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Convertible Preferred Stock and Equity
9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Convertible Preferred Stock and Equity

NOTE 7. CONVERTIBLE PREFERRED STOCK AND EQUITY

 

Preferred Stock

The Company is authorized to issue 50,000 shares of $0.0001 par value preferred stock. As of September 30, 2023, there are no preferred stock issued or outstanding.

Warrants

As of September 30, 2023, warrants issued as consideration to certain customers to purchase 3,663 shares of Common Stock at $0.01 per share remain outstanding. The warrants vest dependent on the number of installed units, as defined by the warrant agreements, purchased by the customer. The fair value of the vested warrants has been recorded as additional paid-in capital and contra-revenue on the accompanying Consolidated Balance Sheets and Consolidated Statements of Operations and Comprehensive Loss, respectively. During the three months ended September 30, 2022, the Company recorded $51 as contra-revenue in the Consolidated Statement of Operations and Comprehensive Loss related to these warrants. There was no contra-revenue recorded related to these warrants during the three months ended September 30, 2023. During the nine months ended September 30, 2022, the Company recorded $72 as contra-revenue in the Consolidated Statement of Operations and Comprehensive Loss related to these warrants. There was no contra-revenue recorded related to these warrants during the nine months ended September 30, 2023.

As of September 30, 2023, warrants issued to a former investor to purchase 1,874 shares of Common Stock were fully vested and exercised. The warrants represented compensation paid for marketing services provided by the investor and was accounted for using stock-based compensation guidance. The warrants vested based on the number of installed units attained over a measurement period. The warrants fully vested during the three months ended March 31, 2022 and the warrants were exercised during the three months ended June 30, 2022. The Company recorded the associated marketing expense over the service period as the units were installed with an offset to additional paid-in-capital. During the three months ended September 30, 2023 and 2022, the Company did not recognize sales and marketing expense related to these warrants. During the nine months ended September 30, 2022, the Company recognized $217 of sales and marketing expense related to these warrants. No such marketing expense was recorded during the nine months ended September 30, 2023.