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
Our common stock has been listed on the Nasdaq Global Select Market under the symbol “LUNG” since October 1, 2020. Prior to this date, there was no public market for our common stock.
Holders of Common Stock
As of March 4, 2021, there were approximately 358 holders of record of our common stock. The actual number of stockholders is greater than this number of holders of record and includes stockholders who are beneficial owners but whose shares are held in the street name by brokers and other nominees.
Dividend Policy
We currently intend to retain all available funds and any future earnings to fund the development and expansion of our business, and therefore we do not anticipate declaring or paying any cash dividends in the foreseeable future. Any future determination regarding the declaration and payment of dividends, if any, will be at the discretion of our board of directors and will depend on then-existing conditions, including our financial condition, operating results, contractual restrictions, capital requirements, business prospects and other factors our board of directors may deem relevant.
Recent Sales of Unregistered Securities
From January 1, 2020 through October 5, 2020, the date of closing of our IPO, we granted stock options and stock awards to employees, directors and consultants under our 2010 Equity Incentive plan, 2020 Stock Plan, and 2020 Equity Incentive Plan covering an aggregate of 1,416,271 shares of common stock, at a weighted average exercise price of $6.36 per share pursuant to our 2010 Equity Incentive plan, 2002 Stock Plan, and 2020 Equity Incentive Plan.
From January 1, 2020 through October 5, 2020, the date of closing of our IPO, we issued an aggregate of 1,711,621 shares of our common stock at a weighted-average purchase price of $1.55 per share to employees, directors and consultants for aggregate proceeds to us of approximately $2.7 million upon the exercise of stock options.
The offers, sales and issuances of the securities described above were deemed to be exempt from registration under Rule 701 promulgated under the Securities Act as transactions under compensatory benefit plans and contracts relating to compensation.
Use of Proceeds from Initial Public Offering
On September 30, 2020, our registration statement on Form S-1 (File No. 333-248635) relating to our initial public offering (“IPO”) of common stock became effective. The IPO closed on October 5, 2020 at which time we issued 11,500,000 shares of our common stock at a price of $19.00 per share, which included the issuance of shares in connection with the exercise by the underwriters of their option to purchase up to 1,500,000 additional shares. BofA Securities, Inc. and Morgan Stanley & Co. LLC acted as joint lead book-running managers for the IPO. Stifel, Nicolaus & Company, Incorporated, Wells Fargo Securities, LLC and Canaccord Genuity LLC acted lead managers for the IPO. We received an aggregate of $218.5 million gross proceeds, before underwriting discounts, commissions and offering costs, and approximately $201.4 million in net proceeds after deducting underwriting discounts and commissions and offering costs. None of the underwriting discounts and commissions or offering expenses were incurred or paid, directly or indirectly, to (i) our directors or officers or their associates, (ii) persons owning 10% or more of our common stock or (iii) any of our affiliates.
There has been no material change in our planned use of the net proceeds from our IPO as described in our final prospectus filed pursuant to Rule 424(b)(4) under the Securities Act with the SEC on October 1, 2020. No payments were made from our IPO proceeds directly or indirectly to our officers or directors, to persons owning 10% or more
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of any class of our equity securities or to any of our affiliates, other than payments in the ordinary course of business to officers for salaries and to non-employee directors as compensation for service on our board or directors or service on a committee of our board of directors.
Purchases of Equity Securities by the Issuer and Affiliated Purchases
None.
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ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA
You should read the selected historical financial data below in conjunction with Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. The selected financial data set forth below is derived from our audited consolidated financial statements and may not be indicative of future operating results.
Years Ended December 31,
2020 2019 2018
(in thousands, except share and per share amounts)
Consolidated Statements of Operations Data:
Revenue $ 32,733 $ 32,595 $ 20,004
Cost of goods sold 11,531 10,181 7,718
Gross profit 21,202 22,414 12,286
Operating expenses:
Research and development 7,460 6,049 6,991
Selling, general and administrative 46,074 34,203 20,347
Total operating expenses 53,534 40,252 27,338
Loss from operations (32,332) (17,838) (15,052)
Interest income 213 432 21
Interest expense (3,181) (2,317) (2,520)
Other income (expense), net 3,282 (617) (916)
Net loss before tax (32,018) (20,340) (18,467)
Income tax expense 213 363 12
Net loss $ (32,231) $ (20,703) $ (18,479)
Net loss per share attributable to common stockholders, basic and diluted $ (3.16) $ (11.66) $ (11.03)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 10,184,841 1,776,110 1,674,779
As of December 31,
2020 2019 2018
(in thousands)
Consolidated Balance Sheet Data:
Cash, cash equivalents and short-term marketable securities $ 231,561 $ 28,347 $ 4,124
Working capital (1)
237,463 26,910 3,236
Total assets 263,708 53,533 15,013
Term loan 16,804 14,965 14,937
Credit agreement 564 — —
Total liabilities 37,574 35,572 41,804
Convertible preferred stock — 205,339 140,535
Accumulated deficit (242,734) (210,503) (189,800)
Total stockholders’ (deficit) equity 226,134 (187,378) (167,326)
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(1) We define working capital as current assets less current liabilities. See our audited consolidated financial statements and the related notes included elsewhere in this Annual Report on Form 10-K for further details regarding our current assets and current liabilities as of December 31, 2020 and 2019.
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