0001558370-23-007571 | 10-Q | XBRL Viewer | Harmony Biosciences Holdings INC

Three Months Ended March 31,

Stock options, SARs, and RSUs to purchase common stock

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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2023	Apr. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-39450
Entity Registrant Name	HARMONY BIOSCIENCES HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-2279923
Entity Address, Address Line One	630 W.
Entity Address, Address Line Two	Germantown Pike
Entity Address, Address Line Three	Suite 215
Entity Address, City or Town	Plymouth Meeting
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19462
City Area Code	484
Local Phone Number	539-9800
Title of 12(b) Security	Common Stock, par value $0.00001 value per share
Trading Symbol	HRMY
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		59,954,618
Entity Central Index Key	0001802665
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 287,962	$ 243,784
Investments, short-term	55,916	79,331
Trade receivables, net	52,575	54,740
Inventory, net	4,090	4,297
Prepaid expenses	11,399	9,347
Other current assets	6,145	8,786
Total current assets	418,087	400,285
NONCURRENT ASSETS:
Property and equipment, net	470	573
Restricted cash	750	750
Investments, long-term	48,538	22,568
Intangible assets, net	154,992	160,953
Deferred tax asset	89,385	85,943
Other noncurrent assets	2,870	2,798
Total noncurrent assets	297,005	273,585
TOTAL ASSETS	715,092	673,870
CURRENT LIABILITIES:
Trade payables	6,414	3,786
Accrued compensation	5,691	11,532
Accrued expenses	56,810	59,942
Current portion of long-term debt	6,500	2,000
Other current liabilities	9,948	1,624
Total current liabilities	85,363	78,884
NONCURRENT LIABILITIES:
Long-term debt, net	185,063	189,647
Other noncurrent liabilities	1,625	2,501
Total noncurrent liabilities	186,688	192,148
TOTAL LIABILITIES	272,051	271,032
COMMITMENTS AND CONTINGENCIES (Note 12)
STOCKHOLDERS' EQUITY:
Common stock-$0.00001 par value; 500,000,000 shares authorized at March 31, 2023 and December 31, 2022, respectively; 59,954,618 shares and 59,615,731 issued and outstanding at March 31, 2023 and December 31, 2022, respectively	1	1
Additional paid in capital	685,716	675,118
Accumulated other comprehensive income (loss)	(31)	(151)
Accumulated deficit	(242,645)	(272,130)
TOTAL STOCKHOLDERS' EQUITY	443,041	402,838
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 715,092	$ 673,870

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	59,954,618	59,615,731
Common stock, shares outstanding	59,954,618	59,615,731

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Net product revenues	$ 119,126	$ 85,313
Revenue from Contract with Customer, Product and Service [Extensible Enumeration]	us-gaap:ProductMember	us-gaap:ProductMember
Cost of product sold	$ 20,780	$ 14,716
Cost, Product and Service [Extensible Enumeration]	us-gaap:ProductMember	us-gaap:ProductMember
Gross profit	$ 98,346	$ 70,597
Operating expenses:
Research and development	13,289	7,578
Sales and marketing	22,572	17,583
General and administrative	22,062	17,880
Total operating expenses	57,923	43,041
Operating income	40,423	27,556
Other income (expense), net	2	(2)
Interest expense, net	(2,645)	(4,169)
Income before income taxes	37,780	23,385
Income tax expense	(8,295)	(1,900)
Net income	29,485	21,485
Unrealized gain on investments	120
Comprehensive income	$ 29,605	$ 21,485
EARNINGS PER SHARE:
Basic	$ 0.49	$ 0.36
Diluted	$ 0.48	$ 0.35
Weighted average number of shares of common stock - basic	59,732,157	58,908,526
Weighted average number of shares of common stock - diluted	61,221,511	60,586,875

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional paid-in capital	Accumulated other comprehensive income (loss )	Accumulated Deficit	Total
Beginning balance at Dec. 31, 2021	$ 1	$ 640,104		$ (453,598)	$ 186,507
Beginning balance, shares at Dec. 31, 2021	58,825,769
Net income				21,485	21,485
Exercise of stock options		1,883			1,883
Exercise of stock options, Shares	204,379
Stock-based compensation		4,628			4,628
Ending balance at Mar. 31, 2022	$ 1	646,615		(432,113)	214,503
Ending balance, shares at Mar. 31, 2022	59,030,148
Beginning balance at Dec. 31, 2022	$ 1	675,118	$ (151)	(272,130)	402,838
Beginning balance, shares at Dec. 31, 2022	59,615,731
Net income				29,485	29,485
Unrealized loss on investments			120		120
Exercise of options and restricted stock units		3,395			$ 3,395
Exercise of options and restricted stock units, Shares	338,887
Exercise of stock options, Shares					324,301
Stock-based compensation		7,203			$ 7,203
Ending balance at Mar. 31, 2023	$ 1	$ 685,716	$ (31)	$ (242,645)	$ 443,041
Ending balance, shares at Mar. 31, 2023	59,954,618

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 29,485	$ 21,485
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	103	117
Intangible amortization	5,961	5,082
Stock-based and employee stock purchase compensation expense	7,203	4,628
Stock appreciation rights market adjustment	(642)	268
Debt issuance costs amortization	416	412
Deferred taxes	(3,442)
Amortization of premiums and accretion of discounts on Investment securities	(636)
Other non-cash expenses	369	385
Change in operating assets and liabilities:
Trade receivables	2,165	(3,290)
Inventory	207	(165)
Prepaid expenses and other assets	592	(2,235)
Trade payables	2,628	5,903
Accrued expenses and other current liabilities	(1,850)	(3,586)
Other non-current liabilities		(152)
Net cash provided by operating activities	42,559	28,852
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities	(47,776)
Proceeds from maturities and sales of investment securities	45,986
Purchase of property and equipment		(45)
Milestone payments		(40,000)
Net cash used in investing activities	(1,790)	(40,045)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal repayment of long term debt	(500)	(500)
Proceeds from exercised options	3,909	1,883
Net cash provided by financing activities	3,409	1,383
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	44,178	(9,810)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH-Beginning of period	244,534	235,059
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH-End of period	288,712	225,249
Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for interest	$ 5,017	$ 3,829

Organization and Description of Business

3 Months Ended

Mar. 31, 2023

Organization and Description of Business

Organization and Description of Business

1. ORGANIZATION AND DESCRIPTION OF BUSINESS

The Company

Harmony Biosciences Holdings, Inc., and its consolidated subsidiary (the “Company”) was founded in July 2017 as Harmony Biosciences II, LLC, a Delaware limited liability company. The Company converted to a Delaware corporation named Harmony Biosciences II, Inc. in September 2017 and, in February 2020, the Company changed its name to Harmony Biosciences Holdings, Inc. The Company’s operations are conducted in its wholly owned subsidiary, Harmony Biosciences, LLC (“Harmony”), which was formed in May 2017. The Company is a commercial-stage pharmaceutical company focused on developing and commercializing innovative therapies for patients living with rare neurological diseases as well as patients living with other neurological diseases who have unmet medical needs. The Company is headquartered in Plymouth Meeting, Pennsylvania.

Liquidity and Capital Resources

3 Months Ended

Mar. 31, 2023

Liquidity And Capital Resources

Liquidity and Capital Resources

2. LIQUIDITY AND CAPITAL RESOURCES

The unaudited condensed consolidated financial statements have been prepared as though the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company had an accumulated deficit of $242,645 and $272,130, as of March 31, 2023 and December 31, 2022, respectively. As of March 31, 2023, the Company had cash, cash equivalents and investments of $392,416.

The Company believes that its existing cash, cash equivalents and investments on hand as of March 31, 2023, as well as additional cash generated from operating and financing activities will meet its operational liquidity needs and fund its planned investing activities for the next twelve months from the date of issuance of these unaudited condensed consolidated financial statements.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include all adjustments necessary for the fair presentation of the Company’s financial position for the periods presented. All intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated balance sheet as of March 31, 2023, the unaudited condensed consolidated statements of cash flows for the three months ended March 31, 2023, and 2022, and the unaudited condensed consolidated statements of operations and comprehensive income and the unaudited condensed consolidated statements of shareholders’ equity for the three months ended March 31, 2023 and 2022, are unaudited. The balance sheet as of March 31, 2023, was derived from audited financial statements as of and for the year ended December 31, 2022. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual financial statements as of and for the year ended December 31, 2022, and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of March 31, 2023, and the results of its operations and its cash flows for the three months ended March 31, 2023 and 2022. The unaudited condensed consolidated results of operations are not necessarily indicative of the results that may occur for the full fiscal year. Certain information and disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted under the SEC’s rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial

statements and accompanying notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the unaudited condensed consolidated financial statements, including the notes thereto, and elsewhere in this report. Actual results may differ significantly from estimates, which include rebates due pursuant to commercial and government contracts, accrued research and development expenses, stock-based compensation expense and income taxes.

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents and restricted cash consist of cash and, if applicable, highly liquid investments with an original maturity of three months or less when purchased, including investments in Money Market Funds and debt securities that approximate fair value. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet that equal the amount reflected in the statements of cash flows.


	As of
	March 31,		December 31,
	2023		2022
Cash and cash equivalents	$	287,962	$	243,784
Restricted cash		750		750
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows	$	288,712	$	244,534

Restricted cash includes amounts required to be held as a security deposit in the form of letters of credit for the Company’s credit card program and the fleet program.

Investments

The Company’s investments consist of debt securities that are classified as available-for-sale. Short-term and long-term investments are carried at fair value and unrealized gains and losses are recorded as a component of accumulated comprehensive income in stockholders’ equity. The amortization of premiums and accretion of discounts adjust the carrying value of investments and are recorded in interest expense, net, on the unaudited condensed consolidated statements of operations and comprehensive income. Interest income and realized gains and losses, if any, are also recorded in interest expense, net, on the unaudited condensed consolidated statement of operations and comprehensive income. Realized gains and losses that result from the sale of investments are determined on a specific identification basis.

At each reporting period, the Company reviews any unrealized losses position to determine if the decline in the fair value of the underlying investments is a result of credit losses or other factors. If the assessment indicates that a credit loss exists, any impairment is recognized as an allowance for credit losses in our consolidated statement of operations.

Concentrations of Risk

Substantially all of the Company’s cash and money market funds are held in two financial institutions. Due to their size, the Company believes these financial institutions represent minimal credit risk. Deposits may exceed the amount of insurance provided on such deposits by the Federal Deposit Insurance Corporation for U.S. institutions. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company believes that it is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held.

The Company is also subject to credit risk from its trade receivables related to its product sales. The Company extends credit to specialty pharmaceutical distribution companies within the United States. Customer creditworthiness is monitored and collateral is not required. Historically, the Company has not experienced credit losses on its accounts receivable. The Company monitors its exposure within accounts receivable and would record a reserve against uncollectible accounts receivable if necessary As of March 31, 2023, three customers accounted for 100% of gross accounts receivable; Accredo Health Group, Inc. (“Accredo”), which accounted for 41% of gross accounts receivable; Caremark LLC (“CVS Caremark”), which accounted for 30% of gross accounts receivable; and PANTHERx Specialty Pharmacy LLC (“Pantherx”), which accounted for 29% of gross accounts receivable. As of December 31, 2022, three customers accounted for 100% of gross accounts receivable; CVS Caremark, which accounted for 41% of gross accounts receivable, Accredo, which accounted for 35% of gross accounts receivable; and Pantherx, which accounted for 24% of gross accounts receivable.

For the three months ended March 31, 2023, three customers accounted for 100% of gross product revenues; CVS Caremark accounted for 35% of gross product revenues; Pantherx accounted for 33% of gross product revenues; and Accredo accounted for 32% of gross product revenues. For the three months ended March 31, 2022, three customers accounted for 100% of gross product revenues; CVS Caremark accounted for 38% of gross product revenues; Pantherx accounted for 32% of gross product revenues; and Accredo accounted for 30% of gross product revenues.

The Company depends on a single source supplier for each of its product and active pharmaceutical ingredient.

Recently Issued Accounting Pronouncements

ASU 2020-04, Reference Rate Reform (Topic 848). In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), which provides guidance related to reference rate reform. The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and could initially be applied to applicable contract modifications through December 31, 2022, which was extended to December 31, 2024 upon the FASB issuing ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. The Company is currently evaluating the impact of the transition from LIBOR to alternative reference rates but does not expect a significant impact to its condensed consolidated financial statements.

Investments

3 Months Ended

Mar. 31, 2023

Investments

Investments

4. INVESTMENTS

The carrying value and amortized cost of the Company’s available-for-sale debt securities, summarized by type of security, consisted of the following:


	March 31, 2023
		Amortized	Unrealized	Unrealized		Fair
		Cost	Gains	Losses		Value
Short-term:
Commercial paper	$	24,106	8	(22)	$	24,092
Corporate debt securities		29,117	1	(49)		29,069
U.S. government securities		2,751	7	(3)		2,755
Total short-term investments	$	55,974	16	(74)	$	55,916

Long-term:
Commercial paper	$	1,580	—	—	$	1,580
Corporate debt securities		25,855	36	(66)		25,825
U.S. government securities		21,076	61	(4)		21,133
Total long-term investments	$	48,511	97	(70)	$	48,538

	December 31, 2022
		Amortized	Unrealized	Unrealized		Fair
		Cost	Gains	Losses		Value
Short-term:
Commercial paper	$	26,553	15	(34)	$	26,534
Corporate debt securities		49,213	9	(73)		49,149
U.S. government securities		3,658	—	(10)		3,648
Total short-term investments	$	79,424	24	(117)	$	79,331

Long-term:
Commercial paper	$	853	1	—	$	854
Corporate debt securities		21,516	11	(68)		21,459
U.S. government securities		257	—	(2)		255
Total long-term investments	$	22,626	12	(70)	$	22,568

The Company classifies investments with an original maturity of less than one year as current and investments with an original maturity date of greater than one year as noncurrent on its unaudited condensed consolidated balance sheet. The investments classified as noncurrent have original maturity dates ranging from 1-2 years.

Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Fair Value Measurements

Fair Value Measurements

5. FAIR VALUE MEASUREMENTS

The Company’s unaudited condensed consolidated financial statements include cash, cash equivalents, restricted cash, accounts payable, and accrued liabilities, all of which are short term in nature and, accordingly, approximate fair value.

It is the Company’s policy to measure non-financial assets and liabilities at fair value on a nonrecurring basis. These non-financial assets and liabilities are not measured at fair value on an ongoing basis but are

subject to fair value adjustments in certain circumstances (such as evidence of impairment), which, if material, are disclosed in the accompanying footnotes.

The Company measures certain assets and liabilities at fair value based on the fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three levels based on the source of inputs as follows:

Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2—Valuations based on observable inputs and quoted prices in active markets for similar assets and liabilities.

Level 3—Valuations based on unobservable inputs and models that are supported by little or no market activity.

Money market funds are classified as Level 1 fair value instruments. Investments in available-for-sale debt securities are classified as Level 2 and carried at fair value, which we estimate utilizing a third-party pricing service. The pricing service utilizes industry standard valuation models whereby all significant inputs, including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, bids, offers, or other market-related data, are observable. We validate valuations obtained from third-party services by obtaining market values from other pricing sources. The Company did not classify any assets or liabilities as Level 3 as of March 31, 2023 or December 31, 2022.

The Company’s assets measured at fair value consisted of the following:


	March 31, 2023				December 31, 2022
		Total	Level 1	Level 2		Total	Level 1	Level 2
Assets
Cash equivalents	$	185,534	184,790	744	$	184,977	184,977	—
Commercial paper		25,672	—	25,672		27,388	—	27,388
Corporate debt securities		54,894	—	54,894		70,608	—	70,608
U.S. government securities		23,888	—	23,888		3,903	—	3,903
Total	$	289,988	184,790	105,198	$	286,876	184,977	101,899

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventory

3 Months Ended

Mar. 31, 2023

Inventory

Inventory

6. INVENTORY

Inventory, net consisted of the following:


	As of
	March 31,		December 31,
	2023		2022
Raw materials	$	776	$	838
Work in process		1,690		1,513
Finished goods		2,243		2,565
Inventory, gross		4,709		4,916
Reserve for excess inventory		(619)		(619)
Total inventory, net	$	4,090	$	4,297

Intangible Assets

3 Months Ended

Mar. 31, 2023

Intangible Assets

Intangible Assets

7. INTANGIBLE ASSETS

In August 2019, the Company received FDA approval of WAKIX® (pitolisant) for the treatment of excessive daytime sleepiness (“EDS”) in adult patients with narcolepsy. This event triggered a milestone payment of $75,000 under the provisions of the 2017 LCA (defined below) which the Company capitalized as an intangible asset. The Company determined a useful life of 10 years for such intangible asset, and, as of March 31, 2023, the remaining useful life was 6.5 years.

In October 2020, the Company received FDA approval for the New Drug Application (“NDA”) for WAKIX for the treatment of cataplexy in adult patients with narcolepsy. This event triggered a milestone payment of $100,000 under the provisions of the 2017 LCA which the Company capitalized as an intangible asset and paid in January of 2021. The Company determined a useful life of 9 years for such intangible asset, and, as of March 31, 2023, the remaining useful life was 6.5 years.

In February 2022, the Company attained $500,000 in life-to-date aggregate net sales of WAKIX in the United States. This event triggered a final $40,000 payment under the provisions of the 2017 LCA which the Company capitalized as an intangible asset and paid in March of 2022. The Company determined a useful life of 7.6 years for such intangible asset, and, as of March 31, 2023, the remaining useful life was 6.5 years.

Amortization expense was $5,961 and $5,082 for the three months ended March 31, 2023 and 2022, respectively, and is recorded in general and administrative expenses on the unaudited condensed consolidated statements of operations and comprehensive income.

The Company expects the future annual amortization expense for the unamortized intangible assets to be as follows:


Years ending December 31,
2023 (Excluding the three months ended March 31, 2023)	$	17,884
2024		23,845
2025		23,845
2026		23,845
2027		23,845
Thereafter		41,728
Total	$	154,992

The gross carrying amount and net book value of the intangible asset is as follows:


	As of
	March 31,		December 31,
	2023		2022
Gross Carrying Amount	$	215,000	$	215,000
Accumulated Amortization		(60,008)		(54,047)
Net Book Value	$	154,992	$	160,953

License Agreements and Asset Purchase Agreements

3 Months Ended

Mar. 31, 2023

License Agreements and Asset Purchase Agreements

License Agreements and Asset Purchase Agreements

8. LICENSE AGREEMENTS AND ASSET PURCHASE AGREEMENTS

License Agreements

In July 2017, Harmony entered into a License Agreement (the “2017 LCA”) with Bioprojet Société Civile de Recherche (“Bioprojet”) whereby Harmony acquired the exclusive right to commercialize the pharmaceutical compound pitolisant for the treatment, and/or prevention, of narcolepsy, obstructive sleep apnea, idiopathic hypersomnia, and Parkinson’s disease as well as any other indications unanimously agreed by the parties in the United States and its territories. A milestone payment of $50,000 was due upon acceptance by the FDA of pitolisant’s NDA, which was achieved in February 2019 and was expensed within research and development

for the year ended December 31, 2019. A milestone payment of $77,000, which included a $2,000 fee that is described below, was due upon FDA approval of WAKIX (pitolisant) for treatment of EDS in adult patients with narcolepsy, which was achieved in August 2019. The $2,000 payment and $75,000 milestone payment were paid in August and November 2019, respectively. In addition, a milestone payment of $102,000, which included a $2,000 fee was due upon the FDA approval of the NDA for WAKIX for the treatment of cataplexy in adult patients with narcolepsy. The $2,000 payment was paid in October 2020 and a $100,000 milestone payment was paid in January 2021. A final $40,000 milestone payment was paid to Bioprojet in March 2022 upon WAKIX attaining $500,000 in aggregate net sales in the United States. The 2017 LCA also requires a fixed trademark royalty and a tiered royalty based on net sales, which is payable to Bioprojet on a quarterly basis. The Company incurred $19,060 and $13,672 for the three months ended March 31, 2023 and 2022, respectively, for sales-based, trademark and tiered royalties recognized as cost of product sold. As of March 31, 2023 and December 31, 2022, the Company had accrued $19,060 and $25,367, respectively, for sales-based, trademark and tiered royalties.

On July 31, 2022, Harmony entered into a License and Commercialization Agreement (the “2022 LCA”) with Bioprojet whereby Harmony obtained exclusive rights to manufacture, use and commercialize one or more new products based on pitolisant in the United States and Latin America, with the potential to add additional indications and formulations upon agreement of both parties. Harmony paid an initial, non-refundable $30,000 licensing fee in October 2022 and additional payments of up to $155,000 are potentially due under the 2022 LCA upon the achievement of certain future development and sales-based milestones. In addition, there are other payments due upon achievement of development milestones for new indications and formulations as agreed upon by both parties. The 2022 LCA also requires a fixed trademark royalty and a tiered royalty based on net sales upon commercialization, which will be payable to Bioprojet on a quarterly basis.

Agreement Related to Intellectual Property

In August 2021, the Company entered into an asset purchase agreement with ConSynance Therapeutics, Inc. (the “APA”) to acquire HBS-102 (formerly referred to as “CSTI-100”), a potential first-in-class molecule with a novel mechanism of action. Under the terms of the APA, the Company acquired full development and commercialization rights globally, with the exception of Greater China, for $3,500. The Company accounted for the transaction as an asset acquisition as substantially all of the fair value of the assets acquired was concentrated in a single identified asset. In March 2023, the Company achieved a preclinical milestone, which triggered a $750 payment under the provisions of the APA, which the Company recognized as an IPR&D charge recorded in research and development within the unaudited condensed consolidated statement of operations and comprehensive income for the three months ended March 31, 2023. There are additional payments due under the APA upon the achievement of certain milestones including $1,000 for preclinical milestones, $19,000 for development milestones, $44,000 for regulatory milestones and $110,000 for sales milestones.

Accrued Expenses

3 Months Ended

Mar. 31, 2023

Accrued Expenses

Accrued Expenses

9. ACCRUED EXPENSES

Accrued expenses consist of the following:


	As of
	March 31,		December 31,
	2023		2022
Royalties due to third parties	$	19,060	$	25,367
Rebates and other sales deductions		28,933		27,860
Interest		3,831		3,286
Selling and marketing		1,358		1,135
Research and development		1,075		358
Professional fees, consulting, and other services		708		1,163
Other expenses		1,845		773
	$	56,810	$	59,942

Debt

3 Months Ended

Mar. 31, 2023

Debt

Debt

10. DEBT

Blackstone Credit Agreement

In August 2021, the Company entered into the Blackstone Credit Agreement that provides for (i) a senior secured term loan facility in an aggregate original principal amount of $200,000 (the “Initial Term Loan”) and (ii) a senior secured delayed draw term loan facility in an aggregate principal amount up to $100,000 (the “DDTL” and, together with the Initial Term Loan, the “Loans”). The DDTL was initially available to draw down through August 9, 2022. In August 2022, the Company entered into an agreement to extend the expiration date of the DDTL to August 9, 2023, for which the Company will pay a ticking fee at a rate of 1% per annum on the undrawn portion of the DDTL, which commenced on August 10, 2022.

The repayment schedule for the Initial Term Loan consists of quarterly $500 principal payments, which commenced on December 31, 2021, and increasing to quarterly $5,000 principal payments beginning on March 31, 2024, with a $145,500 payment due on the maturity date of August 9, 2026 (“Maturity Date”). Interest is payable quarterly, which commenced on November 9, 2021, and continues through the Maturity Date. The Initial Term Loan bears interest at a per annum rate equal to LIBOR, subject to a 1.00% floor, plus 6.50%.

Net cash received from the Initial Term Loan was $191,849, net of debt issuance costs of $8,151. The debt issuance costs related to the Initial Term Loan are being amortized as additional interest expense over the five-year loan term of the Blackstone Credit Agreement. In addition, the Company paid $1,000 in debt issuance costs relating the DDTL, which are recorded in other current assets within the unaudited condensed consolidated balance sheet. The fair value of the Initial Term Loan as of March 31, 2023 was $168,569.

Long-term debt, net consists of the following:


	March 31,		December 31,
	2023		2022
Liability component - principal	$	197,000	$	197,500
Unamortized debt discount associated with debt financing costs		(5,437)		(5,853)
Liability component - net carrying value		191,563		191,647
Less current portion		(6,500)		(2,000)
Long-term debt, net	$	185,063	$	189,647

Future minimum payments relating to long-term debt, net as of March 31, 2023, for the periods indicated below consists of the following:


Years ending December 31,
2023 (Excluding the three months ended March 31, 2023)	$	1,500
2024		20,000
2025		20,000
2026		155,500
2027		—
Thereafter		—
Total	$	197,000

Interest expense related to the Company’s long-term debt, net, is included in interest expense, net in the unaudited condensed consolidated statements of operations and comprehensive income and consists of the following:


	Three Months Ended
	March 31,
	2023		2022
Interest on principal balance	$	5,315	$	3,824
Amortization of deferred financing costs		416		412
Total term loan interest expense	$	5,731	$	4,236

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1C
-Subparagraph (c)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1I
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Leases

3 Months Ended

Mar. 31, 2023

Leases

Leases

11. LEASES

In June 2018, the Company entered into an operating lease for approximately fifteen thousand square feet of office space in Plymouth Meeting, PA, which expires in May 2024. The Company subsequently entered two separate operating leases for additional office space in Plymouth Meeting, PA, which include approximately thirteen thousand square feet and seven thousand square feet of additional office space, respectively, and expire in May 2024. The terms of the lease payments provide for rental payments on a monthly basis and on a graduated scale. The Company also leases a fleet of automobiles that are used by its sales representatives and are classified as operating leases.

Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Our leases have remaining lease terms of less than 1 year to 3 years, some of which may include the option to extend or terminate the leases.

The Company recorded operating lease costs of $378 and $385 for the three months ended March 31, 2023 and 2022, respectively.

As of March 31, 2023, the weighted-average remaining lease term for operating leases was 1.5 years and the weighted-average discount rate for operating leases was 4.6%.

Supplemental balance sheet information related to operating leases was as follows:


Leases	Classification		March 31, 2023		December 31, 2022
Assets
Operating lease right-of-use assets	Other noncurrent assets	$	2,384	$	2,312
Liabilities
Operating lease liability, current portion	Other current liabilities	$	1,874	$	1,614
Operating lease liability, long-term	Other long-term liabilities		741		975
Total operating lease liabilities		$	2,615	$	2,589

Supplemental cash flow information related to operating leases was as follows:


		March 31, 2023		March 31, 2022
Operating cash flows from operating leases	$	428	$	434
Right of use assets obtained in exchange for operating lease obligations	$	526	$	234

Future payments under noncancelable operating leases with initial terms of one year or more as of March 31, 2023 consisted of the following:


Years ending December 31,
2023 (Excluding the three months ended March 31, 2023)	$	1,462
2024		1,102
2025		143
2026		10
2027		—
Thereafter		—
Total lease payments		2,717
Less: imputed interest		(102)
Total lease liabilities	$	2,615

Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies.

Commitments and Contingencies

12. COMMITMENTS AND CONTINGENCIES

Litigation

From time to time, the Company is subject to claims and suits arising in the ordinary course of business. The Company accrues such liabilities when they are known, if they are deemed probable and can be reasonably estimated. As of March 31, 2023, there were no material claims or suits outstanding.

Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Stockholders' Equity

Stockholders' Equity

13. STOCKHOLDERS’ EQUITY

Common Stock

The holders of common stock are entitled to one vote for each share held on all matters submitted to a vote of the Company’s stockholders. The holders of common stock do not have any cumulative voting rights. Holders of common stock are entitled to receive ratably any dividends declared by the Company’s board of directors out of funds legally available for that purpose, subject to any preferential dividend rights of any outstanding preferred stock. The Company’s common stock has no preemptive rights, conversion rights or other subscription rights or redemption or sinking fund provisions.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

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+ Details

Stock Incentive Plan and Stock-based Compensation

3 Months Ended

Mar. 31, 2023

Stock Incentive Plan and Stock-based Compensation

Stock Incentive Plan and Stock-based Compensation

14. STOCK INCENTIVE PLAN AND STOCK-BASED COMPENSATION

2020 Stock Incentive Plan

In connection with the Company’s IPO, the board of directors adopted, and its stockholders approved, the 2020 Incentive Award Plan (the “2020 Plan”), in order to facilitate the grant of cash and equity incentives to directors, employees (including the Company’s named executive officers) and consultants of the Company and its subsidiaries. The 2020 Plan provides for the grant of stock options, including incentive stock options (“ISOs”) and non-qualified stock options (“NSOs”), SARs, restricted stock, dividend equivalents, restricted stock units (“RSUs”) and other stock or cash-based awards.

Stock options and stock appreciation rights under the 2020 Plan have a 10-year contractual term and vest over the vesting period specified in the applicable award agreement, at achievement of a performance requirement, or upon change of control (as defined in the applicable plan). RSUs vest over the vesting period specified in the applicable award agreement, at achievement of a performance requirement, or upon change of control (as defined in the applicable plan). As of March 31, 2023, there were 4,647,087 shares of common stock available for issuance under the 2020 Plan. The number of shares that may be issued under the 2020 Plan will automatically increase on January 1 of each year in an amount equal to the lesser of (i) 4.0% of the shares of the Company’s common stock outstanding on December 31 of the preceding year or (ii) an amount determined by the Company’s board of directors.

2017 Stock Incentive Plan

In August 2017, the Company adopted an equity incentive plan (the “2017 Plan”). Under the 2017 Plan, directors, officers, employees, consultants, and advisors of the Company can be paid incentive compensation measured by the value of the Company’s shares of common stock through grants of stock options, stock appreciation rights (“SARs”), or restricted stock. Following the adoption of the 2020 Plan, no further grants have been, or will be, made under the 2017 Plan. However, the 2017 Plan will continue to govern the terms and conditions of outstanding awards granted under it.

Stock Options

The following table summarizes stock option activity for the three months ended March 31, 2023:


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
	Awards	Price		Term
Awards outstanding—December 31, 2022	6,460,947	$	30.90	7.86
Awards issued	99,797	$	41.52
Awards exercised	(324,301)	$	12.06
Awards forfeited	(158,798)	$	21.61
Awards outstanding—March 31, 2023	6,077,645	$	32.32	7.77

Stock Appreciation Rights

The following table summarizes SARs activity for the three months ended March 31, 2023:


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
	Awards	Price		Term
Awards outstanding—December 31, 2022	43,208	$	9.38	6.32
Awards issued	—	$	—
Awards exercised	—	$	—
Awards forfeited	—	$	—
Awards outstanding—March 31, 2023	43,208	$	9.38	6.08

Restricted Stock Units

The following table summarizes RSU activity for the three months ended March 31, 2023:


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Grant Date		Contractual
	Awards	Fair Value		Term
Awards outstanding—December 31, 2022	60,000	$	29.03	8.24
Awards issued	—	$	—
Awards vested	(30,000)	$	29.03
Awards forfeited	—	$	—
Awards outstanding—March 31, 2023	30,000	$	29.03	7.99

As of March 31, 2023 and December 31, 2022, stock awards issued under the 2017 and 2020 Plans of 2,219,090 and 1,818,045 shares of common stock, respectively, were vested.

Value of Stock Options and SARs

The Company values options and SARs using the Black-Scholes option-pricing model. The Company lacks sufficient historical company-specific volatility information. Therefore, the Company estimates expected stock volatility based on historical volatility of peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded stock price. For options with service-based vesting conditions, the expected term of the Company’s stock options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla” options. For SARs, the expected term is based upon the weighting of certain future events. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for the time periods approximately equal to the expected term of the award. An expected dividend yield of 0% is based on the fact that the Company has never paid cash dividends and does not expect to do so in the foreseeable future.

The assumptions used to value the awards are summarized in the following table.


	As of
	March 31,		December 31,
	2023		2022
Dividend yield	0.00	%	0.00	%
Expected volatility	76.32	%	72.57 - 77.08	%
Risk-free interest rate	3.55 - 3.63	%	1.99 - 4.05	%
Lack of marketability discount	0.00	%	0.00	%
Expected term (years)	2.9 - 6.3		3.1 - 6.3

Value of RSUs

The fair value of RSUs is equal to the value of the Company’s common stock on the grant date.

The weighted average per share fair value of awards issued under the 2017 Plan and 2020 Plan was $19.83 and $18.88 on March 31, 2023 and December 31, 2022, respectively.

Stock-Based Compensation Expense

Stock-based compensation expense, net for the three months ended March 31, 2023 and 2022, was recorded in the unaudited condensed consolidated statements of operations and comprehensive income in the following line items:


	Three Months Ended March 31,
	2023		2022
Research and development expense	$	976	$	518
Sales and marketing expense		1,073		976
General and administrative expense		4,512		3,402
	$	6,561	$	4,896

Stock-based compensation expense, net related to options and RSUs issued under the 2017 Plan and 2020 Plan is included in stockholder’s equity, and a liability for SARs is included in other non-current liabilities, in the Company’s unaudited condensed consolidated balance sheet. As of March 31, 2023, the total unrecognized stock-based compensation expense related to options and RSUs was $77,333. Such amount will be recognized in the Company’s consolidated statement of operations over a weighted average period of 2.8 years.

Employee Stock Purchase Plan

The 2020 Employee Stock Purchase Plan (“ESPP”) was adopted by the Company’s Board of Directors on April 30, 2021. The ESPP permits eligible employees to purchase shares of the Company’s common stock at a 15% discount from the lesser of the fair market value per share of the Company’s common stock on the first day of the offering period or the fair market value of the Company’s common stock on the purchase date. Funds are collected from employees through after-tax payroll deductions. The total number of shares reserved for issuance under the ESPP was initially 629,805, which will automatically increase on January 1 of each year in an amount equal to the lesser of (i) 1.0% of the shares of the Company’s common stock outstanding on December 31 of the preceding year or (ii) an amount determined by the Company’s board of directors. It is intended that the ESPP meet the requirements for an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. There were no shares issued under the ESPP for each of the three months ended March 31, 2023 and 2022. The discount on the ESPP was $105 and $94 for the three months ended March 31, 2023 and 2022, respectively, and is recorded within stock-based compensation expense.

Earnings per Share

3 Months Ended

Mar. 31, 2023

Earnings per Share

Earnings per Share

15. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding. Diluted net income per common share is computed under the treasury stock method by using the weighted average number of shares of common stock outstanding, plus, for periods with net income, the potential dilutive effects of stock options, stock appreciation rights and restricted stock units.

The following table sets forth the computation of basic and diluted net income per share:


	Three Months Ended March 31,
	2023		2022
Numerator
Net income	$	29,485	$	21,485
Denominator
Net income per common share - basic	$	0.49	$	0.36
Net income per common share - diluted	$	0.48	$	0.35
Weighted average number of shares of common stock - basic		59,732,157		58,908,526
Weighted average number of shares of common stock - diluted		61,221,511		60,586,875

Securities outstanding that were included in the computation above, utilizing the treasury stock method are as follows:

Potential shares of common stock issuable that were excluded from the computation of diluted weighted-average shares outstanding excluded from the numerator, are as follows:

Income Taxes

3 Months Ended

Mar. 31, 2023

Income Taxes

Income Taxes

16. INCOME TAXES

The reasons for the difference between the statutory federal income tax rate and the Company’s effective income tax rate for the three months ended March 31, 2023 and 2022 are as follows:


	Three Months Ended March 31,
	2023		2022
Federal income tax rate	21.0	%	21.0	%
Stock-based compensation	(2.8)		(3.8)
State taxes	6.3		6.4
Credits	(2.9)		—
Other	0.4		—
Valuation allowance	—		(15.5)
Total	22.0	%	8.1	%

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Related-party Transactions

3 Months Ended

Mar. 31, 2023

Related-party Transactions

Related-party Transactions

17. RELATED-PARTY TRANSACTIONS

The Company was party to a management agreement for professional services provided by a related party, Paragon Biosciences, LLC (“Paragon”). The related party is an entity that shares common ownership

with the Company. In addition, the Chairman of the Company’s board of directors was the President and owner of the entity. The Company terminated the management agreement upon the consummation of its IPO. The Company is also party to a right of use agreement with the related party whereby it has access to and the right to use certain office space leased by the related party in Chicago, IL. In addition, the Company had participated in certain transactions with separate related parties that also share common ownership with the Company, primarily related to combined employee health plans. The Company incurred $71 for each of the three months ended March 31, 2023 and 2022, in expenses to this related party, which are included in general and administrative expense in the unaudited condensed consolidated statements of operations and comprehensive loss. As of March 31, 2023 and December 31, 2022, there were no amounts due to or due from related parties included in the unaudited condensed consolidated balance sheets.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Summary of Significant Accounting Policies

Basis of Presentation

Basis of Presentation

statements and accompanying notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Use of Estimates

Use of Estimates

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash


	As of
	March 31,		December 31,
	2023		2022
Cash and cash equivalents	$	287,962	$	243,784
Restricted cash		750		750
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows	$	288,712	$	244,534

Restricted cash includes amounts required to be held as a security deposit in the form of letters of credit for the Company’s credit card program and the fleet program.

Investments

Investments

Concentrations of Risk

Concentrations of Risk

The Company depends on a single source supplier for each of its product and active pharmaceutical ingredient.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2023

Summary of Significant Accounting Policies

Schedule of reconciliation of cash, cash equivalents, and restricted cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet that equal the amount reflected in the statements of cash flows.


	As of
	March 31,		December 31,
	2023		2022
Cash and cash equivalents	$	287,962	$	243,784
Restricted cash		750		750
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows	$	288,712	$	244,534

Investments (Tables)

3 Months Ended

Mar. 31, 2023

Investments

Schedule of carrying value and amortized cost of available-for-sale debt securities

The carrying value and amortized cost of the Company’s available-for-sale debt securities, summarized by type of security, consisted of the following:


	March 31, 2023
		Amortized	Unrealized	Unrealized		Fair
		Cost	Gains	Losses		Value
Short-term:
Commercial paper	$	24,106	8	(22)	$	24,092
Corporate debt securities		29,117	1	(49)		29,069
U.S. government securities		2,751	7	(3)		2,755
Total short-term investments	$	55,974	16	(74)	$	55,916

Long-term:
Commercial paper	$	1,580	—	—	$	1,580
Corporate debt securities		25,855	36	(66)		25,825
U.S. government securities		21,076	61	(4)		21,133
Total long-term investments	$	48,511	97	(70)	$	48,538

	December 31, 2022
		Amortized	Unrealized	Unrealized		Fair
		Cost	Gains	Losses		Value
Short-term:
Commercial paper	$	26,553	15	(34)	$	26,534
Corporate debt securities		49,213	9	(73)		49,149
U.S. government securities		3,658	—	(10)		3,648
Total short-term investments	$	79,424	24	(117)	$	79,331

Long-term:
Commercial paper	$	853	1	—	$	854
Corporate debt securities		21,516	11	(68)		21,459
U.S. government securities		257	—	(2)		255
Total long-term investments	$	22,626	12	(70)	$	22,568

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Measurements

Schedule of assets measured at fair value

The Company’s assets measured at fair value consisted of the following:


	March 31, 2023				December 31, 2022
		Total	Level 1	Level 2		Total	Level 1	Level 2
Assets
Cash equivalents	$	185,534	184,790	744	$	184,977	184,977	—
Commercial paper		25,672	—	25,672		27,388	—	27,388
Corporate debt securities		54,894	—	54,894		70,608	—	70,608
U.S. government securities		23,888	—	23,888		3,903	—	3,903
Total	$	289,988	184,790	105,198	$	286,876	184,977	101,899

Inventory (Tables)

3 Months Ended

Mar. 31, 2023

Inventory

Schedule of inventory net

Inventory, net consisted of the following:


	As of
	March 31,		December 31,
	2023		2022
Raw materials	$	776	$	838
Work in process		1,690		1,513
Finished goods		2,243		2,565
Inventory, gross		4,709		4,916
Reserve for excess inventory		(619)		(619)
Total inventory, net	$	4,090	$	4,297

Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2023

Intangible Assets

Schedule of expected future annual amortization expense for unamortized intangible assets

The Company expects the future annual amortization expense for the unamortized intangible assets to be as follows:


Years ending December 31,
2023 (Excluding the three months ended March 31, 2023)	$	17,884
2024		23,845
2025		23,845
2026		23,845
2027		23,845
Thereafter		41,728
Total	$	154,992

Schedule of gross carrying amount and net book value of intangible assets

The gross carrying amount and net book value of the intangible asset is as follows:


	As of
	March 31,		December 31,
	2023		2022
Gross Carrying Amount	$	215,000	$	215,000
Accumulated Amortization		(60,008)		(54,047)
Net Book Value	$	154,992	$	160,953

Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2023

Accrued Expenses

Schedule of accrued expenses

Accrued expenses consist of the following:


	As of
	March 31,		December 31,
	2023		2022
Royalties due to third parties	$	19,060	$	25,367
Rebates and other sales deductions		28,933		27,860
Interest		3,831		3,286
Selling and marketing		1,358		1,135
Research and development		1,075		358
Professional fees, consulting, and other services		708		1,163
Other expenses		1,845		773
	$	56,810	$	59,942

Debt (Tables)

3 Months Ended

Mar. 31, 2023

Debt

Schedule of long-term debt, net

Long-term debt, net consists of the following:


	March 31,		December 31,
	2023		2022
Liability component - principal	$	197,000	$	197,500
Unamortized debt discount associated with debt financing costs		(5,437)		(5,853)
Liability component - net carrying value		191,563		191,647
Less current portion		(6,500)		(2,000)
Long-term debt, net	$	185,063	$	189,647

Schedule of future minimum payments relating to long term debt

Future minimum payments relating to long-term debt, net as of March 31, 2023, for the periods indicated below consists of the following:


Years ending December 31,
2023 (Excluding the three months ended March 31, 2023)	$	1,500
2024		20,000
2025		20,000
2026		155,500
2027		—
Thereafter		—
Total	$	197,000

Schedule of interest expense related to long term debt


	Three Months Ended
	March 31,
	2023		2022
Interest on principal balance	$	5,315	$	3,824
Amortization of deferred financing costs		416		412
Total term loan interest expense	$	5,731	$	4,236

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases

Schedule of supplemental balance sheet and cash flow information related to operating leases

Supplemental balance sheet information related to operating leases was as follows:


Leases	Classification		March 31, 2023		December 31, 2022
Assets
Operating lease right-of-use assets	Other noncurrent assets	$	2,384	$	2,312
Liabilities
Operating lease liability, current portion	Other current liabilities	$	1,874	$	1,614
Operating lease liability, long-term	Other long-term liabilities		741		975
Total operating lease liabilities		$	2,615	$	2,589

Supplemental cash flow information related to operating leases was as follows:


		March 31, 2023		March 31, 2022
Operating cash flows from operating leases	$	428	$	434
Right of use assets obtained in exchange for operating lease obligations	$	526	$	234

Schedule of future payments under noncancelable operating leases

Future payments under noncancelable operating leases with initial terms of one year or more as of March 31, 2023 consisted of the following:


Years ending December 31,
2023 (Excluding the three months ended March 31, 2023)	$	1,462
2024		1,102
2025		143
2026		10
2027		—
Thereafter		—
Total lease payments		2,717
Less: imputed interest		(102)
Total lease liabilities	$	2,615

Stock Incentive Plan and Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Stock Incentive Plan and Stock-based Compensation

Summary of changes in stock options granted

The following table summarizes stock option activity for the three months ended March 31, 2023:


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
	Awards	Price		Term
Awards outstanding—December 31, 2022	6,460,947	$	30.90	7.86
Awards issued	99,797	$	41.52
Awards exercised	(324,301)	$	12.06
Awards forfeited	(158,798)	$	21.61
Awards outstanding—March 31, 2023	6,077,645	$	32.32	7.77

Summary of changes in SARs granted

The following table summarizes SARs activity for the three months ended March 31, 2023:


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
	Awards	Price		Term
Awards outstanding—December 31, 2022	43,208	$	9.38	6.32
Awards issued	—	$	—
Awards exercised	—	$	—
Awards forfeited	—	$	—
Awards outstanding—March 31, 2023	43,208	$	9.38	6.08

Summary of changes in RSUs granted

The following table summarizes RSU activity for the three months ended March 31, 2023:


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Grant Date		Contractual
	Awards	Fair Value		Term
Awards outstanding—December 31, 2022	60,000	$	29.03	8.24
Awards issued	—	$	—
Awards vested	(30,000)	$	29.03
Awards forfeited	—	$	—
Awards outstanding—March 31, 2023	30,000	$	29.03	7.99

Summary of assumptions used to value awards

The assumptions used to value the awards are summarized in the following table.


	As of
	March 31,		December 31,
	2023		2022
Dividend yield	0.00	%	0.00	%
Expected volatility	76.32	%	72.57 - 77.08	%
Risk-free interest rate	3.55 - 3.63	%	1.99 - 4.05	%
Lack of marketability discount	0.00	%	0.00	%
Expected term (years)	2.9 - 6.3		3.1 - 6.3

Summary of stock-based compensation expense


	Three Months Ended March 31,
	2023		2022
Research and development expense	$	976	$	518
Sales and marketing expense		1,073		976
General and administrative expense		4,512		3,402
	$	6,561	$	4,896

Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings per Share

Summary of computation of basic and diluted net income (loss) per share

The following table sets forth the computation of basic and diluted net income per share:


	Three Months Ended March 31,
	2023		2022
Numerator
Net income	$	29,485	$	21,485
Denominator
Net income per common share - basic	$	0.49	$	0.36
Net income per common share - diluted	$	0.48	$	0.35
Weighted average number of shares of common stock - basic		59,732,157		58,908,526
Weighted average number of shares of common stock - diluted		61,221,511		60,586,875

Summary of antidilutive securities excluded from computation of earnings per share

Securities outstanding that were included in the computation above, utilizing the treasury stock method are as follows:

Potential shares of common stock issuable that were excluded from the computation of diluted weighted-average shares outstanding excluded from the numerator, are as follows:

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2023

Income Taxes

Schedule of difference between statutory federal income tax rate


	Three Months Ended March 31,
	2023		2022
Federal income tax rate	21.0	%	21.0	%
Stock-based compensation	(2.8)		(3.8)
State taxes	6.3		6.4
Credits	(2.9)		—
Other	0.4		—
Valuation allowance	—		(15.5)
Total	22.0	%	8.1	%

Liquidity and Capital Resources (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Liquidity And Capital Resources
Accumulated deficit	$ 242,645	$ 272,130
Cash, cash equivalents and investments	$ 392,416

Summary of Significant Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Summary of Significant Accounting Policies
Cash and cash equivalents	$ 287,962	$ 243,784
Restricted cash	750	750
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows	$ 288,712	$ 244,534	$ 225,249	$ 235,059

Summary of Significant Accounting Policies - Additional Information (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2023 Institution customer	Mar. 31, 2022 customer	Dec. 31, 2022 customer
Summary Of Significant Accounting Policies [Line Items]
Number Of financial institutions \| Institution	2
Three Customers \| Accounts Receivable \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Number of customers	3		3
Concentration risk percentage	100.00%		100.00%
Three Customers \| Product Revenues \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Number of customers	3	3
Concentration risk percentage	100.00%	100.00%
Caremark LLC \| Accounts Receivable \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	30.00%		41.00%
Caremark LLC \| Product Revenues \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	35.00%	38.00%
PANTHERx Specialty Pharmacy LLC \| Accounts Receivable \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	29.00%		24.00%
PANTHERx Specialty Pharmacy LLC \| Product Revenues \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	33.00%	32.00%
Accredo Health Group, Inc \| Accounts Receivable \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	41.00%		35.00%
Accredo Health Group, Inc \| Product Revenues \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	32.00%	30.00%

Investments - Carrying Value and Amortized Cost of Available-For-Sale Debt Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Minimum
Investment securities
Non current investment maturity term	1 year
Maximum
Investment securities
Non current investment maturity term	2 years
Short-term
Investment securities
Amortized cost	$ 55,974	$ 79,424
Unrealized Gains	16	24
Unrealized Losses	(74)	(117)
Fair Value	55,916	79,331
Short-term commercial paper
Investment securities
Amortized cost	24,106	26,553
Unrealized Gains	8	15
Unrealized Losses	(22)	(34)
Fair Value	24,092	26,534
Short-term corporate debt securities
Investment securities
Amortized cost	29,117	49,213
Unrealized Gains	1	9
Unrealized Losses	(49)	(73)
Fair Value	29,069	49,149
Short-term U.S. government securities
Investment securities
Amortized cost	2,751	3,658
Unrealized Gains	7
Unrealized Losses	(3)	(10)
Fair Value	2,755	3,648
Long-term
Investment securities
Amortized cost	48,511	22,626
Unrealized Gains	97	12
Unrealized Losses	(70)	(70)
Fair Value	48,538	22,568
Long-term commercial paper
Investment securities
Amortized cost	1,580	853
Unrealized Gains		1
Fair Value	1,580	854
Long-term corporate debt securities
Investment securities
Amortized cost	25,855	21,516
Unrealized Gains	36	11
Unrealized Losses	(66)	(68)
Fair Value	25,825	21,459
Long-term U.S. government securities
Investment securities
Amortized cost	21,076	257
Unrealized Gains	61
Unrealized Losses	(4)	(2)
Fair Value	$ 21,133	$ 255

Fair Value Measurements - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets
Assets	$ 289,988	$ 286,876
Cash equivalents
Assets
Assets	185,534	184,977
Commercial paper
Assets
Assets	25,672	27,388
Corporate debt securities
Assets
Assets	54,894	70,608
U.S. government securities
Assets
Assets	23,888	3,903
Level 1
Assets
Assets	184,790	184,977
Level 1 \| Cash equivalents
Assets
Assets	184,790	184,977
Level 2
Assets
Assets	105,198	101,899
Level 2 \| Cash equivalents
Assets
Assets	744
Level 2 \| Commercial paper
Assets
Assets	25,672	27,388
Level 2 \| Corporate debt securities
Assets
Assets	54,894	70,608
Level 2 \| U.S. government securities
Assets
Assets	$ 23,888	$ 3,903

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory
Raw materials	$ 776	$ 838
Work in process	1,690	1,513
Finished goods	2,243	2,565
Inventory, gross	4,709	4,916
Reserve for excess inventory	(619)	(619)
Total inventory, net	$ 4,090	$ 4,297

Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended				3 Months Ended
	Mar. 31, 2022	Feb. 28, 2022	Jan. 31, 2021	Aug. 31, 2019	Mar. 31, 2023	Mar. 31, 2022
Intangible Assets
Amortization expense					$ 5,961	$ 5,082
Net product revenues					$ 119,126	$ 85,313
WAKIX
Intangible Assets
Final payment paid	$ 40,000
Useful life of intangible asset					7 years 7 months 6 days
Remaining useful life					6 years 6 months
WAKIX \| United States
Intangible Assets
Net product revenues		$ 500,000
WAKIX \| Daytime Sleepiness
Intangible Assets
License agreement milestone payments paid				$ 75,000
Useful life of intangible asset					10 years
Remaining useful life					6 years 6 months
NDA for WAKIX. \| Cataplexy
Intangible Assets
License agreement milestone payments paid			$ 100,000
Useful life of intangible asset					9 years
Remaining useful life					6 years 6 months

Intangible Assets - Schedule of Expected Future Annual Amortization Expense for Unamortized Intangible Assets (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Future annual amortization expense
2023 (Excluding the three months ended March 31, 2023)	$ 17,884
2024	23,845
2025	23,845
2026	23,845
2027	23,845
Thereafter	41,728
Total	$ 154,992

Intangible Assets - Schedule of Gross Carrying Amount and Net Book Value of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Intangible Assets
Gross Carrying Amount	$ 215,000	$ 215,000
Accumulated Amortization	(60,008)	(54,047)
Net Book Value	$ 154,992	$ 160,953

License Agreements and Asset Purchase Agreements (Details) - USD ($) $ in Thousands	1 Months Ended							3 Months Ended
	Mar. 31, 2023	Jul. 31, 2022	Aug. 31, 2021	Jan. 31, 2021	Oct. 31, 2020	Nov. 30, 2019	Aug. 31, 2019	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Feb. 28, 2019
License Agreements and Asset Purchase Agreements
Cost of product sold								$ 20,780	$ 14,716
Accrued Sales Based Trademark and Royalties	$ 19,060							19,060		$ 25,367
All Countries Excluding Greater China \| HBS-102 \| Asset Purchase Agreement with ConSynance Therapeutics
License Agreements and Asset Purchase Agreements
Consideration transferred			$ 3,500
Payment for intellectual property upon preclinical milestones			1,000
Payment for intellectual property upon developmental milestones			19,000
Payment for intellectual property upon regulatory milestones			44,000
Payment for intellectual property upon sales milestones			$ 110,000
All Countries Excluding Greater China \| HBS-102 \| Asset Purchase Agreement with ConSynance Therapeutics \| Research and Development Expense
License Agreements and Asset Purchase Agreements
Payment related to achievement of preclinical milestone.	750,000
Bioprojet
License Agreements and Asset Purchase Agreements
Licensing agreement milestone fees							$ 2,000
License agreement milestone payments paid						$ 75,000	2,000
License agreement, additional milestone payment due							102,000
Accrued Sales Based Trademark and Royalties	$ 19,060							19,060		$ 25,367
Bioprojet \| Upon Acceptance by FDA of Pitolisant's
License Agreements and Asset Purchase Agreements
License agreement, milestone payment due											$ 50,000
License agreement, upfront non-refundable licensing fees paid		$ 30,000
License agreement, maximum additional milestone payment due		$ 155,000
Bioprojet \| Upon FDA Approval of WAKIX
License Agreements and Asset Purchase Agreements
License agreement, milestone payment due							77,000
Licensing agreement milestone fees							$ 2,000
License agreement milestone payments paid				$ 100,000	$ 2,000
Bioprojet \| Sales-based, trademark and tiered royalties
License Agreements and Asset Purchase Agreements
Cost of product sold								19,060	$ 13,672
Bioprojet \| United States
License Agreements and Asset Purchase Agreements
Amount of Aggregate Net Sales Attaining								500,000
Bioprojet \| Attaining $500,000 Aggregate Net Sales \| United States \| Upon FDA Approval of WAKIX
License Agreements and Asset Purchase Agreements
Final payment paid								$ 40,000

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accrued Expenses
Royalties due to third parties	$ 19,060	$ 25,367
Rebates and other sales deductions	28,933	27,860
Interest	3,831	3,286
Selling and marketing	1,358	1,135
Research and development	1,075	358
Professional fees, consulting, and other services	708	1,163
Other expenses	1,845	773
Accrued expenses	$ 56,810	$ 59,942

Debt - Additional Information (Details) - Blackstone Alternative Credit Advisors ("Blackstone") - USD ($) $ in Thousands		1 Months Ended
	Aug. 10, 2022	Aug. 31, 2021	Mar. 31, 2023
Senior Secured Term Loan
DEBT
Aggregate principal amount		$ 200,000
Debt issuance costs		8,151
Cash proceeds received		$ 191,849
Term of loan		5 years
Fair value of loan			$ 168,569
Senior Secured Term Loan \| Repayment of Debt Commencing on December 31, 2021
DEBT
Periodic payment principal		$ 500
Senior Secured Term Loan \| Repayment of Debt Beginning on March 31, 2024
DEBT
Periodic payment principal		5,000
Senior Secured Term Loan \| Repayment of Debt Due on Maturity Date
DEBT
Periodic payment principal		$ 145,500
Senior Secured Term Loan \| LIBOR
DEBT
Basis spread on variable rate		6.50%
Senior Secured Term Loan \| LIBOR \| Minimum
DEBT
Basis spread on variable rate		1.00%
Senior Secured Delayed Draw Term Loan
DEBT
Aggregate principal amount		$ 100,000
Percentage of ticking fee	1.00%
Debt issuance costs		$ 1,000

Debt - Balances of Long-term Debt, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt
Liability component - principal	$ 197,000	$ 197,500
Unamortized debt discount associated with debt financing costs	(5,437)	(5,853)
Liability component - net carrying value	191,563	191,647
Less current portion	(6,500)	(2,000)
Long-term debt, net	$ 185,063	$ 189,647

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Debt - Future Minimum Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Future minimum payments
2023 (Excluding the three months ended March 31, 2023)	$ 1,500
2024	20,000
2025	20,000
2026	155,500
Total	$ 197,000	$ 197,500

Debt - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
Debt - Interest Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Debt
Interest on principal balance	$ 5,315	$ 3,824
Amortization of deferred financing costs	416	412
Total term loan interest expense	$ 5,731	$ 4,236

Leases (Details) ft² in Thousands, $ in Thousands	1 Months Ended	3 Months Ended
Leases (Details) ft² in Thousands, $ in Thousands	Jun. 30, 2018 ft²	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)
LEASES
Operating lease square feet of office space	15
Additional office space leased one	13
Additional office space leased two	7
Lessee, Operating Lease, Existence of Option to Extend [true false]		true
Lessee, Operating Lease, Existence of Option to Terminate [true false]		true
Cost operating lease \| $		$ 378	$ 385
Weighted average remaining lease term		1 year 6 months
Weighted-average discount rate for operating leases		4.60%
Minimum
LEASES
Lease terms		1 year
Maximum
LEASES
Lease terms		3 years

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets
Operating lease right-of-use assets	$ 2,384	$ 2,312
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets Noncurrent	Other Assets Noncurrent
Liabilities
Operating lease liability, current portion	$ 1,874	$ 1,614
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other Liabilities Current	Other Liabilities Current
Operating lease liability, long-term	$ 741	$ 975
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Liabilities Noncurrent	Other Liabilities Noncurrent
Total operating lease liabilities	$ 2,615	$ 2,589

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases
Operating cash flows from operating leases	$ 428	$ 434
Right of use assets obtained in exchange for operating lease obligations	$ 526	$ 234

Leases - Future Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Years ending December 31,
2023 (Excluding the three months ended March 31, 2023)	$ 1,462
2024	1,102
2025	143
2026	10
Total lease payments	2,717
Less: imputed interest	(102)
Total operating lease liabilities	$ 2,615	$ 2,589

Commitments and Contingencies (Details)	Mar. 31, 2023 claim
Commitments and Contingencies.
Claims or suits outstanding	0

Stockholders' Equity (Details)	3 Months Ended
Stockholders' Equity (Details)	Mar. 31, 2023
Stockholders' Equity
Common Stock Voting Rights	one vote for each share

Stock Incentive Plan and Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		12 Months Ended
	Apr. 30, 2021	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Stock Incentive Plan and Stock-based Compensation
Unrecognized stock-based compensation expense		$ 77,333
Weighted average period		2 years 9 months 18 days
Restricted Stock Units
Stock Incentive Plan and Stock-based Compensation
Weighted average per share fair value of awards issued (in USD per share)		$ 19.83		$ 18.88
2020 Plan
Stock Incentive Plan and Stock-based Compensation
Stock options contractual term		10 years
Percentage of increment of common stock outstanding		4.00%
Total number of shares available for issuance		4,647,087
2017 and 2020 Plans \| Common Stock
Stock Incentive Plan and Stock-based Compensation
Stock vested		2,219,090		1,818,045
Employee Stock Purchase Plan
Stock Incentive Plan and Stock-based Compensation
Percentage of increment of common stock outstanding	1.00%
ESPP permits eligible employees to purchase shares of common stock at discount	15.00%
Total number of shares available for issuance	629,805
Shares issued under the ESPP		0	0
Amount of discount on ESSP		$ 105	$ 94

Stock Incentive Plan and Stock-based Compensation - Summary of Changes in Stock Options Granted (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Stock Incentive Plan and Stock-based Compensation
Number of Awards, Awards outstanding, Beginning balance	6,460,947
Number of Awards, Awards issued	99,797
Number of Awards, Awards exercised	(324,301)
Number of Awards, Awards forfeited	(158,798)
Number of Awards, Awards outstanding, Ending balance	6,077,645	6,460,947
Weighted-Average Exercise Price, Awards outstanding, Beginning balance	$ 30.90
Weighted-Average Exercise Price, Awards issued	41.52
Weighted-Average Exercise Price, Awards exercised	12.06
Weighted-Average Exercise Price, Awards forfeited	21.61
Weighted-Average Exercise Price, Awards outstanding, Ending balance	$ 32.32	$ 30.90
Weighted-Average Remaining Contractual Term	7 years 9 months 7 days	7 years 10 months 9 days

Stock Incentive Plan and Stock-based Compensation - Summary of Changes in SARs Granted (Details) - Stock Appreciation Rights - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Awards, Awards outstanding, Beginning balance	43,208
Number of Awards, Awards outstanding, Ending balance	43,208	43,208
Weighted-Average Exercise Price, Awards outstanding, Beginning balance	$ 9.38
Weighted-Average Exercise Price, Awards outstanding, Ending balance	$ 9.38	$ 9.38
Weighted-Average Remaining Contractual Term	6 years 29 days	6 years 3 months 25 days

Stock Incentive Plan and Stock-based Compensation - Summary of Changes in RSUs Granted (Details) - Restricted Stock Units - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Awards, Awards outstanding, Beginning balance	60,000
Number of Awards, Awards vested	(30,000)
Number of Awards, Awards outstanding, Ending balance	30,000	60,000
Weighted-Average Exercise Price, Awards outstanding, Beginning balance	$ 29.03
Weighted-Average Exercise Price, Awards vested	29.03
Weighted-Average Exercise Price, Awards outstanding, Ending balance	$ 29.03	$ 29.03
Weighted-Average Remaining Contractual Term	7 years 11 months 26 days	8 years 2 months 26 days

Stock Incentive Plan and Stock-based Compensation - Summary of Assumptions Used to Value Awards (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
Expected volatility	76.32%
Expected volatility, minimum		72.57%
Expected volatility, maximum		77.08%
Risk-free interest rate, minimum	3.55%	1.99%
Risk-free interest rate, maximum	3.63%	4.05%
Lack of marketability discount	0.00%	0.00%
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	2 years 10 months 24 days	3 years 1 month 6 days
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	6 years 3 months 18 days	6 years 3 months 18 days

Stock Incentive Plan and Stock-based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 6,561	$ 4,896
Research and Development Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	976	518
Sales and Marketing Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,073	976
General and Administrative Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 4,512	$ 3,402

Earnings per Share - Summary of Computation of Basic and Diluted Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator
Net income	$ 29,485	$ 21,485
Denominator
Net income per common share - basic	$ 0.49	$ 0.36
Net income per common share - diluted	$ 0.48	$ 0.35
Weighted average number of shares of common stock - basic	59,732,157	58,908,526
Weighted average number of shares of common stock - diluted	61,221,511	60,586,875

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Earnings per Share - Summary of Securities Outstanding Included in Computation above, Utilizing Treasury Stock Method (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Stock options, SARs, and RSUs to purchase common stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total	1,489,354	1,678,349

Earnings per Share - Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Stock options, SARs, and RSUs to purchase common stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total	4,661,499	5,249,666

Income Taxes - Schedule of Difference Between Statutory Federal Income Tax Rate (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Taxes
Federal income tax rate	21.00%	21.00%
Stock-based compensation	(2.80%)	(3.80%)
State taxes	6.30%	6.40%
Credits	(2.90%)
Other	0.40%
Valuation allowance		(15.50%)
Total	22.00%	8.10%

Related-party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Related-party Transactions
Amounts due to or due from related parties	$ 0		$ 0
Management Services Agreement \| General and Administrative Expense
Related-party Transactions
Management fee expense and other expenses to related party	$ 71	$ 71

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Receivables to be collected from (obligations owed to) related parties, net as of the balance sheet date where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth.

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