0001628280-23-011123 | 10-K | XBRL Viewer

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Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Dec. 31, 2022	Apr. 04, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	000-50644
Entity Registrant Name	CUTERA, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0492262
Entity Address, Address Line One	3240 Bayshore Blvd.
Entity Address, City or Town	Brisbane
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94005
City Area Code	415
Local Phone Number	657-5500
Title of 12(b) Security	Common Stock ($0.001 par value)
Trading Symbol	CUTR
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 670
Entity Common Stock, Shares Outstanding		19,788,358
Documents Incorporated by Reference	Part III incorporates by reference certain information from the registrant’s definitive proxy statement for the 2023 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission not later than 120 days after December 31, 2022.
Entity Central Index Key	0001162461
Amendment Flag	false
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	BDO USA, LLP
Auditor Location	San Francisco, California
Auditor Firm ID	243

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 145,924	$ 164,164
Marketable investments	171,390	0
Accounts receivable, net of allowance for credit losses of $2,497 and $899, respectively	45,562	31,449
Inventories, net	63,628	39,503
Other current assets and prepaid expenses	24,036	14,545
Restricted cash	700	0
Total current assets	451,240	249,661
Property and equipment, net	40,368	3,019
Deferred tax assets	590	778
Operating lease right-of-use assets	12,831	14,627
Goodwill	1,339	1,339
Other long-term assets	14,620	10,169
Restricted cash	0	700
Total assets	520,988	280,293
Current liabilities:
Accounts payable	33,736	7,891
Accrued liabilities	57,452	54,100
Operating lease liabilities	2,810	2,419
Deferred revenue	11,841	9,490
Total current liabilities	105,839	73,900
Deferred revenue, net of current portion	1,657	1,335
Operating lease liabilities, net of current portion	11,352	13,483
Convertible notes, net of unamortized debt issuance costs of $12,666 and $4,007, respectively	416,459	134,243
Other long-term liabilities	862	763
Total liabilities	536,169	223,724
Commitments and contingencies (Note 13).
Stockholders’ equity (deficit):
Common stock, $0.001 par value: Authorized: 50,000,000 shares; Issued and outstanding: 19,668,603 and 17,995,344 shares at December 31, 2022 and 2021, respectively	20	18
Additional paid-in capital	125,406	114,724
Accumulated other comprehensive loss	(94)	0
Accumulated deficit	(140,513)	(58,173)
Total stockholders’ equity (deficit)	(15,181)	56,569
Total liabilities and stockholders’ equity (deficit)	$ 520,988	$ 280,293

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for credit loss, current	$ 2,497	$ 899
Unamortized debt issuance costs	$ 12,666	$ 4,007
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock authorized (in shares)	50,000,000	50,000,000
Common stock issued (in shares)	19,668,603	17,995,344
Common stock outstanding (in shares)	19,668,603	17,995,344

Consolidated Statements of Operations - USD ($) shares in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net revenue:
Total net revenue	$ 252,399,000	$ 231,270,000	$ 147,683,000
Cost of revenue:
Total cost of revenue	112,570,000	98,165,000	71,911,000
Gross profit	139,829,000	133,105,000	75,772,000
Operating expenses:
Sales and marketing	106,947,000	76,762,000	52,766,000
Research and development	25,155,000	21,568,000	14,322,000
General and administrative	45,917,000	32,945,000	31,512,000
Total operating expenses	178,019,000	131,275,000	98,600,000
Income (loss) from operations	(38,190,000)	1,830,000	(22,828,000)
Interest and other income (expense), net:
Amortization of debt issuance costs	(1,355,000)	(710,000)	0
Interest Expense, Debt	(5,658,000)	(2,514,000)	0
Interest income (expense), net	2,600,000	(561,000)	(647,000)
Other income (expense), net	(3,676,000)	(1,845,000)	68,000
Total interest and other income (expense), net	(42,512,000)	1,555,000	(579,000)
Income (loss) before income taxes	(80,702,000)	3,385,000	(23,407,000)
Income tax provision	1,638,000	1,323,000	470,000
Net income (loss)	$ (82,340,000)	$ 2,062,000	$ (23,877,000)
Earnings Per Share [Abstract]
Basic (USD per share)	$ (4.39)	$ 0.12	$ (1.43)
Diluted (USD per share)	$ (4.39)	$ 0.11	$ (1.43)
Denominator:
Basic (in shares)	18,747	17,891	16,691
Diluted (in shares)	18,747	18,362	16,691
Convertible Debt
Interest and other income (expense), net:
Gain on extinguishment of PPP loan	$ (34,423,000)	$ 0	$ 0
PPP loan
Interest and other income (expense), net:
Gain on extinguishment of PPP loan	0	7,185,000	0
Products
Net revenue:
Total net revenue	228,796,000	205,703,000	125,113,000
Cost of revenue:
Total cost of revenue	100,254,000	83,048,000	58,325,000
Service
Net revenue:
Total net revenue	23,603,000	25,567,000	22,570,000
Cost of revenue:
Total cost of revenue	$ 12,316,000	$ 15,117,000	$ 13,586,000

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (82,340)	$ 2,062	$ (23,877)
Available-for-sale investments
Net change in unrealized gain (loss) on available-for-sale investments	(94)	0	(3)
Less: Reclassification adjustment for net losses on investments recognized during the year	0	0	63
Total change in unrealized gain (loss) on available-for-sale investments	(94)	0	60
Other comprehensive income (loss), net of tax	(94)	0	60
Comprehensive income (loss)	$ (82,434)	$ 2,062	$ (23,817)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Balance (in shares) at Dec. 31, 2019		14,315,586
Balance at Dec. 31, 2019	$ 45,942	$ 14	$ 82,346	$ (36,358)	$ (60)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for employee purchase plan (in shares)		56,751
Issuance of common stock for employee purchase plan	$ 632		632
Exercise of stock options (in shares)	73,227	73,227
Exercise of stock options	$ 947		947
Issuance of common stock in connection with public offering, net of issuance costs and repayment of convertible notes (in shares)		2,742,750
Issuance of common stock in connection with public offering, net of issuance costs and repayment of convertible notes	26,495	$ 3	26,492
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes (in shares)		490,918
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes	(3,428)	$ 1	(3,429)
Stock-based compensation expense	10,109		10,109
Net income (loss)	(23,877)			(23,877)
Net change in unrealized gain on available-for-sale investments	60				60
Balance (in shares) at Dec. 31, 2020		17,679,232
Balance at Dec. 31, 2020	56,880	$ 18	117,097	(60,235)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for employee purchase plan (in shares)		59,635
Issuance of common stock for employee purchase plan	$ 1,184		1,184
Exercise of stock options (in shares)	71,798	71,798
Exercise of stock options	$ 1,581		1,581
Purchase of capped call	(16,134)		(16,134)
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes (in shares)		184,679
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes	(2,176)		(2,176)
Stock-based compensation expense	13,172		13,172
Net income (loss)	2,062			2,062
Net change in unrealized gain on available-for-sale investments	$ 0
Balance (in shares) at Dec. 31, 2021	17,995,344	17,995,344
Balance at Dec. 31, 2021	$ 56,569	$ 18	114,724	(58,173)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for employee purchase plan (in shares)		49,306
Issuance of common stock for employee purchase plan	$ 1,873		1,873
Exercise of stock options (in shares)	39,960	39,960
Exercise of stock options	$ 850		850
Issuance of common stock in connection with public offering, net of issuance costs and repayment of convertible notes (in shares)		1,354,348
Issuance of common stock in connection with public offering, net of issuance costs and repayment of convertible notes	55,949	$ 2	55,947
Purchase of capped call	(57,132)		(57,132)
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes (in shares)		229,645
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes	(5,256)		(5,256)
Stock-based compensation expense	14,400		14,400
Net income (loss)	(82,340)			(82,340)
Net change in unrealized gain on available-for-sale investments	$ (94)				(94)
Balance (in shares) at Dec. 31, 2022	19,668,603	19,668,603
Balance at Dec. 31, 2022	$ (15,181)	$ 20	$ 125,406	$ (140,513)	$ (94)

Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Statement of Stockholders' Equity [Abstract]
Stock issued, offering cost	$ 0
Payment of issuance costs of capped call, gross	$ 452

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income (loss)	$ (82,340)	$ 2,062	$ (23,877)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock-based compensation	14,400	13,172	10,109
Depreciation and amortization	2,621	1,344	1,394
Amortization of contract acquisition costs	3,200	1,857	2,593
Amortization of debt issuance costs	1,355	710	0
Unrealized loss on foreign exchange forward	558	0	0
Impairment of capitalized cloud computing costs	0	182	805
Change in deferred tax assets	188	(135)	(220)
Provision for credit losses	1,787	87	2,144
Loss on sale of property and equipment	168	0	0
Change in right-of-use asset	2,653	2,292	2,522
Other	0	1	513
Changes in assets and liabilities:
Accounts receivables	(15,900)	(9,574)	(2,550)
Inventories	(36,305)	(10,936)	5,413
Other current assets and prepaid expenses	(10,049)	(5,766)	(3,164)
Other long-term assets	(8,091)	(7,128)	(2,067)
Accounts payable	20,979	1,207	(6,034)
Accrued liabilities	3,282	21,608	161
Operating lease liabilities	(2,597)	(2,151)	(1,598)
Deferred revenue	2,673	(412)	(2,985)
Income tax liability	0	0	(93)
Net cash provided by (used in) operating activities	(66,995)	1,235	(16,934)
Cash flows from investing activities:
Acquisition of property and equipment	(22,698)	(1,015)	(1,279)
Disposal of property and equipment	0	71	30
Proceeds from sales of marketable investments	0	0	5,648
Proceeds from maturities of marketable investments	158,000	0	28,050
Purchase of marketable investments	(329,484)	0	(26,060)
Net cash provided by (used in) investing activities	(194,182)	(944)	6,389
Cash flows from financing activities:
Proceeds from exercise of stock options and employee stock purchase plan	2,723	2,765	1,579
Purchase of capped call	(56,680)	(16,134)	0
Payment of issuance costs of capped call	(352)	0	0
Proceeds from PPP loan	0	0	7,167
Proceeds from issuance of convertible notes	360,000	138,250	0
Payment of issuance costs of convertible notes	(11,202)	(4,717)	0
Extinguishment of convertible notes	(45,776)	0	0
Gross proceeds from equity offering	0	0	28,798
Issuance costs on the public offering	0	0	(2,303)
Taxes paid related to net share settlement of equity awards	(5,256)	(2,176)	(3,428)
Payments on finance lease obligation	(520)	(462)	(537)
Net cash provided by financing activities	242,937	117,526	31,276
Net increase (decrease) in cash, cash equivalents, and restricted cash	(18,240)	117,817	20,731
Cash, cash equivalents, and restricted cash at beginning of year	164,864	47,047	26,316
Cash, cash equivalents, and restricted cash at end of year	146,624	164,864	47,047
Supplemental disclosure of cash flow information:
Cash paid for interest	5,486	1,663	63
Cash paid (refunded) for income taxes, net of (refunds) payments	2,004	891	(1)
Supplemental non-cash investing and financing activities:
Issuance of common stock in repayment of convertible notes	55,947	0	0
Assets acquired under finance lease	689	828	43
Assets acquired under operating lease	908	123	11,735
Gain on extinguishment of PPP loan	0	7,185	0
Debt issuance cost accrued	635	0	0
Capped call costs accrued	100	0	0
Transfer of inventory to property and equipment	12,180	0	0
Acquisition of property, equipment and software	4,131	0	0
PPP loan
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Gain on extinguishment of PPP loan	0	(7,185)	0
Convertible Debt
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Gain on extinguishment of PPP loan	$ 34,423	$ 0	$ 0

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Operations and Principles of Consolidation

Cutera, Inc. (“Cutera” or the “Company”) develops, manufactures, distributes, and markets energy-based product platforms for medical practitioners, enabling them to offer treatments to their customers. In addition, the Company distributes third-party manufactured skincare products. The Company currently markets the following system platforms: AviClear, enlighten, excel, truSculpt, Secret PRO, Secret RF, and xeo — each of which enables medical practitioners to perform procedures including treatment for acne, body contouring, skin resurfacing and revitalization, hair and tattoo removal, removal of benign pigmented lesions, and vascular conditions. Several of the Company’s systems offer multiple hand pieces and applications, providing customers the flexibility to upgrade their systems. The sales of (i) systems, system upgrades, and hand pieces (collectively “Systems” revenue); (ii) leasing of AviClear devices for acne treatment ("AviClear" revenue); (iii) replacement hand pieces, Titan, truSculpt 3D,truSculpt and truFex cycle refills, as well as single use disposable tips applicable to Secret PRO, and Secret RF (“Consumables” revenue); and (iv) the distribution of third-party manufactured skincare products (“Skincare” revenue); are collectively classified as “Products” revenue. In addition to Products revenue, the Company generates revenue from the sale of post-warranty service contracts, parts, detachable hand piece replacements (except for Titan, truSculpt 3D, truSculpt and truFlex) and service labor for the repair and maintenance of products that are out of warranty, all of which are collectively classified as “Service” revenue.

The Company’s corporate headquarters and U.S. operations are located in Brisbane, California, where the Company conducts manufacturing, warehousing, research and development, regulatory, sales and marketing, service, and administrative activities. The Company also maintains regional distribution centers (“RDCs”) in selection locations across the U.S. These RDCs serve as forward warehousing for systems and service parts in various geographies. The Company markets, sells and services the Company’s products through direct sales and service employees in North America (including Canada), Australia, Austria, Belgium, France, Germany, Hong Kong, Japan, the Netherlands, Spain, Switzerland, and the United Kingdom. Sales and services outside of these direct markets are made through a worldwide distributor network in over 37 countries. The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated.

Basis of Presentation

The Consolidated Financial Statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”).

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the amounts reported of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the accompanying notes, and the reported amounts of revenue and expenses during the reported periods. Actual results could differ materially from those estimates.

On an ongoing basis, management evaluates its estimates, including those related to warranty obligations, sales commissions, allowance for credit losses, sales allowances, valuation of inventories, fair value of goodwill, useful lives of property and equipment, impairment testing for long-lived-assets, assumptions regarding variables used in calculating the fair value of the Company's equity awards, expected achievement of performance based vesting criteria, management performance bonuses, the standalone selling price of the Company's products and services, the period of benefit used to capitalize and amortize contract acquisition costs, variable consideration, contingent liabilities, recoverability of deferred tax assets, assumptions used in operating and sales-type lease classification, implicit and incremental borrowing rates related to the Company’s leases, residual value of leased equipment, lease term and effective income tax rates. Management bases estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

Risks and Uncertainties

The Company's future results of operations involve a number of risks and uncertainties. Factors that could affect the Company's future operating results and cause actual results to vary materially from expectations include, but are not limited to, rapid technological change, continued acceptance of the Company's products, stability of global financial markets, cybersecurity

breaches and other disruptions that could compromise the Company’s information or results, business disruptions that are caused by natural disasters or pandemic events, management of international activities, competition from substitute products and larger companies, ability to obtain and maintain regulatory approvals, government regulations and oversight, patent and other types of litigation, ability to protect proprietary technology from counterfeit versions of the Company's products, the successful execution of new product launches, strategic relationships and dependence on key individuals.

Recently Adopted Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326):"Measurement of Credit Losses on Financial Instruments", which replaces the incurred loss methodology with an expected credit loss methodology that is referred to as the current expected credit loss (CECL) methodology. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The amendments in this update are required to be applied using the modified retrospective method with an adjustment to accumulated deficit and are effective for the Company beginning with fiscal year 2020, including interim periods. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables, available for sale securities and held-to-maturity debt securities. An entity with available for sale securities and trade receivables will be required to use historical loss information, current conditions, and reasonable and supportable forecasts to determine expected lifetime credit losses. Pooling of assets with similar risk characteristics is also required. The Company adopted ASU 2016-13 on January 1, 2020 on a modified retrospective basis. Upon adoption, the standard did not have a material impact on the consolidated financial statements.

The Company identified trade receivables and available-for-sale debt securities as impacted by the new guidance. However, the Company determined that the historical losses related to these available-for-sale debt securities are not material as the Company invests in high grade short-term securities.

The Company establishes an allowance for credit losses on trade receivables based on the credit quality of clients, current economic conditions, the age of the accounts receivable balances, historical loss information, and current conditions and forecasted information, and write-off amounts against the allowance when they are deemed uncollectible.

In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement”, to improve the fair value measurement reporting of financial instruments. The amendments in this update require, among other things, added disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update eliminate, among other things, disclosure of the reasons for and amounts of transfers between Level 1 and Level 2 for assets and liabilities that are measured at fair value on a recurring basis and an entity's valuation processes for Level 3 fair value measurements. The amendments in this update became effective for the Company beginning with fiscal year 2020. Retrospective application is required for all amendments in this update except the added disclosures, which should be applied prospectively. The adoption of the amendments in this update did not have a material impact on the Company’s consolidated financial position and results of operations.

In December 2019, the FASB issued ASU No. 2019-12 “Income Taxes (Topic 740)-Simplifying the Accounting for Income Taxes,” to remove certain exceptions and improve consistency of application, including, among other things, requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Company adopted this guidance starting January 1, 2021. The adoption of this guidance did not have a material impact on the Company’s consolidated financial position and results of operations.

In August 2020, the FASB issued ASU No. 2020-6, Debt – Debt with Conversion and Other Options (Topic 470) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Topic 815), to simplify the accounting for convertible debt instruments by removing the beneficial conversion and cash conversion separation models for convertible instruments. Under the amendment, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives or that do not result in substantial premiums accounted for as paid-in capital. The update also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the computation of diluted earnings per share. The Company early adopted the guidance on a prospective basis effective January 1, 2021. See section Computation of Net Income (Loss) per Share.

Recently Issued Accounting Pronouncements Not Yet Adopted by the Company

The Company reviewed all recently issued, but not yet effective, accounting pronouncements and does not expect the future adoption of any such pronouncements will have a material impact on the Company’s consolidated financial statements.

Revenue recognition

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for promised goods or services. The Company’s performance obligations are satisfied either over time or at a point in time. Revenue from performance obligations that are transferred to customers over time accounted for approximately 8%, 11% and 15%, respectively, of the Company’s total revenue for the years ended December 31, 2022, 2021 and 2020.

The Company has certain system sale arrangements that contain multiple products and services. For these bundled sale arrangements, the Company accounts for individual products and services as separate performance obligations if they are distinct. The Company’s products and services are distinct if a customer can benefit from the product or service on its own or with other resources that are readily available to the customer, and if the Company’s promise to transfer the products or service to the customer is separately identifiable from other promises in the sale arrangements. The Company’s system sale arrangements can include all or a combination of the following performance obligations: the system and software license (considered as one performance obligation), system accessories (hand pieces), training, other accessories, extended service contracts, marketing services, and time and materials services.

For the Company’s system sale arrangements that include an extended service contract, the period of service commences at the expiration of the Company’s standard warranty offered at the time of the system sale. The Company considers the extended service contracts terms in the arrangements that are legally enforceable to be performance obligations. Other than extended service contracts and marketing services, which are satisfied over time, the Company generally satisfies all performance obligations at a point in time. Systems, system accessories (hand pieces), service contracts, training, and time and materials services are also sold on a stand-alone basis, and these performance obligations are satisfied at a point in time. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation on a relative standalone selling price basis.

The Company leases the AviClear device to customers and receives a fixed annual license fee over the term of the arrangement and revenue related to treatments performed by the lessee.

Nature of Products and Services

Systems

Systems revenue is generated from the sale of systems and from the sale of upgrades to existing systems. A system consists of a console that incorporates a universal graphic user interface, a laser or other energy-based module, control system software and high voltage electronics, as well as one or more hand pieces. In certain applications, the laser or other energy-based module is contained in the hand piece, such as with the Company’s Pearl and Pearl Fractional applications, rather than within the console.

The Company offers customers the ability to select the system that best fits their practice at the time of purchase and then to cost-effectively add applications to their system as their practice grows. This provides customers the flexibility to upgrade their systems whenever they choose and provides the Company with a source of additional Systems revenue.

The system or upgrade and the right to use the embedded software represent a single performance obligation as the software license is integral to the functionality of the system or upgrade.

For systems sold directly to end-customers that are credit approved, revenue is recognized when the Company transfers control to the end-customer, which occurs when the product is shipped to the customer or when the customer receives the product, depending on the nature of the arrangement. When collectability is not established in advance of receipt of payment from the customer, revenue is recognized upon the later of the receipt of payment or the satisfaction of the performance obligation. For systems sold through credit approved distributors, revenue is recognized at the time of shipment to the distributor.

The Company typically receives payment for its system consoles and other accessories within 30 days of shipment. Certain international distributor arrangements allow for longer payment terms.

AviClear

The Company leases the AviClear device to customers and receives a fixed annual license fee over the term of the arrangement and variable lease income related to treatments performed by the lessee. The Company classifies its lease income as product revenue and classifies the AviClear contracts as operating leases. The fixed annual license fee is recognized evenly over the period of the lease contract on a straight-line basis. The treatment fee is recognized in the period the treatment protocol is initiated.

Consumables and other accessories

The Company classifies its customers' purchases of replacement cycles for truSculpt and truFlex, as well as replacement hand pieces, xeo and truSculpt 3D hand pieces, and single use disposable tips applicable to Secret PRO, and Secret RF as Consumable revenue. The Secret PRO and Secret RF products' single use disposable tips must be replaced after every treatment. The Company’s systems offer multiple hand pieces and applications, which allow customers to upgrade their systems.

Skincare products

The Company sells third-party manufactured skincare products in Japan. The skincare products are purchased from a third-party manufacturer and sold to medical offices and licensed physicians. The Company warrants that the skincare products are free of significant defects in workmanship and materials for 90 days from shipment. The Company acts as the principal in this arrangement, as the Company determines the price to charge customers for the skincare products and controls the products before they are transferred to the customer. The Company recognizes revenue for skincare products at a point in time upon shipment.

Extended service contract

The Company offers post-warranty services to its customers through extended service contracts that cover parts and labor for a term of one to three years. Service contract revenue is recognized over time, using a time-based measure of progress, as customers benefit from the service throughout the service period. The Company also offers services on a time-and-materials basis for systems and detachable hand piece replacements. Revenue related to services performed on a time-and-materials basis is recognized when performed.

Training

Sales of systems to customers include training on the use of the system to be provided within 180 days of purchase. The Company considers training a separate performance obligation as customers can immediately benefit from the training together with the customer’s system. Training is also sold separately from systems. The Company recognizes revenue for training when the training is provided.

Significant Judgments

The Company determines standalone selling price ("SSP") for each performance obligation as follows:

•Systems: The SSPs for systems are based on directly observable sales in similar circumstances to similar customers.

•Extended warranty/Service contracts: SSP is based on observable price when sold on a standalone basis to similar customers.

Loyalty Program

The Company operates a customer loyalty program for qualified customers located in the U.S. and Canada. Under the loyalty program, customers accumulate points based on their purchasing levels which can be redeemed for such rewards as the right to attend the Company’s advanced training event for a product, or a ticket for the Company’s annual forum. A customer’s account must be in good standing to receive the benefits of the rewards program. Rewards are earned on a quarterly basis and must be used in the following quarter. All unused rewards are forfeited. The fair value of the reward earned by loyalty program members is included in accrued liabilities and recorded as a reduction. of net revenue at the time the reward is earned. As of December 31, 2022, and December 31, 2021, the accrual for the loyalty program included in accrued liabilities was $0.3 million, and $0.5, respectively.

Deferred Sales Commissions

Incremental costs of obtaining a contract related to the sale of a system, which consist primarily of commissions and related payroll taxes, are capitalized, and amortized on a straight-line basis over the expected period of benefit, except for costs that are recognized when product is sold. The Company uses the portfolio method to recognize the amortization expense related to these capitalized costs related to initial contracts and such expense is recognized over a period associated with the revenue of the related portfolio, which is generally two to three years.

Total capitalized costs for the year ended December 31, 2022 and December 31, 2021 were $2.0 million and $2.7 million, respectively. Amortization expenses for these assets were $2.4 million, $1.9 million and $2.6 million, respectively, during the years ended December 31, 2022, 2021 and 2020 and were included in sales and marketing expense in the Company’s consolidated statement of operations. Total capitalized costs as of December 31, 2022 and December 31, 2021 were $3.8 million and $4.2 million, respectively, and are included in Other long-term assets in the Company’s consolidated balance sheet.

Cash and Cash Equivalents

The Company invests its cash primarily in money market funds. All highly liquid investments with stated maturities of three months or less from date of purchase are classified as cash equivalents; all highly liquid investments with stated maturities of greater than three months are classified as marketable investments. Credit card receivables, that are collected in a short period of time are also classified as cash and cash equivalents. The majority of the Company’s cash and investments are held in U.S. banks and the Company's foreign subsidiaries maintain a limited amount of cash in their local banks to cover short term operating expenses.

Fair Value of Financial Instruments

Fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels of inputs that may be used to measure fair value, in accordance with ASC 820, as follows:

•Level 1: inputs, which include quoted prices in active markets for identical assets or liabilities;

•Level 2: inputs, which include observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. For available-for-sale securities, the Company reviews trading activity and pricing as of the measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from various third-party data providers. These inputs either represent quoted prices for similar assets in active markets or have been derived from observable market data; and

•Level 3: inputs, which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies, or similar valuation techniques, as well as significant management judgment or estimation.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

Allowance for Sales Returns and Credit Losses

The allowance for sales returns represents the Company’s estimates of potential future product returns and other allowances related to current period product revenue. The Company analyzes historical returns and is based on the Company's analysis of current economic trends.

The allowance for credit losses on trade receivables is based on the credit quality of customers, current economic conditions, the age of the accounts receivable balances, historical loss information, current conditions and forecasted information. The Company writes off trade receivables when they are deemed uncollectible.

Concentration of Credit Risk and Other Risks and Uncertainties

The Company operates in markets that are highly competitive and rapidly changing. Significant technological changes, shifting customer needs, the emergence of competitive products or services with new capabilities and other factors could negatively impact the Company’s operating results.

The Company is also subject to risks related to changes in the value of the Company’s significant balance of financial instruments. Financial instruments that potentially subject the Company to concentrations of risk consist principally of cash, cash equivalents, marketable investments, and accounts receivable. The Company’s cash and cash equivalents are primarily invested in deposits and money market accounts with two major financial institutions in the U.S. In addition, the Company has operating cash balances in banks in each of the international locations in which it operates. Deposits in these banks may exceed the federally insured limits or any other insurance provided on such deposits, if any. The Company has accounts with SVB. On March 10, 2023, California regulators shut down SVB and the FDIC was appointed as SVB’s receiver.

On March 26, 2023, the FDIC announced that it had entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company under which all deposits of the former Silicon Valley Bank were assumed by First-Citizens Bank & Trust Company. To date, the Company has not experienced any losses on its deposits of cash, cash equivalents, and marketable investments and continues to have access to these funds.

Accounts receivable are recorded net of an allowance for credit losses and are typically unsecured and are derived from revenue earned from worldwide customers. The Company controls credit risk through credit approvals, credit limits, and monitoring procedures. The Company performs credit evaluations of its customers and maintains an allowance for potential credit losses. As of December 31, 2022, and 2021, no customer represented more than 10% of the Company’s net accounts receivable. During the years ended December 31, 2022, 2021, and 2020, domestic revenue accounted for 43%, 42% and 41%, respectively, of total revenue, while international revenue accounted for 57%, 58% and 59%, respectively, of total revenue. No single customer represented more than 10% of total revenue for any of the years ended December 31, 2022, 2021 and 2020.

Supplier concentration

The Company relies on third parties for the supply of components of its products, as well as third-party logistics providers. In instances where these parties fail to perform their obligations, the Company may be unable to find alternative suppliers or satisfactorily deliver its products to its customers. The Company largest supplier provided approximately 10%, 14% and 9% of the Company's total purchases in the years ended December 31, 2022, 2021 and 2020, respectively.

Inventories

Inventories are stated at the lower of cost and net realizable value, cost being determined on a standard cost basis which approximates actual cost on a first-in, first-out basis. Net realizable value is the estimated selling prices in the ordinary course of the Company’s business, less reasonably predictable costs of completion, disposal, and transportation. The cost basis of the Company’s inventory is reduced for any products that are considered excessive or obsolete based upon assumptions about future demand and market conditions.

The Company includes demonstration units within inventories. Demonstration units are carried at cost and amortized over an estimated economic life of two years. Amortization expense related to demonstration units is recorded in products cost of revenue or in the respective operating expense line based on which function and purpose for which the demonstration units are being used. Proceeds from the sale of demonstration units are recorded as revenue and all costs incurred to refurbish the systems prior to sale are charged to product cost of revenue. As of December 31, 2022 and 2021, demonstration inventories, net of accumulated depreciation, included in finished goods inventory was $5.7 million and $3.7 million, respectively.

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation expense recognized is on a straight-line basis over the estimated useful lives of the assets, generally as follows:


			Useful Lives
Leasehold improvements			Lesser of useful life or term of lease
Equipment leasing			4.5
AviClear devices			7
Office equipment and furniture			3
Machinery and equipment			3

Upon sale or retirement of property and equipment, the costs and related accumulated depreciation and amortization are removed from the balance sheet and the resulting gain or loss is reflected in operating expenses. Maintenance and repairs are charged to operations as incurred.

Depreciation expense related to property and equipment for 2022, 2021 and 2020, was $2.2 million, $1.3 million, and $1.4 million, respectively. Amortization expense for vehicles leased under capital leases is included in depreciation expense.

Capitalized Cloud Computing Set-up Cost

The Company capitalizes certain set-up costs for the Company’s cloud computing arrangements. The capitalized implementation costs are then amortized over the term of the cloud computing arrangement inclusive of expected contract renewals, which are generally three years to ten years. As of December 31, 2022 and 2021, the Company had capitalized cloud computing set-up costs with a carrying amount of $0.4 million in Other current assets and prepaid expenses and $3.5 million in Other long-term assets. As of and during the year ended December 31, 2022 and 2021, there was $0.4 million, and no accumulated amortization and amortization expense recorded, respectively. The Company periodically assesses the capitalized asset for impairment and, when required, will record an associated impairment loss.

Goodwill and Intangible Assets

Goodwill and intangible assets with indefinite useful lives are not amortized but are tested for impairment at least annually during the fourth quarter of the Company’s fiscal year, or if circumstances indicate their value may no longer be recoverable. Goodwill represents the excess of the purchase price over the fair value of net identifiable assets and liabilities.

Beginning in the fourth quarter of 2022, the Company segregated its operations into two reportable business segments: (i) Cutera Core and (ii) AviClear. Goodwill was tested for impairment at the segment level. As of December 31, 2022, there has been no impairment of goodwill. All acquired intangible assets have been fully amortized as of December 31, 2022.

Warranty Obligations

The Company provides a 12-month warranty for direct sales to customers. For sales to distributors, the Company generally provides a 14-month warranty for parts only, with labor being provided to the end customer by the distributor.

After the original warranty period, maintenance and support are offered on an extended service contract basis or on a time and materials basis.

Accounting for Leases as a Lessee

Effective January 1, 2019, the Company adopted ASC 842, which established a right-of-use ("ROU") model requiring lessees to record a right-of-use asset ("ROU asset") and lease obligations on the balance sheet for all leases with terms longer than 12 months. The Company determines if an arrangement is a lease at inception. Where an arrangement is a lease the Company determines if it is an operating lease or a finance lease. At lease commencement, the Company records a lease liability and corresponding ROU asset. Lease liabilities represent the present value of the Company’s future lease payments over the expected lease term which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. The present value of the Company’s lease liability is determined using its incremental collateralized borrowing rate at lease inception. ROU assets represent its right to control the use of the leased asset during the lease and are recognized in an amount equal to the lease liability for leases with an initial term greater than 12 months. Over the lease term (operating leases only), the Company uses the effective interest rate method to account for the lease liability as lease payments are made and the ROU asset is amortized to consolidated statement of operations in a manner that results in straight-line expense recognition. The Company does not apply lease recognition requirements for short-term leases. Instead, the Company recognizes payments related to these arrangements in the consolidated statement of operations as lease costs on a straight-line basis over the lease term.

Accounting for Leases as a Lessor

See Note 13 to the consolidated financial statements for more information regarding leasing arrangements.

Cost of Revenue

Cost of revenue consists primarily of material, finished and semi-finished products purchased from third-party manufacturers, labor, stock-based compensation expenses, overhead involved in the Company's internal manufacturing processes, service contracts, technology license amortization and royalties, costs associated with equipment leasing, costs associated with product warranties and any inventory write-downs.

The Company's system sales include a control console, universal graphic user interface, control system software, high voltage electronics and a combination of applications (referred to as “hand pieces”). Hand pieces are programmed to have a limited number of uses to ensure the safety of the device to patients. The Company sells refurbished hand pieces, or "refills," of its Titan and truSculpt 3D products and provides for the cost of refurbishment of these hand pieces as part of cost of revenue. When customers purchase a replacement hand piece or are provided a replacement hand piece under a warranty or service contract, the Company ships the customer a previously refurbished unit. Upon the receipt of the expended hand piece from the customer, the Company capitalizes the expended hand piece as inventory at the estimated fair value. Cost of service revenue includes the costs incurred to refurbish hand pieces.

Research and Development Expenditures

Research and development costs are expensed as incurred and include costs related to research, design, development, testing of products, salaries, benefits and other headcount related costs, facilities, material, third-party contractors, regulatory affairs, clinical and development costs.

Advertising Costs

Advertising costs are included as part of sales and marketing expense and are expensed as incurred. Advertising expenses for 2022, 2021 and 2020 were $4.9 million, $2.1 million and $1.2 million, respectively.

Stock-based Compensation

The Company accounts for share-based employee compensation plans using the fair value recognition and measurement provisions under U.S. GAAP. The Company’s share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense on a straight- line basis over the requisite service period. To estimate the fair value of an award, the Company uses the Black-Scholes option pricing model. The following inputs are used in this model:

Expected Term: The expected term represents the weighted-average period that the stock options are expected to be outstanding prior to being exercised. The Company determines expected term based on historical exercise patterns and its expectation of the time it will take for employees to exercise options still outstanding.

Expected Volatility: For the underlying stock price volatility of the Company’s stock, the Company estimates volatility solely based on the historical volatility of the Company's stock price.

Forfeitures: The amount of stock-based compensation recognized during a period is based on the value of the portion of the awards that are ultimately expected to vest. Under ASC 718, the Company has made an accounting policy to estimate forfeitures at the time awards are granted and revises, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

Risk-Free Interest Rate: The risk-free interest rate is based on the U.S. treasury yield curve in effect at the time of grant for the expected term of the stock option.

The fair value of stock options ("options") on the grant date is estimated using the Black-Scholes option-pricing model using the single-option approach. The Black-Scholes option pricing model requires the use of highly subjective and complex assumptions, including the option's expected term and the price volatility of the underlying stock, to determine the fair value of award. The Company accounts for all stock options awarded to non-employees at the fair value of the award issued on the day of the grant.

The fair value of restricted stock units (“RSUs”) granted are measured on the grant date. The quantity of the RSUs units granted is calculated by dividing a fixed award amount determined by the Board on the grant date by the average closing price of the Company’s common stock over the 50-day period ending on the day of the grant.

The fair value of Performance Stock Units (“PSUs”) that have operational measurement goals are measured on the grant date using the closing price of the Company’s common shares on the grant date. The quantity of the PSUs granted is calculated by

dividing a fixed award amount determined by the Board on the grant date by the average closing price of the Company’s common stock over the 50-day period ending on the day of the grant.

See Note 8 - "Stockholders’ Equity, Stock Plans and Stock-Based Compensation Expense" for a detailed discussion of the Company’s stock plans and share-based compensation expense.

Income Taxes

The Company is subject to income taxes in the United States and several foreign jurisdictions. Significant judgment is required in determining the Company’s provision (benefit) for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws.

The Company records a provision (benefit) for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, the Company recognizes deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company recognizes the deferred income tax effects of a change in tax rates in the period of enactment. The Company records a valuation allowance to reduce the Company’s deferred tax assets to the net amount that the Company believes is more likely than not to be realized.

The Company recognizes tax benefits from uncertain tax positions if the Company believes that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. Although the Company believes it has adequately reserved for the Company’s uncertain tax positions (including net interest and penalties), the Company can provide no assurance that the final tax outcome of these matters will not be different. The Company makes adjustments to these reserves in accordance with income tax accounting guidance when facts and circumstances change, such as the closing of a tax audit. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences may impact the provision (benefit) for income taxes in the period in which such determination is made. The Company records interest and penalties related to the Company’s uncertain tax positions in the Company’s provision (benefit) for income taxes.

The Company’s effective tax rates have differed from the statutory rate primarily due to changes in the valuation allowance, foreign operations, research and development tax credits, state taxes, and certain benefits realized related to stock option activity. The Company’s current effective tax rate does not assume U.S. taxes on undistributed profits of foreign subsidiaries. These earnings could become subject to incremental foreign withholding or U.S. federal and state taxes, should they either be deemed or actually remitted to the U.S. The Company’s future effective tax rates could be adversely affected by earnings being lower in countries where the Company has lower statutory rates and being higher in countries where the Company has higher statutory rates, or by changes in tax laws, accounting principles, interpretations thereof, net operating loss carryback, research and development tax credits, and due to changes in the valuation allowance of its U.S. deferred tax assets. In addition, the Company is subject to the examination of the Company’s income tax returns by the Internal Revenue Service and other tax authorities. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of the Company’s provision for income taxes.

Undistributed earnings of the Company’s foreign subsidiaries at December 31, 2022 are considered to be indefinitely reinvested and, accordingly, no provision for state income taxes has been provided thereon. Due to the Transition Tax and Global Intangible Low-Tax Income (“GILTI”) regimes as enacted by the 2017 Tax Act, those foreign earnings will not be subject to federal income taxes when actually distributed in the form of a dividend or otherwise. The Company, however, could still be subject to state income taxes and withholding taxes payable to various foreign countries. The amounts of taxes which the Company could be subject to are not material to the accompanying financial statements.

On March 27, 2020, the U.S. federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act changed several of the existing U.S. corporate income tax laws by, among other things, increasing the amount of deductible interest, allowing companies to carry back certain Net Operating Losses (“NOLs”) and increasing the amount of NOLs that corporations can use to offset income. The CARES Act did not have a material impact on the Company's income tax provision, deferred tax assets and liabilities, and related taxes payable.

Computation of Net Income (Loss) per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method and the if-converted method. Dilutive potential common shares include outstanding stock options, restricted stock units, performance stock units, employee stock purchase plan (ESPP) shares and conversion shares under the convertible notes. On January 1, 2021, the Company adopted the accounting standard update to simplify the accounting for convertible debt instruments. The Company now uses the if-converted method for its convertible notes in calculating the diluted net income (loss) per share, and includes the effect of potential share settlement for the convertible notes, if the effect is dilutive. The diluted net income per share is computed with the assumption that the Company will settle the convertible debt in shares, rather than cash.

Diluted earnings per share is the same as basic earnings per share for the periods in which the Company had a net loss because the inclusion of outstanding common stock equivalents would be anti-dilutive.

Comprehensive Income (Loss)

Comprehensive income (loss) includes all changes in stockholders’ equity except those resulting from investments or contributions by stockholders. For the periods presented, the accumulated other comprehensive income (loss) consisted solely of the unrealized gains or losses on the Company's available-for-sale investments, net of tax.

Foreign Currency

The U.S. Dollar is the functional currency of the Company’s subsidiaries and the Company’s reporting currency. Monetary assets and liabilities are re-measured into U.S. Dollars at the applicable period end exchange rate. Sales and operating expenses are re-measured at average exchange rates in effect during each period. Losses resulting from foreign currency transactions are included in net income (loss) are $3.6 million and $1.8 million in the year ended December 31, 2022 and 2021, respectively, and were insignificant for the year ended December 31, 2020. The effect of exchange rate changes on cash and cash equivalents was insignificant for each of the three years ended December 31, 2022.

Segments

The Company operates in two segments. Revenue is attributed to a geographic region based on the location of the end customer. See Note 12 – "Segment Information and Revenue by Geography and Products" for details relating to revenue by geography.

Cash, Cash Equivalents, Marketable Securities, and Restricted Cash

12 Months Ended

Dec. 31, 2022

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents, Marketable Securities, and Restricted Cash

CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES, AND RESTRICTED CASHThe Company determines the appropriate classification of its investments in marketable securities at the time of purchase and re-evaluates such designation at each balance sheet date. The Company’s marketable securities have been classified and accounted for as available-for-sale securities. Investments with remaining maturities of more than one year are viewed by the Company as available to support current operations and are classified as current assets under the caption marketable investments in the accompanying consolidated balance sheets. Investments in available-for-sale debt securities are measured at fair value under the guidance in ASC 320. Credit losses on impaired available-for-sale debt securities are recognized through an allowance for credit losses. Under ASC 326, credit losses recognized on an available-for-sale debt security should not reduce the net carrying amount of the available-for-sale debt security below its fair value. Any changes in fair value unrelated to credit are recognized as an unrealized gain or loss in other comprehensive income.

The following table summarizes the Company's cash and cash equivalents and marketable investments (in thousands):


December 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Cash and cash equivalents	N/A		N/A		N/A		$	145,924
Current restricted cash	N/A		N/A		N/A		700
Cash, cash equivalents, and restricted cash as reported within the Consolidated Statements of Cash Flows	N/A		N/A		N/A		146,624
Marketable investments - U.S. Treasury	171,484		8		(102)		171,390
Total	$	171,484	$	8	$	(102)	$	318,014


December 31, 2021	Fair Market Value
Cash and cash equivalents	$	164,164
Non-current restricted cash	700
Cash, cash equivalents, and restricted cash as reported within the Consolidated Statements of Cash Flows	$	164,864

At December 31, 2022 and December 31, 2021, the net unrealized losses were $0.1 million and nil, respectively, and were related to interest rate changes on available-for-sale marketable investments. The Company has concluded that it is more-likely-than-not that the securities will be held until maturity or the recovery of their cost basis. No securities were in an unrealized loss position for more than 12 months. The restricted cash balance relates to an outstanding letter of credit for $0.7 million provided to a supplier.

All of the marketable investments will mature less than one year from December 31, 2022.

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company measures certain financial assets at fair value, including cash and cash equivalents.

The fair value hierarchy contains the following three levels of inputs that may be used to measure fair value, in accordance with ASC 820:

•Level 1 inputs, which include quoted prices in active markets for identical assets or liabilities;

•Level 2 inputs, which include observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from various third-party data providers. These inputs either represent quoted prices for similar assets in active markets or have been derived from observable market data; and

•Level 3 inputs, which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies, or similar valuation techniques, as well as significant management judgment or estimation.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considering counterparty credit risk in its assessment of fair value.

As of December 31, 2022, financial assets and liabilities measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above were as follows (in thousands):


December 31, 2022	Level 1		Level 2
Cash equivalents:
Money market funds	$	26,408	$	—
Marketable investments:
Available-for-sale securities	171,390		—
Derivative liabilities:
Foreign exchange forward	$	—	$	(558)
Total	$	197,798	$	(558)

At December 31, 2021, the Company had no money market funds or marketable investments.

See Note 14 - Debt for the carrying amount and estimated fair value of the Company’s 2.25% Convertible Senior Notes due 2026 (the “2026 Notes”), 2.25% Convertible Senior Notes due 2028 (the “2028 Notes”) and, 4.00% Convertible Senior Notes due 2029 (the “2029 Notes”), together with the 2026 Notes and 2028 Notes, (the “Convertible Notes”).

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Instruments

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

DERIVATIVE INSTRUMENTS

The Company uses foreign currency exchange forward contracts to manage the impact of currency exchange fluctuations on earnings and cash flow. The Company does not enter into derivative instruments for speculative purposes. The Company is exposed to potential credit loss in the event of nonperformance by counterparties on its outstanding derivative instruments but the Company does not anticipate nonperformance by any of its counterparties. Should a counterparty default, the Company's maximum loss exposure would be the potential asset balance of the instrument.

The cash flow effect of the derivative instruments settlement is recorded in cash flow from operations.

Dollar amounts in thousands:

December 31, 2022

Classification

Foreign Exchange Forward

(Dollars in thousands)

Gross notional amount

N/A

6,128

Fair value

Accrued liabilities

558

Unrealized loss

Other income (expense), net

(558)

Balance Sheet Detail

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Detail

BALANCE SHEET DETAIL

Inventories, net

Valuation adjustments for excess and obsolete inventory, reflected as a reduction of inventory at December 31, 2022 and 2021, were $3.6 million and $4.9 million, respectively. Inventories, net of these adjustments, consist of the following (in thousands):


	December 31,
	2022		2021
Raw materials	$	36,323	$	24,035
Work in process	2,117		2,124
Finished goods	25,188		13,344
Total	$	63,628	$	39,503

Other current assets and prepaid expenses

Other current assets and a prepaid expenses, consists of the following (in thousands):


	December 31,
	2022		2021
Deposits with vendors	$	13,917	$	4,389
Foreign tax receivable	7,147		7,612
Prepayments	2,972		2,544

Total	$	24,036	$	14,545

Property and Equipment, net

Property and equipment, net, consists of the following (in thousands):


	December 31,
	2022		2021
Leasehold improvements	$	793	$	826
Equipment leasing	—		107
AviClear devices	19,904		—
Office equipment and furniture	1,936		1,527
Machinery and equipment	5,106		3,983
Assets under construction	17,876		—
	45,615		6,443
Less: Accumulated depreciation	(5,247)		(3,424)
Property and equipment, net	$	40,368	$	3,019

Materials related to the AviClear acne treatment device were classified as inventories at December 31, 2021. The Company received 510(k) clearance from the U.S. Food and Drug Administration in March 2022 and in April 2022 placed the first devices in service. Beginning in April 2022, the materials used in the construction of the AviClear device have been classified as Assets under construction and the manufactured devices, including devices available for lease and devices placed in service, have been classified as AviClear devices.

Goodwill

Goodwill is related to the acquisition of Iridex’s aesthetic business unit, and customer relationships in the Benelux countries acquired from a former distributor in 2013. Goodwill was $1.3 million as of December 31, 2022 and 2021. There were no impairments or additions to goodwill during the years ended December 31, 2022 or 2021.

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):


	December 31,
	2022		2021
Bonus and payroll-related accruals	$	18,951	$	21,649
Accrued sales tax	9,066		9,110
Liability for inventory in transit	7,028		4,265
Sales and marketing accruals	5,347		4,808
Product warranty	3,254		3,947
Other accrued liabilities	13,806		10,321
Total	$	57,452	$	54,100

Product Warranty

12 Months Ended

Dec. 31, 2022

Product Warranties Disclosures [Abstract]

Product Warranty

PRODUCT WARRANTY

The Company has a direct field service organization in North America (including Canada). Internationally, the Company provides direct service support in Australia, Austria, Belgium, France, Germany, Hong Kong, Japan, the Netherlands, and Switzerland, as well as through third-party service providers in Spain and the United Kingdom. In several other countries, where the Company does not have a direct presence, the Company provides service through a network of distributors and third-party service providers.

After the original warranty period, maintenance and support are offered on an extended service contract basis or on a time and materials basis. The Company provides the estimated cost to repair or replace products under standard warranty at the time of sale. Costs in connection with extended service contracts are recognized at the time when costs are incurred. The following table provides the changes in the product standard warranty accrual for the years ended December 31, 2022 and 2021 (in thousands):


	December 31,
	2022		2021
Balance at beginning of year	$	3,947	$	4,124
Add: Accruals for warranties issued during the period	3,710		5,135
Less: Settlements made during the period	(4,403)		(5,312)
Balance at end of year	$	3,254	$	3,947

Deferred Revenue

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Deferred Revenue

DEFERRED REVENUE

The Company records deferred revenue when revenue is to be recognized subsequent to invoicing. For extended service contracts, the Company generally invoices customers at the beginning of the extended service contract term. The Company’s extended service contracts typically have one to three-year terms. The Company leases the AviClear device to customers and receives a fixed annual license fee over the term of the arrangement and variable lease income related to treatments performed by the lessee. The fixed annual license fee is recognized evenly over the period of the lease contract on a straight-line basis. Deferred revenue also includes payments for training. Approximately 88% of the Company’s deferred revenue balance of $13.5 million as of December 31, 2022, will be recognized over the next 12 months.

The following table provides changes in the deferred revenue balance for the years ended December 31, 2022 and 2021 (in thousands):


	December 31,
	2022		2021
Balance at beginning of year	$	10,825	$	11,237
Add: Payments received	21,984		17,139
Less: Revenue recognized from current period sales	(9,928)		(7,006)
Less: Revenue recognized from beginning balance	(9,383)		(10,545)
Balance at end of year	$	13,498	$	10,825

Costs for extended service contracts were $6.3 million, $8.3 million and $8.2 million, respectively, for the years ended December 31, 2022, 2021 and 2020.

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense

STOCKHOLDERS’ EQUITY, STOCK PLANS AND STOCK-BASED COMPENSATION EXPENSE

As of December 31, 2022, the Company had one class of issued common stock with a par value of $0.001. Authorized capital stock consists of 55,000,000 shares comprised of two classes: (i) 50,000,000 shares of Common Stock, of which 19,668,603 shares are issued and outstanding as of December 31, 2022, and (ii) 5,000,000 shares of preferred stock, par value $0.001 per share (“Preferred Stock”), of which no shares are issued and outstanding.

Issuances of Common Stock

On April 21, 2020, the Company issued and sold an aggregate of 2,742,750 shares of the Company’s common stock, par value $0.001 per share at a price to the public of $10.50 per share. The shares include the full exercise of the underwriter’s option to purchase an additional 357,750 shares of common stock. The Company received net proceeds from the offering of approximately $26.5 million, after deducting underwriting discounts, commissions and offering expenses of $2.3 million.

As of December 31, 2022, the Company had the following stock-based employee compensation plans:

2004 Equity Incentive Plan

In 1998, the Company adopted the 1998 Stock Plan, or 1998 Plan, under which 4,650,000 shares of the Company’s common stock were reserved for issuance to employees, directors and consultants.

In 2004, the Board of Directors (“the Board”) adopted the 2004 Equity Incentive Plan. A total of 1,750,000 shares of common stock were originally reserved for issuance pursuant to the 2004 Equity Incentive Plan. In addition, the shares reserved for issuance under the 2004 Equity Incentive Plan included shares reserved but un-issued under the 1998 Plan and shares returned to the 1998 Plan as the result of termination of options or the repurchase of shares. In 2012 the stockholders approved a “fungible share” provision whereby each full-value award issued under the 2004 Equity Incentive Plan results in a requirement to subtract 2.12 shares from the shares reserved under the Plan.

2019 Equity Incentive Plan

At the Company’s Annual Meeting of Stockholders in 2019, the Company’s stockholders approved the 2019 Equity Incentive Plan, which is an amendment and restatement of the 2004 Equity Incentive Plan. The 2004 Equity Incentive Plan was amended to: (i) increase the number of shares available for future grant by 700,000 (in addition to the 9,701,192 shares provided under the 2004 Equity Incentive Plan); (ii) extend the term of the 2004 Equity Incentive Plan to the date of the Annual Meeting of the Company’s stockholders in 2029; (iii) amend the 2004 Equity Incentive Plan to eliminate the requirement for awards granted on or after June 14, 2019 that any shares subject to awards with an exercise price less than fair market value on the date of such grant will be counted against the Plan as 2.12 shares for each full value share awarded in accordance with the 2004 Equity Incentive Plan; (iv) amend the 2004 Equity Incentive Plan to remove the requirement that any shares subject to awards with an exercise price less than fair market value on the date of such grant will be counted against the Plan as 2.12 shares for each full value share awarded; (v) amend the 2004 Equity Incentive Plan to remove certain provisions relating to the “performance based compensation” exception under Section 162(m) of the Internal Revenue Code of 1986, as amended; (vi) include a minimum one-year vesting period with respect to awards granted under the 2004 Equity Incentive Plan.

Also in 2019, the Board also amended the Company’s Stock Ownership Guidelines to require all officers (as defined by Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended) to hold at least 50% of any shares received pursuant to stock options, stock appreciation rights, vested restricted stock awards (“RSAs”), restricted stock units (“RSUs”), or performance stock units (“PSUs”) (net of taxes) for a minimum of one year following vesting and delivery.

In 2019, the Board also adopted a clawback policy to permit recovery of certain compensation paid to Named Executive Officers (as defined in Item 402 of Regulation S-K) of the Company if the Compensation Committee of the Board determines that a Named Executive Officer (i) has violated law, the Company’s Code of Business Conduct and Ethics, or any significant ethics or compliance policies, and (ii) such conduct results in material financial or reputational harm, or results in a need for a restatement of the Company’s consolidated financial statements. The Amended and Restated Plan provides for the grant of incentive stock options, non-statutory stock options, RSAs, RSUs, stock appreciation rights, PSUs, and other stock or cash awards.

In 2020, the Company's stockholders approved an amendment and restatement of the 2019 Equity Incentive Plan and approved an additional 600,000 shares, available for future grants.

In June 2021, stockholders approved an amendment and restatement of the 2019 Equity Incentive Plan and approved an additional 450,000 shares, available for future grants.

In June 2022, stockholders approved an amendment and restatement of the 2019 Equity Incentive Plan and approved an additional 600,000 shares, available for future grants.

The Company’s non-employee directors are granted $150,000 of RSUs or non-statutory stock options annually on the date of the Company’s Annual Meeting of stockholders. These grants cliff-vest on the one-year anniversary of the grant date. In the years ended December 31, 2022, 2021 and 2020, the Company issued 12,496, 41,301 and 35,735 RSUs, respectively, to its non-employee directors. In the year ended December 31, 2022, the Company issued 18,135 non-statutory stock options to its non-employee directors.

In the years ended December 31, 2022, 2021 and 2020, the Company’s Board of Directors granted 191,993, 219,686 and 405,248 RSUs, respectively, to its executive officers, directors and certain members of the Company’s management related to annual grants and new hire grants. The new hire RSUs vest quarterly on each of the first four annual anniversaries of the grant date and the annual grant RSUs vest one quarter on the first annual anniversary and monthly thereafter for 36 months. The Company measured the fair market values of the underlying stock on the dates of grant and recognizes the stock-based compensation expense over the vesting period. On the vesting date, the Company issues common stock, net of stock withheld to settle the recipient’s minimum statutory tax liability. In addition to the 2020 annual RSU grants, on April 1, 2020, the Company issued RSUs to settle bonuses owed to management under the 2019 Management Bonus Program. In the past, the Company has paid these bonuses with cash. However, due to the economic conditions resulting from COVID-19, fully vested shares were issued in lieu of cash. The Company issued 209,981 shares related to this bonus payment to management and recognized $2.6 million in stock-based compensation expense. The Company also recorded an equivalent reduction in bonus expense as a result of the settlement of the bonus in shares.

In the years ended December 31, 2022, 2021 and 2020 the Company’s Board of Directors granted its executive officers and certain senior management employees 169,785, 178,222, and 76,157 PSUs, respectively, related to its annual grants. The 2020 grant vested on the first anniversary subject to the achievement of pre-established performance goals. The 2021 and 2022 grants vest one half on the first anniversary subject to the achievement of pre-established performance goals and the remaining half vests on the second anniversary subject to the recipient’s continued service. In addition to the 2021 annual PSU grants, in July 2021, the Company granted 265,002 PSUs to certain employees. This grant consists of four separate vesting tranches that will vest from April 2023 through June 2025 upon the achievement of operational milestones associated with each tranche and continued service.

In July 2019, the Board awarded its new CEO, David H. Mowry, 67,897 PSUs, which vested over four years from 2019 through 2022. These PSUs are subject to certain performance-based criteria related to achieving financial metrics in the Board approved annual budgets.

In August 2020, the Board awarded its new CFO, Rohan Seth, 60,000 stock options, which vests over five years, and 22,423 PSUs, which vests over 2.5 years and is subject to performance-based criteria relating to the achievement of certain department and financial goals.

On January 12, 2004, the Board of Directors adopted the 2004 Employee Stock Purchase Plan. Under the 2004 Employee Stock Purchase Plan, or 2004 ESPP, eligible employees are permitted to purchase common stock at a discount through payroll deductions. The 2004 ESPP offering and purchase periods are for six months. The 2004 ESPP has an evergreen provision based on which shares of common stock eligible for purchase are increased on the first day of each fiscal year by an amount equal to the lesser of:

•600,000 shares;

•2.0% of the outstanding shares of common stock on such date; or

•an amount as determined by the Board of Directors.

The price of the common stock purchased is the lower of 85% of the fair market value of the common stock at the beginning or end of the six-month offering period. In the years ended December 31, 2022, 2021, and 2020, under the 2004 ESPP, the Company issued 49,306, 59,635, and 56,751 shares, respectively. At December 31, 2022, 378,586 shares remained available for future issuance.

Option and Award Activity

Activity under the 2004 Plan and 2019 Equity Incentive Plan is summarized as follows:


		Options Outstanding
	Shares Available For Grant	Number of Shares	Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (in millions ) (1)
Balances as of December 31, 2019	761,705	295,699	$	25.52	3.19	$	3.04
Additional shares reserved(2)	600,000
Options granted	(71,088)	71,088	$	14.85
Options exercised	—	(73,227)	$	12.91
Options cancelled (expired or forfeited)	76,553	(76,553)	$	36.65
Stock awards granted	(804,949)	—	—
Stock awards cancelled (expired or forfeited)	522,949	—	—
Balances as of December 31, 2020	1,085,170	217,007	$	22.35	3.75	$	1.47
Additional shares reserved(2)	450,000
Options granted	(172,139)	172,139	$	30.71
Options exercised	—	(71,798)	$	22.02
Options cancelled (expired or forfeited)	30,173	(30,173)	$	37.14
Stock awards granted	(744,949)	—	—
Stock awards cancelled (expired or forfeited)	299,092	—	—
Balances as of December 31, 2021	947,347	287,175	$	25.89	4.92	$	4.46
Additional shares reserved(2)	600,000
Options granted	(296,238)	296,238	$	40.95
Options exercised	—	(39,960)	$	21.28
Options cancelled (expired or forfeited)	29,518	(29,518)	$	34.91
Stock awards granted	(374,274)	—	—
Stock awards cancelled (expired or forfeited)	164,572	—	—
Balances as of December 31, 2022	1,070,925	513,935	$	34.41	6.63	$	5.99
Exercisable as of December 31, 2022		127,863	$	27.54	3.24	$	2.15
Vested and expected to vest, net of estimated forfeitures, as of December 31, 2022		483,844	$	34.27	6.52	$	5.69

(1)Based on the closing stock price of $44.22 of the Company’s stock on December 31, 2022, $41.32 on December 31, 2021, $24.11 on December 31, 2020 and $35.81 on December 31, 2019.

(2)Approved by the board of directors and stockholders in 2022, 2021 and 2020.

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value and is the aggregate difference between the Company’s closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options. The aggregate intrinsic amount changes based on the fair market value of the Company’s common stock. Total intrinsic value of options exercised in 2022, 2021 and 2020 was $1.1 million, $1.3 million, and $0.4 million, respectively. The options outstanding and exercisable at December 31, 2022 were in the following exercise price ranges:


Exercise Prices			Number Outstanding	Contractual Life (in years)	Number Exercisable
$10.79	—	$14.04	5,709	1.26	5,709
	$14.10		60,000	2.59	28,000
$18.55	—	$25.70	12,775	0.91	12,775
	$29.28		73,667	5.26	31,803
	$32.87		48,806	4.93	22,291
	$33.45		150,857	9.14	—
$36.55	—	$41.39	91,719	6.54	22,540
	$42.33		17,335	9.91	—
	$47.40		4,745	1.96	4,745
	$63.62		48,322	9.25	—
$10.79	—	$63.62	513,935	6.63	127,863

Stock Awards (RSU and PSU) Activity Table

Information with respect to RSUs and PSUs activity is as follows (in thousands):


	Number of Shares	Weighted-Average Grant- Date Fair Value		Aggregate Fair Value(1) (in thousands)			Aggregate Intrinsic Value(2) (in thousands)
Outstanding at December 31, 2019	1,104,802	$	22.10				$	37,442
Granted	667,694	$	20.66
Vested(3)	(684,491)	$	17.82	$	12,036	(4)
Forfeited	(308,248)	$	23.24
Outstanding at December 31, 2020	779,757	$	23.96				$	18,800
Granted	744,949	$	40.16
Vested(3)	(254,946)	$	22.94	$	8,287	(5)
Forfeited	(236,856)	$	27.33
Outstanding at December 31, 2021	1,032,904	$	35.00				$	42,680
Granted	374,274	$	45.36
Vested(3)	(340,836)	$	29.04	$	15,443	(6)
Forfeited	(160,131)	$	41.48
Outstanding at December 31, 2022	906,211	$	40.39				$	40,073

(1)Represents the value of the Company’s stock on the date that the restricted stock units and performance stock units vest.

(2)Based on the closing stock price of the Company’s stock of $44.22 on December 31, 2022, $41.32 on December 31, 2021, $24.11 on December 31, 2020, and $35.81 on December 31, 2019.

(3)The number of restricted stock units vested includes shares that the Company withheld on behalf of the employees to satisfy the statutory tax withholding requirements.

(4)On the grant date, the fair value for these vested awards was $12.2 million.

(5)On the grant date, the fair value for these vested awards was $5.8 million.

(6)On the grant date, the fair value for these vested awards was $9.9 million.

Stock-Based Compensation

Stock-based compensation expense for the years ended December 31, 2022, 2021 and 2020 was as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Stock options	$	2,175	$	782	$	370
RSUs	6,979		5,305		8,849
PSUs	4,430		6,591		666
ESPP	816		494		224
Total stock-based compensation expense	$	14,400	$	13,172	$	10,109

Total stock-based compensation expense recognized during the years ended December 31, 2022, 2021 and 2020 was recorded in the Consolidated Statement of Operations as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Cost of revenue	$	1,665	$	1,408	$	1,665
Sales and marketing	4,998		3,160		3,385
Research and development	2,405		2,784		1,669
General and administrative	5,332		5,820		3,390
Total stock-based compensation expense	$	14,400	$	13,172	$	10,109

Valuation Assumptions and Fair Value of Stock Options and ESPP Grants

The Company uses the Black-Scholes option pricing model to estimate the fair value of options granted under its equity incentive plans and rights to acquire stock granted under its employee stock purchase plan. The weighted average estimated fair values of the employee stock options and rights granted under the employee stock purchase plan and the weighted average assumptions used to calculate the grant date fair values, are as follows:


	Stock Options									Stock Purchase Plan (ESPP)
	2022			2021			2020			2022			2021			2020
Expected term (in years)	4.03			3.97			4.84			0.49			0.50			0.50
Risk-free interest rate	1.99		%	0.48		%	0.15		%	3.79		%	0.14		%	0.11		%
Volatility	66		%	66		%	63		%	69		%	36		%	76		%
Dividend yield(1)	—		%	—		%	—		%	—		%	—		%	—		%
Weighted average estimated fair value at grant date	$	19.76		$	15.09		$	7.63		$	15.77		$	9.64		$	6.13

(1)The Company has not paid dividends since its inception.

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company files income tax returns in the U.S. federal and various state and local jurisdictions and foreign jurisdictions. The Company’s income (loss) before provision for income taxes consisted of the following (in thousands):


	Year Ended December 31,
	2022		2021		2020
U.S.	$	(84,189)	$	(356)	$	(25,793)
Foreign	3,487		3,741		2,386
Income (loss) before income taxes	$	(80,702)	$	3,385	$	(23,407)

The components of the provision for income taxes are as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	52	$	—	$	—
State	126		(87)		(53)
Foreign	1,275		1,512		747
Total Current	1,453		1,425		694
Deferred:
Federal	2		2		2
State	1		1		1
Foreign	182		(105)		(227)
Total Deferred	185		(102)		(224)
Tax provision	$	1,638	$	1,323	$	470

The Company’s net deferred tax assets consist of the following (in thousands):


	December 31,
	2022		2021
Net operating loss carryforwards	$	21,443	$	18,274
Stock-based compensation	2,594		3,160
Other accruals and reserves	4,592		2,863
Credits	14,908		13,634
Accrued warranty	778		939
Depreciation and amortization	1,857		2,226
Section 174 Costs	7,578		—
Other	1,541		977
Operating lease liability	3,384		3,784
Deferred tax asset before valuation allowance	58,675		45,857
Valuation allowance	(53,118)		(40,485)
Deferred tax asset after valuation allowance	5,557		5,372
Deferred contract acquisition costs	(1,763)		(990)
Goodwill	(138)		(124)
Right of use asset	(3,066)		(3,480)
Net deferred tax asset (liability)	$	590	$	778

The differences between the U.S. federal statutory income tax rates to the Company’s effective tax rate are as follows:


	Year Ended December 31,
	2022		2021		2020
U.S. federal statutory income tax rate	21.00	%	21.00	%	21.00	%
State tax rate	(0.16)		(2.55)		2.77
Meals and entertainment	(0.47)		9.28		(0.65)
Permanent differences	(0.07)		1.11		(2.87)
Stock-based compensation	0.89		(13.08)		(1.07)
Extinguishment of PPP loan	—		(44.59)		—
Debt extinguishment costs	(8.48)		—		—
Excess compensation	(1.34)		7.88		—
Foreign rate differential	(0.76)		17.03		(1.05)
General business credit	0.78		(17.95)		2.74
Valuation allowance	(11.41)		72.82		(25.51)
Change in prior year reserves	—		(0.08)		0.55
Deferred true-up	(2.02)		(11.76)		2.08
Effective tax rate	(2.04)	%	39.11	%	(2.01)	%

As of December 31, 2022, the Company recorded a valuation allowance of $53.1 million for the portion of the deferred tax asset that it does not expect to be realized. The valuation allowance on the Company’s net deferred taxes increased by $12.6 million and $2.2 million during the years ended December 31, 2022 and 2021, respectively. The changes in valuation allowance are primarily due to additional U.S. deferred tax assets and liabilities incurred in the respective year. The Company has $0.6 million of net deferred tax assets in foreign jurisdictions, which management believes are more-likely-than-not to be realized given the expectation of future earnings in these jurisdictions. The Company continues to monitor the realizability of the U.S. deferred tax assets taking into account multiple factors, including the results of operations and magnitude of excess tax deductions for stock-based compensation. The Company intends to continue maintaining a full valuation allowance on its U.S. deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. Release of all, or a portion, of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded.

At December 31, 2022, the Company had approximately $87.7 million and $45.3 million of federal and state net operating loss carryforwards, respectively, available to offset future taxable income. The federal and state net operating loss carryforwards, if not utilized, will generally begin to expire in 2029 through 2039. Approximately $51.2 million of total federal net operating loss carryforwards were generated after December 31, 2017 and have no expiration. At December 31, 2022, the Company had research and development tax credits available to offset federal and California tax liabilities in the amount of $7.5 million and $9.3 million, respectively. Federal credits will begin to expire in 2024 and California state tax credits have no expiration.

Federal and state laws can impose substantial restrictions on the utilization of net operating loss and tax credit carryforwards in the event of an “ownership change,” as defined in Section 382 of the Internal Revenue Code. The Company has determined that no significant limitation would be placed on the utilization of the Company’s net operating loss and tax credit carryforwards due to prior ownership changes.

No deferred tax liabilities have been recorded relating to the earnings of the Company’s foreign subsidiaries since all such earnings are intended to be indefinitely reinvested. The amount of the unrecognized deferred tax liability associated with these earnings is immaterial.

Uncertain Tax Positions

The Company establishes reserves for uncertain tax positions based on the largest amount that is more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company performs a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement.

Although the Company believes it has adequately reserved for its uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be different. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest and penalties.

The Company files U.S., state, and foreign income tax returns in jurisdictions with varying statutes of limitations. Tax years after 2009 remain subject to examination by U.S. federal and California state tax authorities due to the Company’s net operating loss and credit carryforwards. For significant foreign jurisdictions, tax years after 2017 remain subject to examination by their respective tax authorities.

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits, excluding related interest and penalties, in December 31, 2020 to December 31, 2022 (in thousands):


	Year Ended December 31,
	2022		2021		2020
Balance at beginning of year	$	2,746	$	1,864	$	1,426
Decreases related to prior year tax positions	(36)		(37)		(32)

Increases related to current year tax positions	1,015		919		470
Balance at end of year	$	3,725	$	2,746	$	1,864

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

NET INCOME (LOSS) PER SHARE

As of December 31, 2022, the Company’s convertible notes were potentially convertible into 8,354,036 shares of common stock. The Company used the if-converted method to calculate the potential dilutive effect of the conversion spread on diluted net income per share for the years ended December 31, 2022 and 2021.

The denominator for diluted net income (loss) per share does not include any effect from the capped call transactions the Company entered into concurrently with the issuance of the convertible notes, as this effect would be anti-dilutive. In the event of conversion of a convertible note, shares delivered to the Company under the capped call will offset the dilutive effect of the shares that the Company would issue under the convertible notes.

For the years ended December 31, 2022 and 2020, basic loss per common share and diluted loss per common share are the same in each respective period, as the inclusion of any potentially issuable shares would be anti-dilutive.

The following table sets forth the computation of basic and diluted net loss and the weighted average number of shares used in computing basic and diluted net loss per share (in thousands, except per share data):


	Year Ended December 31,
	2022		2021		2020
Numerator:
Net income (loss)	$	(82,340)	$	2,062	$	(23,877)
Denominator:
Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic	18,747		17,891		16,691
Dilutive effect of incremental shares and share equivalents:
Options	—		68		—
RSUs	—		294		—
PSUs	—		104		—
ESPP	—		5		—
Weighted average shares of common stock outstanding used in computing net income (loss) per share, diluted	18,747		18,362		16,691
Net income (loss) per share:
Net income (loss) per share, basic	$	(4.39)	$	0.12	$	(1.43)
Net income (loss) per share, diluted	$	(4.39)	$	0.11	$	(1.43)

The following numbers of shares outstanding, prior to the application of the treasury stock method and the if-converted method, were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect (in thousands):


	Year Ended December 31,
	2022	2021	2020
Capped call	10,780	4,167	—
Convertible debt	8,697	4,167	—
Options to purchase common stock	514	166	244
Restricted stock units	460	32	724
Employee stock purchase plan shares	38	—	87
Performance stock units	446	120	68
Total	20,935	8,652	1,123

Defined Contribution Plan	12 Months Ended
Defined Contribution Plan	Dec. 31, 2022
Retirement Benefits [Abstract]
Defined Contribution Plan	DEFINED CONTRIBUTION PLAN In the U.S., the Company has an employee savings plan (“401(k) Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Eligible employees may make voluntary contributions to the 401(k) Plan up to 100% of their annual compensation, subject to statutory annual limitations. In 2022, 2021 and 2020, the Company made discretionary contributions under the 401(k) Plan of $0.5 million, $0.3 million and $0.2 million, respectively. For the Company’s Japanese subsidiary, a discretionary employee retirement plan has been established. In addition, for some of the Company’s other foreign subsidiaries, the Company deposits funds with insurance companies, third-party trustees, or into government-managed accounts consistent with the requirements of local laws. The Company has fully funded or accrued for its obligations as of December 31, 2022, and the related expense for each of the three years then ended was not significant.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

Segment Information and Revenue by Geography and Products

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Information and Revenue by Geography and Products

SEGMENT INFORMATION AND REVENUE BY GEOGRAPHY AND PRODUCTS

Segment reporting is based on the “management approach,” following the method that management organizes the Company’s reportable segments for which separate financial information is made available to, and evaluated regularly by, the chief operating decision maker in allocating resources and in assessing performance. The Company’s chief operating decision maker ("CODM") is its Chief Executive Officer ("CEO"), who makes decisions on allocating resources and assessing performance.

Beginning in the fourth quarter of 2022, the Company segregates its operations into two reportable business segments: (i) Cutera Core and (ii) AviClear. This segregation aligns the Company’s operating business segments with the way the CEO reviews the Company's operations as a result of the commercial release of the Company’s AviClear acne treatment device in April 2022.

The Company measures the financial results of its reportable segments using an internal performance measure that excludes General and administrative expenses.


	Year Ended December 31,
	2022		2021		2020
	(Dollars in thousands)
Net revenue
Cutera Core	$	247,943	$	231,270	$	147,683
AviClear	4,456		—		—
Total net revenue	$	252,399	$	231,270	$	147,683

Income (loss) from operations
Cutera Core	$	20,862	$	30,181	$	(4,796)
AviClear	(28,012)		(9,445)		—
Segment income (loss) from operations	(7,150)		20,736		(4,796)
Items not allocated to segments
Stock-based compensation	(14,400)		(13,172)		(10,109)
ERP implementation	(9,211)		(1,498)		(1,139)
Depreciation and amortization	(5,821)		(3,188)		(3,987)
Legal fees, severance, and other	(1,608)		(1,048)		(2,797)
Consolidated income (loss) from operations	(38,190)		1,830		(22,828)
Interest and other income (expense), net	(42,512)		1,555		(579)
Consolidated income (loss) before income taxes	$	(80,702)	$	3,385	$	(23,407)

Capital spending
Cutera Core	$	1,780	$	438	$	1,279
AviClear	20,918		577		—
Total segment capital spending	22,698		1,015		1,279
Corporate	—		—		—
Total capital spending	$	22,698	$	1,015	$	1,279

Total assets
Cutera Core	$	154,978	$	76,860
AviClear	47,406		6,342
Total segment assets	202,384		83,202
Corporate	318,604		197,091
Total assets	$	520,988	$	280,293

As of December 31, 2022 and 2021, 99.8% and 99.0% of long-lived assets were in the United States, respectively.

The following table presents a summary of revenue by geography for the year ended December 31, 2022, 2021 and 2020 (in thousands):


	Year Ended December 31,
	2022		2021		2020
Revenue mix by geography:
United States	$	107,453	$	96,629	$	61,238
Japan	64,920		70,235		43,265
Asia, excluding Japan	21,873		12,649		10,707
Europe	20,882		19,444		11,185
Rest of the world, other than United States, Asia and Europe	37,271		32,313		21,288
Total consolidated revenue	$	252,399	$	231,270	$	147,683
Revenue mix by product category:
Systems	$	163,637	$	139,633	$	90,765
AviClear	4,456		—		—
Consumables	18,203		16,401		9,287
Skincare	42,500		49,669		25,061
Total product revenue	228,796		205,703		125,113
Service	23,603		25,567		22,570
Total consolidated revenue	$	252,399	$	231,270	$	147,683

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

COMMITMENTS AND CONTINGENCIES

LEASES

Lessee

The Company is a party to certain operating and finance leases for vehicles, office space and storage facilities. The Company’s material operating leases consist of office space, as well as storage facilities and finance leases consist of automobiles leases. The Company’s leases generally have remaining terms of one to 10 years, some of which include options to renew the leases for up to five years. The Company leases space for operations in the United States, Japan, Belgium, France, and Spain.

The Company determines if a contract contains a lease at inception. Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent the right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, the Company estimates the incremental secured borrowing rates corresponding to the maturities of the leases. The Company based the rate estimates on prevailing financial market conditions, credit analysis, and management judgment.

Tenant incentives used to fund leasehold improvements are recognized when earned and reduce the Company’s right-of-use asset related to the lease. These are amortized through the right-of-use asset as reductions of expense over the lease term.

Below is supplemental balance sheet information related to leases (in thousands):


		Year Ended December 31,
		2022		2021
Assets	Classification
Right-of-use assets	Operating lease right-of-use assets	$	12,831	$	14,627
Finance lease	Property and equipment, net	1,606		392
Total leased assets		$	14,437	$	15,019


		Year Ended December 31,
		2022		2021
Liabilities	Classification
Operating lease liabilities
Operating lease liabilities, current	Operating lease liabilities	$	2,810	$	2,419
Operating lease liabilities, non-current	Operating lease liabilities, net of current portion	11,352		13,483
Total Operating lease liabilities		$	14,162	$	15,902


		Year Ended December 31,
	Classification	2022		2021
Finance lease liabilities
Finance lease liabilities, current	Accrued liabilities	$	485	$	554
Finance lease liabilities, non-current	Other long-term liabilities	825		730
Total Finance lease liabilities		$	1,310	$	1,284

Lease costs during the twelve months ended December 31, 2022 and December 31, 2021 (in thousands):


		Year Ended December 31,
		2022		2021		2020
Finance lease cost	Amortization expense	$	643	$	484	$	431
Finance lease cost	Interest for finance lease	$	76	$	59	$	63
Operating lease cost	Operating lease expense	$	3,560	$	3,542	$	3,275

Cash paid for amounts included in the measurement of lease liabilities during the twelve months ended December 31, 2022 and December 31, 2021 were as follows (in thousands):


		Year Ended December 31,
		2022		2021		2020
Operating cash flow	Finance lease	$	78	$	56	$	63
Financing cash flow	Finance lease	$	520	$	462	$	537
Operating cash flow	Operating lease	$	2,526	$	3,092	$	2,139

Maturities of lease liabilities

Maturities of operating lease liabilities were as follows as of December 31, 2022 (in thousands):


	Amount
2023	$	3,420
2024	2,962
2025	2,932
2026	3,027
2027	3,130
Thereafter	464
Total lease payments	15,935
Less: imputed interest	(1,773)
Present value of lease liabilities	$	14,162

Vehicle Leases

As of December 31, 2022, the Company was committed to minimum lease payments for vehicles leased under long-term non-cancelable finance leases as follows (in thousands):


	Amount
2023	$	542
2024	604
2025	295
Total lease payments	1,441
Less: imputed interest	(131)
Present value of lease liabilities	$	1,310

Weighted-average remaining lease term and discount rate, as of December 31, 2022, were as follows:


Lease Term and Discount Rate
Weighted-average remaining lease term (years)
Operating leases	5.0
Finance leases	2.3
Weighted-average discount rate
Operating leases	4.7	%
Finance leases	6.2	%

Lessor - AviClear

Lessor revenue

The Company leases the AviClear device to customers and receives a fixed annual license fee over the term of the arrangement and revenue related to treatments performed by the lessee. The contractual term of the lease agreement is three years with a one-year autorenewal feature. Certain lease agreements' terms in excess of one year can be terminated without financial penalty, and these agreements are accounted for as having a lease term of one year. The AviClear lease agreements are accounted for as operating leases. The fixed annual license fee is recognized evenly throughout the period of the lease agreement on a straight-line basis. The treatment revenue is recognized in the period the lessee has the ability to perform the patient treatment.

The following table summarizes the amount of operating lease income included in product revenue in the accompanying consolidated statements of operations (in thousands):


	Year Ended December 31, 2022		Year Ended December 31, 2021
AviClear operating lease license fee revenue	$	922	$	—
AviClear operating lease revenue	3,534		—
Total AviClear revenue	$	4,456	$	—

The AviClear device being leased has a useful life of seven years. The Company expects that a device will be leased for two consecutive lease terms at the end of which its residual value will be immaterial.

The following is the minimum future lease payments as of December 31, 2022, under non-cancelable operating leases, assuming the minimum contractual lease term (in thousands):


	Amount
2023	$	610
2024	610
Total	$	1,220

Practical Expedients

The Company elected a practical expedient applied to operating leases to elect not to separate lease and nonlease components as long as the lease and at least one nonlease component have the same timing and pattern of transfer. As such, updates or upgrades on a when-and-if available basis to the AviClear device are combined with the operating lease revenue. The combined component is being accounted for under ASC 842. Additionally, the Company made an accounting policy election to present AviClear revenue net of sales and other similar taxes.

Capitalized sales commissions

Sales commissions related to obtaining AviClear lease agreements are accounted for as initial direct costs and are capitalized and amortized on a straight-line basis over the lease term. Total capitalized costs for the year ended December 31, 2022 were $3.8 million. Amortization expenses for these assets were $0.5 million during the year ended December 31, 2022, and were included in Sales and marketing expense in the Company’s consolidated statement of operations. Total capitalized costs as of December 31, 2022, were $3.3 million and are included in Other long-term assets in the Company’s consolidated balance sheet.

Lease installment costs

The Company capitalizes fulfillment costs incurred before AviClear lease commencement and these costs include freight, installation, and training costs. Total capitalized costs for the year ended December 31, 2022, were $1.7 million. Amortization expenses for these assets were $0.3 million during the year ended December 31, 2022, and were included in Cost of revenue in the Company’s consolidated statement of operations. Total lease installment costs as of December 31, 2022, were $1.4 million and are included in Other long-term assets in the Company’s consolidated balance sheet.

Purchase Commitments

The Company maintains certain open inventory purchase commitments with its suppliers to ensure a smooth and continuous supply for key components. The Company’s liability in these purchase commitments is generally restricted to an agreed-upon period. These periods can vary among different suppliers. Although open purchase orders are considered enforceable and legally binding, the terms generally allow the Company the option to cancel, reschedule, and adjust their requirements based on the Company's business needs prior to the delivery of goods or performance of services.

Indemnifications

In the normal course of the Company’s business, the Company enters into agreements that contain a variety of representations, warranties, and indemnification obligations. For example, the Company has entered into indemnification agreements with each of its directors and executive officers and certain key employees. The Company’s exposure under its various indemnification obligations is unknown and not reasonably estimable as they involve future claims that may be made against the Company. As such, the Company has not accrued any amounts for such obligations.

Contingencies

The Company is named from time to time as a party to other legal proceedings, product liability, intellectual property disputes, commercial disputes, employee disputes, and contractual lawsuits. A liability and related charge are recorded to earnings in the Company’s consolidated financial statements for legal contingencies when the loss is considered probable and the amount can be reasonably estimated. The assessment is re-evaluated each accounting period and is based on all available information, including discussion with outside legal counsel. If a reasonable estimate of a known or probable loss cannot be made, but a range of probable losses can be estimated, the low-end of the range of losses is recognized if no amount within the range is a better estimate than any other. If a material loss is reasonably possible, but not probable and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the consolidated financial statements. The Company expenses legal fees as incurred. Certain of the cases below are still in the preliminary stages, and the Company is not able to quantify the extent of its potential liability, if any, other than as described. The outcome of litigation is inherently unpredictable and subject to significant uncertainties. If any of these matters are resolved adversely to the Company, this could have a material adverse effect on its business, financial condition, results of operations, and cash flows. In addition, defending these legal proceedings is likely to be costly, which may have a material adverse effect on the Company's financial condition, results of operations and cash flows, and may divert management's attention from the day-to-day operations of its business.

As of December 31, 2022 and 2021, the Company had accrued $0.5 million and $0.7 million, respectively, related to various pending commercial and product liability lawsuits. The Company does not believe that a material loss in excess of accrued amounts is reasonably possible.

On January 31, 2020, Cutera filed a lawsuit against Lutronic Aesthetics in the United States District Court for the Eastern District of California. Lutronic employs numerous former Cutera employees. The complaint against Lutronic generally alleges claims for (1) misappropriation of trade secrets in violation of state and federal law; (2) violation of the Racketeer Influenced and Corrupt Organizations Act ("RICO"); (3) interference with contractual relations; (4) interference with prospective economic advantage; (5) unfair competition; and (6) aiding and abetting. On March 13, 2020, the court entered a temporary restraining order ("TRO") against Lutronic generally prohibiting it from using or disseminating Cutera confidential, proprietary, or trade secret information. The order also prohibits Lutronic, for two years, from using such information for the purpose of soliciting, or conducting business with, certain specified customers. On April 9, 2020, the parties stipulated to the entry of a preliminary injunction providing for the same relief afforded by the TRO. On August 4, 2022, Cutera filed a second amended complaint. In addition to the above referenced claims, Cutera alleges claims for violation of the Lanham Act, unlawful business practices, false advertising and trademark infringement. Discovery is ongoing. No trial date has been scheduled.

In March 2023, Serendia, LLC (“Serendia”), filed patent infringement complaints against the Company with the International Trade Commission (“ITC”) and in U.S. District Court for the District of Delaware alleging infringement of six Serendia patents by the Secret RF and Secret Pro systems, which the Company distributes in the U.S. on behalf of ILOODA Co. Ltd., a Korean company. If, following a successful third-party action for infringement, the Company cannot obtain a license for its products, the Company may have to stop selling the applicable products.

Debt

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Debt

DEBT

Convertible notes, net of unamortized debt issuance costs

The following table presents the outstanding principal amount and carrying value of the Company’s Convertible Notes (in thousands):


	Year Ended December 31,
	2022		2021
Notes due in 2026

Outstanding principal amount	$	69,125	$	138,250
Unamortized debt issuance costs	(1,553)		(4,007)
Carrying Value	$	67,572	$	134,243

Notes due in 2028
Outstanding principal amount	$	240,000	$	—
Unamortized debt issuance costs	(6,908)		—
Carrying Value	$	233,092	$	—

Notes due in 2029
Outstanding principal amount	$	120,000	$	—
Unamortized debt issuance costs	(4,205)		—
Carrying Value	$	115,795	$	—

Convertible notes, net	$	416,459	$	134,243

Issuance of convertible notes due in 2026

In March 2021, the Company issued $138.3 million aggregate principal amount of 2026 Notes in a private placement offering. The 2026 Notes bear interest at a rate of 2.25% per year payable semiannually in arrears on March 15 and September 15 of each year. Upon conversion, the 2026 Notes will be convertible into either cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. The Convertible notes are presented as Convertible notes, net of unamortized debt issuance costs, on the consolidated balance sheet. The aggregate proceeds from the offering were approximately $133.6 million, net of issuance costs, including initial purchasers fees.

Each $1,000 principal amount of the 2026 Notes is initially convertible into 30.1427 shares of the Company’s common stock, which is equivalent to a conversion price of approximately $33.18 per share. The conversion rate for the 2026 Notes is subject to adjustment for certain events as set forth in the indenture governing the 2026 Notes. The 2026 Notes will mature on March 15, 2026, unless earlier converted, redeemed, or repurchased in accordance with the terms of the 2026 Notes.

Issuance of convertible notes due in 2028

In May 2022, the Company issued $240.0 million aggregate principal amount of 2028 Notes. The 2028 Notes bear interest at a rate of 2.25% per year payable semiannually in arrears on June 1 and December 1 of each year. A total of $230.0 million of aggregate principal amount of 2028 Notes was issued in a private placement offering and concurrently with this private placement, the Company entered into a purchase agreement with Voce, an entity affiliated with J. Daniel Plants, the Company’s Executive Chairperson, pursuant to which the Company issued to Voce $10.0 million aggregate principal amount of 2028 Notes on the same terms and conditions. The aggregate proceeds from the offering of 2028 Notes were approximately $232.4 million, net of issuance costs, including initial purchaser fees.

The 2028 Notes bear interest at a rate of 2.25% per year payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2022. Upon conversion, the 2028 Notes will be convertible into either cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. Each $1,000 principal amount of the 2028 Notes is initially convertible into 18.9860 shares of the Company’s common stock, which is equivalent to an initial conversion price of approximately $52.67 per share. The conversion rate for the 2028 Notes is subject to adjustment for certain events as set forth in the indenture governing the 2028 Notes. The 2028 Notes will mature on March 1, 2028, unless earlier converted, redeemed, or repurchased in accordance with the terms of the 2028 Notes.

Issuance of convertible notes due in 2029

In December 2022, the Company issued $120.0 million aggregate principal amount of 2029 Notes in a private placement offering. The 2029 Notes bear interest at a rate of 4.00% per year payable semiannually in arrears on June 1 and December 1 of each year. Upon conversion, the 2029 Notes will be convertible into either cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. The Convertible notes are presented as Convertible notes, net of unamortized debt issuance costs, on the consolidated balance sheet. The aggregate proceeds from the offering were approximately $115.8 million, net of issuance costs, including initial purchasers fees.

Each $1,000 principal amount of the 2029 Notes is initially convertible into 17.1378 shares of the Company’s common stock, which is equivalent to a conversion price of approximately $58.35 per share. The conversion rate for the 2029 Notes is subject to adjustment for certain events as set forth in the indenture governing the 2029 Notes. The 2029 Notes will mature on June 1, 2029, unless earlier converted, redeemed, or repurchased in accordance with the terms of the 2029 Notes.

2026 Notes exchange

In May 2022, the Company entered into privately-negotiated exchange agreements with certain holders of the Company’s outstanding 2026 Notes with respect to the exchange of $45.8 million in cash (excluding $0.3 million in cash for the payment of accrued interest) and 1,354,348 shares of common stock for $69.1 million in aggregate principal amount of the Company’s outstanding 2026 Notes (the “2026 Notes Exchange”). Immediately following the closing of the 2026 Notes Exchange, approximately $69.1 million in aggregate principal amount of the 2026 Notes remained outstanding.

The 2026 Notes Exchange was accounted for as an extinguishment of debt. The Company recorded the difference between the proceeds paid and the carrying amount of the debt as an extinguishment loss, with a corresponding entry to common stock and Additional-paid-in capital for the issuance of the shares at the then-trading price of $41.31 per share. The table below presents the components of the Loss on debt extinguishment recorded in the Company's consolidated statements of operations for the year ended December 31, 2022 (amounts in thousands, except share and per share amounts):


Shares issued for repurchase	1,354,348
Closing price of Cutera common stock on May 24, 2022	$	41.31
Value of shares issued			$	55,948
Cash used for repurchase			45,776
Total shares and cash						$	101,724
2026 Note principal exchanged						(69,125)
Value of shares and cash exchanged						32,599

2026 Notes: Unamortized debt issuance costs on May 24, 2022			$	3,648
Portion of 2026 Note principal exchanged			50		%	$	1,824

Loss on debt extinguishment						$	34,423

Conversion and other features

2026 Notes

Holders may convert their 2026 Notes at their option prior to the close of business on the business day immediately preceding December 15, 2025, in multiples of $1,000 principal amount, only under the following circumstances:

•During any fiscal quarter (and only during such fiscal quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including, the last trading day of the immediately preceding fiscal quarter, is greater than or equal to 130% of the conversion price for the 2026 Notes on each applicable trading day;

•During the five-business day period after any five consecutive trading day period (the “measurement period”) in which the “trading price” per $1,000 principal amount of 2026 Notes for each trading day of the measurement period was less than 98%

of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day;

•The Company calls such convertible notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or

•Upon the occurrence of specified corporate events.

On or after December 15, 2025, and until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their 2026 Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances.

The circumstances described in the first bullet of the paragraph above were met during the third and fourth quarter of 2022. As of December 31, 2022, the 2026 Notes are convertible and this condition will remain until March 31, 2023. The 2026 Notes may also become convertible in future periods. Upon any conversion requests of the 2026 Notes, the Company would be required to pay or deliver cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company’s election with respect to such conversion requests. To the extent there are any conversion requests during the twelve months ending December 31, 2023, the Company intends to settle such conversion requests in shares of common stock. Therefore, as of December 31, 2022, the 2026 Notes have been included as Long-term debt on the consolidated balance sheet.

The Company may not redeem the 2026 Notes prior to March 20, 2024. On or after March 20, 2024, the Company may redeem for cash all or any portion of the 2026 Notes, at the Company’s option, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company elects to redeem fewer than all of the outstanding 2026 Notes, at least $50.0 million aggregate principal amount of 2026 Notes must be outstanding and not subject to redemption as of the relevant redemption notice date.

If a specified corporate event occurs, 2026 Note holders have the option to require the Company to repurchase any portion or all of their 2026 Notes in $1,000 principal increments for cash. The price for such repurchase is calculated as 100% of the principal amounts of 2026 Notes, plus accrued and unpaid interest to the day immediately preceding the Fundamental Change repurchase date. Additionally, holders of the 2026 Notes who convert in connection with a fundamental change are, under certain circumstances, entitled to an increase in conversion rate.

The 2026 Notes are general senior unsecured obligations that rank senior to any of the Company’s indebtedness that is explicitly subordinated to the 2026 Notes. The 2026 Notes have equal rank in right of payment with all existing and future unsecured indebtedness that is not subordinated to the 2026 Notes (including the 2028 Notes and 2029 Notes). The 2026 Notes will be junior to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness. The 2026 Notes do not contain any financial or operating covenants or any restrictions on the payment of dividends, the issuance of other indebtedness or the issuance or repurchase of securities by the Company.

The estimated fair value of the 2026 Notes was approximately $103.8 million as of December 31, 2022, which the Company determined through consideration of market prices. The fair value measurement is classified as Level 2, as defined in Note 3.

2028 Notes

Holders may convert their 2028 Notes at their option prior to the close of business on the business day immediately preceding March 1, 2028, in multiples of $1,000 principal amount, only under the following circumstances:

•During any fiscal quarter commencing after the fiscal quarter ending on September 30, 2022 (and only during such fiscal quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including, the last trading day of the immediately preceding fiscal quarter, is greater than or equal to 130% of the conversion price for the 2028 Notes on each applicable trading day;

•During the five-business day period after any five consecutive trading day period (the “measurement period”) in which the “trading price” per $1,000 principal amount of 2028 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day;

•The Company calls such 2028 Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or

•Upon the occurrence of specified corporate events.

On or after March 1, 2028, and until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their 2028 Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances.

The circumstances described in the first bullet of the paragraph above were not met during the fourth quarter of 2022. As of December 31, 2022, the 2028 Notes are not convertible and this condition will remain until March 31, 2023. The 2028 Notes may become convertible in future periods. Upon any conversion requests of the 2028 Notes, the Company would be required to pay or deliver, as the case may be, cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company’s election with respect to such conversion requests. To the extent there are any conversion requests during the twelve months ending December 31, 2023, the Company intends to settle such conversion requests in shares of common stock. Therefore, as of December 31, 2022, the 2028 Notes have been included as long-term debt on the consolidated balance sheet.

The Company may not redeem the 2028 Notes prior to June 5, 2025. On or after June 5, 2025, the Company may redeem for cash all or any portion of the 2028 Notes, at the Company’s option, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2028 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company elects to redeem fewer than all of the outstanding 2028 Notes, at least $100.0 million aggregate principal amount of 2028 Notes must be outstanding and not subject to redemption as of the relevant redemption notice date.

If a specified corporate event occurs, note holders have the option to require the Company to repurchase any portion or all of their 2028 Notes in $1,000 principal increments for cash. The price for such repurchase is calculated as 100% of the principal amounts of 2028 Notes, plus accrued and unpaid interest to the day immediately preceding the Fundamental Change repurchase date. Additionally, holders of the 2028 Notes who convert in connection with a fundamental change are, under certain circumstances, entitled to an increase in conversion rate.

The 2028 Notes are general senior unsecured obligations that rank senior to any of the Company’s indebtedness that is explicitly subordinated to the 2028 Notes. The 2028 Notes have equal rank in right of payment with all existing and future unsecured indebtedness that is not subordinated to the 2028 Notes (including the 2026 Notes and 2029 Notes). The 2028 Notes will be junior to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness. The 2028 Notes do not contain any financial or operating covenants or any restrictions on the payment of dividends, the issuance of other indebtedness or the issuance or repurchase of securities by the Company.

The estimated fair value of the 2028 Notes was approximately $249.3 million as of December 31, 2022, which the Company determined through consideration of market prices. The fair value measurement is classified as Level 2, as defined in Note 3.

2029 Notes

Holders may convert their 2029 Notes at their option prior to the close of business on the business day immediately preceding March 1, 2029 in multiples of $1,000 principal amount, only under the following circumstances:

•During any fiscal quarter commencing after the fiscal quarter ending March 31, 2023 (and only during such fiscal quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including, the last trading day of the immediately preceding fiscal quarter, is greater than or equal to 130% of the conversion price for the 2029 Notes on each applicable trading day;

•During the five-business day period after any five consecutive trading day period (the “measurement period”) in which the “trading price” per $1,000 principal amount of 2029 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day;

•The Company calls such 2029 Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or

•Upon the occurrence of specified corporate events.

On or after March 1, 2029, and until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their 2029 Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances.

The circumstances described in the bullets in the paragraph above were not met during the fourth quarter of 2022. As of December 31, 2022, the 2029 Notes are not convertible and this condition will remain until March 31, 2023. Upon any conversion requests of the 2029 Notes, the Company would be required to pay or deliver, as the case may be, cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company’s election with respect to such conversion requests. To the extent there are any conversion requests during the twelve months ending December 31, 2023, the Company intends to settle such conversion requests in shares of common stock. Therefore, as of December 31, 2022, the 2029 Notes have been included as Long-term debt on the consolidated balance sheet.

The Company may not redeem the 2029 Notes prior to December 5, 2025. On or after December 5, 2025, the Company may redeem for cash all or any portion of the 2029 Notes, at the Company’s option, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2029 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company elects to redeem fewer than all of the outstanding 2029 Notes, at least $$100.0 million aggregate principal amount of 2029 Notes must be outstanding and not subject to redemption as of the relevant redemption notice date.

If a specified corporate event occurs, 2029 Note holders have the option to require the Company to repurchase any portion or all of their 2029 Notes in $1,000 principal increments for cash. The price for such repurchase is calculated as 100% of the principal amounts of 2029 Notes, plus accrued and unpaid interest to the day immediately preceding the Fundamental Change repurchase date. Additionally, holders of the 2029 Notes who convert in connection with a fundamental change are, under certain circumstances, entitled to an increase in conversion rate.

The 2029 Notes are general senior unsecured obligations that rank senior to any of the Company’s indebtedness that is explicitly subordinated to the 2029 Notes. The 2029 Notes have equal rank in right of payment with all existing and future unsecured indebtedness that is not subordinated to the 2029 Notes (including the 2026 Notes and 2028 Notes). The 2029 Notes will be junior to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness. The 2029 Notes do not contain any financial or operating covenants or any restrictions on the payment of dividends, the issuance of other indebtedness or the issuance or repurchase of securities by the Company.

The estimated fair value of the 2029 Notes was approximately $122.2 million as of December 31, 2022, which the Company determined through consideration of market prices. The fair value measurement is classified as Level 2, as defined in Note 3.

Capped Call Transactions

In connection with the issuance of each series of the Convertible Notes, the Company entered into capped call transactions with certain option counterparties. The capped call transactions are generally intended to reduce the potential dilution of the Company's common stock upon any conversion or settlement of the applicable series of Convertible Notes or to offset any cash payment the Company is required to make in excess of the principal amount upon conversion of the applicable series of Convertible Notes, as the case may be, with such reduction or offset subject to a cap based on the cap price. If the market price per share of the Company’s common stock exceeds the cap price of the applicable capped call transactions, then the Company’s stock would experience some dilution and/or such capped call transactions would not fully offset the potential cash payments, in each case, to the extent the then-market price per share of its common stock exceeds the applicable cap price.

In connection with the offering of the 2026 Notes, the Company purchased from the option counterparties capped call options that in the aggregate relate to the total number of shares of the Company's common stock underlying the convertible notes, with a strike price equal to the conversion price of the convertible notes and with an initial cap price equal to $45.535, which represented a 75% premium over the last reported sale price of the Company's common stock of $26.02 per share on March 4, 2021, with certain adjustments to the settlement terms that reflect standard anti-dilution provisions. The capped call transactions expire over 40 consecutive scheduled trading days ending on March 12, 2026. The capped calls were purchased for $16.1 million.

In connection with the offering of the 2028 Notes, the Company purchased from the option counterparties capped call options that in the aggregate related to the total number of shares of the Company's common stock underlying the 2028 Notes sold to the initial purchasers in the offering of 2028 Notes, with a strike price equal to the conversion price of the 2028 Notes and with an initial cap price equal to $82.62, which represents a 100% premium over the last reported sale price of the Company's common stock of $41.31 per share on May 24, 2022, with certain adjustments to the settlement terms that reflect standard anti-

dilution provisions. These capped call transactions expire over 40 consecutive scheduled trading days ending on May 30, 2028. The capped calls were purchased for $32.0 million, inclusive of issuance costs.

In connection with the offering of the 2029 Notes, the Company purchased from the option counterparties capped call options that in the aggregate related to the total number of shares of the Company's common stock underlying the 2029 Notes sold to the initial purchasers in the offering of 2029 Notes, with a strike price equal to the conversion price of the 2029 Notes and with an initial cap price equal to $99.32, which represents a 100% premium over the last reported sale price of the Company's common stock of $49.66 per share on December 7, 2022, with certain adjustments to the settlement terms that reflect standard anti-dilution provisions. These capped call transactions expire over 40 consecutive scheduled trading days ending on May 30, 2029. The capped calls were purchased for $25.1 million, inclusive of issuance costs

The Company evaluated the capped call transactions under authoritative accounting guidance and determined that they should be accounted for as a separate transaction and classified as a net reduction to Additional paid-in capital within stockholders’ equity with no recurring fair value measurement recorded.

The Company early adopted ASU 2020-6, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40) on January 1, 2021. In accordance with Subtopic 470-20 and 815-40, as revised by ASU 2020-6, the Company records the convertible notes in long-term debt with no separation between the Convertible Notes and the conversion option. Each reporting period, the Company will determine whether any criteria is met for the note holders to have the option to redeem the Notes early, which could result in a change in the classification of the Notes to current liabilities.

Debt Issuance Cost

The issuance costs are amortized using an effective interest method basis over the term of the Convertible Notes. During the year ended December 31, 2022, the Company incurred direct costs associated with the issuance of convertible notes of $11.8 million. As noted under “2026 Notes Exchange” above, $1.8 million of unamortized debt issuance costs related to the 2026 Notes was included in the loss on debt extinguishment during the year ended December 31, 2022. During the year ended December 31, 2021, the Company incurred direct costs associated with the issuance of convertible notes of $4.6 million.

The effective interest rate on the 2026 Notes, 2028 Notes, and 2029 Notes are 2.98%, 2.82%, and 4.63%, respectively. Interest expense for the year ended December 31, 2022, including the amortization of debt issuance cost, totaled approximately $7.0 million. Interest expense for the year ended December 31, 2021, including the amortization of debt issuance cost, totaled approximately $3.2 million.

Loan and Security Agreement

On July 9, 2020, the Company entered into the Loan and Security Agreement with Silicon Valley Bank for a four-year secured revolving loan facility (“SVB Revolving Line of Credit”) in an aggregate principal amount of up to $30.0 million. The Revolving Line of Credit matures on July 9, 2024.

In order to draw on the full amount of the SVB Revolving Line of Credit, the Company must satisfy certain liquidity ratios. If the Company is unable to meet these liquidity ratios, then availability under the revolving line is calculated as 80% of the Company’s qualifying accounts receivable. The proceeds of the revolving loans may be used for general corporate purposes. The Company’s obligations under the Loan and Security Agreement with Silicon Valley Bank are secured by substantially all of the assets of the Company. Interest on principal amount outstanding under the revolving line shall accrue at a floating per annum rate equal to the greater of either 1.75% above the Prime Rate or five percent (5.0%). The Company paid a non-refundable revolving line commitment fee of $0.3 million, on the effective date of the Loan and Security Agreement with Silicon Valley Bank of July 9, 2020, and the Company is required to pay an anniversary fee of $0.3 million on each twelve-month anniversary of the effective date of the Loan and Security Agreement.

The Loan and Security Agreement with Silicon Valley Bank contains customary affirmative covenants, such as financial statement reporting requirements and delivery of borrowing base certificates, as well as customary covenants that restrict the Company’s ability to, among other things, incur additional indebtedness, sell certain assets, guarantee obligations of third parties, declare dividends, or make certain distributions, and undergo a merger or consolidation or certain other transactions. The Loan and Security Agreement also contains certain financial covenants, including maintaining a quarterly minimum revenue of $90.0 million, determined in accordance with GAAP on a trailing twelve-month basis, but which is only applicable if the Company has an outstanding balance under the loan facility.

On March 4, 2021, the Loan and Security Agreement dated July 9, 2020 was amended to (i) permit the Company to issue the convertible notes and perform its obligations in connection therewith, and (ii) permit the capped call transactions.

On May 27, 2021, the Loan and Security Agreement was amended. The amendment removed the quarterly minimum revenue requirement but kept in place the other financial covenants.

On May 24, 2022, the Loan and Security Agreement was amended. The amendment increased the permitted indebtedness by $230,000,000 and provided for the 2026 Notes Exchange and issuance of the capped call transactions related to the 2028 Notes.

On August 10, 2022, the Loan and Security Agreement was amended. The amendment to the Loan and Security Agreement waived a violation of a covenant and revised the Loan Agreement to permit the issuance of the 2028 Notes.

On December 7, 2022, the Loan and Security Agreement was amended. The amendment to the Loan and Security Agreement revised the Loan Agreement to permit the issuance of the 2029 Notes.

As of December 31, 2022, the Company had not drawn on the SVB Revolving Line of Credit and the Company is in compliance with all financial covenants of the SVB Revolving Line of Credit.

On March 10, 2023, Silicon Valley Bank was closed by the California Department of Financial Protection and Innovation, and the FDIC was appointed receiver. On March 26, 2023, the FDIC announced that it had entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company under which all deposits of the former Silicon Valley Bank were assumed by First-Citizens Bank & Trust Company. In addition, under the purchase and assumption agreement, First-Citizens Bank & Trust Company assumed Silicon Valley Bank’s obligations under the Company’s credit facility. On March 13, 2023, the Company violated one of the terms of the credit facility agreement by transferring funds from Silicon Valley Bank. The Company received a waiver from First-Citizens Bank & Trust Company for this violation.

The Paycheck Protection Program (PPP) Loan

On April 22, 2020, the Company received loan proceeds of $7.2 million pursuant to the Paycheck Protection Program (the “PPP”) under the CARES Act. The loan, which was in the form of a promissory note dated April 21, 2020, between the Company and SVB as the lender, originally matured on April 21, 2022 and bore interest at a fixed rate of 1.00% per annum, payable monthly commencing September 2021. There was no prepayment penalty. Under the terms of the PPP, all or a portion of the principal may be forgiven if the loan proceeds were used for qualifying expenses as described in the CARES Act, such as payroll costs, benefits, rent, and utilities.

The PPP loan and related accrued interest were forgiven in June 2021 under the provisions of the CARES Act, and a $7.2 million Gain on extinguishment of PPP loan was recorded in the consolidated statement of operations.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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-Name Accounting Standards Codification
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+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS The Company has accounts with First-Citizens Bank & Trust Company, which has assumed the deposits of Silicon Valley Bank and continues to perform asset management services. Approximately $305 million of the Company’s total cash, cash equivalents, and marketable securities balance of $317 million at December 31, 2022, was at SVB or SVB Asset Management. The Company’s funds held at SVB or through SVB Asset Management were either (i) US government treasuries or money market mutual funds held in custodial accounts at U.S. Bank National Association ($198 million at December 31, 2022) or (ii) cash sweep investment funds where SVB acts as an agent for the Company ($107 million at December 31, 2022). On March 10, 2023, California regulators shut down SVB and the FDIC was appointed its receiver. On March 26, 2023, the FDIC announced that it had entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company under which all deposits of the former Silicon Valley Bank were assumed by First-Citizens Bank & Trust Company. The Company has evaluated subsequent events through the date the financial statements were issued, and determined that there have been no other events that have occurred that would require adjustments to its disclosures in the consolidated financial statements.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2022

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

SCHEDULE II CUTERA, INC.

VALUATION AND QUALIFYING ACCOUNTS

(in thousands)

For the Years Ended December 31, 2022, 2021 and 2020


	Balance at Beginning of Year		Additions		Deductions		Balance at End of Year
Deferred tax assets valuation allowance
Year ended December 31, 2022	$	40,485	$	18,153	$	5,520	$	53,118
Year ended December 31, 2021	$	38,321	$	7,503	$	5,339	$	40,485
Year ended December 31, 2020	$	32,350	$	7,986	$	2,015	$	38,321


	Balance at Beginning of Year		Additions		Deductions		Balance at End of Year
Allowance for credit losses, accounts receivable
Year ended December 31, 2022	$	899	$	1,787	$	189	$	2,497
Year ended December 31, 2021	$	1,598	$	271	$	970	$	899
Year ended December 31, 2020	$	1,354	$	2,144	$	1,900	$	1,598

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Operations and Principles of Consolidation

Basis of Presentation

The Consolidated Financial Statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”).

Use of Estimates

Risks and Uncertainties

Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted by the Company

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted by the Company

Revenue recognition

The Company leases the AviClear device to customers and receives a fixed annual license fee over the term of the arrangement and revenue related to treatments performed by the lessee.

Nature of Products and Services

Systems

The system or upgrade and the right to use the embedded software represent a single performance obligation as the software license is integral to the functionality of the system or upgrade.

The Company typically receives payment for its system consoles and other accessories within 30 days of shipment. Certain international distributor arrangements allow for longer payment terms.

AviClear

Consumables and other accessories

Skincare products

Extended service contract

Training

Significant Judgments

The Company determines standalone selling price ("SSP") for each performance obligation as follows:

•Systems: The SSPs for systems are based on directly observable sales in similar circumstances to similar customers.

•Extended warranty/Service contracts: SSP is based on observable price when sold on a standalone basis to similar customers.

Loyalty Program

Deferred Sales Commissions

Cash and Cash Equivalents

Fair Value of Financial Instruments

•Level 1: inputs, which include quoted prices in active markets for identical assets or liabilities;

Allowances for Sales Returns and Credit Losses

Allowance for Sales Returns and Credit Losses

Concentration of Credit Risk and Other Risks and Uncertainties

Supplier concentration

Inventories

Property and Equipment


			Useful Lives
Leasehold improvements			Lesser of useful life or term of lease
Equipment leasing			4.5
AviClear devices			7
Office equipment and furniture			3
Machinery and equipment			3

Capitalized Cloud Computing Set-up Cost

Goodwill and Intangible Assets

Warranty Obligations

After the original warranty period, maintenance and support are offered on an extended service contract basis or on a time and materials basis.

Accounting for Leases as a Lessee

Accounting for Leases as a Lessor

See Note 13 to the consolidated financial statements for more information regarding leasing arrangements.

Cost of Revenue

Research and Development Expenditures

Advertising Costs

Advertising CostsAdvertising costs are included as part of sales and marketing expense and are expensed as incurred.

Stock-based Compensation

Expected Volatility: For the underlying stock price volatility of the Company’s stock, the Company estimates volatility solely based on the historical volatility of the Company's stock price.

Risk-Free Interest Rate: The risk-free interest rate is based on the U.S. treasury yield curve in effect at the time of grant for the expected term of the stock option.

dividing a fixed award amount determined by the Board on the grant date by the average closing price of the Company’s common stock over the 50-day period ending on the day of the grant.

See Note 8 - "Stockholders’ Equity, Stock Plans and Stock-Based Compensation Expense" for a detailed discussion of the Company’s stock plans and share-based compensation expense.

Income Taxes

Computation of Net Income (Loss) per Share

Comprehensive Income (Loss)

Foreign currency

Foreign Currency

Segments

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Property and Equipment

Depreciation expense recognized is on a straight-line basis over the estimated useful lives of the assets, generally as follows:


			Useful Lives
Leasehold improvements			Lesser of useful life or term of lease
Equipment leasing			4.5
AviClear devices			7
Office equipment and furniture			3
Machinery and equipment			3

Property and equipment, net, consists of the following (in thousands):


	December 31,
	2022		2021
Leasehold improvements	$	793	$	826
Equipment leasing	—		107
AviClear devices	19,904		—
Office equipment and furniture	1,936		1,527
Machinery and equipment	5,106		3,983
Assets under construction	17,876		—
	45,615		6,443
Less: Accumulated depreciation	(5,247)		(3,424)
Property and equipment, net	$	40,368	$	3,019

Cash, Cash Equivalents, Marketable Securities, and Restricted Cash (Tables)

12 Months Ended

Dec. 31, 2022

Cash and Cash Equivalents [Abstract]

Schedule of Cash and Cash Equivalents

The following table summarizes the Company's cash and cash equivalents and marketable investments (in thousands):


December 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Cash and cash equivalents	N/A		N/A		N/A		$	145,924
Current restricted cash	N/A		N/A		N/A		700
Cash, cash equivalents, and restricted cash as reported within the Consolidated Statements of Cash Flows	N/A		N/A		N/A		146,624
Marketable investments - U.S. Treasury	171,484		8		(102)		171,390
Total	$	171,484	$	8	$	(102)	$	318,014


December 31, 2021	Fair Market Value
Cash and cash equivalents	$	164,164
Non-current restricted cash	700
Cash, cash equivalents, and restricted cash as reported within the Consolidated Statements of Cash Flows	$	164,864

Schedule of Restricted Cash and Cash Equivalents

The following table summarizes the Company's cash and cash equivalents and marketable investments (in thousands):


December 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Cash and cash equivalents	N/A		N/A		N/A		$	145,924
Current restricted cash	N/A		N/A		N/A		700
Cash, cash equivalents, and restricted cash as reported within the Consolidated Statements of Cash Flows	N/A		N/A		N/A		146,624
Marketable investments - U.S. Treasury	171,484		8		(102)		171,390
Total	$	171,484	$	8	$	(102)	$	318,014


December 31, 2021	Fair Market Value
Cash and cash equivalents	$	164,164
Non-current restricted cash	700
Cash, cash equivalents, and restricted cash as reported within the Consolidated Statements of Cash Flows	$	164,864

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Financial Assets Measured and Recognized at Fair Value on a Recurring Basis


December 31, 2022	Level 1		Level 2
Cash equivalents:
Money market funds	$	26,408	$	—
Marketable investments:
Available-for-sale securities	171,390		—
Derivative liabilities:
Foreign exchange forward	$	—	$	(558)
Total	$	197,798	$	(558)

Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The cash flow effect of the derivative instruments settlement is recorded in cash flow from operations.

Dollar amounts in thousands:

December 31, 2022

Classification

Foreign Exchange Forward

(Dollars in thousands)

Gross notional amount

N/A

6,128

Fair value

Accrued liabilities

558

Unrealized loss

Other income (expense), net

(558)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959

+ Details

Balance Sheet Detail (Tables)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Inventories

Inventories, net of these adjustments, consist of the following (in thousands):


	December 31,
	2022		2021
Raw materials	$	36,323	$	24,035
Work in process	2,117		2,124
Finished goods	25,188		13,344
Total	$	63,628	$	39,503

Schedule of Other current assets and prepaid expenses

Other current assets and a prepaid expenses, consists of the following (in thousands):


	December 31,
	2022		2021
Deposits with vendors	$	13,917	$	4,389
Foreign tax receivable	7,147		7,612
Prepayments	2,972		2,544

Total	$	24,036	$	14,545

Schedule of Property and Equipment, net

Depreciation expense recognized is on a straight-line basis over the estimated useful lives of the assets, generally as follows:


			Useful Lives
Leasehold improvements			Lesser of useful life or term of lease
Equipment leasing			4.5
AviClear devices			7
Office equipment and furniture			3
Machinery and equipment			3

Property and equipment, net, consists of the following (in thousands):


	December 31,
	2022		2021
Leasehold improvements	$	793	$	826
Equipment leasing	—		107
AviClear devices	19,904		—
Office equipment and furniture	1,936		1,527
Machinery and equipment	5,106		3,983
Assets under construction	17,876		—
	45,615		6,443
Less: Accumulated depreciation	(5,247)		(3,424)
Property and equipment, net	$	40,368	$	3,019

Schedule of Accrued Liabilities

Accrued liabilities consist of the following (in thousands):


	December 31,
	2022		2021
Bonus and payroll-related accruals	$	18,951	$	21,649
Accrued sales tax	9,066		9,110
Liability for inventory in transit	7,028		4,265
Sales and marketing accruals	5,347		4,808
Product warranty	3,254		3,947
Other accrued liabilities	13,806		10,321
Total	$	57,452	$	54,100

Product Warranty (Tables)

12 Months Ended

Dec. 31, 2022

Product Warranties Disclosures [Abstract]

Schedule of Product Warranty Accrual

The following table provides the changes in the product standard warranty accrual for the years ended December 31, 2022 and 2021 (in thousands):


	December 31,
	2022		2021
Balance at beginning of year	$	3,947	$	4,124
Add: Accruals for warranties issued during the period	3,710		5,135
Less: Settlements made during the period	(4,403)		(5,312)
Balance at end of year	$	3,254	$	3,947

Deferred Revenue (Tables)

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Deferred Service Contract Revenue

The following table provides changes in the deferred revenue balance for the years ended December 31, 2022 and 2021 (in thousands):


	December 31,
	2022		2021
Balance at beginning of year	$	10,825	$	11,237
Add: Payments received	21,984		17,139
Less: Revenue recognized from current period sales	(9,928)		(7,006)
Less: Revenue recognized from beginning balance	(9,383)		(10,545)
Balance at end of year	$	13,498	$	10,825

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Payment Arrangement

Activity under the 2004 Plan and 2019 Equity Incentive Plan is summarized as follows:


		Options Outstanding
	Shares Available For Grant	Number of Shares	Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (in millions ) (1)
Balances as of December 31, 2019	761,705	295,699	$	25.52	3.19	$	3.04
Additional shares reserved(2)	600,000
Options granted	(71,088)	71,088	$	14.85
Options exercised	—	(73,227)	$	12.91
Options cancelled (expired or forfeited)	76,553	(76,553)	$	36.65
Stock awards granted	(804,949)	—	—
Stock awards cancelled (expired or forfeited)	522,949	—	—
Balances as of December 31, 2020	1,085,170	217,007	$	22.35	3.75	$	1.47
Additional shares reserved(2)	450,000
Options granted	(172,139)	172,139	$	30.71
Options exercised	—	(71,798)	$	22.02
Options cancelled (expired or forfeited)	30,173	(30,173)	$	37.14
Stock awards granted	(744,949)	—	—
Stock awards cancelled (expired or forfeited)	299,092	—	—
Balances as of December 31, 2021	947,347	287,175	$	25.89	4.92	$	4.46
Additional shares reserved(2)	600,000
Options granted	(296,238)	296,238	$	40.95
Options exercised	—	(39,960)	$	21.28
Options cancelled (expired or forfeited)	29,518	(29,518)	$	34.91
Stock awards granted	(374,274)	—	—
Stock awards cancelled (expired or forfeited)	164,572	—	—
Balances as of December 31, 2022	1,070,925	513,935	$	34.41	6.63	$	5.99
Exercisable as of December 31, 2022		127,863	$	27.54	3.24	$	2.15
Vested and expected to vest, net of estimated forfeitures, as of December 31, 2022		483,844	$	34.27	6.52	$	5.69

(1)Based on the closing stock price of $44.22 of the Company’s stock on December 31, 2022, $41.32 on December 31, 2021, $24.11 on December 31, 2020 and $35.81 on December 31, 2019.

(2)Approved by the board of directors and stockholders in 2022, 2021 and 2020.

Schedule of Share-based Payment Arrangement Exercise Price Range

The options outstanding and exercisable at December 31, 2022 were in the following exercise price ranges:


Exercise Prices			Number Outstanding	Contractual Life (in years)	Number Exercisable
$10.79	—	$14.04	5,709	1.26	5,709
	$14.10		60,000	2.59	28,000
$18.55	—	$25.70	12,775	0.91	12,775
	$29.28		73,667	5.26	31,803
	$32.87		48,806	4.93	22,291
	$33.45		150,857	9.14	—
$36.55	—	$41.39	91,719	6.54	22,540
	$42.33		17,335	9.91	—
	$47.40		4,745	1.96	4,745
	$63.62		48,322	9.25	—
$10.79	—	$63.62	513,935	6.63	127,863

Schedule of Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit

Information with respect to RSUs and PSUs activity is as follows (in thousands):


	Number of Shares	Weighted-Average Grant- Date Fair Value		Aggregate Fair Value(1) (in thousands)			Aggregate Intrinsic Value(2) (in thousands)
Outstanding at December 31, 2019	1,104,802	$	22.10				$	37,442
Granted	667,694	$	20.66
Vested(3)	(684,491)	$	17.82	$	12,036	(4)
Forfeited	(308,248)	$	23.24
Outstanding at December 31, 2020	779,757	$	23.96				$	18,800
Granted	744,949	$	40.16
Vested(3)	(254,946)	$	22.94	$	8,287	(5)
Forfeited	(236,856)	$	27.33
Outstanding at December 31, 2021	1,032,904	$	35.00				$	42,680
Granted	374,274	$	45.36
Vested(3)	(340,836)	$	29.04	$	15,443	(6)
Forfeited	(160,131)	$	41.48
Outstanding at December 31, 2022	906,211	$	40.39				$	40,073

(1)Represents the value of the Company’s stock on the date that the restricted stock units and performance stock units vest.

(2)Based on the closing stock price of the Company’s stock of $44.22 on December 31, 2022, $41.32 on December 31, 2021, $24.11 on December 31, 2020, and $35.81 on December 31, 2019.

(3)The number of restricted stock units vested includes shares that the Company withheld on behalf of the employees to satisfy the statutory tax withholding requirements.

(4)On the grant date, the fair value for these vested awards was $12.2 million.

(5)On the grant date, the fair value for these vested awards was $5.8 million.

(6)On the grant date, the fair value for these vested awards was $9.9 million.

Schedule of Share-based Payment Arrangement Cost by Plan

Stock-based compensation expense for the years ended December 31, 2022, 2021 and 2020 was as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Stock options	$	2,175	$	782	$	370
RSUs	6,979		5,305		8,849
PSUs	4,430		6,591		666
ESPP	816		494		224
Total stock-based compensation expense	$	14,400	$	13,172	$	10,109

Schedule of Share-based Payment Arrangement, Expensed and Capitalized, Amount

Total stock-based compensation expense recognized during the years ended December 31, 2022, 2021 and 2020 was recorded in the Consolidated Statement of Operations as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Cost of revenue	$	1,665	$	1,408	$	1,665
Sales and marketing	4,998		3,160		3,385
Research and development	2,405		2,784		1,669
General and administrative	5,332		5,820		3,390
Total stock-based compensation expense	$	14,400	$	13,172	$	10,109

Schedule of Valuation Assumptions and Fair Value of Stock Options and ESPP Grants

The weighted average estimated fair values of the employee stock options and rights granted under the employee stock purchase plan and the weighted average assumptions used to calculate the grant date fair values, are as follows:


	Stock Options									Stock Purchase Plan (ESPP)
	2022			2021			2020			2022			2021			2020
Expected term (in years)	4.03			3.97			4.84			0.49			0.50			0.50
Risk-free interest rate	1.99		%	0.48		%	0.15		%	3.79		%	0.14		%	0.11		%
Volatility	66		%	66		%	63		%	69		%	36		%	76		%
Dividend yield(1)	—		%	—		%	—		%	—		%	—		%	—		%
Weighted average estimated fair value at grant date	$	19.76		$	15.09		$	7.63		$	15.77		$	9.64		$	6.13

(1)The Company has not paid dividends since its inception.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax

The Company’s income (loss) before provision for income taxes consisted of the following (in thousands):


	Year Ended December 31,
	2022		2021		2020
U.S.	$	(84,189)	$	(356)	$	(25,793)
Foreign	3,487		3,741		2,386
Income (loss) before income taxes	$	(80,702)	$	3,385	$	(23,407)

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes are as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	52	$	—	$	—
State	126		(87)		(53)
Foreign	1,275		1,512		747
Total Current	1,453		1,425		694
Deferred:
Federal	2		2		2
State	1		1		1
Foreign	182		(105)		(227)
Total Deferred	185		(102)		(224)
Tax provision	$	1,638	$	1,323	$	470

Schedule of Deferred Tax Assets and Liabilities

The Company’s net deferred tax assets consist of the following (in thousands):


	December 31,
	2022		2021
Net operating loss carryforwards	$	21,443	$	18,274
Stock-based compensation	2,594		3,160
Other accruals and reserves	4,592		2,863
Credits	14,908		13,634
Accrued warranty	778		939
Depreciation and amortization	1,857		2,226
Section 174 Costs	7,578		—
Other	1,541		977
Operating lease liability	3,384		3,784
Deferred tax asset before valuation allowance	58,675		45,857
Valuation allowance	(53,118)		(40,485)
Deferred tax asset after valuation allowance	5,557		5,372
Deferred contract acquisition costs	(1,763)		(990)
Goodwill	(138)		(124)
Right of use asset	(3,066)		(3,480)
Net deferred tax asset (liability)	$	590	$	778

Schedule of Effective Income Tax Rate Reconciliation

The differences between the U.S. federal statutory income tax rates to the Company’s effective tax rate are as follows:


	Year Ended December 31,
	2022		2021		2020
U.S. federal statutory income tax rate	21.00	%	21.00	%	21.00	%
State tax rate	(0.16)		(2.55)		2.77
Meals and entertainment	(0.47)		9.28		(0.65)
Permanent differences	(0.07)		1.11		(2.87)
Stock-based compensation	0.89		(13.08)		(1.07)
Extinguishment of PPP loan	—		(44.59)		—
Debt extinguishment costs	(8.48)		—		—
Excess compensation	(1.34)		7.88		—
Foreign rate differential	(0.76)		17.03		(1.05)
General business credit	0.78		(17.95)		2.74
Valuation allowance	(11.41)		72.82		(25.51)
Change in prior year reserves	—		(0.08)		0.55
Deferred true-up	(2.02)		(11.76)		2.08
Effective tax rate	(2.04)	%	39.11	%	(2.01)	%

Schedule of Unrecognized Tax Benefits Roll Forward


	Year Ended December 31,
	2022		2021		2020
Balance at beginning of year	$	2,746	$	1,864	$	1,426
Decreases related to prior year tax positions	(36)		(37)		(32)

Increases related to current year tax positions	1,015		919		470
Balance at end of year	$	3,725	$	2,746	$	1,864

Net Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income (Loss)


	Year Ended December 31,
	2022		2021		2020
Numerator:
Net income (loss)	$	(82,340)	$	2,062	$	(23,877)
Denominator:
Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic	18,747		17,891		16,691
Dilutive effect of incremental shares and share equivalents:
Options	—		68		—
RSUs	—		294		—
PSUs	—		104		—
ESPP	—		5		—
Weighted average shares of common stock outstanding used in computing net income (loss) per share, diluted	18,747		18,362		16,691
Net income (loss) per share:
Net income (loss) per share, basic	$	(4.39)	$	0.12	$	(1.43)
Net income (loss) per share, diluted	$	(4.39)	$	0.11	$	(1.43)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share


	Year Ended December 31,
	2022	2021	2020
Capped call	10,780	4,167	—
Convertible debt	8,697	4,167	—
Options to purchase common stock	514	166	244
Restricted stock units	460	32	724
Employee stock purchase plan shares	38	—	87
Performance stock units	446	120	68
Total	20,935	8,652	1,123

Segment Information and Revenue by Geography and Products (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

The Company measures the financial results of its reportable segments using an internal performance measure that excludes General and administrative expenses.


	Year Ended December 31,
	2022		2021		2020
	(Dollars in thousands)
Net revenue
Cutera Core	$	247,943	$	231,270	$	147,683
AviClear	4,456		—		—
Total net revenue	$	252,399	$	231,270	$	147,683

Income (loss) from operations
Cutera Core	$	20,862	$	30,181	$	(4,796)
AviClear	(28,012)		(9,445)		—
Segment income (loss) from operations	(7,150)		20,736		(4,796)
Items not allocated to segments
Stock-based compensation	(14,400)		(13,172)		(10,109)
ERP implementation	(9,211)		(1,498)		(1,139)
Depreciation and amortization	(5,821)		(3,188)		(3,987)
Legal fees, severance, and other	(1,608)		(1,048)		(2,797)
Consolidated income (loss) from operations	(38,190)		1,830		(22,828)
Interest and other income (expense), net	(42,512)		1,555		(579)
Consolidated income (loss) before income taxes	$	(80,702)	$	3,385	$	(23,407)

Capital spending
Cutera Core	$	1,780	$	438	$	1,279
AviClear	20,918		577		—
Total segment capital spending	22,698		1,015		1,279
Corporate	—		—		—
Total capital spending	$	22,698	$	1,015	$	1,279

Total assets
Cutera Core	$	154,978	$	76,860
AviClear	47,406		6,342
Total segment assets	202,384		83,202
Corporate	318,604		197,091
Total assets	$	520,988	$	280,293

Schedule of Revenue by Geography

The following table presents a summary of revenue by geography for the year ended December 31, 2022, 2021 and 2020 (in thousands):


	Year Ended December 31,
	2022		2021		2020
Revenue mix by geography:
United States	$	107,453	$	96,629	$	61,238
Japan	64,920		70,235		43,265
Asia, excluding Japan	21,873		12,649		10,707
Europe	20,882		19,444		11,185
Rest of the world, other than United States, Asia and Europe	37,271		32,313		21,288
Total consolidated revenue	$	252,399	$	231,270	$	147,683
Revenue mix by product category:
Systems	$	163,637	$	139,633	$	90,765
AviClear	4,456		—		—
Consumables	18,203		16,401		9,287
Skincare	42,500		49,669		25,061
Total product revenue	228,796		205,703		125,113
Service	23,603		25,567		22,570
Total consolidated revenue	$	252,399	$	231,270	$	147,683

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Schedule of Financial Statement Information

Below is supplemental balance sheet information related to leases (in thousands):


		Year Ended December 31,
		2022		2021
Assets	Classification
Right-of-use assets	Operating lease right-of-use assets	$	12,831	$	14,627
Finance lease	Property and equipment, net	1,606		392
Total leased assets		$	14,437	$	15,019


		Year Ended December 31,
		2022		2021
Liabilities	Classification
Operating lease liabilities
Operating lease liabilities, current	Operating lease liabilities	$	2,810	$	2,419
Operating lease liabilities, non-current	Operating lease liabilities, net of current portion	11,352		13,483
Total Operating lease liabilities		$	14,162	$	15,902


		Year Ended December 31,
	Classification	2022		2021
Finance lease liabilities
Finance lease liabilities, current	Accrued liabilities	$	485	$	554
Finance lease liabilities, non-current	Other long-term liabilities	825		730
Total Finance lease liabilities		$	1,310	$	1,284

Lease costs during the twelve months ended December 31, 2022 and December 31, 2021 (in thousands):


		Year Ended December 31,
		2022		2021		2020
Finance lease cost	Amortization expense	$	643	$	484	$	431
Finance lease cost	Interest for finance lease	$	76	$	59	$	63
Operating lease cost	Operating lease expense	$	3,560	$	3,542	$	3,275

Cash paid for amounts included in the measurement of lease liabilities during the twelve months ended December 31, 2022 and December 31, 2021 were as follows (in thousands):


		Year Ended December 31,
		2022		2021		2020
Operating cash flow	Finance lease	$	78	$	56	$	63
Financing cash flow	Finance lease	$	520	$	462	$	537
Operating cash flow	Operating lease	$	2,526	$	3,092	$	2,139

Schedule of Operating Lease Liability

Maturities of operating lease liabilities were as follows as of December 31, 2022 (in thousands):


	Amount
2023	$	3,420
2024	2,962
2025	2,932
2026	3,027
2027	3,130
Thereafter	464
Total lease payments	15,935
Less: imputed interest	(1,773)
Present value of lease liabilities	$	14,162

Schedule of Finance Lease Liability

As of December 31, 2022, the Company was committed to minimum lease payments for vehicles leased under long-term non-cancelable finance leases as follows (in thousands):


	Amount
2023	$	542
2024	604
2025	295
Total lease payments	1,441
Less: imputed interest	(131)
Present value of lease liabilities	$	1,310

Schedule of Lease Cost

Weighted-average remaining lease term and discount rate, as of December 31, 2022, were as follows:


Lease Term and Discount Rate
Weighted-average remaining lease term (years)
Operating leases	5.0
Finance leases	2.3
Weighted-average discount rate
Operating leases	4.7	%
Finance leases	6.2	%

Schedule of Operating Lease Income

The following table summarizes the amount of operating lease income included in product revenue in the accompanying consolidated statements of operations (in thousands):


	Year Ended December 31, 2022		Year Ended December 31, 2021
AviClear operating lease license fee revenue	$	922	$	—
AviClear operating lease revenue	3,534		—
Total AviClear revenue	$	4,456	$	—

Schedule of Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity

The following is the minimum future lease payments as of December 31, 2022, under non-cancelable operating leases, assuming the minimum contractual lease term (in thousands):


	Amount
2023	$	610
2024	610
Total	$	1,220

Debt (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Convertible Notes

The following table presents the outstanding principal amount and carrying value of the Company’s Convertible Notes (in thousands):


	Year Ended December 31,
	2022		2021
Notes due in 2026

Outstanding principal amount	$	69,125	$	138,250
Unamortized debt issuance costs	(1,553)		(4,007)
Carrying Value	$	67,572	$	134,243

Notes due in 2028
Outstanding principal amount	$	240,000	$	—
Unamortized debt issuance costs	(6,908)		—
Carrying Value	$	233,092	$	—

Notes due in 2029
Outstanding principal amount	$	120,000	$	—
Unamortized debt issuance costs	(4,205)		—
Carrying Value	$	115,795	$	—

Convertible notes, net	$	416,459	$	134,243

Schedule of Components of the Loss on Debt Extinguishment

The table below presents the components of the Loss on debt extinguishment recorded in the Company's consolidated statements of operations for the year ended December 31, 2022 (amounts in thousands, except share and per share amounts):


Shares issued for repurchase	1,354,348
Closing price of Cutera common stock on May 24, 2022	$	41.31
Value of shares issued			$	55,948
Cash used for repurchase			45,776
Total shares and cash						$	101,724
2026 Note principal exchanged						(69,125)
Value of shares and cash exchanged						32,599

2026 Notes: Unamortized debt issuance costs on May 24, 2022			$	3,648
Portion of 2026 Note principal exchanged			50		%	$	1,824

Loss on debt extinguishment						$	34,423

Schedule II - Valuation and Qualifying Accounts (Tables)

12 Months Ended

Dec. 31, 2022

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule of Valuation Allowance


	Balance at Beginning of Year		Additions		Deductions		Balance at End of Year
Deferred tax assets valuation allowance
Year ended December 31, 2022	$	40,485	$	18,153	$	5,520	$	53,118
Year ended December 31, 2021	$	38,321	$	7,503	$	5,339	$	40,485
Year ended December 31, 2020	$	32,350	$	7,986	$	2,015	$	38,321


	Balance at Beginning of Year		Additions		Deductions		Balance at End of Year
Allowance for credit losses, accounts receivable
Year ended December 31, 2022	$	899	$	1,787	$	189	$	2,497
Year ended December 31, 2021	$	1,598	$	271	$	970	$	899
Year ended December 31, 2020	$	1,354	$	2,144	$	1,900	$	1,598

Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended	12 Months Ended
	Dec. 31, 2022 USD ($) country segment	Dec. 31, 2022 USD ($) country segment reporting_unit	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Number of countries in which entity operates \| country	37	37
Training on use of system term (in days)		180 days
Accrual for loyalty program	$ 13,498,000	$ 13,498,000	$ 10,825,000	$ 11,237,000
Total capitalized costs	2,000,000.0	$ 2,000,000.0	2,700,000
Estimated economic life of demonstration units (in years)		2 years
Demonstration inventories included in finished goods	5,700,000	$ 5,700,000	3,700,000
Depreciation expense		2,200,000	1,300,000	1,400,000
Capitalized computing amortization expense		400,000	0
Capitalized computing accumulated amortization	$ 400,000	400,000	0
Number of reportable segments \| segment	2
Goodwill impairment		$ 0
Number of operating segments \| segment		2
Number of reporting units \| reporting_unit		1
Warranty term, direct sales		12 months
Warranty term, distributor sales (in months)		14 months
Advertising expense		$ 4,900,000	2,100,000	1,200,000
Foreign currency transaction gains		3,600,000	1,800,000	$ 0
Other current assets and prepaid expenses
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Capitalized computing set-up costs	$ 400,000	400,000	400,000
Other long-term assets
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Total capitalized costs	3,800,000	3,800,000	4,200,000
Capitalized computing set-up costs	$ 3,500,000	$ 3,500,000	$ 3,500,000
Restricted Stock Units and Performance Share Units
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Shares granted calculation, grant period (in days)		50 days
Minimum
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Capitalized costs, amortization period (in years)	2 years	2 years
Maximum
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Capitalized costs, amortization period (in years)	3 years	3 years
Capitalized Cloud Computing Set-up Cost \| Other long-term assets
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Total capitalized costs	$ 3,300,000	$ 3,300,000
Capitalized Cloud Computing Set-up Cost \| Minimum
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Cloud computing arrangement expected contract renewals (in years)		3 years
Capitalized Cloud Computing Set-up Cost \| Maximum
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Cloud computing arrangement expected contract renewals (in years)		10 years
Lease installment cost
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Total capitalized costs	1,700,000	$ 1,700,000
Lease installment cost \| Other long-term assets
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Total capitalized costs	$ 1,400,000	$ 1,400,000
United States
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Percentage of assets in the United States	99.80%	99.80%	99.00%
Customer Concentration Risk \| Revenue Benchmark \| United States
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Concentration risk (as a percent)		43.00%	42.00%	41.00%
Customer Concentration Risk \| Revenue Benchmark \| Non-US
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Concentration risk (as a percent)		57.00%	58.00%	59.00%
Supplier Concentration Risk \| Revenue from Contract with Customer, Product and Service Benchmark \| Largest Supplier
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Concentration risk (as a percent)		10.00%	14.00%	9.00%
Sales and marketing
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Amortization of capitalized contract costs		$ 2,400,000	$ 1,900,000	$ 2,600,000
Sales and marketing \| Capitalized Cloud Computing Set-up Cost
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Amortization of capitalized contract costs		500,000
Sales and marketing \| Lease installment cost
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Amortization of capitalized contract costs		$ 300,000
Service
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Extended service contract, option one, term (in years)		1 year
Extended service contract, option three, term (in years)		3 years
Loyalty
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Accrual for loyalty program	$ 300,000	$ 300,000	$ 500,000
Transferred over Time
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Total net revenue		8.00%	11.00%	15.00%

Summary of Significant Accounting Policies - Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2022
Equipment leasing
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	4 years 6 months
AviClear devices
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	7 years
Office equipment and furniture
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	3 years
Machinery and equipment
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	3 years

Cash, Cash Equivalents, Marketable Securities, and Restricted Cash - Summary of Cash and Cash Equivalents and Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-Sale [Line Items]
Cash and cash equivalents	$ 145,924	$ 164,164
Current restricted cash	700	0
Restricted cash	0	700
Cash, cash equivalents, and restricted cash as reported within the Consolidated Statements of Cash Flows	146,624	$ 164,864
Total amortized cost	171,484
Gross unrealized gains	8
Gross unrealized losses	(102)
Total fair market value	318,014
US Treasury Securities
Debt Securities, Available-for-Sale [Line Items]
Marketable investments - U.S. Treasury	171,484
Gross unrealized gains	8
Gross unrealized losses	(102)
Fair market value	$ 171,390

Cash, Cash Equivalents, Marketable Securities, and Restricted Cash - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Abstract]
Net unrealized loss	$ 0.1	$ 0.0
Outstanding letter of credit	$ 0.7

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	May 31, 2022	Mar. 31, 2022
Convertible Debt \| Convertible Senior Notes Due 2026
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument, interest rate (as a percent)		2.25%	2.25%
Convertible Debt \| Convertible Senior Notes Due 2028
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument, interest rate (as a percent)		2.25%
Fair Value, Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair market value	$ 171,390
Total	197,798
Fair Value, Recurring \| Level 1 \| Foreign exchange forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities:	0
Fair Value, Recurring \| Level 1 \| Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	26,408
Fair Value, Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair market value	0
Total	(558)
Fair Value, Recurring \| Level 2 \| Foreign exchange forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities:	(558)
Fair Value, Recurring \| Level 2 \| Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	$ 0

Derivative Instruments (Details) - Foreign exchange forward $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Derivative [Line Items]
Gross notional amount	$ 6,128
Fair value	558
Unrealized loss	$ (558)

Balance Sheet Detail - Narrative (Details) - USD ($)	12 Months Ended
Balance Sheet Detail - Narrative (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Valuation adjustment for excess and obsolete inventory	$ 3,600,000	$ 4,900,000
Goodwill	1,339,000	1,339,000
Goodwill impairment	0	0
Goodwill additions during the year	$ 0	$ 0

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Balance Sheet Detail - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 36,323	$ 24,035
Work in process	2,117	2,124
Finished goods	25,188	13,344
Total	$ 63,628	$ 39,503

Balance Sheet Detail - Other Current Assets and Prepaid Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deposits with vendors	$ 13,917	$ 4,389
Foreign tax receivable	7,147	7,612
Prepayments	2,972	2,544
Total	$ 24,036	$ 14,545

Balance Sheet Detail - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 45,615	$ 6,443
Less: Accumulated depreciation	(5,247)	(3,424)
Property and equipment, net	40,368	3,019
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	793	826
Equipment leasing
Property, Plant and Equipment [Line Items]
Property and equipment, gross	0	107
AviClear devices
Property, Plant and Equipment [Line Items]
Property and equipment, gross	19,904	0
Office equipment and furniture
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,936	1,527
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,106	3,983
Assets under construction
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 17,876	$ 0

Balance Sheet Detail - Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Bonus and payroll-related accruals	$ 18,951	$ 21,649
Accrued sales tax	9,066	9,110
Liability for inventory in transit	7,028	4,265
Sales and marketing accruals	5,347	4,808
Product warranty	3,254	3,947
Other accrued liabilities	13,806	10,321
Accrued liabilities	$ 57,452	$ 54,100

Product Warranty - Summary of Warranties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of year	$ 3,947	$ 4,124
Add: Accruals for warranties issued during the period	3,710	5,135
Less: Settlements made during the period	(4,403)	(5,312)
Balance at end of year	$ 3,254	$ 3,947

Deferred Revenue - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Costs for extended service contracts	$ 6.3	$ 8.3	$ 8.2
Service \| Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Extended service contract term	1 year
Service \| Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Extended service contract term	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue balance (as a percent)	88.00%
Deferred revenue balance, amount	$ 13.5
Deferred revenue balance, recognition period (in months)	12 months

Deferred Revenue - Summary of Deferred Service Contract Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Change in Contract with Customer, Liability [Roll Forward]
Balance at beginning of year	$ 10,825	$ 11,237
Add: Payments received	21,984	17,139
Less: Revenue recognized from current period sales	(9,928)	(7,006)
Less: Revenue recognized from beginning balance	(9,383)	(10,545)
Balance at end of year	$ 13,498	$ 10,825

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Narrative (Details)				1 Months Ended					12 Months Ended
	Apr. 21, 2020 USD ($) $ / shares shares	Apr. 01, 2020 shares	Jan. 12, 2004 shares	Jun. 30, 2022 shares	Jul. 31, 2021 tranche shares	Jun. 30, 2021 shares	Aug. 31, 2020 shares	Jul. 31, 2019 shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) shares	Dec. 31, 2019 shares	Dec. 31, 2012 shares	Dec. 31, 2004 shares	Dec. 31, 1998 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, par value (in dollars per share) \| $ / shares									$ 0.001	$ 0.001
Authorized capital (in shares)									55,000,000
Common stock authorized (in shares)									50,000,000	50,000,000
Common stock issued (in shares)									19,668,603	17,995,344
Common stock outstanding (in shares)									19,668,603	17,995,344
Preferred stock authorized (in shares)									5,000,000
Preferred stock, par value (in dollars per share) \| $ / shares									$ 0.001
Preferred stock issued (in shares)									0
Preferred stock outstanding (in shares)									0
Gross proceeds from equity offering \| $									$ 0	$ 0	$ 28,798,000
Stock issued, offering cost \| $									0	0	2,303,000
Vesting period								4 years
Percentage of awards officers are required to hold for a minimum of one year												50.00%
Awards granted (in shares)		209,981
Number of vesting tranches \| tranche					4
Intrinsic value of options exercised \| $									1,100,000	$ 1,300,000	$ 400,000
Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value \| $									$ 18,135
Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period							5 years
Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period							2 years 6 months
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)									374,274	744,949	667,694
RSUs \| Share-based Payment Arrangement, Nonemployee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period									1 year
Awards granted (in shares)									12,496	41,301	35,735
RSUs \| Share-based Payment Arrangement, Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)									191,993	219,686	405,248
Restricted Stock Units, Annual Grant \| Share-based Payment Arrangement, Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period									4 years
Restricted Stock Units, New Hire \| Share-based Payment Arrangement, Employee \| Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage									25.00%
Restricted Stock Units, New Hire \| Share-based Payment Arrangement, Employee \| Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period									36 months
PSUs \| Share-based Payment Arrangement, Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)					265,002			67,897	169,785	178,222	76,157
PSUs \| Share-based Payment Arrangement, Employee \| Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)							60,000
Vesting percentage									50.00%
PSUs \| Share-based Payment Arrangement, Employee \| Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)							22,423
Vesting percentage									50.00%
1998 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock reserved for issuance (in shares)															4,650,000
2004 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock reserved for issuance (in shares)														1,750,000
Share subtraction (in shares)													2.12
Vesting period												1 year
2019 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock reserved for issuance (in shares)												9,701,192
Share subtraction (in shares)												2.12
Additional stock available for grant (in shares)												700,000
Grant date fair value \| $									$ 150,000
The Amended and Restated 2019 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional stock available for grant (in shares)				600,000		450,000					600,000
2004 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional stock available for grant (in shares)			600,000
Offering period			6 months
Additional shares authorized, percentage			2.00%
Purchase price of stock, percent of market value									85.00%
ESPP stock issued (in shares)									49,306	59,635	56,751
Shares available for future issuance (in shares)									378,586
Underwritten Public Offering
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001
Issuance of common stock (in shares)	2,742,750
Common stock issued, price (in dollars per share) \| $ / shares	$ 10.50
Gross proceeds from equity offering \| $	$ 26,500,000
Stock issued, offering cost \| $	$ 2,300,000
Underwritten Public Offering \| Underwriter
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock (in shares)	357,750

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Shares Available For Grant
Balance (in shares)	947,347	1,085,170	761,705
Additional shares reserved (in shares)	600,000	450,000	600,000
Options granted (in shares)	(296,238)	(172,139)	(71,088)
Options cancelled (expired or forfeited) (in shares)	29,518	30,173	76,553
Stock awards granted (in shares)	(374,274)	(744,949)	(804,949)
Stock awards canceled (expired or forfeited) (in shares)	164,572	299,092	522,949
Balance (in shares)	1,070,925	947,347	1,085,170	761,705
Number of Shares
Balance (in shares)	287,175	217,007	295,699
Options exercised (in shares)	(39,960)	(71,798)	(73,227)
Options granted (in shares)	296,238	172,139	71,088
Options cancelled (expired or forfeited) (in shares)	(29,518)	(30,173)	(76,553)
Balance (in shares)	513,935	287,175	217,007	295,699
Exercisable (in shares)	127,863
Vested and expected to vest (in shares)	483,844
Weighted- Average Exercise Price
Balance (in dollars per share)	$ 25.89	$ 22.35	$ 25.52
Options granted (in dollars per share)	40.95	30.71	14.85
Options exercised (in dollars per share)	21.28	22.02	12.91
Options cancelled (expired or forfeited) (in dollars per share)	34.91	37.14	36.65
Balance (in dollars per share)	34.41	$ 25.89	$ 22.35	$ 25.52
Exercisable (in dollars per share)	27.54
Vested and expected to vest (in dollars per share)	$ 34.27
Weighted-Average Remaining Contractual Life
Balance	6 years 7 months 17 days	4 years 11 months 1 day	3 years 9 months	3 years 2 months 8 days
Exercisable	3 years 2 months 26 days
Vested and expected to vest	6 years 6 months 7 days
Aggregate Intrinsic Value
Balance	$ 5,990	$ 4,460	$ 1,470	$ 3,040
Exercisable	2,150
Vested and expected to vest	$ 5,690

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Options Outstanding and Exercisable Price Ranges (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, lower range limit (in dollars per share) \| $ / shares	$ 10.79
Exercise price, upper range limit (in dollars per share) \| $ / shares	$ 63.62
Number outstanding (in shares)	513,935
Contractual life	6 years 7 months 17 days
Number exercisable (in shares)	127,863
Exercise Price Range 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, lower range limit (in dollars per share) \| $ / shares	$ 10.79
Exercise price, upper range limit (in dollars per share) \| $ / shares	$ 14.04
Number outstanding (in shares)	5,709
Contractual life	1 year 3 months 3 days
Number exercisable (in shares)	5,709
Exercise Price Range 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) \| $ / shares	$ 14.10
Number outstanding (in shares)	60,000
Contractual life	2 years 7 months 2 days
Number exercisable (in shares)	28,000
Exercise Price Range 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, lower range limit (in dollars per share) \| $ / shares	$ 18.55
Exercise price, upper range limit (in dollars per share) \| $ / shares	$ 25.70
Number outstanding (in shares)	12,775
Contractual life	10 months 28 days
Number exercisable (in shares)	12,775
Exercise Price Range 4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) \| $ / shares	$ 29.28
Number outstanding (in shares)	73,667
Contractual life	5 years 3 months 3 days
Number exercisable (in shares)	31,803
Exercise Price Range 5
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) \| $ / shares	$ 32.87
Number outstanding (in shares)	48,806
Contractual life	4 years 11 months 4 days
Number exercisable (in shares)	22,291
Exercise Price Range 6
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) \| $ / shares	$ 33.45
Number outstanding (in shares)	150,857
Contractual life	9 years 1 month 20 days
Number exercisable (in shares)	0
Exercise Price Range 7
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, lower range limit (in dollars per share) \| $ / shares	$ 36.55
Exercise price, upper range limit (in dollars per share) \| $ / shares	$ 41.39
Number outstanding (in shares)	91,719
Contractual life	6 years 6 months 14 days
Number exercisable (in shares)	22,540
Exercise Price Range 8
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) \| $ / shares	$ 42.33
Number outstanding (in shares)	17,335
Contractual life	9 years 10 months 28 days
Number exercisable (in shares)	0
Exercise Price Range 9
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) \| $ / shares	$ 47.40
Number outstanding (in shares)	4,745
Contractual life	1 year 11 months 15 days
Number exercisable (in shares)	4,745
Exercise Price Range 10
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) \| $ / shares	$ 63.62
Number outstanding (in shares)	48,322
Contractual life	9 years 3 months
Number exercisable (in shares)	0

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Restricted Stock Units Activity (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Apr. 01, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Number of Shares
Granted (in shares)	209,981
Weighted-Average Grant- Date Fair Value
Stock price (in dollars per share)		$ 44.22	$ 41.32	$ 24.11	$ 35.81
RSUs
Number of Shares
Outstanding (in shares)		1,032,904	779,757	1,104,802
Granted (in shares)		374,274	744,949	667,694
Vested (in shares)		(340,836)	(254,946)	(684,491)
Forfeited(in shares)		(160,131)	(236,856)	(308,248)
Outstanding (in shares)		906,211	1,032,904	779,757
Weighted-Average Grant- Date Fair Value
Outstanding (in dollars per share)		$ 35.00	$ 23.96	$ 22.10
Granted (in dollars per share)		45.36	40.16	20.66
Vested (in dollars per share)		29.04	22.94	17.82
Forfeited (in dollars per share)		41.48	27.33	23.24
Outstanding (in dollars per share)		$ 40.39	$ 35.00	$ 23.96
Vested, aggregate fair value		$ 15,443	$ 8,287	$ 12,036
Aggregate intrinsic value		40,073	42,680	18,800	$ 37,442
Grant date fair value of awards vested		$ 9,900	$ 5,800	$ 12,200
Stock price (in dollars per share)		$ 44.22	$ 41.32	$ 24.11	$ 35.81

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands		12 Months Ended
	Apr. 01, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 2,600	$ 14,400	$ 13,172	$ 10,109
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense		2,175	782	370
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense		6,979	5,305	8,849
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense		4,430	6,591	666
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense		$ 816	$ 494	$ 224

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock-based Compensation Expense by Department (Details) - USD ($) $ in Thousands		12 Months Ended
	Apr. 01, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 2,600	$ 14,400	$ 13,172	$ 10,109
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense		1,665	1,408	1,665
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense		4,998	3,160	3,385
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense		2,405	2,784	1,669
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense		$ 5,332	$ 5,820	$ 3,390

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Valuation Assumptions and Fair Value of Stock Option and ESPP Grants (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Options
Expected term (in years)	4 years 10 days	3 years 11 months 19 days	4 years 10 months 2 days
Risk-free interest rate (as a percent)	1.99%	0.48%	0.15%
Volatility (as a percent)	66.00%	66.00%	63.00%
Dividend yield (as a percent)	0.00%	0.00%	0.00%
Weighted average estimated fair value at grant date (in dollars per share)	$ 19.76	$ 15.09	$ 7.63
Stock Purchase Plan
Expected term (in years)	5 months 26 days	6 months	6 months
Risk-free interest rate (as a percent)	3.79%	0.14%	0.11%
Volatility (as a percent)	69.00%	36.00%	76.00%
Dividend yield (as a percent)	0.00%	0.00%	0.00%
Weighted average estimated fair value at grant date (in dollars per share)	$ 15.77	$ 9.64	$ 6.13

Income Taxes - Income (Loss) Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
U.S.	$ (84,189)	$ (356)	$ (25,793)
Foreign	3,487	3,741	2,386
Income (loss) before income taxes	$ (80,702)	$ 3,385	$ (23,407)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=126941158&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI https://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current:
Federal	$ 52	$ 0	$ 0
State	126	(87)	(53)
Foreign	1,275	1,512	747
Total Current	1,453	1,425	694
Deferred:
Federal	2	2	2
State	1	1	1
Foreign	182	(105)	(227)
Total Deferred	185	(102)	(224)
Tax provision	$ 1,638	$ 1,323	$ 470

Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Net operating loss carryforwards	$ 21,443	$ 18,274
Stock-based compensation	2,594	3,160
Other accruals and reserves	4,592	2,863
Credits	14,908	13,634
Accrued warranty	778	939
Depreciation and amortization	1,857	2,226
Section 174 Costs	7,578	0
Other	1,541	977
Operating lease liability	3,384	3,784
Deferred tax asset before valuation allowance	58,675	45,857
Valuation allowance	(53,118)	(40,485)
Deferred tax asset after valuation allowance	5,557	5,372
Deferred contract acquisition costs	(1,763)	(990)
Goodwill	(138)	(124)
Right of use asset	(3,066)	(3,480)
Net deferred tax asset	$ 590	$ 778

Income Taxes - Reconciliation of Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%
State tax rate	(0.16%)	(2.55%)	2.77%
Meals and entertainment	(0.47%)	9.28%	(0.65%)
Permanent differences	(0.07%)	1.11%	(2.87%)
Stock-based compensation	0.89%	(13.08%)	(1.07%)
Extinguishment of PPP loan	0.00%	(44.59%)	0.00%
Debt extinguishment costs	(8.48%)	0.00%	0.00%
Excess compensation	(1.34%)	7.88%	0.00%
Foreign rate differential	(0.76%)	17.03%	(1.05%)
General business credit	0.78%	(17.95%)	2.74%
Valuation allowance	(11.41%)	72.82%	(25.51%)
Change in prior year reserves	0.00%	(0.08%)	0.55%
Deferred true-up	(2.02%)	(11.76%)	2.08%
Effective tax rate	(2.04%)	39.11%	(2.01%)

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Valuation allowance	$ 53,118	$ 40,485
Change in valuation allowance	12,600	2,200
Net deferred tax asset	590	$ 778
Operating loss carryforwards without expiration	51,200
Foreign Tax Authority
Net deferred tax asset	600
Domestic Tax Authority
Net operating loss carryforward	87,700
Domestic Tax Authority \| Internal Revenue Service (IRS) \| Research Tax Credit Carryforward
Tax credit carryforward	7,500
State and Local Jurisdiction
Net operating loss carryforward	45,300
State and Local Jurisdiction \| California Franchise Tax Board \| Research Tax Credit Carryforward
Tax credit carryforward	$ 9,300

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	$ 2,746	$ 1,864	$ 1,426
Decreases related to prior year tax positions	(36)	(37)	(32)
Increases related to current year tax positions	1,015	919	470
Balance at end of year	$ 3,725	$ 2,746	$ 1,864

Net Income (Loss) Per Share - Narrative (Details)	12 Months Ended
Net Income (Loss) Per Share - Narrative (Details)	Dec. 31, 2022 segment
Convertible Senior Notes Due 2026 \| Convertible Debt
Debt convertible to common shares (in shares)	8,354,036

Net Income (Loss) Per Share - Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Net income (loss)	$ (82,340)	$ 2,062	$ (23,877)
Denominator:
Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic (in shares)	18,747	17,891	16,691
Dilutive effect of incremental shares and share equivalents:
Weighted average shares of common stock outstanding used in computing net loss per share, diluted (in shares)	18,747	18,362	16,691
Net income (loss) per share:
Net income (loss) per share, basic (USD per share)	$ (4.39)	$ 0.12	$ (1.43)
Net income (loss) per share, diluted (USD per share)	$ (4.39)	$ 0.11	$ (1.43)
Options
Dilutive effect of incremental shares and share equivalents:
Dilutive effect of share-based payment arrangements (in shares)	0	68	0
RSUs
Dilutive effect of incremental shares and share equivalents:
Dilutive effect of share-based payment arrangements (in shares)	0	294	0
PSUs
Dilutive effect of incremental shares and share equivalents:
Dilutive effect of share-based payment arrangements (in shares)	0	104	0
ESPP
Dilutive effect of incremental shares and share equivalents:
Dilutive effect of share-based payment arrangements (in shares)	0	5	0

Net Income (Loss) Per Share - Antidilutive Securities Excluded From Computation of Earnings Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	20,935	8,652	1,123
Capped call
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	10,780	4,167	0
Convertible debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	8,697	4,167	0
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	514	166	244
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	460	32	724
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	38	0	87
PSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	446	120	68

Defined Contribution Plan - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Maximum 401(k) employee contribution percentage	100.00%
Employer 401(k) discretionary contribution	$ 0.5	$ 0.3	$ 0.2

Segment Information and Revenue by Geography and Products - Narrative (Details)	3 Months Ended
	Dec. 31, 2022 segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Information and Revenue by Geography and Products - Schedule of Segment Reporting Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Total net revenue	$ 252,399,000	$ 231,270,000	$ 147,683,000
Operating Income (Loss)	(38,190,000)	1,830,000	(22,828,000)
Stock-based compensation	(14,400,000)	(13,172,000)	(10,109,000)
ERP implementation	(9,211,000)	(1,498,000)	(1,139,000)
Depreciation and amortization	(5,821,000)	(3,188,000)	(3,987,000)
Legal fees, severance, and other	(1,608,000)	(1,048,000)	(2,797,000)
Total interest and other income (expense), net	(42,512,000)	1,555,000	(579,000)
Income (loss) before income taxes	(80,702,000)	3,385,000	(23,407,000)
Total capital spending	22,698,000	1,015,000	1,279,000
Total assets	520,988,000	280,293,000
Operating Segments
Disaggregation of Revenue [Line Items]
Operating Income (Loss)	(7,150,000)	20,736,000	(4,796,000)
Total capital spending	22,698,000	1,015,000	1,279,000
Total assets	202,384,000	83,202,000
Operating Segments \| Cutera Core
Disaggregation of Revenue [Line Items]
Total net revenue	247,943,000	231,270,000	147,683,000
Operating Income (Loss)	20,862,000	30,181,000	(4,796,000)
Total capital spending	1,780,000	438,000	1,279,000
Total assets	154,978,000	76,860,000
Operating Segments \| AviClear devices
Disaggregation of Revenue [Line Items]
Total net revenue	4,456,000	0	0
Operating Income (Loss)	(28,012,000)	(9,445,000)	0
Total capital spending	20,918,000	577,000	$ 0
Total assets	47,406,000	6,342,000
Items not allocated to segments
Disaggregation of Revenue [Line Items]
Total capital spending	0	0
Total assets	$ 318,604,000	$ 197,091,000

Segment Information and Revenue by Geography and Products - Schedule of Revenue by Geography (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Total net revenue	$ 252,399,000	$ 231,270,000	$ 147,683,000
Total product revenue
Disaggregation of Revenue [Line Items]
Total net revenue	228,796,000	205,703,000	125,113,000
Systems
Disaggregation of Revenue [Line Items]
Total net revenue	163,637,000	139,633,000	90,765,000
AviClear
Disaggregation of Revenue [Line Items]
Total net revenue	4,456,000	0	0
Consumables
Disaggregation of Revenue [Line Items]
Total net revenue	18,203,000	16,401,000	9,287,000
Skincare
Disaggregation of Revenue [Line Items]
Total net revenue	42,500,000	49,669,000	25,061,000
Service
Disaggregation of Revenue [Line Items]
Total net revenue	23,603,000	25,567,000	22,570,000
United States
Disaggregation of Revenue [Line Items]
Total net revenue	107,453,000	96,629,000	61,238,000
Japan
Disaggregation of Revenue [Line Items]
Total net revenue	64,920,000	70,235,000	43,265,000
Asia, excluding Japan
Disaggregation of Revenue [Line Items]
Total net revenue	21,873,000	12,649,000	10,707,000
Europe
Disaggregation of Revenue [Line Items]
Total net revenue	20,882,000	19,444,000	11,185,000
Rest of the world, other than United States, Asia and Europe
Disaggregation of Revenue [Line Items]
Total net revenue	$ 37,271,000	$ 32,313,000	$ 21,288,000

Commitments and Contingencies - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) lease_term	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Lessee, Lease, Description [Line Items]
Lease term (in years)	3 years
Duration of autorenewal features	1 year
Estimated product liability	$ 0.5	$ 0.7
Number of consecutive lease terms \| lease_term	2
Total capitalized costs	$ 2.0	2.7
Other long-term assets
Lessee, Lease, Description [Line Items]
Total capitalized costs	3.8	4.2
Sales and marketing
Lessee, Lease, Description [Line Items]
Amortization of capitalized contract costs	$ 2.4	$ 1.9	$ 2.6
AviClear Device
Lessee, Lease, Description [Line Items]
Cloud computing arrangement expected contract renewals (in years)	7 years
Capitalized Cloud Computing Set-up Cost \| Other long-term assets
Lessee, Lease, Description [Line Items]
Total capitalized costs	$ 3.3
Capitalized Cloud Computing Set-up Cost \| Sales and marketing
Lessee, Lease, Description [Line Items]
Amortization of capitalized contract costs	0.5
Lease installment cost
Lessee, Lease, Description [Line Items]
Total capitalized costs	1.7
Lease installment cost \| Other long-term assets
Lessee, Lease, Description [Line Items]
Total capitalized costs	1.4
Lease installment cost \| Sales and marketing
Lessee, Lease, Description [Line Items]
Amortization of capitalized contract costs	$ 0.3
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease terms of operating leases	1 year
Minimum \| Capitalized Cloud Computing Set-up Cost
Lessee, Lease, Description [Line Items]
Cloud computing arrangement expected contract renewals (in years)	3 years
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms of operating leases	10 years
Remaining lease terms of finance leases	5 years
Maximum \| Capitalized Cloud Computing Set-up Cost
Lessee, Lease, Description [Line Items]
Cloud computing arrangement expected contract renewals (in years)	10 years

Commitments and Contingencies - Financial Statement Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Assets
Operating lease right-of-use assets	$ 12,831	$ 14,627
Finance lease	$ 1,606	$ 392
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property and equipment, net	Property and equipment, net
Total leased assets	$ 14,437	$ 15,019
Liabilities
Operating lease liabilities	2,810	2,419
Operating lease liabilities, non-current	11,352	13,483
Total Operating lease liabilities	14,162	15,902
Finance lease liabilities, current	$ 485	$ 554
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued liabilities	Accrued liabilities
Finance lease liabilities, non-current	$ 825	$ 730
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities
Present value of lease liabilities	$ 1,310	$ 1,284
Finance lease cost	643	484	$ 431
Finance lease cost	76	59	63
Operating lease cost	3,560	3,542	3,275
Operating cash flow	78	56	63
Financing cash flow	520	462	537
Operating cash flow	$ 2,526	$ 3,092	$ 2,139

Commitments and Contingencies - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
2023	$ 3,420
2024	2,962
2025	2,932
2026	3,027
2027	3,130
Thereafter	464
Total lease payments	15,935
Less: imputed interest	(1,773)
Total Operating lease liabilities	$ 14,162	$ 15,902

Commitments and Contingencies - Maturities of Finance Leases Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
2023	$ 542
2024	604
2025	295
Total lease payments	1,441
Less: imputed interest	(131)
Present value of lease liabilities	$ 1,310	$ 1,284

Commitments and Contingencies - Lease Information (Details)	Dec. 31, 2022
Leases [Abstract]
Operating leases	5 years
Finance leases	2 years 3 months 18 days
Operating leases	4.70%
Finance leases	6.20%

Commitments and Contingencies - Operating Lease Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
AviClear Revenue
Disaggregation of Revenue [Line Items]
Operating lease income	$ 4,456	$ 0
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Total net revenue	Total net revenue
AviClear operating lease license fee revenue
Disaggregation of Revenue [Line Items]
Operating lease income	$ 922	$ 0
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Total net revenue	Total net revenue
AviClear operating lease revenue
Disaggregation of Revenue [Line Items]
Operating lease income	$ 3,534	$ 0
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Total net revenue	Total net revenue

Commitments and Contingencies - Non-cancellable Operating Lease Income (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2023	$ 610
2024	610
Total lease payments	$ 1,220

Debt - Outstanding Debt and Carrying Value (Details) - Convertible Debt - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 01, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Carrying Value	$ 416,459		$ 134,243
Convertible Senior Notes Due 2026
Debt Instrument [Line Items]
Outstanding principal amount	69,125		138,250
Unamortized debt issuance costs	(1,553)		(4,007)
Carrying Value	67,572	$ 69,100	134,243
Convertible Senior Notes Due 2028
Debt Instrument [Line Items]
Outstanding principal amount	240,000		0
Unamortized debt issuance costs	(6,908)		0
Carrying Value	233,092		0
Convertible Senior Notes Due 2029
Debt Instrument [Line Items]
Outstanding principal amount	120,000		0
Unamortized debt issuance costs	(4,205)		0
Carrying Value	$ 115,795		$ 0

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Debt - Narrative (Details)			1 Months Ended				12 Months Ended
Debt - Narrative (Details)	Jul. 09, 2020 USD ($)	Apr. 22, 2020 USD ($)	Dec. 31, 2022 USD ($) $ / shares	May 31, 2022 USD ($) day $ / shares $ / item shares	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($) day $ / item	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2020 USD ($) $ / shares	Jun. 01, 2022 USD ($)	May 24, 2022 USD ($) $ / shares	Mar. 31, 2022 USD ($) $ / shares	Mar. 04, 2021 $ / shares	Dec. 31, 2019 $ / shares
Debt Instrument [Line Items]
Share price (in dollars per share) \| $ / shares			$ 44.22				$ 44.22	$ 41.32	$ 24.11					$ 35.81
Purchase of capped call							$ 56,680,000	$ 16,134,000	$ 0
Amortization of debt issuance costs							1,355,000	710,000	0
Common Stock
Debt Instrument [Line Items]
Share price (in dollars per share) \| $ / shares											$ 41.31
Convertible Debt
Debt Instrument [Line Items]
Long-Term Debt			$ 416,459,000				416,459,000	134,243,000
Unamortized debt issuance costs			11,800,000				11,800,000	4,600,000
Interest expense							7,000,000	3,200,000
Gain on extinguishment of PPP loan							(34,423,000)	0	$ 0
Convertible Senior Notes Due 2026
Debt Instrument [Line Items]
Convertible debt, conversion ratio						0.0301427
Share price (in dollars per share) \| $ / shares													$ 26.02
Cap price (in USD per share) \| $ / item						45.535
Premium over stock price (percent)						75.00%
Capped-call transaction term, consecutive trading days \| day						40
Purchase of capped call						$ 16,100,000
Convertible Senior Notes Due 2026 \| Common Stock
Debt Instrument [Line Items]
Conversion price (in dollars per share) \| $ / shares												$ 33.18
Convertible Senior Notes Due 2026 \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, aggregate principal amount												$ 138,300,000
Debt instrument, interest rate (as a percent)				2.25%								2.25%
Proceeds from convertible notes, net of unamortized debt issuance costs						$ 133,600,000
Cash used for repurchase				$ 45,776,000
Payment of accrued interest				$ 300,000
Shares issued in debt conversion (in shares) \| shares				1,354,348
Extinguishment of debt				$ 69,125,000
Long-Term Debt			67,572,000				67,572,000	134,243,000		$ 69,100,000
Redemption threshold percentage of stock price trigger						130.00%
Redemption threshold trading days \| day						20
Redemption threshold consecutive trading days \| day						30
Redemption price (as a percent)						100.00%
Required outstanding amount not subject to redemption						$ 50,000,000
Debt fair value			103,800,000				103,800,000
Unamortized debt issuance costs				3,648,000
Portion of 2026 Note principal exchanged				1,824,000			$ 1,800,000
Effective interest rate during period							2.98%
Gain on extinguishment of PPP loan				$ 34,423,000
Convertible Senior Notes Due 2026 \| Convertible Debt \| Level 2
Debt Instrument [Line Items]
Convertible debt at fair value			103,800,000				$ 103,800,000
Convertible Senior Notes Due 2026 \| Convertible Debt \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price (as a percent)						100.00%
Incremental repurchase amount						$ 1,000
Convertible Senior Notes Due 2028
Debt Instrument [Line Items]
Convertible debt, conversion ratio				0.018986
Share price (in dollars per share) \| $ / shares													41.31
Cap price (in USD per share) \| $ / item				82.62
Premium over stock price (percent)				100.00%
Capped-call transaction term, consecutive trading days \| day				40
Purchase of capped call				$ 32,000,000.0
Convertible Senior Notes Due 2028 \| Common Stock
Debt Instrument [Line Items]
Conversion price (in dollars per share) \| $ / shares				$ 52.67
Convertible Senior Notes Due 2028 \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, aggregate principal amount				$ 240,000,000
Debt instrument, interest rate (as a percent)				2.25%
Proceeds from convertible notes, net of unamortized debt issuance costs				$ 232,400,000
Additional principal				$ 10,000,000
Long-Term Debt			233,092,000				$ 233,092,000	0
Redemption threshold percentage of stock price trigger				130.00%
Redemption threshold trading days \| day				20
Redemption threshold consecutive trading days \| day				30
Redemption price (as a percent)				100.00%
Required outstanding amount not subject to redemption				$ 100,000,000
Effective interest rate during period							2.82%
Convertible Senior Notes Due 2028 \| Convertible Debt \| Level 2
Debt Instrument [Line Items]
Convertible debt at fair value			$ 249,300,000				$ 249,300,000
Convertible Senior Notes Due 2028 \| Convertible Debt \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price (as a percent)				100.00%
Incremental repurchase amount				$ 1,000
Convertible Senior Notes Due 2028 \| Convertible Debt \| Voce Capital Management LLC
Debt Instrument [Line Items]
Debt instrument, aggregate principal amount				$ 230,000,000
Convertible Senior Notes Due 2029
Debt Instrument [Line Items]
Convertible debt, conversion ratio			0.0171378
Share price (in dollars per share) \| $ / shares													$ 49.66
Cap price (in USD per share) \| $ / item				99.32
Premium over stock price (percent)				100.00%
Capped-call transaction term, consecutive trading days \| day				40
Purchase of capped call				$ 25,100,000
Convertible Senior Notes Due 2029 \| Common Stock
Debt Instrument [Line Items]
Conversion price (in dollars per share) \| $ / shares			$ 58,350				$ 58,350
Convertible Senior Notes Due 2029 \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, aggregate principal amount			$ 120,000,000				$ 120,000,000
Debt instrument, interest rate (as a percent)			4.00%				4.00%
Proceeds from convertible notes, net of unamortized debt issuance costs			$ 115,800,000
Long-Term Debt			115,795,000				$ 115,795,000	$ 0
Required outstanding amount not subject to redemption						$ 100,000,000
Effective interest rate during period							4.63%
Convertible Senior Notes Due 2029 \| Convertible Debt \| Level 2
Debt Instrument [Line Items]
Convertible debt at fair value			$ 122,200,000				$ 122,200,000
Convertible Senior Notes Due 2026, First Conversion Trigger \| Convertible Debt
Debt Instrument [Line Items]
Conversion threshold trading days \| day						20
Threshold consecutive trading days \| day						30
Conversion threshold percentage of stock price trigger						130.00%
Convertible Senior Notes Due 2026, Second Conversion Trigger \| Convertible Debt
Debt Instrument [Line Items]
Conversion threshold trading days \| day						5
Threshold consecutive trading days \| day						5
Conversion threshold percentage of stock price trigger						98.00%
Convertible Senior Notes Due 2028, First Conversion Trigger \| Convertible Debt
Debt Instrument [Line Items]
Conversion threshold trading days \| day				20
Threshold consecutive trading days \| day				30
Redemption threshold percentage of stock price trigger				130.00%
Convertible Senior Notes Due 2028, Second Conversion Trigger \| Convertible Debt
Debt Instrument [Line Items]
Conversion threshold trading days \| day				5
Threshold consecutive trading days \| day				5
Conversion threshold percentage of stock price trigger				98.00%
Loan and Security Agreement \| Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity											$ 230,000,000
Loan and Security Agreement \| Silicon Valley Bank \| Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, interest rate (as a percent)	5.00%
Debt instrument term (in years)	4 years
Maximum borrowing capacity	$ 30,000,000
Qualifying accounts receivable (as a percent)	80.00%
Commitment fee amount	$ 300,000
Anniversary fee amount	300,000
Quarterly minimum revenue	$ 90,000,000
Loan and Security Agreement \| Silicon Valley Bank \| Revolving Credit Facility \| Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.75%
PPP loan
Debt Instrument [Line Items]
Debt instrument, interest rate (as a percent)		1.00%
Proceeds from PPP loan		$ 7,200,000
Gain on extinguishment of PPP loan					$ 7,200,000

Debt - Components of the Loss on Debt Extinguishment (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	May 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	May 24, 2022	Mar. 04, 2021	Dec. 31, 2019
Extinguishment of Debt [Line Items]
Share price (in dollars per share)		$ 44.22	$ 41.32	$ 24.11			$ 35.81
Common Stock
Extinguishment of Debt [Line Items]
Share price (in dollars per share)					$ 41.31
Convertible Senior Notes Due 2026
Extinguishment of Debt [Line Items]
Share price (in dollars per share)						$ 26.02
Convertible Debt
Extinguishment of Debt [Line Items]
Unamortized debt issuance costs		$ 11,800	$ 4,600
Loss on debt extinguishment		(34,423)	$ 0	$ 0
Convertible Debt \| Convertible Senior Notes Due 2026
Extinguishment of Debt [Line Items]
Shares issued in debt conversion (in shares)	1,354,348
Value of shares issued	$ 55,948
Cash used for repurchase	45,776
Total shares and cash	101,724
2026 Note principal exchanged	(69,125)
Value of shares and cash exchanged	32,599
Unamortized debt issuance costs	$ 3,648
Portion of 2026 Note principal exchanged	50.00%
Portion of 2026 Note principal exchanged	$ 1,824	$ 1,800
Loss on debt extinguishment	$ 34,423

Subsequent Events (Details) $ in Millions	Dec. 31, 2022 USD ($)
Subsequent Event [Line Items]
Cash, FDIC insured amount	$ 305
Investments and cash	317
US Government Treasury Securities And Money Market Funds
Subsequent Event [Line Items]
Cash, FDIC insured amount	198
Cash Sweep Investment Funds
Subsequent Event [Line Items]
Cash, FDIC insured amount	$ 107

Schedule II - Valuation and Qualifying Accounts - Summary of the Deferred Tax Assets Valuation Allowance and Allowance for Doubtful Accounts Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets valuation allowance
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Year	$ 40,485	$ 38,321	$ 32,350
Additions	18,153	7,503	7,986
Deductions	5,520	5,339	2,015
Balance at End of Year	53,118	40,485	38,321
Allowance for credit losses, accounts receivable
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Year	899	1,598	1,354
Additions	1,787	271	2,144
Deductions	189	970	1,900
Balance at End of Year	$ 2,497	$ 899	$ 1,598