0000950170-22-003135 | 10-K | XBRL Viewer

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Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Operating Activities:
Net (loss) income	$ (48,688,000)	$ 27,575,000
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization	3,975,000	3,853,000
Amortization of right-of-use lease assets	13,000	159,000
Amortization of debt issuance costs and premium	493,000	85,000
Change in fair value of warrants	(2,717,000)	(63,011,000)
Gain on expiration of warrant	(5,018,000)	0
Amortization of discount on short-term investments	(30,000)	(446,000)
Stock-based compensation	7,575,000	4,185,000
Gain on sale of equipment	0	7,000
Provision for excess and obsolete inventory	2,367,000	238,000
Change in operating assets and liabilities:
Accounts receivable	(1,996,000)	(2,076,000)
Inventories	(2,111,000)	(1,307,000)
Prepaid and other assets	(2,809,000)	180,000
Accounts payable	555,000	(954,000)
Accrued expenses and other liabilities	3,683,000	(3,691,000)
Net cash used in operating activities	(44,708,000)	(35,203,000)
Investing Activities:
Purchases of property and equipment	(1,940,000)	(2,539,000)
Proceeds from sale of equipment	0	3,000
Maturity of short-term investments	80,000,000	116,000,000
Purchase of short-term investments	(159,967,000)	(97,873,000)
Net cash (used in) provided by investing activities	(81,907,000)	15,591,000
Financing Activities:
Proceeds from term loan	15,000,000	25,000,000
Payments of debt issuance costs	(132,000)	(687,000)
Proceeds from exercise of warrants	790,000	23,000
Proceeds from initial public offering	119,582,000	0
Principal payments on finance lease liabilities	(27,000)	(142,000)
Change in notes receivables for redeemable common stock issued	575,000	51,000
Proceeds from exercise of stock options	1,554,000	992,000
Net cash provided by financing activities	137,342,000	25,237,000
Effect of foreign exchange rate on cash, cash equivalents and restricted cash	(10,000)	0
Net increase in cash, cash equivalents and restricted cash	10,717,000	5,625,000
Cash, cash equivalents and restricted cash - beginning of period	14,455,000	8,830,000
Cash, cash equivalents and restricted cash - end of period	25,172,000	14,455,000
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	1,269,000	987,000
Cash paid for income taxes	20,000	61,000
Cash paid for interest on financing leases	5,000	14,000
Cash paid for interest on term loan	3,182,000	411,000
Right-of-use assets obtained in exchange for lease obligations:
Operating lease	126,000	1,953,000
Finance lease		48,000
Lease obligations recorded for right-of-use assets:
Operating lease	126,000	1,953,000
Finance lease		48,000
Acquisition of property and equipment included in accounts payable and accrued expenses and other current liabilities	30,000	40,000
Accretion to redemption value of redeemable stock and stock options		38,308,000
Payment-in-kind interest income added to principal of notes receivable	28,000	54,000
Reclassification from warrant liability to additional paid-in capital for warrants exercised	1,111,000	24,000
Reclassification of 4,093,995 shares of redeemable common stock to 4,093,995 shares of common stock	87,702,000
Reclassification of redeemable common stock options to common stock options	47,370,000
Conversion of preferred stock to common stock upon initial public offering	357,202,000
Reclassification of deferred financing costs	$ 3,156,000

Convertible Preferred Stock Warrants - Additional Information (Details) - USD ($)	2 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2021	Dec. 31, 2020
Class Of Warrant Or Right [Line Items]
Proceeds from exercise of warrants		$ 790,000	$ 23,000
Warrants exercised and converted into convertible preferred stock		4,093,995	14,851,007
Change in fair value of warrants		$ (2,717,000)	$ (63,011,000)
Number of Common issued upon warrant exercised		100,261
Convertible Preferred Stock [Member]
Class Of Warrant Or Right [Line Items]
Warrants exercised and converted into convertible preferred stock		(14,476,533)
Series H Warrants
Class Of Warrant Or Right [Line Items]
Exercise Price	$ 12.40
Warrants outstanding			225,945
Fair Value Of Warrants		$ 16.95
Change in fair value of warrants			$ 3,800,000
Warrants exercised			1,817
Series H Warrants \| Convertible Preferred Stock [Member]
Class Of Warrant Or Right [Line Items]
Warrants issued to purchase preferred stock	260,434
Series H Convertible Preferred Stock
Class Of Warrant Or Right [Line Items]
Warrants outstanding		0
Warrants exercised		225,945

Income Taxes - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Beginning balance of unrecognized tax benefits	$ 2,554	$ 2,056
Additions for current year tax positions	459	486
Reductions for prior year tax positions	0	12
Ending balance	$ 3,013	$ 2,554

Consolidated Statements of Redeemable Common Stock, Stock Options, Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) shares
Statement Of Stockholders Equity [Abstract]
Proceeds from Issuance of Common Stock \| $	$ 12,400
Redeemable Common Stock, Reclassified, Shares	4,093,995
Common Stock after Reclassification of Redeemable Common Stock, Shares	4,093,995
Amount of Settlement of Fractional Shares \| $	$ 11
Aggregate shares of common stock	14,850,993

Leases - Additional Information (Details) - California	12 Months Ended
Leases - Additional Information (Details) - California	Dec. 31, 2021 USD ($) ft² Item	Dec. 31, 2020 Item
Lessee Lease Description [Line Items]
Operating leases,tenant allowance \| $	$ 900,000
Office Manufacturing And Warehouse Facility
Lessee Lease Description [Line Items]
Number Of Leases \| Item	3	3
Office [Member]
Lessee Lease Description [Line Items]
Area of leased space	19,680
Lease expiration date	Jun. 30, 2023
Manufacturing [Member]
Lessee Lease Description [Line Items]
Area of leased space	42,106
Lease expiration date	Sep. 30, 2024
Warehouse [Member]
Lessee Lease Description [Line Items]
Area of leased space	48,036
Lease expiration date	Jan. 31, 2026

Subsequent Events

12 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

Note 18 – Subsequent events

On March 7, 2022, the Company (Lessee) entered into a twenty-eight-month lease agreement with BML Management, LLC (Lessor) for 125 Columbia, Suite B in Aliso Viejo, CA. The lease commencement date is May 1, 2022 and will expire on August 31, 2024. The base rent payable is $15,738 per month.

Inventories - Additional Information (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventory held on consignment	$ 1.8	$ 2.7

Stock-Based Compensation Expense - Summary of Stock Option Activities (Details) - The Calhoun Vision, Inc. 2015 Equity Incentive Plan and the Calhoun Vision, Inc. 2006 Stock Plan [Member] - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Options, Beginning balance	4,201,935	3,473,757
Number of Options, Granted	2,057,113	1,156,078
Number of Options, Exercised	(364,504)	(249,566)
Number of Options, Forfeited	(111,748)	(168,831)
Number of Options, Expired	(28,791)	(9,503)
Number of Options, Ending balance	5,754,005	4,201,935	3,473,757
Number of Options, Exercisable	3,316,356
Weighted-Average Exercise Price, Beginning balance	$ 9.57	$ 7.76
Weighted-Average Exercise Price, Options Granted	14.88	15.09
Weighted-Average Exercise Price, Options Exercised	4.26	3.98
Weighted-Average Exercise Price, Options Forfeited	15.67	18.53
Weighted-Average Exercise Price, Options Expired	16.06	4.14
Weighted-Average Exercise Price, Ending balance	11.64	9.57	$ 7.76
Weighted-Average Exercise Price, Exercisable	9.20
Weighted Average Grant Date Fair Value, Options Granted	8.53	8.39
Weighted Average Grant Date Fair Value, Options Exercised	2.13	2.08
Weighted Average Grant Date Fair Value, Options Forfeited	$ 10.63	$ 8.96
Weighted-Average Remaining Contractual Term (Years), Options outstanding	6 years 10 months 17 days	6 years 5 months 15 days	6 years
Weighted-Average Remaining Contractual Term (Years), Exercisable	5 years 2 months 12 days

Leases - Summary Of Lease Balances Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets
Operating leases right-of-use assets	$ 4,284	$ 5,319
Assets Finance	$ 33	$ 58
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property Plant And Equipment Net	Property Plant And Equipment Net
Total lease assets	$ 4,317	$ 5,377
Current liabilities:
Liabilities Current Operating	$ 1,509	$ 1,247
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Lease Liabilities Current	Lease Liabilities Current
Liabilities Current Finance	$ 20	$ 27
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Lease Liabilities Current	Lease Liabilities Current
Noncurrent
Liabilities Noncurrent Operating	$ 3,625	$ 5,042
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Lease Liabilities Noncurrent	Lease Liabilities Noncurrent
Liabilities Noncurrent Finance	$ 17	$ 37
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Lease Liabilities Noncurrent	Lease Liabilities Noncurrent
Total lease liabilities	$ 5,171	$ 6,353

Short-Term Investments (Tables)

12 Months Ended

Dec. 31, 2021

Short Term Investments [Abstract]

Schedule of Short-Term Investments Available For Sale

Short-term investments, principally U.S. Treasury bills, are available-for-sale and consisted of the following (in thousands):


	As of December 31, 2021
	Amortized Cost		Unrealized Loss, Net			Estimated Fair Value
Government securities	$	134,980	$	(9	)	$	134,971

	As of December 31, 2020
	Amortized Cost		Unrealized Loss, Net			Estimated Fair Value
Government securities	$	54,983	$	(2	)	$	54,981

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Schedule of Lease Balance Sheet Information

The following table presents the lease balances within the consolidated balance sheets (in thousands):


		December 31,		December 31,
Leases	Classification	2021		2020

Assets
Operating	Operating leases right-of-use assets		4,284	$	5,319
Finance	Property and equipment, net		33		58
Total lease assets			4,317		5,377
Liabilities
Current
Operating	Lease liabilities		1,509		1,247
Finance	Lease liabilities		20		27
Noncurrent
Operating	Long-term lease liabilities		3,625		5,042
Finance	Long-term lease liabilities		17		37
Total lease liabilities		$	5,171	$	6,353

Schedule of Component of Lease Expense

For the years ended December 31, 2021 and 2020, the components of operating and finance lease expenses were as follows (in thousands):


		Year Ended December 31,
Lease Cost	Classification	2021		2020

Operating lease cost	Cost of sales	$	14	$	13
	Research and development		297		180
	Selling, general and administrative		1,608		1,544

Finance lease cost	Research and development		—		115
	Selling, general and administrative		25		44

Finance lease cost	Interest expense		5		14

Schedule of Maturities of Lease Liabilities

Maturities of the Company’s operating and finance lease liabilities as of December 31, 2021, were as follows (in thousands):


	Operating		Finance
Year Ended December 31,	Leases		Leases
2022		1,976		23
2023		1,683		18
2024		1,456		—
2025		951		—
2026		79		—
Total lease payments		6,145		41
Less: imputed interest		1,011		4
Total lease liabilities	$	5,134	$	37

Summary of Weighted Average Remaining Lease Term and Discount Rate

The weighted average remaining lease term and weighted average discount rate used to determine lease liabilities related to the Company’s operating and finance leases as of December 31, 2021 and 2020 were:


	December 31,	December 31,
Lease Term and Discount Rate	2021	2020
Weighted average remaining lease term (years)
Operating leases	3.30	4.21
Finance leases	1.72	2.42
Weighted average discount rate
Operating leases	10.5%	10.5%
Finance leases	10.5%	10.5%

Convertible Preferred Stock Warrants - Schedule of Probability Weighted Assumptions of Convertible Preferred Stock Warrants (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility, Minimum	61.60%	83.40%
Expected volatility, Maximum	63.70%	97.40%
Expected volatility, Weighted Average	63.20%	94.60%
Risk adjusted discount factor, Minimum	0.60%	16.00%
Risk adjusted discount factor, Maximum	1.70%	31.00%
Risk adjusted discount factor, Weighted average		25.00%
Expected life (in years), Weighted Average		1 year 1 month 6 days
Expected dividend yield	0.00%	0.00%
Expected dividend yield, Weighted Average	0.00%	0.00%
Series F Warrants [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility, Minimum		83.40%
Expected volatility, Maximum		97.40%
Risk adjusted discount factor, Minimum		16.00%
Risk adjusted discount factor, Maximum		31.00%
Expected dividend yield		0.00%
Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected life (in years)	5 years 6 months 7 days	4 months 24 days
Minimum [Member] \| Series F Warrants [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected life (in years)		4 months 24 days
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected life (in years)	10 years	2 years
Maximum \| Series F Warrants [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected life (in years)		2 years

Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income tax provision at the federal statutory tax rate	21.00%	21.00%
State taxes, net of federal benefit	4.10%	(5.30%)
Research and development credits	2.60%	(4.70%)
Stock-based compensation	(1.40%)	(0.40%)
Other non-deductible permanent items	2.60%	(47.90%)
Expired tax attributes	(2.00%)	1.50%
Other, percent	0.20%	(0.50%)
Change in valuation allowance	(27.10%)	35.60%
Income tax expense	0.00%	0.10%
Income tax provision at the federal statutory tax rate	$ (10,223)	$ 5,793
State taxes, net of federal benefit	(1,989)	(1,468)
Research and development credits	(1,241)	(1,306)
Stock-based compensation	677	122
Other non-deductible permanent items	(1,252)	(13,204)
Expired tax attributes	960	426
Other	(113)	(127)
Change in valuation allowance	13,189	9,821
Income tax expense	$ 8	$ 57

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 16 – Commitments and Contingencies

Letter of credit

The Company has a standby letter of credit, expiring September 30, 2024, issued by a financial institution as required security for one operating lease. The aggregate amount of the letter of credit was $310,000 and $360,000 as of December 31, 2021 and 2020, respectively.

Legal matters

From time-to-time, the Company may be involved in certain legal proceedings or regulatory matters arising in the ordinary course of business, including without limitation, actions with respect to intellectual property, employment, regulatory, product liability and contractual matters. In connection with these proceedings or matters, the Company regularly assesses the probability and amount (or range) of possible issues based on the developments

in these proceedings or matters. A liability is recorded in the consolidated financial statements if it is determined that it is probable that a loss has been incurred, and that the amount (or range) of the loss can be reasonably estimated. Because of the uncertainties related to any pending proceedings or matters, the Company is currently unable to predict their ultimate outcome and, with respect to any legal proceeding or regulatory matter where no liability has been accrued, to make a reasonable estimate of the possible loss (or range of loss) that could result from an adverse outcome. At December 31, 2021 and 2020, there were no legal proceedings, regulatory matters, or other disputes or claims for which a material loss was considered probable or for which the amount (or range) of loss was reasonably estimable. However, regardless of the outcome, legal proceedings, regulatory matters, and other disputes and claims can have an adverse impact on the Company because of legal costs, diversion of management time and resources, and other factors.

Stock-Based Compensation Expense (Tables)

12 Months Ended

Dec. 31, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of the Status And Changes In Stock Option Activities

A summary of the stock option activities related to the Plans, as of and for the year ended December 31, 2021 and 2020 is presented below:


	Number of Options			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Weighted Avg Remaining Contractual Life (Years)
Options outstanding as of December 31, 2019		3,473,757		$	7.76				6.00
Granted		1,156,078		$	15.09	$	8.39
Exercised		(249,566	)	$	3.98	$	2.08
Forfeited		(168,831	)	$	18.53	$	8.96
Expired		(9,503	)	$	4.14
Options outstanding as of December 31, 2020		4,201,935		$	9.57				6.46
Granted		2,057,113		$	14.88	$	8.53
Exercised		(364,504	)	$	4.26	$	2.13
Forfeited		(111,748	)	$	15.67	$	10.63
Expired		(28,791	)	$	16.06
Options outstanding as of December 31, 2021		5,754,005		$	11.64				6.88
Exercisable as of December 31, 2021		3,316,356		$	9.20				5.20

Summary of Non-Vested Restricted stock unit Activities

A summary of non-vested restricted stock unit activities for the year ended December 31, 2021 is as follows:


				Weighted
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2020		—			—
Granted		657,729		$	15.46
Vested		—			—
Forfeited		(17,250	)		15.38
Unvested at December 31, 2021		640,479		$	15.46

Schedule of Stock-Based Compensation Expense

Stock-based compensation expense was classified in the accompanying consolidated statements of operations and comprehensive income (loss) as follows (in thousands):


	Twelve Months Ended December 31,
	2021		2020
Research and development	$	2,620	$	2,200
Selling, general and administrative		4,061		1,344
Cost of sales		894		641
	$	7,575	$	4,185

Schedule of Range and Weighted-average Assumptions Used in Black-Scholes Option Pricing Model to Determine the Fair Value of Stock Options

The following table presents the range and weighted-average assumptions, used in the Black-Scholes option pricing model to determine the fair value of stock options:


	Year ended December 31,
	2021		2020
	Range	Weighted Average	Range	Weighted Average
Expected volatility	61.6% to 63.7%	63.2%	83.4% to 97.4%	94.6%
Risk-free interest rate	0.6% to 1.7%	1.0%	16% to 31%	24.9%
Expected life (in years)	5.52 to 10.00 years	6.09 years	0.4 to 2.0 years	1.1 years
Expected dividend yield	0.0%	0.0%	0.0%	0.0%
Grant date fair value	$12.08 to $19.94	$15.02	$0.81	$0.81

Common Stock Warrant Liability (Tables)

12 Months Ended

Dec. 31, 2021

Warrants And Rights Note Disclosure [Abstract]

Schedule of assumptions used to determine the fair value of warrant

The following table presents the assumptions used in the DCF and MCS calculations to determine the fair value of the Series W warrant:


	Year ended December 31, 2020
Terminal value—exit multiple	7.0
Weighted average cost of capital discount rate	22.0%
Expected life (in years)	0.25 year
Risk-free interest rate	0.9%
Expected volatility	56.9%

Notes Receivable for Redeemable Common Stock - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jul. 29, 2021	Dec. 31, 2021	Dec. 31, 2020
Accounts Notes And Loans Receivable [Line Items]
Notes receivable for common stock issued		$ 0	$ (803)
Common Stock
Accounts Notes And Loans Receivable [Line Items]
Surrender of common stock in exchange for cancellation of note receivable, Shares	11,011,000	(11,011)
Promissory Note [Member]
Accounts Notes And Loans Receivable [Line Items]
Notes Receivables		$ 693,000
Notes Receivable Interest Rate Stated Percentage		7.00%
Exchange Payment Of Notes Receivables For Common Stock		$ 105,000
Notes Receivable Maturity Year Start		2021
Notes Receivables Maturity Year End		2022
Notes Receivables Interest Amount		$ 0	$ 110,000

Summary of Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Significant Accounting Policies

Note 2 – Summary of Accounting Policies

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make informed estimates, judgments and assumptions that affect the reported amounts in the consolidated financial
statements and disclosures in the accompanying notes as of the date of the accompanying consolidated financial statements. On an on-going basis, management evaluates the most critical estimates and assumptions for continued reasonableness. These estimates and assumptions involve judgments with respect to numerous factors that are difficult to predict. Actual results may differ materially from the estimates used in the preparation of the accompanying consolidated financial statements under different assumptions or conditions.

Significant accounting policies

There have been no significant changes to the accounting policies during the year ended December 31, 2021 as compared to the significant accounting policies described in Note 2 of the “Notes to Consolidated Financial Statements” in the Company’s audited consolidated financial statements included in the Company's prospectus filed with the Securities and Exchange Commission in accordance with Rule 424(b) of the Securities Act on July 29, 2021 in connection with our IPO.

Cash Equivalents

Cash equivalents consist of investments in money market accounts. The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase that can be liquidated without prior notice or penalty to be cash equivalents.

Short-term Investments

Short-term investments are classified based on the maturity date of the related securities. Based on the nature of the assets, the Company’s short-term investments, which are government securities, are classified as available-for-sale and are recorded at their estimated fair value as determined by prices for identical or similar securities at the balance sheet date. The Company’s short-term investments consist of Level 1 and Level 2 financial instruments in the fair value hierarchy. Unrealized gains and losses are recorded as a component of other comprehensive loss within stockholders’ equity (deficit) on the consolidated balance sheets. Realized gains and losses are included as other income (expense) in the accompanying Consolidated Statements of Operations and Comprehensive (Loss) Income. The cost basis for realized gains and losses on available-for-sale securities is determined on a specific identification basis. Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determination at each balance sheet date. The Company periodically reviews its investments for unrealized losses other than credit losses and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. In determining whether the carrying value is recoverable, management considers the following factors:

•

whether the investment has been in a continuous realized loss position for over 12 months;

•

the duration to maturity of investments;

•

intention and ability to hold the investment to maturity and if it is not more likely than not that the investment will be required to sell the investment before recovery of the amortized cost bases;

•

the credit rating, financial condition and near-term prospects of the issuer and

•

the type of investments made.

The Company had $9,000 and $2,000 of unrealized losses related to short-term investments as of December 31, 2021 and 2020, respectively. The Company’s short-term investments consist of Level 2 financial instruments in the fair value hierarchy.

Restricted Cash

Restricted cash consists of cash held as collateral for a letter of credit as security for future facility lease payments and corporate credit cards at the Company’s bank. Restricted cash increased $350,000 during the year ended December 31, 2021 to $811,000 as required for these operating activities.

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the amount reported in the Consolidated Statement of Cash Flows for the years ended December 31, 2021 and 2020 (in thousands).


	Year ended December 31,
	2021		2020

Cash and cash equivalents	$	24,361	$	13,994
Restricted cash		811		461
Cash, cash equivalents and restricted cash in the consolidated statements of cash flows	$	25,172	$	14,455

Concentration of Credit Risk and Other Risks and Uncertainties

Financial instruments which potentially subject the Company to concentration of credit risk consist primarily of cash, cash equivalents, short-term investments and accounts receivable. The Company’s policy is to invest cash in institutional money market funds and marketable securities of the U.S. government to limit the amount of credit exposure. The Company currently maintains a portfolio of cash equivalents and short-term investments in money market funds and U.S. treasury bills. Additionally, the Company has established guidelines regarding diversification of its investments and their maturities, which are designed to maintain principal and maximize liquidity. The Company has not experienced material losses on cash equivalents and short-term investments.

The Company’s products require approval from the FDA and foreign regulatory agencies before commercial sales can commence. There can be no assurance that the Company’s products will receive any of these required approvals. The denial or delay of such approvals may have a material adverse impact on the Company’s business and may impact business in the future. In addition, after approval by the FDA, there is still an ongoing risk of adverse events that did not appear during the device approval process.

The Company is subject to risks common to companies in the medical device industry, including, but not limited to, new technological innovations, clinical development risk, establishment of appropriate commercial partnerships, protection of proprietary technology, compliance with government and environmental regulations, uncertainty of market acceptance of our products, product liability and the need to obtain additional financing.

The Company is subject to the risks related to the global pandemic associated with COVID-19, including local, state, federal and other world-wide mandates imposed to reduce the spread of the virus which could interrupt or reduce the number of cataract surgeries, limit access to ambulatory surgery centers, doctors’ offices and manufacturing facilities, and the expansion of global lead times, particularly in Europe and Asia, leading to a supply interruption from our suppliers. In addition, the Company is currently experiencing inflation and longer lead times and limited availability in its supply chain for certain components and has continued exposure to price and supply risk related to anticipated purchases of certain commodities, materials and products used in its business.

Accounts Receivable

Accounts receivable pertain to contracts with customers who are granted credit by the Company in the ordinary course of business and are presented net of allowances for credit losses. Accounts receivable are generally due 30 days after invoicing. The Company maintains an allowance for credit losses resulting from the inability of its customers, including ambulatory surgery centers, to make required payments. The allowance for credit losses is calculated quarterly and is developed using an aging of receivables where receivables are segregated into various categories based upon due date, and a historical loss percentage is applied to each category that is adjusted for

current receivable composition, counterparty and specific risk and prevailing economic condition and supportable forecasted economic conditions. Once a receivable is deemed uncollectible after collection efforts have been exhausted, it is written off against the allowance for credit losses. The Company closely monitors the credit quality of its customers and has yet to experience a write-off of a receivable or uncollected receivable. The Company does not generally require collateral or other security on receivables. The Company has a diverse customer base and as of December 31, 2021, the Company did not have any customer who individually accounted for greater than 10% of accounts receivable. As of December 31, 2020, the Company had one customer who individually accounted for 35% of accounts receivable. After evaluation of the collectability of accounts receivable, the Company did not record any significant allowance for credit losses as of December 31, 2021 and 2020.

Fair Value of Financial Instruments

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The Company’s financial instruments consist principally of cash, cash equivalents, short-term investments, accounts receivable, accounts payable, operating lease liabilities, warrant liabilities and a term loan. Fair value is measured as the price that would be received from the sale of an asset or paid to transfer a liability 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 that are consistent with the market, income or cost approach are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels:

Level 1—Observable inputs such as unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities.

Level 2—Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability, for substantially the full term of the asset or liability, through correlation with market data. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data.

Level 3—One or more significant inputs that are unobservable and supported by little or no market activity and reflect the use of significant management judgment and assumptions. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation. These include the Black-Scholes option-pricing model which uses inputs such as expected volatility, risk-free interest rate and expected term to determine fair market valuation.

Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification at each reporting date. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain assets or liabilities within the fair value hierarchy. The Company did not have any transfers of assets and liabilities between the levels of the fair value measurement hierarchy during the years presented.

Cash, cash equivalents, accounts receivable and accounts payable are carried at their estimated fair value because of the short-term nature of these assets and liabilities. The Company’s short-term investments in government securities are carried at fair value, determined based on publicly available quoted market prices for identical securities at the measurement date. The Company believes the fair values of its operating lease liabilities and term loan at December 31, 2021 and 2020 approximated their carrying values, based on the borrowing rates that were available for loans with similar terms as of that date.

Inventories

Inventories consist of raw materials, work-in-process and finished goods. Raw materials are comprised of chemicals and parts used in the production of the Company's lenses, cartridges, and LDDs. Finished goods are comprised of lenses, cartridges, accessories and LDDs. Inventories are valued at the lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost on a first-in, first-out basis. The carrying value of inventories is reviewed for potential impairment whenever indicators suggest that the cost of

inventories exceeds the carrying value and management adjusts the inventories to its net realizable value. The cost of finished goods and work-in-process is comprised of raw materials, direct labor, other direct costs and related production overhead to the extent that these costs do not exceed the net realizable value of the goods produced. The Company periodically reviews inventories for potential impairment, estimated losses from obsolescence, material expirations or unmarketable inventories or excess inventories and writes down the cost of inventories to net realizable value at the time such determinations are made. Net realizable value is determined using the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose.

Long-Lived Assets

Property and equipment and leasehold improvements are recorded at cost, net of accumulated depreciation and amortization. Property and equipment are depreciated over the estimated useful lives of the related assets, generally three to five years, using a straight-line method. Leasehold improvements are amortized on the straight-line method over the shorter of the lease term or their estimated economic lives. Repairs and maintenance costs are charged directly to operations as incurred, while renewals and betterments are capitalized.

All long-lived assets are reviewed for impairment whenever circumstances such as events or changes in the business indicate that an asset or asset group’s carrying value may not be recoverable based on undiscounted future operating cash flows to be derived from their use. Factors that are considered important that could trigger an impairment review include a current period operating or cash flow loss or a history of operating or cash flow losses and a projection or forecast that demonstrates continuing losses or insufficient income associated with the use of a long-lived asset or asset group. Other factors include a significant change in the manner of the use of the asset or a significant negative industry or economic trend. This evaluation is performed based on estimated undiscounted future cash flows from operating activities compared with the carrying value of the related assets. If the undiscounted future cash flows are less than the carrying value, an impairment loss is recognized, measured by the difference between the carrying value and the estimated fair value of the assets. Fair value is determined primarily using the discounted cash flows expected to be generated from the use of assets. Significant management judgment is required in the forecast of future operating results that are used in the preparation of expected cash flows.

Leases

Lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized when the Company takes possession of the leased property (the “Commencement Date”) based on the present value of lease payments over the lease term. The Company estimates the incremental borrowing rate based upon the cost of its own debt financing, current market interest rates and quoted offerings or the rate implicit in the lease. Operating lease right-of-use assets also include any lease payments made at or before lease commencement and exclude any lease incentives received. The lease terms used to calculate the right-of-use asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Rent expense on noncancelable leases containing known future scheduled rent increases is recorded on a straight-line basis over the term of the respective leases beginning on the Commencement Date. The difference between rent expense and rent paid is accounted for as a component of operating lease right-of-use assets on the accompanying consolidated balance sheets. Landlord improvement allowances and other such lease incentives are recorded as property and equipment and as reduction of the right-of-use leased assets and are amortized on a straight-line basis as a reduction to operating lease costs. Leases with an initial term of 12 months or less are expensed as incurred and are not recorded as right-of-use assets on the consolidated balance sheets.

Warrants to Purchase Stock

The Company recognizes the freestanding warrants to purchase shares of convertible preferred stock as liabilities at fair value as these warrant instruments are embedded in contracts that may be cash settled. The convertible preferred stock warrants were issued for no cash consideration as detachable freestanding instruments but can be converted to convertible preferred stock at the holder’s option based on the exercise price of the warrant. However, the deemed liquidation provisions of the convertible preferred stock are considered contingent redemption provisions that are not solely within the control of the Company. Therefore, the convertible preferred stock is classified in temporary equity on the accompanying condensed consolidated balance sheets, and the warrants to purchase the convertible preferred stock are classified as liabilities. The Company recognized a freestanding warrant

to purchase a share of Series W common stock as a liability at fair value because this instrument was not indexed to the Company’s own stock as the settlement calculation incorporated variables other than those used to determine the fair value of a fixed-for-fixed forward or option on equity shares. The common stock warrant was issued for cash consideration as a freestanding instrument and could be converted to one share of common stock, Series W, at the holder’s option based on the exercise price of the warrant and prior to the expiration date of March 31, 2021.

The warrants were recorded on the accompanying consolidated balance sheets at their fair value on the date of issuance and were subject to re-measurement to fair value at each balance sheet date. Changes in fair value were recognized as a component of other income (expense) in the accompanying Consolidated Statements of Operations and Comprehensive (Loss) Income. Upon issuance of the Series W common stock warrant, the Company engaged valuation specialists to assist with determining its fair value using a Monte Carlo simulation approach. In addition, the Company engaged the valuation specialists to derive an estimated fair value of the preferred stock warrants using a probability weighted expected return model/option pricing model (“PWERM/OPM”) hybrid valuation model. Pursuant to the terms of the preferred stock warrants, upon the conversion of the class of preferred stock underlying the warrant, the warrants automatically become exercisable for shares of the Company’s common stock based upon the conversion ratio of the underlying class of preferred stock. The exercise of either the common stock warrant or consummation of a qualified initial public offering would result in the automatic conversion of all classes of the Company’s preferred stock into common stock. Upon such conversion of the underlying classes of preferred stock, the warrants would be classified as a component of equity and would no longer be subject to remeasurement. Accordingly, the Company continued to adjust the warrant liabilities for changes in fair value through the date of the conversion of the underlying convertible preferred stock into common stock which occurred upon the completion of the IPO in July 2021.

Deferred Offering Costs

The Company capitalized deferred offering costs consisting of all direct and incremental legal, professional, accounting and other third-party fees incurred in connection with the IPO. As of December 31, 2021, total deferred offering costs of $3.2 million were offset against IPO proceeds and reclassified to additional paid-in capital in the accompanying consolidated balance sheets.

Net (Loss) Income per Share

The Company computes basic net (loss) income per share for common stock using the two-class method required for companies with participating securities based upon the weighted-average number of common shares outstanding during the period. Diluted net (loss) income per share assumes the conversion, exercise or issuance of all potential common stock equivalents, unless the effect of inclusion would be anti-dilutive. For purposes of this calculation, common stock equivalents include the Company’s stock options, warrants and the shares issuable upon the conversion of preferred stock. Prior to the lapse of redemption features, for redeemable stock options and redeemable preferred stock, the calculation of diluted (loss) income per share includes an adjustment for the additional share of undistributed earnings and accretion to redemption value for the period that the common stockholders are entitled to if exercise is assumed. For warrants that are recorded as a liability in the accompanying consolidated balance sheets, the calculation of diluted (loss) income per share requires that, to the extent the average market price of the underlying shares for the reporting period exceeded the exercise price of the warrants and the presumed exercise of the warrants was dilutive to (loss) income per share for the period, an adjustment was made to net (loss) income used in the calculation to remove the change in fair value of the warrants from the numerator for the period. Likewise, an adjustment to the denominator was required to reflect the related dilutive shares, if any, under the treasury stock method.

The following tables show the computation of basic and diluted net (loss) income per share for 2021 and 2020 (in thousands, except number of shares):


	Year Ended December 31,
	2021			2020
Common Stock
Numerator:
Net (loss) income available to stockholders, basic	$	(48,688	)	$	3,366
Effect of dilutive securities:
Redeemable stock options		—			(2,511	)
Net (loss) income available to stockholders, diluted	$	(48,688	)	$	855
Denominator:
Weighted-average shares outstanding, basic		13,625,044			3,707,207
Effect of dilutive securities:
Redeemable stock options		—			1,825,098
Weighted-average shares, diluted		13,625,044			5,532,305

Net (loss) income per share:
Attributable to common stock, basic	$	(3.57	)	$	0.91
Attributable to common stock, diluted	$	(3.57	)	$	0.15

Series G Common Stock
Numerator:
Net loss available to stockholder, basic	$	—		$	(0.39	)
Effect of dilutive securities:
Redeemable preferred stock and warrants	$	—		$	(0.23	)
Net loss available to stockholder, diluted	$	—		$	(0.62	)
Denominator:
Weighted-average shares outstanding, basic and diluted		—			1
Basic net loss per share	$	—		$	(0.39	)
Diluted net loss per share	$	—		$	(0.62	)

The following weighted average outstanding potentially dilutive securities were excluded from the calculation of diluted net income (loss) per share attributable to common stockholders because their impact under the “treasury stock method” and “if-converted method” was anti-dilutive for the periods presented:


	Year Ended December 31,
	2021		2020
Redeemable preferred stock and warrants		—		14,883,489
Stock options issued and outstanding under the 2006 Stock Plan, 2015 Equity Incentive Plan and 2021 Equity Incentive Plan		2,144,860		1,444,611
Restricted stock units		223,716		—
Stock issuable in offering period under the Employee Stock Purchase Plan		8,248		—

Revenue Recognition

The Company’s revenue is generated from the sale of light adjustable intraocular lenses (“LAL”) used in cataract surgery along with a specifically designed machine for delivering light to the eye, the Light Delivery Device

(“LDD”), to adjust the lens post-surgery, as needed. Revenue is recognized from sales of products in the U.S. and Europe. Customers are primarily comprised of ambulatory surgery centers, hospitals, and physician private practices.

The Company recognizes revenues when promised goods or services are transferred to customers at a transaction price that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. Specifically, the Company applies the following five steps to recognize revenue: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, the Company satisfies a performance obligation. The Company applies the five-step model to contracts when it is probable that it will collect the consideration to which it is entitled in exchange for the goods or services it transfers to the customer. At contract inception, the Company assesses the goods promised within each customer contract to determine the individual deliverables in its product offerings as separate performance obligations and assesses whether each promised good or service is distinct. The transaction price is determined based on the consideration expected to be received, based either on the stated value in contractual arrangements or the estimated cash to be collected in non-contracted arrangements. The Company recognizes revenue as the amount of the transaction price that is allocated to the respective performance obligation when, or as, the performance obligation is satisfied, considering whether or not this occurs at a point in time or over time. The Company elected to account for shipping costs as fulfillment costs rather than a promised service and excludes from revenue any taxes collected from customers that are remitted to government authorities.

The Company’s LDD contracts contain multiple performance obligations bundled for one transaction price, with all obligations generally satisfied within one year. For these bundled arrangements the Company accounts for individual products and services as separate performance obligations if they are distinct; that is, if a product or service is separately identifiable from other items in the bundled package, and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The Company’s LDD contracts include a combination of the following performance obligations: (1) LDD capital asset and related components, (2) training and (3) device service (initial year). Each of these three performance obligations are considered distinct. The LDD capital asset is distinct because the customer can benefit from it together with other resources that are readily available to the customer. Training on the use of the machine is offered as a distinct activity after installation of the LDD to enhance the customer’s ability to utilize the machine by having an industry professional provide best practices and customize training to the specific needs of the customer. Each LDD comes with a twelve-month manufacturer’s warranty (service-type) that includes preventative maintenance, unscheduled service (labor and parts) and software updates. After the first year, service contracts can be purchased separately on a standalone basis. The Company recognizes revenue as performance obligations are satisfied by transferring control of the product or service to a customer. Specifically, revenue for the LDD capital asset is recognized at a point in time at installation. Revenue for training is also recorded at a point in time, generally 30 days after installation. Revenue for the device service is recognized ratably over time after installation, generally 12 months. The Company has determined that the transaction price is the invoice price, net of adjustments, if any. The allocation to the separate performance obligations is based upon the relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. The Company estimates the standalone selling price using the market assessment approach considering market conditions and entity-specific factors including, but not limited to, features and functionality of the products and services, geographies, type of customer and market conditions. The Company regularly reviews and updates standalone selling prices as necessary.

LALs are held at customer sites on consignment. The single performance obligation is satisfied, and revenue is recognized for LALs upon customer notification that the LALs have been implanted in a patient. For the years ended December 31, 2021 and 2020, credits related to returns and rebates on list prices were not significant.

The Company has adopted the practical expedient permitting the direct expensing of costs incurred to obtain contracts where the amortization of such costs would occur over one year or less, and it applied to substantially all the Company’s contracts.

For the years ended December 31, 2021 and 2020, revenue from contracts with customers consisted of the following (in thousands):


	Year ended December 31,
	2021		2020
LDD (including training)	$	13,774	$	10,159
LAL		8,163		4,256
Service warranty, service contracts, and accessories		656		263
	$	22,593	$	14,678

As of December 31, 2021 and 2020, the Company recognized contract liabilities on its consolidated balance sheets of $540,000 and $345,000, respectively, related to the service agreement performance obligation. Revenue for service agreements is recognized ratably over the term of each contract.

For the year ended December 31, 2021, the Company did not have any customers who individually accounted for greater than 10% of revenue. For the year ended December 31, 2020, the Company had one customer who individually accounted for approximately 27% of revenue.

Cost of Sales

Cost of sales consists of materials, labor and manufacturing overhead incurred to produce the Company’s products as well as the cost of shipping and handling. Overhead costs include the cost of quality assurance, material procurement, inventory control, facilities, equipment and operations supervision and management, including stock-based compensation. Cost of sales also includes depreciation expense for production equipment and certain direct costs such as royalty and license fee expenses.

Research and Development Expenses

Research and development expenses are expensed as incurred. Research and development expenses consist of upfront fees and milestones paid to collaborators and expenses incurred in performing research and development activities for new products and technology. The expenses include personnel-related costs, including compensation and benefits and stock-based compensation, consultants hired to perform research projects, costs incurred at clinical trial sites, regulatory and manufacturing engineering costs related to FDA premarket approval submission preparation, various laboratory and research supplies, write-off of pre-approved inventory utilized for clinical trial and research purposes, costs incurred in the development of manufacturing processes in excess of capitalizable value, fees paid to contract research organizations and direct FDA related costs. The Company also accrued the costs of ongoing clinical trials associated with programs that have been terminated or discontinued for which there is no future economic benefit at the time the decision is made to terminate or discontinue the program.

Stock-Based Compensation

The Company accounts for stock options on the date of grant to employees, directors and consultants based on the estimated fair value of the award, which requires the recognition of compensation expense for all equity-based payments, including stock options. The fair value of the awards is estimated using the Black-Scholes option-pricing model and recognized in expense in the consolidated statements of operations and comprehensive (loss) income over requisite service period, which is generally four years. The Company amortizes the stock-based compensation for equity awards with service conditions on a straight-line basis over the vesting period of the awards. Compensation cost for stock options with performance conditions is recognized based upon the probability of that performance condition being met. Forfeitures of unvested stock option awards are recognized as reductions of expense as they occur.

The Black-Scholes option-pricing model requires the use of assumptions about a number of variables, such as the fair market value of the Company’s common stock, the risk-free interest rate, dividend yield, expected term and expected volatility:

•

Prior to the Company's shares being traded on the Nasdaq Global Market, the fair value of the Company’s common stock was determined by the Company’s Board of Directors (the “Board”) at the time of each option grant by considering a number of objective and subjective factors. These factors included the valuation of a select group of public peer group companies within the medical device industry that focus on technological advances and development that the Board believed were comparable to the Company’s operations. Operating and financial performance, the lack of liquidity of the common stock and trends in the broader economy and medical device industry also impacted the determination of the fair value of the common stock. In addition, the Company regularly engaged a third-party valuation specialist to assist with estimates related to the valuation of the Company’s common stock. For all grants subsequent to the IPO in July 2021, the fair value of common stock was determined by using the closing price per share of common stock as reported on the Nasdaq Global Market;

•

The risk-free interest rate used is based on the published U.S. Department of Treasury interest rates in effect at the time of stock option grant for zero coupon U.S. Treasury notes with maturities approximating each grant’s expected term;

•

The dividend yield is zero as the Company has not paid dividends and does not anticipate paying a cash dividend in the foreseeable future;

•

The expected term for options granted is calculated using the “simplified method” and represents the average time that options are expected to be outstanding based on the mid-point between the vesting date and the end of the contractual term of the award;

•

Expected volatility is derived from the historical volatilities of a select group of comparable peer companies, for a look-back period commensurate with the expected term of the stock options, as the Company has limited trading history of common stock.

As a result of the Special Redemption provisions of the Company’s Articles of Incorporation (adopted in October 2017), stock option awards were reflected in temporary equity in the accompanying consolidated balance sheets and statements of redeemable common stock, stock options, preferred stock and stockholders’ equity (deficit) at their redemption value. The redemption value was calculated as the estimated redemption amount at the estimated date of redemption less the stock option award strike price, recognized over the same period as the grant date fair value share-based compensation expense recorded in the Consolidated Statements of Operations and Comprehensive (Loss) Income. Changes in the projected redemption value and redemption date were accounted for prospectively. The redemption value reflected in the accompanying financial statements was recorded as a reduction of permanent equity, and in the absence of retained earnings, first from additional paid-in capital and then from accumulated deficit.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The likelihood of realizing the tax benefits related to a potential deferred tax asset is evaluated, and a valuation allowance is recognized to reduce that deferred tax asset if it is more likely than not that all or some portion of the deferred tax asset will not be realized. Deferred tax assets and liabilities are calculated at the beginning and end of the year; the change in the sum of the deferred tax asset, valuation allowance and deferred tax liability during the year generally is recognized as a deferred tax expense or benefit. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Consolidated Statements of Operations and Comprehensive (Loss) Income in the period that includes the enactment date.

Significant judgment is required in determining the Company’s provision for income taxes, deferred tax assets and liabilities and the valuation allowance recorded against net deferred tax assets. The Company assesses the likelihood that deferred tax assets will be recovered as deductions from future taxable income. The evaluation of the need for a valuation allowance is performed on a jurisdiction-by-jurisdiction basis and includes a review of all available positive and negative evidence. Factors reviewed include projections of pre-tax book income for the foreseeable future, determination of cumulative pre-tax book income after permanent differences, earnings history and reliability of forecasting. The Company recognized a valuation allowance on deferred tax assets as of December 31, 2021 and 2020 after evaluating that it is more likely than not that deferred tax assets will not be realized as of those dates.

The Company evaluates the accounting for uncertainty in income tax recognized in the consolidated financial statements and determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit is recorded in its consolidated financial statements. For those tax positions where it is “not more likely than not” that a tax benefit will be sustained, no tax benefit is recognized. Where applicable, associated interest and penalties are also recorded. The Company has not accrued any liabilities for any such uncertain tax positions as of December 31, 2021 or 2020. The Company is subject to U.S. federal and state tax authority examinations for all the years since inception due to net operating loss and tax credit carryforwards. The net operating losses and tax credits are subject to adjustment until the statute closes on the year the attributes are ultimately utilized.

The Company’s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. In addition, the calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision for income taxes. The Company continually assesses the likelihood and amount of potential revisions and adjusts the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known.

The Company is required to file federal and state income tax returns in the United States, United Kingdom, Germany and Netherlands. The preparation of these income tax returns requires the Company to interpret the applicable tax laws and regulations in effect on such jurisdictions, which could impact the amount of tax paid. An amount is accrued for the estimate of additional tax liabilities, including interest and penalties, for any uncertain tax positions taken or expected to be taken in an income tax return. The accrual for uncertain tax positions is updated when more definitive information becomes available.

Comprehensive (Loss) Income

All components of comprehensive (loss) income, including net (loss) income, are reported in the consolidated financial statements in the period in which they are recognized. Comprehensive (loss) income is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources, including unrealized gains and losses on marketable securities and foreign currency translation adjustments.

Operating Segments

Operating segments are defined as components for which discrete financial information is available for evaluation by the chief operating decision maker to make resource allocation decisions and conduct performance assessments. The Company determined that it operates and manages its business (including its non-US subsidiaries) in one reportable segment: the research and development, manufacture and sale of light adjustable lenses and related capital equipment.

Emerging Growth Company Status

The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting

standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has irrevocably elected to not take this exemption and, as a result, will adopt new or revised accounting standards on the relevant effective dates on which adoption of such standards is required for other public companies that are not emerging growth companies.

Recent Accounting Pronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”). ASUs not listed below were assessed and determined not to be applicable or are expected to have minimal impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” (“ASU 2018-15”) which changes the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The implementation costs should be presented as a prepaid expense in the balance sheet and expensed over the term of the hosting arrangement. This standard was effective for the Company beginning January 1, 2021, and early adoption is permitted. The Company adopted ASU 2018-15 effective January 1, 2021, and the adoption did not have a material impact on the Company’s consolidated financial statements.

In June 2020, the FASB issued ASU No. 2020-06, “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,” (“ASU No. 2020-06”) which is intended to simplify the accounting for convertible instruments. This new guidance eliminates certain models that require separate accounting for embedded conversion features and eliminates certain of the conditions for equity classification for contracts in an entity’s own equity. Accordingly, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The new guidance can be adopted through either a modified retrospective method of transition or a fully retrospective method of transition. ASU 2020-06 is effective for public business entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company adopted ASU 2020-06 effective January 1, 2022, and the adoption does not have a material impact on the Company’s consolidated financial statements.

In May 2021, the FASB issued ASU 2021-04, “Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)”, which to clarifies and reduces diversity in an issuer’s accounting for a modification or an exchange of a freestanding equity-classified written call option that remains equity being classified after modification or exchange as (1) an adjustment to equity and, if so, the related earnings per share (EPS) effects, if any, or (2) an expense and, if so, the manner and pattern of recognition. This will be effective for fiscal years beginning after December 15, 2021, and interim periods within those years. An entity should apply the amendments prospectively to modifications or exchanges occurring on or after the effective date of the amendments. Early adoption is permitted for all entities, including adoption in an interim period within those fiscal years. If an entity elects to early adopt the amendments in this update in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. The Company adopted ASU 2021-04 effective January 1, 2021, and the adoption did not have a material impact on the Company’s consolidated financial statements.

In October 2021, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires an entity (acquirer) to recognize and measure contract assets and liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. This update is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption permitted. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments. The Company is currently evaluating the impact the standard will have on its consolidated financial statements.

Employee benefit plan - Additional Information (Details) - USD ($)	1 Months Ended	12 Months Ended
	Jul. 31, 2021	Dec. 31, 2021
Defined Benefit Plans And Other Postretirement Benefit Plans Disclosures [Abstract]
Percentage of eligible compensation, contributed by eligible participating employees	2.00%
Employer matching contributions		25.00%
Defined contribution, net		$ 228,000

Short-Term Investments - Schedule of Short-term Investment Available For Sale (Details) - Government Securities [Member] - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Short Term Debt [Line Items]
Amortized Cost	$ 134,980	$ 54,983
Unrealized Loss, Net	(9)	(2)
Estimated Fair Value	$ 134,971	$ 54,981

Commitments and Contingencies - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Short Term Debt [Line Items]
Legal proceedings, regulatory matters, legal costs	$ 0	$ 0
Letter of Credit [Member]
Short Term Debt [Line Items]
Aggregate amount of the letter of credit	$ 310,000	$ 360,000

- Definition

The carrying value as of the balance sheet date of the current portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Consolidated Statements of Redeemable Common Stock, Stock Options, Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($)
$ in Thousands

Total

Redeemable Common Stock

Notes Receivable for Redeemable Common Stock Issued

Redeemable stock options

Convertible Preferred Stock [Member]

Common Stock

Additional Paid-in Capital

Notes Receivable for Common Stock Issued

Accumulated Other Comprehensive Income (Loss)

Accumulated Deficit

Temporary Equity, Beginning Balance, Amount at Dec. 31, 2019

$ 56,422

$ 855

$ 59,631

$ 327,581

Temporary Equity, Beginning Balance, Shares at Dec. 31, 2019

3,563,884

14,374,455

Stockholders' Equity, Beginning Balance, Amount at Dec. 31, 2019

$ (419,809)

$ 46

$ (419,855)

Stockholders' Equity, Beginning Balance, Shares at Dec. 31, 2019

Exercise of stock options

$ 6,075

(5,083)

Exercise of stock options, shares

249,566

Exercise of warrants

$ 47

Exercise of warrants, shares

1,817

Stock-based compensation expense

$ 4,185

4,185

Conversion of preferred stock to common stock upon initial public offering, shares

(14,851,007)

Change in notes receivable for common stock issued

Accretion to redemption value of redeemable stock options

$ 1,461

(1,463)

1,461

Accretion to redemption value of redeemable stock

(43,954)

$ 18,283

$ 25,672

(4,185)

(39,769)

Fair Value of unexercised warrants

(49)

Net income loss

27,575

Temporary Equity, Ending Balance, Amount at Dec. 31, 2020

353,300

^[1]

$ 80,780

803

53,085

$ 353,300

Temporary Equity, Ending Balance, Shares at Dec. 31, 2020

3,813,450

14,376,272

Stockholders' Equity, Ending Balance, Amount at Dec. 31, 2020

(430,591)

(3)

(430,588)

Stockholders' Equity, Ending Balance, Shares at Dec. 31, 2020

3,813,450

Stockholders' Equity, Ending Balance, Shares at Dec. 31, 2020 at Dec. 31, 2020

Exercise of stock options

347

$ 6,922

(5,715)

347

Exercise of stock options, shares

280,545

83,958

Stock-based compensation expense

7,575

Proceeds from notes receivable

(136)

Exercise of preferred stock warrants, net of shares withheld for exercise price

(2,011)

$ 3,912

(2,011)

Exercise of preferred stock warrants, net of shares withheld for exercise price, Shares

100,261

Conversion of preferred stock to common stock upon initial public offering

$ (357,202)

$ 357,212

$ (15)

(357,187)

Conversion of preferred stock to common stock upon initial public offering, shares

(4,093,995)

14,476,533

(14,951,254)

Surrender of common stock in exchange for cancellation of note receivable, Shares

11,011

Surrender of common stock in exchange for cancellation of note receivable

(229)

229

Reclassification of 4,093,995 shares of redeemable common stock to 4,093,995 shares of common stock

$ 86,885

$ (87,702)

817

$ 4

87,698

(817)

Reclassification of 4,093,995 shares of redeemable common stock to 4,093,995 shares of common stock, shares

4,093,995

(4,093,995)

Reclassification of redeemable common stock options to common stock options

47,370

$ (47,370)

47,370

Change in notes receivable for common stock issued

452

$ (14)

452

Issuance of common stock in connection with initial public offering, net of issuance costs of $12.4 million

119,582

$ 8

119,574

Issuance of common stock in connection with initial public offering, net of issuance costs of $12.4 million, shares

8,248,549

Fair Value of unexercised warrants

(7)

Foreign currency translation adjustment

(10)

Net income loss

(48,688)

Temporary Equity, Ending Balance, Shares at Dec. 31, 2021

Stockholders' Equity, Ending Balance, Amount at Dec. 31, 2021

$ 138,242

$ 27

$ 617,511

$ (20)

$ (479,276)

Stockholders' Equity, Ending Balance, Shares at Dec. 31, 2021

27,366,746

[1]	The carrying value reflects the gross proceeds received from the sale of the preferred stock less issuance costs and the fair value at issuance of preferred stock warrants classified as a liability, plus accretion of redemption value.

Term Loan (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Annual Principal Payments Due Under the Term Loan

As of December 31, 2021, annual principal payments due under the Term Loan were as follows (in thousands):


Year Ended December 31,
2022	$	—
2023		1,739
2024		20,870
2025		17,391
2026		—
Total		40,000
Less: unamortized issuance costs and exit fee		(240	)
Term loan, net	$	39,760

Fair Value Measurements - Schedule of estimated fair value for the warrant liabilities measured using significant unobservable inputs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Beginning of period	$ 8,846	$ 71,881
Exercise of preferred stock warrants	(1,111)	(24)
Expiration of common stock warrant	(5,018)	0
Change in fair value of common stock warrant	0	(64,628)
Change in fair value of preferred stock warrants	(2,717)	1,617
End of period	$ 0	$ 8,846

Summary of Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Description of Business

RxSight®, Inc. (the “Company”) is a Delaware corporation headquartered in Aliso Viejo, California with two wholly owned subsidiaries. One subsidiary is located in Amsterdam, Netherlands, with registered branches in the United Kingdom and Ireland. The Ireland registered branch was closed in 2020. The Netherlands entity also has a wholly owned subsidiary in Germany. A second subsidiary located in Tijuana, Mexico was also closed in 2020. The Company is engaged in the research and development, manufacture and sale of light adjustable intraocular lenses used in cataract surgery along with capital equipment used with the lenses.

The Company’s products, which include the light adjustable lens (“LAL”®) and a specially designed machine for delivering light to the eye, the Light Delivery Device (“LDD™”), are approved by the United States (“U.S.”) Food and Drug Administration (“FDA”) for sale in the U.S. and have regulatory approval in the U.S and Europe. The Company began marketing its products in the U.S. during the second quarter of 2019 and in Europe during the third quarter of 2019. The LAL is a premium intraocular lens (“IOL”) which is partially reimbursable under Medicare. The Company competes with other IOLs in the premium market in the U.S. and Europe.

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of RxSight, Inc. and its wholly-owned subsidiaries, RxSight, B.V., located in the Netherlands, and RxSight GmbH, located in Germany. The Company translates the financial statements of its foreign subsidiaries using end-of-period exchange rates for assets and liabilities and average exchange rates during each reporting period for results of operations. All significant inter-company balances and transactions have been eliminated in consolidation.

Initial Public Offering And Reverse Stock Split

Initial Public Offering (“IPO”) and Reverse Stock Split

On July 22, 2021, the Company’s Board of Directors approved an amendment to the Company’s certificate of incorporation to effect a reverse split of shares of the Company’s common stock, excluding Series G and Series W common stock, and convertible preferred stock on a 1-for-10.33 basis (the “Reverse Stock Split”). The par values of the common stock and convertible preferred stock were not adjusted as a result of the Reverse Stock Split. The Reverse Stock Split was effected on July 23, 2021. Accordingly, all common stock, excluding Series G and Series W common stock, options to purchase common stock, convertible preferred stock, share data, per share data and related information contained in the accompanying condensed consolidated financial statements and notes have been retrospectively adjusted to reflect the effect of the Reverse Stock Split for all periods presented. Outstanding stock options were proportionately reduced and the respective exercise prices, if applicable, were proportionately increased. The Reverse Stock Split resulted in an adjustment to the convertible preferred stock conversion prices to reflect a proportional decrease in the number of shares of common stock to be issued upon conversion.

On July 29, 2021, the Company completed the IPO through an underwritten sale of 7,350,000 shares of its common stock at a price of $16.00 per share. The aggregate net proceeds from the offering, inclusive of an additional 898,549 common shares sold upon the partial exercise of the underwriters’ over-allotment option, after deducting underwriting discounts and commissions of $9.2 million and other offering costs of $3.2 million, were approximately $120.0 million. On July 29, 2021, the Company restated its certificate of incorporation and bylaws which provide for, among other things, the Company’s authorized capital stock to consist of 900,000,000 shares of common stock, par value $0.001 per share, and 100,000,000 shares of convertible preferred stock, par value $0.001 per share. The restated certificate defines the voting rights, dividends, liquidation, rights and preferences of each class of stock.

Immediately prior to the completion of the IPO, 14,376,272 outstanding shares of the Company's convertible preferred stock were converted into an aggregate of 14,725,309 shares of common stock and 225,945 warrants to purchase Series H convertible preferred stock were exercised and converted into 100,261 shares of common stock.

Liquidity and Financial Position

As of December 31, 2021, the Company has cash, cash equivalents and short-term investments of $159.3 million.

The Company began generating revenue from its principal operations in June 2019. The Company has a limited operating history, and the revenue and income potential of the Company’s business and market are unproven. The Company has experienced recurring net losses and negative cash flows from operating activities since its inception. For the years ended December 31, 2021 and 2020, the Company incurred losses from operations of $52.8 million and $35.4 million, respectively. Due to the Company’s continuing research and development activities and investment in sales and marketing activities to increase product market acceptance, the Company expects to continue to incur net operating losses into the foreseeable future. Successful transition to attaining profitable operations is dependent upon gaining market acceptance of the Company’s products and achieving a level of revenues adequate to support the Company’s cost structure.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company believes that existing capital resources, including the net proceeds from the IPO in July 2021, will be sufficient to meet projected operating requirements for at least 12 months from the date of issuance of the accompanying consolidated financial statements, though the Company expects to continue to incur operating losses and negative cash flows. The Company plans to continue to fund its losses from operations using its cash, cash equivalents and short-term investments as of December 31, 2021 and meet its future capital funding needs through equity or debt financings, other third-party funding, collaborations, strategic alliances and licensing arrangements or a combination of these. If the Company raises additional funds by issuing equity securities, its stockholders may experience dilution. Any future debt financing into which the Company enters may impose additional covenants that restrict operations, including limitations on its ability to incur liens or additional debt, pay dividends, repurchase common stock, make certain investments or engage in certain merger, consolidation or asset sale transactions. Any debt financing or additional equity raise may contain terms that are not favorable to the Company or its stockholders. If the Company is required to enter into collaborations and other arrangements to address its liquidity needs, it may have to give up certain rights that limit its ability to develop and commercialize product candidates or may have other terms that are not favorable to the Company or its stockholders, which could materially and adversely affect its business and financial prospects. There can be no assurance that the Company will be able to obtain additional financing on acceptable terms, or at all. If the Company is not able to secure adequate additional funding, the Company may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible and/or suspend or curtail planned programs. Any of these actions could materially harm the Company’s business, results of operations and future prospects.

COVID-19

The Company has been actively monitoring the novel coronavirus, or COVID-19, situation and its impact. In response to the pandemic, numerous state and local jurisdictions imposed “shelter-in-place” orders, quarantines and other restrictions. Starting in March 2020 in the United States, governmental authorities recommended, and in certain cases required, that elective, specialty and other procedures and appointments be suspended or canceled. Similarly, in March 2020, the governor of California, where the Company’s headquarters is located, issued “stay at home” orders limiting non-essential activities, travel and business operations. Such orders and restrictions resulted in reduced operations at the Company’s headquarters, slowdowns and delays, travel restrictions and cancellation of events. These orders and restrictions significantly decreased the number of procedures performed using the Company’s products starting in March of 2020 and continuing through 2021.

In response to the impact of COVID-19, the Company implemented a variety of measures to help manage through the impact and position it to resume operations quickly and efficiently once these restrictions were lifted. These measures included: remote work as needed, suspension of non-essential travel, restrictions on in-person work-related meetings, the wearing of personal protective equipment, social distancing, increased facility cleaning and air purification in all of the Company’s buildings and daily health monitoring of all Company employees to prevent or contain COVID-19 exposure. In addition, the Company took steps to preserve liquidity, reduce expenses and monitor operations to mitigate the impact on its current and future financial condition. The impact of COVID-19 continues to evolve and its impact on the Company’s business will depend on several factors that are highly uncertain and unpredictable, including, the efficacy and adoption of vaccines, future resurgences of the virus and its variants, the speed at which government restrictions are lifted, patient capacity at hospitals and healthcare systems,

the duration and severity of healthcare worker shortages, and the willingness and ability of patients to seek care and treatment due to safety concerns or financial hardship.

Use of Estimates

Significant accounting policies

Cash and Cash Equivalents

Cash Equivalents

Short-Term Investments

Short-term Investments

•

whether the investment has been in a continuous realized loss position for over 12 months;

•

the duration to maturity of investments;

•

intention and ability to hold the investment to maturity and if it is not more likely than not that the investment will be required to sell the investment before recovery of the amortized cost bases;

•

the credit rating, financial condition and near-term prospects of the issuer and

•

the type of investments made.

Restricted Cash


	Year ended December 31,
	2021		2020

Cash and cash equivalents	$	24,361	$	13,994
Restricted cash		811		461
Cash, cash equivalents and restricted cash in the consolidated statements of cash flows	$	25,172	$	14,455

Concentration of Credit Risk and Other Risks and Uncertainties

Accounts Receivable

Fair Value of Financial Instruments

Level 1—Observable inputs such as unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities.

Inventories

Long-Lived Assets

Leases

Warrants to Purchase Stock

Deferred Offering Costs

Net Income (Loss) per Share

(Loss) Income per Share

The following tables show the computation of basic and diluted net (loss) income per share for 2021 and 2020 (in thousands, except number of shares):


	Year Ended December 31,
	2021			2020
Common Stock
Numerator:
Net (loss) income available to stockholders, basic	$	(48,688	)	$	3,366
Effect of dilutive securities:
Redeemable stock options		—			(2,511	)
Net (loss) income available to stockholders, diluted	$	(48,688	)	$	855
Denominator:
Weighted-average shares outstanding, basic		13,625,044			3,707,207
Effect of dilutive securities:
Redeemable stock options		—			1,825,098
Weighted-average shares, diluted		13,625,044			5,532,305

Net (loss) income per share:
Attributable to common stock, basic	$	(3.57	)	$	0.91
Attributable to common stock, diluted	$	(3.57	)	$	0.15

Series G Common Stock
Numerator:
Net loss available to stockholder, basic	$	—		$	(0.39	)
Effect of dilutive securities:
Redeemable preferred stock and warrants	$	—		$	(0.23	)
Net loss available to stockholder, diluted	$	—		$	(0.62	)
Denominator:
Weighted-average shares outstanding, basic and diluted		—			1
Basic net loss per share	$	—		$	(0.39	)
Diluted net loss per share	$	—		$	(0.62	)


	Year Ended December 31,
	2021		2020
Redeemable preferred stock and warrants		—		14,883,489
Stock options issued and outstanding under the 2006 Stock Plan, 2015 Equity Incentive Plan and 2021 Equity Incentive Plan		2,144,860		1,444,611
Restricted stock units		223,716		—
Stock issuable in offering period under the Employee Stock Purchase Plan		8,248		—

Revenue Recognition

For the years ended December 31, 2021 and 2020, revenue from contracts with customers consisted of the following (in thousands):


	Year ended December 31,
	2021		2020
LDD (including training)	$	13,774	$	10,159
LAL		8,163		4,256
Service warranty, service contracts, and accessories		656		263
	$	22,593	$	14,678

Cost of Sales

Research and Development Expense

Research and Development Expenses

Stock Based Compensation

Stock-Based Compensation

•

The dividend yield is zero as the Company has not paid dividends and does not anticipate paying a cash dividend in the foreseeable future;

•

Income Taxes

Comprehensive Income (Loss)

Comprehensive (Loss) Income

Operating Segments

Emerging Growth Company Status

Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Lessee

Note 15 – Leases

The Company has operating and finance leases for facilities and certain equipment. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company does not combine lease and non-lease components in the recognition of lease expense.

The Company’s leases have remaining non-cancelable lease terms of approximately 1 year to 4 years, some of which include options to extend the leases for up to 10 years. The exercise of lease renewal options is at the Company’s sole discretion. The Company recognizes rent expense for minimum lease payments on a straight-line basis over the expected lease term, including rent holidays, rent escalation clause and/or cancelable option periods where failure to exercise such options would result in an economic penalty.

As of December 31, 2021 and 2020, the Company held three leases for office, manufacturing and warehouse facilities in Aliso Viejo, California. The three leases are for 19,680, 42,106 and 48,036 square feet and expire on June 30, 2023, September 30, 2024 and January 31, 2026, respectively. For one of the facilities operating leases, the lessor provided $900,000 in tenant allowances.

The following table presents the lease balances within the consolidated balance sheets (in thousands):


		December 31,		December 31,
Leases	Classification	2021		2020

Assets
Operating	Operating leases right-of-use assets		4,284	$	5,319
Finance	Property and equipment, net		33		58
Total lease assets			4,317		5,377
Liabilities
Current
Operating	Lease liabilities		1,509		1,247
Finance	Lease liabilities		20		27
Noncurrent
Operating	Long-term lease liabilities		3,625		5,042
Finance	Long-term lease liabilities		17		37
Total lease liabilities		$	5,171	$	6,353

As the implicit rates in the Company’s leases were not readily available, the incremental borrowing rate was determined based upon information available at the lease commencement date in determining the present value of future lease payments.

For the years ended December 31, 2021 and 2020, the components of operating and finance lease expenses were as follows (in thousands):


		Year Ended December 31,
Lease Cost	Classification	2021		2020

Operating lease cost	Cost of sales	$	14	$	13
	Research and development		297		180
	Selling, general and administrative		1,608		1,544

Finance lease cost	Research and development		—		115
	Selling, general and administrative		25		44

Finance lease cost	Interest expense		5		14

Maturities of the Company’s operating and finance lease liabilities as of December 31, 2021, were as follows (in thousands):


	Operating		Finance
Year Ended December 31,	Leases		Leases
2022		1,976		23
2023		1,683		18
2024		1,456		—
2025		951		—
2026		79		—
Total lease payments		6,145		41
Less: imputed interest		1,011		4
Total lease liabilities	$	5,134	$	37


	December 31,	December 31,
Lease Term and Discount Rate	2021	2020
Weighted average remaining lease term (years)
Operating leases	3.30	4.21
Finance leases	1.72	2.42
Weighted average discount rate
Operating leases	10.5%	10.5%
Finance leases	10.5%	10.5%

Leases - Summary of Weighted Average Remaining Lease Term and Discount Rate (Details)	Dec. 31, 2021	Dec. 31, 2020
Weighted average remaining lease term (years)
Weighted average remaining lease term - operating leases	3 years 3 months 18 days	4 years 2 months 15 days
Weighted average remaining lease term - finance leases	1 year 8 months 19 days	2 years 5 months 1 day
Weighted average discount rate
Weighted average discount rate - operating leases (as a percent)	10.50%	10.50%
Weighted average discount rate - finance leases (as a percent)	10.50%	10.50%

Summary of Accounting Policies - Schedule of Basic and Diluted Net Loss Per Share (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Net income (loss) available to stockholders, basic	$ (48,688,000)	$ 3,366,000
Weighted-average shares used in computing net loss per share:
Weighted-average shares outstanding, basic	13,625,044	3,707,207
Weighted-average shares, diluted	13,625,044	5,532,305
Basic net income (loss) per share	$ (3.57)	$ 0.91
Diluted net income (loss) per share	$ (3.57)	$ 0.15
Number of converted shares of common stock	100,261
Common Stock
Numerator:
Net income (loss) available to stockholders, basic	$ (48,688,000)	$ 3,366,000
Effect of dilutive securities:
Net (loss) available to stockholders, diluted	$ (48,688,000)	$ 855,000
Weighted-average shares used in computing net loss per share:
Weighted-average shares outstanding, basic	13,625,044	3,707,207
Weighted-average shares, diluted	13,625,044	5,532,305
Basic net income (loss) per share	$ (3.57)	$ 0.91
Diluted net income (loss) per share	$ (3.57)	$ 0.15
Common Stock \| Redeemable stock options
Effect of dilutive securities:
Redeemable stock options	$ 0	$ (2,511,000)
Weighted-average shares used in computing net loss per share:
Redeemable stock options	0	1,825,098
Series G Common Stock
Numerator:
Net income (loss) available to stockholders, basic	$ 0	$ (0.39)
Effect of dilutive securities:
Net (loss) available to stockholders, diluted	$ 0	$ (0.62)
Weighted-average shares used in computing net loss per share:
Basic net income (loss) per share	$ 0	$ (0.39)
Diluted net income (loss) per share	$ 0	$ (0.62)
Weighted-average shares outstanding, basic and diluted	0	1
Series G Common Stock \| Redeemable Preferred Stock And Warrants
Effect of dilutive securities:
Redeemable stock options	$ 0	$ (0.23)

Convertible Preferred Stock Warrants (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Schedule of Weighted Assumptions Used to Revalue Convertible Preferred Stock Warrants to Fair Value

The following scenario probability-weighted assumptions were used to revalue the convertible preferred stock warrants to fair value:


	Year ended December 31,
	2020
	Range	Weighted average
Expected volatility	83.4% to 97.4%	94.6%
Risk adjusted discount factor	16% to 31%	25%
Expected life (in years)	0.4 to 2.0 years	1.1 years
Expected dividend yield	0.0%	0.0%

Subsequent events - Additional Information (Details) - Subsequent Event [Member] - BML Management, LLC [Member]	Mar. 04, 2022 USD ($)
Subsequent Event [Line Items]
Lease expiration date	Aug. 31, 2024
Lease Rent Payable	$ 15,738
Term of Contract	28 months

Convertible Preferred Stock Warrants

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Convertible Preferred Stock Warrants

Note 11 – Convertible Preferred Stock Warrants

Series F, G and H convertible preferred stock warrants were recorded at fair value at issuance and were revalued as of each reporting date until exercised or expired. The fair value of Series F, G and H convertible preferred stock warrants was determined with the assistance of valuation specialists using a PWERM/OPM hybrid method. This method essentially utilizes a combination of market and income method approaches for each part of the calculation of enterprise value and combines them in a probabilistic manner. The valuation considered several future scenarios for the Company, each of which assumes a shareholder exit either through initial public offering, sale (“M&A”) or dissolution. Based upon the current initial public offering market, M&A values for private companies and the historical likelihood of dissolution or no exit, the Company concluded that the probabilities and time frames were reasonable. Implicit in the timing used in the application of the PWERM/OPM Hybrid Method is also the possibility of no exit. The model’s inputs included: (1) the assumed time until a liquidity event, (2) the risk-free interest rate over the period until the assumed liquidity event, (3) the assumed volatility in the value of the equity of the company (which corresponds to the model’s underlying asset volatility), (4) the enterprise value and preferred investment amount and (5) the key price points in the Company’s capital structure in terms of exit levels on the assumed liquidation date. A significant increase (decrease) in any of these inputs in isolation, particularly the estimated price of the Company’s preferred stock, would have resulted in a significantly higher (lower) fair value measurement.

The following scenario probability-weighted assumptions were used to revalue the convertible preferred stock warrants to fair value:


	Year ended December 31,
	2020
	Range	Weighted average
Expected volatility	83.4% to 97.4%	94.6%
Risk adjusted discount factor	16% to 31%	25%
Expected life (in years)	0.4 to 2.0 years	1.1 years
Expected dividend yield	0.0%	0.0%

In February and March 2017, the Company issued 260,434 warrants to purchase shares of Series H convertible preferred stock with an exercise price of $12.40. Series H warrants were initially issued with a five-year life; in November 2017, they were extended another five years to 2027. As of December 31, 2020, the Company had 225,945 Series H warrants outstanding. The fair value of Series H warrants was $16.95 per share as of December 31, 2020. Thus, outstanding Series H warrants had an estimated fair value of $3.8 million as of December 31, 2020. There were 225,945 exercises of Series H warrants which were converted into 100,261 shares of common stock during the year ended December 31, 2021. During the year ended December 31, 2020, 1,817 Series H warrants were exercised.

As of December 31, 2020, the Series H warrants were classified as liabilities on the accompanying consolidated balance sheets and re-measured at fair value as of each balance sheet date. Changes in fair value were recognized as a component of other income (expense) in the accompanying Consolidated Statements of Operations and Comprehensive (Loss) Income. As of December 31, 2021, no Series H convertible preferred stock warrants are outstanding.

Common Stock Warrant Liability - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 27, 2018	Oct. 12, 2017
Class Of Warrant Or Right [Line Items]
Common stock par value (USD per share)	$ 0.001	$ 0.001
Series W Common Stock [Member]
Class Of Warrant Or Right [Line Items]
Warrants issued to purchase common stock				$ 60,000,000.0
Additional non-refundable payment upon extension of expiration			$ 40,000,000.0
Common stock par value (USD per share)	$ 0.001
Exercise price of warrants	$ 630,000,000.0
Escrow holdback of exercise price of warrants	92,000,000.0
Shareholder representative holdback of exercise price of warrants	500,000
Potential aggregate payments for sales based and operating milestones	827,000,000.0
Potential aggregate payments for regulatory milestones	185,000,000.0
Gain on expiration of warrants	$ 5,000,000.0
Share Purchase Agreement [Member] \| Nonvoting Common Stock [Member]
Class Of Warrant Or Right [Line Items]
Common stock par value (USD per share)	$ 0.001
Series G Common Stock
Class Of Warrant Or Right [Line Items]
Common stock par value (USD per share)	$ 0.01

Organization and Basis of Presentation

12 Months Ended

Dec. 31, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Basis of Presentation

Note 1 – Organization and Basis of Presentation

Description of Business

Basis of Presentation and Principles of Consolidation

Initial Public Offering (“IPO”) and Reverse Stock Split

Liquidity and Financial Position

As of December 31, 2021, the Company has cash, cash equivalents and short-term investments of $159.3 million.

COVID-19

the duration and severity of healthcare worker shortages, and the willingness and ability of patients to seek care and treatment due to safety concerns or financial hardship.

Employee benefit plan

12 Months Ended

Dec. 31, 2021

Defined Benefit Plans And Other Postretirement Benefit Plans Disclosures [Abstract]

Employee Benefit Plans

Note 17 – Employee benefit plan

401(k) retirement savings plan

The Company maintains a defined contribution 401(k) retirement savings plan for the benefit of its employees, including its named executive officers, who satisfy certain eligibility requirements. Under the 401(k) plan, eligible employees may elect to defer a portion of their compensation, within the limits prescribed by the Code, on a pre-tax or after-tax (Roth) basis, through contributions to the 401(k) plan. The 401(k) plan is intended to qualify under Sections 401(a) and 501(a) of the Code. As a tax-qualified retirement plan, pre-tax contributions to the 401(k) plan and earnings on those pre-tax contributions are not taxable to the employees until distributed from the 401(k) plan, and earnings on Roth contributions are not taxable when distributed from the 401(k) plan. In July 2021, the Company began making matching contributions of up to 2% of eligible compensation, as contributed by eligible participating employees. Employer matching contributions vest 25% per year over four years. The Company contributed $228,000, net of forfeitures, to the 401(k) plan for the year ended December 31, 2021.

Fair Value Measurements - Schedule of assets and liabilities measured at fair value on recurring basis and the fair value hierarchy of the valuation techniques (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets:
Total assets at fair value	$ 156,361	$ 66,803
Liability:
Total liabilities at fair value		(8,846)
Common Stock Warrant Liability
Liability:
Total liabilities at fair value		(5,018)
Redeemable Convertible Preferred Stock Warrant Liability
Liability:
Total liabilities at fair value		(3,828)
Fair Value, Inputs, Level 1
Assets:
Total assets at fair value	21,390	11,822
Liability:
Total liabilities at fair value
Fair Value, Inputs, Level 1 \| Common Stock Warrant Liability
Liability:
Total liabilities at fair value
Fair Value, Inputs, Level 1 \| Redeemable Convertible Preferred Stock Warrant Liability
Liability:
Total liabilities at fair value
Fair Value, Inputs, Level 2
Assets:
Total assets at fair value	134,971	54,981
Liability:
Total liabilities at fair value
Fair Value, Inputs, Level 2 \| Common Stock Warrant Liability
Liability:
Total liabilities at fair value
Fair Value, Inputs, Level 2 \| Redeemable Convertible Preferred Stock Warrant Liability
Liability:
Total liabilities at fair value
Fair Value, Inputs, Level 3
Assets:
Total assets at fair value
Liability:
Total liabilities at fair value		(8,846)
Fair Value, Inputs, Level 3 \| Common Stock Warrant Liability
Liability:
Total liabilities at fair value		(5,018)
Fair Value, Inputs, Level 3 \| Redeemable Convertible Preferred Stock Warrant Liability
Liability:
Total liabilities at fair value		(3,828)
Money Market Securities
Assets:
Total assets at fair value	21,390	11,822
Money Market Securities \| Fair Value, Inputs, Level 1
Assets:
Total assets at fair value	21,390	11,822
Money Market Securities \| Fair Value, Inputs, Level 2
Assets:
Total assets at fair value
Money Market Securities \| Fair Value, Inputs, Level 3
Assets:
Total assets at fair value
Government Securities
Assets:
Total assets at fair value	134,971	54,981
Government Securities \| Fair Value, Inputs, Level 1
Assets:
Total assets at fair value
Government Securities \| Fair Value, Inputs, Level 2
Assets:
Total assets at fair value	134,971	54,981
Government Securities \| Fair Value, Inputs, Level 3
Assets:
Total assets at fair value

Property and equipment (Tables)

12 Months Ended

Dec. 31, 2021

Property Plant And Equipment [Abstract]

Schedule of property and equipment

Property and equipment consisted of the following (in thousands):


	December 31,
	2021			2020
Machinery and equipment	$	12,421		$	11,153
Leasehold improvements		10,334			10,152
Construction in progress		1,118			1,474
Computer hardware and software		1,536			1,101
Production molds		1,268			867
Furniture and fixtures		853			855
Right-of-use equipment		32			58
		27,562			25,660
Less: Accumulated depreciation and amortization		(16,345	)		(12,373	)
	$	11,217		$	13,287

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Finished goods	$ 4,451	$ 5,092
Raw materials	2,828	1,827
Work-in-process	868	1,685
Inventory gross	8,147	8,604
Less: reserve for excess and obsolete inventory	(115)	(316)
Inventory, Net	$ 8,032	$ 8,288

Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 6 – Fair Value Measurements

The table and disclosures below (in thousands) present the Company’s assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. See Note 9—Common Stock Warrant Liability and Note 11—Convertible Preferred Stock Warrants for more information on the inputs used for the fair value measurements of the warrant liabilities, including quantitative information about the significant unobservable inputs used in the fair value measurements of the warrant liabilities.

Money market funds are liquid investments and are actively traded. The pricing information on these investment instruments is readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. U.S. Government securities are measured at fair value using Level 2 inputs. The Company reviews trading activity and pricing for these investments as of each measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from various third-party data providers. These inputs represent quoted prices for similar assets in active markets or these inputs have been derived from observable market data. This approach results in the classification of these securities as Level 2 of the fair value hierarchy.

The carrying amounts of certain financial instruments such as cash and cash equivalents, accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses and other current liabilities as of December 31, 2021 and 2020 approximate their related fair values due to the short-term maturities of these instruments.


	As of December 31, 2021
	Level 1		Level 2		Level 3		Total
Assets:
Money market securities	$	21,390	$	—	$	—	$	21,390
Government securities		—		134,971		—		134,971
Total assets at fair value	$	21,390	$	134,971	$	—	$	156,361


	As of December 31, 2020
	Level 1		Level 2		Level 3			Total
Assets:
Money market securities	$	11,822	$	—	$	—		$	11,822
Government securities		—		54,981		—			54,981
Total assets at fair value	$	11,822	$	54,981	$	—		$	66,803
Liabilities:
Common stock warrant liability	$	—	$	—	$	(5,018	)	$	(5,018	)
Redeemable convertible preferred stock warrant liability		—		—		(3,828	)		(3,828	)
Total liabilities at fair value	$	—	$	—	$	(8,846	)	$	(8,846	)

The Series W warrant fair value was determined by management, with input and assistance from a third-party valuation specialist, upon issuance and was revalued as of each reporting date until expiration. The valuation specialist utilized a Monte Carlo Simulation ("MCS") under the income method utilizing assumptions and financial data prepared by the Company. This valuation approach uses a discounted cash flow (“DCF”) method to calculate the starting equity value of the Company based upon future cash flow generation. The starting equity value of the Company was determined utilizing significant unobservable inputs, including (1) forecasted financial projections for the next five years developed by management, (2) a terminal value assigned using an exit multiple method, and (3) a discount rate based on the weighted average cost of capital. Then a simulated equity value of the Company as of the expected exercise date was determined using the MCS method. The MCS inputs included: (1) the assumed amount of time until the exercise of the warrant, (2) the risk-free interest rate over the period until the assumed warrant exercise, (3) the assumed volatility in the value of the equity of the company, and (4) the starting equity value of the Company as determined from the discounted cash flow method. In order to determine the overall value of the

warrant, the valuation specialists also simulated the payments for sales-based, operating and regulatory milestones based upon similar inputs to determine the expected overall purchase price of the Company. The net difference between the expected purchase price and the average simulated equity value determines the “option payoff”. Finally, management assigned a probability that the warrant would be exercised, which was applied to the present value of the “option payoff” to arrive at the recorded value reflected in the accompanying consolidated financial statements. The Series W warrant expired unexercised on March 31, 2021 and the remaining fair value of $5.0 million was recorded in the Consolidated Statement of Operations and Comprehensive (Loss) Income for the twelve months ended December 31, 2021.

The fair value of the preferred stock warrants was determined by management, with input and assistance from a third-party valuation specialist using a PWERM/OPM hybrid valuation model. This method essentially utilizes a combination of market and income method approaches for each part of the calculation of enterprise value using assumptions and financial data prepared by the Company and combines them in a probabilistic manner. The valuation considered several future scenarios for the Company, each of which assumed a shareholder exit either through initial public offering, sale (“M&A”) or dissolution. Based upon the current initial public offering market, M&A values for private companies and the historical likelihood of dissolution or no exit, the Company concluded that the probabilities and time frames were reasonable. Implicit in the timing used in the application of the PWERM/OPM Hybrid Method is also the possibility of no exit. The option pricing model's significant unobservable inputs included: (1) the assumed time until a liquidity event, (2) the risk-free interest rate over the period until the assumed liquidity event, (3) the assumed volatility in the value of the equity of the company (which corresponds to the model's underlying asset volatility), (4) the enterprise value and preferred investment amount and (5) the key price points in the Company's capital structure in terms of exit levels on the assumed liquidation date. A significant increase (decrease) in any of these inputs in isolation, particularly the estimated price of the Company’s preferred stock, would have resulted in a significantly higher (lower) fair value measurement.

The following table sets forth changes in the estimated fair values for the Company’s warrant liabilities measured using significant unobservable inputs (in thousands):


	Year ended December 31,
	2021			2020
Beginning of period	$	8,846		$	71,881
Exercise of preferred stock warrants		(1,111	)		(24	)
Expiration of common stock warrant		(5,018	)		—
Change in fair value of common stock warrant		—			(64,628	)
Change in fair value of preferred stock warrants		(2,717	)		1,617
End of period	$	—		$	8,846

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Common Stock Warrant Liability

12 Months Ended

Dec. 31, 2021

Warrants And Rights Note Disclosure [Abstract]

Common Stock Warrant Liability

Note 9 – Common Stock Warrant Liability

Warrant agreement and share purchase agreement

On October 12, 2017, the Company issued a “Strategic Partner” a warrant to purchase Series W common stock (the “Warrant Agreement”) for a non-refundable payment of $60.0 million. This Series W common stock warrant (the “Series W Warrant”) had an initial expiration date of December 31, 2018 unless extended as provided for in the Warrant Agreement. On December 27, 2018, the Strategic Partner chose to extend the expiration date of the Series W Warrant, by making an additional non-refundable payment of $40.0 million, until the sooner of the achievement of performance milestones (as defined in the Warrant Agreement) or November 22, 2021. On March 18, 2020, the Company and the Strategic Partner signed an amendment to the Warrant Agreement that removed the milestone triggers for early exercise and changed the expiration date to March 31, 2021.

Concurrent with the Warrant Agreement, the Strategic Partner and the Company entered into a Share Purchase Agreement (the “Purchase Agreement”). Under the Purchase Agreement, the Strategic Partner purchased one share of the Company’s non-voting $0.001 par value per share Series G common stock for $0.01. Upon exercise of the Series W Warrant, the Strategic Partner will receive one share of voting, $0.001 par value, Series W common stock. Per the Warrant Agreement, the exercise price of the Series W Warrant is $630.0 million plus adjustments for the Company’s cash, working capital, indebtedness and transaction expenses, subject to an escrow holdback of $92.0 million and a shareholder representative holdback of $500,000. The Warrant Agreement also provided for potential aggregate milestone payments of up to $827.0 million for various sales-based and operating milestones and $185.0 million for certain regulatory milestones, either at the time of the Series W Warrant’s exercise or at dates subsequent, as defined in the Warrant Agreement. Upon notice of exercise of the Series W Warrant by the Strategic Partner and receipt of the required funds, a Special Redemption, as defined in the Company’s Articles of Incorporation, will trigger automatic redemption of all the Company’s outstanding capital instruments, except for the Series G common stock and Series W common stock, and the Strategic Partner will acquire the Company.

The following table presents the assumptions used in the DCF and MCS calculations to determine the fair value of the Series W warrant:


	Year ended December 31, 2020
Terminal value—exit multiple	7.0
Weighted average cost of capital discount rate	22.0%
Expected life (in years)	0.25 year
Risk-free interest rate	0.9%
Expected volatility	56.9%

Special Redemption

On October 25, 2017, the Company adopted the 12th Amended and Restated Articles of Incorporation (the “Amendment”). Under Article IV of the Amendment, if the Strategic Partner had exercised the Series W Warrant, an automatic redemption, conversion, termination and cancellation of all then outstanding shares of the Company’s capital stock, options and warrants would have occurred without any further action required. Immediately prior to the automatic redemption, all outstanding preferred shares would have converted to common shares, unvested stock options would have accelerated and became fully vested and all stock options would have terminated along with any preferred stock warrants outstanding. Stockholders, option holders and warrant holders would have had the right to receive the initial per share price less the strike price as defined in the Warrant Agreement. The Strategic Partner would have advanced (through an exchange agent) the funds to the Company, which would then have disbursed the

funds to all shareholders, option holders and warrant holders. If the Series W Warrant was terminated or expired unexercised, Article IV of the Amendment would terminate and would be of no further force and effect.

In December 2020, management determined that exercise of the Series W Warrant was no longer probable, at which point further accretion to redemption value of common stock, preferred stock and stock options ceased.

On March 31, 2021, the Series W Warrant terminated as the Strategic Partner did not provide notice of exercise. A gain of $5.0 million was recorded on the expiration of the Series W Warrant in the accompanying consolidated statements of operations and comprehensive (loss) income for the year-ended December 31, 2021. Upon termination, amounts recorded in temporary equity for common stock and stock options were reclassified to common stock and additional paid-in capital within permanent equity as these instruments were no longer redeemable.

Summary of Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Schedule of Cash Cash Equivalents And Restricted Cash


	Year ended December 31,
	2021		2020

Cash and cash equivalents	$	24,361	$	13,994
Restricted cash		811		461
Cash, cash equivalents and restricted cash in the consolidated statements of cash flows	$	25,172	$	14,455

Schedule of Basic and Diluted Net Loss Per Share

The following tables show the computation of basic and diluted net (loss) income per share for 2021 and 2020 (in thousands, except number of shares):


	Year Ended December 31,
	2021			2020
Common Stock
Numerator:
Net (loss) income available to stockholders, basic	$	(48,688	)	$	3,366
Effect of dilutive securities:
Redeemable stock options		—			(2,511	)
Net (loss) income available to stockholders, diluted	$	(48,688	)	$	855
Denominator:
Weighted-average shares outstanding, basic		13,625,044			3,707,207
Effect of dilutive securities:
Redeemable stock options		—			1,825,098
Weighted-average shares, diluted		13,625,044			5,532,305

Net (loss) income per share:
Attributable to common stock, basic	$	(3.57	)	$	0.91
Attributable to common stock, diluted	$	(3.57	)	$	0.15

Series G Common Stock
Numerator:
Net loss available to stockholder, basic	$	—		$	(0.39	)
Effect of dilutive securities:
Redeemable preferred stock and warrants	$	—		$	(0.23	)
Net loss available to stockholder, diluted	$	—		$	(0.62	)
Denominator:
Weighted-average shares outstanding, basic and diluted		—			1
Basic net loss per share	$	—		$	(0.39	)
Diluted net loss per share	$	—		$	(0.62	)

Schedule of Dilutive Securities Excluded from Computation of Income (Loss) Per Share


	Year Ended December 31,
	2021		2020
Redeemable preferred stock and warrants		—		14,883,489
Stock options issued and outstanding under the 2006 Stock Plan, 2015 Equity Incentive Plan and 2021 Equity Incentive Plan		2,144,860		1,444,611
Restricted stock units		223,716		—
Stock issuable in offering period under the Employee Stock Purchase Plan		8,248		—

Schedule of Revenue from Contracts with Customers

For the years ended December 31, 2021 and 2020, revenue from contracts with customers consisted of the following (in thousands):


	Year ended December 31,
	2021		2020
LDD (including training)	$	13,774	$	10,159
LAL		8,163		4,256
Service warranty, service contracts, and accessories		656		263
	$	22,593	$	14,678

Inventories

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

Inventories

Note 4 – Inventories

Inventories consisted of the following (in thousands):


	December 31,
	2021			2020
Finished goods	$	4,451		$	5,092
Raw materials		2,828			1,827
Work-in-process		868			1,685
		8,147			8,604
Less: reserve for excess and obsolete inventory		(115	)		(316	)
	$	8,032		$	8,288

At December 31, 2021 and 2020, finished goods included $1.8 million and $2.7 million of inventory held on consignment at customer sites, respectively.

Property and equipment

12 Months Ended

Dec. 31, 2021

Property Plant And Equipment [Abstract]

Property and equipment

Note 5 – Property and equipment

Property and equipment consisted of the following (in thousands):


	December 31,
	2021			2020
Machinery and equipment	$	12,421		$	11,153
Leasehold improvements		10,334			10,152
Construction in progress		1,118			1,474
Computer hardware and software		1,536			1,101
Production molds		1,268			867
Furniture and fixtures		853			855
Right-of-use equipment		32			58
		27,562			25,660
Less: Accumulated depreciation and amortization		(16,345	)		(12,373	)
	$	11,217		$	13,287

The Company recorded $4.0 million and $3.9 million in depreciation and amortization expense for the years ended December 31, 2021 and 2020, respectively.

Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Federal	$ 0	$ 0
State	7	46
Foreign	1	11
Current Income Tax Expense (Benefit), Total	8	57
Federal	(9,950)	(7,179)
State	(3,241)	(2,642)
Foreign	0	0
Deferred Income Tax Expense (Benefit), Total	(13,191)	(9,821)
Change in valuation allowance	13,191	9,821
Income Tax Expense (Benefit), Total	$ 8	$ 57

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 24,361	$ 13,994
Short-term investments	134,971	54,981
Accounts receivable	4,862	2,865
Inventories	8,032	8,288
Prepaid and other current assets	4,069	1,372
Total current assets	176,295	81,500
Property and equipment, net	11,217	13,287
Operating leases right-of-use assets	4,284	5,319
Restricted cash	811	461
Other assets	114	110
Total assets	192,721	100,677
Current liabilities:
Accounts payable	1,689	1,134
Accrued expenses and other current liabilities	7,859	4,174
Warrant liability	0	5,018
Lease liabilities	1,529	1,274
Total current liabilities	11,077	11,600
Long-term warrant liability	0	3,828
Long-term lease liabilities	3,642	5,079
Term loan, net	39,760	24,399
Total liabilities	54,479	44,906
Commitments and contingencies (Note 12)
Redeemable common stock:
Common stock, $0.001 par value, no shares authorized, issued or outstanding as of December 31, 2021 and 24,545,966 shares authorized, 3,813,450 shares issued and outstanding as of December 31, 2020	0	80,780
Notes receivable for common stock issued	0	(803)
Redeemable stock options	0	53,085
Stockholders' equity (deficit):
Common stock, value	27	0
Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares issued and outstanding	0	0
Additional paid-in capital	617,511	0
Accumulated other comprehensive loss	(20)	(3)
Accumulated deficit	(479,276)	(430,588)
Total stockholders' deficit	138,242	(430,591)
Total liabilities, redeemable common stock, stock options, convertible preferred stock and stockholders' deficit	192,721	100,677
Convertible Preferred Stock [Member]
Convertible preferred stock:
Preferred stock, $0.001 par value, no shares authorized, issued or outstanding as of December 31, 2021 and 16,572,792 shares authorized, 14,376,272 shares issued and outstanding as of December 31, 2020 (redeemable)	0	353,300
Series G Common Stock [Member]
Stockholders' equity (deficit):
Common stock, value
Series W Common Stock [Member]
Stockholders' equity (deficit):
Common stock, value

Income Tax - Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Components of Deferred Tax Assets [Abstract]
Net Operating Loss	$ 62,347	$ 52,127
Amortization	117	134
Stock-based compensation	2,829	2,297
Research and Development Credit	7,902	6,663
Right of use of Liability	1,290	1,585
Depreciation	536	298
Other	1,745	740
Gross deferred tax assets	76,766	63,844
Less: Valuation Allowance	(75,546)	(62,355)
Total net deferred tax assets	1,220	1,489
Right of use of Asset	(1,220)	(1,489)
Total deferred tax liabilities	(1,220)	(1,489)
Net deferred tax assets	$ 0	$ 0

Property and Equipment - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Property Plant And Equipment [Abstract]
Depreciation and Amortization	$ 4.0	$ 3.9

Fair Value Measurements (Additional Information) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($)
Fair Value Disclosures [Abstract]
Fair Value of unexercised warrants	$ 5.0

Common Stock Warrant Liability - Schedule Of Assumptions Used To Determine The Fair Value Of Warrant (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Maximum [Member]
Class Of Warrant Or Right [Line Items]
Expected life (in years)	10 years	2 years
Minimum [Member]
Class Of Warrant Or Right [Line Items]
Expected life (in years)	5 years 6 months 7 days	4 months 24 days
Series W Common Stock [Member]
Class Of Warrant Or Right [Line Items]
Terminal value exit multiple		$ 7.0
Weighted average cost of capital discount rate		22.00%
Expected life (in years)		3 months
Risk-free interest rate		0.90%
Expected volatility		56.90%

Stockholders Equity (Deficit) - Summary of Common Stock Reserved For Future Issuance (Details) - shares	Dec. 31, 2021	Dec. 31, 2020
Class Of Stock [Line Items]
Conversion of preferred stock	6,878,511	19,278,888
Convertible Preferred Stock [Member]
Class Of Stock [Line Items]
Conversion of preferred stock	0	14,851,007
Preferred Stock Warrants [Member]
Class Of Stock [Line Items]
Conversion of preferred stock	0	225,945
Common Stock Warrant [Member]
Class Of Stock [Line Items]
Conversion of preferred stock	0	1
2006 and 2015 Plans [Member]
Class Of Stock [Line Items]
Conversion of preferred stock	5,754,005
Restricted Stock Units (RSUs) [Member]
Class Of Stock [Line Items]
Conversion of preferred stock	640,479	0
Employee Stock Purchase Plan [Member]
Class Of Stock [Line Items]
Conversion of preferred stock	484,027	0

Consolidated Balance Sheets (Parenthetical) - $ / shares

Dec. 31, 2021

Dec. 31, 2020

Common stock par value (USD per share)

$ 0.001

Preferred stock par value per share

$ 0.001

Preferred stock, shares authorized

100,000,000

16,572,792

Preferred Shares Issued

Preferred stock, shares outstanding

14,376,272

^[1]

Common stock, authorized (in shares)

900,000,000

Common stock issued (in shares)

27,366,746

Common stock outstanding (in shares)

27,366,746

Convertible Common Stock [Member]

Common stock par value (USD per share)

$ 0.001

Temporary equity, shares authorized (in shares)

24,545,966

Temporary equity, shares issued (in shares)

3,813,450

Temporary equity, shares outstanding (in shares)

3,813,450

Convertible Preferred Stock [Member]

Temporary equity, shares authorized (in shares)

16,572,792

Temporary equity, shares issued (in shares)

14,376,272

Temporary equity, shares outstanding (in shares)

14,376,272

Preferred stock par value per share

$ 0.001

Preferred stock, shares outstanding

14,376,272

Series W Common Stock [Member]

Common stock par value (USD per share)

$ 0.001

Common stock, authorized (in shares)

Common stock issued (in shares)

Common stock outstanding (in shares)

Series G Common Stock [Member]

Common stock par value (USD per share)

$ 0.001

Common stock, authorized (in shares)

Common stock issued (in shares)

Common stock outstanding (in shares)

[1]	The shares authorized, issued and outstanding do not reflect any anti-dilution provisions of Series C, Series D, Series E and Series F as a result of the Series G financing.

Stock-Based Compensation Expense - Schedule of Range and Weighted-average Assumptions Used in Black-Scholes Option Pricing Model to Determine the Fair Value of Stock Options (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility, Minimum	61.60%	83.40%
Expected volatility, Maximum	63.70%	97.40%
Risk-free interest rate, Minimum	0.60%	16.00%
Risk-free interest rate, Maximum	1.70%	31.00%
Expected dividend yield	0.00%	0.00%
Grant date fair value		$ 0.81
Expected volatility, Weighted Average	63.20%	94.60%
Risk-free interest rate, Weighted Average	1.00%	24.90%
Expected life (in years), Weighted Average	6 years 1 month 2 days	1 year 1 month 6 days
Expected dividend yield, Weighted Average	0.00%	0.00%
Grant date fair value, Weighted Average	$ 15.02	$ 0.81
Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected life (in years)	5 years 6 months 7 days	4 months 24 days
Grant date fair value	$ 12.08
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected life (in years)	10 years	2 years
Grant date fair value	$ 19.94

Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Sales	$ 22,593	$ 14,678
Cost of sales	18,076	12,973
Gross profit (loss)	4,517	1,705
Operating expenses:
Selling, general and administrative	32,805	15,176
Research and development	24,499	21,934
Loss on sale of equipment		7
Total operating expenses	57,304	37,117
Loss from operations	(52,787)	(35,412)
Other income (expense):
Change in fair value of warrants	2,717	63,011
Expiration of warrant	5,018
Interest expense	(3,682)	(510)
Interest and other income, net	54
(Loss) income before income taxes	(48,680)	27,632
Income tax expense	8	57
Net income (loss)	(48,688)	27,575
Accretion to redemption value of redeemable preferred stock and redeemable stock options		(24,209)
Net loss attributable to common stockholders	(48,688)	3,366
Other comprehensive loss
Unrealized gain (loss) on short-term investments	(7)	(49)
Foreign currency translation gain (loss)	(10)
Total other comprehensive loss	(17)	(49)
Comprehensive loss (income)	$ (48,705)	$ 27,526
Net (loss) income per share:
Attributable to common stock, basic	$ (3.57)	$ 0.91
Attributable to common stock, diluted	$ (3.57)	$ 0.15
Weighted-average shares used in computing net loss per share:
Attributable to common stock, basic	13,625,044	3,707,207
Attributable to common stock, diluted	13,625,044	5,532,305
Series G Preferred Stock [Member]
Net (loss) income per share:
Attributable to Series G common stock, basic		$ (0.39)
Attributable to Series G common stock, diluted		$ (0.62)
Weighted-average shares used in computing net loss per share:
Attributable to Series G common stock, basic and diluted		1

Stockholders Equity (Deficit)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Stockholders Equity (Deficit)

Note 10 – Stockholders’ Equity (Deficit)

On July 29, 2021, the Company restated its certificate of incorporation and bylaws which provide for, among other things, the Company’s authorized capital stock to consist of 900,000,000 shares of common stock, par value $0.001 per share, and 100,000,000 shares of convertible preferred stock, par value $0.001 per share. The restated certificate defines the voting rights, dividends, liquidation, rights and preferences of each class of stock.

There are 900,000,000 shares of common stock authorized, 27,366,746 issued and outstanding at December 31, 2021, and 24,545,966 shares authorized, 3,813,450 shares issued and outstanding as of December 31, 2020.

There are 100,000,000 shares of preferred stock authorized and none issued or outstanding at December 31, 2021 and 2020.

Prior to the IPO, the Amendment authorized eight classes of preferred stock, Series A through F, the “Prior Preferred Stock” and Series G and H, the “Senior Preferred Stock”. All of the Company’s redeemable convertible preferred stock were classified as temporary equity on the accompanying December 31, 2020 consolidated balance sheets, as all such preferred stock is redeemable either at the option of the holder or upon an event outside the control of the Company (i.e., a change in control). The redeemable convertible preferred stock was redeemable per the Special Redemption (see Note 9 - Common Stock Warrant Liability) or upon certain change in control events (including liquidation, sale or transfer of control of the Company); however, the Special Redemption was not a certain event, and all change in control events are outside of the Company’s control. In the event of the Special Redemption, the holders were entitled to receive redemption proceeds as defined in the Warrant Agreement. In the event of liquidation, holders of the convertible preferred stock might have had the right to receive its liquidation preference under the terms of the Company’s Amendment.

As a result of management’s determination that the Special Redemption was probable, but not certain, the Company began accreting to the expected redemption value of the redeemable convertible preferred stock in October 2017. In December 2020, management determined that the Special Redemption was no longer probable, at which point accretion to redemption value ceased. As of March 31, 2021 the Series W Warrant expired unexercised, and all redemption provisions of the Special Redemption lapsed.

The following table summarizes information related to issuance of the Company’s preferred stock (in thousands, except number of shares and per share amounts):


	As of December 31, 2020
	Par Value		Date of Issuance	Shares Price at Issuance		Shares Authorized(1)		Shares Issued and Outstanding(1)		Liquidation Preference		Carrying Value (2) Share Capital
Series A	$	0.001	Feb-2000	$	40.81		355,921		355,903	$	14,523	$	13,535
Series B	$	0.001	May-2003	$	9.07		1,741,452		1,741,399		15,795		39,715
Series C	$	0.001	Feb-2007	$	12.92		1,168,344		1,168,311		15,086		28,136
Series D	$	0.001	Aug-2009	$	18.08		663,808		663,728		12,000		18,503
Series E	$	0.001	Oct-2011	$	20.66		353,339		353,327		7,300		10,350
Series F	$	0.001	May-2012	$	25.83		507,744		499,159		12,891		18,305
Series G	$	0.001	Jun-2015	$	12.40		5,832,685		5,788,878		71,759		135,682
Series H	$	0.001	Feb-2017	$	12.40		5,949,499		3,805,567		47,174		89,074
							16,572,792		14,376,272	$	196,528	$	353,300

(1) The shares authorized, issued and outstanding do not reflect any anti-dilution provisions of Series C, Series D, Series E and Series F as a result of the Series G financing.

(2) The carrying value reflects the gross proceeds received from the sale of the preferred stock less issuance costs and the fair value at issuance of preferred stock warrants classified as a liability, plus accretion of redemption value.

Preferred stock was convertible at the option of the holder into common stock on a one-for-one basis and was converted upon completion of the Company's IPO on July 29, 2021. Immediately prior to the completion of the IPO, 14,376,272 outstanding shares of the Company's convertible preferred stock were converted into an aggregate of 14,850,993 shares of common stock and 225,945 warrants to purchase Series H convertible preferred stock were exercised and converted into 225,945 shares of common stock.

The following table shows the common stock equivalent of preferred stock which was converted as a result of the anti-dilution provisions enacted during the Series G financing.


	Fully Diluted on Conversion (1)
Converted Shares	12/31/2020

Series A		355,903
Series B		1,741,399
Series C		1,197,590
Series D		772,963
Series E		429,766
Series F		758,941
Series G		5,788,878
Series H		3,805,567
Total		14,851,007
(1) Excludes preferred stock warrants see Note 11 – Convertible Preferred Stock Warrants.

Common stock reserved for future issuance consisted of the following:


	December 31, 2021		December 31, 2020
Conversion of preferred stock		—		14,851,007
Preferred stock warrants		—		225,945
Common stock warrant		—		1
Stock options issued and outstanding under the 2006, 2015 and 2021 plans		5,754,005		4,201,935
Restricted stock units		640,479		—
Employee stock purchase plan		484,027		—
Total shares of common stock issued or reserved		6,878,511		19,278,888

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (b)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Topic 505
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-Section S99
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-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section 50
-Paragraph 18
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI http://asc.fasb.org/topic&trid=2208762

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Summary of Accounting Policies - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Unrealized Gain (Loss) on Investments	$ 9,000,000	$ 2,000
Allowance for doubtful accounts	0	0
Increased (Decreased) In Restricted Cash	350,000
Restricted cash	811,000	461,000
Liability on Uncertain Tax Position	$ 0	$ 0
Percentage of gross accounts receivable	10.00%	35.00%
Deferred revenue	$ 540,000	$ 345,000
Additional Paid-in Capital
Deferred Offering Costs	$ 3,200,000
Minimum [Member]
Useful lives of property and equipment	3 years
Maximum
Useful lives of property and equipment	5 years
One Customer [Member] \| Customer Concentration Risk \| Revenue Benchmark
Concentration Risk, Percentage		27.00%
No Customer \| Customer Concentration Risk \| Revenue Benchmark
Concentration Risk, Percentage	10.00%

Stock-Based Compensation Expense

12 Months Ended

Dec. 31, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation Expense

Note 12 – Stock-based compensation expense

The Company has three equity incentive compensation plans, the Calhoun Vision, Inc. 2015 Equity Incentive Plan, the Calhoun Vision, Inc. 2006 Stock Plan, and the 2021 Equity Incentive Plan (collectively the “Plans”).

2006 Stock Plan

The Company’s 2006 Stock Plan (the “2006 Plan”) was originally adopted by the Company's Board of Directors and approved by the Company’s stockholders in 2006. The Company’s 2006 Plan was terminated in 2015 in connection with the adoption of the Company’s 2015 Plan and as a result no new awards may be issued under the

2006 Plan. However, the 2006 Plan will continue to govern the terms and conditions of the outstanding awards previously granted under the 2006 Plan.

2015 Equity Incentive Plan

The Company’s 2015 Equity Incentive Plan (the “2015 Plan”) was originally adopted by the Company’s Board of Directors and approved by the Company’s stockholders in 2015. The 2015 Plan was most recently amended in March 2021. In July 2021, upon completion of the IPO, the 2015 Plan terminated immediately prior to effectiveness of the 2021 Equity Incentive Plan with respect to the grant of future awards. However, the 2015 Plan will continue to govern the terms and conditions of the outstanding awards previously granted under the 2015 Plan.

2021 Equity Incentive Plan

On July 28, 2021, the Company’s 2021 Equity Incentive Plan (the “2021 Plan”), was adopted and approved by the Company’s Board of Directors and stockholders prior to the IPO and became effective. The 2021 Plan provides for the grant of incentive stock options to employees and any subsidiary corporations’ employees, and for the grant of nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units, or (“RSUs”), and performance awards to employees, directors, and consultants and subsidiary corporations’ employees and consultants. The number of shares of the Company’s common stock available for issuance under the 2021 Plan is equal to 2,420,135 shares of common stock plus any shares subject to awards granted under the 2015 Plan and the 2006 Plan that, after the effectiveness of the 2021 Plan, expire or otherwise terminate without having been exercised in full, are tendered to or withheld by the Company for payment of an exercise price or for tax withholding obligations, or are forfeited to or repurchased by the Company due to failure to vest, with the maximum number of shares to be added to the 2021 Plan from the 2015 Plan and 2006 Plan is equal to 4,569,530 shares of common stock.

The number of common shares reserved for issuance under the 2021 Plan will be increased automatically on the first day of each fiscal year beginning with the 2022 fiscal year and ending on the ten year anniversary of the date the Board of Directors approved the 2021 Plan, by a number equal to the least of: (i) 7,260,406 shares of our common stock; (ii) 4% of the outstanding shares of our common stock on the last day of our immediately preceding fiscal year; or (iii) such lesser number of shares of our common stock as the administrator may determine. The 2021 Plan is administered by the Company’s Board of Directors.

2021 Employee Stock Purchase Plan

On July 28, 2021, the Company’s Board of Directors and stockholders adopted and approved the Company’s 2021 Employee Stock Purchase Plan (“2021 ESPP”). The number of shares of the Company’s common stock available for issuance under the 2021 ESPP is equal to 484,027 shares of common stock.

The 2021 ESPP provides eligible employees of the Company and its subsidiaries with the opportunity to purchase shares of the Company’s Common Stock at a purchase price equal to 85% of the common stock’s fair market value on the first trading day or last trading day of each purchase period, whichever is lower. The 2021 ESPP generally provides for two six-month purchase periods every twelve months: May 1 through October 31 and November 1 through April 30. The initial purchase period began on November 1, 2021.

The number of common shares reserved for issuance under the 2021 ESPP plan will be increased automatically on the first day of each fiscal year beginning with our 2022 fiscal year, by a number equal to the least of: (i) 1,452,081 shares; (ii) 1% of the outstanding shares of our common stock on the last day of our immediately preceding fiscal year; or (iii) such other amount as the administrator may determine. The 2021 ESPP is administered by the Board of Directors.

Stock-Based Compensation Expense

The purpose of the 2021 Plan and 2021 ESPP is to provide a means by which eligible recipients of stock awards may be given an opportunity to benefit from increases in the value of the common stock in order to retain or procure the services of the employees, members of the Board and consultants and provide them with an incentive to promote the Company’s success and accomplish corporate goals.

Stock option awards are generally granted with an exercise price of no less than 100% of estimated fair market value on the date of grant. Time based awards generally vest over four years as follows: one fourth of the total

number of shares vest and become exercisable on the one-year anniversary; 1/48th of the total number of shares subject to the option vest and become exercisable on each monthly anniversary thereafter for the remaining three years.

A summary of the stock option activities related to the Plans, as of and for the year ended December 31, 2021 and 2020 is presented below:


	Number of Options			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Weighted Avg Remaining Contractual Life (Years)
Options outstanding as of December 31, 2019		3,473,757		$	7.76				6.00
Granted		1,156,078		$	15.09	$	8.39
Exercised		(249,566	)	$	3.98	$	2.08
Forfeited		(168,831	)	$	18.53	$	8.96
Expired		(9,503	)	$	4.14
Options outstanding as of December 31, 2020		4,201,935		$	9.57				6.46
Granted		2,057,113		$	14.88	$	8.53
Exercised		(364,504	)	$	4.26	$	2.13
Forfeited		(111,748	)	$	15.67	$	10.63
Expired		(28,791	)	$	16.06
Options outstanding as of December 31, 2021		5,754,005		$	11.64				6.88
Exercisable as of December 31, 2021		3,316,356		$	9.20				5.20

A summary of non-vested restricted stock unit activities for the year ended December 31, 2021 is as follows:


				Weighted
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2020		—			—
Granted		657,729		$	15.46
Vested		—			—
Forfeited		(17,250	)		15.38
Unvested at December 31, 2021		640,479		$	15.46

As of December 31, 2021 and 2020, the intrinsic value of options vested was $14.7 million and $26.2 million, respectively, and of all options outstanding was $14.7 million and $26.4 million, respectively. During the year ended December 31, 2021 and 2020, the total cash received from the exercise of stock options was $1.6 million and $1.0 million, respectively. The total fair value less strike price of these options was $4.0 million and $2.8 million, respectively.

Stock-based compensation expense was classified in the accompanying consolidated statements of operations and comprehensive income (loss) as follows (in thousands):


	Twelve Months Ended December 31,
	2021		2020
Research and development	$	2,620	$	2,200
Selling, general and administrative		4,061		1,344
Cost of sales		894		641
	$	7,575	$	4,185

As of December 31, 2021 and 2020, there were 2,437,649 and 1,177,165 unvested options, respectively. Total unrecognized expense related to unvested stock options was approximately $20.1 million and $9.8 million as of December 31, 2021 and 2020, respectively. Amounts are expected to be recognized over a weighted average period of approximately 3.0 years and 2.9 years, respectively.

As of December 31, 2021, there was $8.8 million of total unrecognized compensation costs related to non-vested restricted stock units granted under the Plans. The unrecognized compensation cost is expected to be recognized over a weighted average period of 3.5 years.

The following table presents the range and weighted-average assumptions, used in the Black-Scholes option pricing model to determine the fair value of stock options:


	Year ended December 31,
	2021		2020
	Range	Weighted Average	Range	Weighted Average
Expected volatility	61.6% to 63.7%	63.2%	83.4% to 97.4%	94.6%
Risk-free interest rate	0.6% to 1.7%	1.0%	16% to 31%	24.9%
Expected life (in years)	5.52 to 10.00 years	6.09 years	0.4 to 2.0 years	1.1 years
Expected dividend yield	0.0%	0.0%	0.0%	0.0%
Grant date fair value	$12.08 to $19.94	$15.02	$0.81	$0.81

On July 30, 2021, the Board of Directors approved the issuance of 640,567 equity awards to the Company's named executive officers and certain non-employee directors, consisting of 17,577 restricted stock units and 622,990 stock option awards. The awards will vest over one to four years of service.

On August 3, 2021, the Board of Directors approved the issuance of equity awards to certain non-employee directors, consisting of 40,134 restricted stock units. The awards will vest over one to three years of service.

On January 3, 2022, the Board of Directors approved the issuance of 19,196 restricted stock units to a non-employee director. The award will vest over three years of service.

Accrued Expenses and Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Accrued Liabilities Current [Abstract]

Summary of accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	December 31,
	2021		2020
Employee compensation and benefits	$	5,916	$	2,943
Vendor invoices		871		745
Contract liabilities		618		417
Accrued interest		319		—
Other		135		69
	$	7,859	$	4,174

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax

The components of (loss) income before income taxes are as follows (in thousands):


	December 31,			December 31,
	2021			2020
U.S. (loss) income before taxes	$	(48,694	)	$	27,577
Foreign income before taxes		14			55
(Loss) income before income taxes	$	(48,680	)	$	27,632

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense for the years ended December 31, 2021 and 2020 consists of the following (in thousands):


	Year ended December 31,
	2021			2020
Current:
Federal	$	—		$	—
State		7			46
Foreign		1			11
		8			57
Deferred:
Federal		(9,950	)		(7,179	)
State		(3,241	)		(2,642	)
Foreign		—			—
		(13,191	)		(9,821	)
Change in valuation allowance		13,191			9,821
Income tax expense	$	8		$	57

Schedule of Deferred Tax Assets and Liabilities

The significant components that comprised the Company’s net deferred taxes are as follows (in thousands):


	Year ended December 31,
Deferred tax assets:	2021			2020
Net operating loss	$	62,347		$	52,127
Amortization		117			134
Stock-based compensation		2,829			2,297
Research and development credit		7,902			6,663
Right-of-use liability		1,290			1,585
Depreciation		536			298
Other		1,745			740
Gross deferred tax assets		76,766			63,844
Less: valuation allowance		(75,546	)		(62,355	)
Total net deferred tax assets	$	1,220		$	1,489
Deferred tax liabilities:
Right-of-use asset		(1,220	)		(1,489	)
Total deferred tax liabilities		(1,220	)		(1,489	)
Net deferred tax assets	$	-		$	-

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the provision for income taxes with the expected income tax computed by applying the federal statutory income tax rate to loss before provision for income taxes was calculated as follows (amounts in thousands):


	December 31, 2021						December 31, 2020
	Rate			Amount			Rate			Amount
Income tax provision at the federal statutory tax rate		21.0	%	$	(10,223	)		21.0	%	$	5,793
State taxes, net of federal benefit		4.1	%		(1,989	)		(5.3	)%		(1,468	)
Research and development credits		2.6	%		(1,241	)		(4.7	)%		(1,306	)
Stock-based compensation		(1.4	)%		677			0.4	%		122
Other non-deductible permanent items		2.6	%		(1,252	)		(47.9	)%		(13,204	)
Expired tax attributes		(2.0	)%		960			1.5	%		426
Other		0.2	%		(113	)		(0.5	)%		(127	)
Change in valuation allowance		(27.1	)%		13,189			35.6	%		9,821
Income tax expense		0.0	%		8			0.1	%	$	57

Schedule of Unrecognized Tax Benefits [Roll Forward]

The following changes occurred in the amount of unrecognized tax benefits (in thousands):


	Year ended December 31,
	2021		2020
Beginning balance of unrecognized tax benefits	$	2,554	$	2,056
Additions for current year tax positions		459		486
Reductions for prior year tax positions		—		12
Ending balance	$	3,013	$	2,554

Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense (Details) - The Calhoun Vision, Inc. 2015 Equity Incentive Plan and the Calhoun Vision, Inc. 2006 Stock Plan [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	$ 7,575	$ 4,185
Research and Development [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	2,620	2,200
Selling, General and Administrative [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	4,061	1,344
Cost of sales [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense	$ 894	$ 641

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 27, 2020	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Increase in valuation allowance		$ 13,191	$ 9,821
Federal net operating loss carryforwards		270,400
State net operating loss carryforwards		100,200
Federal net operating loss		7,300
State net operating Loss		7,200
Federal operating loss carry forwards not expire		154,000
Percent of taxable income offset in future	100.00%
State operating loss carry forwards		7,200
Federal Operating Loss Carry Forwards		7,300
State operating loss carry forwards not expire		$ 17,800
Taxable Income offset, percentage		80.00%
Description of the limitations on the use of all operating loss carryforwards		Pursuant to Internal Revenue Code (“IRC”) Sections 382 and 383, annual use of the Company’s net operating loss and R&D credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a three-year period.
Amount of earnings from Foreign subsidiaries		$ 0	$ 0

Summary of Accounting Policies - Schedule of Cash Cash Equivalents And Restricted Cash (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 24,361,000	$ 13,994,000
Restricted cash	811,000	461,000
Cash, cash equivalents and restricted cash in the consolidated statements of cash flows	$ 25,172,000	$ 14,455,000	$ 8,830,000

Income Taxes - Schedule of Income before Income Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
U.S. (loss) income before taxes	$ (48,694)	$ 27,577
Foreign income before taxes	14	55
(Loss) income before income taxes	$ (48,680)	$ 27,632

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 30
-Subparagraph (b)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 32
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Section 25
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-URI http://asc.fasb.org/extlink&oid=123384075&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
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-Section S99
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-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Short-Term Investments - Additional Information (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Maximum [Member] \| Government Securities [Member]
Short Term Debt [Line Items]
Investment Maturity Period	1 year	1 year

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 13 – Income Taxes

The components of (loss) income before income taxes are as follows (in thousands):


	December 31,			December 31,
	2021			2020
U.S. (loss) income before taxes	$	(48,694	)	$	27,577
Foreign income before taxes		14			55
(Loss) income before income taxes	$	(48,680	)	$	27,632

Income tax expense for the years ended December 31, 2021 and 2020 consists of the following (in thousands):


	Year ended December 31,
	2021			2020
Current:
Federal	$	—		$	—
State		7			46
Foreign		1			11
		8			57
Deferred:
Federal		(9,950	)		(7,179	)
State		(3,241	)		(2,642	)
Foreign		—			—
		(13,191	)		(9,821	)
Change in valuation allowance		13,191			9,821
Income tax expense	$	8		$	57

The significant components that comprised the Company’s net deferred taxes are as follows (in thousands):


	Year ended December 31,
Deferred tax assets:	2021			2020
Net operating loss	$	62,347		$	52,127
Amortization		117			134
Stock-based compensation		2,829			2,297
Research and development credit		7,902			6,663
Right-of-use liability		1,290			1,585
Depreciation		536			298
Other		1,745			740
Gross deferred tax assets		76,766			63,844
Less: valuation allowance		(75,546	)		(62,355	)
Total net deferred tax assets	$	1,220		$	1,489
Deferred tax liabilities:
Right-of-use asset		(1,220	)		(1,489	)
Total deferred tax liabilities		(1,220	)		(1,489	)
Net deferred tax assets	$	-		$	-


	December 31, 2021						December 31, 2020
	Rate			Amount			Rate			Amount
Income tax provision at the federal statutory tax rate		21.0	%	$	(10,223	)		21.0	%	$	5,793
State taxes, net of federal benefit		4.1	%		(1,989	)		(5.3	)%		(1,468	)
Research and development credits		2.6	%		(1,241	)		(4.7	)%		(1,306	)
Stock-based compensation		(1.4	)%		677			0.4	%		122
Other non-deductible permanent items		2.6	%		(1,252	)		(47.9	)%		(13,204	)
Expired tax attributes		(2.0	)%		960			1.5	%		426
Other		0.2	%		(113	)		(0.5	)%		(127	)
Change in valuation allowance		(27.1	)%		13,189			35.6	%		9,821
Income tax expense		0.0	%		8			0.1	%	$	57

The tax effects of items that give rise to significant portions of deferred tax assets are primarily net operating loss carryforwards. The Company evaluates the recoverability of deferred tax assets and assesses all available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. Based on the weight of all the evidence, including a history of operating losses and the Company’s ability to generate future taxable income to realize these assets, a full valuation allowance has been recorded to offset the net deferred tax asset as realization of such asset is uncertain. The Company’s valuation allowance increased by $13.2 million and $9.8 million in 2021 and 2020, respectively.

As of December 31, 2021, the Company had federal net operating loss carryforwards of $270.4 million and state net operating loss carryforwards of $100.2 million which may be available to offset future taxable income for tax purposes. Of the $270.4 million in federal NOLs, $154.0 million will not expire and will be able to offset 80% of taxable income in future years. Of the $100.2 million in state NOLs, $17.8 million will not expire and will be able to offset 80% of taxable income in future years. The remaining federal NOL carryforwards will expire between 2022 and 2037, and the remaining state NOL carryforwards will expire between 2028 and 2041. In addition, the Company also had federal credit carry forwards of $7.3 million and state credit carry forwards of $7.2 million as of December 31, 2021, which may be available to offset future tax liabilities. The federal credits will expire between 2037 and 2041, and the state credits do not expire.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits NOL carryovers and

carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019 and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. Due to the Company’s history of net operating losses, the CARES Act is not expected to have a material impact on the Company’s consolidated financial statements.

On December 27, 2020, the United States enacted the Consolidated Appropriations Act, 2021 (the “Appropriations Act”). Included in the tax provisions are a number of items directly related to COVID-19 relief such as a provision allowing recipients of Paycheck Protection Program (the “PPP”) loans to deduct associated costs and an extension and significant expansion of the employee retention credit originally enacted in the CARES Act. There was no material impact to the Company from the provisions of the Appropriations Act in 2021 and 2020.

On June 29, 2020, the state of California enacted Assembly Bill No. 85 (AB 85) suspending California net operating loss utilization and imposing a cap on the amount of business incentive tax credits companies can utilize, effective for tax years 2020, 2021 and 2022. There was no material impact from the provisions of AB 85 in 2021 and 2020.

Utilization of the net operating loss carryforwards may be subject to substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), as well as similar state provisions. These ownership changes may limit the amount of net operating loss carryforwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change,” as defined by Section 382 of the Code, results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain stockholders or public groups.

Pursuant to Internal Revenue Code (“IRC”) Sections 382 and 383, annual use of the Company’s net operating loss and R&D credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a three-year period. The Company has not completed an IRC Sections 382 and 383 analysis regarding the limitation of net operating loss and R&D credit carryforwards as of December 31, 2021. The Company has not completed a formal R&D study but has estimated the federal and California credit for purposes of the tax footnote as of December 31, 2021. However, the Company has not reflected a benefit in the consolidated financial statements due to the recorded valuation allowance.

The following changes occurred in the amount of unrecognized tax benefits (in thousands):


	Year ended December 31,
	2021		2020
Beginning balance of unrecognized tax benefits	$	2,554	$	2,056
Additions for current year tax positions		459		486
Reductions for prior year tax positions		—		12
Ending balance	$	3,013	$	2,554

None of the unrecognized tax benefits, if recognized, would impact the annual effective rate, due to the valuation allowance. The Company’s unrecognized tax benefits are recorded as a reduction in deferred tax assets. The Company does not expect any significant increases or decreases to the Company’s unrecognized tax benefits within the next 12 months. Due to the existence of the valuation allowance, future changes in the Company's unrecognized tax benefits will not impact the Company's effective tax rate. The Company has not incurred any material interest or penalties as of the current reporting date with respect to income tax matters.

The Company is subject to U.S. federal and various states' income taxes. The federal returns for tax years 2018 through 2021 remain open to examination and the state returns remain subject to examination for tax years 2017 through 2021. Carryforward attributes that were generated in years where the statute of limitations is closed may still be adjusted upon examination by the Internal Revenue Service or other respective tax authorities. All other state jurisdictions remain open to examination. There are no cumulative earnings in our foreign subsidiaries as of December 31, 2021 and 2020 that would be subject to U.S. income tax or foreign withholding tax. The Company plans to indefinitely reinvest any future earnings of its foreign subsidiaries.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accrued Liabilities Current [Abstract]
Employee compensation and benefits	$ 5,916	$ 2,943
Vendor invoices	871	745
Contract liabilities	618	417
Accrued interest	319	0
Other	135	69
Total	$ 7,859	$ 4,174

Notes Receivable for Redeemable Common Stock

12 Months Ended

Dec. 31, 2021

Notes Receivable Disclosure [Abstract]

Notes Receivable for Redeemable Common Stock

Note 14 – Notes Receivable for Redeemable Common Stock

During 2016 and 2017, the Company entered into or renewed full recourse promissory notes with former or current Board Members and certain other parties with an aggregate principal of $693,000, which included unpaid principal and accrued interest thereon. The notes bore interest at 7%, compounded annually. The initial maturity of the notes was amended to extend the maturity dates into 2021 and 2022 in exchange for payments totaling $105,000. Common stock was originally issued as consideration for the promissory notes and was held as collateral. As of December 31, 2021 and 2020, accrued interest was $0 and $110,000, respectively.

On July 29, 2021, the Company completed its IPO and immediately prior to the completion of the IPO, 11,011 outstanding shares of the Company's common stock were surrendered to satisfy the promissory note and accrued interest. The promissory notes and outstanding interest thereon were reported as a component of temporary equity in the accompanying consolidated balance sheets and statements of redeemable common stock, stock options, preferred stock and stockholders’ deficit as of December 31, 2020.

Summary of Accounting Policies - Schedule of Dilutive Securities Excluded from Computation of Income (Loss) Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Redeemable Preferred Stock And Warrants [Member]
Earnings Per Share [Line Items]
Anti-dilutive securities	0	14,883,489
Stock Options Issued and Outstanding Under the 2006, 2015 and 2021 Plans
Earnings Per Share [Line Items]
Anti-dilutive securities	2,144,860	1,444,611
Restricted Stock Units (RSUs) [Member]
Earnings Per Share [Line Items]
Anti-dilutive securities	223,716	0
Employee Stock Purchase Plan [Member]
Earnings Per Share [Line Items]
Anti-dilutive securities	8,248	0

Accrued Expenses and Other Current Liabilities

12 Months Ended

Dec. 31, 2021

Accrued Liabilities Current [Abstract]

Accrued Expenses and Other Current Liabilities

Note 7 – Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	December 31,
	2021		2020
Employee compensation and benefits	$	5,916	$	2,943
Vendor invoices		871		745
Contract liabilities		618		417
Accrued interest		319		—
Other		135		69
	$	7,859	$	4,174

Organization and Basis of Presentation - Additional Information (Details)
$ / shares in Units, $ in Millions

12 Months Ended

Jul. 29, 2021

USD ($)

$ / shares

Jul. 22, 2021

Dec. 31, 2021

USD ($)

Subsidiary

$ / shares

Dec. 31, 2020

USD ($)

$ / shares

Jul. 28, 2021

Subsequent Event [Line Items]

Number of wholly owned subsidiaries | Subsidiary

Reverse stock split

1-for-10.33

Common stock par or stated value per share | $ / shares

$ 0.001

Common stock, authorized (in shares)

900,000,000

Preferred stock par value per share | $ / shares

$ 0.001

Preferred stock, shares authorized

100,000,000

16,572,792

Preferred stock, shares outstanding

14,376,272

^[1]

Aggregate shares of common stock

14,850,993

14,725,309

Number of converted shares of common stock

100,261

Cash, cash equivalents, and short-term investments | $

$ 159.3

Losses from operations | $

$ 52.8

$ 35.4

Convertible Preferred Stock [Member]

Subsequent Event [Line Items]

Preferred stock par value per share | $ / shares

$ 0.001

Preferred stock, shares authorized

100,000,000

Preferred stock, shares outstanding

14,376,272

Series H Convertible Preferred Stock

Subsequent Event [Line Items]

Sale of Stock, Transaction Date

Feb. 28, 2017

Common stock par or stated value per share | $ / shares

$ 12.40

Preferred stock par value per share | $ / shares

$ 0.001

Preferred stock, shares authorized

5,949,499

Preferred stock, shares outstanding

^[1]

3,805,567

Warrants exercised

225,945

Number of converted shares of common stock

225,945

100,261

IPO [Member]

Subsequent Event [Line Items]

Sale of Stock, Transaction Date

Jul. 29, 2021

Sale of shares

7,350,000

Common stock par or stated value per share | $ / shares

$ 16.00

Additional common shares sold

898,549

Common stock sale underwriting discounts and commission deducted | $

$ 9.2

Common stock offering costs | $

3.2

Aggregate net proceeds from offering | $

$ 120.0

[1]	The shares authorized, issued and outstanding do not reflect any anti-dilution provisions of Series C, Series D, Series E and Series F as a result of the Series G financing.

Inventories (Tables)

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consisted of the following (in thousands):


	December 31,
	2021			2020
Finished goods	$	4,451		$	5,092
Raw materials		2,828			1,827
Work-in-process		868			1,685
		8,147			8,604
Less: reserve for excess and obsolete inventory		(115	)		(316	)
	$	8,032		$	8,288

Stockholders Equity (Deficit) - Summary of Preferred Units (Details) - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2020

Dec. 31, 2021

Jul. 29, 2021

Temporary Equity [Line Items]

Preferred stock par value per share

$ 0.001

Common stock par or stated value per share

$ 0.001

Preferred stock, shares authorized

16,572,792

100,000,000

Preferred Shares Issued

Preferred stock, shares outstanding

14,376,272

^[1]

Liquidation Preference

$ 196,528

Carrying Value (2) Share Capital

^[2]

$ 353,300

Series A Preferred Stock [Member]

Temporary Equity [Line Items]

Preferred stock par value per share

$ 0.001

Sale of Stock, Transaction Date

Feb. 29, 2000

Common stock par or stated value per share

$ 40.81

Preferred stock, shares authorized

355,921

Preferred stock, shares outstanding

^[1]

355,903

Liquidation Preference

$ 14,523

Carrying Value (2) Share Capital

^[2]

$ 13,535

Series B Preferred Stock [Member]

Temporary Equity [Line Items]

Preferred stock par value per share

$ 0.001

Sale of Stock, Transaction Date

May 31, 2003

Common stock par or stated value per share

$ 9.07

Preferred stock, shares authorized

1,741,452

Preferred stock, shares outstanding

^[1]

1,741,399

Liquidation Preference

$ 15,795

Carrying Value (2) Share Capital

^[2]

$ 39,715

Series C Preferred Stock [Member]

Temporary Equity [Line Items]

Preferred stock par value per share

$ 0.001

Sale of Stock, Transaction Date

Feb. 28, 2007

Common stock par or stated value per share

$ 12.92

Preferred stock, shares authorized

1,168,344

Preferred stock, shares outstanding

^[1]

1,168,311

Liquidation Preference

$ 15,086

Carrying Value (2) Share Capital

^[2]

$ 28,136

Series D Preferred Stock [Member]

Temporary Equity [Line Items]

Preferred stock par value per share

$ 0.001

Sale of Stock, Transaction Date

Aug. 31, 2009

Common stock par or stated value per share

$ 18.08

Preferred stock, shares authorized

663,808

Preferred stock, shares outstanding

^[1]

663,728

Liquidation Preference

$ 12,000

Carrying Value (2) Share Capital

^[2]

$ 18,503

Series E Preferred Stock [Member]

Temporary Equity [Line Items]

Preferred stock par value per share

$ 0.001

Sale of Stock, Transaction Date

Oct. 30, 2011

Common stock par or stated value per share

$ 20.66

Preferred stock, shares authorized

353,339

Preferred stock, shares outstanding

^[1]

353,327

Liquidation Preference

$ 7,300

Carrying Value (2) Share Capital

^[2]

$ 10,350

Series F Preferred Stock [Member]

Temporary Equity [Line Items]

Preferred stock par value per share

$ 0.001

Sale of Stock, Transaction Date

May 31, 2012

Common stock par or stated value per share

$ 25.83

Preferred stock, shares authorized

507,744

Preferred stock, shares outstanding

^[1]

499,159

Liquidation Preference

$ 12,891

Carrying Value (2) Share Capital

^[2]

$ 18,305

Series G Preferred Stock [Member]

Temporary Equity [Line Items]

Preferred stock par value per share

$ 0.001

Sale of Stock, Transaction Date

Jun. 30, 2015

Common stock par or stated value per share

$ 12.40

Preferred stock, shares authorized

5,832,685

Preferred stock, shares outstanding

^[1]

5,788,878

Liquidation Preference

$ 71,759

Carrying Value (2) Share Capital

^[2]

$ 135,682

Series H Convertible Preferred Stock

Temporary Equity [Line Items]

Preferred stock par value per share

$ 0.001

Sale of Stock, Transaction Date

Feb. 28, 2017

Common stock par or stated value per share

$ 12.40

Preferred stock, shares authorized

5,949,499

Preferred stock, shares outstanding

^[1]

3,805,567

Liquidation Preference

$ 47,174

Carrying Value (2) Share Capital

^[2]

$ 89,074

[1]	The shares authorized, issued and outstanding do not reflect any anti-dilution provisions of Series C, Series D, Series E and Series F as a result of the Series G financing.
[2]	The carrying value reflects the gross proceeds received from the sale of the preferred stock less issuance costs and the fair value at issuance of preferred stock warrants classified as a liability, plus accretion of redemption value.

Stockholders Equity (Deficit) (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Summary of Preferred Units

The following table summarizes information related to issuance of the Company’s preferred stock (in thousands, except number of shares and per share amounts):


	As of December 31, 2020
	Par Value		Date of Issuance	Shares Price at Issuance		Shares Authorized(1)		Shares Issued and Outstanding(1)		Liquidation Preference		Carrying Value (2) Share Capital
Series A	$	0.001	Feb-2000	$	40.81		355,921		355,903	$	14,523	$	13,535
Series B	$	0.001	May-2003	$	9.07		1,741,452		1,741,399		15,795		39,715
Series C	$	0.001	Feb-2007	$	12.92		1,168,344		1,168,311		15,086		28,136
Series D	$	0.001	Aug-2009	$	18.08		663,808		663,728		12,000		18,503
Series E	$	0.001	Oct-2011	$	20.66		353,339		353,327		7,300		10,350
Series F	$	0.001	May-2012	$	25.83		507,744		499,159		12,891		18,305
Series G	$	0.001	Jun-2015	$	12.40		5,832,685		5,788,878		71,759		135,682
Series H	$	0.001	Feb-2017	$	12.40		5,949,499		3,805,567		47,174		89,074
							16,572,792		14,376,272	$	196,528	$	353,300

(1) The shares authorized, issued and outstanding do not reflect any anti-dilution provisions of Series C, Series D, Series E and Series F as a result of the Series G financing.

Summary Of Common Stock Equivalent Of Preferred Stock Due To Anti Dilution Provisions

The following table shows the common stock equivalent of preferred stock which was converted as a result of the anti-dilution provisions enacted during the Series G financing.


	Fully Diluted on Conversion (1)
Converted Shares	12/31/2020

Series A		355,903
Series B		1,741,399
Series C		1,197,590
Series D		772,963
Series E		429,766
Series F		758,941
Series G		5,788,878
Series H		3,805,567
Total		14,851,007
(1) Excludes preferred stock warrants see Note 11 – Convertible Preferred Stock Warrants.

Summary of Common Stock Reserved For Future Issuance

Common stock reserved for future issuance consisted of the following:


	December 31, 2021		December 31, 2020
Conversion of preferred stock		—		14,851,007
Preferred stock warrants		—		225,945
Common stock warrant		—		1
Stock options issued and outstanding under the 2006, 2015 and 2021 plans		5,754,005		4,201,935
Restricted stock units		640,479		—
Employee stock purchase plan		484,027		—
Total shares of common stock issued or reserved		6,878,511		19,278,888

Stockholders Equity (Deficit) - Summary Of Common Stock Equivalent Of Preferred Stock Due To Anti Dilution Provisions (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Temporary Equity [Line Items]
Redeemable common stock reclassified	4,093,995	14,851,007
Series A Preferred Stock [Member]
Temporary Equity [Line Items]
Redeemable common stock reclassified		355,903
Series B Preferred Stock [Member]
Temporary Equity [Line Items]
Redeemable common stock reclassified		1,741,399
Series C Preferred Stock [Member]
Temporary Equity [Line Items]
Redeemable common stock reclassified		1,197,590
Series D Preferred Stock [Member]
Temporary Equity [Line Items]
Redeemable common stock reclassified		772,963
Series E Preferred Stock [Member]
Temporary Equity [Line Items]
Redeemable common stock reclassified		429,766
Series F Preferred Stock [Member]
Temporary Equity [Line Items]
Redeemable common stock reclassified		758,941
Series G Preferred Stock [Member]
Temporary Equity [Line Items]
Redeemable common stock reclassified		5,788,878
Series H Convertible Preferred Stock
Temporary Equity [Line Items]
Redeemable common stock reclassified		3,805,567

Short-Term Investments

12 Months Ended

Dec. 31, 2021

Short Term Investments [Abstract]

Short-Term Investments

Note 3 – Short-Term Investments

Short-term investments, principally U.S. Treasury bills, are available-for-sale and consisted of the following (in thousands):


	As of December 31, 2021
	Amortized Cost		Unrealized Loss, Net			Estimated Fair Value
Government securities	$	134,980	$	(9	)	$	134,971

	As of December 31, 2020
	Amortized Cost		Unrealized Loss, Net			Estimated Fair Value
Government securities	$	54,983	$	(2	)	$	54,981

All available-for-sale securities held as of December 31, 2021and 2020 had a maturity of less than one year. The Company has classified all marketable securities, regardless of maturity, as short-term investments based upon the Company’s ability and intent to use any and all of those marketable securities to satisfy the Company’s liquidity requirements.

Stock-Based Compensation Expense - Summary of Non-Vested Restricted stock unit Activities (Details) - Restricted Stock Units (RSUs) [Member]	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares, beginning balance \| shares	0
Number of Options, Granted \| shares	657,729
Number of shares, vested \| shares	0
Number of shares, forfeited \| shares	(17,250)
Unvested at December 31, 2021 \| shares	640,479
Weighted average fair value, beginning balance \| $ / shares	$ 0
Weighted Average Grant Date Fair Value, Options Granted \| $ / shares	15.46
Weighted average fair value, vested \| $ / shares	0
Weighted average fair value, forfeited \| $ / shares	15.38
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price \| $ / shares	$ 15.46

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on recurring basis and the fair value hierarchy of the valuation techniques


	As of December 31, 2021
	Level 1		Level 2		Level 3		Total
Assets:
Money market securities	$	21,390	$	—	$	—	$	21,390
Government securities		—		134,971		—		134,971
Total assets at fair value	$	21,390	$	134,971	$	—	$	156,361


	As of December 31, 2020
	Level 1		Level 2		Level 3			Total
Assets:
Money market securities	$	11,822	$	—	$	—		$	11,822
Government securities		—		54,981		—			54,981
Total assets at fair value	$	11,822	$	54,981	$	—		$	66,803
Liabilities:
Common stock warrant liability	$	—	$	—	$	(5,018	)	$	(5,018	)
Redeemable convertible preferred stock warrant liability		—		—		(3,828	)		(3,828	)
Total liabilities at fair value	$	—	$	—	$	(8,846	)	$	(8,846	)

Schedule of estimated fair value for the warrant liabilities measured using significant unobservable inputs

The following table sets forth changes in the estimated fair values for the Company’s warrant liabilities measured using significant unobservable inputs (in thousands):


	Year ended December 31,
	2021			2020
Beginning of period	$	8,846		$	71,881
Exercise of preferred stock warrants		(1,111	)		(24	)
Expiration of common stock warrant		(5,018	)		—
Change in fair value of common stock warrant		—			(64,628	)
Change in fair value of preferred stock warrants		(2,717	)		1,617
End of period	$	—		$	8,846

Summary of Accounting Policies - Schedule of Revenue from Contracts with Customer (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Disaggregation Of Revenue [Line Items]
Revenue from contracts with customers	$ 22,593	$ 14,678
L D D
Disaggregation Of Revenue [Line Items]
Revenue from contracts with customers	13,774	10,159
RxLAL
Disaggregation Of Revenue [Line Items]
Revenue from contracts with customers		4,256
Service Warranty Service Contracts And Accessories
Disaggregation Of Revenue [Line Items]
Revenue from contracts with customers	656	$ 263
L A L
Disaggregation Of Revenue [Line Items]
Revenue from contracts with customers	$ 8,163

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Property and Equipment - Schedule of property and equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Total property and equipment	$ 27,562	$ 25,660
Less: Accumulated depreciation and amortization	(16,345)	(12,373)
Property, Plant and Equipment, Net	11,217	13,287
Machinery and Equipment [Member]
Property Plant And Equipment [Line Items]
Total property and equipment	12,421	11,153
Leasehold Improvements [Member]
Property Plant And Equipment [Line Items]
Total property and equipment	10,334	10,152
Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Total property and equipment	1,118	1,474
Computer hardware and software [Member]
Property Plant And Equipment [Line Items]
Total property and equipment	1,536	1,101
Production molds [Member]
Property Plant And Equipment [Line Items]
Total property and equipment	1,268	867
Furniture and Fixtures [Member]
Property Plant And Equipment [Line Items]
Total property and equipment	853	855
Right-of-use equipment [Member]
Property Plant And Equipment [Line Items]
Total property and equipment	$ 32	$ 58

Term Loan - Additional Information (Details) - USD ($)	3 Months Ended	10 Months Ended	12 Months Ended
Term Loan - Additional Information (Details) - USD ($)	Mar. 31, 2022	Oct. 31, 2022	Oct. 31, 2023	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2021	Mar. 31, 2021	Oct. 29, 2020
Debt Instrument [Line Items]
Percentage of revenue of the annual operating budget				50.00%
Proceeds from initial public offering				$ 119,582,000	$ 0
Debt instrument increase in interest rate, percentage				0.16%
Debt Instrument, additional interest				5.00%
Term Loan Description				The Term Loan requires 36 months of interest-only payments, followed by 23-months of amortization. If the Company is in compliance with the Performance to Plan covenant through October 31, 2023, the interest-only period is extended by 12 months, and the amortization period is reduced by 11 months. Payments are due on the first day of each month in arrears. All unpaid amounts under the Term Loan mature on October 1, 2025.
Additional Fee Percentage				5.00%
Additional Fee, Amount				$ 1,250,000
Loan, Description				As the loan was not fully prepaid by December 31, 2021, the Company became subject to an additional fee (the “Exit Fee”). The fee is 3% of the original draw amount if prepaid between January 1, 2022 and October 31, 2022 ($750,000), 4% if prepaid between November 1, 2022 and October 31, 2023 ($1.0 million) and 5% ($1.25 million) if paid subsequently, including at maturity.
Interest rate, percentage				9.25%	9.25%
LIBOR
Debt Instrument [Line Items]
professional service fees				$ 819,000
Forecast
Debt Instrument [Line Items]
Additional Fee Percentage		3.00%	4.00%
Additional Fee, Amount		$ 750,000	$ 1,000,000.0
Wall Street Journal Prime Rate
Debt Instrument [Line Items]
Debt instrument increase in interest rate, percentage				7.00%
LIBOR
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage				9.25%
LIBOR \| Wall Street Journal
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage				9.09%
LIBOR \| Wall Street Journal Prime Rate
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage				10.25%
Term Loan
Debt Instrument [Line Items]
Debt instrument face amount								$ 25,000,000.0
Proceeds from initial public offering				$ 70,000,000.0
Term loan additional borrowing						$ 10,000,000.0	$ 5,000,000.0
Available additional borrowings				$ 10,000,000.0
Effective Interest Rate On Borrowings Term Loan				10.90%	11.31%
Term Loan \| Forecast
Debt Instrument [Line Items]
Available additional borrowings	$ 10,000,000.0

Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Operating Leases
2022	$ 1,976
2023	1,683
2024	1,456
2025	951
2026	79
Total lease payments	6,145
Less: imputed interest	1,011
Total lease liabilities	5,134
Finance Leases
2022	23
2023	18
2024	0
2025	0
2026	0
Total lease payments	41
Less: imputed interest	4
Total lease liabilities	$ 37

Stockholders Equity (Deficit) - Additional Information (Details) - $ / shares

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Jul. 29, 2021

Jul. 28, 2021

Dec. 31, 2019

Class Of Stock [Line Items]

Common stock, authorized (in shares)

900,000,000

Common stock issued (in shares)

27,366,746

Common stock outstanding (in shares)

27,366,746

Preferred stock, shares authorized

100,000,000

16,572,792

Preferred Shares Issued

Preferred stock par value per share

$ 0.001

Common stock par or stated value per share

$ 0.001

Preferred stock, shares outstanding

14,376,272

^[1]

Aggregate shares of common stock

14,850,993

14,725,309

Number of converted shares of common stock

100,261

Redeemable common stock reclassified

4,093,995

14,851,007

Common stock after reclassification of redeemable common stock

4,093,995

Common Stock

Class Of Stock [Line Items]

Common stock, authorized (in shares)

900,000,000

24,545,966

900,000,000

Common stock issued (in shares)

27,366,746

3,813,450

Common stock outstanding (in shares)

27,366,746

3,813,450

Common stock par or stated value per share

$ 0.001

Stock Issued During Period, Value, New Issues

8,248,549

Redeemable common stock reclassified

14,951,254

Series H Convertible Preferred Stock

Class Of Stock [Line Items]

Preferred stock, shares authorized

5,949,499

Preferred stock par value per share

$ 0.001

Common stock par or stated value per share

$ 12.40

Preferred stock, shares outstanding

^[1]

3,805,567

Warrants exercised

225,945

Number of converted shares of common stock

225,945

100,261

Redeemable common stock reclassified

3,805,567

Convertible Preferred Stock [Member]

Class Of Stock [Line Items]

Preferred stock, shares authorized

100,000,000

Preferred stock par value per share

$ 0.001

Preferred stock, shares outstanding

14,376,272

Redeemable common stock reclassified

(14,476,533)

[1]	The shares authorized, issued and outstanding do not reflect any anti-dilution provisions of Series C, Series D, Series E and Series F as a result of the Series G financing.

Term Loan - Annual Principal Payments Due Under the Term Loan (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
2022	$ 0
2023	1,739
2024	20,870
2025	17,391
2026	0
Total	40,000
Less: unamortized issuance costs and exit fee	(240)
Term loan, net	$ 39,760	$ 24,399

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Consolidated Statements of Cash Flows (Parenthetical) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Statement Of Cash Flows [Abstract]
Redeemable common stock reclassified	4,093,995	14,851,007
Common stock after reclassification of redeemable common stock	4,093,995

Stock-Based Compensation Expense - Additional Information (Details) - USD ($) $ in Millions					12 Months Ended
	Jan. 03, 2022	Aug. 03, 2021	Jul. 30, 2021	Jul. 28, 2021	Dec. 31, 2021	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Conversion of preferred stock					6,878,511	19,278,888
Common stock issued (in shares)					27,366,746
Executive Officers and Non-Employee Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period			640,567
Share-based Compensation, Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-Based Compensation, Terms of Award					Stock option awards are generally granted with an exercise price of no less than 100% of estimated fair market value on the date of grant. Time based awards generally vest over four years as follows: one fourth of the total number of shares vest and become exercisable on the one-year anniversary; 1/48th of the total number of shares subject to the option vest and become exercisable on each monthly anniversary thereafter for the remaining three years.
Stock-Based Compensation, Vesting period					4 years
Share-based Compensation, Option [Member] \| Executive Officers and Non-Employee Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period			622,990
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested at December 31, 2021					640,479
Restricted Stock Units (RSUs) [Member] \| Executive Officers and Non-Employee Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-Based Compensation, Vesting period	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	19,196	40,134	17,577
Maximum \| Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-Based Compensation, Vesting period		3 years	4 years
Minimum [Member] \| Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-Based Compensation, Vesting period		1 year	1 year
2021 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock available for issuance				2,420,135
Common stock issued (in shares)				7,260,406
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum				4.00%
Total unrecognized expense related to unvested stock options					$ 8.8
Weighted average period for recognition of expenses					3 years 6 months
2021 Plan \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Conversion of preferred stock				4,569,530
2021 Employee Stock Purchase Plan \| Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock available for issuance				484,027
Conversion of preferred stock				1,452,081
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum				1.00%
2021 Employee Stock Purchase Plan \| Maximum [Member] \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum				85.00%
The Calhoun Vision, Inc. 2015 Equity Incentive Plan and the Calhoun Vision, Inc. 2006 Stock Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Intrinsic Value of Vested Options					$ 14.7	$ 26.2
Intrinsic Value of Outstanding Options					14.7	26.4
Total Cash Received from the Exercise of Stock Options					1.6	1.0
Total Fair Value Less Strike Price of Stock Options Exercised					$ 4.0	$ 2.8
Unvested at December 31, 2021					2,437,649	1,177,165
Total unrecognized expense related to unvested stock options					$ 20.1	$ 9.8
Weighted average period for recognition of expenses					3 years	2 years 10 months 24 days

Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Lessee Lease Description [Line Items]
Finance lease cost	$ 5	$ 14
Cost of sales [Member]
Lessee Lease Description [Line Items]
Operating lease cost	14	13
Research and Development [Member]
Lessee Lease Description [Line Items]
Operating lease cost	297	180
Finance lease cost	0	115
Selling, General and Administrative [Member]
Lessee Lease Description [Line Items]
Operating lease cost	1,608	1,544
Finance lease cost	$ 25	$ 44

Term Loan

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Term Loan

Note 8 – Term Loan

On October 29, 2020, the Company entered into a loan facility (“Term Loan”) with an initial draw of $25.0 million. Proceeds were used to help fund the Company’s ongoing operations. In March 2021, the Company drew an additional $5.0 million from the facility for the purpose of funding ongoing operations. In June 2021, the Company drew an additional $10.0 million from the facility for the purpose of funding ongoing operations. Another $10.0 million of the term-loan facility was available for additional draws during 2021, which were not borrowed and $10.0 million is to be available in the first quarter of 2022, if the Company reaches certain sales milestones.

The Term Loan is secured by substantially all of the Company’s assets, including a negative lien on the Company’s intellectual property assets. The Company is subject to various standard covenants, such as quarterly reporting, annual audits, submission of annual projections and limitations on dividends, further investments and indebtedness. The Term Loan also contains a covenant (“Performance to Plan”) that provides that, beginning on March 31, 2022 and measured monthly, the Company must achieve trailing twelve-month revenue equal to or greater than 50% of the Company’s annual operating budget as approved by the Company’s Board of Directors and the lender. In July 2021, the Company completed its initial public offering with greater than $70.0 million in proceeds, which allowed the Company to continue either the Performance to Plan covenant or may replace it with a positive lien on its intellectual property.

Interest for all borrowings under the Term Loan is determined as the greater of (1) 9.25% or (2) 9.09% plus the greater of 30-day LIBOR published in the Wall Street Journal and 0.16%. The Company may elect an interest rate equal to 10.25% plus the greater of (1) the Wall Street Journal Prime rate or (2) 7%. The interest rate resets monthly on the last day of the month prior to the month in which interest accrues, and an actual/360-day convention applies. If the Company is considered to be in default as defined by the Term Loan, additional interest of 5% applies. The LIBOR rate is subject to change to another basis, presently undetermined, when LIBOR ceases to exist.

The Term Loan requires 36 months of interest-only payments, followed by 23-months of amortization. If the Company is in compliance with the Performance to Plan covenant through October 31, 2023, the interest-only period is extended by 12 months, and the amortization period is reduced by 11 months. Payments are due on the first day of each month in arrears. All unpaid amounts under the Term Loan mature on October 1, 2025.

The Term Loan is prepayable at any time without penalty; however, the loan must be prepaid in full or in specific increments, and amounts prepaid may not be subsequently reborrowed. The loan may also be accelerated by the lender in the event of a default.

As the loan was not fully prepaid by December 31, 2021, the Company became subject to an additional fee (the “Exit Fee”). The fee is 3% of the original draw amount if prepaid between January 1, 2022 and October 31, 2022 ($750,000), 4% if prepaid between November 1, 2022 and October 31, 2023 ($1.0 million) and 5% ($1.25 million) if paid subsequently, including at maturity. The Exit Fee is being accreted to the carrying value of the debt as a debt premium and interest expense over the life of the loan using the effective interest method. Third-party professional service fees totaling $819,000 were incurred by the lender and the Company that are directly attributable to execution of the Term Loan transaction. These issuance costs have been recorded as a discount to the carrying amount of the debt and are being amortized to interest expense over the effective term of the debt using the effective interest method.

As of December 31, 2021, annual principal payments due under the Term Loan were as follows (in thousands):


Year Ended December 31,
2022	$	—
2023		1,739
2024		20,870
2025		17,391
2026		—
Total		40,000
Less: unamortized issuance costs and exit fee		(240	)
Term loan, net	$	39,760

During 2021 and 2020, cash interest paid for all borrowings under the Term Loan was 9.25%. The effective interest rate for the year ended December, 31 2021 and 2020 was 10.90% and 11.31%, respectively. As of December 31, 2021 and 2020, the Company was in compliance with all covenants.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details