Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
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Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowances (in dollars) | $ 2,581 | $ 2,278 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 62,552,927 | 62,242,090 |
Common stock, shares outstanding | 62,480,200 | 62,169,363 |
Treasury stock, shares | 72,727 | 72,727 |
Summary of Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies a. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Sientra, Inc. (“Sientra”, the “Company”, “we”, “our”, or “us”) in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, and the rules and regulations of the U.S. Securities and Exchange Commission, or SEC. Accordingly, they do not include certain footnotes and financial presentations normally required under accounting principles generally accepted in the United States of America for complete financial reporting. The interim financial information is unaudited, but reflects all normal adjustments and accruals which are, in the opinion of management, considered necessary to provide a fair presentation for the interim periods presented. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on March 31, 2022, or the Annual Report. The results for the three months ended March 31, 2022 are not necessarily indicative of results to be expected for the year ending December 31, 2022, any other interim periods, or any future year or period. As a result of the miraDry Sale discussed in Note 2, the miraDry business met the criteria to be reported as discontinued operations. Therefore, the Company is reporting the historical results of miraDry, including the results of operations, cash flows, and related assets and liabilities, as discontinued operations for all periods presented herein through the date of the Sale. Unless otherwise noted, the accompanying notes to the unaudited condensed consolidated financial statements have all been revised to reflect continuing operations only. As discussed in Note 11, following the Sale the Company has one operating segment in continuing operations named Plastic Surgery, formerly known as Breast Products. b. Liquidity Since the Company’s inception, it has incurred significant net operating losses and the Company anticipates that losses will continue in the near term. The Company expects its operating expenses will remain consistent with the current period and will need to generate significant net sales to achieve profitability. To date, the Company has funded operations primarily with proceeds from the sales of preferred stock, borrowings under term loans and the convertible note, sales of products, and the proceeds from the sale of common stock in public offerings. The Company continues to evaluate overall capital needs, and while the Company believes there are sufficient capital resources to continue as a going concern over the next twelve months, the Company may be required to raise additional debt or equity capital to fund ongoing operations. As of March 31, 2022, the Company had cash and cash equivalents of $38.9 million. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. Debt financing – recent developments Refer to Note 7 for a full description and updates to all of the Company’s long-term debt, revolving line of credit, and convertible note. c. Recent Accounting Pronouncements
Recently Issued Accounting Standards
In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The amendment eliminates certain accounting models and simplifies the accounting for convertible instruments and enhances disclosures for convertible instruments and earnings per share. The amendments are effective for public entities excluding smaller reporting companies for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023 including interim periods within those fiscal years and early adoption is permitted. The Company is currently evaluating the impact that adoption of the standard will have on the condensed consolidated financial statements.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848)-Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendment provides optional expedients and exceptions for contract modifications that replace a reference rate affected by reference rate reform. The amendments are effective for all entities as of March 12, 2020 through December 31, 2022, and entities may elect to apply by Topic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. The Company is currently evaluating the impact the election of the optional expedient will have on the condensed consolidated financial statements.
d. Risks and Uncertainties
As an aesthetics company, surgical procedures involving the Company’s breast products are susceptible to local and national government restrictions, such as social distancing, vaccination requirements, “shelter in place” orders and business closures. The inability or limited ability to perform such non-emergency procedures and patients electing to postpone elective aesthetics procedures due to the pandemic significantly harmed the Company’s revenues since the second quarter of 2020 and continued to harm the Company’s revenues during the three months ended March 31, 2022. While many states have lifted certain restrictions on non-emergency procedures and procedural volume rates for non-emergency procedures have been recovering, the Company will likely continue to experience future harm to its revenues while existing or new restrictions remain in place. It is not possible to accurately predict the length or severity of the COVID-19 pandemic or the impact on the Company’s business, including the timing for a broad and sustained ability to perform non-emergency procedures involving the Company’s products. The Company continues to monitor and assess new information related to the COVID-19 pandemic, the actions taken to contain or treat COVID-19, as well as the economic impact on local, regional, national and international customers and markets.
Further, the spread of COVID-19 has caused the Company to modify workforce practices, and the Company may take further actions determined to be in the best interests of the Company’s employees or as required by governments. The continued spread of COVID-19, or another infectious disease, could also result in delays or disruptions in the Company’s supply chain or adversely affect the Company’s manufacturing facilities and personnel. Further, trade and/or national security protection policies may be adjusted as a result of the COVID-19 pandemic, such as actions by governments that limit, restrict or prevent the movement of certain goods into a country and/or region, and current U.S./China trade relations may be further exacerbated by the pandemic.
The estimates used for, but not limited to, determining the collectability of accounts receivable, fair value of long-lived assets and goodwill, and sales returns liability required could be impacted by the pandemic. While the full impact of COVID-19 is unknown at this time, the Company has made appropriate estimates based on the facts and circumstances available as of the reporting date. These estimates may change as new events occur and additional information is obtained.
e. Reclassifications
Certain reclassifications have been made to prior year amounts to conform to the current year presentation, including those related to discontinued operations following the sale of the miraDry business. |
Discontinued Operations |
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Discontinued Operations And Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | 2. Discontinued Operations
On June 10, 2021, the Company completed the sale of its miraDry business (the “Sale”) to miraDry Acquisition Company, Inc., a Delaware corporation (“Buyer”), an entity affiliated with 1315 Capital II, LP, as a result of the Company’s strategic decision to focus investment on its core Plastic Surgery segment. The Sale was made pursuant to the terms and conditions of the Asset Purchase Agreement (the “Purchase Agreement”), dated May 11, 2021, among the Company and certain of its subsidiaries, Buyer, and, solely for purposes of Section 8.14 of the Purchase Agreement, 1315 Capital II, LP. The aggregate purchase price was $10.0 million, which after certain adjustments for agreed upon changes in the estimated net asset value amount of purchased assets and assumed liabilities resulted in net cash proceeds of $11.3 million to the Company on the date of close. In October 2021, the Company finalized the transaction and paid $3.2 million to the Buyer in accordance with the agreed upon post close changes in the net asset value and recognized a loss on sale of $2.5 million.
In accordance with the Purchase Agreement, assumed liabilities did not include product liabilities, environmental, and employee claims arising prior to the closing date. The Purchase Agreement also included customary representations and warranties, as well as certain covenants, including, among other things, that: (i) the Company will abide by certain non-solicitation, exclusivity, and non-competition covenants, and (ii) the Company would enter into a transition services agreement (“TSA”) to provide certain transition services related to the business.
Under the TSA, the Company provided certain post-closing services to the Buyer related to the miraDry business for a period of six months, including accounting, accounts receivable support, customer service, IT, regulatory, quality assurance, and clinical support. As consideration for these services, the Buyer reimbursed the Company for direct and certain indirect costs, as well as certain overhead or administrative expenses related to operating the business. The Company recognized $0.1 million of TSA fees and cost reimbursements in operating expenses from continuing operations in the condensed consolidated statement of operations for the quarter ended March 31, 2022. As of March 31, 2022, the Company has received $0.3 million relating to the TSA services and has recorded a receivable of $0.1 million within other current assets in the condensed consolidated balance sheets. In connection with the accounts receivable support under the TSA, the Company received $2.3 million in customer payments and remitted $2.3 million to the Buyer during the period from June 10, 2021 through March 31, 2022. As of March 31, 2022, the Company does not have a payable to the Buyer on the condensed consolidated balance sheets.
Additionally, the Company and the Buyer entered into a sublease agreement whereby the Buyer subleased the miraDry office space in Santa Clara, CA. The sublease term was for an initial period of six months, with subsequent option periods for up to a total of twenty four months. Following the initial period, the Buyer exercised an additional period of six months. During quarter ended March 31, 2022, the Company recognized $0.2 million of sublease income in general and administrative expenses in the condensed consolidated statements of operations. The Sale met the discontinued operations criteria given that the business is a component and represented a strategic shift. The following table presents the aggregate carrying amounts of major classes of assets and liabilities of discontinued operations (in thousands):
The results of operations for the miraDry business were included in income (loss) from discontinued operations on the accompanying condensed consolidated statements of operations. The following table provides information regarding the results of discontinued operations (in thousands):
The results of the miraDry business, including the results of operations, cashflows, and related assets and liabilities are reported as discontinued operations for all periods presented herein. |
Revenue |
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Revenue | 3. Revenue The Company generates revenue primarily through the sale and delivery of promised goods or services to customers. Sales prices are documented in the executed sales contract, purchase order or order acknowledgement prior to the transfer of control to the customer. Typical payment terms are 30 days. Revenue contracts may include multiple products or services, each of which is considered a separate performance obligation. Performance obligations typically include the delivery of promised products, such as breast implants, tissue expanders, and BIOCORNEUM, along with service-type warranties. Other deliverables are sometimes promised but are ancillary and insignificant in the context of the contract as a whole. Revenue is allocated to each performance obligation based on its relative standalone selling price. The Company determines standalone selling prices based on observable prices for all performance obligations with the exception of the service-type warranty under the Platinum20 Limited Warranty Program, or Platinum20, which is based on the expected cost plus margin approach. Inputs into the expected cost plus margin approach include historical incidence rates, estimated replacement costs, estimated financial assistance payouts and an estimated margin. The liability for unsatisfied performance obligations under the service warranty as of March 31, 2022 were as follows:
Revenue for service warranties are recognized ratably over the term of the agreements. Specifically for Platinum20, the performance obligation is satisfied at the time that the benefits are provided and are expected to be satisfied over the following 3 to 24 month period for financial assistance and 20 years for product replacement.
For delivery of promised products, control transfers and revenue is recognized upon shipment, unless the contractual arrangement requires transfer of control when products reach their destination, for which revenue is recognized once the product arrives at its destination. A portion of the Company’s revenue is generated from the sale of consigned inventory of breast implants and tissue expanders maintained at doctor, hospital, and clinic locations. For these products, revenue is recognized at the time the Company is notified by the customer that the product has been used, not when the consigned products are delivered to the customer’s location. Sales Return Liability
With the exception of the Company’s BIOCORNEUM scar management products, the Company allows for the return of products from customers within six months after the original sale, which is accounted for as variable consideration. A sales return liability is established based on estimated returns using relevant historical experience taking into consideration recent gross sales and notifications of pending returns, as adjusted for changes in recent industry events and trends. The estimated sales returns are recorded as a reduction of revenue and as a sales return liability in the same period revenue is recognized. Actual sales returns in any future period are inherently uncertain and thus may differ from the estimates. If actual sales returns differ significantly from the estimates, an adjustment to revenue in the current or subsequent period would be recorded. The following table provides a rollforward of the sales return liability (in thousands):
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Fair Value of Financial Instruments |
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Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, customer deposits and sales return liability are reasonable estimates of their fair value because of the short maturity of these items. The fair value of the contingent consideration is discussed in Note 5. The fair value of the debt is based on the amount of future cash flows associated with the instrument discounted using the Company’s market rate. As of March 31, 2022, the carrying value of the long-term debt was not materially different from the fair value. As of March 31, 2022, the carrying value and fair value of the convertible note were as follows (in thousands):
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Balance Sheet Components |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Components | 5. Balance Sheet Components a. Inventories Inventories, net consist of the following (in thousands):
b. Property and Equipment Property and equipment, net consist of the following (in thousands):
Depreciation expense for the three months ended March 31, 2022 and 2021 was $0.8 million and $0.7 million, respectively.
c. Goodwill and Other Intangible Assets, net Following the sale of the miraDry business, the Company has one reporting unit, Plastic Surgery, formerly known as Breast Products. The Company evaluates goodwill for impairment at least annually on October 1st and whenever circumstances suggest that goodwill may be impaired. The carrying amount of goodwill as of March 31, 2022 and December 31, 2021 were as follows (in thousands):
The components of the Company’s other intangible assets consist of the following (in thousands):
Amortization expense for the three months ended March 31, 2022 and 2021 were $0.9 million and $0.3 million, respectively. The following table summarizes the future estimated amortization expense relating to the Company's definite-lived intangible assets as of March 31, 2022 (in thousands):
d. Accrued and Other Current Liabilities Accrued and other current liabilities consist of the following (in thousands):
e. Accrued warranties The following table provides a rollforward of the accrued assurance-type warranties (in thousands):
As of March 31, 2022 and 2021, both balances are included in “Warranty reserve and other long-term liabilities”.
f. Liabilities measured at fair value Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs (other than Level 1 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. Contingent consideration The contingent consideration balance consists of milestone payments related to the acquisition of AuraGen and future royalty payments related to the acquisition of BIOCORNEUM.
Level 3. The following tables present information about the Company’s liabilities that are measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 and indicate the level of the fair value hierarchy utilized to determine such fair value (in thousands):
The following table provides a rollforward of the aggregate fair values of the Company’s liabilities for which fair value is determined by Level 3 inputs (in thousands):
The liability for the current portion of contingent consideration is included in “Accrued and other current liabilities” and the long-term portion is included in “Deferred and contingent consideration” in the condensed consolidated balance sheets. |
Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | 6. Leases
Components of lease expense were as follows:
Short-term lease expense for the three months ended March 31, 2022 and 2021 was not material.
Supplemental cash flow information related to operating and finance leases for the three months ended March 31, 2022 was as follows (in thousands):
Supplemental balance sheet information related to operating and finance leases was as follows (in thousands, except lease term and discount rate):
As of March 31, 2022, maturities of the Company’s operating and finance lease liabilities are as follows (in thousands):
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Debt |
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||
Debt | 7. Debt
On March 30, 2022 (the “Effective Date”), the Company entered into a Third Amendment (the “Third Amendment”) to the Term Loan Agreement, with certain of the Company’s wholly owned subsidiaries, the lenders party thereto and MidCap, in order to provide the Company an additional tranche of funding and allow the Company to draw the fourth tranche. The Third Amendment provided that the fourth tranche of $5,000,000 was to be drawn on March 31, 2022. Additionally, the Third Amendment provides the Company with a sixth tranche pursuant to which the Company may draw $9,000,000 any time after January 1, 2023 until March 31, 2023. The Third Amendment also eliminated the minimum unrestricted cash requirement and reset the minimum Net Revenue (as defined therein) requirements based on the Company’s 12-month trailing Net Revenue. Finally, the Third Amendment increased the prepayment fee by 0.5% until following the third anniversary of the Effective Date, at which point no prepayment fee shall apply.
As of March 31, 2022, there was $21.0 million of outstanding principal and $0.3 million of an exit fee payable related to the term loans, reduced by unamortized debt issuance costs of $0.8 million included in "Current portion of long-term debt" and $0.5 million included in “Long-term debt” on the condensed consolidated balance sheets.
Also on March 30, 2022, the Company entered into a Sixth Amendment (the “Sixth Amendment”) to the Revolving Loan Agreement, with certain of the Company’s wholly owned subsidiaries, the lenders party thereto and MidCap. The Sixth Amendment modified the Net Revenue (as defined therein) requirement in a manner consistent with the modification under the Restated Term Loan Agreement. In addition, the Sixth Amendment made other conforming changes to the Restated Term Loan Agreement.
As of March 31, 2022, there were $2.5 million outstanding under the Revolving Loan. As of March 31, 2022, the unamortized debt issuance costs related to the revolving loan was approximately $41,000 and was included in “Other assets” on the condensed consolidated balance sheets.
The amortization of debt issuance costs on the term loan and the revolving loan for the three months ended March 31, 2022 and 2021 were $0.1 million and $0.2 million, respectively, and was included in interest expense in the condensed consolidated statements of operations. The Credit Agreements include customary affirmative and restrictive covenants and representations and warranties, including a financial covenant for minimum revenues, a financial covenant for minimum cash requirements, a covenant against the occurrence of a “change in control,” financial reporting obligations, and certain limitations on indebtedness, liens, investments, distributions, collateral, mergers or acquisitions, taxes, and deposit accounts. Upon the occurrence of an event of default, a default interest rate of an additional 5.0% may be applied to any outstanding principal balances, and MidCap may declare all outstanding obligations immediately due and payable and take such other actions as set forth in the Credit Agreements. The Company’s obligations under the Credit Agreements are secured by a security interest in substantially all of the Company’s assets.
Convertible Note
As of March 31, 2022, the unamortized debt discount and issuance costs were $11.7 million and included in “Long-term debt” on the condensed consolidated balance sheet. The Company will amortize the debt discount and debt issuance costs to interest expense under the effective interest method over the term of the Note, at a resulting effective interest rate of approximately 12%. For the three months ended March 31, 2022 and 2021, the amortization of the convertible debt discount and issuance costs were $0.8 million and $0.7 million, respectively. Both were included in interest expense in the condensed consolidated statements of operations.
Future Principal Payments of Debt
The future schedule of principal payments for all outstanding debt as of March 31, 2022 was as follows (in thousands):
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Stockholders' Equity |
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Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | 8. Stockholders’ Equity a. Authorized Stock The Company’s Amended and Restated Certificate of Incorporation authorizes the Company to issue 210,000,000 shares of common and preferred stock, consisting of 200,000,000 shares of common stock with $0.01 par value and 10,000,000 shares of preferred stock with $0.01 par value. As of March 31, 2022 and December 31, 2021, the Company had no preferred stock issued or outstanding. b. Stock Option Plans As of March 31, 2022, a total of 2,290,949 shares of the Company’s common stock were available for issuance under the 2014 Plan. As of March 31, 2022, inducement grants for 2,342,893 shares of common stock have been awarded, and 272,313 shares of common stock were available for future issuance under the Inducement Plan. Options under the 2007 Plan and the 2014 Plan may be granted for periods of up to ten years as determined by the Company’s board of directors, provided, however, that (i) the exercise price of an ISO shall not be less than 100% of the estimated fair value of the shares on the date of grant, and (ii) the exercise price of an ISO granted to a more than 10% shareholder shall not be less than 110% of the estimated fair value of the shares on the date of grant. An NSO has no such exercise price limitations. NSOs under the Inducement Plan may be granted for periods of up to ten years as determined by the board of directors, provided, the exercise price will not be less than 100% of the estimated fair value of the shares on the date of grant. Options generally vest with 25% of the grant vesting on the first anniversary and the balance vesting monthly on a straight-lined basis over the requisite service period of additional years for the award. Additionally, options have been granted to certain key executives that vest upon achievement of performance conditions based on performance targets as defined by the board of directors, which have included net sales targets and defined corporate objectives over the performance period with possible payout ranging from 0% to 100% of the target award. Compensation expense is recognized on a straight-lined basis over the vesting term of one year based upon the probable performance target that will be met. The vesting provisions of individual options may vary but provide for vesting of at least 25% per year. The following summarizes all option activity under the 2007 Plan, 2014 Plan and Inducement Plan:
For stock-based awards the Company recognizes compensation expense based on the grant date fair value using the Black-Scholes option valuation model. Stock-based compensation expense related to stock options for both the three months ended March 31, 2022 and 2021 were $0.1 million. As of March 31, 2022, unrecognized compensation costs related to stock options was $1.7 million. c. Restricted Stock Units The Company has issued restricted stock unit awards, or RSUs, under the 2014 Plan and the Inducement Plan. The RSUs issued to employees generally vest on a straight-line basis annually over a 3-year requisite service period. RSUs issued to non-employees generally vest either monthly or annually over the service term. Activity related to RSUs is set forth below:
Stock-based compensation expense for RSUs for the three months ended March 31, 2022 and 2021 was $1.9 million and $2.9 million, respectively. As of March 31, 2022, there was $13.5 million of total unrecognized compensation costs related to non-vested RSU awards. The cost is expected to be recognized over a weighted average period of approximately 2.32 years. d. Employee Stock Purchase Plan The Company’s board of directors adopted the 2014 Employee Stock Purchase Plan, or ESPP, in July 2014, and the stockholders approved the ESPP in October 2014. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The ESPP provides for offering periods not to exceed 27 months, and each offering period will include purchase periods, which will be the approximately six-month period commencing with one exercise date and ending with the next exercise date. Employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the purchase date. A total of 255,500 shares of common stock were initially reserved for issuance under the ESPP, subject to certain annual increases. During the three months ended March 31, 2022, employees purchased 139,574 shares of common stock at a weighted average price of $2.36 per share. As of March 31, 2022, the number of shares of common stock available for future issuance was 1,735,734. The Company estimated the fair value of employee stock purchase rights using the Black-Scholes model. Stock-based compensation expense related to the ESPP was $0.1 million for both the three months ended March 31, 2022 and 2021. e. Significant Modifications During the three months ended March 31, 2022 and 2021, there were no material modifications of equity awards. |
Net Loss Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | Loss Per Share Basic net loss per share attributable to common stockholders is computed by dividing net loss by the weighted average number of common shares outstanding during each period. Diluted net loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares and dilutive potential common share equivalents then outstanding, to the extent they are dilutive. Potential dilutive shares consist of shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Dilutive net loss per share is the same as basic net loss per share for all periods presented because the effects of potentially dilutive items were anti-dilutive.
The Company excluded the following potentially dilutive securities, outstanding for the three months ended March 31, 2022 and 2021, from the computation of diluted net loss per share attributable to common stockholders for the three months ended March 31, 2022 and 2021 because they had an anti-dilutive impact due to the net loss attributable to common stockholders incurred for the periods.
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Income Taxes |
3 Months Ended |
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Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company operates in several tax jurisdictions and is subject to taxes in each jurisdiction in which it conducts business. To date, the Company has incurred cumulative net losses and maintains a full valuation allowance on its net deferred tax assets due to the uncertainty surrounding realization of such assets. The Company had no tax expense for both the three months ended March 31, 2022 and 2021. |
Segment Information |
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Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | 11. Segment Information
Following the sale of the miraDry business on June 10, 2021, the Company has one reportable segment named Plastic Surgery, formally known as Breast Products. The Plastic Surgery segment focuses on sales of silicone gel breast implants, tissue expanders, scar management products, and the fat grafting system under the brands Sientra Smooth, Sientra Teardrop, AlloX2, Dermaspan, Softspan, BIOCORNEUM, and AuraGen.
The net sales, net operating loss and net assets for the Plastic Surgery segment are presented in the condensed consolidated statement of operations and condensed consolidated balance sheets as continuing operations. |
Commitments and Contingencies |
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Mar. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies The Company is subject to claims and assessment from time to time in the ordinary course of business. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. Product Liability Litigation On October 7, 2019, a lawsuit was filed in the Superior Court of the State of California against the Company and Silimed Industria de Implantes Ltda. (the Company’s former contract manufacturer). The lawsuit alleges that the Company’s textured breast implants caused certain of the plaintiffs to develop a condition known as breast implant associated anaplastic large cell lymphoma (“BIA-ALCL”), and that the Company is liable to the plaintiffs based on claims for strict liability (failure to warn), strict liability (defective manufacture), negligence and loss of consortium. On January 21, 2020, the Company filed a demurrer to the plaintiff’s complaint, which demurrer the Court granted in a tentative ruling dated March 9, 2021 with leave to replead. The Plaintiffs filed an amended complaint on April 6, 2021 and the Company filed a demurrer to that complaint on May 6, 2021. On October 25, 2021, the Court issued a ruling granting the Company’s demurrer in-part and denying it in-part, and gave plaintiffs twenty days to file an amendment complaint. A second amended complaint was filed on November 19, 2021. On December 3, 2021 the Company filed a renewed motion for demurrer as to all plaintiffs based on the recent FDA labelling updates on BIA-ALCL warnings. On January 5, 2022 the Company filed a demurrer to the second amended complaint as to plaintiff Craft and otherwise filed an Answer denying the remaining plaintiff's claims and asserting affirmative defenses. The Company's renewed demurrer as to all plaintiffs, and demurrer as to Craft is scheduled for oral argument on September 20, 2022. The Company intends to vigorously defend itself in this lawsuit. Given the nature of this case, the Company is unable to estimate the reasonably possible loss or range of loss, if any, arising from this matter. On September 23, 2020, a lawsuit was filed in the Eastern District of Tennessee against the Company. The lawsuit alleges that the Company’s textured breast implants caused certain of the plaintiffs to develop a condition known as breast implant associated anaplastic large cell lymphoma (“BIA-ALCL”), and that the Company is liable to the plaintiffs based on claims for negligence, strict liability (manufacturing defects), strict liability (failure to warn), breach of express and implied warranties, and punitive damages. The Company filed a motion to dismiss the complaint on December 7, 2020. On February 28, 2022 the Court granted the Company’s motion, and dismissed the plaintiff’s complaint with prejudice. On March 28, 2022, the plaintiff filed a motion for reconsideration of the Court’s order. The Company opposed that motion on April 11, 2022. |
Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | a. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Sientra, Inc. (“Sientra”, the “Company”, “we”, “our”, or “us”) in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, and the rules and regulations of the U.S. Securities and Exchange Commission, or SEC. Accordingly, they do not include certain footnotes and financial presentations normally required under accounting principles generally accepted in the United States of America for complete financial reporting. The interim financial information is unaudited, but reflects all normal adjustments and accruals which are, in the opinion of management, considered necessary to provide a fair presentation for the interim periods presented. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on March 31, 2022, or the Annual Report. The results for the three months ended March 31, 2022 are not necessarily indicative of results to be expected for the year ending December 31, 2022, any other interim periods, or any future year or period. As a result of the miraDry Sale discussed in Note 2, the miraDry business met the criteria to be reported as discontinued operations. Therefore, the Company is reporting the historical results of miraDry, including the results of operations, cash flows, and related assets and liabilities, as discontinued operations for all periods presented herein through the date of the Sale. Unless otherwise noted, the accompanying notes to the unaudited condensed consolidated financial statements have all been revised to reflect continuing operations only. As discussed in Note 11, following the Sale the Company has one operating segment in continuing operations named Plastic Surgery, formerly known as Breast Products. |
Liquidity | b. Liquidity Since the Company’s inception, it has incurred significant net operating losses and the Company anticipates that losses will continue in the near term. The Company expects its operating expenses will remain consistent with the current period and will need to generate significant net sales to achieve profitability. To date, the Company has funded operations primarily with proceeds from the sales of preferred stock, borrowings under term loans and the convertible note, sales of products, and the proceeds from the sale of common stock in public offerings. The Company continues to evaluate overall capital needs, and while the Company believes there are sufficient capital resources to continue as a going concern over the next twelve months, the Company may be required to raise additional debt or equity capital to fund ongoing operations. As of March 31, 2022, the Company had cash and cash equivalents of $38.9 million. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. Debt financing – recent developments Refer to Note 7 for a full description and updates to all of the Company’s long-term debt, revolving line of credit, and convertible note. |
Recent Accounting Pronouncements | c. Recent Accounting Pronouncements
Recently Issued Accounting Standards
In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The amendment eliminates certain accounting models and simplifies the accounting for convertible instruments and enhances disclosures for convertible instruments and earnings per share. The amendments are effective for public entities excluding smaller reporting companies for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023 including interim periods within those fiscal years and early adoption is permitted. The Company is currently evaluating the impact that adoption of the standard will have on the condensed consolidated financial statements.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848)-Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendment provides optional expedients and exceptions for contract modifications that replace a reference rate affected by reference rate reform. The amendments are effective for all entities as of March 12, 2020 through December 31, 2022, and entities may elect to apply by Topic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. The Company is currently evaluating the impact the election of the optional expedient will have on the condensed consolidated financial statements. |
Risks and Uncertainties | d. Risks and Uncertainties
As an aesthetics company, surgical procedures involving the Company’s breast products are susceptible to local and national government restrictions, such as social distancing, vaccination requirements, “shelter in place” orders and business closures. The inability or limited ability to perform such non-emergency procedures and patients electing to postpone elective aesthetics procedures due to the pandemic significantly harmed the Company’s revenues since the second quarter of 2020 and continued to harm the Company’s revenues during the three months ended March 31, 2022. While many states have lifted certain restrictions on non-emergency procedures and procedural volume rates for non-emergency procedures have been recovering, the Company will likely continue to experience future harm to its revenues while existing or new restrictions remain in place. It is not possible to accurately predict the length or severity of the COVID-19 pandemic or the impact on the Company’s business, including the timing for a broad and sustained ability to perform non-emergency procedures involving the Company’s products. The Company continues to monitor and assess new information related to the COVID-19 pandemic, the actions taken to contain or treat COVID-19, as well as the economic impact on local, regional, national and international customers and markets.
Further, the spread of COVID-19 has caused the Company to modify workforce practices, and the Company may take further actions determined to be in the best interests of the Company’s employees or as required by governments. The continued spread of COVID-19, or another infectious disease, could also result in delays or disruptions in the Company’s supply chain or adversely affect the Company’s manufacturing facilities and personnel. Further, trade and/or national security protection policies may be adjusted as a result of the COVID-19 pandemic, such as actions by governments that limit, restrict or prevent the movement of certain goods into a country and/or region, and current U.S./China trade relations may be further exacerbated by the pandemic.
The estimates used for, but not limited to, determining the collectability of accounts receivable, fair value of long-lived assets and goodwill, and sales returns liability required could be impacted by the pandemic. While the full impact of COVID-19 is unknown at this time, the Company has made appropriate estimates based on the facts and circumstances available as of the reporting date. These estimates may change as new events occur and additional information is obtained. |
Reclassifications | e. Reclassifications
Certain reclassifications have been made to prior year amounts to conform to the current year presentation, including those related to discontinued operations following the sale of the miraDry business. |
Discontinued Operations (Tables) |
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Discontinued Operations And Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups Including Discontinued Operations Balance Sheet and Income Statement | The following table presents the aggregate carrying amounts of major classes of assets and liabilities of discontinued operations (in thousands):
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Revenue (Tables) |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue From Contract With Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Rollforward of Sales Return Liability | The following table provides a rollforward of the sales return liability (in thousands):
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Schedule of Liability for Unsatisfied Performance Obligations Under Service Warranty | The liability for unsatisfied performance obligations under the service warranty as of March 31, 2022 were as follows:
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Fair Value of Financial Instruments (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments Owned At Fair Value [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Value and Fair Value of Convertible Note | As of March 31, 2022, the carrying value and fair value of the convertible note were as follows (in thousands):
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Balance Sheet Components (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of inventories, net | Inventories, net consist of the following (in thousands):
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Schedule of property and equipment, net | Property and equipment, net consist of the following (in thousands):
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Schedule of Carrying Amount of Goodwill | The carrying amount of goodwill as of March 31, 2022 and December 31, 2021 were as follows (in thousands):
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Schedule of Other Intangible assets | The components of the Company’s other intangible assets consist of the following (in thousands):
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Schedule of Future Estimated Amortization Expense | The following table summarizes the future estimated amortization expense relating to the Company's definite-lived intangible assets as of March 31, 2022 (in thousands):
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Schedule of accrued and other current liabilities | Accrued and other current liabilities consist of the following (in thousands):
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Schedule of rollforward of the accrued assurance-type warrantie | The following table provides a rollforward of the accrued assurance-type warranties (in thousands):
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Schedule of Company's Liabilities that are Measured at Fair Value on a Recurring Basis | The following tables present information about the Company’s liabilities that are measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 and indicate the level of the fair value hierarchy utilized to determine such fair value (in thousands):
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Schedule of Aggregate Fair Values of Company's Liabilities for which Fair Value is Determined by Level 3 Inputs | The following table provides a rollforward of the aggregate fair values of the Company’s liabilities for which fair value is determined by Level 3 inputs (in thousands):
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Leases (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Lease Expense | Components of lease expense were as follows:
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Supplemental Cash Flow Information Related to Operating and Finance Leases | Supplemental cash flow information related to operating and finance leases for the three months ended March 31, 2022 was as follows (in thousands):
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Supplemental Balance Sheet Information Related to Operating and Finance Leases | Supplemental balance sheet information related to operating and finance leases was as follows (in thousands, except lease term and discount rate):
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Maturities of Operating and Finance Lease Liabilities | As of March 31, 2022, maturities of the Company’s operating and finance lease liabilities are as follows (in thousands):
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Debt (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||
Schedule of Future Principal Payments for Outstanding Debt | The future schedule of principal payments for all outstanding debt as of March 31, 2022 was as follows (in thousands):
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Stockholders' Equity (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of option activity | The following summarizes all option activity under the 2007 Plan, 2014 Plan and Inducement Plan:
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Summary of RSUs activity | Activity related to RSUs is set forth below:
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Net Loss Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net loss per share, basic and diluted |
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Schedule of potentially dilutive securities excluded from the computation of diluted net loss per share attributable to common stockholders | The Company excluded the following potentially dilutive securities, outstanding for the three months ended March 31, 2022 and 2021, from the computation of diluted net loss per share attributable to common stockholders for the three months ended March 31, 2022 and 2021 because they had an anti-dilutive impact due to the net loss attributable to common stockholders incurred for the periods.
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Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
Mar. 31, 2021 |
---|---|---|---|
Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 38,883 | $ 51,772 | $ 80,372 |
Discontinued Operations - Summary of Aggregate Carrying Amounts of Major Classes of Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Assets of discontinued operations: | ||
Prepaid expenses and other current assets | $ 4 | $ 4,000 |
Current assets of discontinued operations | 4 | 4 |
Total assets of discontinued operations | 4 | 4 |
Liabilities of discontinued operations: | ||
Accounts payable | 6 | 6 |
Accrued and other current liabilities | 494 | 494 |
Total liabilities of discontinued operations | $ 500 | $ 500 |
Discontinued Operations - Summary of Information Regarding the Results of Discontinued Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Discontinued Operation Income Loss From Discontinued Operation Disclosures [Abstract] | ||
Net sales | $ 4,924 | |
Cost of goods sold | 2,776 | |
Gross profit | 2,148 | |
Operating expenses | $ 56 | 196 |
Income (loss) from operations of discontinued operations | (56) | 1,952 |
Other income (expense), net | (31) | |
Income (loss) from discontinued operations before income taxes | (56) | 1,921 |
Total income (loss) from discontinued operations before income taxes | (56) | 1,921 |
Income (loss) from discontinued operations, net of income taxes | $ (56) | $ 1,921 |
Revenue (Details 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 |
Mar. 31, 2022 |
---|---|
Product Replacement | |
Revenue From Contracts With Customers [Line Items] | |
Performance obligation satisfying period | 20 years |
Breast Products and Consumable miraDry products | |
Revenue From Contracts With Customers [Line Items] | |
Performance obligation satisfying period | 30 days |
Maximum | Financial Assistance | |
Revenue From Contracts With Customers [Line Items] | |
Performance obligation satisfying period | 24 months |
Minimum | Financial Assistance | |
Revenue From Contracts With Customers [Line Items] | |
Performance obligation satisfying period | 3 months |
Revenue (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Change In Contract With Customer Liability [Abstract] | |
Period for sales return | 6 months |
Revenue - Schedule of Liability for Unsatisfied Performance Obligations Under Service Warranty and Deliverables Under Certain Marketing Programs (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
| |
Change In Contract With Customer Liability [Abstract] | |
Balance as of December 31, 2021 | $ 3,237 |
Additions and adjustments | 555 |
Revenue recognized | (176) |
Balance as of March 31, 2022 | $ 3,616 |
Revenue - Schedule of Rollforward of Sales Return Liability (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Revenue Recognition [Abstract] | ||
Beginning balance | $ 13,399 | $ 9,192 |
Addition to reserve for sales activity | 41,870 | 36,386 |
Actual returns | (37,030) | (33,700) |
Change in estimate of sales returns | (1,746) | (858) |
Ending balance | $ 16,493 | $ 11,020 |
Fair Value of Financial Instruments - Schedule of Carrying Value and Fair Value of Convertible Note (Details) - Convertible Note - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Carrying Value | $ 48,268 | $ 47,477 |
Fair Value | $ 43,110 | $ 42,029 |
Balance Sheet Components (Inventories) (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 1,743 | $ 2,109 |
Work in progress | 4,690 | 4,796 |
Finished goods | 43,022 | 41,982 |
Finished goods - right of return | 4,769 | 4,027 |
Inventory, net | $ 54,224 | $ 52,914 |
Balance Sheet Components (PPE) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | $ 22,225 | $ 22,249 | |
Less accumulated depreciation | (9,140) | (8,251) | |
Property and equipment, net | 13,085 | 13,998 | |
Depreciation expense | 800 | $ 700 | |
Leasehold improvements | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 3,464 | 2,734 | |
Manufacturing equipment and toolings | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 9,577 | 9,922 | |
Computer equipment | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 1,661 | 1,672 | |
Software | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 6,344 | 6,379 | |
Furniture and fixtures | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | $ 1,179 | $ 1,542 |
Balance Sheet Components - Schedule of Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Goodwill and intangible assets | ||
Goodwill, net | $ 9,202 | $ 9,202 |
Plastic Surgery | ||
Goodwill and intangible assets | ||
Goodwill | 23,480 | 23,480 |
Accumulated impairment losses | (14,278) | (14,278) |
Goodwill, net | $ 9,202 | $ 9,202 |
Balance Sheet Components (Goodwill and Other Intangible Assets) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Other intangible assets | ||
Amortization expense | $ 0.9 | $ 0.3 |
Balance Sheet Components - Schedule of Future Estimated Amortization Expense (Details) $ in Thousands |
Mar. 31, 2022
USD ($)
|
---|---|
Estimated amortization expense | |
2022 | $ 3,374 |
2023 | 3,594 |
2024 | 3,449 |
2025 | 3,306 |
2026 | 3,133 |
Thereafter | 10,584 |
Total amortization | $ 27,440 |
Balance Sheet Components (Accrued liabilities) (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Accrued and other current liabilities | ||
Payroll and related expenses | $ 3,189 | $ 5,188 |
Accrued severance | 474 | 248 |
Accrued commissions | 3,020 | 4,329 |
Accrued manufacturing | 30 | 121 |
Deferred and contingent consideration, current portion | 2,567 | 2,431 |
Audit, consulting and legal fees | 131 | 185 |
Accrued sales and marketing expenses | 189 | 159 |
Lease liabilities | 1,727 | 1,666 |
Other | 6,728 | 6,971 |
Total | $ 18,055 | $ 21,298 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued and Other Current Liabilities | Accrued and Other Current Liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued and Other Current Liabilities | Accrued and Other Current Liabilities |
Balance Sheet Components - Schedule of rollforward of the accrued assurance-type warranties (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Beginning Balance | $ 2,505 | $ 1,934 |
Warranty costs incurred during the period | (158) | (31) |
Changes in accrual related to warranties issued during the period | 267 | 195 |
Changes in accrual related to pre-existing warranties | 24 | 5 |
Ending Balance | $ 2,638 | $ 2,103 |
Monte-Carlo Simulation Model | Measurement Input, Volatility Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assumption for Fair Value of Interests Continued to be Held by Transferor Servicing Assets or Liabilities Volatility Rate | 100.00% |
Balance Sheet Components (Liabilities measured at fair value) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Measurement Input, Discount Rate | BIOCORNEUM | Future Royalty Payments | |
Fair Value Measurements | |
Fair value measurement discount rate | 21.00% |
Balance Sheet Components - Schedule of Company's Liabilities that are Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Fair Value Measurements | ||
Fair value liability | $ 3,039 | |
Contingent Consideration Liability | ||
Fair Value Measurements | ||
Fair value liability | 3,039 | $ 3,114 |
Derivative Liability | ||
Fair Value Measurements | ||
Fair value liability | 3,114 | |
Level 3 | ||
Fair Value Measurements | ||
Fair value liability | 3,039 | |
Level 3 | Contingent Consideration Liability | ||
Fair Value Measurements | ||
Fair value liability | $ 3,039 | 3,114 |
Level 3 | Derivative Liability | ||
Fair Value Measurements | ||
Fair value liability | $ 3,114 |
Balance Sheet Components - Schedule of Aggregate Fair Values of Company's Liabilities for which Fair Value is Determined by Level 3 Inputs (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
| |
Fair Value Measurements | |
Balance at beginning of the period | $ 3,114 |
Level 3 | Contingent Consideration Liability | Fair Value, Recurring | |
Fair Value Measurements | |
Change in fair value | (75) |
Balance at the end of the period | $ 3,039 |
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Lessee Lease Description [Line Items] | ||
Total operating lease cost | $ 295 | $ 528 |
Sublease income | (200) | |
Finance lease cost | ||
Total finance lease cost | 16 | 24 |
Total lease cost | 311 | 552 |
Inventory | ||
Lessee Lease Description [Line Items] | ||
Total operating lease cost | 114 | 100 |
Finance lease cost | ||
Amortization of right-of-use assets | 12 | 12 |
Operating Expenses | ||
Lessee Lease Description [Line Items] | ||
Total operating lease cost | 414 | 428 |
Sublease income | (233) | |
Finance lease cost | ||
Amortization of right-of-use assets | 3 | 10 |
Other Income (Expense), Net | ||
Finance lease cost | ||
Interest on lease liabilities | $ 1 | $ 2 |
Leases - Supplemental Cash Flow Information Related to Operating and Finance Leases (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflows from operating leases | $ 407 | $ 418 |
Operating cash outflows from finance leases | $ 13 | $ 24 |
Leases - Maturities of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Operating Lease Liabilities, Payments Due [Abstract] | ||
Operating leases, 2022 | $ 1,665 | |
Operating leases, 2023 | 2,267 | |
Operating leases, 2024 | 1,816 | |
Operating leases, 2025 | 896 | |
Operating leases, 2026 | 851 | |
Operating leases, 2027 | 582 | |
Total operating lease payments | 8,077 | |
Less imputed interest, Operating leases | 1,293 | |
Total operating lease liabilities | 6,784 | |
Finance Lease Liabilities, Payments, Due [Abstract] | ||
Finance leases, 2022 | 50 | |
Finance leases, 2023 | 38 | |
Finance leases, 2024 | 4 | |
Total finance lease payments | 92 | |
Less imputed interest, Finance leases | 3 | |
Total finance lease liabilities | 89 | |
Lessee Lease Liability Payments Due [Abstract] | ||
2022 | 1,715 | |
2023 | 2,305 | |
2024 | 1,820 | |
2025 | 896 | |
2026 | 851 | |
2027 | 582 | |
Total lease payments | 8,169 | |
Less imputed interest | 1,296 | |
Total lease liabilities | $ 6,873 | $ 7,270 |
Debt (Schedule of Future Principal Payments of Outstanding Debt) (Details) $ in Thousands |
Mar. 31, 2022
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2022 | $ 2,460 |
2023 | 14,000 |
2024 | 7,000 |
2025 | 60,000 |
Total | $ 83,460 |
Stockholders' Equity (Details) - $ / shares |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|---|
Stock other disclosures | |||||
Common and preferred stock, shares authorized | 210,000,000 | 210,000,000 | |||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |
Preferred stock, shares issued | 0 | 0 | 0 | ||
Preferred stock, shares outstanding | 0 | 0 |
Stockholders' Equity (Restricted Stock) (Details) - Restricted stock units - 2014 Plan - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Sep. 30, 2020 |
|
Stockholders' Equity, other disclosures | |||
Requisite service period, annually | 3 years | ||
Stock-based compensation expense | $ 1.9 | $ 2.9 | |
Unrecognized compensation costs (in dollars) | $ 13.5 | ||
Weighted average period over which unrecognized compensation costs are expected to be recognized | 2 years 3 months 25 days | ||
Number of shares | |||
Balance at beginning of the period | 2,799,552 | ||
Granted | 2,683,961 | ||
Vested | (265,331) | ||
Forfeited | (18,831) | ||
Balance at end of the period | 5,199,351 | ||
Weighted average grant date fair value | |||
Balance at beginning of the period | $ 8.11 | ||
Granted | 2.54 | ||
Vested | 5.17 | ||
Forfeited | 0.31 | ||
Balance at end of the period | $ 5.41 |
Stockholders' Equity (Stock Purchase) (Details) - 2014 Employee Stock Purchase Plan - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Oct. 31, 2014 |
|
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Purchase period of offering | 6 months | ||
Rate of purchase price of stock on fair value (as a percent) | 85.00% | ||
Purchases under the award | 139,574 | ||
Weighted Average purchase price | $ 2.36 | ||
Number of shares available for future grants | 1,735,734 | ||
Stock-based compensation expense | $ 100,000 | $ 100,000 | |
Incremental compensation cost | $ 0 | $ 0 | |
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Discount rate on the value of shares through payroll deductions (as a percent) | 15.00% | ||
Expiration period of each offering | 27 months | ||
Number of shares reserved for future issuance | 255,500 |
Net Loss Per Share - Schedule of Net Loss Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Earnings Per Share [Abstract] | ||
Loss from continuing operations | $ (17,985) | $ (56,611) |
Income (loss) from discontinued operations, net of income taxes | (56) | 1,921 |
Net loss | $ (18,041) | $ (54,690) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 62,334,073 | 54,321,146 |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Continuing operations | $ (0.29) | $ (1.04) |
Discontinued operations | (0.00) | 0.03 |
Basic and diluted net loss per share | $ (0.29) | $ (1.01) |
Net Loss Per Share - Schedule of Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Potentially dilutive securities | ||
Potentially dilutive securities | 17,332,248 | 18,223,750 |
Stock issuable upon conversion of convertible note | ||
Potentially dilutive securities | ||
Potentially dilutive securities | 14,634,146 | 14,634,146 |
Stock options to purchase common stock | ||
Potentially dilutive securities | ||
Potentially dilutive securities | 30,033 | 1,687,409 |
Unvested RSUs | ||
Potentially dilutive securities | ||
Potentially dilutive securities | 2,668,069 | 1,902,195 |
Income Taxes (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Income Tax Disclosure [Abstract] | ||
Tax expense | $ 0 | $ 0 |
Segment Information (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022
Segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |