0001628280-24-022628 | 10-K | XBRL Viewer

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Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 143,612	$ 145,924
Marketable investments	0	171,390
Accounts receivable, net of allowance for credit losses of $9,878 and $2,497, respectively	43,121	45,562
Inventories	62,600	63,628
Other current assets and prepaid expenses	19,852	24,036
Restricted cash	0	700
Total current assets	269,185	451,240
Long-term inventories	16,283	0
Property and equipment, net	37,275	40,368
Deferred tax assets	579	590
Operating lease right-of-use assets	10,055	12,831
Goodwill	1,339	1,339
Other long-term assets	11,575	14,620
Total assets	346,291	520,988
Current liabilities:
Accounts payable	19,829	33,736
Accrued liabilities	55,055	57,452
Operating lease liabilities	2,441	2,810
Deferred revenue	10,422	11,841
Total current liabilities	87,747	105,839
Deferred revenue, net of current portion	1,494	1,657
Operating lease liabilities, net of current portion	8,887	11,352
Convertible notes, net of unamortized debt issuance costs of $10,430 and $12,666, respectively	418,695	416,459
Other long-term liabilities	1,298	862
Total liabilities	518,121	536,169
Commitments and contingencies (Note 13).
Stockholders’ deficit:
Common stock, $0.001 par value: Authorized: 50,000,000 shares; Issued and outstanding: 19,960,622 and 19,668,603 shares at December 31, 2023 and 2022, respectively	20	20
Additional paid-in capital	131,496	125,406
Accumulated other comprehensive loss	0	(94)
Accumulated deficit	(303,346)	(140,513)
Total stockholders’ deficit	(171,830)	(15,181)
Total liabilities and stockholders’ deficit	$ 346,291	$ 520,988

Balance Sheet Detail

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Detail

BALANCE SHEET DETAIL

Inventories

Valuation adjustments for excess and obsolete inventory, reflected as a reduction of inventory at December 31, 2023 and 2022, were $13.0 million and $3.6 million, respectively.

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


	December 31,
	2023		2022
Raw materials	$	36,970	$	36,323
Work in process	889		2,117
Finished goods	24,741		25,188
Total	$	62,600	$	63,628

Long-term inventories

Valuation adjustments for excess and obsolete inventory, reflected as a reduction of long-term inventory at December 31, 2023, was $12.8 million. The Company’s long-term inventories relate to AviClear devices, and parts for device manufacturing, not expected to be sold in the twelve months ended December 31, 2024.

Long-term inventories of these adjustments, consist of the following (in thousands):


	December 31,
	2023		2022
Raw materials	$	8,672	$	—
Work in process	2,049		—
Finished goods	5,562		—
Total	$	16,283	$	—

Other current assets and prepaid expenses

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


	December 31,
	2023		2022
Deposits with vendors	$	9,501	$	13,917
Foreign tax receivable	6,307		7,147
Prepayments	3,819		2,972

Other	225		—
Total	$	19,852	$	24,036

Property and Equipment, net

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


	December 31,
	2023		2022
Leasehold improvements	$	1,010	$	793

AviClear devices	38,490		19,904
Office equipment and furniture	1,884		1,936
Machinery and equipment	4,944		5,106
Assets under construction	1,274		17,876
	47,602		45,615
Less: Accumulated depreciation	(10,327)		(5,247)
Property and equipment, net	$	37,275	$	40,368

In November 2023, the Company introduced a new business model for AviClear, providing for the purchase of the device upfront. From the FDA approval in April 2022 through October 2023, AviClear devices were leased to customers, and parts and devices not yet placed in service were recorded as property and equipment on the consolidated balance sheet, and further categorized as assets under construction. As a result of the new business model, the Company has determined to classify AviClear parts and devices not currently leased as inventories at December 31, 2023. AviClear devices currently leased continue to be classified as property and equipment on the consolidated balance sheet.

The Company identified indicators of impairment during the twelve months ended December 31, 2023, including a decline in financial results and market capitalization. The Company evaluated its long-lived assets, including property and equipment, for potential impairment and concluded that an impairment was not required. An impairment may potentially result in partial or full write-down of these balances. The Company will continue to monitor financial results and market capitalization. Should the financial results continue to deteriorate, an impairment of long-lived assets, including property and equipment, may become reasonably possible.

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, 2023 and 2022.

The Company assesses goodwill for impairment at the reporting unit level at least annually and may test more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable.

In the fourth quarter of 2023, the Company identified indicators of impairment, including a decline in the market capitalization. The Company performed an impairment test by comparing the fair value with its carrying value, including goodwill, and concluded it is unlikely to have a fair value below the carrying value. The Company concluded that no impairment charges were required during the year ended December 31, 2023.

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):


	December 31,
	2023		2022
Bonus and payroll-related accruals	$	13,949	$	18,951
Accrued sales tax	6,325		9,066
Liability for inventory in transit	5,461		7,028
Sales and marketing accruals	4,929		5,347
Product warranty	2,593		3,254
Jabil settlement obligation, net (Note 16)	8,908		—

Other accrued liabilities	12,890		13,806
Total	$	55,055	$	57,452

Deferred Revenue - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue	$ 11,916	$ 13,498	$ 10,825
Costs for extended service contracts	7,300	6,300	8,300
Accounts receivable, net	$ 43,121	45,562	$ 31,400
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
Deferred License Fee
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue	$ 2,100	$ 2,300
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue balance (as a percent)	87.00%
Deferred revenue balance, amount	$ 11,900
Deferred revenue balance, recognition period (in months)	12 months

Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

NET INCOME (LOSS) PER SHARE

As of December 31, 2023, the Company’s convertible notes were potentially convertible into 8,696,792 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, 2023, 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, 2023 and 2022, 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,
	2023		2022		2021
Numerator:
Net income (loss)	$	(162,833)	$	(82,340)	$	2,062
Denominator:
Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic	19,885		18,747		17,891
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	19,885		18,747		18,362
Net income (loss) per share:
Net income (loss) per share, basic	$	(8.19)	$	(4.39)	$	0.12
Net income (loss) per share, diluted	$	(8.19)	$	(4.39)	$	0.11

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,
	2023	2022	2021
Capped call	10,780	10,780	4,167
Convertible debt	8,697	8,697	4,167
Options to purchase common stock	1,282	514	166
Restricted stock units	682	460	32
Employee stock purchase plan shares	—	38	—
Performance stock units	227	446	120
Total	21,668	20,935	8,652

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Restricted Stock Units Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Number of Shares
Granted (in shares)		296,238	172,139
Weighted-Average Grant- Date Fair Value
Stock price (in dollars per share)	$ 3.53	$ 44.22	$ 41.32	$ 24.11
RSUs
Number of Shares
Outstanding (in shares)	906,211	1,032,904	779,757
Granted (in shares)	829,866	374,274	744,949
Vested (in shares)	(298,485)	(340,836)	(254,946)
Forfeited (in shares)	(527,730)	(160,131)	(236,856)
Outstanding (in shares)	909,862	906,211	1,032,904
Weighted-Average Grant- Date Fair Value
Outstanding (in dollars per share)	$ 40.39	$ 35.00	$ 23.96
Granted (in dollars per share)	14.43	45.36	40.16
Vested (in dollars per share)	35.61	29.04	22.94
Forfeited (in dollars per share)	36.56	41.48	27.33
Outstanding (in dollars per share)	$ 20.46	$ 40.39	$ 35.00
Vested, aggregate fair value	$ 9,597	$ 15,443	$ 8,287
Aggregate intrinsic value	$ 3,212	$ 40,073	$ 42,680	$ 18,800
Stock price (in dollars per share)	$ 3.53	$ 44.22	$ 41.32	$ 24.11
Grant date fair value of awards vested	$ 10,600	$ 9,900	$ 5,800

Balance Sheet Detail - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 47,602	$ 45,615
Less: Accumulated depreciation	(10,327)	(5,247)
Property and equipment, net	37,275	40,368
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,010	793
AviClear devices
Property, Plant and Equipment [Line Items]
Property and equipment, gross	38,490	19,904
Office equipment and furniture
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,884	1,936
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,944	5,106
Assets under construction
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,274	$ 17,876

Deferred Revenue - Schedule of Deferred Service Contract Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Change in Contract with Customer, Liability [Roll Forward]
Beginning balance	$ 13,498	$ 10,825
Add: Payments received from current period sales	21,040	21,984
Less: Revenue recognized from current period sales	(11,732)	(9,928)
Less: Revenue recognized from beginning balance	(10,890)	(9,383)
Ending balance	$ 11,916	$ 13,498

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock-based Compensation Expense by Department (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 8,064	$ 14,400	$ 13,172
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	751	1,665	1,408
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	3,387	4,998	3,160
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	1,082	2,405	2,784
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 2,844	$ 5,332	$ 5,820

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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 and Secret PRO and Secret RF systems and consumables. 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 sale of systems, hand pieces, upgrade of systems, and leasing and direct sales of AviClear devices (collectively “Systems” revenue); replacement hand pieces, truSculpt cycle refills, truFlex cycle refills, AviClear treatment fees, and single use disposable tips applicable to Secret RF (“Consumables” revenue); and 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 and service parts and 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, New Zealand, Austria, France, Germany, Hong Kong, Japan, Switzerland, the United Kingdom and Ireland. 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.

Liquidity and Management’s Plans

When preparing financial statements, management has the responsibility to evaluate if the Company has adequate liquidity to continue to operate for the next twelve months. In performing this assessment, management considered the Company's current financial condition and liquidity sources, including current funds, forecasted future cash flows and unconditional obligations due over the next twelve months. In addition, management evaluated the history of the Company's financial performance, and determined that the Company has had a historic trend of operating losses, which continues to have an unfavorable impact on the Company's overall liquidity. Most recently, the Company reported net losses of $162.8 million and $82.3 million for the years ended December 31, 2023 and 2022.

The Company believes that it will continue as a going concern for the twelve months from the issuance of its consolidated financial statements. The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

The Company’s continued operations will depend on several factors, including but not limited to, growth of revenues from its revised business model for AviClear announced in November 2023, which entails transitioning from a lease model to a direct sales model, maintaining or increasing revenues from sales of legacy systems, consumables and services, achieving cost savings as a result of workforce reductions implemented in the fourth quarter of 2023, restructuring of supplier and manufacturing relationships, and initiatives to improve inventory and receivables management. Failure to increase revenue, achieve cost savings, raise additional financing or re-finance the existing convertible notes when they become due, would adversely affect the Company’s ability to achieve its intended business objectives. There can be no assurances that financing will be available on terms favorable to the Company, if at all, and delays may occur in completing the operating activities.

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”).

Reclassification

Certain reclassifications of prior period amounts have been made in the Company's consolidated statement of cash flows to conform to the current period presentation. These reclassifications had no effect on the reported net changes in operating, investing and financing activities, as well as net change in cash, cash equivalents, and restricted cash.

Certain reclassifications of prior period amounts have been made in the Company's consolidated statement of operations to conform to the current period presentation. These reclassifications had no effect on the reported net income (loss).

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, the Company's ability to obtain and maintain regulatory approvals, government regulations and oversight, patent and other types of litigation, the Company's ability to protect proprietary technology from counterfeit versions of the Company's products and its intellectual property rights generally, the successful execution of new product launches, the continuation of strategic relationships, such as the Company's distribution of third-party products, and dependence on key individuals.

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, fair value of investments, valuation of inventories, fair value of goodwill, useful lives of property and equipment, impairment testing for long-lived assets, implicit and incremental borrowing rates related to the Company’s leases, variables used in calculating the fair value of the Company's equity awards, expected achievement of performance-based vesting criteria and management performance bonuses, assumptions used in operating and sales-type lease classifications, the standalone selling price of the Company's products and services, the period of benefit used to capitalize and amortize contract acquisition costs, variable considerations, contingent liabilities, recoverability of deferred tax assets, 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.

Recently Issued Accounting Pronouncements Not Yet Adopted by the Company

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740) - Improvements to Income Tax Disclosures,” to enhance the transparency and usefulness of income tax disclosures. The update requires enhancements to the annual rate reconciliation, including disclosure of specific categories and additional information for reconciling items meeting a quantitative threshold. The update also requires disclosure of income taxes paid disaggregated by federal, state and foreign taxes, and individual jurisdictions meeting a quantitative threshold. The amendments in this update are effective for public business entities for annual periods beginning after December 15, 2024, and may be adopted on a prospective or retrospective basis. Early adoption is permitted. The Company is currently evaluating the effect that the updated standard will have on the Company's financial statement disclosures.

In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which will require the Company to disclose segment expenses that are significant and regularly provided to the Company’s chief operating decision maker (“CODM”). In addition, ASU 2023-07 will require the Company to disclose the title and position of its CODM and how the CODM uses segment profit or loss information in assessing segment performance and deciding how to allocate resources. The Company is currently evaluating the effect that the updated standard will have on the Company's financial statement disclosures.

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 11%, 8%, and 11%, respectively, of the Company’s total revenue for the years ended December 31, 2023, 2022, and 2021.

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), 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.

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 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 leases certain AviClear devices 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. In the fourth quarter of 2023, the Company announced a change in the AviClear business strategy and moved towards a direct sales model rather than a leasing model, whereby certain existing lessees were offered an option to purchase the leased AviClear device. For the devices under the leasing model, the Company classifies its lease income and direct sales as product revenue and classifies the AviClear lease 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 as consumable revenue in the period the treatment protocol is initiated.

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

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, AviClear treatment fee revenue, 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. Revenue for consumables and other accessories is recognized when products are shipped to customers.

Skincare products

The Company sold third-party manufactured skincare products in Japan. The skincare products were purchased from a third-party manufacturer and sold to medical offices and licensed physicians. The Company warranted that the skincare products are free of significant defects in workmanship and materials for 90 days from shipment. On February 28, 2024, the Company and its Japanese subsidiary, Cutera KK, entered into a termination agreement with ZO USA and its Japanese subsidiary, ZO Skin Health GK (“ZO Japan” and together with ZO USA and their affiliates, “ZO”), which terminated all agreements related to the distribution by the Company of ZO’s products in Japan. The Company acted as the principal in this arrangement, as the Company determined the price to charge customers for the skincare products and controlled the products before they were transferred to the customer. The Company recognized revenue for skincare products at a point in time upon shipment.

Extended service contracts

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 90 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.

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

Deferred Sales Commissions

Incremental costs of obtaining a contract 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 years ended December 31, 2023 and December 31, 2022 were $1.0 million and $2.0 million, respectively. Amortization expenses for these assets were $2.4 million, $2.4 million and $1.9 million, respectively, during the years ended December 31, 2023, 2022 and 2021 and were included in sales and marketing expense in the Company’s consolidated statement of operations. Total capitalized costs as of December 31, 2023 and December 31, 2022 were $2.4 million and $3.8 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.

Financial instruments consist of cash and cash equivalents, restricted cash, accounts receivables, derivative financial instruments, accounts payables, and accrued liabilities. Cash and cash equivalents, restricted cash, accounts receivables, accounts payables, and accrued liabilities are stated at their carrying value, which approximates fair value due to their short-term nature. Cash equivalents are stated at fair value on a recurring basis as disclosed in Note 3 below.

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.

Allowances for Sales Returns and Credit Losses

Allowance for Sales Returns and Credit Losses

The allowance for sales returns represents the Company’s estimate of potential future product returns and other allowances related to current period product revenue, based on the Company's analysis of historical returns and 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 Silicon Valley Bank (“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, 2023 and 2022, no customer represented more than 10% of the Company’s net accounts receivable. During the years ended December 31, 2023, 2022, and 2021, domestic revenue accounted for 42%, 43%, and 42%, respectively, of total revenue, while international revenue accounted for 58%, 57% and 58%, respectively, of total revenue. No single customer represented more than 10% of total revenue for any of the years ended December 31, 2023, 2022, and 2021.

Distribution of Third-Party Products

The Company generated revenue from the distribution of skincare products, which were manufactured by ZO Skin Health, Inc. (“ZO”), and sold in the Japanese market. In the years ended December 31, 2023, 2022, and 2021 revenue from the distribution of skincare products was $34.0 million, $42.5 million, and $49.7 million, respectively, representing 16%, 17%, and 21% of the Company’s consolidated revenue, respectively.

On February 28, 2024, the Company and its Japanese subsidiary, Cutera KK, entered into a termination agreement with ZO, which terminated all agreements related to the distribution by the Company of ZO’s products in Japan, as further disclosed in Note 16. Subsequent Events to the Company's consolidated financial statements.

The Company generates revenue from the distribution of the Secret systems, which are manufactured by Ilooda Co. Ltd. (“ilooda”). The Company is the exclusive distributor for all systems sold in North America and the United Kingdom; the exclusive distributor for certain systems in France and Spain; and the non-exclusive distributor for systems sold in Austria and Germany. In the years ended December 31, 2023, 2022, and 2021, revenue from the distribution of Secret products was $9.2 million, $14.8 million, and $12.3 million, respectively, representing 4%, 6%, and 5% of the Company’s consolidated revenue, respectively. The Company‘s ilooda distribution agreement expires on June 30, 2026.

In March 2023, Serendia, LLC (“Serendia”) filed patent infringement complaints against the Company regarding the Secret RF and Secret Pro systems distributed by the Company on behalf of ilooda. The complaints alleged infringement of six Serendia patents. Serendia and ilooda have moved to terminate the ITC Investigation as to ilooda and Cutera on the basis of settlement with Serendia. The ITC investigation as to ilooda and the Company was terminated as of April 10, 2024 and the Delaware litigation was dismissed as of April 3, 2024.

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 7%, 10% and 14% of the Company's total purchases in the years ended December 31, 2023, 2022, and 2021, respectively.

Inventories

Inventories are stated at the lower of cost or 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, 2023 and 2022, demonstration inventories, net of accumulated depreciation, included in finished goods inventory was $5.8 million and $5.7 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 (Years)
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 the years ended December 31, 2023, 2022 and 2021, was $8.1 million, $2.2 million, and $1.3 million, respectively. Amortization expense for vehicles leased under capital leases is included in depreciation expense.

Capitalized Cloud Computing Set-up Cost

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.

As of December 31, 2023, there has been no impairment of goodwill. All acquired intangible assets have been fully amortized as of December 31, 2023.

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.

Leases & Accounting for Leases as a Lessee

Leases

The Company incurs costs to fulfill its lease agreement obligations with its AviClear device lessees. These costs consist of freight, installation, and training. In addition to these mobilization costs, the Company incurs commission costs associated with the placement of the AviClear device. The Company capitalizes commission costs and has made a policy election to capitalize the mobilization costs.

Accounting for Leases as a Lessee

The Company adopted 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 statements 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 statements of operations as lease costs on a straight-line basis over the lease term.

Accounting for Leases as a Lessor

The Company leases certain AviClear devices 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 as consumable revenue in the period the treatment protocol is initiated.

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 including 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.

Stock-based Compensation

The Company accounts for stock-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.

The fair value of restricted stock units (“RSUs”) granted are measured on the grant date. 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 fair value of each option is determined using the Black-Scholes option pricing model, which used the following inputs:

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 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.

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.

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.

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 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 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 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 for income taxes.

The Company’s effective tax rates have differed from the statutory rate primarily due to changes in the valuation allowance 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, 2023 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. Gains resulting from foreign currency transactions included in net income (loss) were $0.3 million in the year ended December 31, 2023 and losses were $3.6 million and $1.8 million in the years ended December 31, 2022 and 2021, respectively. The effect of exchange rate changes on cash and cash equivalents was insignificant for the years ended December 31, 2023, 2022 and 2021.

Segments

The Company operates in one segment and reports segment information in accordance with ASC 280, Segment Reporting. Management uses one measure of profitability and does not segregate its business for internal reporting. Revenue is attributed to a geographic region based on the location of the end customer.

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Narrative (Details)		1 Months Ended				12 Months Ended
	Jan. 12, 2004 shares	Jul. 31, 2023 shares	Jun. 30, 2022 shares	Jul. 31, 2021 tranche shares	Jun. 30, 2021 shares	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 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)						19,960,622	19,668,603
Common stock outstanding (in shares)						19,960,622	19,668,603
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
Percentage of awards officers are required to hold for a minimum of one year										50.00%
Awards granted (in shares)							296,238	172,139
Number of vesting tranches \| tranche				4
Tax withholding ratio						1.65
Intrinsic value of options exercised \| $						$ 300,000	$ 1,100,000	$ 1,300,000
Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value \| $						$ 73,964
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)						829,866	374,274	744,949
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)						57,039	12,496	41,301
RSUs \| Share-based Payment Arrangement, Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)						533,981	191,993	219,686
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		239,777	169,785	178,222
PSUs \| Share-based Payment Arrangement, Employee \| Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
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]
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
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)		1,300,000	600,000		450,000				600,000
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
2023 Inducement Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock reserved for issuance (in shares)						2,500,000
Shares issued (in shares)						95,920
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)						51,786	49,306	59,635
Shares available for future issuance (in shares)						326,800

Product Warranty (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023 and 2022 (in thousands):


	December 31,
	2023		2022
Balance at beginning of year	$	3,254	$	3,947
Add: Accruals for warranties issued during the period	4,987		3,710
Less: Settlements made during the period	(5,648)		(4,403)
Balance at end of year	$	2,593	$	3,254

Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

There were no derivative instruments outstanding as of December 31, 2023 and the dollar amounts of outstanding derivative instruments as of December 31, 2022 is presented in thousands below:

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.

+ References + Details

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Schedule of Financial Statement Information

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


		Year Ended December 31,
		2023		2022
Assets	Classification
Right-of-use assets	Operating lease right-of-use assets	$	10,055	$	12,831
Finance lease	Property and equipment, net	2,516		1,606
Total leased assets		$	12,571	$	14,437


		Year Ended December 31,
		2023		2022
Liabilities	Classification

Operating lease liabilities, current	Operating lease liabilities	$	2,441	$	2,810
Operating lease liabilities, non-current	Operating lease liabilities, net of current portion	8,887		11,352
Total Operating lease liabilities		$	11,328	$	14,162


		Year Ended December 31,
	Classification	2023		2022
Finance lease liabilities
Finance lease liabilities, current	Accrued liabilities	$	825	$	485
Finance lease liabilities, non-current	Other long-term liabilities	1,064		825
Total Finance lease liabilities		$	1,889	$	1,310

Lease costs during the twelve months ended December 31, 2023, 2022 and 2021 (in thousands):


		Year Ended December 31,
		2023		2022		2021
Finance lease cost	Amortization expense	$	790	$	643	$	484
Finance lease cost	Interest for finance lease	$	116	$	76	$	59
Operating lease cost	Operating lease expense	$	3,598	$	3,560	$	3,542

Cash paid for amounts included in the measurement of lease liabilities during the twelve months ended December 31, 2023, 2022 and 2021 were as follows (in thousands):


		Year Ended December 31,
		2023		2022		2021
Operating cash flows	Finance lease	$	87	$	78	$	56
Financing cash flows	Finance lease	$	594	$	520	$	462
Operating cash flows	Operating lease	$	3,297	$	2,526	$	3,092

Schedule of Operating Lease Liability

Maturities of operating lease liabilities were as follows as of December 31, 2023 (in thousands):


	Amount
2024	$	2,932
2025	2,935
2026	3,030
2027	3,133
2028	325
Thereafter	147
Total lease payments	12,502
Less: imputed interest	(1,174)
Present value of lease liabilities	$	11,328

Schedule of Finance Lease Liability

As of December 31, 2023, the Company was committed to minimum lease payments for vehicles leased under long-term non-cancelable finance leases as follows (in thousands):


	Amount
2024	$	954
2025	704
2026	424
2027	16
Total lease payments	2,098
Less: imputed interest	(209)
Present value of lease liabilities	$	1,889

Schedule of Lease Cost

Weighted-average remaining lease term and discount rate, as of December 31, 2023, were as follows:


Lease Term and Discount Rate
Weighted-average remaining lease term (years)
Operating leases	4.2
Finance leases	2.4
Weighted-average discount rate
Operating leases	4.8	%
Finance leases	9.0	%

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, 2023		Year Ended December 31, 2022
AviClear operating lease license fee revenue	$	5,386	$	922
AviClear operating lease treatment revenue	10,451		3,534

Total AviClear revenue	$	15,837	$	4,456

Schedule of Future Minimum Lease Payments

The following is the minimum future lease payments as of December 31, 2023, under non-cancelable operating leases, assuming the minimum contractual lease term (in thousands):


	Amount
2024	$	7,220
2025	3,185
Total	$	10,405

Income Taxes

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
U.S.	$	(165,784)	$	(84,189)	$	(356)
Foreign	4,485		3,487		3,741
Income (loss) before income taxes	$	(161,299)	$	(80,702)	$	3,385

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


	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	—	$	52	$	—
State	46		126		(87)
Foreign	1,471		1,275		1,512
Total Current	1,517		1,453		1,425
Deferred:
Federal	6		2		2
State	1		1		1
Foreign	10		182		(105)
Total Deferred	17		185		(102)
Tax provision	$	1,534	$	1,638	$	1,323

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


	December 31,
	2023		2022
Net operating loss carryforwards	$	47,406	$	21,443
Stock-based compensation	2,014		2,594
Other accruals and reserves	12,552		4,592
Credits	18,614		14,908
Accrued warranty	759		778
Depreciation and amortization	1,241		1,857
Section 174 Costs	13,391		7,578
Other	2,965		1,541
Operating lease liability	2,842		3,384
Deferred tax asset before valuation allowance	101,784		58,675
Valuation allowance	(97,280)		(53,118)
Deferred tax asset after valuation allowance	4,504		5,557
Deferred contract acquisition costs	(1,287)		(1,763)
Goodwill	(159)		(138)
Right of use asset	(2,479)		(3,066)
Net deferred tax asset (liability)	$	579	$	590

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,
	2023		2022		2021
U.S. federal statutory income tax rate	21.00	%	21.00	%	21.00	%
State tax rate	(0.02)		(0.16)		(2.55)
Meals and entertainment	(0.25)		(0.47)		9.28
Permanent differences	0.24		(0.07)		1.11
Stock-based compensation	(0.43)		0.89		(13.08)
Extinguishment of PPP loan	(0.07)		—		(44.59)
Debt extinguishment costs	—		(8.48)		—
Excess compensation	(0.19)		(1.34)		7.88
Foreign rate differential	(0.31)		(0.76)		17.03
General business credit	0.71		0.78		(17.95)
Valuation allowance	(21.52)		(11.41)		72.82
Change in prior year reserves	—		—		(0.08)
Deferred true-up	(0.33)		(2.02)		(11.76)
Effective tax rate	(1.17)	%	(2.04)	%	39.11	%

As of December 31, 2023, the Company recorded a valuation allowance of $97.3 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 $44.2 million and $12.6 million during the years ended December 31, 2023 and 2022, 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, 2023, the Company had approximately $190.7 million and $99.4 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 2030 through 2040, respectively. Approximately $154.2 million of total federal net operating loss carryforwards were generated after December 31, 2017 and have no expiration. At December 31, 2023, the Company had research and development tax credits available to offset federal and California tax liabilities in the amount of $11.5 million and $12.1 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 2018 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, 2021 to December 31, 2023 (in thousands):


	Year Ended December 31,
	2023		2022		2021
Balance at beginning of year	$	3,725	$	2,746	$	1,864
Increase (decrease) related to prior year tax positions	258		(36)		(37)

Increase related to current year tax positions	1,013		1,015		919
Balance at end of year	$	4,996	$	3,725	$	2,746

- 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
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

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, 2023	Dec. 31, 2022	Dec. 31, 2021
Stock options
Expected term (in years)	4 years 2 months 1 day	4 years 10 days	3 years 11 months 19 days
Risk-free interest rate	4.06%	1.99%	0.48%
Volatility	67.00%	66.00%	66.00%
Dividend yield (as a percent)	0.00%	0.00%	0.00%
Weighted average estimated fair value at grant date (in dollars per share)	$ 7.04	$ 19.76	$ 15.09
Stock Purchase Plan (ESPP)
Expected term (in years)	6 months	5 months 26 days	6 months
Risk-free interest rate	4.70%	3.79%	0.14%
Volatility	70.00%	69.00%	36.00%
Dividend yield (as a percent)	0.00%	0.00%	0.00%
Weighted average estimated fair value at grant date (in dollars per share)	$ 14.83	$ 15.77	$ 9.64

Segment Information and Revenue by Geography and Products - Narrative (Details) - segment	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Number of reportable segments	1
United States
Disaggregation of Revenue [Line Items]
Percentage of assets	99.60%	99.80%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 9,878	$ 2,497
Unamortized debt issuance costs	$ 10,430	$ 12,666
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)	19,960,622	19,668,603
Common stock outstanding (in shares)	19,960,622	19,668,603

Debt (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023		2022
Notes due in 2026

Outstanding principal amount	$	69,125	$	69,125
Unamortized debt issuance costs	(1,084)		(1,553)
Carrying Value	$	68,041	$	67,572

Notes due in 2028
Outstanding principal amount	$	240,000	$	240,000
Unamortized debt issuance costs	(5,714)		(6,908)
Carrying Value	$	234,286	$	233,092

Notes due in 2029
Outstanding principal amount	$	120,000	$	120,000
Unamortized debt issuance costs	(3,632)		(4,205)
Carrying Value	$	116,368	$	115,795

Convertible notes, net	$	418,695	$	416,459

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

Balance Sheet Detail - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Inventories
Raw materials	$ 36,970	$ 36,323
Work in process	889	2,117
Finished goods	24,741	25,188
Total	62,600	63,628
Long-term inventories
Raw materials	8,672	0
Work in process	2,049	0
Finished goods	5,562	0
Total	$ 16,283	$ 0

Product Warranty

12 Months Ended

Dec. 31, 2023

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, 2023 and 2022 (in thousands):


	December 31,
	2023		2022
Balance at beginning of year	$	3,254	$	3,947
Add: Accruals for warranties issued during the period	4,987		3,710
Less: Settlements made during the period	(5,648)		(4,403)
Balance at end of year	$	2,593	$	3,254

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
U.S.	$	(165,784)	$	(84,189)	$	(356)
Foreign	4,485		3,487		3,741
Income (loss) before income taxes	$	(161,299)	$	(80,702)	$	3,385

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,
	2023		2022		2021
Current:
Federal	$	—	$	52	$	—
State	46		126		(87)
Foreign	1,471		1,275		1,512
Total Current	1,517		1,453		1,425
Deferred:
Federal	6		2		2
State	1		1		1
Foreign	10		182		(105)
Total Deferred	17		185		(102)
Tax provision	$	1,534	$	1,638	$	1,323

Schedule of Deferred Tax Assets and Liabilities

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


	December 31,
	2023		2022
Net operating loss carryforwards	$	47,406	$	21,443
Stock-based compensation	2,014		2,594
Other accruals and reserves	12,552		4,592
Credits	18,614		14,908
Accrued warranty	759		778
Depreciation and amortization	1,241		1,857
Section 174 Costs	13,391		7,578
Other	2,965		1,541
Operating lease liability	2,842		3,384
Deferred tax asset before valuation allowance	101,784		58,675
Valuation allowance	(97,280)		(53,118)
Deferred tax asset after valuation allowance	4,504		5,557
Deferred contract acquisition costs	(1,287)		(1,763)
Goodwill	(159)		(138)
Right of use asset	(2,479)		(3,066)
Net deferred tax asset (liability)	$	579	$	590

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,
	2023		2022		2021
U.S. federal statutory income tax rate	21.00	%	21.00	%	21.00	%
State tax rate	(0.02)		(0.16)		(2.55)
Meals and entertainment	(0.25)		(0.47)		9.28
Permanent differences	0.24		(0.07)		1.11
Stock-based compensation	(0.43)		0.89		(13.08)
Extinguishment of PPP loan	(0.07)		—		(44.59)
Debt extinguishment costs	—		(8.48)		—
Excess compensation	(0.19)		(1.34)		7.88
Foreign rate differential	(0.31)		(0.76)		17.03
General business credit	0.71		0.78		(17.95)
Valuation allowance	(21.52)		(11.41)		72.82
Change in prior year reserves	—		—		(0.08)
Deferred true-up	(0.33)		(2.02)		(11.76)
Effective tax rate	(1.17)	%	(2.04)	%	39.11	%

Schedule of Unrecognized Tax Benefits Roll Forward


	Year Ended December 31,
	2023		2022		2021
Balance at beginning of year	$	3,725	$	2,746	$	1,864
Increase (decrease) related to prior year tax positions	258		(36)		(37)

Increase related to current year tax positions	1,013		1,015		919
Balance at end of year	$	4,996	$	3,725	$	2,746

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, 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 (loss) on available-for-sale investments	0
Balance (in shares) at Dec. 31, 2021		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
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
Issuance of common stock in repayment of convertible notes (in shares)		1,354,348
Issuance of common stock in repayment of convertible notes	55,949	$ 2	55,947
Net income (loss)	(82,340)			(82,340)
Net change in unrealized gain (loss) 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)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for employee purchase plan (in shares)		51,786
Issuance of common stock for employee purchase plan	$ 711		711
Exercise of stock options (in shares)	42,234	42,234
Exercise of stock options	$ 612		612
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes (in shares)		197,999
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes	(3,297)		(3,297)
Stock-based compensation expense	8,064		8,064
Net income (loss)	(162,833)			(162,833)
Net change in unrealized gain (loss) on available-for-sale investments	$ 94				94
Balance (in shares) at Dec. 31, 2023	19,960,622	19,960,622
Balance at Dec. 31, 2023	$ (171,830)	$ 20	$ 131,496	$ (303,346)	$ 0

Cash, Cash Equivalents, Marketable Securities, and Restricted Cash - Schedule of Cash and Cash Equivalents and Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Cash and cash equivalents	$ 143,612	$ 145,924
Current restricted cash	$ 0	700
Cash, cash equivalents, and restricted cash as reported within the Consolidated Statements of Cash Flows		146,624
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)
Marketable investments:		$ 171,390

Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Commitments and Contingencies

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 7 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,
		2023		2022
Assets	Classification
Right-of-use assets	Operating lease right-of-use assets	$	10,055	$	12,831
Finance lease	Property and equipment, net	2,516		1,606
Total leased assets		$	12,571	$	14,437


		Year Ended December 31,
		2023		2022
Liabilities	Classification

Operating lease liabilities, current	Operating lease liabilities	$	2,441	$	2,810
Operating lease liabilities, non-current	Operating lease liabilities, net of current portion	8,887		11,352
Total Operating lease liabilities		$	11,328	$	14,162


		Year Ended December 31,
	Classification	2023		2022
Finance lease liabilities
Finance lease liabilities, current	Accrued liabilities	$	825	$	485
Finance lease liabilities, non-current	Other long-term liabilities	1,064		825
Total Finance lease liabilities		$	1,889	$	1,310

Lease costs during the twelve months ended December 31, 2023, 2022 and 2021 (in thousands):


		Year Ended December 31,
		2023		2022		2021
Finance lease cost	Amortization expense	$	790	$	643	$	484
Finance lease cost	Interest for finance lease	$	116	$	76	$	59
Operating lease cost	Operating lease expense	$	3,598	$	3,560	$	3,542

Cash paid for amounts included in the measurement of lease liabilities during the twelve months ended December 31, 2023, 2022 and 2021 were as follows (in thousands):


		Year Ended December 31,
		2023		2022		2021
Operating cash flows	Finance lease	$	87	$	78	$	56
Financing cash flows	Finance lease	$	594	$	520	$	462
Operating cash flows	Operating lease	$	3,297	$	2,526	$	3,092

Maturities of lease liabilities

Maturities of operating lease liabilities were as follows as of December 31, 2023 (in thousands):


	Amount
2024	$	2,932
2025	2,935
2026	3,030
2027	3,133
2028	325
Thereafter	147
Total lease payments	12,502
Less: imputed interest	(1,174)
Present value of lease liabilities	$	11,328

Vehicle Leases

As of December 31, 2023, the Company was committed to minimum lease payments for vehicles leased under long-term non-cancelable finance leases as follows (in thousands):


	Amount
2024	$	954
2025	704
2026	424
2027	16
Total lease payments	2,098
Less: imputed interest	(209)
Present value of lease liabilities	$	1,889

Weighted-average remaining lease term and discount rate, as of December 31, 2023, were as follows:


Lease Term and Discount Rate
Weighted-average remaining lease term (years)
Operating leases	4.2
Finance leases	2.4
Weighted-average discount rate
Operating leases	4.8	%
Finance leases	9.0	%

Lessor - AviClear

Lessor revenue

The Company leases certain AviClear devices 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. In the fourth quarter of 2023, the Company announced a change in the AviClear business strategy and moved towards a direct sales model rather than a leasing model, whereby certain existing lessees were offered an option to purchase the leased AviClear device. For the devices under the leasing model, the Company concluded the classification of the AviClear lease contracts remains 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, 2023		Year Ended December 31, 2022
AviClear operating lease license fee revenue	$	5,386	$	922
AviClear operating lease treatment revenue	10,451		3,534

Total AviClear revenue	$	15,837	$	4,456

The AviClear device being leased has a useful life of seven years.

The following is the minimum future lease payments as of December 31, 2023, under non-cancelable operating leases, assuming the minimum contractual lease term (in thousands):


	Amount
2024	$	7,220
2025	3,185
Total	$	10,405

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 years ended December 31, 2023 and 2022 were $3.8 million for both fiscal years. Amortization expenses for these assets were $4.3 million and $0.5 million, respectively during the fiscal years ended December 31, 2023 and 2022, and were included in sales and marketing expense in the Company’s consolidated statements of operations.

Total capitalized costs as of December 31, 2023 and 2022, were $2.7 million and $3.3 million, respectively, and were included in other long-term assets in the Company’s consolidated balance sheets.

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 years ended December 31, 2023 and 2022 were $2.8 million and $1.7 million, respectively. Amortization expenses for these assets were $2.1 million and $0.3 million during the fiscal years ended December 31, 2023, and were included in cost of revenue in the Company’s consolidated statements of operations.

Total lease installment costs as of December 31, 2023 and 2022, were $2.1 million and $1.4 million, respectively, and were included in other long-term assets in the Company’s consolidated balance sheets.

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.

As of December 31, 2023, the Company had $10.7 million of non-cancelable inventory purchase obligations with a certain vendor due in 2024.

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, 2023 and 2022, the Company had accrued $3.3 million and $0.5 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. On April 27, 2023, Lutronic filed a complaint for trade libel, intentional interference with prospective economic advantage, misappropriation of trade secrets and unfair business practices against Cutera in California State Court. Discovery has not yet commenced and no trial date has been scheduled. The Company denies the allegations of the complaint and has instructed counsel to defend the matter vigorously. Discovery is ongoing and 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 (“ilooda”). The manufacturer of these products, ilooda, is obligated to defend the Company against these claims and, as a result, the Company has not incurred significant external legal costs. Serendia and ilooda have agreed to a settlement of the ITC investigation, the Delaware litigation and any other past, present and future suits or claims related to the six Serendia patents and the Secret RF and Secret Pro systems. The settlement of these matters includes a non-exclusive, worldwide, fully paid up license from Serendia to ilooda to the six Serendia patents related to the Secret RF and Secret Pro systems, which are distributed by the Company. The ITC investigation as to ilooda and the Company was terminated as of April 10, 2024 and the Delaware litigation was dismissed as of April 3, 2024.

On April 11, 2023, J. Daniel Plants, the Company’s former Executive Chairperson, and David Mowry, the Company’s former Chief Executive Officer, filed a complaint in the Delaware Court of Chancery against directors Gregory Barrett, Sheila Hopkins, Timothy O’Shea, Juliane Park and Janet Widmann, as defendants, and the Company, as nominal defendant (the “Delaware Litigation”) seeking a declaration that the individual defendants breached their fiduciary duties and enjoining them from enforcing the nomination deadline under the Company’s Amended and Restated Bylaws in connection with the 2023 annual meeting of stockholders, or in the alternative, a declaration that the Company must hold a special meeting of the stockholders on June 2, 2023. Mr. Plants and Mr. Mowry filed a motion for expedited proceedings with their complaint. Mr. Plants and Mr. Mowry subsequently agreed that the determination made by the Special Committee of the Board to hold a special meeting of the stockholders on June 9, 2023 mooted their request in the Delaware Litigation for a declaration that the Company hold a special meeting of the stockholders. On April 18, 2023, the Court of Chancery denied Mr. Plants and Mr. Mowry’s motion for expedited proceedings.

On May 16, 2023, Mr. Mowry filed a letter with the Court of Chancery disclosing that he had resolved his dispute with the defendants and agreed to dismiss his claims with prejudice. On May 17, 2023, the Court of Chancery granted an order for voluntary dismissal of Mr. Mowry as a plaintiff in the Delaware Litigation. Mr. Plants subsequently publicly voiced opposition to certain aspects of the Company's corporate governance and strategy but did not submit a notice of nomination of director candidates for the Company’s 2023 annual meeting of stockholders and did not purport to nominate any director candidates at the Company’s annual meeting of stockholders held on July 13, 2023. Due to Plaintiff’s failure to amend his Complaint within the time required by the Court’s order dated October 6, 2023, the Delaware Litigation was dismissed with prejudice.

On October 5, 2023, Mr. Plants filed a Sarbanes-Oxley (“SOX”) discrimination claim (the “SOX Whistleblower Complaint”) with the U.S. Department of Labor Occupational Safety and Health Administration (“OSHA”). Mr. Plants alleges that he was terminated on April 11, 2023, in retaliation for reporting to the Board of Directors (the “Board”) his concerns that budgeting and guiding to higher forecasts for 2023 would be misleading to shareholders. The SOX Whistleblower Complaint referenced the April 3, 2023 letter from Mr. Plants to the Company’s Board that articulated Mr. Plants’ concerns. The Company received notice of the SOX Whistleblower Complaint on November 8, 2023. On December 7, 2023, Mr. Plants made an arbitration demand in JAMS against the Company, Mr. Barrett, Ms. Hopkins, Mr. O’Shea, Ms. Park and Ms. Widmann for claims related to the termination of his employment (the “Arbitration Demand”). Mr. Plants alleged several claims: breach of his change of control and severance agreement; wrongful termination; retaliation in violation of California’s whistleblower laws; retaliation in violation of SOX; defamation/libel; tortious interference with prospective economic advantage; and breach of oral contract. He sought compensatory, special, and punitive damages, as well as reinstatement, civil penalties, and attorneys’ fees and costs. Mr. Plants and the Company have settled all claims against the Company and the parties listed in the Arbitration Demand. The Company paid Mr. Plants approximately $1 million in settlement of all claims. The OSHA investigation was officially closed on April 26, 2024, and the JAMS arbitration was dismissed as of April 19, 2024.

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

LEASES

Lessee

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


		Year Ended December 31,
		2023		2022
Assets	Classification
Right-of-use assets	Operating lease right-of-use assets	$	10,055	$	12,831
Finance lease	Property and equipment, net	2,516		1,606
Total leased assets		$	12,571	$	14,437


		Year Ended December 31,
		2023		2022
Liabilities	Classification

Operating lease liabilities, current	Operating lease liabilities	$	2,441	$	2,810
Operating lease liabilities, non-current	Operating lease liabilities, net of current portion	8,887		11,352
Total Operating lease liabilities		$	11,328	$	14,162


		Year Ended December 31,
	Classification	2023		2022
Finance lease liabilities
Finance lease liabilities, current	Accrued liabilities	$	825	$	485
Finance lease liabilities, non-current	Other long-term liabilities	1,064		825
Total Finance lease liabilities		$	1,889	$	1,310

Lease costs during the twelve months ended December 31, 2023, 2022 and 2021 (in thousands):


		Year Ended December 31,
		2023		2022		2021
Finance lease cost	Amortization expense	$	790	$	643	$	484
Finance lease cost	Interest for finance lease	$	116	$	76	$	59
Operating lease cost	Operating lease expense	$	3,598	$	3,560	$	3,542

Cash paid for amounts included in the measurement of lease liabilities during the twelve months ended December 31, 2023, 2022 and 2021 were as follows (in thousands):


		Year Ended December 31,
		2023		2022		2021
Operating cash flows	Finance lease	$	87	$	78	$	56
Financing cash flows	Finance lease	$	594	$	520	$	462
Operating cash flows	Operating lease	$	3,297	$	2,526	$	3,092

Maturities of lease liabilities

Maturities of operating lease liabilities were as follows as of December 31, 2023 (in thousands):


	Amount
2024	$	2,932
2025	2,935
2026	3,030
2027	3,133
2028	325
Thereafter	147
Total lease payments	12,502
Less: imputed interest	(1,174)
Present value of lease liabilities	$	11,328

Vehicle Leases

As of December 31, 2023, the Company was committed to minimum lease payments for vehicles leased under long-term non-cancelable finance leases as follows (in thousands):


	Amount
2024	$	954
2025	704
2026	424
2027	16
Total lease payments	2,098
Less: imputed interest	(209)
Present value of lease liabilities	$	1,889

Weighted-average remaining lease term and discount rate, as of December 31, 2023, were as follows:


Lease Term and Discount Rate
Weighted-average remaining lease term (years)
Operating leases	4.2
Finance leases	2.4
Weighted-average discount rate
Operating leases	4.8	%
Finance leases	9.0	%

Lessor - AviClear

Lessor revenue

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, 2023		Year Ended December 31, 2022
AviClear operating lease license fee revenue	$	5,386	$	922
AviClear operating lease treatment revenue	10,451		3,534

Total AviClear revenue	$	15,837	$	4,456

The AviClear device being leased has a useful life of seven years.

The following is the minimum future lease payments as of December 31, 2023, under non-cancelable operating leases, assuming the minimum contractual lease term (in thousands):


	Amount
2024	$	7,220
2025	3,185
Total	$	10,405

Practical Expedients

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 as of December 31, 2023 and 2022, were $2.7 million and $3.3 million, respectively, and were included in other long-term assets in the Company’s consolidated balance sheets.

Lease installment costs

The Company capitalizes fulfillment costs incurred before AviClear lease commencement and these costs include freight, installation, and training costs.

Purchase Commitments

As of December 31, 2023, the Company had $10.7 million of non-cancelable inventory purchase obligations with a certain vendor due in 2024.

Indemnifications

Contingencies

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

12 Months Ended

Dec. 31, 2023

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) as of December 31, 2022:


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

Schedule of Restricted Cash and Cash Equivalents

The following table summarizes the Company's cash and cash equivalents and marketable investments (in thousands) as of December 31, 2022:


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

Income Taxes - Reconciliation of Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%
State tax rate	(0.02%)	(0.16%)	(2.55%)
Meals and entertainment	(0.25%)	(0.47%)	9.28%
Permanent differences	0.24%	(0.07%)	1.11%
Stock-based compensation	(0.43%)	0.89%	(13.08%)
Extinguishment of PPP loan	(0.07%)	0.00%	(44.59%)
Debt extinguishment costs	0.00%	(8.48%)	0.00%
Excess compensation	(0.19%)	(1.34%)	7.88%
Foreign rate differential	(0.31%)	(0.76%)	17.03%
General business credit	0.71%	0.78%	(17.95%)
Valuation allowance	(21.52%)	(11.41%)	72.82%
Change in prior year reserves	0.00%	0.00%	(0.08%)
Deferred true-up	(0.33%)	(2.02%)	(11.76%)
Effective tax rate	(1.17%)	(2.04%)	39.11%

Commitments and Contingencies - Operating Lease Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
AviClear Revenue
Disaggregation of Revenue [Line Items]
Operating lease income	$ 15,837	$ 4,456
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	$ 5,386	$ 922
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Total net revenue	Total net revenue
AviClear operating lease treatment revenue
Disaggregation of Revenue [Line Items]
Operating lease income	$ 10,451	$ 3,534
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Total net revenue	Total net revenue

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Defined Contribution Plan	12 Months Ended
Defined Contribution Plan	Dec. 31, 2023
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 the years ended December 31, 2023, 2022 and 2021, the Company made discretionary contributions under the 401(k) Plan of $0.5 million, $0.5 million and $0.3 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, 2023, 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/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (q)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (l)
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//715/tableOfContent

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Section 50
-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Subparagraph (r)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 60
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480266/715-60-50-3

+ Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income (loss)	$ (57,233)	$ (28,048)	$ (7,788)	$ (15,142)	$ (162,833)	$ (82,340)	$ 2,062	$ (23,900)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock-based compensation					8,064	14,400	13,172
Depreciation and amortization					8,575	2,621	1,344
Amortization of contract acquisition costs					8,847	3,200	1,857
Amortization of debt issuance costs					2,236	1,355	710
Unrealized loss on foreign exchange forward					0	558	0
Impairment of capitalized cloud computing costs					0	0	182
Change in deferred tax assets					11	188	(135)
Provision for credit losses					7,381	1,787	87
Accretion of discount on investment securities and investment income, net					1,048	0	0
Loss on disposal of property and equipment					0	168	0
Changes in assets and liabilities:
Accounts receivable					(4,940)	(15,900)	(9,574)
Inventories					15,574	(36,305)	(10,936)
Other current assets and prepaid expenses					4,137	(10,049)	(5,765)
Other long-term assets					(6,243)	(8,091)	(7,128)
Accounts payable					(14,866)	20,979	1,207
Accrued liabilities					(3,221)	3,282	21,608
Operating leases, net					(58)	56	141
Deferred revenue					(1,582)	2,673	(412)
Net cash provided by (used in) operating activities					(137,870)	(66,995)	1,235
Cash flows from investing activities:
Acquisition of property and equipment					(33,010)	(22,698)	(1,015)
Disposal of property and equipment					0	0	71
Proceeds from maturities of marketable investments					193,903	158,000	0
Purchase of marketable investments					(23,467)	(329,484)	0
Net cash provided by (used in) investing activities					137,426	(194,182)	(944)
Cash flows from financing activities:
Proceeds from exercise of stock options and employee stock purchase plan					1,323	2,723	2,765
Purchase of capped call					0	(56,680)	(16,134)
Payment of issuance costs of capped call					0	(352)	0
Proceeds from issuance of convertible notes					0	360,000	138,250
Payment of issuance costs of convertible notes					0	(11,202)	(4,717)
Extinguishment of convertible notes					0	(45,776)	0
Taxes paid related to net share settlement of equity awards					(3,297)	(5,256)	(2,176)
Payments on finance lease obligation					(594)	(520)	(462)
Net cash provided by (used in) financing activities					(2,568)	242,937	117,526
Net increase (decrease) in cash, cash equivalents, and restricted cash					(3,012)	(18,240)	117,817
Cash, cash equivalents, and restricted cash at beginning of year		$ 146,624		$ 164,864	146,624	164,864	47,047
Cash, cash equivalents, and restricted cash at end of year	$ 143,612		$ 146,624		143,612	146,624	164,864	$ 47,047
Supplemental disclosure of cash flow information:
Cash paid for interest					11,696	5,486	1,663
Cash paid for income taxes, net of refunds					1,418	2,004	891
Supplemental non-cash investing and financing activities:
Issuance of common stock in repayment of convertible notes					0	55,947	0
Assets acquired under finance lease					1,853	689	828
Assets acquired under operating lease					57	908	123
Extinguishment of PPP loan					0	0	7,185
Debt issuance cost accrued					0	635	0
Capped call costs accrued					0	100	0
Transfer of inventory to property and equipment					0	12,180	0
Transfer of property and equipment to inventory					27,757	0	0
Acquisition of property, equipment and software					5,090	4,131	0
PPP loan
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Loss on debt extinguishment					0	0	(7,185)
Convertible Debt
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Loss on debt extinguishment					$ 0	$ 34,423	$ 0

Commitments and Contingencies - Non-cancellable Operating Lease Income (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2024	$ 7,220
2025	3,185
Total lease payments	$ 10,405

Debt - Narrative (Details)		1 Months Ended			12 Months Ended
Debt - Narrative (Details)	Jul. 09, 2020 USD ($)	Dec. 31, 2022 USD ($) day $ / shares $ / item	May 31, 2022 USD ($) day $ / shares $ / item shares	Mar. 31, 2021 USD ($) day $ / shares $ / item	Dec. 31, 2023 USD ($) $ / shares	Dec. 31, 2022 USD ($) day $ / shares $ / item	Dec. 31, 2021 USD ($) $ / shares	Dec. 07, 2022 $ / shares	Jun. 01, 2022 USD ($)	May 24, 2022 $ / shares	Mar. 04, 2021 $ / shares	Dec. 31, 2020 $ / shares
Debt Instrument [Line Items]
Share price (in dollars per share) \| $ / shares		$ 44.22			$ 3.53	$ 44.22	$ 41.32					$ 24.11
Purchase of capped call					$ 0	$ 56,680,000	$ 16,134,000
Common Stock
Debt Instrument [Line Items]
Share price (in dollars per share) \| $ / shares										$ 41.31
Convertible Debt
Debt Instrument [Line Items]
Carrying value		$ 416,459,000			$ 418,695,000	416,459,000
Number of days to file annual report					15 days
Number of days, written notice					60 days
Percentage of note holders					0.25
Number of days with additional interest, after default					360 days
Unamortized debt issuance costs		11,800,000				11,800,000
Interest expense					$ 14,000,000	7,000,000	$ 3,200,000
Notes due in 2026
Debt Instrument [Line Items]
Convertible debt, conversion ratio				0.0301427
Share price (in dollars per share) \| $ / shares											$ 26.02
Cap price (in dollars 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
Notes due in 2026 \| Common Stock
Debt Instrument [Line Items]
Conversion price (in dollars per share) \| $ / shares				$ 33.18
Notes due in 2026 \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, aggregate principal amount				$ 138,300,000
Debt instrument, interest rate (as a percent)				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
Carrying value		67,572,000			68,041,000	$ 67,572,000			$ 69,100,000
Incremental repurchase amount					$ 1,000
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
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%
Notes due in 2026 \| Convertible Debt \| Level 2
Debt Instrument [Line Items]
Convertible debt at fair value					$ 29,900,000
Notes due in 2026 \| Convertible Debt \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Incremental repurchase amount		1,000				$ 1,000
Redemption price (as a percent)						100.00%
Convertible Senior Notes Due 2026, First Conversion Trigger \| Convertible Debt
Debt Instrument [Line Items]
Conversion threshold trading days \| day				20		20
Threshold consecutive trading days \| day				30		30
Conversion threshold percentage of stock price trigger				130.00%		130.00%
Convertible Senior Notes Due 2026, Second Conversion Trigger \| Convertible Debt
Debt Instrument [Line Items]
Incremental repurchase amount					1,000
Conversion threshold trading days \| day				5		5
Threshold consecutive trading days \| day				5		5
Conversion threshold percentage of stock price trigger				98.00%		98.00%
Notes due in 2028
Debt Instrument [Line Items]
Convertible debt, conversion ratio			0.018986
Share price (in dollars per share) \| $ / shares										$ 41.31
Cap price (in dollars 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
Notes due in 2028 \| Common Stock
Debt Instrument [Line Items]
Conversion price (in dollars per share) \| $ / shares			$ 52.67
Notes due in 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
Carrying value		$ 233,092,000			234,286,000	$ 233,092,000
Incremental repurchase amount					$ 1,000
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			$ 100,000,000
Effective interest rate during period					2.82%
Notes due in 2028 \| Convertible Debt \| Level 2
Debt Instrument [Line Items]
Convertible debt at fair value					$ 60,700,000
Notes due in 2028 \| Convertible Debt \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Incremental repurchase amount			$ 1,000
Redemption price (as a percent)			100.00%
Notes due in 2028 \| Convertible Debt \| Voce Capital Management LLC
Debt Instrument [Line Items]
Debt instrument, aggregate principal amount			$ 230,000,000
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]
Incremental repurchase amount					1,000
Conversion threshold trading days \| day			5
Threshold consecutive trading days \| day			5
Conversion threshold percentage of stock price trigger			98.00%
Notes due in 2029
Debt Instrument [Line Items]
Convertible debt, conversion ratio		0.0171378
Share price (in dollars per share) \| $ / shares								$ 49.66
Cap price (in dollars per share) \| $ / item		99.32				99.32
Premium over stock price (percent)		100.00%				100.00%
Capped-call transaction term, consecutive trading days \| day		40
Purchase of capped call		$ 25,100,000
Notes due in 2029 \| Common Stock
Debt Instrument [Line Items]
Conversion price (in dollars per share) \| $ / shares		$ 58.35				$ 58.35
Notes due in 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
Carrying value		115,795,000			$ 116,368,000	$ 115,795,000
Incremental repurchase amount		1,000				1,000
Required outstanding amount not subject to redemption		100,000,000				100,000,000
Effective interest rate during period					4.63%
Notes due in 2029 \| Convertible Debt \| Level 2
Debt Instrument [Line Items]
Convertible debt at fair value					$ 27,400,000
Notes due in 2029 \| Convertible Debt \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Incremental repurchase amount		$ 1,000				$ 1,000
Convertible Senior Notes, Additional Interest, Up To 180 Days \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, interest rate (as a percent)					0.25%
Convertible Senior Notes, Additional Interest, 181 Days - 360 Days \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, interest rate (as a percent)					0.50%
Loan and Security Agreement \| Silicon Valley Bank \| Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument term (in years)	4 years
Maximum borrowing capacity	$ 30,000,000

Deferred Revenue

12 Months Ended

Dec. 31, 2023

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 certain AviClear devices 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 not yet delivered. Approximately 87% of the Company’s deferred revenue balance of $11.9 million as of December 31, 2023, will be recognized over the next 12 months.

The following table provides changes in the deferred revenue balance for the years ended December 31, 2023 and 2022 (in thousands):


	December 31,
	2023		2022
Beginning balance	$	13,498	$	10,825
Add: Payments received from current period sales	21,040		21,984
Less: Revenue recognized from current period sales	(11,732)		(9,928)
Less: Revenue recognized from beginning balance	(10,890)		(9,383)
Ending balance	$	11,916	$	13,498

The fixed annual license fees received related to the AviClear contracts are deferred and recognized over the annual lease period. The AviClear deferred license fee balance included in the total deferred revenue balance as of December 31, 2023 and 2022, was $2.1 million and $2.3 million, respectively.

Costs for extended service contracts were $7.3 million, $6.3 million and $8.3 million, respectively, in cost of revenue on the consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021.

Accounts receivable, net as of December 31, 2021 was $31.4 million.

Debt

12 Months Ended

Dec. 31, 2023

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,
	2023		2022
Notes due in 2026

Outstanding principal amount	$	69,125	$	69,125
Unamortized debt issuance costs	(1,084)		(1,553)
Carrying Value	$	68,041	$	67,572

Notes due in 2028
Outstanding principal amount	$	240,000	$	240,000
Unamortized debt issuance costs	(5,714)		(6,908)
Carrying Value	$	234,286	$	233,092

Notes due in 2029
Outstanding principal amount	$	120,000	$	120,000
Unamortized debt issuance costs	(3,632)		(4,205)
Carrying Value	$	116,368	$	115,795

Convertible notes, net	$	418,695	$	416,459

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 sheets. 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 former 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 sheets. 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 bullets of the paragraph above were not met during any fiscal quarter during 2023. As of December 31, 2023, the 2026 Notes are convertible. 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, 2024, the Company intends to settle such conversion requests in shares of common stock. Therefore, as of December 31, 2023, the 2026 Notes have been included as Long-term debt on the consolidated balance sheets.

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 estimated fair value of the 2026 Notes was approximately $29.9 million as of December 31, 2023, 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 bullets of the paragraph above were not met during any fiscal quarter during 2023. As of December 31, 2023, the 2028 Notes are not convertible. 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, 2024, the Company intends to settle such conversion requests in shares of common stock. Therefore, as of December 31, 2023, the 2028 Notes have been included as long-term debt on the consolidated balance sheets.

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 estimated fair value of the 2028 Notes was approximately $60.7 million as of December 31, 2023, 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 any fiscal quarter during 2023. As of December 31, 2023, the 2029 Notes are not convertible. The 2029 Notes may become convertible in future periods. 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, 2024, the Company intends to settle such conversion requests in shares of common stock. Therefore, as of December 31, 2023, the 2029 Notes have been included as Long-term debt on the consolidated balance sheets.

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 estimated fair value of the 2029 Notes was approximately $27.4 million as of December 31, 2023, which the Company determined through consideration of market prices. The fair value measurement is classified as Level 2, as defined in Note 3.

Certain Covenants for the Convertible Notes

Pursuant to the terms of the indentures that govern the Convertible Notes, the Company is required to file with U.S. Bank Trust Company, National Association (the “Trustee”), as trustee under each of the indentures governing the Convertible Notes, within 15 days after the same are required to be filed with the SEC (giving effect to any grace period provided by Rule 12b-25 under the Exchange Act), copies of any annual report on Form 10-K or quarterly reports on Form 10-Q that the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. To the extent the Company elects, the sole remedy for an event of default under the indenture governing a series of Convertible Notes relating to its failure to comply with this obligation (which shall occur upon failure by the Company for 60 days after receipt of written notice from the Trustee or the holders of 25% in aggregate principal amount the Convertible Notes of such series to comply with this obligation) shall, for the first 360 days after the occurrence of such an event of default, consist exclusively of the right for the holders of Convertible Notes of such series to receive additional interest on their Convertible Notes at a rate equal to (i) 0.25% per year for each day during the first 180 days after the occurrence and during the continuance of such event of default and (ii) 0.50% per year for each day from, and including, the 181st day to, but excluding, the 360th day after the occurrence and during the continuance of such event of default. On the 361st day after such event of default, if not previously cured or waived, the Convertible Notes of the applicable series shall be subject to acceleration pursuant to the terms of the indenture governing the Convertible Notes of such series. In the event the Company does not elect to pay additional interest on a series of Convertible Notes prior to the occurrence of an event of default relating to the Company’s failure to comply with this obligation, or the Company elects to make such payment but does not pay the additional interest on such Convertible Notes when due, the Convertible Notes of such series shall be immediately subject to acceleration at the election of either the Trustee or the holders of at least 25% in aggregate principal amount of the Convertible Notes of such series.

Additionally, if at any time during the six-month period beginning on, and including, the date that is six months after the last date of original issuance of a series of Convertible Notes, the Company fails to timely file any document or report that it is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act, as applicable (after giving effect to all applicable grace period thereunder and other than reports on Form 8-K), or the Convertible Notes of such series are not otherwise freely tradable pursuant to Rule 144 as promulgated under the Securities Act of 1933, as amended, the Company

shall pay additional interest on such Convertible Notes at a rate of 0.50% per year for each day during such period for which the Company’s failure to file has occurred and is continuing or such Convertible Notes are not otherwise freely tradable pursuant to Rule 144. Additional interest pursuant to the foregoing accrued on the outstanding principal amount of the 2029 Notes from November 24, 2023 to the one-year anniversary of the last date of original issuance of the 2029 Notes on December 12, 2023 was not material.

The Convertible Notes contain additional customary operating covenants, which include restrictions on the Company’s ability to undergo a merger or consolidation transaction, or transfer or lease substantially all of the consolidated properties and assets of the Company. The Convertible Notes do not contain any financial covenants or restrictions on the payment of dividends, the issuance of other indebtedness or the issuance or repurchase of securities by the Company.

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 Costs

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.

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, 2023, including the amortization of debt issuance cost, totaled approximately $14.0 million. Interest expense for the years ended December 31, 2022 and December 31, 2021, including the amortization of debt issuance cost, totaled approximately $7.0 million and $3.2 million, respectively.

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, originally set to mature on July 9, 2024, was terminated by the Company on April 3, 2024.

As of December 31, 2023, the Company had not drawn on the SVB Revolving Line of Credit.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
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-Paragraph 1B
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
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-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
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-Paragraph 1B
-Subparagraph (i)
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Balance Sheet Detail - Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Bonus and payroll-related accruals	$ 13,949	$ 18,951
Accrued sales tax	6,325	9,066
Liability for inventory in transit	5,461	7,028
Sales and marketing accruals	4,929	5,347
Product warranty	2,593	3,254
Jabil settlement obligation, net (Note 16)	8,908	0
Other accrued liabilities	12,890	13,806
Accrued liabilities	$ 55,055	$ 57,452

Income Taxes - Income (Loss) Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
U.S.	$ (165,784)	$ (84,189)	$ (356)
Foreign	4,485	3,487	3,741
Income (loss) before income taxes	$ (161,299)	$ (80,702)	$ 3,385

- 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
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 942
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

Commitments and Contingencies - Narrative (Details) $ in Millions	1 Months Ended	12 Months Ended
	Mar. 31, 2023 patent	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Lessee, Lease, Description [Line Items]
Lease term (in years)		3 years
Duration of autorenewal features		1 year
Purchase obligation		$ 10.7
Estimated product liability		3.3	$ 0.5
Number of patents allegedly infringed \| patent	6
Company vs. Mr. J. Daniel Plants \| Settled Litigation
Lessee, Lease, Description [Line Items]
Settlement agreement, amount awarded to other party		1.0
Other long-term assets
Lessee, Lease, Description [Line Items]
Total capitalized costs		2.4	3.8
Sales and marketing
Lessee, Lease, Description [Line Items]
Amortization of capitalized contract costs		$ 2.4	2.4	$ 1.9
AviClear Device
Lessee, Lease, Description [Line Items]
Cloud computing arrangement expected contract renewals (in years)		7 years
Capitalized Cloud Computing Set-up Cost
Lessee, Lease, Description [Line Items]
Amortization of capitalized contract costs		$ 3.8
Capitalized Cloud Computing Set-up Cost \| Other long-term assets
Lessee, Lease, Description [Line Items]
Total capitalized costs		2.7	3.3
Capitalized Cloud Computing Set-up Cost \| Sales and marketing
Lessee, Lease, Description [Line Items]
Amortization of capitalized contract costs		4.3	0.5
Lease installment cost
Lessee, Lease, Description [Line Items]
Total capitalized costs		2.8	1.7
Lease installment cost \| Other long-term assets
Lessee, Lease, Description [Line Items]
Total capitalized costs		2.1	1.4
Lease installment cost \| Sales and marketing
Lessee, Lease, Description [Line Items]
Amortization of capitalized contract costs		$ 2.1	$ 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		7 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

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2023

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.

As of December 31, 2023, 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, 2023	Level 1		Level 2
Cash equivalents:
Money market funds	$	123,387	$	—
Total	$	123,387	$	—

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)

The Company's cash, accounts receivable, and accounts payable are reflected on the accompanying consolidated balance sheets at cost, which approximated estimated fair value due to short-term nature of such accounts, using Level 1 inputs. The Company classifies its money market funds and available-for-sale securities within Level 1 because they are valued based on quoted market prices in active markets.

The Company classifies its derivative financial instruments within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. None of the Company's financial instruments were classified as Level 3 as of December 31, 2023 and 2022.

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

Summary of Significant Accounting Policies - Narrative (Details)	1 Months Ended	3 Months Ended								12 Months Ended
	Mar. 31, 2023 patent	Dec. 31, 2023 USD ($) country	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2023 USD ($) country segment	Dec. 31, 2022 USD ($)	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
Net income (loss)		$ (57,233,000)	$ (44,274,000)	$ (33,278,000)	$ (28,048,000)	$ (7,788,000)	$ (12,134,000)	$ (47,276,000)	$ (15,142,000)	$ (162,833,000)	$ (82,340,000)	$ 2,062,000	$ (23,900,000)
Training on use of system term (in days)										90 days
Total net revenue		49,540,000	$ 46,478,000	$ 61,825,000	$ 54,526,000	67,353,000	$ 62,808,000	$ 64,224,000	$ 58,014,000	$ 212,369,000	252,399,000	231,270,000
Number of patents allegedly infringed \| patent	6
Estimated economic life of demonstration units (in years)										2 years
Demonstration inventories included in finished goods		5,800,000				5,700,000				$ 5,800,000	5,700,000
Depreciation expense										8,100,000	2,200,000	1,300,000
Capitalized computing amortization expense										400,000	400,000	0
Goodwill impairment										$ 0
Warranty term, direct sales										12 months
Warranty term, distributor sales (in months)										14 months
Advertising expense										$ 4,500,000	4,900,000	2,100,000
Foreign currency transaction gains (losses)										$ 300,000	(3,600,000)	(1,800,000)
Number of operating segments \| segment										1
Number of reporting units \| segment										1
Deferred Sales Commissions
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Total capitalized costs		1,000,000.0				2,000,000.0				$ 1,000,000.0	2,000,000.0
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	400,000
Other long-term assets
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Total capitalized costs		2,400,000				3,800,000				2,400,000	3,800,000
Capitalized computing set-up costs		$ 3,100,000				3,500,000				$ 3,100,000	3,500,000
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
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Amortization of capitalized contract costs										$ 3,800,000
Capitalized Cloud Computing Set-up Cost \| Other long-term assets
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Total capitalized costs		$ 2,700,000				$ 3,300,000				$ 2,700,000	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								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								10 years
United States
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Total net revenue										$ 88,378,000	$ 107,453,000	$ 96,629,000
Customer Concentration Risk \| Revenue Benchmark \| ZO Skin Health
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Concentration risk (as a percent)										16.00%	17.00%	21.00%
Customer Concentration Risk \| Revenue Benchmark \| Ilooda Co. Ltd.
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Concentration risk (as a percent)										4.00%	6.00%	5.00%
Customer Concentration Risk \| Revenue Benchmark \| United States
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Concentration risk (as a percent)										42.00%	43.00%	42.00%
Customer Concentration Risk \| Revenue Benchmark \| Non-US
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Concentration risk (as a percent)										58.00%	57.00%	58.00%
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)										7.00%	10.00%	14.00%
Sales and marketing
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Amortization of capitalized contract costs										$ 2,400,000	$ 2,400,000	$ 1,900,000
Sales and marketing \| Capitalized Cloud Computing Set-up Cost
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Amortization of capitalized contract costs										$ 4,300,000	500,000
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
Total net revenue										$ 22,556,000	23,603,000	25,567,000
Skincare
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Total net revenue										33,983,000	42,500,000	49,669,000
Secret Products
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Total net revenue										$ 9,200,000	$ 14,800,000	$ 12,300,000
Transferred over Time
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Percent of total revenues										11.00%	8.00%	11.00%

Product Warranty - Summary of Warranties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of year	$ 3,254	$ 3,947
Add: Accruals for warranties issued during the period	4,987	3,710
Less: Settlements made during the period	(5,648)	(4,403)
Balance at end of year	$ 2,593	$ 3,254

Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current:
Federal	$ 0	$ 52	$ 0
State	46	126	(87)
Foreign	1,471	1,275	1,512
Total Current	1,517	1,453	1,425
Deferred:
Federal	6	2	2
State	1	1	1
Foreign	10	182	(105)
Total Deferred	17	185	(102)
Tax provision	$ 1,534	$ 1,638	$ 1,323

Commitments and Contingencies - Lease Information (Details)	Dec. 31, 2023
Leases [Abstract]
Operating leases	4 years 2 months 12 days
Finance leases	2 years 4 months 24 days
Operating leases	4.80%
Finance leases	9.00%

Net Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Net Income (Loss)


	Year Ended December 31,
	2023		2022		2021
Numerator:
Net income (loss)	$	(162,833)	$	(82,340)	$	2,062
Denominator:
Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic	19,885		18,747		17,891
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	19,885		18,747		18,362
Net income (loss) per share:
Net income (loss) per share, basic	$	(8.19)	$	(4.39)	$	0.12
Net income (loss) per share, diluted	$	(8.19)	$	(4.39)	$	0.11

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share


	Year Ended December 31,
	2023	2022	2021
Capped call	10,780	10,780	4,167
Convertible debt	8,697	8,697	4,167
Options to purchase common stock	1,282	514	166
Restricted stock units	682	460	32
Employee stock purchase plan shares	—	38	—
Performance stock units	227	446	120
Total	21,668	20,935	8,652

Cash, Cash Equivalents, Marketable Securities, and Restricted Cash - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2023
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 145,924	$ 143,612
Marketable investments	171,390	$ 0
Net unrealized loss	100
Outstanding letter of credit	$ 700

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

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 (Years)
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,
	2023		2022
Leasehold improvements	$	1,010	$	793

AviClear devices	38,490		19,904
Office equipment and furniture	1,884		1,936
Machinery and equipment	4,944		5,106
Assets under construction	1,274		17,876
	47,602		45,615
Less: Accumulated depreciation	(10,327)		(5,247)
Property and equipment, net	$	37,275	$	40,368

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, 2023	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets valuation allowance
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Year	$ 53,118	$ 40,485	$ 38,321
Additions	48,666	18,153	7,503
Deductions	4,504	5,520	5,339
Balance at End of Year	97,280	53,118	40,485
Allowance for credit losses, accounts receivable
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Year	2,497	899	1,598
Additions	8,525	1,787	271
Deductions	1,144	189	970
Balance at End of Year	$ 9,878	$ 2,497	$ 899

Quarterly Information (Unaudited)

12 Months Ended

Dec. 31, 2023

Quarterly Financial Information Disclosure [Abstract]

Quarterly Information (Unaudited)

QUARTERLY INFORMATION (UNAUDITED)

As previously reported, there was a restatement of the financial statements included in the Company’s Quarterly Report on Form 10-Q for the fiscal periods ended March 31, 2023 and June 30, 2023. The following table sets forth the Company’s unaudited consolidated quarterly financial data. This information has been prepared on a basis consistent with that of the audited consolidated financial statements. The Company believes that all necessary adjustments, consisting of normal recurring accruals and adjustments, have been included to present fairly the quarterly financial data. The Company's quarterly results of operations for these periods are not necessary indicative of future results of operations.


	Three Months ended,
	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
	(In thousands, except per share data)
Net revenue	$	49,540	$	46,478	$	61,825	$	54,526	$	67,353	$	62,808	$	64,224	$	58,014
Gross profit	$	(12,678)	$	6,457	$	26,083	$	21,632	$	38,749	$	34,248	$	35,044	$	31,788
Net loss	$	(57,233)	$	(44,274)	$	(33,278)	$	(28,048)	$	(7,788)	$	(12,134)	$	(47,276)	$	(15,142)
Net loss per share:
Basic	$	(2.87)	$	(2.22)	$	(1.68)	$	(1.42)	$	(0.40)	$	(0.62)	$	(2.53)	$	(0.84)
Diluted	$	(2.87)	$	(2.22)	$	(1.68)	$	(1.42)	$	(0.40)	$	(0.62)	$	(2.53)	$	(0.84)

Current assets	$	269,185	$	311,307	$	365,944	$	416,045	$	451,240	$	366,312	$	373,313	$	236,784
Long-term assets	$	77,106	$	95,326	$	93,080	$	80,534	$	69,748	$	61,845	$	50,779	$	29,907
Current liabilities	$	87,747	$	92,406	$	102,923	$	108,607	$	105,839	$	98,258	$	85,716	$	74,037
Long-term liabilities	$	430,374	$	430,312	$	429,902	$	430,017	$	430,330	$	314,405	$	314,502	$	149,494

Segment Information and Revenue by Geography and Products

12 Months Ended

Dec. 31, 2023

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 in assessing performance.

In the fourth quarter of fiscal year ending December 31, 2023, the Company concluded a realignment of its operating segments to further drive its long-term strategic objectives. At the direction of the CEO, management reorganized its management reporting structure and began to manage its operations under one segment structure. The CEO, in making operating decisions, reviews consolidated financial information, accompanied by disaggregated information about revenues by geography and product. All of the Company’s principal operations and decision-making functions are located in the U.S. Substantially all of the Company's long-lived assets are located in the U.S.

The Company reassessed its reportable segments in the fourth quarter of fiscal year 2023 and determined it had one consolidated reportable segment beginning in the fourth quarter of fiscal year ending December 31, 2023.

The following table presents a summary of revenue by geography and product category for the years ended December 31, 2023, 2022 and 2021 (in thousands):


	Year Ended December 31,
	2023		2022		2021
Revenue mix by geography:
United States	$	88,378	$	107,453	$	96,629
Japan	52,135		64,920		70,235
Asia, excluding Japan	18,702		21,873		12,649
Europe	20,330		20,882		19,444
Rest of the world, other than United States, Asia and Europe	32,824		37,271		32,313
Total consolidated revenue	$	212,369	$	252,399	$	231,270
Revenue mix by product category:
Systems	$	130,528	$	164,559	$	139,633

Consumables	25,302		21,737		16,401
Skincare	33,983		42,500		49,669
Total product revenue	189,813		228,796		205,703
Service	22,556		23,603		25,567
Total consolidated revenue	$	212,369	$	252,399	$	231,270

As of December 31, 2023 and 2022, 99.6% and 99.8% of long-lived assets were in the United States, respectively.

- 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
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 8,064	$ 14,400	$ 13,172
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	2,227	2,175	782
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	6,100	6,979	5,305
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	(586)	4,430	6,591
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 323	$ 816	$ 494

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Derivative Instruments

12 Months Ended

Dec. 31, 2023

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 flows. 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 flows from operations.

There were no derivative instruments outstanding as of December 31, 2023 and the dollar amounts of outstanding derivative instruments as of December 31, 2022 is presented in thousands below:

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)

Net Income (Loss) Per Share - Antidilutive Securities Excluded From Computation of Earnings Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	21,668	20,935	8,652
Capped call
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	10,780	10,780	4,167
Convertible debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	8,697	8,697	4,167
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,282	514	166
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	682	460	32
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	0	38	0
PSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	227	446	120

Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Net operating loss carryforwards	$ 47,406	$ 21,443
Stock-based compensation	2,014	2,594
Other accruals and reserves	12,552	4,592
Credits	18,614	14,908
Accrued warranty	759	778
Depreciation and amortization	1,241	1,857
Section 174 Costs	13,391	7,578
Other	2,965	1,541
Operating lease liability	2,842	3,384
Deferred tax asset before valuation allowance	101,784	58,675
Valuation allowance	(97,280)	(53,118)
Deferred tax asset after valuation allowance	4,504	5,557
Deferred contract acquisition costs	(1,287)	(1,763)
Goodwill	(159)	(138)
Right of use asset	(2,479)	(3,066)
Net deferred tax asset (liability)	$ 579	$ 590

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	$ 3,725	$ 2,746	$ 1,864
Increase (decrease) related to prior year tax positions	258
Increase (decrease) related to prior year tax positions		(36)	(37)
Increase related to current year tax positions	1,013	1,015	919
Balance at end of year	$ 4,996	$ 3,725	$ 2,746

Quarterly Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2023

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

The following table sets forth the Company’s unaudited consolidated quarterly financial data. This information has been prepared on a basis consistent with that of the audited consolidated financial statements. The Company believes that all necessary adjustments, consisting of normal recurring accruals and adjustments, have been included to present fairly the quarterly financial data. The Company's quarterly results of operations for these periods are not necessary indicative of future results of operations.


	Three Months ended,
	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
	(In thousands, except per share data)
Net revenue	$	49,540	$	46,478	$	61,825	$	54,526	$	67,353	$	62,808	$	64,224	$	58,014
Gross profit	$	(12,678)	$	6,457	$	26,083	$	21,632	$	38,749	$	34,248	$	35,044	$	31,788
Net loss	$	(57,233)	$	(44,274)	$	(33,278)	$	(28,048)	$	(7,788)	$	(12,134)	$	(47,276)	$	(15,142)
Net loss per share:
Basic	$	(2.87)	$	(2.22)	$	(1.68)	$	(1.42)	$	(0.40)	$	(0.62)	$	(2.53)	$	(0.84)
Diluted	$	(2.87)	$	(2.22)	$	(1.68)	$	(1.42)	$	(0.40)	$	(0.62)	$	(2.53)	$	(0.84)

Current assets	$	269,185	$	311,307	$	365,944	$	416,045	$	451,240	$	366,312	$	373,313	$	236,784
Long-term assets	$	77,106	$	95,326	$	93,080	$	80,534	$	69,748	$	61,845	$	50,779	$	29,907
Current liabilities	$	87,747	$	92,406	$	102,923	$	108,607	$	105,839	$	98,258	$	85,716	$	74,037
Long-term liabilities	$	430,374	$	430,312	$	429,902	$	430,017	$	430,330	$	314,405	$	314,502	$	149,494

Balance Sheet Detail (Tables)

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Inventories

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


	December 31,
	2023		2022
Raw materials	$	36,970	$	36,323
Work in process	889		2,117
Finished goods	24,741		25,188
Total	$	62,600	$	63,628

Long-term inventories of these adjustments, consist of the following (in thousands):


	December 31,
	2023		2022
Raw materials	$	8,672	$	—
Work in process	2,049		—
Finished goods	5,562		—
Total	$	16,283	$	—

Schedule of Other current assets and prepaid expenses

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


	December 31,
	2023		2022
Deposits with vendors	$	9,501	$	13,917
Foreign tax receivable	6,307		7,147
Prepayments	3,819		2,972

Other	225		—
Total	$	19,852	$	24,036

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 (Years)
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,
	2023		2022
Leasehold improvements	$	1,010	$	793

AviClear devices	38,490		19,904
Office equipment and furniture	1,884		1,936
Machinery and equipment	4,944		5,106
Assets under construction	1,274		17,876
	47,602		45,615
Less: Accumulated depreciation	(10,327)		(5,247)
Property and equipment, net	$	37,275	$	40,368

Schedule of Accrued Liabilities

Accrued liabilities consist of the following (in thousands):


	December 31,
	2023		2022
Bonus and payroll-related accruals	$	13,949	$	18,951
Accrued sales tax	6,325		9,066
Liability for inventory in transit	5,461		7,028
Sales and marketing accruals	4,929		5,347
Product warranty	2,593		3,254
Jabil settlement obligation, net (Note 16)	8,908		—

Other accrued liabilities	12,890		13,806
Total	$	55,055	$	57,452

Segment Information and Revenue by Geography and Products - Schedule of Revenue by Geography (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Total net revenue	$ 49,540	$ 46,478	$ 61,825	$ 54,526	$ 67,353	$ 62,808	$ 64,224	$ 58,014	$ 212,369	$ 252,399	$ 231,270
Total product revenue
Disaggregation of Revenue [Line Items]
Total net revenue									189,813	228,796	205,703
Systems
Disaggregation of Revenue [Line Items]
Total net revenue									130,528	164,559	139,633
Consumables
Disaggregation of Revenue [Line Items]
Total net revenue									25,302	21,737	16,401
Skincare
Disaggregation of Revenue [Line Items]
Total net revenue									33,983	42,500	49,669
Service
Disaggregation of Revenue [Line Items]
Total net revenue									22,556	23,603	25,567
United States
Disaggregation of Revenue [Line Items]
Total net revenue									88,378	107,453	96,629
Japan
Disaggregation of Revenue [Line Items]
Total net revenue									52,135	64,920	70,235
Asia, excluding Japan
Disaggregation of Revenue [Line Items]
Total net revenue									18,702	21,873	12,649
Europe
Disaggregation of Revenue [Line Items]
Total net revenue									20,330	20,882	19,444
Rest of the world, other than United States, Asia and Europe
Disaggregation of Revenue [Line Items]
Total net revenue									$ 32,824	$ 37,271	$ 32,313

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	$ 452
Purchase of capped call	$ (57,132)

Cash, Cash Equivalents, Marketable Securities, and Restricted Cash

12 Months Ended

Dec. 31, 2023

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents, Marketable Securities, and Restricted Cash

CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES, AND RESTRICTED CASH

The 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 Company's cash and cash equivalents was $143.6 million as of December 31, 2023. There were no marketable investments or restricted cash as of December 31, 2023. The following table summarizes the Company's cash and cash equivalents and marketable investments (in thousands) as of December 31, 2022:


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

At December 31, 2022, the net unrealized losses were $0.1 million, and were related to interest rate changes on available-for-sale marketable investments. No securities were in an unrealized loss position for more than 12 months. The restricted cash balance related to an outstanding letter of credit for $0.7 million provided to a supplier.

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (162,833)	$ (82,340)	$ 2,062
Other comprehensive income (loss):
Net change in unrealized gain (loss) on available-for-sale investments	94	(94)	0
Other comprehensive income (loss), net of tax	94	(94)	0
Comprehensive income (loss)	$ (162,739)	$ (82,434)	$ 2,062

- Definition

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

+ References

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+ Details

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2023

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, 2023, 2022 and 2021


	Balance at Beginning of Year		Additions		Deductions		Balance at End of Year
Deferred tax assets valuation allowance
Year ended December 31, 2023	$	53,118	$	48,666	$	4,504	$	97,280
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


	Balance at Beginning of Year		Additions		Deductions		Balance at End of Year
Allowance for credit losses, accounts receivable
Year ended December 31, 2023	$	2,497	$	8,525	$	1,144	$	9,878
Year ended December 31, 2022	$	899	$	1,787	$	189	$	2,497
Year ended December 31, 2021	$	1,598	$	271	$	970	$	899

Pay vs Performance Disclosure - USD ($)

3 Months Ended

12 Months Ended

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Pay vs Performance Disclosure

Pay vs Performance Disclosure, Table


									Value of Initial Fixed $100 Investment Based On:
Fiscal Year	SCT for PEO		CAP to PEO		Average SCT for NEOs		Average CAP to NEOs		TSR		Peer Group TSR		Net Income (Loss) ($M)		Revenue ($M)
(a)	(b)1		(c)2		(d)3		(e)2		(f)4		(g)4		(h)5		(i)6
2023	$	7,279,813	$	2,111,276	$	663,439	$	(312,230)	$	9.9	$	106.3	$	(162.8)	$	212.4
2022	$	2,597,552	$	2,761,857	$	966,115	$	673,736	$	123.5	$	99.8	$	(82.3)	$	252.4
2021	$	4,065,626	$	6,422,427	$	2,356,048	$	2,997,001	$	115.4	$	125.4	$	2.1	$	231.3
2020	$	1,334,582	$	(350,182)	$	1,062,163	$	853,506	$	67.3	$	130.0	$	(23.9)	$	147.7

Company Selected Measure Name

revenue

Named Executive Officers, Footnote

The dollar amounts reported in column (d) are the average amounts of total compensation reported for the other NEOs for each corresponding year in the “Total” column of the Summary Compensation Table. Refer to our Summary Compensation Table in this section for each of 2023, 2022 2021, and 2020, the Non-PEO NEOs were:

2023

2022

2021

2020

Stuart D. Drummond

Daniel J. Plants

Jasor R. Richey

Jeffrey S. Jones

Rohan R. Seth

Michael A. Karavitis

Faud Ahmad

Stephana E. Patton

Peer Group Issuers, Footnote

TSR is calculated by assuming that a $100 investment was made at the close of trading on December 31, 2019 and reinvesting all dividends until the last day of each Covered Year. The TSR peer group consists of the Nasdaq Health Care Index, as used in our performance graph in our annual report.

PEO Total Compensation Amount

$ 7,279,813

$ 2,597,552

$ 4,065,626

$ 1,334,582

PEO Actually Paid Compensation Amount

$ 2,111,276

2,761,857

6,422,427

(350,182)

Adjustment To PEO Compensation, Footnote

The dollar amounts reported in column (c) and (e) represent the amount of “compensation actually paid”, as computed in accordance with SEC rules. “Compensation actually paid” does not necessarily represent cash and/or equity value transferred to the applicable NEO without restriction, but rather is a value calculated under applicable SEC rules, as shown in the adjustment table below. We do not have a defined benefit plan so no adjustment for pension benefits is included in the table below. Similarly, no adjustment is made for dividends as none were paid during the measurement period.

The following table details the adjustments described in note 2 above:


Fiscal Year	Executives	SCT		Minus Grant Date Fair Value of Equity Awards in Summary Compensation Table		Plus Year End Fair Value of Equity Awards Granted During Year That Are Outstanding and Unvested at Fiscal Year End		Plus Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards		Plus Fair Value as of Vesting Date of Equity Awards Granted and Vested in the Year		Plus Year over Year Change in Fair Value or Equity Awards Granted in Prior Years that Vested in the Year		Total Equity CAP		CAP
		(a)		(b)		(i)		(ii)		(iii)		(iv)		(c)=(i)+(ii)+(iii)+(iv)		(d)=(a)-(b)+(c)
2023	PEO	$	7,279,813	$	6,997,690	$	1,829,153	$	—	$	—	$	—	$	1,829,153	$	2,111,276
	Non-PEO NEOs	$	663,439	$	287,188	$	63,625	$	(614,062)			$	(138,044)	$	(688,481)	$	(312,230)
2022	PEO	$	2,597,552	$	1,530,185	$	1,838,392	$	(1,399,323)	$	—	$	1,255,421	$	1,694,490	$	2,761,857
	Non-PEO NEOs	$	966,115	$	473,804	$	559,128	$	(568,799)	$	—	$	191,096	$	181,425	$	673,736
2021	PEO	$	4,065,626	$	2,593,961	$	2,677,682	$	1,484,535	$	—	$	788,545	$	4,950,762	$	6,422,427
	Non-PEO NEOs	$	2,356,048	$	1,792,962	$	1,746,178	$	406,446	$	—	$	281,291	$	2,433,915	$	2,997,001
2020	PEO	$	1,334,582	$	673,024	$	628,451	$	(1,278,038)	$	—	$	(362,153)	$	(1,011,740)	$	(350,182)
	Non-PEO NEOs	$	1,062,163	$	449,147	$	668,106	$	(250,739)	$	—	$	(176,877)	$	240,490	$	853,506

(a) The dollar amounts reported in the Summary Compensation Table for the applicable Covered Year.

(b) The grant date fair value of equity awards represents the total of the amounts reported in the “Stock Awards” and “Option Awards” columns of the Summary Compensation Table for the applicable Covered Year.

(c) The recalculated value of equity awards for each applicable Covered Year includes the addition (or subtraction, as applicable) of the following:

(i) the year-end fair value of any equity awards granted in the applicable Covered Year that are outstanding and unvested as of the end of the Covered Year;

(ii) the amount of change as of the end of the applicable Covered Year (from the end of the prior fiscal year) in fair value of any equity awards granted in prior fiscal years that are outstanding and unvested as of the end of the applicable Covered Year;

(iii) the fair value as of the vesting date of any equity awards granted in the applicable Covered Year that vested in the Covered Year; and

(iv) for equity awards granted in a prior fiscal year that vest in the applicable Covered Year, the change in the fair value as of the vesting date from the beginning of the applicable Covered Year.

(d) Compensation actually paid” is a value calculated under applicable SEC rules and may be higher or lower than amounts, if any, that are actually realized by our NEOs.

Non-PEO NEO Average Total Compensation Amount

$ 663,439

966,115

2,356,048

1,062,163

Non-PEO NEO Average Compensation Actually Paid Amount

$ (312,230)

673,736

2,997,001

853,506

Adjustment to Non-PEO NEO Compensation Footnote

The following table details the adjustments described in note 2 above:


Fiscal Year	Executives	SCT		Minus Grant Date Fair Value of Equity Awards in Summary Compensation Table		Plus Year End Fair Value of Equity Awards Granted During Year That Are Outstanding and Unvested at Fiscal Year End		Plus Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards		Plus Fair Value as of Vesting Date of Equity Awards Granted and Vested in the Year		Plus Year over Year Change in Fair Value or Equity Awards Granted in Prior Years that Vested in the Year		Total Equity CAP		CAP
		(a)		(b)		(i)		(ii)		(iii)		(iv)		(c)=(i)+(ii)+(iii)+(iv)		(d)=(a)-(b)+(c)
2023	PEO	$	7,279,813	$	6,997,690	$	1,829,153	$	—	$	—	$	—	$	1,829,153	$	2,111,276
	Non-PEO NEOs	$	663,439	$	287,188	$	63,625	$	(614,062)			$	(138,044)	$	(688,481)	$	(312,230)
2022	PEO	$	2,597,552	$	1,530,185	$	1,838,392	$	(1,399,323)	$	—	$	1,255,421	$	1,694,490	$	2,761,857
	Non-PEO NEOs	$	966,115	$	473,804	$	559,128	$	(568,799)	$	—	$	191,096	$	181,425	$	673,736
2021	PEO	$	4,065,626	$	2,593,961	$	2,677,682	$	1,484,535	$	—	$	788,545	$	4,950,762	$	6,422,427
	Non-PEO NEOs	$	2,356,048	$	1,792,962	$	1,746,178	$	406,446	$	—	$	281,291	$	2,433,915	$	2,997,001
2020	PEO	$	1,334,582	$	673,024	$	628,451	$	(1,278,038)	$	—	$	(362,153)	$	(1,011,740)	$	(350,182)
	Non-PEO NEOs	$	1,062,163	$	449,147	$	668,106	$	(250,739)	$	—	$	(176,877)	$	240,490	$	853,506

(a) The dollar amounts reported in the Summary Compensation Table for the applicable Covered Year.

(c) The recalculated value of equity awards for each applicable Covered Year includes the addition (or subtraction, as applicable) of the following:

(i) the year-end fair value of any equity awards granted in the applicable Covered Year that are outstanding and unvested as of the end of the Covered Year;

(iii) the fair value as of the vesting date of any equity awards granted in the applicable Covered Year that vested in the Covered Year; and

(iv) for equity awards granted in a prior fiscal year that vest in the applicable Covered Year, the change in the fair value as of the vesting date from the beginning of the applicable Covered Year.

(d) Compensation actually paid” is a value calculated under applicable SEC rules and may be higher or lower than amounts, if any, that are actually realized by our NEOs.

Compensation Actually Paid vs. Total Shareholder Return

https://cdn.kscope.io/222fe5fd97f0aba36085c5580b2639ab-CAP vs. TSR.jpg

Compensation Actually Paid vs. Net Income

https://cdn.kscope.io/222fe5fd97f0aba36085c5580b2639ab-CAP vs. Net Income.jpg

Compensation Actually Paid vs. Company Selected Measure

https://cdn.kscope.io/222fe5fd97f0aba36085c5580b2639ab-CAP vs. CSM.jpg

Total Shareholder Return Amount

$ 9.9

123.5

115.4

67.3

Peer Group Total Shareholder Return Amount

106.3

99.8

125.4

130.0

Net income (loss)

$ (57,233,000)

$ (44,274,000)

$ (33,278,000)

$ (28,048,000)

$ (7,788,000)

$ (12,134,000)

$ (47,276,000)

$ (15,142,000)

$ (162,833,000)

$ (82,340,000)

$ 2,062,000

$ (23,900,000)

Company Selected Measure Amount

212,400,000

252,400,000

231,300,000

147,700,000

PEO Name

Taylor Harris

Additional 402(v) Disclosure

The dollar amounts reported in column (b) are the amounts of total compensation reported for the Chief Executive Officer and PEO, for each corresponding year in the “Total” column of the Summary Compensation Table.The dollar amounts reported are the Company’s net income or loss reflected in the Company’s audited financial statements.

For purposes of the adjustments to determine “compensation actually paid”, we computed the fair value of stock option awards and restricted stock units in accordance with FASB ASC Topic 718 as of the end of the relevant fiscal year, other than fair values

of equity awards that vested in the Covered Year, which are valued as of the applicable vesting date. Most valuation assumptions and processes used to recalculate fair values for this purpose did not materially differ from those disclosed in Note 8—Stockholders’ Equity, Stock Plans and Stock-Based Compensation Expense in this Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Option award fair values were recalculated as of each Covered Year end and vesting date, as applicable, based on the following assumptions:


Fiscal Year	Expected Term	Volatility		Risk-Free Rate
2023	5.3 - 7.0 years	66.1% - 81.2%		4.00% - 4.25%
2022	2.1 - 3.7 years	67.0	%	3.00	%
2021	0.7 - 3.5 years	67.0	%	0.86	%
2020	1.4 - 2.3 years	67.0	%	0.53	%

Performance-based award fair values were recalculated to value performance awards at target until board approval.

Measure:: 1

Pay vs Performance Disclosure

Non-GAAP Measure Description

Our Company Selected Measure, based on our assessment of the most important financial performance measure used by us in 2023 to link compensation actually paid to performance, is revenue, consistent with the most heavily weighted metric in our Short-Term Incentive Program. The dollar amounts reported are our revenue reflected in our audited financial statements.

PEO | Equity Awards Reported Value [Member]

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

$ 6,997,690

$ 1,530,185

$ 2,593,961

$ 673,024

PEO | Equity Awards Granted During The Year, Unvested [Member]

Pay vs Performance Disclosure

Adjustment To Compensation Amount, Equity Awards

1,829,153

1,838,392

2,677,682

628,451

PEO | Equity Awards Granted In Prior Years, Unvested [Member]

Pay vs Performance Disclosure

Adjustment To Compensation Amount, Equity Awards

(1,399,323)

1,484,535

(1,278,038)

PEO | Equity Awards Granted During The Year, Vested [Member]

Pay vs Performance Disclosure

Adjustment To Compensation Amount, Equity Awards

PEO | Equity Awards Granted In Prior Years, Vested [Member]

Pay vs Performance Disclosure

Adjustment To Compensation Amount, Equity Awards

1,255,421

788,545

(362,153)

PEO | Equity Award Adjustments [Member]

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

1,829,153

1,694,490

4,950,762

(1,011,740)

Non-PEO NEO | Equity Awards Reported Value [Member]

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

287,188

473,804

1,792,962

449,147

Non-PEO NEO | Equity Awards Granted During The Year, Unvested [Member]

Pay vs Performance Disclosure

Adjustment To Compensation Amount, Equity Awards

63,625

559,128

1,746,178

668,106

Non-PEO NEO | Equity Awards Granted In Prior Years, Unvested [Member]

Pay vs Performance Disclosure

Adjustment To Compensation Amount, Equity Awards

(614,062)

(568,799)

406,446

(250,739)

Non-PEO NEO | Equity Awards Granted During The Year, Vested [Member]

Pay vs Performance Disclosure

Adjustment To Compensation Amount, Equity Awards

Non-PEO NEO | Equity Awards Granted In Prior Years, Vested [Member]

Pay vs Performance Disclosure

Adjustment To Compensation Amount, Equity Awards

(138,044)

191,096

281,291

(176,877)

Non-PEO NEO | Equity Award Adjustments [Member]

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

$ (688,481)

$ 181,425

$ 2,433,915

$ 240,490

Debt - Outstanding Debt and Carrying Value (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Jun. 01, 2022
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (10,430)	$ (12,666)
Convertible Debt
Debt Instrument [Line Items]
Carrying Value	418,695	416,459
Notes due in 2026 \| Convertible Debt
Debt Instrument [Line Items]
Outstanding principal amount	69,125	69,125
Unamortized debt issuance costs	(1,084)	(1,553)
Carrying Value	68,041	67,572	$ 69,100
Notes due in 2028 \| Convertible Debt
Debt Instrument [Line Items]
Outstanding principal amount	240,000	240,000
Unamortized debt issuance costs	(5,714)	(6,908)
Carrying Value	234,286	233,092
Notes due in 2029 \| Convertible Debt
Debt Instrument [Line Items]
Outstanding principal amount	120,000	120,000
Unamortized debt issuance costs	(3,632)	(4,205)
Carrying Value	$ 116,368	$ 115,795

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
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-Section 50
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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-Paragraph 1
-Subparagraph (SX 210.4-08(f))
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (SX 210.12-04(a))
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+ Details

- Definition

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

+ References + Details

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

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Payment Arrangement

Activities under 2004 Equity Incentive Plan, 2019 Equity Incentive Plan and 2023 Inducement Equity Incentive Plan are 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, 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
Additional shares reserved(2)	3,800,000
Options granted	—	1,099,075	$	13.10
Options exercised	—	(42,234)	$	14.50
Options cancelled (expired or forfeited)	288,536	(288,536)	$	29.21
Stock awards granted	(2,144,988)	—	—
Stock awards cancelled (expired or forfeited)	540,064	—	—
Balances as of December 31, 2023	3,554,537	1,282,240	$	17.97	8.21	$	—
Exercisable as of December 31, 2023		190,997	$	36.39	3.36	$	—
Vested and expected to vest, net of estimated forfeitures, as of December 31, 2023		1,180,944	$	18.37	8.11	$	—

(1)Based on the closing stock price of $3.53 of the Company’s stock on December 31, 2023, $44.22 on December 31, 2022, $41.32 on December 31, 2021 and $24.11 on December 31, 2020.

(2)Approved by the board of directors and stockholders in 2023, 2022 and 2021.

Schedule of Share-based Payment Arrangement Exercise Price Range

The options outstanding and exercisable at December 31, 2023 were in the following exercise price ranges:


Exercise Prices			Number of Shares Outstanding	Contractual Life (in years)	Number of Shares Exercisable
	$3.67		31,256	6.85	—
	$11.02		735,295	9.63	—
$14.04	——	$18.55	87,001	8.81	3,250
	$19.44		147,455	9.15	—
$25.70	——	$33.45	187,927	3.37	121,909
$36.55	——	$39.30	30,881	1.20	30,881
	$39.88		2,187	5.00	1,393
	$41.39		21,220	8.18	10,168
	$47.40		4,745	0.96	4,745
	$63.62		34,273	7.13	18,651
$3.67	——	$63.62	1,282,240	8.21	190,997

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

Information with respect to RSUs and PSUs activity is as follows:


	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, 2020	779,757	$	23.96				$	18,800
Granted	744,949	$	40.16
Vested(3)	(254,946)	$	22.94	$	8,287	(4)
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	(5)
Forfeited	(160,131)	$	41.48
Outstanding at December 31, 2022	906,211	$	40.39				$	40,073
Granted	829,866	$	14.43
Vested(3)	(298,485)	$	35.61	$	9,597	(6)
Forfeited	(527,730)	$	36.56
Outstanding at December 31, 2023	909,862	$	20.46				$	3,212

(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 $3.53 on December 31, 2023, $44.22 on December 31, 2022, $41.32 on December 31, 2021, and $24.11 on December 31, 2020.

(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 $5.8 million.

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

(6)On the grant date, the fair value for these vested awards was $10.6 million.

Schedule of Share-based Payment Arrangement Cost by Plan

Stock-based compensation expense for the years ended December 31, 2023, 2022 and 2021 was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Stock options	$	2,227	$	2,175	$	782
RSUs	6,100		6,979		5,305
PSUs	(586)		4,430		6,591
ESPP	323		816		494
Total stock-based compensation expense	$	8,064	$	14,400	$	13,172

Schedule of Share-based Compensation Expense

Total stock-based compensation expense recognized during the years ended December 31, 2023, 2022 and 2021 was recorded in the Consolidated Statements of Operations as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Cost of revenue	$	751	$	1,665	$	1,408
Sales and marketing	3,387		4,998		3,160
Research and development	1,082		2,405		2,784
General and administrative	2,844		5,332		5,820
Total stock-based compensation expense	$	8,064	$	14,400	$	13,172

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)
	2023			2022			2021			2023			2022			2021
Expected term (in years)	4.17			4.03			3.97			0.50			0.49			0.50
Risk-free interest rate	4.06		%	1.99		%	0.48		%	4.70		%	3.79		%	0.14		%
Volatility	67		%	66		%	66		%	70		%	69		%	36		%
Dividend yield(1)	—		%	—		%	—		%	—		%	—		%	—		%
Weighted average estimated fair value at grant date	$	7.04		$	19.76		$	15.09		$	14.83		$	15.77		$	9.64

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

Segment Information and Revenue by Geography and Products (Tables)

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Schedule of Revenue by Geography

The following table presents a summary of revenue by geography and product category for the years ended December 31, 2023, 2022 and 2021 (in thousands):


	Year Ended December 31,
	2023		2022		2021
Revenue mix by geography:
United States	$	88,378	$	107,453	$	96,629
Japan	52,135		64,920		70,235
Asia, excluding Japan	18,702		21,873		12,649
Europe	20,330		20,882		19,444
Rest of the world, other than United States, Asia and Europe	32,824		37,271		32,313
Total consolidated revenue	$	212,369	$	252,399	$	231,270
Revenue mix by product category:
Systems	$	130,528	$	164,559	$	139,633

Consumables	25,302		21,737		16,401
Skincare	33,983		42,500		49,669
Total product revenue	189,813		228,796		205,703
Service	22,556		23,603		25,567
Total consolidated revenue	$	212,369	$	252,399	$	231,270

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Net revenue:
Total net revenue	$ 212,369	$ 252,399	$ 231,270
Cost of revenue:
Total cost of revenue	170,875	112,570	98,165
Gross profit	41,494	139,829	133,105
Operating expenses:
Sales and marketing	113,003	106,947	76,762
Research and development	21,408	25,155	21,568
General and administrative	63,313	45,917	32,945
Total operating expenses	197,724	178,019	131,275
Income (loss) from operations	(156,230)	(38,190)	1,830
Interest and other income (expense), net:
Amortization of debt issuance costs	(2,236)	(1,355)	(710)
Interest on Convertible notes	(11,780)	(5,658)	(2,514)
Interest income	9,191	3,227	17
Other expense, net	(244)	(4,303)	(2,423)
Total interest and other income (expense)	(5,069)	(42,512)	1,555
Income (loss) before income taxes	(161,299)	(80,702)	3,385
Income tax expense	1,534	1,638	1,323
Net income (loss)	$ (162,833)	$ (82,340)	$ 2,062
Net income (loss) per share:
Basic (USD per share)	$ (8.19)	$ (4.39)	$ 0.12
Diluted (USD per share)	$ (8.19)	$ (4.39)	$ 0.11
Weighted-average number of shares used in per share calculations:
Basic (in shares)	19,885	18,747	17,891
Diluted (in shares)	19,885	18,747	18,362
Convertible Debt
Interest and other income (expense), net:
Gain (loss) on extinguishment of debt	$ 0	$ (34,423)	$ 0
PPP loan
Interest and other income (expense), net:
Gain (loss) on extinguishment of debt	0	0	7,185
Products
Net revenue:
Total net revenue	189,813	228,796	205,703
Cost of revenue:
Total cost of revenue	158,299	100,254	83,048
Service
Net revenue:
Total net revenue	22,556	23,603	25,567
Cost of revenue:
Total cost of revenue	$ 12,576	$ 12,316	$ 15,117

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

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


December 31, 2023	Level 1		Level 2
Cash equivalents:
Money market funds	$	123,387	$	—
Total	$	123,387	$	—


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)

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

12 Months Ended

Dec. 31, 2023

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, 2023, 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 19,960,622 shares are issued and outstanding as of December 31, 2023, 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.

As of December 31, 2023, 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.

In July 2023, stockholders approved an amendment and restatement of the 2019 Equity Incentive Plan and approved an additional 1,300,000 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, 2023, 2022 and 2021, the Company issued 57,039, 12,496 and 41,301 RSUs, respectively, to its non-employee directors. In the year ended December 31, 2023, the Company issued 73,964 non-statutory stock options to its non-employee directors.

In the years ended December 31, 2023, 2022 and 2021, the Company’s Board of Directors granted 533,981, 191,993 and 219,686 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 the years ended December 31, 2023, 2022 and 2021 the Company’s Board of Directors granted its executive officers and certain senior management employees 239,777, 169,785, and 178,222 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.

2023 Inducement Equity Incentive Plan

At the Company’s Annual Meeting of Stockholders in 2023, the Company stockholders approved the 2023 Inducement Equity Incentive Plan, which permits the grant of equity-based awards, restricted stock units, restricted stock, stock appreciation rights, and performance awards to individuals not previously employees of the Company as an inducement material to the individuals’ entry into employment with the Company. The maximum aggregate number of shares of common stock that may be awarded and sold under the 2023 Inducement Equity Incentive Plan is 2,500,000. In 2023, 2,500,000 shares were approved and reserved to be available for future grants. In the year ended December 31, 2023, the Company issued 95,920 incentive equity awards under the 2023 Inducement Equity Incentive Plan.

Employee Stock Purchase Plan

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, 2023, 2022, and 2021, under the 2004 ESPP, the Company issued 51,786, 49,306, and 59,635 shares, respectively. At December 31, 2023, 326,800 shares remained available for future issuance.

Due to the late filing of the Company's Quarterly Report on Form 10-Q for the three months ended September 30, 2023, participation in the ESPP was suspended.

Option and Award Activity

Activities under 2004 Equity Incentive Plan, 2019 Equity Incentive Plan and 2023 Inducement Equity Incentive Plan are 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, 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
Additional shares reserved(2)	3,800,000
Options granted	—	1,099,075	$	13.10
Options exercised	—	(42,234)	$	14.50
Options cancelled (expired or forfeited)	288,536	(288,536)	$	29.21
Stock awards granted	(2,144,988)	—	—
Stock awards cancelled (expired or forfeited)	540,064	—	—
Balances as of December 31, 2023	3,554,537	1,282,240	$	17.97	8.21	$	—
Exercisable as of December 31, 2023		190,997	$	36.39	3.36	$	—
Vested and expected to vest, net of estimated forfeitures, as of December 31, 2023		1,180,944	$	18.37	8.11	$	—

(1)Based on the closing stock price of $3.53 of the Company’s stock on December 31, 2023, $44.22 on December 31, 2022, $41.32 on December 31, 2021 and $24.11 on December 31, 2020.

(2)Approved by the board of directors and stockholders in 2023, 2022 and 2021.

The equity plans deduct the shares available for issuance by the gross number of shares for which an award is exercised or vests, not the net number of shares actually issued upon exercise, in the event the exercise price is paid in shares of the Company's common stock or shares are withheld to satisfy tax withholding obligations. Any RSU or PSU shares granted on or after July 13, 2023 are counted against the shares available for grant at a ratio of 1.65 shares for every one share granted.

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 2023, 2022 and 2021 was $0.3 million, $1.1 million, and $1.3 million, respectively. The options outstanding and exercisable at December 31, 2023 were in the following exercise price ranges:


Exercise Prices			Number of Shares Outstanding	Contractual Life (in years)	Number of Shares Exercisable
	$3.67		31,256	6.85	—
	$11.02		735,295	9.63	—
$14.04	——	$18.55	87,001	8.81	3,250
	$19.44		147,455	9.15	—
$25.70	——	$33.45	187,927	3.37	121,909
$36.55	——	$39.30	30,881	1.20	30,881
	$39.88		2,187	5.00	1,393
	$41.39		21,220	8.18	10,168
	$47.40		4,745	0.96	4,745
	$63.62		34,273	7.13	18,651
$3.67	——	$63.62	1,282,240	8.21	190,997

Stock Awards (RSU and PSU) Activity Table

Information with respect to RSUs and PSUs activity is as follows:


	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, 2020	779,757	$	23.96				$	18,800
Granted	744,949	$	40.16
Vested(3)	(254,946)	$	22.94	$	8,287	(4)
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	(5)
Forfeited	(160,131)	$	41.48
Outstanding at December 31, 2022	906,211	$	40.39				$	40,073
Granted	829,866	$	14.43
Vested(3)	(298,485)	$	35.61	$	9,597	(6)
Forfeited	(527,730)	$	36.56
Outstanding at December 31, 2023	909,862	$	20.46				$	3,212

(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 $3.53 on December 31, 2023, $44.22 on December 31, 2022, $41.32 on December 31, 2021, and $24.11 on December 31, 2020.

(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 $5.8 million.

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

(6)On the grant date, the fair value for these vested awards was $10.6 million.

Stock-Based Compensation

Stock-based compensation expense for the years ended December 31, 2023, 2022 and 2021 was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Stock options	$	2,227	$	2,175	$	782
RSUs	6,100		6,979		5,305
PSUs	(586)		4,430		6,591
ESPP	323		816		494
Total stock-based compensation expense	$	8,064	$	14,400	$	13,172

Total stock-based compensation expense recognized during the years ended December 31, 2023, 2022 and 2021 was recorded in the Consolidated Statements of Operations as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Cost of revenue	$	751	$	1,665	$	1,408
Sales and marketing	3,387		4,998		3,160
Research and development	1,082		2,405		2,784
General and administrative	2,844		5,332		5,820
Total stock-based compensation expense	$	8,064	$	14,400	$	13,172

In the year ended December 31, 2023, stock-based compensation expense was impacted by the Company reducing its estimate of the probability of certain performance stock unit grants vesting, and by the reversal of previously reported stock-based compensation expense upon the forfeiture of unvested equity-based awards.

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)
	2023			2022			2021			2023			2022			2021
Expected term (in years)	4.17			4.03			3.97			0.50			0.49			0.50
Risk-free interest rate	4.06		%	1.99		%	0.48		%	4.70		%	3.79		%	0.14		%
Volatility	67		%	66		%	66		%	70		%	69		%	36		%
Dividend yield(1)	—		%	—		%	—		%	—		%	—		%	—		%
Weighted average estimated fair value at grant date	$	7.04		$	19.76		$	15.09		$	14.83		$	15.77		$	9.64

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

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Options Outstanding and Exercisable Price Ranges (Details)	12 Months Ended
	Dec. 31, 2023 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, lower range limit (in dollars per share) \| $ / shares	$ 3.67
Exercise price, upper range limit (in dollars per share) \| $ / shares	$ 63.62
Number outstanding (in shares)	1,282,240
Contractual life	8 years 2 months 15 days
Number exercisable (in shares)	190,997
Exercise Price Range 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) \| $ / shares	$ 3.67
Number outstanding (in shares)	31,256
Contractual life	6 years 10 months 6 days
Number exercisable (in shares)	0
Exercise Price Range 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) \| $ / shares	$ 11.02
Number outstanding (in shares)	735,295
Contractual life	9 years 7 months 17 days
Number exercisable (in shares)	0
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	$ 14.04
Exercise price, upper range limit (in dollars per share) \| $ / shares	$ 18.55
Number outstanding (in shares)	87,001
Contractual life	8 years 9 months 21 days
Number exercisable (in shares)	3,250
Exercise Price Range 4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) \| $ / shares	$ 19.44
Number outstanding (in shares)	147,455
Contractual life	9 years 1 month 24 days
Number exercisable (in shares)	0
Exercise Price Range 5
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, lower range limit (in dollars per share) \| $ / shares	$ 25.70
Exercise price, upper range limit (in dollars per share) \| $ / shares	$ 33.45
Number outstanding (in shares)	187,927
Contractual life	3 years 4 months 13 days
Number exercisable (in shares)	121,909
Exercise Price Range 6
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	$ 39.30
Number outstanding (in shares)	30,881
Contractual life	1 year 2 months 12 days
Number exercisable (in shares)	30,881
Exercise Price Range 7
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) \| $ / shares	$ 39.88
Number outstanding (in shares)	2,187
Contractual life	5 years
Number exercisable (in shares)	1,393
Exercise Price Range 8
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share) \| $ / shares	$ 41.39
Number outstanding (in shares)	21,220
Contractual life	8 years 2 months 4 days
Number exercisable (in shares)	10,168
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	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)	34,273
Contractual life	7 years 1 month 17 days
Number exercisable (in shares)	18,651

Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Shares Available For Grant
Balance (in shares)	1,070,925	947,347	1,085,170
Additional shares reserved (in shares)	3,800,000	600,000	450,000
Options granted (in shares)		(296,238)	(172,139)
Options cancelled (expired or forfeited) (in shares)	288,536	29,518	30,173
Stock awards granted (in shares)	(2,144,988)	(374,274)	(744,949)
Stock awards canceled (expired or forfeited) (in shares)	540,064	164,572	299,092
Balance (in shares)	3,554,537	1,070,925	947,347	1,085,170
Number of Shares
Balance (in shares)	513,935	287,175	217,007
Options granted (in shares)	1,099,075	296,238	172,139
Options exercised (in shares)	(42,234)	(39,960)	(71,798)
Options cancelled (expired or forfeited) (in shares)	(288,536)	(29,518)	(30,173)
Balance (in shares)	1,282,240	513,935	287,175	217,007
Exercisable (in shares)	190,997
Vested and expected to vest (in shares)	1,180,944
Weighted- Average Exercise Price
Balance (in dollars per share)	$ 34.41	$ 25.89	$ 22.35
Options granted (in dollars per share)	13.10	40.95	30.71
Options exercised (in dollars per share)	14.50	21.28	22.02
Options cancelled (expired or forfeited) (in dollars per share)	29.21	34.91	37.14
Balance (in dollars per share)	17.97	$ 34.41	$ 25.89	$ 22.35
Exercisable (in dollars per share)	36.39
Vested and expected to vest (in dollars per share)	$ 18.37
Weighted-Average Remaining Contractual Life
Balance	8 years 2 months 15 days	6 years 7 months 17 days	4 years 11 months 1 day	3 years 9 months
Exercisable	3 years 4 months 9 days
Vested and expected to vest	8 years 1 month 9 days
Aggregate Intrinsic Value
Balance	$ 0	$ 5,990	$ 4,460	$ 1,470
Exercisable	0
Vested and expected to vest	$ 0
Additional Disclosures
Share price (in dollars per share)	$ 3.53	$ 44.22	$ 41.32	$ 24.11

Defined Contribution Plan - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Retirement Benefits [Abstract]
Maximum 401(k) employee contribution percentage	100.00%
Employer 401(k) discretionary contribution	$ 0.5	$ 0.5	$ 0.3

Net Income (Loss) Per Share - Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Net income (loss)	$ (57,233)	$ (44,274)	$ (33,278)	$ (28,048)	$ (7,788)	$ (12,134)	$ (47,276)	$ (15,142)	$ (162,833)	$ (82,340)	$ 2,062	$ (23,900)
Denominator:
Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic (in shares)									19,885	18,747	17,891
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)									19,885	18,747	18,362
Net income (loss) per share:
Net income (loss) per share, basic (USD per share)	$ (2.87)	$ (2.22)	$ (1.68)	$ (1.42)	$ (0.40)	$ (0.62)	$ (2.53)	$ (0.84)	$ (8.19)	$ (4.39)	$ 0.12
Net income (loss) per share, diluted (USD per share)	$ (2.87)	$ (2.22)	$ (1.68)	$ (1.42)	$ (0.40)	$ (0.62)	$ (2.53)	$ (0.84)	$ (8.19)	$ (4.39)	$ 0.11
Options
Dilutive effect of incremental shares and share equivalents:
Dilutive effect of share-based payment arrangements (in shares)									0	0	68
RSUs
Dilutive effect of incremental shares and share equivalents:
Dilutive effect of share-based payment arrangements (in shares)									0	0	294
PSUs
Dilutive effect of incremental shares and share equivalents:
Dilutive effect of share-based payment arrangements (in shares)									0	0	104
ESPP
Dilutive effect of incremental shares and share equivalents:
Dilutive effect of share-based payment arrangements (in shares)									0	0	5

Schedule II - Valuation and Qualifying Accounts (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023	$	53,118	$	48,666	$	4,504	$	97,280
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


	Balance at Beginning of Year		Additions		Deductions		Balance at End of Year
Allowance for credit losses, accounts receivable
Year ended December 31, 2023	$	2,497	$	8,525	$	1,144	$	9,878
Year ended December 31, 2022	$	899	$	1,787	$	189	$	2,497
Year ended December 31, 2021	$	1,598	$	271	$	970	$	899

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

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

Liquidity and Management’s Plans

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”).

Reclassification

Risks and Uncertainties

Use of Estimates

Recently Issued Accounting Pronouncements Not Yet Adopted by the Company

Revenue recognition

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's payment terms for its system consoles and other accessories require payment within 30 days of shipment. Certain international distributor arrangements allow for longer payment terms.

Consumables and other accessories

Skincare products

Extended service contracts

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.

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

Deferred Sales Commissions

Cash and Cash Equivalents

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

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

Allowance for Sales Returns and Credit Losses

Concentration of Credit Risk and Other Risks and Uncertainties

Distribution of Third-Party Products

Supplier concentration

Inventories

Property and Equipment


			Useful Lives (Years)
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

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, 2023 and 2022, the Company had capitalized cloud computing set-up costs with a carrying amount of $0.4 million and $0.4 million, respectively, in Other current assets and prepaid expenses, and $3.1 million and $3.5 million, respectively, in Other long-term assets. During the years ended December 31, 2023, 2022, and 2021, there was $0.4 million, $0.4 million, and zero, 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

As of December 31, 2023, there has been no impairment of goodwill. All acquired intangible assets have been fully amortized as of December 31, 2023.

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.

Leases

Accounting for Leases as a Lessee

Accounting for Leases as a Lessor

The Company leases certain AviClear devices 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 as consumable revenue in the period the treatment protocol is initiated.

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

Cost of Revenue

Research and Development Expenditures

Advertising Costs

Advertising costs are included as part of sales and marketing expense and are expensed as incurred. Advertising expenses for 2023, 2022 and 2021 were $4.5 million, $4.9 million and $2.1 million, respectively.

Stock-based Compensation

The fair value of each option is determined using the Black-Scholes option pricing model, which used the following inputs:

Expected Volatility: For the underlying stock price volatility of the Company’s stock, the Company estimates volatility 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.

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.

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

Segments

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS New warehouse facility On January 16, 2024, the Company entered into a thirty-seven-month lease agreement. The lease is for 53,000 square feet of warehouse space in Hayward, California. This space was leased to consolidate current inventory locations in Northern California. The term of the lease expires on February 28, 2027, and requires total payments over the lease term of approximately $2.5 million. Termination of skincare distribution agreement On February 28, 2024, the Company and its Japanese subsidiary, Cutera KK, entered into a termination agreement (the “Termination Agreement”) with ZO USA and its Japanese subsidiary, ZO Skin Health GK (“ZO Japan” and together with ZO USA and their affiliates, “ZO”), which, among other things, (i) terminates all agreements related to the distribution by the Company of ZO’s products in Japan effective immediately, (ii) provides for the orderly transition of the distribution of ZO products to ZO, (iii) transfers certain Company employees dedicated to the distribution of ZO products to ZO, (iv) transfers certain customer contracts related to ZO products from the Company to ZO and (v) transfers certain inventory and assets related to the distribution of ZO products from the Company to ZO. The Termination Agreement requires ZO to pay the Company $5.75 million within three business days of the execution of the Termination Agreement and make a second payment of $5.75 million, less any offsets under the Termination Agreement (including, but not limited to, 42.2% of the Company’s net revenue for sales of ZO products under the Distribution Agreement between January 1, 2024 and February 28, 2024), upon the earlier of (a) the completion the transition of regulatory and distribution activities such that ZO is able to fulfill product orders by customers in Japan, as determined by ZO and the Company, and (b) June 14, 2024. The Company received the first payment of $5.75 million on February 29, 2024, and received the second payment of $2.37 million on April 1, 2024, which was net of $1.6 million in amounts owed by Cutera. In the twelve months ended December 31, 2023, 2022, and 2021 revenue from the distribution of skincare products was $34.0 million, $42.5 million, and $49.7 million, respectively, representing 16%, 17%, and 21% of the Company’s consolidated revenue, respectively. Non-renewal of manufacturing service agreement with Jabil Inc. (“Jabil”) In November 2023, the Company communicated its intention not to renew its existing manufacturing service agreement (“Manufacturing Service Agreement”) with Jabil Inc., a third-party manufacturing provider that manufactured excel V+ and AviClear devices for the Company. At the time of the communication of non-renewal, the Company concluded that it would have an obligation to purchase unshipped inventory from Jabil. The Company subsequently received claims from Jabil related to other amounts associated with the termination and entered into settlement discussions with Jabil. On February 28, 2024, the Company and Jabil signed a settlement agreement (“Settlement Agreement”) for the non-renewal of the Manufacturing Service Agreement. The Settlement Agreement provided for a payment by Cutera to Jabil of $19.5 million, to be offset by $1.3 million in amounts owed by Jabil. The $19.5 million payment to Jabil relates to the Company's receipt of $13.5 million of inventories, $0.3 million of equipment, and the payment of $5.7 million for expenses either previously incurred by Jabil or associated with the non-renewal of the Manufacturing Services Agreement. The Company recorded the net balance of the $19.5 million payment owed to Jabil and the $15.1 million aggregate of inventories, equipment, and other amounts owed to Cutera, in accrued liabilities on the consolidated balance sheet at December 31, 2023. The Company also recorded an accrued loss of $4.6 million on inventories committed as a result of the Settlement Agreement, that management determined to be in excess of its future demand, in accrued liabilities on the consolidated balance sheet at December 31, 2023. The $5.7 million for expenses incurred by Jabil was recorded in cost of revenue on the consolidated statements of operations in the twelve months ended December 31, 2023. Other 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.

Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Dec. 31, 2023	May 08, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
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	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 301
Entity Common Stock, Shares Outstanding		20,072,096
Entity Central Index Key	0001162461
Amendment Flag	false
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2023

Fair Value of Financial Instruments - Narrative (Details) - Convertible Debt	Dec. 31, 2022	May 31, 2022	Mar. 31, 2021
Notes due in 2026
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument, interest rate (as a percent)			2.25%
Notes due in 2028
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument, interest rate (as a percent)		2.25%
Notes due in 2029
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument, interest rate (as a percent)	4.00%

Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]
Net revenue	$ 49,540	$ 46,478	$ 61,825	$ 54,526	$ 67,353	$ 62,808	$ 64,224	$ 58,014	$ 212,369	$ 252,399	$ 231,270
Gross profit	(12,678)	6,457	26,083	21,632	38,749	34,248	35,044	31,788	41,494	139,829	133,105
Net loss	$ (57,233)	$ (44,274)	$ (33,278)	$ (28,048)	$ (7,788)	$ (12,134)	$ (47,276)	$ (15,142)	$ (162,833)	$ (82,340)	$ 2,062	$ (23,900)
Net loss per share:
Basic (USD per share)	$ (2.87)	$ (2.22)	$ (1.68)	$ (1.42)	$ (0.40)	$ (0.62)	$ (2.53)	$ (0.84)	$ (8.19)	$ (4.39)	$ 0.12
Diluted (USD per share)	$ (2.87)	$ (2.22)	$ (1.68)	$ (1.42)	$ (0.40)	$ (0.62)	$ (2.53)	$ (0.84)	$ (8.19)	$ (4.39)	$ 0.11
Current assets	$ 269,185	$ 311,307	$ 365,944	$ 416,045	$ 451,240	$ 366,312	$ 373,313	$ 236,784	$ 269,185	$ 451,240
Long-term assets	77,106	95,326	93,080	80,534	69,748	61,845	50,779	29,907	77,106	69,748
Current liabilities	87,747	92,406	102,923	108,607	105,839	98,258	85,716	74,037	87,747	105,839
Long-term liabilities	$ 430,374	$ 430,312	$ 429,902	$ 430,017	$ 430,330	$ 314,405	$ 314,502	$ 149,494	$ 430,374	$ 430,330

Commitments and Contingencies - Maturities of Finance Leases Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
2024	$ 954
2025	704
2026	424
2027	16
Total lease payments	2,098
Less: imputed interest	(209)
Present value of lease liabilities	$ 1,889	$ 1,310

Net Income (Loss) Per Share - Narrative (Details)	12 Months Ended
Net Income (Loss) Per Share - Narrative (Details)	Dec. 31, 2023 shares
Notes due in 2026 \| Convertible Debt
Debt convertible to common shares (in shares)	8,696,792

Commitments and Contingencies - Financial Statement Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Assets
Operating lease right-of-use assets	$ 10,055	$ 12,831
Finance lease	$ 2,516	$ 1,606
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property and equipment, net	Property and equipment, net
Total leased assets	$ 12,571	$ 14,437
Liabilities
Operating lease liabilities	2,441	2,810
Operating lease liabilities, non-current	8,887	11,352
Total Operating lease liabilities	11,328	14,162
Finance lease liabilities, current	$ 825	$ 485
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued liabilities	Accrued liabilities
Finance lease liabilities, non-current	$ 1,064	$ 825
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities
Present value of lease liabilities	$ 1,889	$ 1,310
Finance lease cost	790	643	$ 484
Finance lease cost	116	76	59
Operating lease cost	3,598	3,560	3,542
Operating cash flows	87	78	56
Financing cash flows	594	520	462
Operating cash flows	$ 3,297	$ 2,526	$ 3,092

Derivative Instruments (Details) - Foreign exchange forward - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2023
Derivative [Line Items]
Gross notional amount	$ 6,128,000	$ 0
Fair value	558,000
Unrealized loss	$ (558,000)

- Definition

Nominal or face amount used to calculate payments on the derivative asset.

+ References + Details

- Definition

The net change in the difference between the fair value and the carrying value, or in the comparative fair values, of derivative instruments, including options, swaps, futures, and forward contracts, held at each balance sheet date, that was included in earnings for the period.

+ References + Details

Commitments and Contingencies - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
2024	$ 2,932
2025	2,935
2026	3,030
2027	3,133
2028	325
Thereafter	147
Total lease payments	12,502
Less: imputed interest	(1,174)
Total Operating lease liabilities	$ 11,328	$ 14,162

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, 2023	Dec. 31, 2022	Dec. 31, 2021	May 24, 2022	Mar. 04, 2021	Dec. 31, 2020
Extinguishment of Debt [Line Items]
Share price (in dollars per share)		$ 3.53	$ 44.22	$ 41.32			$ 24.11
Common Stock
Extinguishment of Debt [Line Items]
Share price (in dollars per share)					$ 41.31
Notes due in 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
Loss on debt extinguishment		$ 0	34,423	$ 0
Convertible Debt \| Notes due in 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

Balance Sheet Detail - Other Current Assets and Prepaid Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deposits with vendors	$ 9,501	$ 13,917
Foreign tax receivable	6,307	7,147
Prepayments	3,819	2,972
Other	225	0
Total	$ 19,852	$ 24,036

Fair Value of Financial Instruments - Schedule of Financial Assets Measured and Recognized at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable investments:		$ 171,390
Total	$ 123,387	197,798
Level 1 \| Foreign exchange forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities:		0
Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	123,387	26,408
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable investments:		0
Total	0
Total		(558)
Level 2 \| Foreign exchange forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities:		(558)
Level 2 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	$ 0	$ 0

Subsequent Events (Details) ft² in Thousands, $ in Thousands					2 Months Ended	3 Months Ended								12 Months Ended
	Apr. 01, 2024 USD ($)	Feb. 29, 2024 USD ($)	Feb. 28, 2024 USD ($)	Jan. 16, 2024 USD ($) ft²	Feb. 28, 2024 USD ($)	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Subsequent Event [Line Items]
Lease payments														$ 3,297	$ 2,526	$ 3,092
Total net revenue						$ 49,540	$ 46,478	$ 61,825	$ 54,526	$ 67,353	$ 62,808	$ 64,224	$ 58,014	212,369	252,399	$ 231,270
Jabil settlement obligation, net						8,908				$ 0				8,908	$ 0
Accrued Liabilities
Subsequent Event [Line Items]
Jabil settlement obligation, net						19,500								19,500
Jabil settlement receivables, inventories and equipment						15,100								15,100
Accrued inventory loss						$ 4,600								4,600
Settlement Agreement, Non-Renewal Of Manufacturing Service Agreement \| Compensation For Previously Incurred Expenses \| Cost of revenue
Subsequent Event [Line Items]
Settlement agreement, amount awarded to other party														$ 5,700
ZO Skin Health \| Revenue Benchmark \| Customer Concentration Risk
Subsequent Event [Line Items]
Concentration risk (as a percent)														16.00%	17.00%	21.00%
Skincare
Subsequent Event [Line Items]
Total net revenue														$ 33,983	$ 42,500	$ 49,669
Subsequent Event
Subsequent Event [Line Items]
Lease term				37 months
Lessee, operating lease (in square foot) \| ft²				53
Lease payments				$ 2,500
Percent net revenue reduction to termination fee receivable					42.20%
Offset to termination fee	$ 1,600
Subsequent Event \| Settlement Agreement, Non-Renewal Of Manufacturing Service Agreement
Subsequent Event [Line Items]
Settlement agreement, amount awarded to other party			$ 19,500
Settlement agreement, amount awarded from other party			1,300
Subsequent Event \| Settlement Agreement, Non-Renewal Of Manufacturing Service Agreement \| Receipt Of Inventories
Subsequent Event [Line Items]
Settlement agreement, amount awarded to other party			13,500
Subsequent Event \| Settlement Agreement, Non-Renewal Of Manufacturing Service Agreement \| Purchased Equipment
Subsequent Event [Line Items]
Settlement agreement, amount awarded to other party			300
Subsequent Event \| Settlement Agreement, Non-Renewal Of Manufacturing Service Agreement \| Compensation For Previously Incurred Expenses
Subsequent Event [Line Items]
Settlement agreement, amount awarded to other party			5,700
Subsequent Event \| Three Business Days
Subsequent Event [Line Items]
Termination fee receivable			5,750		$ 5,750
Proceeds from termination fees received		$ 5,750
Subsequent Event \| Between January 1st And February 28th
Subsequent Event [Line Items]
Termination fee receivable			$ 5,750		$ 5,750
Proceeds from termination fees received	$ 2,370

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Valuation allowance	$ 97,280	$ 53,118
Change in valuation allowance	44,200	12,600
Net deferred tax asset	579	$ 590
Operating loss carryforwards without expiration	154,200
Foreign Tax Authority
Net deferred tax asset	600
Domestic Tax Authority
Net operating loss carryforward	190,700
Domestic Tax Authority \| Internal Revenue Service (IRS) \| Research Tax Credit Carryforward
Tax credit carryforward	11,500
State and Local Jurisdiction
Net operating loss carryforward	99,400
State and Local Jurisdiction \| California Franchise Tax Board \| Research Tax Credit Carryforward
Tax credit carryforward	$ 12,100

Summary of Significant Accounting Policies - Property and Equipment (Details)	Dec. 31, 2023
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

Deferred Revenue (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023 and 2022 (in thousands):


	December 31,
	2023		2022
Beginning balance	$	13,498	$	10,825
Add: Payments received from current period sales	21,040		21,984
Less: Revenue recognized from current period sales	(11,732)		(9,928)
Less: Revenue recognized from beginning balance	(10,890)		(9,383)
Ending balance	$	11,916	$	13,498

Balance Sheet Detail - Narrative (Details) - USD ($)	12 Months Ended
Balance Sheet Detail - Narrative (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Valuation adjustment for excess and obsolete inventory	$ 13,000,000	$ 3,600,000
Valuation adjustments, long-term inventory	12,800,000
Goodwill	1,339,000	$ 1,339,000
Goodwill impairment	$ 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

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2023
Audit Information [Abstract]
Auditor Name	BDO USA, P.C.
Auditor Location	San Francisco, California
Auditor Firm ID	243