpaid Lease Obligations [Line Items] | |||
Total accrued but unpaid lease obligations | 7,298 | 7,804 | $ 10,336 |
Common Area Maintenance [Member] | |||
Schedule Of Accrued But Unpaid Lease Obligations [Line Items] | |||
Total accrued but unpaid lease obligations | $ 52 | $ 558 |
Leases - Schedule of Lease Cost (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Leases [Abstract] | ||
Finance lease Amortization of right-of-use assets | $ 107 | $ 299 |
Finance lease Interest on lease liabilities | 5 | 349 |
Total Finance lease cost | 112 | 648 |
Operating lease cost | 2,434 | 1,280 |
Short-term lease cost | 669 | 715 |
Variable lease cost | 918 | 1,363 |
Total lease cost | $ 4,133 | $ 4,006 |
Leases - Summary of Balance Sheet Information Related To Finance Leases (Detail) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Lessee Disclosure [Abstract] | ||
Property and equipment, gross | $ 1,174 | $ 1,174 |
Accumulated depreciation | (1,067) | (961) |
Property and equipment, net | 107 | 213 |
Finance lease obligations | $ 101 | $ 200 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment net |
Leases - Summary of Cash Flow Information Related To Leases (Detail) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating leases | $ 2,337 | $ 1,362 | |
Operating cash flows for finance leases | 5 | 523 | |
Financing cash flows for finance leases | 99 | 675 | |
Right-of-use assets obtained in exchange for lease obligations | |||
Operating leases | $ 171 | $ 310 | |
Weighted-average remaining lease term | |||
Finance leases | 2 months 15 days | 5 months 12 days | |
Operating leases | 8 years 14 days | 8 years 2 months 19 days | |
Weighted-average discount rate | |||
Finance leases | 11.30% | 11.30% | |
Operating leases | 4.53% | 4.51% |
Leases - Summary of Maturities of Lease Liabilities (Detail) $ in Thousands |
Mar. 31, 2021
USD ($)
|
---|---|
Lessee Disclosure [Abstract] | |
2022 | $ 11,873 |
2023 | 8,104 |
2024 | 7,315 |
2025 | 7,526 |
2026 | 7,435 |
Thereafter | 25,966 |
Total lease payments | 68,219 |
Less: interest | (11,121) |
Total lease liabilities | 57,098 |
2022 | 103 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Total lease payments | 103 |
Less: interest | (2) |
Total lease liabilities | $ 101 |
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Accrued Legal Expenses | $ 150 | $ 150 | |
Selling, General and Administrative Expenses | |||
Royalty Expense | 1,601 | $ 1,220 | |
License Agreement University | |||
Accrued Royalties | 1,187 | $ 1,187 | |
Royalty Expense | $ 0 | $ 0 |
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2022 |
Dec. 31, 2020 |
|
Selling, General and Administrative Expenses | |||
Related Party Transaction, Amounts of Transaction | $ 179 | ||
Option Loans | |||
Related Parties Notes Receivable | $ 334 | ||
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 | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Income Tax Disclosure [Abstract] | ||
Federal corporate income tax rate | 21.00% | |
Income tax expense | $ 45 | $ 200 |
Discreet tax expense | $ 10 | $ 10 |
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