hair-10q_20180930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended  September 30, 2018

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number: 001-38238

 

Restoration Robotics, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

06-1681204

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

 

128 Baytech Drive

San Jose, CA

95134

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (408) 883-6888

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes       No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of October 23, 2018, the registrant had 40,676,012 shares of common stock, $0.0001 par value per share, outstanding.

 

 

 

 


 

Table of Contents

 

 

 

Page

Part I.

Financial Information

2

Item 1.

Condensed Consolidated Financial Statements (unaudited)

2

 

Condensed Consolidated Balance Sheets

2

 

Condensed Consolidated Statements of Operations

3

 

Condensed Consolidated Statements of Comprehensive Loss

4

 

Condensed Consolidated Statement of Stockholders’ Equity

5

 

Condensed Consolidated Statements of Cash Flows

6

 

Notes to the Condensed Consolidated Financial Statements

7

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

18

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

26

Item 4.

Controls and Procedures

26

PART II.

OTHER INFORMATION

27

Item 1.

Legal Proceedings

27

Item 1A.

Risk Factors

27

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

59

Item 3.

Defaults Upon Senior Securities

60

Item 4.

Mine Safety Disclosures

60

Item 5.

Other Information

60

Item 6.

Exhibits

61

Signatures

62

 

 

i


 

PART I

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

RESTORATION ROBOTICS, INC.

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except share and per share data)

 

 

 

September 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

ASSETS

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

23,609

 

 

$

23,545

 

Accounts receivable, net of allowance of $839 and $229 as of September 30, 2018 and December 31, 2017, respectively

 

 

6,441

 

 

 

3,864

 

Inventory

 

 

4,446

 

 

 

2,761

 

Prepaid expenses and other current assets

 

 

1,502

 

 

 

1,562

 

Total current assets

 

 

35,998

 

 

 

31,732

 

Property and equipment, net

 

 

1,556

 

 

 

1,138

 

Restricted cash

 

 

83

 

 

 

100

 

Other assets

 

 

100

 

 

 

 

TOTAL ASSETS

 

$

37,737

 

 

$

32,970

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,947

 

 

$

2,044

 

Accrued compensation

 

 

1,423

 

 

 

1,630

 

Other accrued liabilities

 

 

1,671

 

 

 

1,125

 

Deferred revenue

 

 

1,449

 

 

 

1,517

 

Current portion of long-term debt, net of discount of $270 as of December 31, 2017

 

 

 

 

 

7,730

 

Total current liabilities

 

 

8,490

 

 

 

14,046

 

Other long-term liabilities

 

 

558

 

 

 

459

 

Long-term debt, net of discount of $1,454 and $29 as of September 30, 2018 and December 31, 2017

 

 

19,376

 

 

 

5,271

 

TOTAL LIABILITIES

 

 

28,424

 

 

 

19,776

 

Commitments and Contingencies (Note 6)

 

 

 

 

 

 

 

 

Convertible preferred stock, $0.0001 par value; 10,000,000 shares authorized and no shares issued and outstanding as of September 30, 2018 and December 31, 2017

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value; 300,000,000 shares authorized as of September 30, 2018 and December 31, 2017; 40,676,012 and 28,940,282 shares issued and outstanding as of September 30, 2018 and December 31, 2017

 

 

4

 

 

 

3

 

Additional paid-in capital

 

 

194,586

 

 

 

177,757

 

Accumulated other comprehensive loss

 

 

(46

)

 

 

(79

)

Accumulated deficit

 

 

(185,231

)

 

 

(164,487

)

TOTAL STOCKHOLDERS’ EQUITY

 

 

9,313

 

 

 

13,194

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

37,737

 

 

$

32,970

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

2


 

RESTORATION ROBOTICS, INC.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except share and per share data)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Revenue

 

$

4,818

 

 

$

4,177

 

 

$

15,298

 

 

$

15,441

 

Cost of revenue

 

 

2,663

 

 

 

2,474

 

 

 

8,362

 

 

 

9,053

 

Gross profit

 

 

2,155

 

 

 

1,703

 

 

 

6,936

 

 

 

6,388

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

4,398

 

 

 

3,433

 

 

 

13,147

 

 

 

10,736

 

Research and development

 

 

2,008

 

 

 

1,737

 

 

 

6,286

 

 

 

5,579

 

General and administrative

 

 

2,191

 

 

 

1,139

 

 

 

6,159

 

 

 

3,549

 

Total operating expenses

 

 

8,597

 

 

 

6,309

 

 

 

25,592

 

 

 

19,864

 

Loss from operations

 

 

(6,442

)

 

 

(4,606

)

 

 

(18,656

)

 

 

(13,476

)

Other expense, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(631

)

 

 

(492

)

 

 

(1,489

)

 

 

(1,607

)

Other income (expense), net

 

 

12

 

 

 

(1,473

)

 

 

(567

)

 

 

(1,646

)

Total other expense, net

 

 

(619

)

 

 

(1,965

)

 

 

(2,056

)

 

 

(3,253

)

Net loss before provision for income taxes

 

 

(7,061

)

 

 

(6,571

)

 

 

(20,712

)

 

 

(16,729

)

Provision for income taxes

 

 

8

 

 

 

25

 

 

32

 

 

 

50

 

Net loss attributable to common stockholders

 

$

(7,069

)

 

$

(6,596

)

 

$

(20,744

)

 

$

(16,779

)

Net loss per share attributable to common stockholders, basic and diluted

 

$

(0.20

)

 

$

(4.07

)

 

$

(0.67

)

 

$

(10.36

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

 

 

35,007,299

 

 

 

1,620,691

 

 

 

31,054,837

 

 

 

1,620,016

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

3


 

RESTORATION ROBOTICS, INC.

Condensed Consolidated Statements of Comprehensive Loss

(Unaudited)

(in thousands, except share and per share data)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net loss

 

$

(7,069

)

 

$

(6,596

)

 

$

(20,744

)

 

$

(16,779

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative translation adjustment

 

 

(9

)

 

 

26

 

 

 

33

 

 

 

(22

)

Comprehensive loss

 

$

(7,078

)

 

$

(6,570

)

 

$

(20,711

)

 

$

(16,801

)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

4


 

RESTORATION ROBOTICS, INC.

Condensed Consolidated Statement of Stockholders’ Equity

(Unaudited)

(in thousands, except share and per share data)

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Accumulated

Other

Comprehensive

 

 

Accumulated

 

 

Total

Stockholders’

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income (Loss)

 

 

Deficit

 

 

Equity

 

Balance — December 31, 2017

 

28,940,282

 

 

$

3

 

 

$

177,757

 

 

$

(79

)

 

$

(164,487

)

 

$

13,194

 

Issuance of common stock pursuant to stock option exercises of vested options

 

235,730

 

 

 

 

 

 

392

 

 

 

 

 

 

 

 

 

392

 

Stock-based compensation

 

 

 

 

 

 

 

419

 

 

 

 

 

 

 

 

 

419

 

Issuance of common stock warrants pursuant to debt financing

 

 

 

 

 

 

 

404

 

 

 

 

 

 

 

 

 

404

 

Issuance of common stock in connection with our follow-on offering, net of underwriters' commission and offering costs of $1,635

 

11,500,000

 

 

 

1

 

 

 

15,614

 

 

 

 

 

 

 

 

 

15,615

 

Other comprehensive gain

 

 

 

 

 

 

 

 

 

 

33

 

 

 

 

 

 

33

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,744

)

 

 

(20,744

)

Balance — September 30, 2018

 

40,676,012

 

 

$

4

 

 

$

194,586

 

 

$

(46

)

 

$

(185,231

)

 

$

9,313

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

5


 

RESTORATION ROBOTICS, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands, except share and per share data)

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2018

 

 

2017

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net loss

 

$

(20,744

)

 

$

(16,779

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

539

 

 

 

452

 

Amortization of debt issuance costs

 

 

318

 

 

 

440

 

Non-cash loss on extinguishment of debt

 

 

178

 

 

 

 

Stock-based compensation

 

 

419

 

 

 

349

 

Changes in fair value of preferred stock warrant liabilities

 

 

 

 

 

1,618

 

Provision for bad debt

 

 

839

 

 

 

 

Changes in excess and obsolete inventory

 

 

(55

)

 

 

 

Loss on disposal of property and equipment

 

 

41

 

 

 

34

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(3,417

)

 

 

(741

)

Inventory

 

 

(1,631

)

 

 

65

 

Prepaid expenses and other assets

 

 

(40

)

 

 

(2,272

)

Accounts payable

 

 

1,956

 

 

 

1,194

 

Accrued and other liabilities

 

 

253

 

 

 

1,249

 

Deferred revenue

 

 

118

 

 

 

15

 

Net cash used in operating activities

 

 

(21,226

)

 

 

(14,376

)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1,051

)

 

 

(215

)

Net cash used in investing activities

 

 

(1,051

)

 

 

(215

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from convertible notes, net

 

 

 

 

 

5,000

 

Proceeds from issuance of Series C convertible preferred stock, net

 

 

 

 

 

10,209

 

Proceeds from exercised stock options

 

 

392

 

 

 

16

 

Payment of deferred offering costs

 

 

 

 

 

(749

)

Proceeds from follow-on offering, net

 

 

15,615

 

 

 

 

Proceeds from long-term debt, net

 

 

19,584

 

 

 

 

Principal payments on long-term debt

 

 

(13,300

)

 

 

(6,000

)

Net cash provided by financing activities

 

 

22,291

 

 

 

8,476

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

33

 

 

 

(22

)

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

 

47

 

 

 

(6,137

)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period

 

 

23,645

 

 

 

11,906

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period

 

$

23,692

 

 

$

5,769

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$

35

 

 

$

4

 

Interest paid during the period

 

$

1,240

 

 

$

1,185

 

SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:

 

 

 

 

 

 

 

 

Purchase of property and equipment included in accounts payable

 

$

4

 

 

$

 

Discounts and issuance costs in connection with long-term debt

 

$

1,246

 

 

$

 

Issuance of warrants in connection with long-term debt

 

$

404

 

 

$

 

Deferred offering costs included in accounts payable and accrued liabilities

 

$

121

 

 

$

1,474

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

6


 

RESTORATION ROBOTICS, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(in thousands, except share, per share data and percentage)

1. Nature of Operations

Restoration Robotics, Inc. is a medical technology company incorporated in the state of Delaware on November 22, 2002 and headquartered in San Jose, California. The Company develops an image-guided robotic system that enables follicular unit extraction (FUE) for use in the field of hair transplantation and markets the ARTAS® Robotic System in the United States and other countries.  In these notes to the unaudited condensed consolidated financial statements, the “Company,” “Restoration Robotics,” “we,” “us,” and “our” refers to Restoration Robotics, Inc. and its subsidiaries on a consolidated basis.

Initial Public Offering

On October 11, 2017, the Company’s Registration Statement on Form S-1 (File No. 333-220303) relating to the initial public offering (IPO) of its common stock was declared effective by the Securities and Exchange Commission (SEC). Pursuant to such Registration Statement, the Company completed its IPO of 3,897,910 shares of its common stock (inclusive of 322,910 shares of common stock from the subsequent exercise of the over-allotment option granted to the underwriters) at a price of $7.00 per share for aggregate cash proceeds of approximately $22,114, after deducting underwriting discounts and commissions, and offering costs totaling $5,171.

Immediately prior to the closing of the IPO, all outstanding shares of convertible preferred stock converted into 22,671,601 shares of common stock and all the outstanding convertible preferred stock warrants converted into common stock warrants resulting in the reclassification of our preferred stock warrant liabilities to additional paid-in capital. In addition, the principal and accrued interest on the outstanding Convertible Notes converted into 718,184 shares of common stock. The IPO closed on October 16, 2017.

Follow-on Public Offering

On August 16, 2018, the Company closed its follow-on public offering of 10,000,000 shares of its common stock, plus 1,500,000 shares of common stock from the subsequent exercise of the over-allotment option granted to the underwriters. The public offering price of the shares sold was $1.50 per share. The Company received aggregate proceeds of approximately $15.6 million from the follow-on offering, after deducting underwriting discounts and commissions and offering costs totaling $1.6 million. The Company intends to use the net proceeds from this offering (including net proceeds from the underwriters’ exercise of their option to purchase additional shares of common stock) to fund expanded commercialization activities in connection with our recently launched ARTAS® iX System and for working capital and general corporate purposes.

Reverse Stock Split

On September 15, 2017, the Company effected a 1-for-10 reverse stock split of its common stock. Upon the effectiveness of the reverse stock split, (i) every 10 shares of outstanding common stock were combined into one share of common stock, (ii) the number of shares of common stock for which each outstanding option to purchase common stock is exercisable was proportionately decreased on a 1-for-10 basis, (iii) the exercise price of each outstanding option to purchase common stock was proportionally increased on a l-for-10 basis, and (iv) the conversion ratio for each share of outstanding preferred stock which is convertible into our common stock was proportionately reduced on a 1-for-10 basis. All of the outstanding common stock share numbers (including shares of common stock into which our outstanding convertible preferred stock shares are convertible), share prices, exercise prices and per share amounts have been adjusted in these consolidated statements, on a retroactive basis, to reflect this l-for-10 reverse stock split for all periods presented. The par value per share and the authorized number of shares of common stock and convertible preferred stock were not adjusted because of the reverse stock split.

7


 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Liquidity

These condensed consolidated financial statements are prepared on a going concern basis that contemplates the realization of assets and extinguishment of liabilities in the normal course of business. The Company has incurred net operating losses and negative cash flows from operations since inception. As of September 30, 2018, and December 31, 2017, the Company has an accumulated deficit of $185,231 and $164,487 and, as of such dates, and through the date of this filing, does not have sufficient capital to fund its planned operations. Because of the Company’s recurring losses from operations and negative cash flows, the Company’s independent registered public accounting firm included an explanatory paragraph in its report on the Company’s consolidated financial statements as of, and for the year ended, December 31, 2017 that such factors raise substantial doubt about the Company’s ability to continue as a going concern. To continue its operations, the Company must achieve profitable operations and/or obtain additional financing. Until the Company generates revenue at a level to support its cost structure, the Company expects to continue to incur substantial operating losses and net cash outflows. The Company may never become profitable and even if it does attain profitable operations, it may not be able to sustain profitability or positive cash flows on a recurring basis.

The Company will need to raise further capital in the future to service its debt or fund its operations until the time it can sustain positive cash flows. There can be no assurance that the Company will be successful in raising additional capital or that such capital, if available, will be on terms that are acceptable to the Company. If the Company is unable to raise sufficient additional capital, it may be compelled to reduce the scope of its operations and planned capital expenditures or sell certain assets, including intellectual property assets.

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business, and, as such, the condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

Basis of Presentation

The condensed consolidated balance sheet as of September 30, 2018, the condensed consolidated statements of operations and condensed consolidated statements of comprehensive loss for the three and nine months ended September 30, 2018 and 2017 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2018 and 2017 and the condensed consolidated statement of stockholders’ equity for the nine months ended September 30, 2018 are unaudited. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and in the opinion of management, reflect all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company’s condensed consolidated financial statements included in this report. The condensed consolidated financial data disclosed in these notes to the condensed consolidated financial statements related to the three- and nine-month periods are also unaudited. The condensed consolidated results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018, or for any other future annual or interim period. The consolidated balance sheet as of December 31, 2017 included herein was derived from the audited consolidated financial statements as of that date. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its Annual Report filed on Form 10-K for the year ended December 31, 2017, with the SEC on March 5, 2018.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of Restoration Robotics, Inc. and its wholly owned subsidiaries, which are organized in the United States, United Kingdom, Spain, Hong Kong and South Korea. All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions made in the accompanying condensed consolidated financial statements include, but are not limited to revenue recognition, the fair value of common stock, and the recoverability of the Company’s net deferred tax assets and related valuation allowance. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates.

8


 

Reclassification

Accrued compensation, which were previously included in other accrued liabilities in the prior year's condensed consolidated balance sheet have been reclassified to conform to the current period's presentation. The reclassification had no impact on the previously reported consolidated financial statements for the year ended December 31, 2017.

Concentration of Customers

For the three and nine months ended September 30, 2018, no customers accounted for more than 10% of the Company’s revenue. For the three months ended September 30, 2017, two customers accounted for 11% and 12% of the Company’s revenues and no customers accounted for more than 10% of the Company’s revenue for the nine months ended September 30, 2017. As of September 30, 2018, no customers accounted for more than 10% of the Company’s accounts receivable. As of December 31, 2017, two customers accounted for 10% and 11% of the Company’s accounts receivable.

JOBS Act Accounting Election

The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the JOBS Act). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued after the enactment of the JOBS Act until those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it is (i) no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, these condensed consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.

Recently Issued Accounting Standards Not Yet Adopted

In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014‑09, Revenue from Contracts with Customers (Topic 606), as amended by ASU No. 2015-14, ASU No. 2016-08, ASU No. 2016-10, ASU No. 2016-12, and ASU No. 2016-20, collectively, ASU 2014-09. ASU 2014-09 establishes a principle for recognizing revenue upon the transfer of promised goods or services to customers in an amount that reflects the expected consideration received in exchange for those goods or services and provides guidance on the recognition of costs related to obtaining and fulfilling customer contracts. For public entities, this standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. For all other entities, this standard is effective for annual reporting periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted. ASU 2014‑09 may be adopted either retrospectively to each prior period presented (full retrospective method) or with the cumulative effect recognized as of the date of initial application (modified retrospective method). The Company expects to adopt this standard effective January 1, 2019 using the modified retrospective adoption method. The Company’s preliminary assessment of areas to be impacted by the new standard identified possible impact to the deferral of costs to obtain a contract, which are primarily commission expense directly incurred because of sales of products and related support, and the allocation of revenue between products and support and maintenance for certain arrangements, taking into account performance obligations that may be immaterial in the context of the contract under Topic 606. While the Company continues to assess the potential impact of the new standard, including the areas described above, it has not yet quantified the impact the new standard may have on its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016‑02, Leases (Topic 842), or ASU 2016‑02, which requires lessees to record most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. Under ASU 2016‑02, a lessee would recognize a lease liability for the obligation to make lease payments and a right‑to‑use asset for the right to use the underlying asset for the lease term. For public entities, this standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. For all other entities, this standard is effective for annual reporting periods beginning after December 15, 2019, and interim periods within annual periods beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the standard and its impact on the condensed consolidated financial statements. However, the Company does expect a material change in its consolidated assets and liabilities upon adoption of this standard.

9


 

3. NET LOSS PER SHARE

Net Loss Per Share

Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, convertible preferred stock, preferred stock warrants and stock options are common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive.

The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive:

 

 

 

As of September 30,

 

 

 

2018

 

 

2017

 

Options to purchase common stock

 

 

2,026,889

 

 

 

1,912,644

 

Convertible preferred stock

 

 

 

 

 

22,671,601

 

Warrants for preferred stock

 

 

 

 

 

385,126

 

Warrants for common stock

 

 

468,181

 

 

 

 

Total potential dilutive shares

 

 

2,495,070

 

 

 

24,969,371

 

 

 

4. FAIR VALUE MEASUREMENTS

Cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued liabilities approximate fair market value because of the short-term nature of those instruments. The Company’s lease obligation, term loan and Convertible Notes have fair values that approximate their carrying value.

U.S. GAAP establishes a framework for measuring fair value and a fair value hierarchy based on the inputs used to measure fair value. This framework maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It applies to both items recognized and reported at fair value in the condensed consolidated financial statements and items disclosed at fair value in the notes to the condensed consolidated financial statements.

Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the transparency of inputs as follows:

Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the report date. A quoted price for an identical asset or liability in an active market provides the most reliable fair value measurement because it is directly observable to the market.

Level 2 - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the report date. The nature of these securities includes investments for which quoted prices are available but traded less frequently and investments that are fair valued using other securities, the parameters of which can be directly observed.

Level 3 - Securities that have little to no pricing observability as of the report date. These securities are measured using management’s best estimate of fair value, where the inputs into the determination of fair value are not observable and require significant management judgment or estimation.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by the Company. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Company’s perceived risk of that instrument.

10


 

The following tables summarize the levels of fair value measurements of the Company’s cash equivalents:

 

 

 

Fair Value Measurements as of September 30, 2018

 

 

 

Quoted Prices

in Active

Markets

using Identical

Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market account

 

$

21,940

 

 

$

 

 

$

 

 

$

21,940

 

Restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market account

 

 

83

 

 

 

 

 

 

 

 

 

83

 

Total assets

 

$

22,023

 

 

$

 

 

$

 

 

$

22,023

 

 

 

 

Fair Value Measurements as of December 31, 2017

 

 

 

Quoted Prices

in Active

Markets

using Identical

Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Equivalents: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market account

 

$

18,728

 

 

$

 

 

$

 

 

$

18,728

 

Restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market account

 

 

100

 

 

 

 

 

 

 

 

 

100

 

Total assets

 

$

18,828

 

 

$

 

 

$

 

 

$

18,828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The Company incorrectly overstated its cash equivalents by $4,817 in its annual report on Form 10-K for the year ended December 31, 2017. Cash equivalents were $18,728, while cash was $4,817. The error in disclosure had no impact on previously reported cash and cash equivalents in the consolidated balance sheet as of December 31, 2017 or consolidated statement of operations for the year ended December 31, 2017.

 

 

 

5. BALANCE SHEET COMPONENTS

Inventory

Inventory consists of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Finished goods

 

$

3,593

 

 

$

2,761

 

Work in process

 

 

38

 

 

 

 

Raw materials

 

 

815

 

 

 

 

Total inventory

 

$

4,446

 

 

$

2,761

 

Inventory as of September 30, 2018, includes work in process and raw materials related to the Company’s next generation ARTAS iX System which was launched and manufactured by the Company starting in the third quarter of 2018.

11


 

Property and Equipment, Net

Property and equipment, net consist of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Equipment

 

$

3,625

 

 

$

2,929

 

Computer hardware and software

 

 

786

 

 

 

721

 

Leasehold improvements

 

 

874

 

 

 

869

 

Furniture and fixtures

 

 

453

 

 

 

270

 

Total property and equipment

 

 

5,738

 

 

 

4,789

 

Less: Accumulated depreciation and amortization

 

 

(4,182

)

 

 

(3,651

)

Total property and equipment, net

 

$

1,556

 

 

$

1,138

 

 

Depreciation and amortization expense were $268 and $539 for three and nine months ended September 30, 2018. Depreciation and amortization expense were $139 and $452 for the three and nine months ended September 30, 2017.  

 

6. COMMITMENTS AND CONTINGENCIES

Operating Leases

The Company has various operating leases including 23,000 square feet of office space in San Jose, California, which expires in April 2022.

Aggregate future minimum lease payments required under the Company’s operating leases as of September 30, 2018 are as follows:

 

Years Ending December 31,

 

 

 

 

2018 (remaining 3 months)

 

$

128

 

2019

 

 

518

 

2020

 

 

534

 

2021

 

 

550

 

2022

 

 

188

 

Thereafter

 

 

Total future minimum lease payments

 

$

1,918

 

 

Total rent expense was $163 and $401 for three and nine months ended September 30, 2018. Total rent expense was $103 and $310 for the three and nine months ended September 30, 2017.

Commitments

The Company has two master agreements and a component pricing agreement with Evolve Manufacturing Technologies, Inc. (Evolve) for the supply of the ARTAS® System and consumable products. The terms of these master agreements are substantially similar. The master agreement for the sale of ARTAS® Systems was effective beginning on April 1, 2016 and the master agreement for the sale of kits used with the ARTAS System was effective beginning on March 1, 2016. Both agreements are effective for an initial term of two years and will continue to automatically renew for additional twelve-month periods, subject to either party’s right to terminate the agreement upon 180 days advance notice during the initial term, if our quarterly forecasted demand falls below 75% of our historical forecasted demand for the same period in the previous year or upon 120 days’ advance notice after the initial term. Under the agreements, the Company has future purchase commitments up to $330 as of September 30, 2018.

In March 2018, the Company received U.S. FDA 510(k) clearance to expand the ARTAS® System technology to include an implantation functionality, referred to as ARTAS® iX. Based on manufacturing changes associated with the ARTAS® iX System, the Company determined that certain components procured or expected to be procured by Evolve, will be in excess of expected demand or usage based on the advance notice the Company provided to Evolve under the term of the agreement mentioned above. Although the Company will be taking steps to minimize the adverse impact on the Company’s business, based on information available as of September 30, 2018, the Company’s management recorded a loss contingency accrual of $384 which is reported in “Cost of revenue” in the condensed consolidated statements of operations for the nine-months ended September 30, 2018 and included in “Other accrued liabilities” on the condensed consolidated balance sheets as of September

12


 

30, 2018. During the three-months ended September 30, 2018, the Company reduced the loss contingency estimate by $300 based on recent facts and circumstances available during the period.

Licensing Agreements

In July 2006, the Company entered into a license agreement with Rassman Licensing, LLC (Rassman) for non-exclusive, royalty bearing, non-transferable, perpetual, world-wide rights for use on approved fields relating to robotically controlled hair removal and implantation procedures. In consideration for this license, the Company paid Rassman a one-time payment of $1,000. The agreement terminates on May 9, 2020. In February 2012, the Company amended its license agreement with Rassman. In exchange for a one-time $400 payment to Rassman, the Company now has a fully paid royalty-free perpetual license to a patent subject to this license agreement.  

In July 2006, the Company entered into a license agreement with HSC Development, LLC for exclusive non-transferable, royalty-free worldwide rights for use in approved fields relating to a computer-controlled system in which a device is carried on a mechanized arm for extraction or implantation of a follicular unit without manual manipulation. In consideration for this license, the Company paid HSC Development, LLC a one-time payment of $25 and issued 2,500 shares of the Company’s common stock. The agreement terminates on July 27, 2024.

Legal Proceedings

From time to time the Company is involved in litigation arising out of claims in the normal course of business. Based on the information presently available, management believes that there are no claims or actions pending or threatened against us, the ultimate resolution of which will have a material effect on our financial position, liquidity or results of operations, although the results of litigation are inherently uncertain.

Purported Shareholder Class Action

On May 23, 2018, a putative shareholder class action complaint was filed in Superior Court of the State of California, County of San Mateo (the “Superior Court”), captioned Wong v. Restoration Robotics, Inc., et al., No. 18CIV02609. On June 21, 2018 and June 28, 2018, two putative class action complaints were filed in the United States District Court for the Northern District of California, captioned Guerrini v. Restoration Robotics, Inc., et al., No. 5:18-cv-03712-EJD and Yzeiraj v. Restoration Robotics, Inc., et al., No. 5:18-cv-03883-BLF, respectively. On July 24, 2018, the U.S. Northern District Court related the Guerrini and Yzeiraj actions and reassigned the Yzeiraj action to Judge Edward J. Davila. The Wong and Guerrini complaints name the Company as defendants, and certain of its current and former executive officers and directors, certain of its venture capital investors and the underwriters in the Company’s IPO. The Yzeiraj complaint names the Company as defendants and certain of its current and former executive officers and directors. The Wong complaint asserts claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, or the Securities Act. The Guerrini and Yzeiraj complaints assert claims under Sections 11 and 15 of the Securities Act. The complaints all allege, among other things, that the Company’s Registration Statement filed with the SEC on September 1, 2017 and the Prospectus filed with the SEC on October 13, 2017 in connection with the Company’s IPO were inaccurate and misleading, contained untrue statements of material facts, omitted to state other facts necessary to make the statements made not misleading and omitted to state material facts required to be stated therein. The complaints seek unspecified monetary damages, other equitable relief and attorneys’ fees and costs.

On August 8, 2018, the Company, along with certain of its current and former executive officers and directors, filed a motion to dismiss the Wong complaint based on the forum selection clause designating the federal district courts as the exclusive forum for claims arising under the Securities Act contained in the Company’s Amended and Restated Certificate of Incorporation, and which asked the court in the alternative to stay the Wong action. Also, on August 8, 2018, the venture capital investor and underwriters’ defendants in the Wong action filed demurrers to the Wong complaint, and the Company, along with certain of its current and former executive officers and directors, joined in the venture capital investor defendants’ demurrer. A hearing on the Company’s motion to dismiss and the demurrers to the Wong complaint was held on October 24, 2018.  The Company is unable to predict the date on which the Superior Court will issue any decision at this time.

On October 2, 2018, the U.S. Northern District Court granted a Motion for Consolidation of Related Actions, Appointment as Lead Plaintiff and Approval of Lead Counsel filed by Plaintiff Edgardo Guerrini, which consolidated the Guerrini and Yzeiraj actions under the caption In re Restoration Robotics, Inc. Securities Litigation, Case No. 5:18-cv-03712-EJD. The U.S. Northern District Court has set an initial hearing for January 24, 2019.

The Company believes that these lawsuits are without merit and management intends to vigorously defend against these claims.

13


 

7. LONG-TERM DEBT

Loan and Security Agreement

In May 2018, the Company entered into a Loan and Security Agreement (the Solar Agreement) with Solar Capital Ltd. (Solar) and certain other lenders thereunder (together with Solar, the Lenders), and Solar, as the Collateral Agent. The Solar Agreement consists of a four-year term loan for an aggregate principal amount of $20,000 (the Borrowings), for working capital, to fund the Company’s general business requirements and to repay indebtedness of the Company to Oxford Finance LLC (the Oxford Agreement). The Company used $10,085 of the loan proceeds to repay the outstanding principal of $8,667, a final payment fee of $1,300 plus accrued interest and prepayment fees of $118 under the Oxford Agreement. The Borrowings under the Solar Agreement bear interest through maturity at a rate equal to the U.S. Dollar LIBOR rate plus 7.95% per annum (the Interest Rate). The outstanding balance on the loan was $20,000 and accrued interest totaled $168 as of September 30, 2018. The Interest Rate was 10.1% at September 30, 2018.

Pursuant to the terms of the Solar Agreement, the Company shall make interest only payments until December 1, 2019 (the Interest Only Period). The Interest Only Period may be extended up to three additional months, if the Company achieves certain revenue and capital fundraising thresholds. Following cessation of the Interest Only Period, the Company shall make equal monthly payments on the outstanding principal balance of the Borrowings and any unpaid and accrued interest such that the Borrowings shall be fully repaid on May 1, 2022.

In addition, pursuant to the Solar Agreement, the Company issued the Lenders warrants (the Warrants) to purchase an aggregate of 161,725 shares of the Company’s common stock, $0.0001 par value per share, at an exercise price of $3.71 per share. The Warrants were immediately exercisable upon issuance, and excluding certain mergers or acquisitions, will expire on the ten-year anniversary of the date of issuance. The fair value of the Warrants issued was determined to be $404 using a Black-Scholes valuation model with the following assumptions: common stock price at issuance of $3.71 per share; exercise price of $3.71; risk-free interest rate of 2.97% based upon observed risk-free interest rates; expected volatility of 55.50% based on the Company’s implied volatility; expected term of ten years, which is the contractual life of the Warrants; and a dividend yield of 0%. The fair value of the Warrants was recorded as a debt discount within notes payable and an increase to additional paid-in capital on the Company’s balance sheet. The debt discount is being amortized as interest expense over the term of the Solar Agreement, using the effective interest method.

The third-party transaction costs (not paid directly to the lenders) related to the debt of $404 are accounted for as a debt discount and classified within notes payable on the Company’s balance sheet and amortized as interest expense over the term of the loan using the effective interest method. Unamortized debt discounts related to the Oxford Agreement and all fees paid directly to Solar and Oxford totaling $505 in connection with the debt financing in May 2018 were written off to “Other income (expense), net” in the consolidated statements of operations.

The obligations under the Solar Agreement are secured by a lien on substantially all the Company’s property, excluding intellectual property. The Solar Agreement contains certain affirmative covenants, negative covenants and events of default, including, covenants and restrictions that among other things, require the Company and its subsidiary to satisfy certain financial covenants including covenants requiring the Company to satisfy certain revenue and liquidity thresholds, and restricts the ability of the Company and its subsidiary’s ability to, incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, engage in asset sales or sale and leaseback transactions, and declare dividends or redeem or repurchase capital stock. A failure to comply with these covenants could permit the Lenders under the Solar Agreement to declare the Borrowings, together with accrued but unpaid interest and certain Prepayment Fees, to be immediately due and payable. On November 2, 2018, the Solar Agreement was amended to modify the compliance requirement for certain revenue and liquidity threshold. As part of this amendment, the Company paid a fee of $50 to the Lenders and cancelled 161,725 Warrants (originally issued in May 2018, as mentioned above) and issued 161,725 new warrants of the Company’s common stock, $0.0001 par value per share, at an exercise price of $1.76 per share. All other terms of the Warrants were unchanged. As of September 30, 2018, the Company was in compliance with all covenants under the Solar Agreement, as amended.

The Company is also required to make mandatory prepayments of the Borrowings, subject to specified exceptions, upon defaulting on any payments of principal or interest on the Borrowings, the occurrence of certain specified defaults of the covenants in the Solar Agreement, the occurrence of a material adverse change in the business, operations or conditions of the Company and specified other events (each, an Event of Default). Upon the occurrence and continuation of an Event of Default, the Borrowings shall accrue at the Interest Rate plus 4.0%.

If all or any of the Borrowings are prepaid or required to be prepaid under the Solar Agreement, then the Company shall pay, in addition to such prepayment, a prepayment premium (the Prepayment Premium) equal to (i) with respect to any such prepayment paid on or prior to May 1, 2019, 3.0% of the principal amount of the Borrowings being prepaid, (ii) with respect to

14


 

any prepayments paid after May 1, 2019 but on or prior to May 1, 2020, 2.0% of the principal amount of the Borrowings being prepaid and (iii) with respect to any prepayments paid after May 1, 2020 but on or prior to May 1, 2021, 1.0% of the principal amount of the Borrowings being prepaid. Notwithstanding the foregoing, if the Lenders each participate in a refinancing of the Borrowings, then the Prepayment Premium shall be 0%.

The scheduled principal payments on the outstanding borrowings as of September 30, 2018 are as follows:

 

 

 

As of

 

 

 

September 30, 2018

 

2018 (remaining 3 months)

 

$

 

2019

 

 

667

 

2020

 

 

8,000

 

2021

 

 

8,000

 

2022

 

 

4,163

 

Total

 

 

20,830

 

Less debt discount

 

 

(1,454

)

Non-current portion

 

$

19,376

 

 

8. COMMON STOCK RESERVED FOR ISSUANCE

The Company is required to reserve and keep available out of its authorized but unissued shares of common stock a number of shares sufficient to affect the conversion of all outstanding shares of convertible preferred stock, of which, there are none, plus options granted and available for grant under the incentive plans.

 

 

 

September 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Outstanding common stock warrants

 

 

468,181

 

 

 

306,456

 

Outstanding and issued stock options

 

 

2,026,889

 

 

 

1,930,752

 

Shares reserved for future option grants 1

 

 

2,800,358

 

 

 

2,162,037

 

Total common stock reserved for issuance

 

 

5,295,428

 

 

 

4,399,245

 

 

 

(1)

The Company incorrectly understated its shares reserved for future option grants by 1,890,547 in its annual report on Form 10-K for the year ended December 31, 2017. The Company disclosed 271,490 shares reserved for future option grants at December 31, 2017, instead of 2,162,037 shares reserved for future option grants (as shown in the table above). The error in disclosure had no impact on previously reported consolidated financial statements as of and for the year ended December 31, 2017.

9. STOCK OPTION PLAN

2005 and 2015 Plans

The Company granted incentive stock options (ISOs) and non-statutory stock options (NSOs) pursuant to its 2005 Stock Option Plan (the 2005 Plan) until the Board of Directors approved the 2015 Stock Option Plan (the 2015 Plan), and all remaining shares available for future award under the 2005 Plan were transferred to the 2015 Plan and the 2005 Plan was terminated. The Company granted ISOs and NSOs pursuant to its 2015 Plan until the 2017 Equity Incentive Plan (the 2017 Plan) was approved by the Board of Directors and became effective on October 11, 2017. As a result of the 2017 Plan becoming effective, all remaining shares available for future award under the 2015 Plan were transferred to the 2017 Plan, the 2015 Plan was terminated, and no further grants will be made under the Company’s 2005 Plan and the 2015 Plan. Any outstanding stock awards granted under the 2005 Plan and the 2015 Plan will remain outstanding, subject to the terms of the Company’s 2005 Plan and 2015 Plan and the applicable stock award agreements, until such outstanding stock awards that are stock options are exercised or until they terminate or expire by their terms, or until such stock awards are fully settled, terminated or forfeited.

2017 Plan

The Company’s 2017 Plan provides for the grant of ISOs, NSOs, stock appreciation rights, restricted stock awards, restricted stock unit awards, and other forms of equity compensation to employees, directors and consultants. In addition, the Company’s 2017 Plan provides for the grant of performance cash awards to employees, directors and consultants.

15


 

The Company recognized stock-based compensation expense for its employees and non-employees in the accompanying consolidated statements of operations as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Cost of revenue

 

$

6

 

 

$

3

 

 

$

14

 

 

$

8

 

Sales and marketing

 

 

31

 

 

 

25

 

 

 

77

 

 

 

60

 

Research and development

 

 

11

 

 

 

18

 

 

 

39

 

 

 

69

 

General and administrative

 

 

119

 

 

 

72

 

 

 

289

 

 

 

212

 

Total stock-based compensation

 

$

167

 

 

$

118

 

 

$

419

 

 

$

349

 

 

Determination of Fair Value

The estimated grant-date fair value of all of the Company’s stock-based awards was calculated using the Black-Scholes-Merton option pricing model, based on the following assumptions:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2018

 

 

2017 *

 

 

2018

 

 

2017

 

Expected term (years)

 

6.0

 

 

 

 

 

5.37 - 6.10

 

 

4.95 - 7.50

 

Risk-free interest rate

 

2.82%

 

 

 

 

 

2.40 - 2.82%

 

 

1.77 - 2.13%

 

Expected volatility

 

53.87%

 

 

 

 

 

53.72 - 55.49%

 

 

51.62 - 53.58%

 

Dividend yield

 

0%

 

 

 

 

 

0%

 

 

0%

 

 

*No stock options were issued during the three months ended September 30, 2017

 

The following table summarizes stock option activity under the Company’s stock option plan:

 

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

Remaining

 

 

Aggregate

 

 

 

Number of

 

 

Exercise Price

 

 

Contractual

 

 

Intrinsic