2021 Q2 Form 10-Q Financial Statement

#000157056221000148 Filed on August 04, 2021

View on sec.gov

Income Statement

Concept 2021 Q2 2020 Q2
Revenue $26.10M $7.806M
YoY Change 234.33% 237.78%
Cost Of Revenue $11.30M $1.948M
YoY Change 480.18% 195.15%
Gross Profit $14.80M $5.858M
YoY Change 152.58% 254.82%
Gross Profit Margin 56.69% 75.04%
Selling, General & Admin $26.46M $17.55M
YoY Change 50.76% -49.69%
% of Gross Profit 178.85% 299.64%
Research & Development $499.0K $145.0K
YoY Change 244.14% -71.51%
% of Gross Profit 3.37% 2.48%
Depreciation & Amortization $1.746M $1.658M
YoY Change 5.31% 69.53%
% of Gross Profit 11.8% 28.3%
Operating Expenses $26.96M $24.75M
YoY Change 8.96% -34.27%
Operating Profit -$15.29M -$18.89M
YoY Change -19.03% -47.53%
Interest Expense $300.0K -$2.240M
YoY Change -113.39% 24.44%
% of Operating Profit
Other Income/Expense, Net $0.00 -$2.464M
YoY Change -100.0% 2.16%
Pretax Income -$15.59M -$21.13M
YoY Change -26.2% -44.1%
Income Tax $9.000K -$2.000K
% Of Pretax Income
Net Earnings -$15.60M -$21.13M
YoY Change -26.15% -43.77%
Net Earnings / Revenue -59.78% -270.63%
Basic Earnings Per Share -$0.31 -$0.63
Diluted Earnings Per Share -$0.31 -$0.63
COMMON SHARES
Basic Shares Outstanding 51.15M shares 33.73M shares
Diluted Shares Outstanding 51.15M shares 33.73M shares

Balance Sheet

Concept 2021 Q2 2020 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $131.7M $84.75M
YoY Change 55.43% -15.19%
Cash & Equivalents $131.7M $29.77M
Short-Term Investments $0.00 $54.98M
Other Short-Term Assets $9.215M $4.300M
YoY Change 114.3% 43.33%
Inventory $3.337M $10.34M
Prepaid Expenses $5.737M
Receivables $11.86M $8.649M
Other Receivables $0.00 $0.00
Total Short-Term Assets $161.9M $108.0M
YoY Change 49.9% -6.76%
LONG-TERM ASSETS
Property, Plant & Equipment $1.137M $1.422M
YoY Change -20.04% 390.34%
Goodwill $21.21M $21.21M
YoY Change 0.0% 0.0%
Intangibles $52.31M $58.02M
YoY Change -9.85% -2.01%
Long-Term Investments
YoY Change
Other Assets $240.0K $2.155M
YoY Change -88.86% 78.69%
Total Long-Term Assets $77.97M $86.55M
YoY Change -9.91% -0.47%
TOTAL ASSETS
Total Short-Term Assets $161.9M $108.0M
Total Long-Term Assets $77.97M $86.55M
Total Assets $239.9M $194.5M
YoY Change 23.29% -4.06%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $8.059M $10.95M
YoY Change -26.42% 42.09%
Accrued Expenses $24.36M $6.094M
YoY Change 299.69% -60.43%
Deferred Revenue $4.534M
YoY Change
Short-Term Debt $19.65M $0.00
YoY Change
Long-Term Debt Due $0.00
YoY Change
Total Short-Term Liabilities $87.29M $19.46M
YoY Change 348.49% -15.77%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $74.17M
YoY Change -100.0% 1.79%
Other Long-Term Liabilities $46.41M $38.60M
YoY Change 20.24% -19.42%
Total Long-Term Liabilities $46.41M $74.17M
YoY Change -37.42% 1.79%
TOTAL LIABILITIES
Total Short-Term Liabilities $87.29M $19.46M
Total Long-Term Liabilities $46.41M $74.17M
Total Liabilities $133.7M $150.9M
YoY Change -11.41% -6.6%
SHAREHOLDERS EQUITY
Retained Earnings -$385.3M -$253.9M
YoY Change 51.73% 48.0%
Common Stock $1.000K $1.000K
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $106.1M $43.60M
YoY Change
Total Liabilities & Shareholders Equity $239.9M $194.5M
YoY Change 23.29% -4.06%

Cashflow Statement

Concept 2021 Q2 2020 Q2
OPERATING ACTIVITIES
Net Income -$15.60M -$21.13M
YoY Change -26.15% -43.77%
Depreciation, Depletion And Amortization $1.746M $1.658M
YoY Change 5.31% 69.53%
Cash From Operating Activities $16.12M -$13.94M
YoY Change -215.65% -57.96%
INVESTING ACTIVITIES
Capital Expenditures -$381.0K -$640.0K
YoY Change -40.47% -67.51%
Acquisitions
YoY Change
Other Investing Activities $0.00 $10.02M
YoY Change -100.0% -1.67%
Cash From Investing Activities -$391.0K $9.380M
YoY Change -104.17% 13.97%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 93.84M -310.0K
YoY Change -30369.35% -136.47%
NET CHANGE
Cash From Operating Activities 16.12M -13.94M
Cash From Investing Activities -391.0K 9.380M
Cash From Financing Activities 93.84M -310.0K
Net Change In Cash 109.6M -4.870M
YoY Change -2349.79% -79.78%
FREE CASH FLOW
Cash From Operating Activities $16.12M -$13.94M
Capital Expenditures -$381.0K -$640.0K
Free Cash Flow $16.50M -$13.30M
YoY Change -224.08% -57.36%

Facts In Submission

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CY2020Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
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33732754 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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44164290 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2020Q1 us-gaap Net Income Loss
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CY2020Q1 us-gaap Stockholders Equity
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CY2021Q1 us-gaap Net Income Loss
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CY2021Q2 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
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CY2021Q2 us-gaap Net Income Loss
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us-gaap Net Income Loss
NetIncomeLoss
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us-gaap Net Income Loss
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us-gaap Depreciation Depletion And Amortization
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4451000 USD
us-gaap Share Based Compensation
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us-gaap Provision For Doubtful Accounts
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2607000 USD
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0 USD
us-gaap Accretion Amortization Of Discounts And Premiums Investments
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us-gaap Amortization Of Financing Costs And Discounts
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us-gaap Paid In Kind Interest
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us-gaap Paid In Kind Interest
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us-gaap Deferred Income Tax Expense Benefit
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us-gaap Deferred Income Tax Expense Benefit
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us-gaap Business Combination Contingent Consideration Arrangements Change In Amount Of Contingent Consideration Liability1
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us-gaap Business Combination Contingent Consideration Arrangements Change In Amount Of Contingent Consideration Liability1
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us-gaap Gains Losses On Extinguishment Of Debt
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us-gaap Increase Decrease In Accounts Receivable
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6283000 USD
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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Payments To Acquire Property Plant And Equipment
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us-gaap Payments To Acquire Investments
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us-gaap Proceeds From Maturities Prepayments And Calls Of Shortterm Investments
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us-gaap Proceeds From Maturities Prepayments And Calls Of Shortterm Investments
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40000000 USD
us-gaap Net Cash Provided By Used In Investing Activities
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4399000 USD
us-gaap Net Cash Provided By Used In Investing Activities
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eols Payments Of Contingent Royalty Obligation
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us-gaap Repayments Of Long Term Debt
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us-gaap Repayments Of Long Term Debt
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522000 USD
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214000 USD
us-gaap Payments Of Stock Issuance Costs
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us-gaap Proceeds From Issuance Of Common Stock
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us-gaap Net Cash Provided By Used In Financing Activities
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29175000 USD
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
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CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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CY2019Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
109892000 USD
CY2021Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
131737000 USD
CY2020Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
29772000 USD
us-gaap Interest Paid Net
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us-gaap Interest Paid Net
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39808000 USD
us-gaap Debt Conversion Converted Instrument Amount1
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0 USD
eols Stock Issued For Accrued Litigation Settlement Expense
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eols Stock Issued For Accrued Litigation Settlement Expense
StockIssuedForAccruedLitigationSettlementExpense
0 USD
us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
10000 USD
us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
81000 USD
eols Proceeds Receivable From Atm Sales
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744000 USD
eols Proceeds Receivable From Atm Sales
ProceedsReceivableFromATMSales
0 USD
CY2021Q2 us-gaap Net Income Loss
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-15601000 USD
us-gaap Net Income Loss
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-9200000 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
7781000 USD
CY2021Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
131737000 USD
CY2021Q2 us-gaap Notes Payable Related Parties Classified Current
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19648000 USD
CY2021Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
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us-gaap Gain Loss Related To Litigation Settlement
GainLossRelatedToLitigationSettlement
25500000 USD
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="margin-bottom:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Reclassifications</span></div><div style="margin-bottom:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain comparative amounts for prior year have been reclassified to conform to current year presentations. Such reclassifications did not affect net income or retained earnings.</span></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="margin-bottom:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-bottom:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Management is required to make certain estimates and assumptions in order to prepare financial statements in conformity with GAAP. Such estimates and assumptions affect the reported financial statements. The Company’s most significant estimates relate to net revenues, allowance for doubtful accounts, fair value measurements, goodwill and long-lived asset valuations and impairment assessments, inventory valuations, income tax valuations, stock-based compensation and royalty obligations, among others. Management bases estimates on historical experience and on assumptions that management believes are reasonable. The Company’s actual results could differ materially from those estimates.</span></div><div style="margin-bottom:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Additionally, the full impact of the COVID-19 outbreak is unknown and cannot be reasonably estimated. However, where possible, management has made appropriate accounting estimates with respect to certain accounting matters, which include the fair value of royalty obligations, allowance for doubtful accounts, inventory valuation and impairment assessments of goodwill and other long-lived assets, based on the facts and circumstances available as of the reporting date. The Company’s future assessment of the magnitude and duration of the COVID-19 outbreak, as well as other factors, could result in material impacts to the Company’s financial statements in future reporting periods.</span></div>
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="margin-bottom:10pt;padding-right:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Risks and Uncertainties</span></div><div style="margin-bottom:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In 2013, Evolus and Daewoong Pharmaceutical Co. Ltd. (“Daewoong”) entered into an agreement (the “Daewoong Agreement”), pursuant to which, the Company received an exclusive distribution license to Jeuveau</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> from Daewoong for aesthetic indications in the United States, European Union, United Kingdom, members of the European Economic Area, </span></div><div style="margin-bottom:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Switzerland, Canada, Australia, Russia, Commonwealth of Independent States, and South Africa, as well as co-exclusive distribution rights with Daewoong in Japan. Jeuveau</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> is manufactured by Daewoong in a facility in South Korea. The Company also has the option to negotiate first with Daewoong to secure a distribution license for any product that Daewoong directly or indirectly develops or commercializes that is classified as an injectable botulinum toxin (other than Jeuveau</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">) in a territory covered by the Daewoong Agreement. The Company relies on Daewoong, its exclusive and sole supplier, to manufacture Jeuveau</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">. Any termination or loss of significant rights, including exclusivity, under the Daewoong Agreement would materially and adversely affect the Company’s commercialization of Jeuveau</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">. See </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Note 9. Commitments and Contingencies</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%"> </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">for additional information.</span></div><div style="margin-bottom:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company commercially launched Jeuveau</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> in the United States in May 2019 and in Canada through its distribution partner in October 2019 and, as such, has a limited history of sales. If any previously granted approval is retracted or the Company is denied approval or approval is delayed by any other regulators, it may have a material adverse impact on the Company’s business and its financial statements.</span></div><div style="margin-bottom:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company is also subject to risks common to companies in the pharmaceutical industry including, but not limited to, dependency on the commercial success of Jeuveau</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, the Company’s sole commercial product, significant competition within the medical aesthetics industry, its ability to maintain regulatory approval of Jeuveau</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">®</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, the need for additional financing to achieve its goals, third party litigation and challenges to its intellectual property, uncertainty of broad adoption of its product by physicians and patients, its ability to in-license, acquire or develop additional product candidates and to obtain the necessary approvals for those product candidates, and the need to scale manufacturing capabilities over time.</span></div><div style="margin-bottom:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The COVID-19 outbreak and restrictions intended to slow the spread of COVID-19, including quarantines, government-mandated actions, stay-at-home orders and other restrictions, have adversely affected the Company’s business in a number of ways, which have resulted, and may continue to result, in a period of business disruption and in reduced sales and operations. In addition, any disruption and volatility in the global capital markets may increase the Company’s cost of capital and adversely affect its ability to access financing when and on terms that the Company desires. Any of these events could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows.</span></div><div style="margin-bottom:10pt;padding-right:4.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Concentration of Credit Risk</span></div><div style="margin-bottom:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, short-term investments and accounts receivable. Substantially all of the Company’s cash is held by financial institutions that management believes are of high credit quality. Such deposits may, at times, exceed federally insured limits. To date, the Company has not experienced any losses associated with this credit risk and continues to believe that this exposure is not significant. The Company invests its excess cash, in line with its investment policy, primarily in money market funds and debt instruments of U.S. government agencies. </span></div><div style="margin-bottom:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s accounts receivable is derived from customers located principally in the United States. Concentrations of credit risk with respect to trade receivables are limited due to the Company’s credit evaluation process. The Company does not typically require collateral from its customers. Credit losses historically have not been material. The Company continuously monitors customer payments and maintains an allowance for doubtful accounts based on its assessment of various factors including historical experience, age of the receivable balances, and other current economic conditions or other factors that may affect customers’ ability to pay.</span></div>
CY2021Q2 us-gaap Gain Loss Related To Litigation Settlement
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0 USD
us-gaap Gain Loss Related To Litigation Settlement
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25500000 USD
us-gaap Number Of Reporting Units
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1 unit
us-gaap Goodwill Impairment Loss
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0 USD
CY2021Q2 us-gaap Goodwill Impairment Loss
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0 USD
CY2020Q2 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 USD
us-gaap Goodwill Impairment Loss
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0 USD
us-gaap Impairment Of Intangible Assets Excluding Goodwill
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0 USD
us-gaap Impairment Of Intangible Assets Excluding Goodwill
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0 USD
CY2021Q2 us-gaap Contract With Customer Liability Current
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4534000 USD
CY2020Q4 us-gaap Contract With Customer Liability Current
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3081000 USD
CY2021Q2 eols Rebates And Coupons Credits And Payments
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3620000 USD
eols Rebates And Coupons Credits And Payments
RebatesAndCouponsCreditsAndPayments
5443000 USD
CY2021Q2 eols Payments For Provisions For Accrued Volume Based Rebate And Coupon Liability
PaymentsForProvisionsForAccruedVolumeBasedRebateAndCouponLiability
2197000 USD
eols Payments For Provisions For Accrued Volume Based Rebate And Coupon Liability
PaymentsForProvisionsForAccruedVolumeBasedRebateAndCouponLiability
3991000 USD
CY2020Q2 eols Rebates And Coupons Credits And Payments
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17000 USD
eols Rebates And Coupons Credits And Payments
RebatesAndCouponsCreditsAndPayments
10229000 USD
CY2020Q2 eols Payments For Provisions For Accrued Volume Based Rebate And Coupon Liability
PaymentsForProvisionsForAccruedVolumeBasedRebateAndCouponLiability
1697000 USD
eols Payments For Provisions For Accrued Volume Based Rebate And Coupon Liability
PaymentsForProvisionsForAccruedVolumeBasedRebateAndCouponLiability
11139000 USD
us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
2802000 USD
us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
0 USD
CY2021Q2 us-gaap Allowance For Doubtful Accounts Receivable
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2216000 USD
CY2020Q4 us-gaap Allowance For Doubtful Accounts Receivable
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CY2021Q2 us-gaap Provision For Doubtful Accounts
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297000 USD
us-gaap Provision For Doubtful Accounts
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313000 USD
CY2021Q2 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
AllowanceForDoubtfulAccountsReceivableWriteOffs
26000 USD
us-gaap Allowance For Doubtful Accounts Receivable Write Offs
AllowanceForDoubtfulAccountsReceivableWriteOffs
190000 USD
CY2020Q2 us-gaap Provision For Doubtful Accounts
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us-gaap Provision For Doubtful Accounts
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2607000 USD
CY2020Q2 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
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0 USD
us-gaap Allowance For Doubtful Accounts Receivable Write Offs
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171000 USD
CY2020Q4 us-gaap Litigation Settlement Expense
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83421000 USD
CY2021Q1 us-gaap Payments For Legal Settlements
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48421000 USD
CY2021Q2 us-gaap Litigation Reserve Current
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30000000 USD
CY2020Q4 us-gaap Litigation Reserve Current
LitigationReserveCurrent
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CY2021Q2 us-gaap Litigation Reserve Noncurrent
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