Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Market Information
The market in which our common stock is traded is the NASDAQ Global Select Market under the symbol “IRTC”. The following table sets forth the high and low sales price per share of our common stock for each full quarterly period within the two most recent fiscal years as reported on The NASDAQ Global Select Market:
2020 2019
High Low High Low
First Quarter $ 101.40 $ 57.79 $ 97.34 $ 65.44
Second Quarter $ 131.18 $ 72.13 $ 80.48 $ 66.64
Third Quarter $ 238.11 $ 111.60 $ 83.77 $ 68.59
Fourth Quarter $ 261.17 $ 180.80 $ 72.97 $ 61.00
Holders of Common Stock
As of February 19, 2021 there were 22 holders of record of our common stock. Certain shares are held in “street” name and, accordingly, the number of beneficial owners of such shares is not known or included in the foregoing number.
Dividend Policy
We have never declared or paid cash dividends on our capital stock. We intend to retain all available funds and any future earnings, if any, to fund the development and expansion of our business and we do not anticipate paying any cash dividends in the foreseeable future. Any future determination related to dividend policy will be made at the discretion of our board of directors.
Performance Graph
This graph is not “soliciting material,” is not deemed “filed” with the SEC and is not to be incorporated by reference into any filing of iRhythm Technologies, Inc. under the Securities Act or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.
The following graph shows the total stockholder return of an investment of $100 in cash at market close on October 20, 2016 (the first day of trading of our common stock), through December 31, 2020 for (i) our common stock, (ii) the NASDAQ Composite Index (U.S.) and (iii) the NASDAQ Biotechnology Index. Pursuant to applicable Securities and Exchange Commission rules, all values assume reinvestment of the full amount of all dividends, however no dividends have been declared on our common stock to date. The stockholder return shown on the graph below is not necessarily indicative of future performance, and we do not make or endorse any predictions as to future stockholder returns.
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10/20/2016 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020
iRhythm Technologies, Inc. $ 100 $ 115 $ 215 $ 267 $ 261 $ 911
NASDAQ Composite $ 100 $ 103 $ 132 $ 127 $ 171 $ 246
NASDAQ Biotechnology $ 100 $ 98 $ 119 $ 108 $ 134 $ 168
Issuer Purchases of Equity Securities
None
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Item 6. Selected Consolidated Financial Data.
The information set forth below should be read in conjunction with "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and our financial statements and related notes included elsewhere in this Annual Report on Form 10-K. The selected consolidated financial data in this section are not intended to replace our financial statements. The statement of operations data for the years ended December 31, 2020, 2019, and 2018, and the balance sheet data at December 31, 2020, and 2019 are derived from our audited consolidated financial statements included elsewhere in this Annual Report on Form 10-K. The statement of operations data for the years ended December 31, 2017 and 2016 and the balance sheet data at December 31, 2018, 2017, and 2016 are derived from our consolidated financial statements, which are not included herein. The financial data included in this report are historical, are not necessarily indicative of results to be expected in any future period, and reflect the revisions which are discussed in Note 1 “Organization and Description of Business” within our consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.
Year Ended December 31,
(in thousands, except share and per share data)
2020 2019 2018 2017 2016 (1)
Consolidated Statements of Operations Data:
Revenue $ 265,166 $ 214,552 $ 147,277 $ 99,129 $ 64,551
Cost of revenue (2)
70,277 52,485 38,795 28,203 20,891
Gross profit 194,889 162,067 108,482 70,926 43,660
Operating expenses:
Research and development (2)
41,329 37,299 20,860 13,265 7,218
Selling, general and administrative (2)
197,233 179,523 133,313 85,252 51,916
Total operating expense (2)
238,562 216,822 154,173 98,517 59,134
Loss from operations (43,673) (54,755) (45,691) (27,591) (15,474)
Interest expense (1,519) (1,643) (3,115) (3,386) (3,248)
Other income (expense), net (1)
1,591 1,895 1,501 1,237 (2,073)
Loss on extinguishment of debt — — (3,029) — —
Loss before income taxes (1)
(43,601) (54,503) (50,334) (29,740) (20,795)
Income tax provision 229 65 44 — —
Net loss $ (43,830) $ (54,568) $ (50,378) $ (29,740) $ (20,795)
Net loss per common share, basic and diluted $ (1.58) $ (2.16) $ (2.11) $ (1.31) $ (3.93)
Weighted-average shares, basic and diluted 27,754,404 25,265,918 23,885,858 22,627,327 5,285,847
(1) As disclosed in Note 1 to our consolidated financial statements included within this Annual Report on Form 10-K, we revised certain prior period financial information for immaterial errors in our accounting for revenues, contractual allowances, allowance for doubtful accounts and certain other items. The revision for the year ended December 31, 2016, which consolidated financial statements are not included within this Annual Report on Form 10-K, resulted in an increase in revenue by $0.5 million and an increase in selling, general and administrative expense by $0.4 million, resulting in net loss being decreased by $0.1 million. The revision for the year ended December 31, 2017, which consolidated financial statements are not included within this Annual Report on Form 10-K, resulted in an increase in revenue by $0.6 million, increase in cost of revenue by $0.5 million, decrease in research and development expense by $0.1 million and an increase in selling, general and administrative expense by $0.5 million, resulting in net loss being decreased by $0.3 million.
(2) Includes employee stock-based compensation as follows, which reflect revisions as described in (1) above:
Year Ended December 31,
2020 2019 2018 2017 (1)
2016 (1)
Cost of revenue $ 27 $ 658 $ 193 $ 589 $ 25
Research and development 7,727 4,462 3,057 1,619 271
Selling, general and administrative 33,761 21,121 13,079 7,544 1,946
Total stock-based compensation $ 41,515 $ 26,241 $ 16,329 $ 9,752 $ 2,242
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As of December 31,
2020 2019 2018 2017 (1)
2016 (1)
Consolidated Balance Sheets Data:
Cash and cash equivalents $ 88,628 $ 20,462 $ 20,023 $ 8,671 $ 51,643
Working capital 312,160 120,726 73,961 98,376 105,872
Total assets 511,739 306,212 117,523 133,379 138,635
Operating lease liabilities, noncurrent portion 81,293 85,748 — — —
Notes payable 33,006 34,933 34,899 33,978 32,227
Accumulated deficit (304,684) (260,393) (205,825) (156,801) (127,061)
Total stockholders' equity $ 341,612 $ 135,409 $ 52,137 $ 79,341 $ 93,041
(1) As disclosed in Note 1 to our consolidated financial statements included within this Annual Report on Form 10-K, we revised certain prior period financial information for immaterial errors in our accounting for revenues, contractual allowances, allowance for doubtful accounts and certain other items. The impact of the revision on our 2017 and 2016 consolidated balance sheets not included within this Annual Report on Form 10-K, was an decrease of $0.3 million and an increase of $0.5 million to working capital, an increase of $0.3 million and an increase of $0.5 million to total assets, an increase of $0.2 million and a decrease of $0.1 million to accumulated deficit and a decrease of $0.2 million and an increase of $0.5 million to stockholders’ equity as of December 31, 2017 and 2016, respectively.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.