9 unchanged sentences
Our available capital resources may not be sufficient for us to continue to meet our obligations as they become due over the next twelve months if we cannot improve our operating results or increase our operating cash inflows.
−Removed: In the event these capital resources are not sufficient, we may need to raise additional capital through the sale of equity or debt securities, enter into strategic business collaboration agreements with other companies, seek other funding sources, or sell assets.
−Removed: However, there can be no assurance that we will be able to accomplish any of the foregoing or to do so on favorable terms.
+Added: If these capital resources are not sufficient, we may need to raise additional capital through the sale of equity or debt securities, enter into strategic business collaboration agreements with other companies, seek other funding sources, or sell assets.
+Added: However, there can be no assurance that we will be able to accomplish any of the foregoing or do so on favorable terms.
If we are unable to meet our obligations when they become due over the next twelve months through our available capital resources, or obtain new sources of capital when needed, we may have to delay expenditures, reduce the scope of our manufacturing operations, reduce or eliminate one or more of our development programs, make significant changes to our operating plan, or cease our operations.
Additionally, we are subject to certain financial covenants under the terms of the Amended Credit Agreement.
−Removed: These financial covenants include (i) a trailing twelve months minimum net revenue covenant that we must meet each calendar month, and (ii) a requirement to maintain a minimum level of cash at all times through the term of the agreement.
−Removed: We were in compliance with our financial covenants as of June 30, 2023, however, we determined that we were not in compliance with the trailing twelve months minimum net revenue covenant as of July 31, 2023.
−Removed: We continue to experience unfavorable market conditions, consistent with other companies in our industry, that have led us to lower our revenue projections for the year.
−Removed: As a result, it is unlikely that we will be able to comply with the revenue covenant for the remainder of 2023.
−Removed: Failing to comply with the revenue covenant constitutes an event of default under the Amended Credit Agreement and the lender has the right, but not the obligation, to accelerate our obligations to pay the outstanding balance due and payable under the Term Loan.
−Removed: If we are not able to obtain a waiver from or agree to another accommodation with the lender with respect to the revenue covenant violation, or any future violation, we could be required to repay all or a portion of the outstanding amount under the Term Loan.
−Removed: In that event, we could need to seek other sources of capital and there can be no assurances that we would be able to do so on acceptable terms.
+Added: These financial covenants include (i) a trailing twelve months minimum net revenue covenant that we must meet each calendar month, and (ii) a requirement to maintain a minimum level of cash at all times through the term of the Amended Credit Agreement.
+Added: We were in compliance with our financial covenants as of September 30, 2023;
+Added: however, we continue to experience unfavorable market conditions, like other companies in our industry, which have led us to lower our revenue projections.
+Added: As a result, we believe that we may be unable to comply with the monthly revenue covenant for the twelve-month period following the date on which the financial statements are available for issuance.
+Added: Failing to comply with the monthly revenue covenant would be an event of default under the Amended Credit Agreement and the lender would have the right, but not the obligation, to accelerate our obligations to pay the outstanding balance due and payable under the Term Loan.
+Added: If we violate one or more of our covenants under the Amended Credit Agreement and are not able to obtain a waiver from or agree to an accommodation with the lender with respect to any such violation, we could be required to pay all or a portion of the outstanding amount under the Term Loan.
+Added: In that event, we may need to seek other sources of capital and there can be no assurances that we would be able to do so on acceptable terms.
The uncertainty regarding our ability to continue as a going concern could materially adversely affect our share price and our ability to service our indebtedness, raise new capital or enter into commercial transactions.
2 unchanged sentences
Our indebtedness under the Amended Credit Agreement is secured by substantially all of our assets.
−Removed: We are currently not in compliance with the minimum net revenue covenant contained in the Amended Credit Agreement, which would allow the lenders to accelerate the required repayment of all or a portion of the amounts due, if they choose not to grant us a waiver or agree to another accommodation.
+Added: We may not be able to comply with the financial covenants contained in the Amended Credit Agreement, which would allow the lenders to accelerate the required repayment of all or a portion of the amounts due, if they choose not to grant us a waiver or agree to an accommodation.
In addition, if we do not meet our other covenants under the Amended Credit Agreement, the lender would be able to accelerate the required repayment of amounts due and, if they are not repaid, could foreclose upon the assets securing our obligations with respect to such indebtedness.
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Although we had net income of $3.6 million for the year ended December 31, 2020, we also incurred net losses both prior and subsequent to such time.
−Removed: In addition, during the three and six months ended June 30, 2023, we incurred net losses of $7.2 million and $16.0 million, respectively, and during the three and six months ended June 30, 2022, we incurred net losses of $6.2 million and $11.7 million.
−Removed: While our operating expenses, may fluctuate in the short term, we expect that our operating expenses will continue to increase as we grow our business and we have incurred additional costs in connection with legal, accounting, and other administrative expenses related to operating as a public company.
−Removed: Since our inception, we have financed our operations primarily through revenue from our products, the sale of our equity securities, including through our IPO, and credit agreements.
+Added: In addition, during the three and nine months ended September 30, 2023, we incurred net losses of $10.2 million and $26.1 million, respectively, and during the three and nine months ended September 30, 2022, we incurred net losses of $22.5 million and $34.2 million.
+Added: While our operating expenses may fluctuate in the short term, we expect that our operating expenses will continue to increase as we grow our business.
+Added: We have also incurred additional costs in connection with legal, accounting, and other administrative expenses related to operating as a public company.
+Added: Since our inception, we have financed our operations primarily through revenue from our products, the sale of our equity securities, including through our IPO and Offerings, and credit agreements.
While our revenue has grown in recent years, if our revenue declines or fails to grow at a rate sufficient to offset increases in our operating expenses, we will not be able to achieve and maintain profitability in future periods.
6 unchanged sentences
and THP IV Affiliates Fund, LLC, controls 62.9% of the voting power of our outstanding common stock), which may be sold only in compliance with certain limitations.
−Removed: As of June 30, 2023, we have 28,341,302 shares of common stock outstanding, substantially all of which are held by directors, executive officers, and other affiliates and will be subject to volume, manner of sale, and other limitations under Rule 144.
+Added: In addition, in October of 2023, the Company filed a registration statement on Form S-1 under the Securities Act registering for resale all shares sold in the PIPE Private Placement.
+Added: As a result, all shares sold in the Offerings are freely tradable subject to the restrictions applicable to affiliates discussed above.
+Added: As of September 30, 2023, we have 40,727,780 shares of common stock outstanding, substantially all of which are held by directors, executive officers, and other affiliates and will be subject to volume, manner of sale, and other limitations under Rule 144.
Registration of any of these outstanding shares of common stock would result in such shares becoming freely tradable without compliance with Rule 144 upon effectiveness of the registration statement.
2 unchanged sentences
In addition, shares of our common stock that are issued pursuant to our equity incentive plans and our Employee Stock Purchase Plan (ESPP) will become eligible for sale in the public market, subject to provisions relating to various vesting agreements, lock-up agreements, and Rule 144, as applicable.
−Removed: As of June 30, 2023, there were 312,174, 1,620,882 and 2,372,962 shares of common stock reserved for issuance pursuant to outstanding stock option awards under the 2016 Stock Plan, as amended (2016 Plan), the 2020 Equity Incentive Plan, as amended (2020 Plan) and the 2021 Equity Incentive Plan (2021 Plan), respectively.
+Added: As of September 30, 2023, there were 312,174, 1,617,953 and 2,319,091 shares of common stock reserved for issuance pursuant to outstanding stock option awards under the 2016 Stock Plan, as amended (2016 Plan), the 2020 Equity Incentive Plan, as amended (2020 Plan), and the 2021 Equity Incentive Plan (2021 Plan), respectively.
In addition, the 2021 Plan and the ESPP provide for annual automatic increases in the number of shares reserved thereunder.
8 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.