Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.22.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Summary of Allowance For Doubtful Accounts

The following presents the changes in the balance of the Company’s allowance for doubtful accounts:

 

 

 

Year Ended December 31,

 

(in thousands)

 

2021

 

 

2020

 

Balance at beginning of period

 

$

1,070

 

 

$

1,038

 

Additions

 

 

709

 

 

 

834

 

Write – offs

 

 

(312

)

 

 

(257

)

Recoveries

 

 

(446

)

 

 

(545

)

Balance at end of period

 

$

1,021

 

 

$

1,070

 
Summary of Fair Value Hierarchy of The Valuation

The following table presents information about the Company’s assets that are measured at fair value as of December 31, 2021 and 2020, and indicates the fair value hierarchy of the valuation:

 

 

 

Fair Value Measurements

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds included in cash and cash
   equivalents

 

$

286,890

 

 

$

—

 

 

$

—

 

 

$

286,890

 

Contingent earnout liability

 

 

—

 

 

 

—

 

 

 

59,722

 

 

 

59,722

 

Private placement warrant liability

 

 

—

 

 

 

—

 

 

 

2,646

 

 

 

2,646

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds included in cash and cash
   equivalents

 

$

56,907

 

 

$

—

 

 

$

—

 

 

$

56,907

 

SVB warrant liability

 

 

—

 

 

 

—

 

 

 

545

 

 

 

545

 
Summary of Changes in Fair Value of the Derivative Warrant Liabilities

The Company remeasures its Common Stock Warrants (as defined below) and Private Placement Warrants (as defined below) at fair value at each reporting period using Level 3 inputs via the Black-Scholes option-pricing model and Binomial Lattice Model, respectively. The valuation of the earnout shares is based on a Monte Carlo simulation. The significant assumptions used in preparing the above models are disclosed in Note 12 Stock Warrants and Note 11 Earnout. All Silicon Valley Bank ("SVB") warrants were exercised in June 2021. There were no transfers between levels during the periods presented.

 

(in thousands)

 

Contingent
Earnout
Liability

 

 

Private
Placement
Warrant
Liability

 

 

SVB Warrant
Liability

 

Fair Value as of January 1, 2020

 

$

—

 

 

$

—

 

 

$

370

 

Change in fair value

 

 

—

 

 

 

—

 

 

 

175

 

Fair Value as of December 31, 2020

 

$

—

 

 

$

—

 

 

$

545

 

 

 

 

 

 

 

 

 

 

 

Fair Value as of January 1, 2021

 

$

—

 

 

$

—

 

 

$

545

 

Recognition of liability acquired as part of the Merger

 

 

123,129

 

 

 

5,702

 

 

 

—

 

Change in fair value

 

 

(63,407

)

 

 

(3,056

)

 

 

1,248

 

Exercise of common stock warrants

 

 

—

 

 

 

—

 

 

 

(1,793

)

Fair Value as of December 31, 2021

 

$

59,722

 

 

$

2,646

 

 

$

—

 
Summary of Property and Equipment Depreciated

The cost of property and equipment is depreciated based upon the following asset lives:

 

Asset Classification

 

Estimated Useful Life

 

Machinery and equipment

5 years

Leasehold improvements

Shorter of estimated useful life or remaining lease term

Computer equipment

3 years

Computer software

3 years

Furniture and fixtures

3 years
Summary of Balance of The Company's Warranty Reserve

Warranty reserves are included within accrued expenses on the consolidated balance sheets. The following table presents changes in the balance of the Company’s warranty reserve:

 

 

Year Ended December 31,

 

(in thousands)

2021

 

 

2020

 

Balance at beginning of period

$

564

 

 

$

1,260

 

Additions to warranty reserve

 

529

 

 

 

821

 

Claims fulfilled

 

(435

)

 

 

(882

)

Change in estimate related to pre-existing warranties

 

—

 

 

 

(635

)

Balance at end of period

$

658

 

 

$

564