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Organization and Description of Business
9 Months Ended
Sep. 30, 2016
Accounting Policies [Abstract]  
Organization and Description of Business

1. Organization and Description of Business

iRhythm Technologies, Inc. or the “Company”, was incorporated in the state of Delaware in September 2006. The Company is a digital healthcare company redefining the way cardiac arrhythmias are clinically diagnosed by combining wearable biosensing technology with cloud-based data analytics and machine-learning capabilities. The Company commenced commercial introduction of its products in the United States in 2009 following clearance by the U.S. Food and Drug Administration.

The Company’s headquarters are located in San Francisco, California, and the Company has manufacturing facilities in Cypress, California, and clinical centers in Lincolnshire, Illinois and Houston, Texas. In 2016 the Company formed a wholly-owned subsidiary in the United Kingdom. The Company manages its operations as a single operating segment. Substantially all of the Company’s assets are maintained in the United States. The Company derives substantially all of its revenue from sales to customers in the United States, based upon the billing address of the customer.

Reverse Stock Split

On October 4, 2016, the Company’s board of directors approved an amendment to the Company’s amended and restated certificate of incorporation to effect a reverse split of the Company’s issued and outstanding common stock at a 1-for- 5.882698 ratio, which was effected on October 5, 2016. The par value and authorized shares of common stock and convertible preferred stock were not adjusted as a result of the reverse split. All issued and outstanding common stock, options to purchase common stock and per share amounts contained in these condensed consolidated financial statements have been retroactively adjusted to reflect the reverse stock split for all periods presented.

Initial Public Offering

On October 19, 2016, the Company’s registration statement on Form S-1 (Registration Nos. 333-213773 and 333-214179) relating to its initial public offering, or the IPO, of common stock became effective. The Company issued 7,238,235 shares of its common stock at a price of $17.00 per share. The Company received $110.9 million, net of underwriting discounts, commissions and offering costs. In addition, upon the IPO, all outstanding shares of the convertible preferred stock converted into 13,343,981 shares of common stock.