Revision of Prior Period Financial Statements

12 Months Ended

Dec. 31, 2022

Accounting Changes and Error Corrections [Abstract]

Revision of Prior Period Financial Statements

Revision of Prior Period Financial StatementsAs discussed in Note 1, in preparing the condensed consolidated financial statements as of and for the three and six months ended June 30, 2022, the Company identified errors in its previously issued financial statements whereby (a) certain expenses that were cost of subscription revenue related and cost of service revenue related were inaccurately classified as sales and marketing expenses on the consolidated statements of operations and comprehensive loss, (b) certain equipment under lease or held for lease was inaccurately classified as inventory on the consolidated balance sheets and a portion of the cash outflows related to the equipment under lease or held for lease were misclassified between operating and investing cash flows on the consolidated statements of cash flows, and (c) the vesting of warrants related to the Business Development Agreement disclosed in Note 16 were not accounted for accurately. The identified errors impacted the Company's previously issued 2020 annual financial statements, 2021 quarterly and annual financial statements, and quarterly financial statements for the three months ended March 31, 2022. The Company has made adjustments to the prior period amounts presented in these financial statements accordingly. Additionally, the Company has made adjustments to correct for other previously identified immaterial errors. The Company evaluated the errors and determined that the related impacts were not material to any previously issued annual or interim financial statements. The impacts of the revisions to the quarterly periods ending June 30, 2021 and September 30, 2021 are presented in the Company's Quarterly Reports on Form 10-Q for the periods ending June 30, 2022 and September 30, 2022, respectively. The impact of the revisions to the quarterly periods ending March 31, 2022 and March 31, 2021 are presented in Note 22. The impact of the revisions to the periods presented in this Annual Report on Form 10-K are as follows (in thousands):

Revised Consolidated Balance Sheets

	December 31, 2021
	As Previously Reported		Adjustment		As Revised
Assets
Current assets:
Cash and cash equivalents	$	307,492	$	—	$	307,492
Restricted cash	400		—		400
Accounts receivable, net	6,477		—		6,477
Inventory	5,140		(2,250)		2,890
Current portion of contract assets	1,459		—		1,459
Current portion of commission asset	1,645		—		1,645
Prepaid expenses and other current assets	11,047		(290)		10,757
Total current assets	333,660		(2,540)		331,120
Restricted cash, noncurrent	275		—		275
Contract assets, noncurrent	3,418		—		3,418
Commission asset, noncurrent	3,719		—		3,719
Property and equipment, net	21,592		2,191		23,783
Other assets	401		141		542
Total assets	$	363,065	$	(208)	$	362,857
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	6,363	$	(318)	$	6,045
Accrued expenses and other current liabilities	9,183		368		9,551
Current portion of deferred revenue	6,690		(91)		6,599
Current portion of deferred rent	135		—		135
Current portion of long-term debt	2,000		—		2,000
Total current liabilities	24,371		(41)		24,330
Deferred revenue, noncurrent	2,475		—		2,475
Deferred rent, noncurrent	333		—		333
Long-term debt, noncurrent	7,945		—		7,945
Contingent earn-out liability	20,809		397		21,206
Contingently issuable common stock liability	5,264		—		5,264
Public warrant liability	11,030		—		11,030
Total liabilities	72,227		356		72,583
Stockholders’ equity:
Convertible preferred stock	—		—		—
Common stock	14		—		14
Additional paid-in capital	395,563		501		396,064
Accumulated deficit	(104,739)		(1,065)		(105,804)
Stockholders’ equity	290,838		(564)		290,274
Total liabilities and stockholders’ equity	$	363,065	$	(208)	$	362,857

	December 31, 2020
	As Previously Reported		Adjustment		As Revised
Assets
Current assets:
Cash and cash equivalents	$	4,704	$	—	$	4,704
Accounts receivable, net	1,401		—		1,401
Inventory	2,742		(1,156)		1,586
Current portion of commission asset	562		—		562
Prepaid expenses and other current assets	900		641		1,541
Total current assets	10,309		(515)		9,794
Commission asset, noncurrent	1,730		—		1,730
Property and equipment, net	9,316		752		10,068
Other assets	—		173		173
Total assets	$	21,355	$	410	$	21,765
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	4,437	$	—	$	4,437
Accrued expenses and other current liabilities	3,727		484		4,211
Current portion of deferred revenue	3,717		45		3,762
Current portion of deferred rent	11		—		11
Current portion of financing obligations	227		—		227
Total current liabilities	12,119		529		12,648
Deferred revenue, noncurrent	480		—		480
Financing obligation, noncurrent	132		—		132
Long-term debt, noncurrent	16,432		—		16,432
Derivative Liability	1,000		—		1,000
Common stock warrant liability	1		—		1
Total liabilities	30,164		529		30,693
Stockholders’ equity:
Convertible preferred stock	75,877		—		75,877
Common stock	1		—		1
Additional paid-in capital	9,194		916		10,110
Accumulated deficit	(93,881)		(1,035)		(94,916)
Stockholders’ equity	(84,686)		(119)		(84,805)
Total liabilities and stockholders’ equity	$	21,355	$	410	$	21,765

Revised Consolidated Statements of Operations and Comprehensive Loss

	Year Ended December 31, 2021
	As Previously Reported		Adjustment		As Revised
Revenue:
Product revenue	$	13,917	$	(286)	$	13,631
Subscription revenue	7,855		(52)		7,803
Service revenue	1,920		39		1,959
Total revenue	23,692		(299)		23,393
Cost of revenue:
Cost of product revenue	12,471		(192)		12,279
Cost of subscription revenue	3,644		857		4,501
Cost of service revenue	936		1,648		2,584
Total cost of revenue	17,051		2,313		19,364
Gross profit	6,641		(2,612)		4,029
Operating expenses:
Research and development	11,416		42		11,458
Sales and marketing expense	27,404		(1,305)		26,099
General and administrative	20,013		(144)		19,869
Loss from impairment of property and equipment	1,869		—		1,869
Total operating expenses	60,702		(1,407)		59,295
Loss from operations	(54,061)		(1,205)		(55,266)
Other income (expense), net:
Interest expense, net	(6,095)		27		(6,068)
Interest income	—		—		—
Loss on disposal of property and equipment	(617)		—		(617)
Loss on extinguishment of debt	(12,685)		—		(12,685)
Change in fair value of derivative liability	(1,745)		—		(1,745)
Change in fair value of contingent earn-out liability	46,212		1,148		47,360
Change in fair value of contingently issuable common stock liability	6,406		—		6,406
Change in fair value of public warrant liability	12,606		—		12,606
Change in fair value of common stock warrant liability	(879)		—		(879)
Total other income (expense), net	43,203		1,175		44,378
Net loss	$	(10,858)	$	(30)	$	(10,888)
Weighted average common shares outstanding - basic and diluted	71,662,694		—		71,662,694
Net loss per share - basic and diluted	$	(0.15)	$	—	$	(0.15)

Revised Consolidated Statements of Cash Flows

	Year Ended December 31, 2021
	As Previously Reported		Adjustment		As Revised
Cash flows from operating activities:
Net loss	$	(10,858)	$	(30)	$	(10,888)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,895		—		2,895
Write-off of inventory	2,132		—		2,132
Adjustment to property and equipment for sales type leases	(91)		—		(91)
Loss from impairment of property and equipment	1,869		—		1,869
Loss on disposal of property and equipment	617		—		617
Stock-based compensation	8,511		1,085		9,596
Non-cash interest expense	5,245		—		5,245
Provision recorded for allowance for doubtful accounts	(13)		—		(13)
Loss on extinguishment of debt	12,685		—		12,685
Change in fair value of derivative liability	1,745		—		1,745
Change in fair value of common stock warrant liability	879		—		879
Change in fair value of earn-out liability	(46,212)		(1,148)		(47,360)
Change in fair value of contingently issuable common stock	(6,406)		—		(6,406)
Change in fair value of public warrant liability	(12,606)		—		(12,606)
Changes in operating assets and liabilities
Accounts receivable	(5,063)		—		(5,063)
Inventory	(17,479)		14,043		(3,436)
Commission assets	(3,072)		—		(3,072)
Contract assets	(4,877)		—		(4,877)
Other assets	—		32		32
Prepaid expenses and other current assets	(10,079)		931		(9,148)
Accounts payable	(7)		772		765
Deferred revenue	4,968		(136)		4,832
Deferred rent	457		—		457
Warranty reserve	(42)		—		(42)
Accrued expenses and other current liabilities	5,174		(2,702)		2,472
Net cash used in operating activities	(69,628)		12,847		(56,781)
Cash flows from investing activities:
Development of internal-use software	(1,028)		—		(1,028)
Purchases of property and equipment	(3,710)		(12,847)		(16,557)
Net cash used in investing activities	(4,738)		(12,847)		(17,585)
Cash flows from financing activities:
Proceeds from exercise of stock options	915		—		915
Proceeds from issuance of common stock from the PIPE Investment	300,000		—		300,000
Proceeds from the closing of the Merger	84,945		—		84,945
Payment of offering costs from the closing of the Merger and PIPE Investment	(34,132)		—		(34,132)
Repayment of financing obligations	(359)		—		(359)
Proceeds from long-term debt, net of issuance costs	31,882		—		31,882
Repayment of principal on long-term debt	(5,422)		—		(5,422)
Net cash provided by financing activities	377,829		—		377,829
Net increase (decrease) in cash, cash equivalents and restricted cash	303,463		—		303,463
Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of period	4,704		—		4,704
Cash, cash equivalents and restricted cash at end of period	$	308,167	$	—	$	308,167
Supplemental disclosure of non-cash activities
Transfer of inventory to property and equipment	$	12,949	$	(12,949)	$	—
Capital expenditures incurred but not yet paid	347		2,589		2,936

Issuance of equity classified warrants	1	(1)	—
Deferred offering costs included in accounts payable	1,932	11	1,943
Conversion of convertible preferred stock to common stock	75,877	—	75,877
Initial fair value of contingent earn-out liability recognized in connection with the closing of the Merger	67,021	—	67,021
Initial fair value of contingently issuable common stock liability recognized in connection with the closing of the Merger	11,670	—	11,670
Conversion of common stock warrants to common stock in connection with the closing of the Merger	880	—	880
Initial fair value of public warrants in connection with the closing of the Merger	23,636	—	23,636