GLAUKOS Corp [GKOS] Filings

10-Q 1 gkos-20230930x10q.htm 10-Q

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-37463

GLAUKOS CORPORATION

(Exact name of registrant as specified in its charter)


Delaware	33-0945406
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

One Glaukos Way Aliso Viejo, California	92656
(Address of registrant’s principal executive offices)	(Zip Code)

(949) 367-9600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		GKOS		New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of ‘‘large accelerated filer,’’ ‘‘accelerated filer,’’ ‘‘smaller reporting company’’ and “emerging growth company” in Rule 12b-2 of the Exchange Act:

☒ Large accelerated filer

☐ Accelerated filer

☐ Non-accelerated filer

☐ Smaller reporting company

☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 30, 2023, there were 48,799,581 shares of the registrant’s Common Stock, $0.001 par value per share, outstanding.

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GLAUKOS CORPORATION

Form 10-Q

For the Quarterly Period Ended September 30, 2023

Table of Contents


		Page
PART I: FINANCIAL INFORMATION		4
Item 1.	Financial Statements	4
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Operations	5
	Condensed Consolidated Statements of Comprehensive Loss	6
	Condensed Consolidated Statements of Stockholders’ Equity	7
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	36

PART II: OTHER INFORMATION		37
Item 1.	Legal Proceedings	37
Item1A.	Risk Factors	37
Item 5.	Other Information	51


Item 6.	Exhibits	52

SIGNATURES		53

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Note Regarding Forward-Looking Statements

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act) All statements other than statements of historical or current facts included in this report are forward-looking statements. In some cases, you can identify forward-looking statements by the following words: "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," "ongoing" or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Any statements in this Quarterly Report on Form 10-Q regarding future operations, expected operating results and financial performance, the Company’s strategy for growth, product development activities, regulatory approvals, including timing and likelihood of success, market position and expenditures are forward-looking statements. These forward-looking statements are based on management’s beliefs and assumptions based on the information currently available to management. Although we believe that we have a reasonable basis for each forward-looking statement contained in this report, we caution you that these forward-looking statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements.

You are urged to carefully review the disclosures we make concerning the risks we face and other factors that may affect the outcome of our forward-looking statements and our business and operating results, including the risks set forth in the "Risk Factors" section of this report, which includes a discussion of important factors that may cause actual results to differ materially from those expressed or implied by the forward-looking statements. As a result of these factors, we cannot assure you that the forward-looking statements in this report will prove to be accurate, and actual results may differ materially from those expressed or implied by the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. You are therefore cautioned not to place undue reliance on the forward-looking statements included in this report, which speak only as of the date of this document. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

We use Glaukos, our logo, iStent, iStent inject, iStent infinite, iPrism, iDose, iPRIME, MIGS, Avedro, Photrexa, iLink, KXL, Epioxa, iLution, Retina XR and other marks as trademarks. This report contains references to our trademarks and service marks and to those belonging to other entities. Solely for convenience, trademarks and trade names referred to in this report, including logos, artwork and other visual displays, may appear without the ® or ™ symbols, but such references are not intended to indicate in any way that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensor to these trademarks and trade names. We do not intend our use or display of other entities’ trade names, trademarks or service marks to imply a relationship with, or endorsement or sponsorship of us by, any other entity.

References throughout this document to “we,” “us,” “our,” the “Company,” or “Glaukos” refer to Glaukos Corporation and its consolidated subsidiaries.

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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

GLAUKOS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par values)


	September 30,		December 31,
	2023		2022
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	108,929	$	119,525
Short-term investments		191,928		233,170
Accounts receivable, net		39,326		36,073
Inventory		39,781		37,841
Prepaid expenses and other current assets		19,565		17,250
Total current assets		399,529		443,859
Restricted cash		5,856		7,078
Property and equipment, net		103,075		94,403
Operating lease right-of-use assets		27,273		25,826
Finance lease right-of-use asset		44,786		46,601
Intangible assets, net		289,184		307,869
Goodwill		66,134		66,134
Deposits and other assets		12,797		10,613
Total assets	$	948,634	$	1,002,383

Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	10,413	$	14,403
Accrued liabilities		56,734		57,956
Total current liabilities		67,147		72,359
Convertible senior notes		282,430		281,400
Operating lease liability		30,572		28,905
Finance lease liability		70,784		72,172
Deferred tax liability, net		7,249		7,264
Other liabilities		12,793		10,278
Total liabilities		470,975		472,378

Commitments and contingencies (Note 12)

Stockholders' equity:
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued or outstanding		-		-
Common stock, $0.001 par value; 150,000 shares authorized; 48,748 and 47,782 shares issued and 48,720 and 47,754 shares outstanding as of September 30, 2023 and December 31, 2022, respectively		49		48
Additional paid-in capital		1,039,266		997,470
Accumulated other comprehensive income (loss)		764		(2,975)
Accumulated deficit		(562,288)		(464,406)
Less treasury stock (28 shares as of September 30, 2023 and December 31, 2022)		(132)		(132)
Total stockholders' equity		477,659		530,005
Total liabilities and stockholders' equity	$	948,634	$	1,002,383

See accompanying notes to condensed consolidated financial statements.

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GLAUKOS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share amounts)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Net sales	$	78,048	$	71,269	$	232,346	$	211,635
Cost of sales		18,510		16,861		56,684		51,757
Gross profit		59,538		54,408		175,662		159,878
Operating expenses:
Selling, general and administrative		54,247		47,149		161,034		140,998
Research and development		33,301		28,870		101,706		87,459
Acquired in-process research and development		-		-		3,000		10,000
Litigation-related settlement		-		-		-		(30,000)
Total operating expenses		87,548		76,019		265,740		208,457
Loss from operations		(28,010)		(21,611)		(90,078)		(48,579)
Non-operating expense:
Interest income		2,710		744		6,252		1,415
Interest expense		(3,398)		(3,481)		(10,205)		(10,311)
Other expense, net		(1,709)		(2,981)		(2,978)		(9,792)
Total non-operating expense		(2,397)		(5,718)		(6,931)		(18,688)
Loss before taxes		(30,407)		(27,329)		(97,009)		(67,267)
Income tax provision		37		247		873		468
Net loss	$	(30,444)	$	(27,576)	$	(97,882)	$	(67,735)
Basic and diluted net loss per share	$	(0.63)	$	(0.58)	$	(2.03)	$	(1.43)
Weighted average shares used to compute basic and diluted net loss per share		48,675		47,614		48,284		47,346

See accompanying notes to condensed consolidated financial statements.

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GLAUKOS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(unaudited)

(in thousands)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Net loss	$	(30,444)	$	(27,576)	$	(97,882)	$	(67,735)
Other comprehensive income (loss):
Foreign currency translation gain		561		342		822		1,500
Unrealized income (loss) on short-term investments		590		(450)		2,917		(5,338)
Other comprehensive income (loss):		1,151		(108)		3,739		(3,838)
Total comprehensive loss	$	(29,293)	$	(27,684)	$	(94,143)	$	(71,573)

See accompanying notes to condensed consolidated financial statements.

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GLAUKOS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited)

(in thousands)


						Accumulated
				Additional		other
	Common stock			paid-in		comprehensive		Accumulated		Treasury stock			Total
	Shares	Amount		capital		(loss) income		deficit		Shares	Amount		equity
Balance at December 31, 2022	47,782	$	48	$	997,470	$	(2,975)	$	(464,406)	(28)	$	(132)	$	530,005
Common stock issued under stock plans, net	187		—		1,301		—		—	—		—		1,301
Stock-based compensation	—		—		10,184		—		—	—		—		10,184
Other comprehensive income	—		—		—		1,650		—	—		—		1,650
Net loss	—		—		—		—		(34,626)	—		—		(34,626)
Balance at March 31, 2023	47,969	$	48	$	1,008,955	$	(1,325)	$	(499,032)	(28)	$	(132)	$	508,514
Common stock issued under stock plans, net	444		—		(702)		—		—	—		—		(702)
Acquired in-process R&D acquired through the issuance of common stock					3,000		—		—	—		—		3,000
Stock-based compensation	—		—		9,873		—		—	—		—		9,873
Other comprehensive income	—		—		—		938		—	—		—		938
Net loss	—		—		—		—		(32,812)	—		—		(32,812)
Balance at June 30, 2023	48,413	$	48	$	1,021,126	$	(387)	$	(531,844)	(28)	$	(132)	$	488,811
Common stock issued under stock plans, net	335		1		7,656		—		—	—		—		7,657
Stock-based compensation			—		10,484		—		—	—		—		10,484
Other comprehensive income			—		—		1,151		—	—		—		1,151
Net loss			—		—		—		(30,444)	—		—		(30,444)
Balance at September 30, 2023	48,748	$	49	$	1,039,266	$	764	$	(562,288)	(28)	$	(132)	$	477,659


						Accumulated
				Additional		other
	Common stock			paid-in		comprehensive		Accumulated		Treasury stock			Total
	Shares	Amount		capital		(loss) income		deficit		Shares	Amount		equity
Balance at December 31, 2021	46,993	$	47	$	952,432	$	15	$	(365,211)	(28)	$	(132)	$	587,151
Common stock issued under stock plans, net	124		—		1,515		—		—	—		—		1,515
Stock-based compensation	—		—		6,923		—		—	—		—		6,923
Other comprehensive loss	—		—		—		(3,402)		—	—		—		(3,402)
Net income	—		—		—		—		5,377	—		—		5,377
Balance at March 31, 2022	47,117	$	47	$	960,870	$	(3,387)	$	(359,834)	(28)	$	(132)	$	597,564
Common stock issued under stock plans, net	331		1		237		—		—	—		—		238
Stock-based compensation	—		—		10,539		—		—	—		—		10,539
Other comprehensive loss	—		—		—		(328)		—	—		—		(328)
Net loss	—		—		—		—		(45,536)	—		—		(45,536)
Balance at June 30, 2022	47,448	$	48	$	971,646	$	(3,715)	$	(405,370)	(28)	$	(132)	$	562,477
Common stock issued under stock plans, net	245		—		4,350		—		—	—		—		4,350
Stock-based compensation	—		—		9,411		—		—	—		—		9,411
Other comprehensive income	—		—		—		(108)		—	—		—		(108)
Net loss	—		—		—		—		(27,576)	—		—		(27,576)
Balance at September 30, 2022	47,693	$	48	$	985,407	$	(3,823)	$	(432,946)	(28)	$	(132)	$	548,554

See accompanying notes to condensed consolidated financial statements.

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GLAUKOS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)


	Nine Months Ended September 30,
	2023		2022
Operating Activities
Net loss	$	(97,882)	$	(67,735)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		6,455		4,710
Amortization of intangible assets		18,684		18,684
Noncash lease expense		3,218		3,378
Amortization of debt issuance costs		1,030		1,030
Deferred income tax benefit		(15)		(17)
Gain on disposal of fixed assets		881		29
Stock-based compensation		30,541		26,873
Unrealized foreign currency losses		991		4,219
Amortization of premium on short-term investments		(1,041)		601
Other liabilities		2,231		-
Acquired in-process R&D acquired through the issuance of common stock		3,000		-
Changes in operating assets and liabilities:
Accounts receivable, net		(3,535)		(3,121)
Inventory		(2,903)		(11,881)
Prepaid expenses and other current assets		(2,355)		(3,355)
Accounts payable and accrued liabilities		(6,149)		(1,847)
Other assets		(244)		(515)
Net cash used in operating activities		(47,093)		(28,947)
Investing activities
Purchases of short-term investments		(193,538)		(47,256)
Proceeds from sales and maturities of short-term investments		238,735		97,494
Purchases of property and equipment		(16,034)		(22,044)
Proceeds from disposal of property and equipment		-		96
Investment in company-owned life insurance		(2,147)		(166)
Net cash provided by investing activities		27,016		28,124
Financing activities
Proceeds from exercise of stock options		6,624		2,871
Proceeds from share purchases under Employee Stock Purchase Plan		6,278		5,630
Payment of employee taxes related to vested restricted stock units		(4,646)		(2,399)
Principal paid on finance lease		(517)		(380)
Net cash provided by financing activities		7,739		5,722
Effect of exchange rate changes on cash and cash equivalents		520		(1,927)
Net (decrease) increase in cash, cash equivalents and restricted cash		(11,818)		2,972
Cash, cash equivalents and restricted cash at beginning of period		126,603		110,124
Cash, cash equivalents and restricted cash at end of period	$	114,785	$	113,096
Supplemental disclosures of cash flow information
Taxes paid, net of refunds	$	1,218	$	372
Interest paid on convertible senior notes	$	3,953	$	3,953
Other interest paid	$	3,237	$	3,350
Supplemental schedule of noncash investing and financing activities
Purchases of property and equipment included in accounts payable and accrued liabilities	$	3,201	$	3,258

See accompanying notes to condensed consolidated financial statements.

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GLAUKOS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1. Organization and Basis of Presentation

Organization and business

Glaukos Corporation (Glaukos or the Company), incorporated in Delaware on July 14, 1998, is an ophthalmic medical technology and pharmaceutical company focused on developing novel therapies for the treatment of glaucoma, corneal disorders, and retinal diseases. The Company developed Micro-Invasive Glaucoma Surgery (MIGS) to serve as an alternative to the traditional glaucoma treatment paradigm and launched its first MIGS device commercially in 2012. The Company also offers commercially a proprietary bio-activated pharmaceutical therapy for the treatment of a rare corneal disorder, keratoconus, that was approved by the United States (U.S.) Food and Drug Administration (FDA) in 2016. The Company is developing a portfolio of platforms to support ongoing pharmaceutical and medical device innovations. Products or product candidates for each of these platforms are designed to advance the standard of care through better treatment options across the areas of glaucoma; corneal disorders such as keratoconus, dry eye and refractive vision correction; and retinal diseases such as neovascular age-related macular degeneration, diabetic macular edema and retinal vein occlusion.

The accompanying condensed consolidated financial statements include the accounts of Glaukos and its wholly-owned subsidiaries. The Company translates the financial statements of its foreign subsidiaries using end-of-period exchange rates for assets and liabilities and average exchange rates during each reporting period for results of operations. All significant intercompany balances and transactions among the consolidated entities have been eliminated in consolidation.

Basis of presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted (GAAP) in the U.S. for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X.

As permitted by Form 10-Q and Article 10 of Regulation S-X, under those rules, certain footnotes and other financial information that are normally required by GAAP have been condensed or omitted. The unaudited interim financial statements have been prepared on a basis consistent with the audited financial statements. In the opinion of management, the unaudited interim financial statements reflect all adjustments necessary for the fair presentation of the Company’s financial information contained herein. All such adjustments are of a normal and recurring nature. The condensed consolidated balance sheet as of December 31, 2022 has been derived from audited financial statements at that date, but excludes disclosures required by GAAP for complete financial statements. These interim financial statements do not include all disclosures required by GAAP and should be read in conjunction with the Company’s financial statements and accompanying notes for the fiscal year ended December 31, 2022, which are contained in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (SEC) on February 24, 2023. The Company’s results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any other interim period.

Recent developments

On May 16, 2023, the Company issued $3.0 million of its common stock in connection with the acquisition of intellectual property rights regarding certain formulations and methods for treating an ophthalmic disorder, including all related patents and patent applications, technology and know-how. The Company accounted for the transaction as an asset acquisition as the set of acquired assets did not constitute a business. The Company may have ongoing milestone payments based on achieving certain clinical and regulatory milestones depending on the success of the development and approval of the proprietary technologies. Additionally, if these proprietary technologies are commercialized, the Company may also have royalty payments and commercial milestone obligations that are determined based upon annual net sales thresholds. The Company does not have any accrued liabilities related to this transaction as of September 30, 2023.

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On July 17, 2023, the Company entered into a collaboration and marketing agreement (Collaboration and Marketing Agreement) with Radius XR, Inc. (Radius), in which the Company became the exclusive sales agent to market, promote and solicit orders for the Radius XR™ wearable patient engagement and diagnostic system within the United States. Pursuant to the Collaboration and Marketing Agreement, the Company earns commission payments based on sales of Radius products resulting from the Company’s marketing and promotion efforts. These sales commissions were immaterial for the three months ended September 30, 2023. In connection with the Collaboration and Marketing Agreement, the Company entered into a convertible promissory note (Convertible Promissory Note) pursuant to which the Company agreed to fund Radius up to $5.0 million, based upon the occurrence of certain potential future events. The Convertible Promissory Note bears interest on the outstanding principal at the rate of 5.0% per annum, and the outstanding principal and interest is convertible into preferred stock or capital stock in Radius under certain circumstances. As of September 30, 2023, $0.5 million is outstanding under the Convertible Promissory Note.

Note 2. Summary of Significant Accounting Policies

The Company accounts for a variable interest entity (VIE) when: (a) the equity investment at risk in the entity is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by other parties, including the equity holders; (b) the entity’s equity holders as a group (i) lack the direct or indirect ability to make decisions about the entity, (ii) are not obligated to absorb expected losses of the entity or (iii) do not have the right to receive expected residual returns of the entity; or (c) the entity’s equity holders have voting rights that are not proportionate to their economic interests, and the activities of the entity involve, or are conducted on behalf of, the equity holder with disproportionately few voting rights. If an entity is deemed to be a VIE, the enterprise that has both (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb the expected losses of the entity or right to receive benefits from the entity that could be potentially significant to the VIE is considered the primary beneficiary and must consolidate the VIE.

Through the Collaboration and Marketing Agreement, Radius was determined to be a VIE that the Company does not consolidate as the Company lacks the power to direct the activities that significantly impact the economic success of the VIE. As of September 30, 2023, the Company’s carrying value of the investment in the VIE totaled $0.5 million. The maximum exposure to loss related to the VIE is limited to the carrying value of the Company’s investment. The Company has provided no financing to the VIE other than the contractually required amount.

Other than the aforementioned VIE accounting policy, there have been no significant changes in the Company’s significant accounting policies during the three and nine months ended September 30, 2023, as compared with those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 24, 2023.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates and assumptions used in the preparation of the accompanying condensed consolidated financial statements.

The Company’s condensed consolidated financial statements as of and for the three and nine months ended September 30, 2023 reflect the Company’s estimates of the impact of the macroeconomic and geopolitical environment, including the impact of inflation, higher interest rates and foreign exchange rate fluctuations. The duration and scope of these conditions cannot be predicted; therefore, the extent to which these conditions will directly or indirectly impact the Company’s business, results of operations and financial condition is uncertain.

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that equate to the amount reported in the condensed consolidated statements of cash flows as of the beginning and end of the three months ended September 30, 2023 (in thousands):

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	September 30,		December 31,
	2023		2022
Cash and cash equivalents	$	108,929	$	119,525
Restricted cash		5,856		7,078
Cash, cash equivalents and restricted cash	$	114,785	$	126,603

The Company’s cash and cash equivalents include cash in readily available checking and money market accounts, as well as certificates of deposit. The Company maintains balances of cash and cash equivalents at one or more financial institutions that are in excess of federally insured limits.

Recently Adopted Accounting Pronouncements

The Company has not adopted any recent accounting pronouncements that had a material impact on its condensed consolidated financial statements.

Recently Issued Accounting Pronouncements Not Yet Adopted

The Company reviewed recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the condensed consolidated financial statements.

Note 3. Balance Sheet Details

Short-term Investments

Short-term investments consisted of the following (in thousands):


	At September 30, 2023
	Maturity	Amortized cost		Unrealized		Unrealized		Estimated
	(in years)	or cost		gains		losses		fair value
U.S. government agency bonds	less than 3	$	47,989	$	-		(658)	$	47,331
U.S. treasury securities	less than 2		95,929		-		(320)		95,609
Bank certificates of deposit	less than 2		11,300		1		(1)		11,300
Corporate notes	less than 3		22,104		11		(403)		21,712
Asset-backed securities	less than 2		8,613		-		(226)		8,387
Municipal bonds	less than 3		7,634		-		(45)		7,589
Total		$	193,569	$	12	$	(1,653)	$	191,928

	At December 31, 2022
	Maturity	Amortized cost		Unrealized		Unrealized		Estimated
	(in years)	or cost		gains		losses		fair value
U.S. government agency bonds	less than 3	$	88,478	$	-	$	(2,413)	$	86,065
U.S. treasury securities	less than 1		52,991		-		(384)		52,607
Bank certificates of deposit	less than 1		17,500		3		(11)		17,492
Corporate notes	less than 3		41,464		-		(978)		40,486
Asset-backed securities	less than 2		21,656		-		(360)		21,296
Municipal bonds	less than 3		15,635		-		(411)		15,224
Total		$	237,724	$	3	$	(4,557)	$	233,170

At each reporting date, the Company performs an evaluation of impairment to determine if any unrealized losses are the result of credit losses. Impairment is assessed at the individual security level. Factors considered in determining whether a loss resulted from a credit loss or other factors include the Company’s intent and ability to hold the investment until the recovery of its amortized cost basis, the extent to which the fair value is less than the amortized cost basis, the length of time and extent to which fair value has been less than the cost basis, the financial condition of the issuer, any historical failure of the issuer to make scheduled interest or principal payments, any changes to the rating of the security by a rating agency, any adverse legal or regulatory events affecting the issuer or issuer’s industry, and any significant deterioration in economic conditions.

Table of Contents

The credit-related portion of unrealized losses, and any subsequent improvements, are recorded in interest expense in the condensed consolidated statements of operations through an allowance for credit losses. Unrealized gains and losses that are not credit-related are included in accumulated other comprehensive loss. Unrealized losses on available-for-sale debt securities as of September 30, 2023 and December 31, 2022 were not significant and were primarily due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities. Further, the Company does not intend to sell these investments prior to maturity and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis. Accordingly, the Company did not record an allowance for credit losses with respect to these investments as of September 30, 2023 and December 31, 2022.

GLAUKOS Corp [GKOS] Filings
10-Q	[2023-11-01]
10-Q	[2023-08-02]
10-Q	[2023-05-04]
10-K	[2023-02-24]
10-Q	[2022-11-04]
10-Q	[2022-08-05]
10-Q	[2022-05-05]
10-K	[2022-02-28]
10-Q	[2021-11-08]
10-Q	[2021-08-05]
10-Q	[2021-05-06]
10-K	[2021-03-01]
10-Q	[2020-11-05]
10-Q	[2020-08-07]
10-Q	[2020-05-07]
10-K	[2020-03-02]
10-Q	[2019-11-06]
10-Q	[2019-08-08]
10-Q	[2019-05-08]
10-K	[2019-02-28]
10-Q	[2018-11-07]
10-Q	[2018-08-06]
10-Q	[2018-05-09]
10-K	[2018-02-28]
10-Q	[2017-11-08]
10-Q	[2017-08-07]
10-Q	[2017-05-04]
10-K	[2017-03-15]
10-Q	[2016-11-14]
10-Q	[2016-08-04]
10-Q	[2016-05-04]
10-K	[2016-03-15]
10-Q	[2015-11-12]
10-Q	[2015-08-13]
S-1	[2015-05-12]