Summary of Significant Accounting Policies |
9 Months Ended |
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Sep. 30, 2023 | |
| Accounting Policies [Abstract] | |
| Summary of Significant Accounting Policies | Summary of Significant Accounting Policies
For a detailed discussion about the Company’s significant accounting policies and for further information on significant accounting updates adopted in the prior year, see Note 2, Summary of Significant Accounting Policies, to the audited consolidated financial statements in the 2022 Form 10-K. During the nine months ended September 30, 2023, there were no significant updates to the Company’s significant accounting policies other than as described below.
At-the-Market Offering
On February 6, 2023, the Company entered into the ATM Sales Agreement with Needham, as agent, pursuant to which the Company may offer and sell, from time to time through Needham, shares of its common stock pursuant to its universal shelf registration statement (the “Shelf Registration Statement”), which the Company filed with the SEC on November 14, 2022. For the nine-months ended September 30, 2023, the Company has sold $18.4 million of shares, net of issuance costs of $1.2 million. See Note 16. At-the-Market Offering, for further information.
Fair Value of Debt Derivatives
Debt derivative liabilities, related to the Notes, are recorded at fair value on a recurring basis in the condensed consolidated balance sheets, and are categorized in accordance with the fair value hierarchy based upon the level of judgment associated with the inputs used to measure their fair values. Changes to the fair value of the debt derivative liabilities occurring from subsequent remeasurement are recorded as gains or losses in the condensed consolidated statements of operations and comprehensive income (loss). See Note 10. Equity Instruments, for further information.
Convertible Notes
As of September 30, 2023, we carried the Notes at the initially allocated liability value less unamortized debt discount and issuance costs on our condensed consolidated balance sheet. The unamortized debt discount and issuance costs accrete to the carrying amount of the Notes over the term of the agreement using the effective interest rate method and are included in “Interest expense” in the condensed consolidated statements of operations and comprehensive income (loss). See Note 9. Long-Term Debt, for further information.
Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“Topic 326”)”, and has since released various amendments including ASU No. 2019-04. The guidance modifies the measurement of expected credit losses on certain financial instruments. This guidance is effective for the Company for the fiscal year beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted the new guidance in the first quarter of 2023. The effect on the consolidated financial statements and related disclosures was not material.
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