Annual report pursuant to Section 13 and 15(d)

Revision of Prior Period Financial Statements (Tables)

v3.23.1
Revision of Prior Period Financial Statements (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Changes and Error Corrections [Abstract]  
Summary of impacts of the error on the consolidated financial statements The impact of the revisions to the periods presented in this Annual Report on Form 10-K are as follows (in thousands):
Revised Consolidated Balance Sheets
December 31, 2021
As Previously Reported Adjustment As Revised
Assets
Current assets:
Cash and cash equivalents $ 307,492  $ —  $ 307,492 
Restricted cash 400  —  400 
Accounts receivable, net 6,477  —  6,477 
Inventory 5,140  (2,250) 2,890 
Current portion of contract assets 1,459  —  1,459 
Current portion of commission asset 1,645  —  1,645 
Prepaid expenses and other current assets 11,047  (290) 10,757 
Total current assets 333,660  (2,540) 331,120 
Restricted cash, noncurrent 275  —  275 
Contract assets, noncurrent 3,418  —  3,418 
Commission asset, noncurrent 3,719  —  3,719 
Property and equipment, net 21,592  2,191  23,783 
Other assets 401  141  542 
Total assets $ 363,065  $ (208) $ 362,857 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 6,363  $ (318) $ 6,045 
Accrued expenses and other current liabilities 9,183  368  9,551 
Current portion of deferred revenue 6,690  (91) 6,599 
Current portion of deferred rent 135  —  135 
Current portion of long-term debt 2,000  —  2,000 
Total current liabilities 24,371  (41) 24,330 
Deferred revenue, noncurrent 2,475  —  2,475 
Deferred rent, noncurrent 333  —  333 
Long-term debt, noncurrent 7,945  —  7,945 
Contingent earn-out liability 20,809  397  21,206 
Contingently issuable common stock liability 5,264  —  5,264 
Public warrant liability 11,030  —  11,030 
Total liabilities 72,227  356  72,583 
Stockholders’ equity:
Convertible preferred stock —  —  — 
Common stock 14  —  14 
Additional paid-in capital 395,563  501  396,064 
Accumulated deficit (104,739) (1,065) (105,804)
Stockholders’ equity 290,838  (564) 290,274 
Total liabilities and stockholders’ equity $ 363,065  $ (208) $ 362,857 
December 31, 2020
As Previously Reported Adjustment As Revised
Assets
Current assets:
Cash and cash equivalents $ 4,704  $ —  $ 4,704 
Accounts receivable, net 1,401  —  1,401 
Inventory 2,742  (1,156) 1,586 
Current portion of commission asset 562  —  562 
Prepaid expenses and other current assets 900  641  1,541 
Total current assets 10,309  (515) 9,794 
Commission asset, noncurrent 1,730  —  1,730 
Property and equipment, net 9,316  752  10,068 
Other assets —  173  173 
Total assets $ 21,355  $ 410  $ 21,765 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 4,437  $ —  $ 4,437 
Accrued expenses and other current liabilities 3,727  484  4,211 
Current portion of deferred revenue 3,717  45  3,762 
Current portion of deferred rent 11  —  11 
Current portion of financing obligations 227  —  227 
Total current liabilities 12,119  529  12,648 
Deferred revenue, noncurrent 480  —  480 
Financing obligation, noncurrent 132  —  132 
Long-term debt, noncurrent 16,432  —  16,432 
Derivative Liability 1,000  —  1,000 
Common stock warrant liability 1  —  1 
Total liabilities 30,164  529  30,693 
Stockholders’ equity:
Convertible preferred stock 75,877  —  75,877 
Common stock 1  —  1 
Additional paid-in capital 9,194  916  10,110 
Accumulated deficit (93,881) (1,035) (94,916)
Stockholders’ equity (84,686) (119) (84,805)
Total liabilities and stockholders’ equity $ 21,355  $ 410  $ 21,765 
Revised Consolidated Statements of Operations and Comprehensive Loss
Year Ended
December 31, 2021
As Previously Reported Adjustment As Revised
Revenue:
Product revenue $ 13,917  $ (286) $ 13,631 
Subscription revenue 7,855  (52) 7,803 
Service revenue 1,920  39  1,959 
Total revenue 23,692  (299) 23,393 
Cost of revenue:
Cost of product revenue 12,471  (192) 12,279 
Cost of subscription revenue 3,644  857  4,501 
Cost of service revenue 936  1,648  2,584 
Total cost of revenue 17,051  2,313  19,364 
Gross profit 6,641  (2,612) 4,029 
Operating expenses:
Research and development 11,416  42  11,458 
Sales and marketing expense 27,404  (1,305) 26,099 
General and administrative 20,013  (144) 19,869 
Loss from impairment of property and equipment 1,869  —  1,869 
Total operating expenses 60,702  (1,407) 59,295 
Loss from operations (54,061) (1,205) (55,266)
Other income (expense), net:
Interest expense, net (6,095) 27  (6,068)
Interest income —  —  — 
Loss on disposal of property and equipment (617) —  (617)
Loss on extinguishment of debt (12,685) —  (12,685)
Change in fair value of derivative liability (1,745) —  (1,745)
Change in fair value of contingent earn-out liability 46,212  1,148  47,360 
Change in fair value of contingently issuable common stock liability 6,406  —  6,406 
Change in fair value of public warrant liability 12,606  —  12,606 
Change in fair value of common stock warrant liability (879) —  (879)
Total other income (expense), net 43,203  1,175  44,378 
Net loss $ (10,858) $ (30) $ (10,888)
Weighted average common shares outstanding - basic and diluted 71,662,694  —  71,662,694 
Net loss per share - basic and diluted $ (0.15) $ —  $ (0.15)
Revised Consolidated Statements of Cash Flows
Year Ended
December 31, 2021
As Previously Reported Adjustment As Revised
Cash flows from operating activities:
Net loss $ (10,858) $ (30) $ (10,888)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 2,895  —  2,895 
Write-off of inventory 2,132  —  2,132 
Adjustment to property and equipment for sales type leases (91) —  (91)
Loss from impairment of property and equipment 1,869  —  1,869 
Loss on disposal of property and equipment 617  —  617 
Stock-based compensation 8,511  1,085  9,596 
Non-cash interest expense 5,245  —  5,245 
Provision recorded for allowance for doubtful accounts (13) —  (13)
Loss on extinguishment of debt 12,685  —  12,685 
Change in fair value of derivative liability 1,745  —  1,745 
Change in fair value of common stock warrant liability 879  —  879 
Change in fair value of earn-out liability (46,212) (1,148) (47,360)
Change in fair value of contingently issuable common stock (6,406) —  (6,406)
Change in fair value of public warrant liability (12,606) —  (12,606)
Changes in operating assets and liabilities
Accounts receivable (5,063) —  (5,063)
Inventory (17,479) 14,043  (3,436)
Commission assets (3,072) —  (3,072)
Contract assets (4,877) —  (4,877)
Other assets —  32  32 
Prepaid expenses and other current assets (10,079) 931  (9,148)
Accounts payable (7) 772  765 
Deferred revenue 4,968  (136) 4,832 
Deferred rent 457  —  457 
Warranty reserve (42) —  (42)
Accrued expenses and other current liabilities 5,174  (2,702) 2,472 
Net cash used in operating activities (69,628) 12,847  (56,781)
Cash flows from investing activities:
Development of internal-use software (1,028) —  (1,028)
Purchases of property and equipment (3,710) (12,847) (16,557)
Net cash used in investing activities (4,738) (12,847) (17,585)
Cash flows from financing activities:
Proceeds from exercise of stock options 915  —  915 
Proceeds from issuance of common stock from the PIPE Investment 300,000  —  300,000 
Proceeds from the closing of the Merger 84,945  —  84,945 
Payment of offering costs from the closing of the Merger and PIPE Investment (34,132) —  (34,132)
Repayment of financing obligations (359) —  (359)
Proceeds from long-term debt, net of issuance costs 31,882  —  31,882 
Repayment of principal on long-term debt (5,422) —  (5,422)
Net cash provided by financing activities 377,829  —  377,829 
Net increase (decrease) in cash, cash equivalents and restricted cash 303,463  —  303,463 
Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of period 4,704  —  4,704 
Cash, cash equivalents and restricted cash at end of period $ 308,167  $ —  $ 308,167 
Supplemental disclosure of non-cash activities
Transfer of inventory to property and equipment $ 12,949  $ (12,949) $ — 
Capital expenditures incurred but not yet paid 347  2,589  2,936 
Issuance of equity classified warrants 1  (1) — 
Deferred offering costs included in accounts payable 1,932  11  1,943 
Conversion of convertible preferred stock to common stock 75,877  —  75,877 
Initial fair value of contingent earn-out liability recognized in connection with the closing of the Merger 67,021  —  67,021 
Initial fair value of contingently issuable common stock liability recognized in connection with the closing of the Merger 11,670  —  11,670 
Conversion of common stock warrants to common stock in connection with the closing of the Merger 880  —  880 
Initial fair value of public warrants in connection with the closing of the Merger 23,636  —  23,636 
The following tables summarize the consolidated quarterly results of operations for 2022 and 2021:
2022
First Quarter Second Quarter Third Quarter Fourth Quarter
Total revenue $ 8,710  $ 9,070  $ 16,530  $ 20,885 
Gross profit 897  553  225  54 
Net loss (13,801) (25,686) (18,615) (28,304)
Net loss per share - basic and diluted $ (0.10) $ (0.18) $ (0.13) $ (0.20)
2021
First Quarter Second Quarter Third Quarter Fourth Quarter
Total revenue $ 3,693  $ 4,678  $ 8,424  $ 6,598 
Gross profit 449  728  3,467  (615)
Net income (loss) (13,506) (22,977) 20,807  4,788 
Net income (loss) per share - basic $ (1.29) $ (1.93) $ 0.17  $ 0.03 
Net income (loss) per share - diluted (1.29) (1.93) 0.14  0.03 
The following tables summarize the impact of the revisions described in Note 21 to the periods ending March 31, 2022 and 2021:
Three Months Ended
March 31, 2022
As Previously Reported Adjustment As Revised
Revenue:
Product revenue $ 5,194  $ —  $ 5,194 
Subscription revenue 3,020  (16) 3,004 
Service revenue 501  11  512 
Total revenue 8,715  (5) 8,710 
Cost of revenue:
Cost of product revenue 5,576  (370) 5,206 
Cost of subscription revenue 1,065  477  1,542 
Cost of service revenue 448  617  1,065 
Total cost of revenue 7,089  724  7,813 
Gross profit 1,626  (729) 897 
Operating expenses:
Research and development 4,286  (111) 4,175 
Sales and marketing expense 12,053  (2,381) 9,672 
General and administrative 11,093  (276) 10,817 
Loss from impairment of property and equipment 96  —  96 
Total operating expenses 27,528  (2,768) 24,760 
Loss from operations (25,902) 2,039  (23,863)
Other income (expense), net:
Interest expense (142) —  (142)
Interest income 209  (141) 68 
Change in fair value of contingent earn-out liability 4,226  (1,148) 3,078 
Change in fair value of contingently issuable common stock liability 1,472  —  1,472 
Change in fair value of public warrant liability 5,586  —  5,586 
Total other income (expense), net 11,351  (1,289) 10,062 
Net loss $ (14,551) $ 750  $ (13,801)
Weighted average common shares outstanding - basic and diluted 142,878,406  —  142,878,406 
Net loss per share - basic and diluted $ (0.10) $ —  $ (0.10)
Three Months Ended
March 31, 2021
As Previously Reported Adjustment As Revised
Revenue:
Product revenue $ 2,502  $ (235) $ 2,267 
Subscription revenue 1,300  (73) 1,227 
Service revenue 197  2  199 
Total revenue 3,999  (306) 3,693 
Cost of revenue:
Cost of product revenue 2,229  (13) 2,216 
Cost of subscription revenue 595  148  743 
Cost of service revenue 127  158  285 
Total cost of revenue 2,951  293  3,244 
Gross profit 1,048  (599) 449 
Operating expenses:
Research and development 3,612  128  3,740 
Sales and marketing expense 3,684  (1,076) 2,608 
General and administrative 2,899  153  3,052 
Total operating expenses 10,195  (795) 9,400 
Loss from operations (9,147) 196  (8,951)
Other income (expense), net:
Interest expense, net (2,447) 53  (2,394)
Change in fair value of derivative liability (1,425) —  (1,425)
Change in fair value of common stock warrant liability (736) —  (736)
Total other income (expense), net (4,608) 53  (4,555)
Net loss $ (13,755) $ 249  $ (13,506)
Weighted average common shares outstanding - basic and diluted 10,443,323  —  10,443,323 
Net loss per share - basic and diluted $ (1.32) $ 0.03  $ (1.29)
Three Months Ended
March 31, 2022
As Previously Reported Adjustment As Revised
Cash flows from operating activities:
Net loss $ (14,551) $ 750  $ (13,801)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 948  138  1,086 
Write-off of inventory 324  —  324 
Adjustment to property and equipment for sales type leases (321) (304) (625)
Loss from impairment of property and equipment 96  —  96 
Stock-based compensation 5,190  (1,263) 3,927 
Non-cash interest expense 5  —  5 
Non-cash lease expense 197  —  197 
Change in fair value of earn-out liability (4,226) 1,148  (3,078)
Change in fair value of contingently issuable common stock (1,472) —  (1,472)
Change in fair value of public warrant liability (5,586) —  (5,586)
Changes in operating assets and liabilities
Accounts receivable (2,112) —  (2,112)
Inventory (6,985) 5,675  (1,310)
Commission assets (351) —  (351)
Contract assets 108  —  108 
Other assets —  141  141 
Prepaid expenses and other current assets (5,280) (291) (5,571)
Accounts payable (1,867) 1,012  (855)
Deferred revenue 2,778  (201) 2,577 
Deferred rent (468) 468  — 
Accrued expenses and other current liabilities (2,065) (368) (2,433)
Operating lease liability (229) (468) (697)
Net cash used in operating activities (35,867) 6,437  (29,430)
Cash flows from investing activities:
Development of internal-use software (646) (82) (728)
Purchases of property and equipment (323) (6,366) (6,689)
Net cash used in investing activities (969) (6,448) (7,417)
Cash flows from financing activities:
Proceeds from exercise of stock options 216  11  227 
Net cash provided by financing activities 216  11  227 
Net increase (decrease) in cash, cash equivalents and restricted cash (36,620) —  (36,620)
Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of period 308,167  —  308,167 
Cash, cash equivalents and restricted cash at end of period $ 271,547  $ —  $ 271,547 
Supplemental disclosure of non-cash activities
Transfer of inventory to property and equipment $ 4,620  $ (4,620) $ — 
Capital expenditures incurred but not yet paid 1,693  698  2,391 
Three Months Ended
March 31, 2021
As Previously Reported Adjustment As Revised
Cash flows from operating activities:
Net loss $ (13,755) $ 249  $ (13,506)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 452  —  452 
Stock-based compensation 1,082  (773) 309 
Non-cash interest expense 2,344  —  2,344 
Provision recorded for allowance for doubtful accounts (63) —  (63)
Change in fair value of derivative liability 1,425  —  1,425 
Change in fair value of common stock warrant liability 736  —  736 
Changes in operating assets and liabilities
Accounts receivable (874) —  (874)
Inventory (433) (47) (480)
Commission assets (391) —  (391)
Contract assets (119) —  (119)
Other assets —  7  7 
Prepaid expenses and other current assets (4,104) 377  (3,727)
Accounts payable 1,194  (235) 959 
Deferred revenue (621) (185) (806)
Deferred rent (11) —  (11)
Accrued expenses and other current liabilities 1,100  206  1,306 
Net cash used in operating activities (12,038) (401) (12,439)
Cash flows from investing activities:
Purchases of property and equipment (2,522) 401  (2,121)
Net cash used in investing activities (2,522) 401  (2,121)
Cash flows from financing activities:
Proceeds from exercise of stock options 455  —  455 
Repayment of financing obligations (359) —  (359)
Proceeds from long-term debt, net of issuance costs 31,882  —  31,882 
Net cash provided by financing activities 31,978  —  31,978 
Net increase (decrease) in cash, cash equivalents and restricted cash 17,418  —  17,418 
Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of period 4,704  —  4,704 
Cash, cash equivalents and restricted cash at end of period $ 22,122  $ —  $ 22,122 
Supplemental disclosure of non-cash activities
Capital expenditures incurred but not yet paid —  1,335  1,335 
Issuance of equity classified warrants 1  —  1