2023 Q2 Form 10-Q Financial Statement

#000139297223000070 Filed on May 02, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1 2022 Q1
Revenue $75.79M $73.18M $66.49M
YoY Change 10.87% 10.06% 8.33%
Cost Of Revenue $28.57M $29.54M $27.36M
YoY Change 3.36% 7.97% 3.28%
Gross Profit $47.22M $43.64M $39.13M
YoY Change 15.96% 11.52% 12.17%
Gross Profit Margin 62.3% 59.63% 58.85%
Selling, General & Admin $38.73M $40.15M $39.62M
YoY Change 2.3% 1.34% 14.66%
% of Gross Profit 82.02% 91.99% 101.24%
Research & Development $21.85M $22.29M $24.47M
YoY Change -6.64% -8.89% 16.93%
% of Gross Profit 46.27% 51.08% 62.53%
Depreciation & Amortization $2.751M $3.001M $4.647M
YoY Change -27.62% -35.42% 51.47%
% of Gross Profit 5.83% 6.88% 11.88%
Operating Expenses $60.58M $62.44M $64.08M
YoY Change -1.11% -2.57% 15.51%
Operating Profit -$13.36M -$18.80M -$26.50M
YoY Change -34.97% -29.08% 28.72%
Interest Expense -$1.576M -$1.576M -$1.576M
YoY Change 0.0% 0.0% -0.25%
% of Operating Profit
Other Income/Expense, Net $1.791M $1.451M -$418.0K
YoY Change -89650.0% -447.13% -246.15%
Pretax Income -$13.14M -$18.92M -$28.50M
YoY Change -40.58% -33.6% 30.24%
Income Tax $149.0K $81.00K $143.0K
% Of Pretax Income
Net Earnings -$13.29M -$19.00M -$28.64M
YoY Change -40.69% -33.65% 30.01%
Net Earnings / Revenue -17.53% -25.97% -43.07%
Basic Earnings Per Share -$0.29 -$0.41 -$0.64
Diluted Earnings Per Share -$0.29 -$0.41 -$0.64
COMMON SHARES
Basic Shares Outstanding 46.04M shares 45.87M shares 45.09M shares
Diluted Shares Outstanding 46.10M shares 45.93M shares 45.09M shares

Balance Sheet

Concept 2023 Q2 2023 Q1 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $184.6M $192.4M $217.4M
YoY Change -14.23% -11.51% -32.88%
Cash & Equivalents $184.6M $192.4M $217.4M
Short-Term Investments
Other Short-Term Assets $17.63M $18.58M $16.60M
YoY Change -1.46% 11.93% 0.01%
Inventory
Prepaid Expenses
Receivables $54.16M $45.79M $52.80M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $256.4M $256.7M $286.8M
YoY Change -4.16% -10.48% -27.24%
LONG-TERM ASSETS
Property, Plant & Equipment $38.71M $25.44M $28.14M
YoY Change 41.58% -9.59% -21.02%
Goodwill $107.7M $107.7M $107.9M
YoY Change 0.36% -0.2% 117.76%
Intangibles $14.43M $16.05M $24.64M
YoY Change -34.57% -34.89% 230.03%
Long-Term Investments
YoY Change
Other Assets $16.74M $8.872M $8.119M
YoY Change 105.27% 9.27% 8.18%
Total Long-Term Assets $177.6M $180.8M $199.8M
YoY Change -8.58% -9.51% 41.77%
TOTAL ASSETS
Total Short-Term Assets $256.4M $256.7M $286.8M
Total Long-Term Assets $177.6M $180.8M $199.8M
Total Assets $434.0M $437.6M $486.6M
YoY Change -6.02% -10.08% -9.06%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $6.874M $4.197M $7.957M
YoY Change 14.99% -47.25% 25.96%
Accrued Expenses $38.76M $13.36M $12.39M
YoY Change 205.24% 7.81% -25.97%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $143.0M
YoY Change
Total Short-Term Liabilities $305.0M $160.8M $164.3M
YoY Change 94.1% -2.08% 2.41%
LONG-TERM LIABILITIES
Long-Term Debt $147.5M $290.2M $288.7M
YoY Change -48.96% 0.52% 0.51%
Other Long-Term Liabilities $32.90M $1.247M $1.182M
YoY Change 2989.01% 5.5% -18.43%
Total Long-Term Liabilities $180.4M $1.247M $1.182M
YoY Change 16840.85% 5.5% -18.43%
TOTAL LIABILITIES
Total Short-Term Liabilities $305.0M $160.8M $164.3M
Total Long-Term Liabilities $180.4M $1.247M $1.182M
Total Liabilities $485.4M $485.5M $499.4M
YoY Change -0.29% -2.78% -0.13%
SHAREHOLDERS EQUITY
Retained Earnings -$623.2M -$609.9M -$537.3M
YoY Change 11.34% 13.51% 19.54%
Common Stock $51.00K $51.00K $50.00K
YoY Change 2.0% 2.0% 2.04%
Preferred Stock
YoY Change
Treasury Stock (at cost) $29.85M $29.85M $29.85M
YoY Change 0.0% 0.0% 0.0%
Treasury Stock Shares 4.681M shares
Shareholders Equity -$51.45M -$47.97M -$12.82M
YoY Change
Total Liabilities & Shareholders Equity $434.0M $437.6M $486.6M
YoY Change -6.02% -10.08% -9.06%

Cashflow Statement

Concept 2023 Q2 2023 Q1 2022 Q1
OPERATING ACTIVITIES
Net Income -$13.29M -$19.00M -$28.64M
YoY Change -40.69% -33.65% 30.01%
Depreciation, Depletion And Amortization $2.751M $3.001M $4.647M
YoY Change -27.62% -35.42% 51.47%
Cash From Operating Activities -$6.542M -$6.143M -$11.01M
YoY Change 238.79% -44.23% 148.68%
INVESTING ACTIVITIES
Capital Expenditures $277.0K $1.546M $461.0K
YoY Change -189.94% 235.36% -64.54%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change -100.0% -100.0%
Cash From Investing Activities -$277.0K -$1.546M -$461.0K
YoY Change -41.93% 235.36% -74.4%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -958.0K -$3.573M $1.231M
YoY Change -390.25% -1.05%
NET CHANGE
Cash From Operating Activities -6.542M -$6.143M -$11.01M
Cash From Investing Activities -277.0K -$1.546M -$461.0K
Cash From Financing Activities -958.0K -$3.573M $1.231M
Net Change In Cash -7.777M -$11.25M -$10.16M
YoY Change 222.97% 10.74% 95.2%
FREE CASH FLOW
Cash From Operating Activities -$6.542M -$6.143M -$11.01M
Capital Expenditures $277.0K $1.546M $461.0K
Free Cash Flow -$6.819M -$7.689M -$11.48M
YoY Change 320.15% -32.99% 100.3%

Facts In Submission

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CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2022Q1 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2023Q1 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
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CY2022Q1 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
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CY2022Q4 us-gaap Stockholders Equity
StockholdersEquity
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CY2023Q1 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
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CY2023Q1 us-gaap Other Comprehensive Income Loss Net Of Tax
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CY2023Q1 us-gaap Stockholders Equity
StockholdersEquity
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CY2021Q4 us-gaap Stockholders Equity
StockholdersEquity
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CY2022Q1 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
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11225000 usd
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CY2022Q1 us-gaap Stockholders Equity
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CY2023Q1 us-gaap Nature Of Operations
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Organization and Nature of Operations<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">    </span></div><div style="text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">PROS Holdings, Inc., a Delaware corporation, through its operating subsidiaries (collectively, the "Company"), provides solutions that optimize shopping and selling experiences. PROS solutions leverage artificial intelligence ("AI"), self-learning and automation to ensure that every transactional experience is fast, frictionless and personalized for every shopper, supporting both business-to-business ("B2B") and business-to-consumer ("B2C") companies across industry verticals. Companies can use these selling, pricing, revenue optimization, distribution and retail, and digital offer marketing solutions to assess their market environments in real time to deliver customized prices and offers. The Company's solutions enable their customers to provide the buyers of their products the ability to move fluidly from one sales channel to another, whether direct, partner, online, mobile or other emerging channels, each with a personalized experience regardless of which channel is used. The Company's decades of data science and AI expertise are infused into its solutions and are designed to reduce time and complexity through actionable intelligence.</span></div>
CY2023Q1 pro Treasury Money Market Funds At Fair Value
TreasuryMoneyMarketFundsAtFairValue
176500000 usd
CY2022Q4 pro Treasury Money Market Funds At Fair Value
TreasuryMoneyMarketFundsAtFairValue
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CY2023Q1 us-gaap Revenue Recognition Customer Acquisitions
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<div style="text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Deferred costs</span></div><div style="text-indent:36pt"><span><br/></span></div><div style="text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Sales commissions earned by the Company's sales representatives are considered incremental and recoverable costs of obtaining a customer contract. Sales commissions are deferred and amortized on a straight-line basis over the period of benefit, which the Company has determined to be five to eight years. The Company determined the period of benefit by taking into consideration its customer contracts, expected renewals of those customer contracts (as the Company currently does not pay an incremental sales commission for renewals), the Company's technology and other factors. The Company also defers amounts earned by employees other than sales representatives who earn incentive payments under compensation plans also tied to the value of customer contracts acquired. Deferred costs were </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">$14.4 million</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> and </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">$14.8 million</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> as of March 31, 2023 and December 31, 2022, respectively. Amortization expense for the deferred costs was </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">$1.5 million </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">and $1.4 million for the three months ended March 31, 2023 and 2022, respectively. Amortization of deferred costs is included in </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">selling and marketing expense in the accompanying unaudited condensed consolidated statements of comprehensive loss.</span></div>
CY2023Q1 us-gaap Deferred Costs Current And Noncurrent
DeferredCostsCurrentAndNoncurrent
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CY2022Q4 us-gaap Deferred Costs Current And Noncurrent
DeferredCostsCurrentAndNoncurrent
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CY2022Q1 us-gaap Amortization Of Deferred Charges
AmortizationOfDeferredCharges
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CapitalizedContractCostAmortization
200000 usd
CY2022Q1 us-gaap Capitalized Contract Cost Amortization
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CY2023Q1 us-gaap Deferred Revenue Revenue Recognized1
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CY2022Q1 us-gaap Deferred Revenue Revenue Recognized1
DeferredRevenueRevenueRecognized1
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CY2023Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
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CY2023Q1 pro Revenue Remaining Performance Obligationtoberecognizedwithin12months
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CY2023Q1 us-gaap Revenues
Revenues
73182000 usd
CY2023Q1 pro Percentage Of Total Revenue
PercentageOfTotalRevenue
1
CY2022Q1 us-gaap Revenues
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CY2022Q1 pro Percentage Of Total Revenue
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CY2023Q1 us-gaap Lessee Operating Lease Renewal Term
LesseeOperatingLeaseRenewalTerm
P15Y
CY2023Q1 pro Lessee Operating Lease Termination Option
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CY2023Q1 us-gaap Operating Lease Payments
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2251000 usd
CY2022Q1 us-gaap Operating Lease Payments
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CY2023Q1 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2022Q1 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2023Q1 pro Decrease In Right Of Use Asset And Related Lease Liability Due To Modification
DecreaseInRightOfUseAssetAndRelatedLeaseLiabilityDueToModification
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CY2022Q1 pro Decrease In Right Of Use Asset And Related Lease Liability Due To Modification
DecreaseInRightOfUseAssetAndRelatedLeaseLiabilityDueToModification
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CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
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CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
4869000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Two
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CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
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CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
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CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
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CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
19223000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
46831000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
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CY2023Q1 us-gaap Operating Lease Liability
OperatingLeaseLiability
32596000 usd
CY2023Q1 us-gaap Net Income Loss
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-19002000 usd
CY2022Q1 us-gaap Net Income Loss
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CY2023Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
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45926000 shares
CY2022Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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CY2023Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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CY2022Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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CY2023Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
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CY2022Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
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CY2023Q1 us-gaap Earnings Per Share Basic
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CY2022Q1 us-gaap Earnings Per Share Basic
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CY2023Q1 us-gaap Earnings Per Share Diluted
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CY2022Q1 us-gaap Earnings Per Share Diluted
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CY2023Q1 us-gaap Allocated Share Based Compensation Expense
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CY2022Q1 us-gaap Allocated Share Based Compensation Expense
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CY2023Q1 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
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CY2023Q1 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
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CY2023Q1 pro Sharebasedcompensationarrangementbysharebasedpayment Minimum Employee Subscriptionrate
SharebasedcompensationarrangementbysharebasedpaymentMinimumEmployeeSubscriptionrate
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CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Maximum Employee Subscription Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardMaximumEmployeeSubscriptionRate
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CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Discount From Market Price Offering Date
ShareBasedCompensationArrangementByShareBasedPaymentAwardDiscountFromMarketPriceOfferingDate
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CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Discount From Market Price Offering Date
ShareBasedCompensationArrangementByShareBasedPaymentAwardDiscountFromMarketPriceOfferingDate
0.15
CY2023Q1 pro Maximum Amount Contributablebyemployeesunder Espp Halfyearly
MaximumAmountContributablebyemployeesunderESPPHalfyearly
5000 usd
CY2023Q1 pro Maximum Amount Contributable By Employees Under Espp Annually
MaximumAmountContributableByEmployeesUnderESPPAnnually
10000 usd
CY2023Q1 us-gaap Stock Issued During Period Shares Employee Stock Purchase Plans
StockIssuedDuringPeriodSharesEmployeeStockPurchasePlans
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CY2023Q1 pro Esp Pcontributionsby Employees
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CY2023Q1 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2023Q1 us-gaap Debt Instrument Fair Value
DebtInstrumentFairValue
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CY2022Q4 us-gaap Debt Instrument Fair Value
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CY2023Q1 us-gaap Debt Instrument Face Amount
DebtInstrumentFaceAmount
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CY2022Q4 us-gaap Debt Instrument Face Amount
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CY2023Q1 us-gaap Debt Instrument Unamortized Discount Premium And Debt Issuance Costs Net
DebtInstrumentUnamortizedDiscountPremiumAndDebtIssuanceCostsNet
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CY2022Q4 us-gaap Debt Instrument Unamortized Discount Premium And Debt Issuance Costs Net
DebtInstrumentUnamortizedDiscountPremiumAndDebtIssuanceCostsNet
3971000 usd
CY2023Q1 us-gaap Convertible Debt
ConvertibleDebt
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CY2022Q4 us-gaap Convertible Debt
ConvertibleDebt
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CY2023Q1 us-gaap Debt Instrument Periodic Payment Interest
DebtInstrumentPeriodicPaymentInterest
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CY2022Q1 us-gaap Debt Instrument Periodic Payment Interest
DebtInstrumentPeriodicPaymentInterest
1203000 usd
CY2023Q1 us-gaap Amortization Of Financing Costs
AmortizationOfFinancingCosts
373000 usd
CY2022Q1 us-gaap Amortization Of Financing Costs
AmortizationOfFinancingCosts
373000 usd
CY2023Q1 us-gaap Interest Expense Debt
InterestExpenseDebt
1576000 usd
CY2022Q1 us-gaap Interest Expense Debt
InterestExpenseDebt
1576000 usd
CY2023Q1 us-gaap Severance Costs1
SeveranceCosts1
3600000 usd
CY2023Q1 pro Cash Payments For Severance And Other Related
CashPaymentsForSeveranceAndOtherRelated
3200000 usd
CY2023Q1 us-gaap Other Liabilities
OtherLiabilities
1300000 usd

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