Revenue and Financial Performance - Total revenue for Q2 2024 was $12.636 million, a 5.2% increase from $12.012 million in Q2 2023[13] - Product revenue for Q2 2024 was $9.534 million, a 1.7% increase from $9.377 million in Q2 2023[13] - Lease revenue for Q2 2024 was $1.952 million, a 15.4% increase from $1.691 million in Q2 2023[13] - Service revenue for Q2 2024 was $1.150 million, a 21.8% increase from $944,000 in Q2 2023[13] - Total product and service revenue for Q2 2024 was $10,684 thousand, with the U.S. contributing $7,679 thousand[38] - Total product and service revenue for the first six months of 2024 was $19,325 thousand, compared to $16,944 thousand in the same period in 2023[38] - Lease revenue for the six months ended June 30, 2024, was $3,899 thousand, up from $3,320 thousand in the same period in 2023[56] - Revenue from products for the three months ended June 30, 2024, was $3 million, compared to $0 in the same period in 2023[82] Net Loss and Expenses - Net loss for Q2 2024 was $9.048 million, compared to $8.753 million in Q2 2023[13] - Net loss for June 2024 was $11.2 million, compared to $13.025 million in June 2023, showing a reduction in losses[17] - Net loss attributable to common stockholders for the three months ended June 30, 2024, was $9.043 million, compared to $8.753 million in the same period in 2023[85] - Basic and diluted net loss per share for the three months ended June 30, 2024, was $0.79, compared to $0.81 in the same period in 2023[85] - Total cost of revenue for Q2 2024 was $5.823 million, an 11.0% increase from $5.251 million in Q2 2023[13] - Selling, general and administrative expenses for Q2 2024 were $6.784 million, a 13.6% decrease from $7.854 million in Q2 2023[13] - Research and development expenses for Q2 2024 were $1.348 million, a 10.1% decrease from $1.499 million in Q2 2023[13] - Intangible assets impairment for Q2 2024 was $3.729 million, compared to $0 in Q2 2023[13] - The Company recorded an impairment of intangible assets of $3,943 thousand related to the phacoemulsification component in the ALLY System[56] - Amortization expense for the six months ended June 30, 2024, was $506 thousand, compared to $551 thousand in the same period in 2023[57] Cash Flow and Liquidity - Cash and cash equivalents decreased to $8.287 million as of June 30, 2024, from $20.621 million as of December 31, 2023[14] - Net cash used in operating activities for June 2024 was $9.085 million, slightly higher than $8.84 million in June 2023[17] - Purchase of investments in June 2024 amounted to $6.115 million, with no such activity in June 2023[17] - Proceeds from issuance of redeemable convertible preferred stock in June 2023 were $14.035 million, with no such activity in June 2024[17] - Cash paid for taxes in the first six months of 2024 was $22,000, compared to $18,000 in the same period of 2023[18] - Cash, cash equivalents, and investments totaled $15.4 million as of June 30, 2024, primarily held in interest-bearing accounts, money market funds, and U.S. treasury bills[142] Balance Sheet and Equity - Accumulated deficit increased to $123.091 million as of June 30, 2024, from $114.048 million at the end of March 2024[19] - Total stockholders' equity decreased to $23.645 million as of June 30, 2024, from $31.835 million at the end of March 2024[19] - The company's accumulated deficit as of June 30, 2024, is $123,091 thousand[22] - Accounts receivable, net, as of June 30, 2024, was $5,893 thousand, up from $4,001 thousand at the end of 2023[39] - Deferred revenue, current, as of June 30, 2024, was $1,414 thousand, compared to $1,349 thousand at the end of 2023[39] - Inventory balances increased from $15,689 thousand at December 31, 2023, to $17,933 thousand at June 30, 2024, driven by growth in finished goods and raw materials[55] - Total accrued liabilities decreased from $5,717 thousand at December 31, 2023, to $4,262 thousand at June 30, 2024, primarily due to lower compensation accruals[58] Investments and Financial Instruments - Money market funds decreased from $11,171 million as of December 31, 2023, to $5,319 million as of June 30, 2024[51][50] - U.S. treasury bills decreased from $5,942 million as of December 31, 2023, to $2,497 million as of June 30, 2024[51][50] - Warrant derivative liabilities increased from $8,457 million as of December 31, 2023, to $11,885 million as of June 30, 2024[51][50] - The fair value of the Company's financial assets as of June 30, 2024, totaled $12,479 thousand, with unrealized losses of $6 thousand[53] - Total warrant liabilities increased from $8,457 thousand at December 31, 2023, to $11,885 thousand at June 30, 2024, reflecting a change in value of $3,428 thousand[54] Stock-Based Compensation and Equity Plans - Stock-based compensation expense for June 2024 was $1.335 million, down from $3.55 million in June 2023[17] - The Company has reserved a total of 5,550 shares of common stock for issuance under the 2020 Incentive Award Plan as of June 30, 2024[70] - The 2024 Employment Inducement Incentive Award Plan reserves a maximum of 100 shares of common stock for issuance[71] - As of June 30, 2024, the Company had 1,882 stock options outstanding with a weighted average exercise price of $5.22 and a weighted average remaining contractual term of 7.8 years[73] - The total fair value of options vested during the six months ended June 30, 2024 was approximately $1,001[73] - The Company has $1,647 in unrecognized compensation expense related to stock options, to be recognized over a weighted average period of 1.9 years[73] - Total fair value of restricted stock units vested during the three months ended June 30, 2024, was approximately $215, and $494 for the six months ended June 30, 2024[79] - Unrecognized compensation expense related to restricted stock units and performance stock units as of June 30, 2024, was approximately $2,247, expected to be recognized over a weighted-average period of 2.2 years[79] Regulatory and Market Developments - The company's ALLY System received regulatory clearance in India, Taiwan, and other countries, with submissions for certification in South Korea and China[21] - The company expects annual revenue and selling, general, and administrative expenses to increase due to higher ALLY System placements[23] Accounts Receivable and Credit Losses - Accounts receivable allowance for credit losses decreased from $62 million as of December 31, 2023, to $56 million as of June 30, 2024, with a provision change of $(6) million[40] - Notes receivable interest income increased from $20 million in Q2 2023 to $27 million in Q2 2024, and from $32 million in H1 2023 to $56 million in H1 2024[40] - Notes receivable allowance for credit losses decreased from $33 million as of December 31, 2023, to $29 million as of June 30, 2024, with a provision change of $(4) million[41] - No single customer accounted for more than 10% of accounts receivable as of June 30, 2024[143] Contract Assets and Liabilities - Contract assets decreased from $982 million as of December 31, 2023, to $626 million as of June 30, 2024, with $671 million recognized and $(977) million in payments received[42] - Deferred revenue and contract liabilities decreased from $1,919 million as of December 31, 2023, to $1,674 million as of June 30, 2024, with $956 million in billings not yet recognized and $(987) million recognized as revenue[43] - The company expects to recognize $30,805 million in revenue from unsatisfied performance obligations, with $4,415 million expected by December 31, 2024[45] Other Financial Metrics - Transfer from inventories to equipment under lease, net, was $3.367 million in the first six months of 2024, up from $1.281 million in the same period of 2023[18] - The Company allocated $5,605 thousand of the $20,000 thousand gross proceeds from the Private Placement to warrant liabilities[60] - The risk-free interest rate used in the Black-Scholes model for warrant liabilities increased from 3.8% at December 31, 2023, to 4.4% at June 30, 2024[61] - LENSAR has a minimum purchase obligation of approximately $2,242 thousand over the next 15 months under various supply agreements[64] - The Company received $1,368 as a reduction of selling, general and administrative expenses due to the Employee Retention Credit (ERC) in the quarter ended September 30, 2023[65] - The Company sold 20 shares of Series A Redeemable Convertible Preferred Stock for $20,000 in May 2023, which is convertible into 7,940 shares of common stock[67] - Offering costs of $901 were allocated, with $253 to general and administrative expenses and $648 to Series A Redeemable Convertible Preferred Stock[68] - Risk-free interest rate for the three months ended June 30, 2024, ranged from 4.3% to 4.6%, compared to 3.5% to 3.9% in the same period in 2023[75] - Expected volatility for stock-based compensation awards was 59% for the three months ended June 30, 2024, down from 70% in the same period in 2023[75]
LENSAR(LNSR) - 2024 Q2 - Quarterly Report