10-Q 1 nvro-20220630.htm 10-Q 10-Q
2021-04-30Q20001444380http://fasb.org/us-gaap/2022#AccountingStandardsUpdate202006Member--12-31http://fasb.org/us-gaap/2022#OtherLiabilitiesCurrent2031-06-30http://fasb.org/us-gaap/2022#OtherLiabilitiesCurrentfalsehttp://fasb.org/us-gaap/2022#AccountingStandardsUpdate202006Memberhttp://fasb.org/us-gaap/2022#AccountingStandardsUpdate202006Member0001444380us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001444380nvro:TwoPointSevenFivePercentageConvertibleSeniorNotesDue2025Member2022-01-012022-06-300001444380nvro:FacilityLeaseAgreementThreeMember2022-01-012022-06-300001444380us-gaap:AccountingStandardsUpdate202006Member2022-06-300001444380nvro:RedwoodOfficeAgreementMember2022-01-012022-06-300001444380us-gaap:CommonStockMember2022-03-310001444380nvro:BostonScientificCorporationMember2018-04-270001444380us-gaap:RetainedEarningsMember2021-01-012021-03-310001444380us-gaap:AccountingStandardsUpdate202006Member2022-01-010001444380nvro:TwoThousandTwentyFiveNotesMembersrt:RestatementAdjustmentMemberus-gaap:AccountingStandardsUpdate202006Member2022-01-0100014443802021-06-300001444380us-gaap:WarrantMember2021-01-012021-06-300001444380us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateNoteSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001444380us-gaap:FairValueInputsLevel2Membernvro:AgencyBondsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001444380us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateNoteSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001444380us-gaap:EmployeeStockMember2022-04-012022-06-300001444380nvro:BostonScientificCorporationMember2016-12-0900014443802022-01-012022-03-310001444380us-gaap:AdditionalPaidInCapitalMember2021-12-310001444380us-gaap:SalesRevenueNetMembernvro:MajorCustomersMemberus-gaap:CustomerConcentrationRiskMember2021-04-012021-06-300001444380nvro:TwoThousandTwentyOneAndTwoThousandTwentyFiveNotesMember2022-04-012022-06-300001444380us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001444380us-gaap:CommonStockMember2022-04-012022-06-300001444380srt:ScenarioPreviouslyReportedMember2021-12-310001444380us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001444380us-gaap:WarrantMembersrt:MinimumMembernvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMember2020-04-300001444380us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:US2021-01-012021-06-300001444380us-gaap:CommonStockMember2022-01-012022-03-310001444380us-gaap:FairValueMeasurementsRecurringMember2022-06-300001444380us-gaap:AdditionalPaidInCapitalMember2021-03-310001444380us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001444380us-gaap:ConstructionInProgressMember2021-12-3100014443802021-01-012021-03-3100014443802021-12-310001444380us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001444380us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001444380us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001444380us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001444380us-gaap:RetainedEarningsMember2022-06-300001444380nvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMembernvro:OneHundredThirtyPercentApplicableConversionPriceMember2020-04-012020-04-3000014443802021-04-012021-06-300001444380us-gaap:NonUsMember2021-01-012021-06-300001444380us-gaap:CorporateNoteSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001444380us-gaap:EmployeeStockOptionMember2021-01-012021-06-300001444380us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001444380nvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMembernvro:DebtEquityComponentMember2022-01-012022-06-300001444380us-gaap:LeaseholdImprovementsMember2021-12-310001444380us-gaap:WarrantMember2022-01-012022-06-300001444380us-gaap:FurnitureAndFixturesMember2021-12-310001444380us-gaap:RetainedEarningsMember2022-03-310001444380us-gaap:NonUsMember2021-04-012021-06-300001444380us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001444380srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-01-012022-03-310001444380srt:RestatementAdjustmentMemberus-gaap:AccountingStandardsUpdate202006Member2022-01-010001444380nvro:TwoPointSevenFivePercentageConvertibleSeniorNotesDue2025Member2021-01-012021-12-310001444380nvro:RedwoodOfficeAgreementAdditionalExpansionPremisesMembernvro:FirstAmendmentMember2016-12-310001444380us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001444380us-gaap:CommonStockMember2021-04-012021-06-300001444380nvro:BostonScientificCorporationMember2021-11-012021-11-010001444380us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-3000014443802021-09-300001444380us-gaap:SalesRevenueNetMembernvro:MajorCustomersMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-06-300001444380us-gaap:EmployeeStockMember2021-01-012021-06-300001444380us-gaap:RetainedEarningsMember2021-04-012021-06-3000014443802022-07-260001444380srt:MaximumMembernvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMember2020-04-012020-04-300001444380us-gaap:RestrictedStockMember2021-01-012021-06-300001444380nvro:AgencyBondsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001444380nvro:TwoThousandTwentyOneAndTwoThousandTwentyFiveNotesMember2022-01-012022-06-300001444380nvro:DebtLiabilityComponentMembernvro:TwoThousandTwentyOneNotesAndConvertibleNotesMember2021-06-012021-06-010001444380us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001444380nvro:RedwoodOfficeAgreementAdditionalExpansionPremisesMembernvro:FirstAmendmentMember2022-01-012022-06-3000014443802020-12-310001444380country:CR2020-08-310001444380us-gaap:RestrictedStockMember2022-01-012022-06-300001444380us-gaap:CommonStockMember2020-12-3100014443802021-03-310001444380us-gaap:ComputerEquipmentMember2021-12-310001444380us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:US2022-04-012022-06-300001444380us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001444380us-gaap:FurnitureAndFixturesMember2022-06-300001444380country:US2021-04-012021-06-300001444380us-gaap:ConvertibleDebtSecuritiesMember2021-01-012021-06-300001444380nvro:TwoPointSevenFivePercentageConvertibleSeniorNotesDue2025Member2021-12-310001444380us-gaap:RetainedEarningsMember2022-01-012022-03-310001444380us-gaap:AgencySecuritiesMember2021-12-310001444380us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001444380us-gaap:CommonStockMember2021-12-310001444380us-gaap:LeaseholdImprovementsMember2022-06-300001444380us-gaap:CorporateNoteSecuritiesMember2022-06-300001444380us-gaap:AccountingStandardsUpdate202006Member2022-01-012022-06-300001444380us-gaap:RetainedEarningsMember2021-12-310001444380us-gaap:RetainedEarningsMember2022-04-012022-06-300001444380nvro:TwoPointSevenFivePercentageConvertibleSeniorNotesDue2025Member2022-06-300001444380srt:CumulativeEffectPeriodOfAdoptionAdjustmentMembersrt:RestatementAdjustmentMemberus-gaap:AccountingStandardsUpdate202006Member2022-01-0100014443802022-04-012022-06-3000014443802021-04-3000014443802022-01-012022-06-300001444380us-gaap:CommercialPaperMember2021-12-310001444380nvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMember2022-06-300001444380us-gaap:NonUsMember2022-01-012022-06-300001444380nvro:PatentInfringementMember2022-06-300001444380us-gaap:AdditionalPaidInCapitalMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-310001444380us-gaap:USTreasuryBondSecuritiesMember2022-06-300001444380us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001444380us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001444380us-gaap:EmployeeStockMember2022-06-300001444380srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-310001444380us-gaap:USTreasuryBondSecuritiesMember2021-12-310001444380us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001444380us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001444380nvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMember2022-01-012022-06-300001444380nvro:RedwoodOfficeAgreementAdditionalExpansionPremisesMembernvro:FirstAmendmentMember2016-12-012016-12-310001444380us-gaap:CommonStockMember2022-06-300001444380nvro:DebtLiabilityComponentMembernvro:TwoThousandTwentyOneNotesAndConvertibleNotesMember2021-06-010001444380us-gaap:CorporateNoteSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001444380us-gaap:ConstructionInProgressMember2022-06-300001444380us-gaap:WarrantMembernvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMember2020-04-300001444380us-gaap:SalesRevenueNetMembernvro:MajorCustomersMemberus-gaap:CustomerConcentrationRiskMember2022-04-012022-06-300001444380us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:US2022-01-012022-06-300001444380nvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMember2020-04-300001444380nvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMember2020-04-012020-04-300001444380us-gaap:USTreasuryBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-3000014443802021-01-012021-06-300001444380nvro:BostonScientificCorporationMember2021-09-300001444380us-gaap:EmployeeStockMember2021-04-012021-06-300001444380nvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMember2021-06-300001444380us-gaap:RetainedEarningsMember2021-03-310001444380nvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMembernvro:DebtEquityComponentMember2021-12-3100014443802022-06-300001444380us-gaap:RetainedEarningsMember2021-06-300001444380us-gaap:AdditionalPaidInCapitalMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-01-012022-03-310001444380us-gaap:EmployeeStockOptionMember2022-01-012022-06-300001444380nvro:PainfulDiabeticNeuropathyMember2022-04-012022-06-300001444380us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-310001444380nvro:MajorCustomersMemberus-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMember2021-01-012021-12-310001444380us-gaap:USTreasuryBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001444380us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001444380us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001444380us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001444380us-gaap:EmployeeStockMember2022-01-012022-06-300001444380us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-01-012022-03-310001444380us-gaap:CommonStockMember2021-06-300001444380us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001444380nvro:DebtLiabilityComponentMembernvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMember2022-06-300001444380nvro:FacilityLeaseAgreementThreeMembernvro:FirstAmendmentMember2021-10-012021-10-310001444380us-gaap:CreditConcentrationRiskMembernvro:MajorCustomersMemberus-gaap:AccountsReceivableMember2022-01-012022-06-300001444380us-gaap:CorporateNoteSecuritiesMember2021-12-310001444380us-gaap:NonUsMember2022-04-012022-06-300001444380us-gaap:EquipmentMember2021-12-310001444380us-gaap:SalesRevenueNetMembernvro:MajorCustomersMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-06-300001444380us-gaap:AdditionalPaidInCapitalMember2020-12-310001444380country:US2022-01-012022-06-3000014443802022-03-310001444380us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001444380us-gaap:AdditionalPaidInCapitalMember2021-06-300001444380us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001444380country:US2022-04-012022-06-300001444380us-gaap:AdditionalPaidInCapitalMember2022-03-310001444380us-gaap:WarrantMembersrt:MaximumMembernvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMember2020-04-300001444380us-gaap:ComputerEquipmentMember2022-06-300001444380us-gaap:EquipmentMember2022-06-300001444380nvro:DebtLiabilityComponentMembernvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMember2021-12-310001444380nvro:TwoThousandTwentyOneAndTwoThousandTwentyFiveNotesMember2021-04-012021-06-300001444380us-gaap:RetainedEarningsMember2020-12-310001444380nvro:RedwoodOfficeAgreementMember2015-03-012015-03-310001444380us-gaap:CommonStockMember2021-03-310001444380us-gaap:CommercialPaperMember2022-06-300001444380us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001444380nvro:DebtLiabilityComponentMembernvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMember2022-01-012022-06-300001444380country:CR2020-08-012020-08-310001444380nvro:BostonScientificCorporationMemberus-gaap:SubsequentEventMember2022-08-012022-08-010001444380us-gaap:AdditionalPaidInCapitalMember2022-06-300001444380us-gaap:CommonStockMember2021-01-012021-03-310001444380nvro:RedwoodOfficeAgreementMember2015-03-310001444380us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:US2021-04-012021-06-300001444380country:US2021-01-012021-06-300001444380us-gaap:ConvertibleDebtSecuritiesMember2022-01-012022-06-300001444380us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001444380nvro:NinetyEightPercentApplicableConversionPriceMembernvro:TwoThousandTwentyFiveNotesAndConvertibleNotesMember2020-04-012020-04-300001444380nvro:TwoThousandTwentyOneAndTwoThousandTwentyFiveNotesMember2021-01-012021-06-300001444380us-gaap:FairValueMeasurementsRecurringMember2021-12-310001444380us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001444380nvro:PainfulDiabeticNeuropathyMember2022-01-012022-06-30iso4217:USDxbrli:sharesxbrli:purenvro:Customerutr:sqftxbrli:sharesutr:Diso4217:USDnvro:Patent

 

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 June 30, 2022

or

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

Commission File Number: 001-36715

Nevro Corp.

(Exact name of registrant as specified in its charter)

 

Delaware

 

56-2568057

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

1800 Bridge Parkway

Redwood City, CA

(Address of principal executive offices)

94065

(Zip Code)

(650) 251-0005

(Registrant’s telephone number, including area code)

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

 

Title of each class

 

Trading Symbol

 

Name of each exchange on which registered

Common Stock, $0.001 par value per share

 

NVRO

 

The 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 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 July 26, 2022, there were 35,387,839 shares of the registrant’s common stock, par value $0.001 per share, outstanding.

 


 

Nevro Corp.

TABLE OF CONTENTS

 

 

 

Page

 

 

 

PART I—FINANCIAL INFORMATION

 

3

 

 

 

Item 1. Condensed Consolidated Financial Statements (unaudited)

 

3

 

 

 

Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021

 

3

 

 

 

Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2022 and 2021

 

4

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2022 and 2021

 

5

 

 

 

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021

 

6

 

 

 

Notes to Condensed Consolidated Financial Statements

 

7

 

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

20

 

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

32

 

 

 

Item 4. Controls and Procedures

 

32

 

 

 

PART II—OTHER INFORMATION

 

33

 

 

 

Item 1. Legal Proceedings

 

33

 

 

 

Item 1A. Risk Factors

 

33

 

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

33

 

 

 

Item 3. Defaults Upon Senior Securities

 

33

 

 

 

Item 4. Mine Safety Disclosures

 

33

 

 

 

Item 5. Other Information

 

33

 

 

 

Item 6. Exhibits

 

34

 

 

 

SIGNATURES

 

36

 

2


 

PART I—FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

Nevro Corp.

Condensed Consolidated Balance Sheets

(unaudited)

(in thousands, except share and per share data)

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

109,010

 

 

$

34,710

 

Short-term investments

 

 

201,813

 

 

 

327,317

 

Accounts receivable, net of allowance for doubtful accounts of $1,139 and $1,385 at
   June 30, 2022 and December 31, 2021, respectively

 

 

66,903

 

 

 

70,475

 

Inventories

 

 

93,520

 

 

 

93,517

 

Prepaid expenses and other current assets

 

 

12,056

 

 

 

5,185

 

Total current assets

 

 

483,302

 

 

 

531,204

 

Property and equipment, net

 

 

20,790

 

 

 

20,664

 

Operating lease assets

 

 

15,543

 

 

 

17,577

 

Other assets

 

 

3,675

 

 

 

4,493

 

Restricted cash

 

 

606

 

 

 

606

 

Total assets

 

$

523,916

 

 

$

574,544

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

31,298

 

 

$

31,999

 

Accrued liabilities

 

 

36,421

 

 

 

45,517

 

Other current liabilities

 

 

4,947

 

 

 

4,687

 

Total current liabilities

 

 

72,666

 

 

 

82,203

 

Long-term debt

 

 

186,256

 

 

 

151,310

 

Long-term operating lease liabilities

 

 

12,930

 

 

 

15,402

 

Other long-term liabilities

 

 

22,079

 

 

 

22,013

 

Total liabilities

 

 

293,931

 

 

 

270,928

 

Commitments and contingencies (Note 6)

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

Preferred stock, $0.001 par value, 10,000,000 shares authorized at June 30, 2022
   and December 31, 2021;
zero shares issued and outstanding at June 30, 2022
   and December 31, 2021

 

 

 

 

 

 

Common stock, $0.001 par value, 290,000,000 shares authorized at June 30,
   2022 and December 31, 2021;
36,063,723 and 35,709,570 shares issued at
   June 30, 2022 and December 31, 2021, respectively;
35,380,807 and
   
35,026,654 shares outstanding at June 30, 2022 and
   December 31, 2021, respectively

 

 

35

 

 

 

35

 

Additional paid-in capital

 

 

902,712

 

 

 

928,138

 

Accumulated other comprehensive income (loss)

 

 

(3,249

)

 

 

(364

)

Accumulated deficit

 

 

(669,513

)

 

 

(624,193

)

Total stockholders’ equity

 

 

229,985

 

 

 

303,616

 

Total liabilities and stockholders’ equity

 

$

523,916

 

 

$

574,544

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

3


 

Nevro Corp.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(unaudited)

(in thousands, except share and per share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue

 

$

104,213

 

 

$

102,330

 

 

$

192,055

 

 

$

190,940

 

Cost of revenue

 

 

31,479

 

 

 

32,344

 

 

 

60,229

 

 

 

58,660

 

Gross profit

 

 

72,734

 

 

 

69,986

 

 

 

131,826

 

 

 

132,280

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

12,552

 

 

 

11,869

 

 

 

25,088

 

 

 

23,403

 

Sales, general and administrative

 

 

83,973

 

 

 

73,880

 

 

 

163,298

 

 

 

147,152

 

Total operating expenses

 

 

96,525

 

 

 

85,749

 

 

 

188,386

 

 

 

170,555

 

Loss from operations

 

 

(23,791

)

 

 

(15,763

)

 

 

(56,560

)

 

 

(38,275

)

Interest income

 

 

282

 

 

 

163

 

 

 

425

 

 

 

460

 

Interest expense

 

 

(1,608

)

 

 

(5,704

)

 

 

(3,211

)

 

 

(12,251

)

Other income (expense), net

 

 

368

 

 

 

(88

)

 

 

453

 

 

 

(545

)

Loss before income taxes

 

 

(24,749

)

 

 

(21,392

)

 

 

(58,893

)

 

 

(50,611

)

Provision for income taxes

 

 

241

 

 

 

198

 

 

 

422

 

 

 

540

 

Net loss

 

 

(24,990

)

 

 

(21,590

)

 

 

(59,315

)

 

 

(51,151

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

Changes in foreign currency translation adjustment

 

 

(1,411

)

 

 

62

 

 

 

(1,603

)

 

 

(250

)

Changes in unrealized gains on short-term investments, net

 

 

(261

)

 

 

28

 

 

 

(1,282

)

 

 

(119

)

Net change in other comprehensive loss

 

 

(1,672

)

 

 

90

 

 

 

(2,885

)

 

 

(369

)

Comprehensive loss

 

$

(26,662

)

 

$

(21,500

)

 

$

(62,200

)

 

$

(51,520

)

Net loss per share, basic and diluted

 

$

(0.71

)

 

$

(0.62

)

 

$

(1.69

)

 

$

(1.47

)

Weighted average number of common shares used to
   compute basic and diluted net loss per share

 

 

35,317,766

 

 

 

34,808,389

 

 

 

35,196,488

 

 

 

34,721,551

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

4


 

Nevro Corp.

Condensed Consolidated Statements of Stockholders’ Equity

(unaudited)

(in thousands, except share data)

 

For the three and six months ended June 30, 2022

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Accumulated

 

 

Total

 

 

 

Common Stock

 

 

Paid-In

 

 

Accumulated

 

 

Other Comprehensive

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Income (Loss)

 

 

Equity

 

Balances at December 31, 2021

 

 

35,026,654

 

 

$

35

 

 

$

928,138

 

 

$

(624,193

)

 

$

(364

)

 

$

303,616

 

Adjustments from adoption of ASU 2020-06

 

 

 

 

 

 

 

 

(48,340

)

 

 

13,995

 

 

 

 

 

 

(34,345

)

Exercise of common stock options

 

 

10,642

 

 

 

 

 

 

545

 

 

 

 

 

 

 

 

 

545

 

Issuance of common stock upon release of restricted stock units

 

 

263,412

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares withheld for tax obligations

 

 

(107,257

)

 

 

 

 

 

(7,298

)

 

 

 

 

 

 

 

 

(7,298

)

Stock based compensation

 

 

 

 

 

 

 

 

13,406

 

 

 

 

 

 

 

 

 

13,406

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(34,325

)

 

 

 

 

 

(34,325

)

Change in other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,213

)

 

 

(1,213

)

Balances at March 31, 2022

 

 

35,193,451

 

 

 

35

 

 

 

886,451

 

 

 

(644,523

)

 

 

(1,577

)

 

 

240,386

 

Exercise of common stock options

 

 

5,100

 

 

 

 

 

 

230

 

 

 

 

 

 

 

 

 

230

 

Issuance of common stock upon release of restricted stock units

 

 

109,742

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares withheld for tax obligations

 

 

(12,323

)

 

 

 

 

 

(759

)

 

 

 

 

 

 

 

 

(759

)

Issuance of common stock under employee stock purchase plan

 

 

84,837

 

 

 

 

 

 

3,414

 

 

 

 

 

 

 

 

 

3,414

 

Stock based compensation

 

 

 

 

 

 

 

 

13,376

 

 

 

 

 

 

 

 

 

13,376

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(24,990

)

 

 

 

 

 

(24,990

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,672

)

 

 

(1,672

)

Balances at June 30, 2022

 

 

35,380,807

 

 

$

35

 

 

$

902,712

 

 

$

(669,513

)

 

$

(3,249

)

 

$

229,985

 

 

For the three and six months ended June 30, 2021

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Accumulated

 

 

Total

 

 

 

Common Stock

 

 

Paid-In

 

 

Accumulated

 

 

Other Comprehensive

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Income (Loss)

 

 

Equity

 

Balances at December 31, 2020

 

 

34,583,064

 

 

$

35

 

 

$

880,660

 

 

$

(492,833

)

 

$

598

 

 

$

388,460

 

Exercise of common stock options

 

 

28,152

 

 

 

 

 

 

1,331

 

 

 

 

 

 

 

 

 

1,331

 

Issuance of common stock upon release of restricted stock units

 

 

99,389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares withheld for tax obligations

 

 

(17,886

)

 

 

 

 

 

(2,801

)

 

 

 

 

 

 

 

 

(2,801

)

Stock based compensation

 

 

 

 

 

 

 

 

9,235

 

 

 

 

 

 

 

 

 

9,235

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(29,561

)

 

 

 

 

 

(29,561

)

Change in other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(459

)

 

 

(459

)

Balances at March 31, 2021

 

 

34,692,719

 

 

$

35

 

 

$

888,425

 

 

$

(522,394

)

 

$

139

 

 

$

366,205

 

Exercise of common stock options

 

 

5,998

 

 

 

 

 

 

305

 

 

 

 

 

 

 

 

 

305

 

Issuance of common stock upon release of restricted stock units

 

 

133,609

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares withheld for tax obligations

 

 

(15,142

)

 

 

 

 

 

(2,314

)

 

 

 

 

 

 

 

 

(2,314

)

Issuance of common stock under employee stock purchase plan

 

 

37,753

 

 

 

 

 

 

4,648

 

 

 

 

 

 

 

 

 

4,648

 

Issuance of common stock from conversion of convertible senior notes due 2021

 

 

682,912

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Exercise of bond hedge for convertible senior notes due 2021

 

 

(682,916

)

 

 

(1

)

 

 

1

 

 

 

 

 

 

 

 

 

 

Stock based compensation

 

 

 

 

 

 

 

 

11,032

 

 

 

 

 

 

 

 

 

11,032

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(21,590

)

 

 

 

 

 

(21,590

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

90

 

 

 

90

 

Balances at June 30, 2021

 

 

34,854,933

 

 

$

35

 

 

$

902,096

 

 

$

(543,984

)

 

$

229

 

 

$

358,376

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

5


 

Nevro Corp.

Condensed Consolidated Statements of Cash Flows

(unaudited)

(in thousands)

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$

(59,315

)

 

$

(51,151

)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

 

 

Depreciation and amortization

 

 

3,056

 

 

 

2,250

 

Amortization of operating lease assets

 

 

2,034

 

 

 

1,838

 

Stock-based compensation expense

 

 

26,785

 

 

 

20,271