Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HTGM | |
Entity Registrant Name | HTG Molecular Diagnostics, Inc | |
Entity Central Index Key | 0001169987 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 28,643,180 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 6,975,080 | $ 8,432,600 |
Short-term investments available-for-sale, at fair value | 18,056,673 | 22,681,049 |
Accounts receivable | 3,349,850 | 5,012,678 |
Inventory, net of allowance of $39,403 at both March 31, 2019 and December 31, 2018 | 1,179,041 | 1,306,609 |
Prepaid expenses and other | 557,521 | 568,209 |
Total current assets | 30,118,165 | 38,001,145 |
Restricted cash | 3,270,247 | 3,270,247 |
Deferred offering costs | 198,088 | 59,030 |
Deferred MidCap revolving loan costs | 63,099 | 67,068 |
Operating lease right-of-use assets | 621,429 | |
Property and equipment, net | 2,141,107 | 2,373,790 |
Total assets | 36,412,135 | 43,771,280 |
Current liabilities: | ||
Accounts payable | 1,414,478 | 1,849,921 |
Accrued liabilities | 1,329,686 | 3,358,465 |
Contract liabilities - current | 246,009 | 332,711 |
NuvoGen obligation - current | 1,232,884 | 1,290,234 |
Operating lease liabilities - current | 478,804 | |
Other current liabilities | 79,091 | 186,043 |
Total current liabilities | 4,780,952 | 7,017,374 |
NuvoGen obligation - non-current, net of discount | 5,292,769 | 5,702,519 |
Convertible note, related party - net of debt issuance costs | 2,977,577 | 2,974,213 |
MidCap Term Loan payable - net of discount and debt issuance costs | 6,739,815 | 6,704,641 |
Operating lease liabilities - non-current, net of discount | 441,338 | |
Other non-current liabilities | 148,751 | 280,471 |
Total liabilities | 20,381,202 | 22,679,218 |
Commitments and Contingencies (Note 17) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 200,000,000 shares authorized at March 31, 2019 and December 31, 2018, 28,616,633 shares issued and outstanding at March 31, 2019 and 28,585,449 shares issued and outstanding at December 31, 2018 | 28,616 | 28,585 |
Additional paid-in-capital | 172,386,803 | 172,086,909 |
Accumulated other comprehensive income (loss) | 6,339 | (3,453) |
Accumulated deficit | (156,390,825) | (151,019,979) |
Total stockholders’ equity | 16,030,933 | 21,092,062 |
Total liabilities and stockholders' equity | $ 36,412,135 | $ 43,771,280 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Inventory net allowance | $ 39,403 | $ 39,403 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 28,616,633 | 28,585,449 |
Common stock, shares outstanding | 28,616,633 | 28,585,449 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Total revenue | $ 3,202,825 | $ 4,158,652 |
Operating expenses: | ||
Cost of product and product-related services revenue | $ 2,045,527 | $ 1,137,063 |
Type of Cost, Good or Service [Extensible List] | htgm:ProductAndProductRelatedServicesMember | htgm:ProductAndProductRelatedServicesMember |
Selling, general and administrative | $ 4,400,866 | $ 5,657,832 |
Research and development | 2,074,748 | 2,589,286 |
Total operating expenses | 8,521,141 | 9,384,181 |
Operating loss | (5,318,316) | (5,225,529) |
Other income (expense): | ||
Interest expense | (233,967) | (182,517) |
Interest income | 181,437 | 133,163 |
Loss on extinguishment of Growth Term Loan | (105,064) | |
Total other income (expense) | (52,530) | (154,418) |
Net loss | $ (5,370,846) | $ (5,379,947) |
Net loss per share, basic and diluted | $ (0.19) | $ (0.22) |
Shares used in computing net loss per share, basic and diluted | 28,600,679 | 24,704,128 |
Product and Product-related Services | ||
Revenue: | ||
Total revenue | $ 2,662,505 | $ 1,733,546 |
Collaborative Development Services | ||
Revenue: | ||
Total revenue | $ 540,320 | $ 2,425,106 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (5,370,846) | $ (5,379,947) |
Other comprehensive income (loss), net of tax effect: | ||
Unrealized gain (loss) on short-term investments | 3,353 | (11,151) |
Foreign currency translation adjustment | 6,439 | |
Total other comprehensive income (loss) | 9,792 | (11,151) |
Comprehensive loss | $ (5,361,054) | $ (5,391,098) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) | Total | ATM Offering | Underwritten Public Offering | Common Stock | Common StockATM Offering | Common StockUnderwritten Public Offering | Additional Paid-In Capital | Additional Paid-In CapitalATM Offering | Additional Paid-In CapitalUnderwritten Public Offering | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Balance at Dec. 31, 2017 | $ (3,059,537) | $ 13,929 | $ 131,492,595 | $ (134,566,061) | |||||||
Balance, shares at Dec. 31, 2017 | 13,929,763 | ||||||||||
Exercise of stock options | 40,504 | $ 18 | 40,486 | ||||||||
Exercise of stock options, shares | 18,028 | ||||||||||
Stock-based compensation expense | 1,143,188 | 1,143,188 | |||||||||
Release of restricted stock awards | 270 | $ 270 | |||||||||
Release of restricted stock awards, shares | 269,551 | ||||||||||
Net share settlement of restricted stock award | (133,513) | $ (35) | (133,478) | ||||||||
Net share settlement of restricted stock award, shares | (34,769) | ||||||||||
Employee stock purchase plan expense | $ 14,453 | 14,453 | |||||||||
Issuance of common stock | $ 556,706 | $ 37,724,316 | $ 262 | $ 13,915 | $ 556,444 | $ 37,710,401 | |||||
Issuance of common stock, shares | 5,733,314 | 261,352 | 261,352 | 13,915,000 | |||||||
Issuance of common stock warrants in connection with MidCapTerm Loan | $ 74,000 | 74,000 | |||||||||
Net loss | (5,379,947) | (5,379,947) | |||||||||
Unrealized gain (loss) on short-term investments | (11,151) | $ (11,151) | |||||||||
Balance at Mar. 31, 2018 | 30,969,289 | $ 28,359 | 170,898,089 | (11,151) | (139,946,008) | ||||||
Balance, shares at Mar. 31, 2018 | 28,358,925 | ||||||||||
Balance at Dec. 31, 2018 | 21,092,062 | $ 28,585 | 172,086,909 | (3,453) | (151,019,979) | ||||||
Balance, shares at Dec. 31, 2018 | 28,585,449 | ||||||||||
Exercise of stock options | 51,570 | $ 22 | 51,548 | ||||||||
Exercise of stock options, shares | 21,871 | ||||||||||
Stock-based compensation expense | 241,233 | 241,233 | |||||||||
Release of restricted stock awards | 13 | $ 13 | |||||||||
Release of restricted stock awards, shares | 13,126 | ||||||||||
Net share settlement of restricted stock award | (9,685) | $ (4) | (9,681) | ||||||||
Net share settlement of restricted stock award, shares | (3,813) | ||||||||||
Employee stock purchase plan expense | 16,794 | 16,794 | |||||||||
Net loss | (5,370,846) | (5,370,846) | |||||||||
Unrealized gain (loss) on short-term investments | 3,353 | 3,353 | |||||||||
Foreign currency translation adjustment | 6,439 | 6,439 | |||||||||
Balance at Mar. 31, 2019 | $ 16,030,933 | $ 28,616 | $ 172,386,803 | $ 6,339 | $ (156,390,825) | ||||||
Balance, shares at Mar. 31, 2019 | 28,616,633 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Parenthetical) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
At the market offering, issuance costs | $ 17,000 |
Public offering issuance costs | $ 2,600,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities | ||
Net loss | $ (5,370,846) | $ (5,379,947) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 308,984 | 356,204 |
Accretion of discount on NuvoGen obligation | (3,414) | (2,952) |
Provision for excess inventory | 24,296 | 11,280 |
Amortization of Growth Term Loan discount and issuance costs | 62,951 | |
Loss on extinguishment of Growth Term Loan | 105,064 | |
Amortization of QNAH Convertible Note issuance costs | 3,364 | 3,363 |
Amortization of MidCap Credit Facility discount and issuance costs | 39,143 | 2,924 |
Stock-based compensation expense | 241,246 | 1,143,458 |
Employee stock purchase plan expense | 16,794 | 14,453 |
Amortization of operating lease right-of-use assets | 72,923 | |
Amortization of incentive from landlord | (35,500) | |
Accrued interest on available-for-sale securities investments | (72,698) | (66,195) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,662,828 | 3,351,907 |
Inventory | 103,272 | 127,224 |
Prepaid expenses and other | 9,777 | (21,494) |
Deferred offering costs | 2,953 | |
Accounts payable | (480,546) | (78,239) |
Accrued liabilities | (1,977,373) | (2,065,603) |
Contract liabilities | (55,246) | (233,078) |
Operating lease liabilities | (115,440) | |
Net cash used in operating activities | (5,592,936) | (2,701,227) |
Investing activities | ||
Purchase of property and equipment | (103,316) | (457,828) |
Sales, redemptions and maturities of available-for-sale securities | 12,800,000 | |
Purchase of available-for-sale securities | (8,099,573) | (25,070,165) |
Net cash provided by (used in) investing activities | 4,597,111 | (25,527,993) |
Financing activities | ||
Proceeds from MidCap Credit Facility | 7,000,000 | |
MidCap Credit Facility lender fees | (228,459) | |
Payments on Growth Term Loan | (1,684,626) | |
Payments for extinguishment of Growth Term Loan | (4,276,988) | |
Proceeds from public offering, net of underwriting discounts, commissions and costs of $2.6 million | 37,724,316 | |
Proceeds from ATM Offering, net | 556,706 | |
Payments on NuvoGen obligation | (463,686) | (185,574) |
Payments on financing leases | (13,782) | (20,786) |
Proceeds from exercise of stock options | 51,570 | 40,504 |
Taxes paid for net share settlement of restricted stock awards | (9,685) | (133,513) |
Payment of deferred offering costs | (30,175) | |
Net cash (used in) provided by financing activities | (465,758) | 38,791,580 |
Effect of exchange rates on cash | 4,063 | |
(Decrease) increase in cash, cash equivalents and restricted cash | (1,457,520) | 10,562,360 |
Cash, cash equivalents and restricted cash at beginning of year | 11,702,847 | 9,968,600 |
Cash, cash equivalents and restricted cash at end of period | 10,245,327 | 20,530,960 |
Supplemental disclosure of noncash investing and financing activities | ||
Fixed asset purchases payable and accrued at period end | 13,945 | 3,486 |
Adoption of ASC 842, Leases | 694,352 | |
Deferred offering costs payable and accrued at period end | 108,883 | |
Equipment purchased through capital leases | 31,340 | |
Debt issuance costs payable and accrued at period end | 193,931 | |
MidCap Term Loan fees and warrant discount | 389,000 | |
Supplemental cash flow information | ||
Cash paid for interest | $ 172,032 | $ 83,397 |
Consolidated Consolidated State
Consolidated Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Statement Of Cash Flows [Abstract] | |
Underwriting discounts, commissions and costs | $ 2.6 |
Description of Business, Basis
Description of Business, Basis of Presentation and Principles of Consolidation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business, Basis of Presentation and Principles of Consolidation | Note 1. Description of Business, Basis of Presentation and Principles of Consolidation HTG Molecular Diagnostics, Inc. (the “Company”) is a provider of instruments, reagents and services for molecular profiling applications. The Company derives revenue from sales of its HTG EdgeSeq instrument system and integrated research use only (RUO”) and molecular diagnostic (“MDx”) next-generation sequencing-based HTG EdgeSeq assays, from research services including sample processing and custom assay development and from collaborative development services. The Company operates in one segment and its customers are located primarily in the United States and Europe. For the three months ended March 31, 2019 approximately 27% of the Company’s revenue was generated from sales originated by customers located outside of the United States, compared with 79% for the three months ended March 31, 2018. Approximately 62% and 73% of the sales to customers located outside of the United States resulted from collaborative development services revenue generated from the Master Assay Development, Commercialization and Manufacturing Agreement (the “Governing Agreement”) with QIAGEN Manchester Limited (“QML”), a wholly owned subsidiary of QIAGEN N.V. (see Note 15), for the three months ended March 31, 2019 and 2018, respectively. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and reflect the accounts of the Company as of March 31, 2019 and for the three months ended March 31, 2019 and 2018. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“US GAAP”) for complete financial statements. The accompanying condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and the results of its operations and cash flows, as of and for the periods presented. The accompanying condensed consolidated balance sheet at December 31, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and disclosures required by US GAAP for annual financial statements. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2018, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 7, 2019. Principles of Consolidation The Company formed a French subsidiary, HTG Molecular Diagnostics France SARL (“HTG France”), in November 2018. The accompanying condensed consolidated financial statements include the accounts of the Company and this wholly owned subsidiary after elimination of intercompany transactions. Concentration Risks Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents, available-for-sale debt securities and uncollateralized accounts receivable. The Company maintains the majority of its cash balances in the form of cash deposits in bank checking and money market accounts in amounts in excess of federally insured limits. Management believes, based upon the quality of the financial institution, that the credit risk with regard to these deposits is not significant. The Company sells its instrument, related consumables, sample processing services, custom RUO assay design and collaborative development services primarily to biopharmaceutical companies, academic institutions and molecular labs. The Company routinely assesses the financial strength of its customers and credit losses have been minimal to date. The Company’s top two customers accounted for 57% and 17% of the Company’s total revenue for the three months ended March 31, 2019, compared with 59% and 9% of the Company’s total revenue for the three months ended March 31, 2018. The Company’s top four customers accounted for approximately 53%, 18%, 17% and 12% of the Company’s accounts receivable as of March 31, 2019. The Company’s top four customers accounted for approximately 44%, 27% and two customers accounting for 11% as of December 31, 2018. The Company currently relies on a single supplier to supply a subcomponent used in the HTG EdgeSeq processors. A loss of this supplier could significantly delay the delivery of processors, which in turn would materially affect the Company’s ability to generate revenue. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company’s significant estimates include revenue recognition, stock-based compensation expense, bonus accrual, lease liability, income tax valuation allowances and reserves, recovery of long‑lived assets, inventory obsolescence and inventory valuation. Actual results could materially differ from those estimates. Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies from those previously disclosed in the Company’s Annual Report on Form 10-K, filed with the SEC on March 7, 2019, other than the adoption of the Financial Accounting Standards Board “FASB”) issued Accounting Standards Codification (“ASC”) Topic 842, Leases Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed consolidated balance sheets that sum to the total of the same such amounts shown in the accompanying condensed consolidated statements of cash flows. March 31, 2019 2018 Cash and cash equivalents $ 6,975,080 $ 20,530,960 Restricted cash - non-current 3,270,247 — Total cash, cash equivalents and restricted cash shown in the accompanying condensed consolidated statements of cash flows $ 10,245,327 $ 20,530,960 Amounts included in restricted cash represent those required to be set aside in escrow under the terms of the MidCap Term Loan (see Note 8) to collateralize the payment that will be due upon maturity of the QNAH Convertible Note (see Note 15). The amounts will be released to the Company upon subsequent delivery of subordination documents for the QNAH Convertible Note to MidCap or conversion of the QNAH Convertible Note. If neither occurs, the amounts will be applied by the escrow agent to repay in full the QNAH Convertible Note at maturity (or in connection with a prepayment at the direction of the Company) subject to the terms of the MidCap Term Loan. Fair Value of Financial Instruments The carrying value of financial instruments classified as current assets and current liabilities approximate fair value due to their liquidity and short-term nature. Investments that are classified as available-for-sale are recorded at fair value, which was determined using quoted market prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. The carrying value of the MidCap Term Loan (see Note 8) is estimated to approximate its fair value as the interest rate approximates the market rate for debt with similar terms and risk characteristics. In October 2017, the Company received $3.0 million in gross proceeds from, and issued a subordinated convertible promissory note (the “QNAH Convertible Note”) in that principal amount to, QIAGEN North American Holdings, Inc. (“QNAH”). As of March 31, 2019, the estimated aggregate fair value of the QNAH Convertible Note is approximately $3.1 million, based on a discounted cash flow approach and utilizing an option pricing model to value the conversion feature, with key assumptions including expected volatility, discount rates, term and risk-free rates. The NuvoGen obligation is an obligation relating to an asset purchase transaction with a then-common stockholder of the Company. As of March 31, 2019, the estimated aggregate fair value of the NuvoGen obligation is approximately $5.3 million, determined using a Monte Carlo simulation with key assumptions including future revenue, volatility, discount and risk-free rates. The estimated fair values of the QNAH Convertible Note and the NuvoGen obligation represent Level 3 measurements. Leases Effective January 1, 2019, the Company accounts for its leases under ASC 842. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases, and are recorded on the consolidated balance sheet as both a right-of-use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right-of-use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term. For financing leases, interest on the lease liability and the amortization of the right-of-use asset results in front-loaded expense over the lease term. Variable lease expenses are recorded when incurred. Certain leasehold improvements constructed by the landlord of the Company’s Tucson, AZ facilities as an incentive for the Company to extend its leases are included in leasehold improvements in the consolidated balance sheets as of December 31, 2018. The total cost of the improvements constructed by the landlord of $710,000 was capitalized when construction was completed in February 2016 and is being amortized over the remaining term of the lease agreement. The incentive of $710,000 has been recognized as an offset to operating lease right-of-use asset in the accompanying condensed consolidated balance sheets as of March 31, 2019 as a result of the implementation of ASC 842 and was recognized as deferred rent within other current liabilities and other liabilities on the consolidated balance sheets as of December 31, 2018, in accordance with ASC Topic 840, Leases In calculating the right-of-use asset and lease liability, the Company elects to combine lease and non-lease components for all classes of assets currently under lease, including facilities and computer equipment. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term for these leases. The comparative information in these condensed consolidated financial statements has not been restated and continues to be reported under ASC Topic 840, Leases Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases, In June 2018, the FASB issued ASU No. 2018-07 , Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting . . In July 2017, the FASB issued ASU 2017-11, Accounting for Certain Financial Instruments with Down Round Features This new standard makes limited changes to previous guidance on classifying certain financial instruments as either liabilities or equity. The new standard was effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted, including adoption in an interim period. Adoption of this standard as of January 1, 2019 did not have an effect on the Company’s consolidated financial statements as the Company’s existing financial instruments did not have down round features. New Accounting Pronouncements The following are new FASB ASUs that have not been adopted by the Company as of March 31, 2019, grouped by their respective effective dates: January 1, 2020 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In November 2018, the FASB issued ASU No. 2018-18, which amended ASC 808, Collaborative Arrangements Revenue from Contracts with Customers |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 3. Inventory Inventory, net of allowance, consisted of the following as of the dates indicated: March 31, December 31, 2019 2018 Raw materials $ 687,340 $ 853,228 Work in process 209,200 168,937 Finished goods 282,501 284,444 Inventory, net $ 1,179,041 $ 1,306,609 The reserve for shrinkage and excess raw material inventory was $39,403 as of both March 31, 2019 and December 31, 2018. For the three months ended March 31, 2019, the Company recorded a net change in the inventory reserve of $0 compared to a net increase of $1,801 for the three months ended March 31, 2018, to adjust for estimated shrinkage and obsolescence. For the three months ended March 31, 2019, the Company recorded adjustments to the provision for excess inventory of $24,296 compared to $11,280 for the three months ended March 31, 2018. Adjustments in these periods to the allowance for estimated shrinkage, obsolescence and excess inventory have been included in cost of product and product-related services revenue in the accompanying condensed consolidated statements of operations. HTG EdgeSeq instruments at customer locations under evaluation agreements are included in finished goods inventory. Finished goods inventory under evaluation as of March 31, 2019 was $57,788 compared to $143,271 as of December 31, 2018. |
Fair Value Instruments
Fair Value Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Instruments | Note 4. Fair Value Instruments Financial assets and liabilities measured at fair value are classified in their entirety in the fair value hierarchy based on the lowest level input significant to the fair value measurement. The following table classifies the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018, respectively, in the fair value hierarchy: Balance at March 31, 2019 Level 1 Level 2 Level 3 Total Asset included in: Cash and cash equivalents Money market securities $ 6,726,037 $ — $ — $ 6,726,037 Investments available-for-sale at fair value U.S. government obligations 2,572,596 — — 2,572,596 Corporate debt securities — 15,484,077 — 15,484,077 Total $ 9,298,633 $ 15,484,077 $ — $ 24,782,710 Balance at December 31, 2018 Level 1 Level 2 Level 3 Total Asset included in: Cash and cash equivalents Money market securities $ 6,923,255 $ 998,400 $ — $ 7,921,655 Investments available-for-sale at fair value U.S. government obligations 6,031,515 — — 6,031,515 Corporate debt securities — 16,649,534 — 16,649,534 Total $ 12,954,770 $ 17,647,934 $ — $ 30,602,704 There are no other financial instruments subject to fair value measurement on a recurring basis. Transfers to and from Levels 1, 2 and 3 are recognized at the end of the reporting period. There were no transfers between levels for the three months ended March 31, 2019 or for the year ended December 31, 2018. Level 1 instruments include investments in money market funds, U.S. Treasuries and U.S. government agency obligations. These instruments are valued using quoted market prices for identical unrestricted instruments in active markets. The Company defines active markets for debt instruments based on both the average daily trading volume and the number of days with trading activity. Level 2 instruments include money market and corporate debt securities. Valuations of Level 2 instruments can be verified to quoted prices, recent trading activity for identical or similar instruments, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. Consideration is given to the nature of the quotations (e.g., indicative or firm) and the relationship of recent market activity to the prices provided from alternative pricing sources. Fair values of these assets and liabilities are based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. These valuation models and analytical tools use market pricing or similar instruments that are both objective and publicly available, including matrix pricing or reported trades, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids and/or offers. The Company did not adjust any of the valuations received from these third parties with respect to any of its Level 1 or 2 securities for the three-month period ended March 31, 2019 or the year-ended December 31, 2018 and did not have any Level 3 financial assets or liabilities during either of these periods. |
Available for Sale Securities
Available for Sale Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Available-for-Sale Securities | Note 5. Available-for-Sale Securities The Company’s portfolio of available-for-sale securities consists of U.S. Treasuries and high credit quality corporate debt securities. The following is a summary of the Company’s available-for-sale securities at March 31, 2019 and December 31, 2018: March 31, 2019 Gross Gross Fair Value Amortized Unrealized Unrealized (Net Carrying Cost Gains Losses Amount) U.S. Treasury securities $ 2,571,615 $ 981 $ — $ 2,572,596 Corporate debt securities 15,484,077 — — 15,484,077 Total available-for-sale securities $ 18,055,692 $ 981 $ — $ 18,056,673 December 31, 2018 Gross Gross Fair Value Amortized Unrealized Unrealized (Net Carrying Cost Gains Losses Amount) U.S. Treasury securities $ 6,032,844 $ — $ (1,329 ) $ 6,031,515 Corporate debt securities 16,650,513 — (979 ) 16,649,534 Total available-for-sale securities $ 22,683,357 $ — $ (2,308 ) $ 22,681,049 There were no gross unrealized losses relating to the Company’s available-for-sale securities investments as of March 31, 2019. The net adjustment to unrealized holding gains (losses) on available-for-sale securities, net of tax in other comprehensive income totaled $3,353 and ($11,151) for the three months ended March 31, 2019 and 2018, respectively. Contractual maturities of debt investment securities at March 31, 2019 are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. Under 1 Year 1 to 2 Years Total U.S. Treasury securities $ 2,572,596 $ — $ 2,572,596 Corporate debt securities 15,484,077 — 15,484,077 Total available-for-sale securities $ 18,056,673 $ — $ 18,056,673 For debt securities, the Company determines whether it intends to sell or if it is more likely than not that it will be required to sell impaired securities. This determination considers current and forecasted liquidity requirements, regulatory and capital requirements and securities portfolio management. For all impaired debt securities for which there was no intent or expected requirement to sell, the evaluation considers all available evidence to assess whether it is likely the amortized cost value will be recovered. The Company conducts a regular assessment of its debt securities with unrealized losses to determine whether securities have other-than-temporary impairment considering, among other factors, the nature of the securities, credit rating or financial condition of the issuer, the extent and duration of the unrealized loss, expected cash flows of underlying collateral, market conditions and whether the Company intends to sell or it is more likely than not that the Company will be required to sell the debt securities. The Company did not have any other-than-temporary impairment in its available-for-sale securities at March 31, 2019. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 6. Property and Equipment Property and equipment, net, consists of the following as of the dates indicated: March 31, December 31, 2019 2018 Furniture & fixtures $ 852,132 $ 791,973 Leasehold improvements 1,936,495 1,930,300 Equipment used in manufacturing 2,298,377 2,297,797 Equipment used in research & development 1,456,954 1,456,954 Equipment used in the field 153,720 125,253 Software 373,683 373,683 Construction in progress — 19,246 7,071,361 6,995,206 Less: accumulated depreciation and amortization (4,930,254 ) (4,621,416 ) $ 2,141,107 $ 2,373,790 Depreciation and leasehold improvement amortization expense was $308,984 and $356,204 for the three months ended March 31, 2019 and 2018, respectively. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | Note 7. Accrued Liabilities Accrued liabilities consist of the following as of the dates indicated: March 31, December 31, 2019 2018 Accrued employee bonuses $ 289,107 $ 2,150,418 Payroll and employee benefit accruals 547,106 698,969 Accrued professional fees 97,644 60,400 Accrued interest 179,528 156,492 Other accrued liabilities 216,301 292,186 $ 1,329,686 $ 3,358,465 |
Debt Obligations
Debt Obligations | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Note 8. Debt Obligations Growth Term Loan To tal amortization expense for warrant, final fee and original issuance discounts in connection with the growth capital term loans under the Loan and Security Agreement dated August 22, 2014 between the Company and Oxford Finance, LLC and Silicon Valley Bank (the “Growth Term Loan”) was $0 and $59,969 for the three months ended March 31, 2019 and 2018, respectively. Deferred financing cost amortization expense relating to the Growth Term Loan was $0 and $2,982 for the three months ended March 31, 2019 and 2018, respectively. The amortization expense is included in interest expense in the accompanying condensed consolidated statements of operations. The Company recorded no discounts associated with the Growth Term Loan in the accompanying condensed consolidated balance sheets as of both March 31, 2019 and December 31, 2018, respectively. Extinguishment of Growth Term Loan upon MidCap Credit Facility Closing In March 2018, the Company repaid all principal and interest amounts outstanding under the Growth Term Loan in an aggregate amount equal to approximately $4.3 million, including collateral agent legal fees and prepayment fees. The repayment was funded with net proceeds from the MidCap Credit Facility (see description of the MidCap Credit Facility below). As a result of the repayment, the Company recorded a loss on extinguishment of the Growth Term Loan of $105,064 for the three months ended March 31, 2018, including remaining unamortized discounts of $67,272 and prepayment and other Growth Term Loan lender fees in the accompanying condensed consolidated statements of operations for the three months ended March 31, 2018. MidCap Credit Facility On March 26, 2018 (the “MidCap Closing Date”), the Company entered into a Credit and Security Agreement (Term Loan) (the “MidCap Term Loan”) and a Credit and Security Agreement (Revolving Loan) (the “MidCap Revolving Loan” and together with the MidCap Term Loan, the “MidCap Credit Facility”) with MidCap Financial Trust, as agent. MidCap Financial Trust subsequently assigned its rights and obligations as agent to MidCap Funding IV Trust. There have been no significant modifications to terms and conditions of the MidCap Credit Facility since the disclosures made in the Company’s Annual Report on Form 10-K, filed with the SEC on March 7, 2019. The remaining principal repayments due under the MidCap Term Loan as of March 31, 2019 are as follows for each fiscal year: 2019 $ — 2020 1,750,000 2021 2,333,333 2022 2,333,333 2023 583,334 Total MidCap Term Loan payments 7,000,000 Less discount and deferred financing costs (575,185 ) Plus final fee premium 315,000 Total MidCap Term Loan, net $ 6,739,815 The Company recognized approximately $575,185 and $610,359 of debt discount associated with the MidCap Term Loan, resulting from fees and debt issuance costs, in MidCap Term Loan payable – net of discount and debt issuance costs in the accompanying condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018, respectively. Costs incurred in connection with the issuance of the Midcap Revolving Loan of $63,099 and $67,068 are presented as MidCap Revolving Loan costs in the accompanying condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018. Amortization of the debt discount associated with the MidCap Term Loan was approximately $35,174 and $2,701 for the three months ended March 31, 2019 and 2018, respectively. Amortization of deferred MidCap Revolving Loan costs was $3,969 and $223 for the three months ended March 31, 2019 and 2018, respectively. Amortization of both the debt discount and the revolving loan costs is included in interest expense in the accompanying condensed consolidated statements of operations. Other Debt Obligations to Related Parties Refer to Note 15 below for discussion of debt obligation to related parties. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | Note 9. Revenue from Contracts with Customers Product and Product-related Services Revenue The Company had product and product-related services revenue consisting of revenue from the sale of RUO and MDx instruments and consumables and the use of the HTG EdgeSeq proprietary technology to process samples and design custom RUO assays for the three months ended March 31, 2019 and 2018 as follows: Three Months Ended March 31, 2019 2018 Product revenue: RUO instruments $ 47,866 $ 11,358 MDx instruments 92,550 — RUO consumables 304,231 205,813 MDx consumables 96,587 46,199 Total product revenue 541,234 263,370 Product-related services revenue: Custom RUO assay development 367,859 127,027 RUO sample processing 1,753,412 1,343,149 Total product-related services revenue 2,121,271 1,470,176 Total product and product-related services revenue $ 2,662,505 $ 1,733,546 Because the Company’s agreements for product and product-related services revenue have an expected duration of one year or less, the Company has elected the practical expedient in ASC 606-10-50-14(a) to not disclose information about its remaining performance obligations. Sale of Instruments and Consumables The delivery of each instrument and related installation and calibration are considered to be a single performance obligation, as the HTG EdgeSeq instrument must be professionally installed and calibrated prior to use. Instrument product revenue is generally recognized upon installation and calibration of the instrument by field service engineers, which represents the point at which the customer has the ability to use the instrument and has accepted the asset. Installation generally occurs within one month of instrument shipment. The delivery of each consumable is a separate performance obligation. Consumables revenue is recognized upon transfer of control, which represents the point when the customer has legal title and the significant risks of ownership of the asset. The Company’s standard terms and conditions provide that no right of return exists for instruments and consumables, unless replacement is necessary due to delivery of defective or damaged product. Customer payment terms vary but are typically between 30 and 90 days of revenue being earned from shipment or delivery, as applicable. Shipping and handling fees charged to the Company’s customers for instruments and consumables shipped are included in the accompanying condensed consolidated statements of operations as part of product and product-related services revenue. Shipping and handling costs for sold products shipped to the Company’s customers are included in the accompanying condensed consolidated statements of operations as part of cost of product and product-related services revenue. For sales of consumables in the United States, standard delivery terms are FOB shipping point, unless otherwise specified in the customer contract, reflecting transfer of control to the customer upon shipment. The Company has elected the practical expedient to account for shipping and handling as activities to fulfill the promise to transfer the consumables. Product revenue includes four categories of instrument and consumable revenue, all accounted for under the policies outlined above. RUO instrument and consumable revenue includes the sale of our RUO profiling products, including instruments, instrument support contracts and RUO assay kits to biopharmaceutical companies, academic research centers and molecular testing laboratories to be used for research use only. MDx instrument and consumable revenue is revenue generated from the sale of CE/IVD labeled diagnostic products and the sale of our RUO instrument and consumable products to customers using these products for diagnostic purposes. The Company recognized revenue of $68,820 and $0 of product revenue from performance obligations that were satisfied in previous periods for the three months ended March 31, 2019 and 2018, respectively. Sample Processing The Company also provides sample preparation and processing services and molecular profiling of retrospective cohorts for its customers through its VERI/O laboratory, whereby the customer provides samples to be processed using HTG EdgeSeq technology specified in the order. Customers are charged a per sample fee for sample processing services which is recognized as revenue upon delivery of a data file to the customer showing the results of testing and completing delivery of the agreed upon service. This is when the customer can use and benefit from the results of testing and the Company has the present right to payment. Custom RUO Assay Design and Related Agreements The Company enters into custom RUO assay design agreements that may generate up-front fees and subsequent payments that might be earned upon completion of design process phases. The Company measures progress toward complete satisfaction of its performance obligation to perform custom RUO assay design using an output method based on the costs incurred to date compared to total expected costs, as this is representative of the delivery of outputs under the arrangements and the best measure of progress. However, because in most instances the assay development fees are contingent upon completion of each phase of the design project and the decision of the customer to proceed to the next phase, the amount to be included in the transaction price and recognized as revenue is limited to that which the customer is contractually obligated to pay upon completion of that phase, which is when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company recognized revenue of approximately $41,137 and $0 of custom RUO assay design revenue from performance obligations that were satisfied in previous periods for the three months ended March 31, 2019 and 2018, respectively. Collaborative Development Services Revenue Three Months Ended March 31, 2019 2018 Collaborative development services $ 540,320 $ 2,425,106 See Note 15 for discussion of collaborative development services contracts with related parties. There was no collaborative development services revenue generated from the Company’s companion diagnostic development services agreements with non-related party customers for the three months ended March 31, 2019 or 2018. Contract Liabilities The Company receives up-front payments from customers for custom RUO assay design services, and occasionally for sample processing services. Payments for instrument extended warranty contracts are made in advance as are payments for certain agreed-upon capital purchases required for collaborative development service projects. The Company recognizes such up-front payments as a contract liability. The contract liability is subsequently reduced at the point in time that the data file is delivered for sample processing services or as the Company satisfies its performance obligations over time for RUO assay design, collaborative development and extended warranty services. Contract liabilities of $355,702 and $410,947 were included in contract liabilities – current and other non-current liabilities in the accompanying condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018, respectively. The Company expects approximately $246,009 of deferred revenue to be realized within the next twelve months and the remaining $109,693 to be realized prior to March 31, 2021. Changes in the Company’s contract liability were as follows as of the dates indicated: Product Revenue Custom RUO Assay Design Sample Processing Total Contract Liability Balance at January 1, 2019 $ 116,547 $ 50,000 $ 244,400 $ 410,947 Deferral of revenue 50,667 11,685 48,327 110,679 Recognition of deferred revenue (36,544 ) (11,685 ) (117,695 ) (165,924 ) Balance at March 31, 2019 $ 130,670 $ 50,000 $ 175,032 $ 355,702 Product Revenue Custom RUO Assay Design Sample Processing Collaborative Development Services Total Contract Liability Balance at January 1, 2018 $ 39,426 $ 197,606 $ 490,536 $ 110,317 $ 837,885 Deferral of revenue 55,476 135,250 53,770 — 244,496 Recognition of deferred revenue (65,345 ) (127,027 ) (261,561 ) (23,639 ) (477,572 ) Balance at March 31, 2018 $ 29,557 $ 205,829 $ 282,745 $ 86,678 $ 604,809 |
Other Agreements
Other Agreements | 3 Months Ended |
Mar. 31, 2019 | |
Other Agreements [Abstract] | |
Other Agreements | Note 10. Other Agreements NuvoGen Obligation Pursuant to the Company’s asset purchase agreement with NuvoGen Research, LLC (“NuvoGen”), as amended, the Company is obligated to pay NuvoGen the greater of $400,000 or 6% of annual revenue until the obligation is paid in full. In addition to fixed quarterly payments of $100,000, revenue-based payments of $92,169 and $363,686 were payable as of March 31, 2019 and December 31, 2018, respectively. There have been no significant modifications to the terms and conditions of the Company’s NuvoGen obligation since the disclosures made in the Company’s Annual Report on Form 10-K, filed with the SEC on March 7, 2019. Minimum payments to be made in 2019 include $92,169 of revenue-based payments payable as of March 31, 2019, and an estimate of additional revenue-based payments to be made throughout the remainder of 2019 relating to revenue generated in the second, third and fourth quarters of 2019 using actual revenue generated in the same quarters in 2018. Minimum payments for the remaining years include only the minimum payments for each year. Actual payments could be significantly more than provided in the table, to the extent that 6% of the Company’s annual revenue in 2020 and beyond exceeds $400,000: 2019 $ 1,232,884 2020 400,000 2021 400,000 2022 400,000 2023 400,000 2024 and beyond 3,590,051 Total NuvoGen obligation payments 6,422,935 Plus interest accretion 102,718 Total NuvoGen obligation, net $ 6,525,653 The Company has recorded the obligation at the estimated present value of the future payments using a discount rate of 2.5%, the Company’s estimate of its effective borrowing rate for similar obligations. The unamortized debt discount was $(102,718) and $(106,132) at March 31, 2019 and December 31, 2018, respectively. Discount accreted during the three months ended March 31, 2019 and 2018 was $(3,414) and $(2,952), respectively. Illumina, Inc. Agreement In June 2017, the Company entered into an Amended and Restated Development and Component Supply Agreement with Illumina, Inc. (“Illumina”), effective May 31, 2017 (“Restated Agreement”), which amended and restated the parties’ IVD Test Development and Component Supply Agreement entered into in October 2014 (“Original Agreement”). The Restated Agreement provides for the development and worldwide commercialization by the Company of nuclease-protection-based RNA or DNA profiling tests (“IVD test kits”) for use with Illumina’s MiSeqDx sequencer in the field of diagnostic oncology testing in humans (“Field”). See Note 18 for discussion of the April 2019 amendment to the Restated Agreement. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Note 11. Net Loss Per Share Basic loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the reporting period. Diluted loss per common share is computed similar to basic loss per The following table provides the numerator and denominator used in computing basic and diluted net loss per share for the periods indicated: Three Months Ended March 31, 2019 2018 Numerator: Net loss $ (5,370,846 ) $ (5,379,947 ) Denominator: Weighted-average shares outstanding-basic and diluted 28,600,679 24,704,128 Net loss per share, basic and diluted $ (0.19 ) $ (0.22 ) The following outstanding securities were excluded from the computation of diluted net loss per share for the periods presented because their effect would have been anti-dilutive: Three Months Ended March 31, 2019 2018 Options to purchase common stock 1,977,787 1,486,559 Common stock warrants 236,915 237,846 Restricted stock units 229,581 16,666 QNAH convertible note 783,339 755,178 |
Warrants
Warrants | 3 Months Ended |
Mar. 31, 2019 | |
Proceeds From Issuance Of Preferred Stock Preference Stock And Warrants [Abstract] | |
Warrants | Note 12. Warrants In connection with certain of its redeemable convertible preferred stock issuances, convertible debt financings and other financing arrangements, the Company has issued warrants for shares of its common stock and various issues of its redeemable convertible preferred stock which have since been converted to common stock warrants. There have been no significant modifications or financial events relating to the warrants that were issued prior to December 31, 2018 since the disclosures made by the Company in its Annual Report on Form 10-K, filed with the SEC on March 7, 2019, other than the expiration of a warrant for 931 shares of common stock, in accordance with its terms, in March 2019. The following table shows the common stock warrants outstanding as of March 31, 2019: Shares of Common Exercise Price/Share Expiration Date 28,713 $ 23.51 2024 144,772 14.00 2022 45,307 2.76 2026 18,123 7.73 2028 |
Stockholders Deficit
Stockholders Deficit | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Deficit | Note 13. Stockholders’ Deficit Public Offerings ATM Offering In April 2017, the Company entered into a Controlled Equity Offering Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co. (“Cantor”), as sales agent, pursuant to which the Company had the right to offer and sell, from time to time, through Cantor, shares of the Company’s common stock, par value $0.001 per share, by any method deemed to be an “at the market offering” as defined in Rule 415 under the Securities Act of 1933, as amended (the “Cantor ATM Offering”). In April 2017, the Company also filed a prospectus supplement (File No. 333-216977) with the SEC relating to the offer and sale of up to $20.0 million of common stock in the Cantor ATM Offering. In June 2017, the Company filed a first amendment to the prospectus supplement with the SEC to increase the amount of common stock that could be offered and sold in the Cantor ATM Offering under the Sales Agreement to $40.0 million in the aggregate, inclusive of the common stock previously sold in the Cantor ATM Offering prior to the date of the first amendment. In January 2018, the Company filed a second amendment to the prospectus supplement with the SEC to decrease the amount of common stock that could be offered and sold in the Cantor ATM Offering under the Sales Agreement to $23.0 million in the aggregate, inclusive of the common stock sold in the Cantor ATM Offering prior to the date of the second amendment. In February 2018, the Company and Cantor mutually agreed to terminate the Sales Agreement. Prior to termination of the Sales Agreement, the Company sold 5,733,314 shares of common stock under the ATM Offering at then-market prices for total gross proceeds of approximately $21.1 million, including 261,352 shares of common stock sold for gross proceeds of $0.6 million during the first quarter ended March 31, 2018. After $0.6 million of sales commissions and $0.2 million of other offering expenses paid by the Company in connection with the ATM Offering, the Company’s aggregate net proceeds from the ATM Offering were approximately $20.2 million. Sales commissions and offering expenses have been recorded as a reduction of proceeds received in arriving at the amount recorded in additional paid-in capital in the accompanying balance sheets as of December 31, 2018. There were no proceeds from the ATM Offering for the quarter ended March 31, 2019. Underwritten Public Offering In January 2018, the Company completed an underwritten public offering of 13,915,000 shares of its common stock at a price of $2.90 per share, including 1,815,000 shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional shares. The Company sold its common stock through an underwriting agreement with Leerink Partners LLC and Cantor as representatives of the underwriters for the offering. The aggregate net proceeds to the Company from the offering were approximately $37.7 million, after deducting the underwriting discounts and commissions and offering expenses, for the year ended December 31, 2018. There were no proceeds from this offering for the quarter ended March 31, 2019. Cowen ATM Offering In March 2019, the Company entered into a Controlled Equity Offering Sales Agreement with Cowen and Company (“Cowen”), as sales agent, pursuant to which the Company has the right to offer and sell, from time to time, through Cowen, shares of the Company’s common stock, par value $0.001 per share, having an aggregate offering price of up to $40.0 million, by any method deemed to be an “at the market offering” as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended (the “Cowen ATM Offering”). The shares will be offered and sold pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-229045. As of March 31, 2019, there have been no shares sold under the Cowen ATM Offering and costs in connection with the S-3 offering of approximately $0.2 million have been capitalized as deferred offering costs in the accompanying condensed consolidated balance sheets as of March 31, 2019. Stock-based Compensation A summary of the Company’s stock option activity for the three months ended March 31, 2019 is as follows: Number of Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance at December 31, 2018 2,047,237 $ 3.07 7.6 $ 366,007 Granted — — Exercised (21,871 ) 2.36 $ 8,306 Forfeited (36,797 ) 3.15 Expired/Cancelled (10,782 ) 4.81 Balance at March 31, 2019 1,977,787 $ 3.07 7.5 $ 320,766 Exercisable at March 31, 2019 1,288,938 $ 2.93 6.6 $ 307,101 As of March 31, 2019, there was total unrecognized compensation expense of $1,427,673 related to unvested stock options, which the Company expects to recognize over a weighted-average period of approximately 2.89 years. A summary of restricted stock unit (“RSU”) activity for the three months ended March 31, 2019 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Per Share Balance at December 31, 2018 227,707 $ 3.39 Granted 15,000 2.31 Released (13,126 ) 3.40 Balance at March 31, 2019 229,581 $ 3.32 Vested and unissued at March 31, 2019 15,001 $ 3.26 Vested and unissued awards at March 31, 2019 represents RSU awards granted on August 16, 2018 for which the vesting date was March 31, 2019, but for which issuance of the awards occurred on the next business day, April 1, 2019. Unrecognized compensation expense related to the remaining unvested RSUs was $668,219 at March 31, 2019, which the Company expects to recognize over a weighted-average remaining service period of 3.05 years. Stock-based compensation expense recorded in the accompanying condensed consolidated statements of operations for the three months ended March 31, 2019 and 2018 was as follows: Three Months Ended March 31, 2019 2018 Selling, general and administrative $ 181,981 $ 1,101,992 Research and development 48,450 30,909 Cost of product and product-related services revenue 10,815 10,557 $ 241,246 $ 1,143,458 Stock-based compensation expense for the three months ended March 31, 2018 included $1.0 million of selling, general and administrative compensation expense relating to the issuance of 259,551 shares under RSUs granted to the Company’s executive officers in January 2018 at a grant date fair value of $3.84 per share. The RSUs vested in full on January 29, 2018. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 14. Leases Operating Leases T he Company leases office space and equipment under agreements classified as operating leases that expire on various dates through 2021. The Company’s two most significant active leases as of March 31, 2019 are for office and manufacturing space in Tucson, Arizona, which expire in 2021. These leases do not include any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. Certain of the Company’s leases include renewal options and escalation clauses; renewal options have not been included in the calculation of the lease liabilities and right-of-use assets as the Company is not reasonably certain to exercise the options. Annual rent increases are included in the calculation of the operating lease right-of-use assets. Variable expenses generally represent the Company’s share of the landlord’s operating expenses and are recorded when incurred. Incremental borrowing rates used to discount future lease payments in calculating lease liabilities were estimated by reference to the rate on the Company’s MidCap Term Loan. The Company does not have any operating lease arrangements where it acts as a lessor. The components of lease cost for operating leases were as follows: March 31, 2019 Operating leases Operating lease cost $ 96,181 Variable lease cost 21,451 Operating lease expense 117,632 Short-term lease rent expense 1,497 Total rent expense $ 119,129 The table below summarizes other information related to the Company’s operating leases: March 31, 2019 Operating cash flows from operating leases $ 136,272 Right-of-use assets exchanged for operating lease liabilities $ 1,033,107 Weighted-average remaining lease term – operating leases 1.9 Weighted-average discount rate – operating leases 9.6 % As of March 31, 2019, remaining maturities of our operating leases, excluding short-term leases, are as follows: 2019 $ 409,868 2020 544,349 2021 54,541 Total 1,008,758 Less present value discount (88,616 ) Operating lease liabilities, net $ 920,142 The Company entered into two additional operating leases for office space that commence on April 1, 2019 and August 15, 2019. Lease liabilities and the associated right-of-use assets for these leases are approximately $900,000 for one and $123,000 for the other and are not included in the Company’s lease liabilities or right-of-use assets at March 31, 2019. Prior to the Company’s adoption of ASC 842, rent expense was $148,097 for the three months ended March 31, 2018, recorded on a straight-line basis. Lease commitments as presented under ASC 840 as of December 31, 2018 were as follows: 2019 $ 525,745 2020 528,225 2021 53,907 2022 10,768 2023 10,768 2024 and beyond 43,073 1,172,486 Financing Leases The Company has a number of computer equipment leases that are classified as financing leases. Incremental borrowing rates used to discount future lease payments in calculating lease liabilities were estimated by reference to information received from the Company’s bankers regarding estimated current borrowing rates for non-collateralized loans. March 31, 2019 Financing leases Amortization of right-of-use assets $ 14,696 Interest on lease liability 2,146 Total financing lease cost $ 16,842 The table below summarizes other information related to the Company’s financing leases: March 31, 2019 Weighted-average remaining lease term – financing leases 2.3 Weighted-average discount rate – financing leases 9.77 % As of March 31, 2019, remaining maturities of our financing leases are as follows: 2019 $ 36,206 2020 33,992 2021 12,275 2022 4,636 2023 2,316 Total 89,425 Less present value discount (10,761 ) Financing lease liabilities, net $ 78,664 At March 31, 2019, the Company had financing lease liabilities net of discount of $78,664, of which $39,604 was included in other current liabilities and $39,060 was included in other non-current liabilities, and financing right-of-use assets of $77,627, which were included in property and equipment, net, in the accompanying condensed consolidated balance sheet. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 15. Related Party Transactions Master Assay Development, Commercialization and Manufacturing Agreement In November 2016, the Company entered into the Governing Agreement, which creates the framework for QML and the Company to combine their technological and commercial strengths to offer biopharmaceutical companies a complete NGS-based solution for the development, manufacture and commercialization of companion diagnostic assays. Under the Governing Agreement, the parties jointly seek companion diagnostic programs with biopharmaceutical companies, QML enters into sponsor project agreements with interested biopharmaceutical companies for specified projects, and QML and the Company enter into statements of work (each, an “SOW”), which set forth the rights and obligations of QML and the Company with respect to each project. There have been no significant modifications or financial events relating to the Governing Agreement since the disclosures made by the Company in its Annual Report on Form 10‑K, filed with the SEC on March 7, 2019, other than with regard to the fourth amendment of the second statement of work under the Governing Agreement (“SOW Two”) discussed below. The Company has determined that SOW One, SOW Two and SOW Three (each defined below) are collaborative arrangements and that QML meets the definition of a customer under ASC 606. Additionally, each SOW is a separate contract with a single performance obligation to provide development services. Under each SOW, QML pays the Company a monthly fee for development work performed by the Company and its subcontractors (collectively, the “Monthly Fee”). The Monthly Fee is based on the employee and materials costs incurred during the month, which is subject to significant variability from period to period and unknown until the costs are incurred. Therefore, the Monthly Fee, which is based on use of hours and costs as a measure of progress, is included in the transaction price and recognized as revenue over time when the costs are incurred, and the Monthly Fee is billed to QML. It is at this time that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company and QML also will share any net profits resulting from performance of the development work as determined pursuant to the Governing Agreement. Such profit sharing payment(s) is deemed to be variable consideration using the expected value method and is included in the transaction price upon completion of the respective SOW deliverables, acceptance of corresponding deliverables, and the mutual agreement by QML and the Company on the calculation of net profit, which is when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Because each SOW has an expected duration of one year or less, the Company has elected the practical expedient in ASC 606-10-50-14(a) to not disclose information about its remaining performance obligations for each SOW. Statement of Work No. One In June 2017, the Company and QML entered into the first statement of work under the Governing Agreement, which has been twice amended in December 2017 and March 2018 (collectively, “SOW One”). SOW One addressed the activities of the Company and QML in support of the development and potential commercialization of a next generation sequencing-based companion diagnostic assay that was the subject of a sponsor project agreement between QML and a biopharmaceutical company (“Pharma One”). In May 2018, SOW One was terminated by QML as a result of Pharma One’s termination of the development project. The Company discontinued development activities related to the project following wind down activities completed in the second quarter of 2018. Revenue of $1,318,718 was included in the accompanying condensed consolidated statements of operations for the three months ended March 31, 2018. Accounts receivable relating to SOW One of $1,298,079 remained in the accompanying condensed consolidated balance sheets as of March 31, 2018. Costs relating to development activities conducted by the Company pursuant to SOW One of $1,046,121 have been included in research and development expense in the accompanying condensed consolidated statements of operations for the three months ended March 31, 2018. There was no revenue or related costs or accounts receivable relating to SOW One in the accompanying condensed consolidated statements of operations or balance sheets for the period ended March 31, 2019. Statement of Work No. Two In October 2017, the Company and QML entered into the second statement of work under the Governing Agreement (“SOW Two”), which was made effective as of June 2, 2017 (“Onset Date”). The Company and QML amended SOW Two twice in August 2018 and two additional times, in September 2018 and in January 2019. SOW Two addresses development activities conducted by the Company and QML since the Onset Date and those expected to be further conducted by the parties in connection with what is expected to be a multi-stage project leading to the potential development and commercialization of an NGS-based companion diagnostic assay in support or one or more therapeutic development and commercialization programs for a third-party biopharmaceutical company. The initial-phase investigational-use-only (“IUO”) development activities under SOW Two have been completed and the first three amendments relate to next phases, which include the use of the IUO assay developed in the initial-phase in a retrospective clinical trial and in additional disease indications. The fourth amendment of SOW Two, effective as of February 5, 2019, contemplates the use of the IUO assay in multiple biopharmaceutical company clinical trials and additional development activities which potentially be included in a future companion diagnostic regulatory submission. Revenue of $257,699, relating to SOW Two Monthly Fees, has been included in collaborative development services revenue in the accompanying condensed consolidated statements of operations for the three months ended March 31, 2019, compared to revenue of $610,991, relating to SOW Two Monthly Fees, for the three months ended March 31, 2018. Accounts receivable relating to SOW Two of $257,699 and $1,007,950 remained in the accompanying condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018, respectively. Costs relating to development activities conducted by the Company pursuant to SOW Two of $209,029 and $343,266 have been included in research and development expense in the accompanying condensed consolidated statements of operations for the three months ended March 31, 2019 and 2018, respectively. Statement of Work No. Three In January 2018, the Company and QML entered into a third statement of work under the Governing Agreement (“SOW Three”) and amended SOW Three in September 2018. SOW Three relates to development activities for a next generation sequencing-based clinical-trial assay (“SOW Three Project”) in connection with a sponsor project agreement between QML and a pharmaceutical company (“Pharma Three”). Initial assay development activities under SOW Three have been completed, and the first amendment to SOW Three provides for the development of an IUO assay, subsequent retrospective testing of clinical trial samples, design verification and, subject to satisfactory achievement of relevant performance and regulatory milestones, regulatory submissions in the United States and European Union necessary for the commercialization of a companion diagnostic for a corresponding Pharma Three drug. Revenue of $282,621, relating to SOW Three Monthly Fees, has been included in collaborative development services revenue in the accompanying condensed consolidated statements of operations for the three months ended March 31, 2019, compared to revenue of $348,906, relating to SOW Three Monthly Fees and $146,491 relating to SOW Three profit sharing payments for the three months ended March 31, 2018. Accounts receivable relating to SOW Three of $131,836 and $363,869 remained in the accompanying condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018, respectively. Costs relating to development activities conducted by the Company pursuant to SOW Three of $218,575 and $226,855 have been included in research and development expense in the accompanying condensed consolidated statements of operations for the three months ended March 31, 2019 and 2018, respectively. QNAH Convertible Note Agreement In October 2017, the Company issued a subordinated convertible promissory note to QNAH in the principal amount of $3.0 million against receipt of cash proceeds equal to such principal amount. There have been no significant modifications or financial events relating to QNAH Convertible Note since disclosures made by the Company in its Annual Report on Form 10-K, filed with the SEC on March 7, 2019). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16. Commitments and Contingencies Legal Matters The Company’s industry is characterized by frequent claims and litigation, including claims regarding intellectual property and product liability. As a result, the Company may be subject to various legal proceedings from time to time. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors. Any current litigation is considered immaterial and counter claims have been assessed as remote. Product Warranty The following is a summary of the Company’s general product warranty reserve for the periods indicated: Three Months Ended March 31, 2019 2018 Beginning balance $ 63,461 $ 37,156 Cost of warranty claims (30,347 ) (2,247 ) Increase in warranty reserve 32,817 752 Ending balance $ 65,931 $ 35,661 Warranty reserve is included in accrued liabilities in the accompanying condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018. Expense relating to the recording of this reserve is recorded in cost of product and product-related services revenue within the accompanying condensed consolidated statements of operations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17. Subsequent Events On April 23, 2019, the Company and Illumina entered into the First Amendment to the Restated Agreement (see Note 10), effective as of April 3, 2019. The First Amendment expands the scope of the Field defined in the Restated Agreement to include diagnostic testing in humans for (i) autoimmune disorders and diseases, (ii) cardiovascular disorders and diseases, and (iii) fibrosis disorders and diseases ((i)-(iii) together, the “Other Fields”). The Company and Illumina will continue the development plans that have been previously entered into under the Restated Agreement, and the Company may, at its discretion, submit additional development plans for IVD test kits in the Field to Illumina for its approval, not to be unreasonably withheld. In addition, Illumina will consider requests for additional development plans for IVD test kits in the Other Fields in good faith, but Illumina may accept or reject such requests in its sole and absolute discretion. |
Description of Business, Basi_2
Description of Business, Basis of Presentation and Principles of Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and reflect the accounts of the Company as of March 31, 2019 and for the three months ended March 31, 2019 and 2018. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“US GAAP”) for complete financial statements. The accompanying condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and the results of its operations and cash flows, as of and for the periods presented. The accompanying condensed consolidated balance sheet at December 31, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and disclosures required by US GAAP for annual financial statements. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2018, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 7, 2019. |
Principles of Consolidation | Principles of Consolidation The Company formed a French subsidiary, HTG Molecular Diagnostics France SARL (“HTG France”), in November 2018. The accompanying condensed consolidated financial statements include the accounts of the Company and this wholly owned subsidiary after elimination of intercompany transactions. |
Concentration Risks | Concentration Risks Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents, available-for-sale debt securities and uncollateralized accounts receivable. The Company maintains the majority of its cash balances in the form of cash deposits in bank checking and money market accounts in amounts in excess of federally insured limits. Management believes, based upon the quality of the financial institution, that the credit risk with regard to these deposits is not significant. The Company sells its instrument, related consumables, sample processing services, custom RUO assay design and collaborative development services primarily to biopharmaceutical companies, academic institutions and molecular labs. The Company routinely assesses the financial strength of its customers and credit losses have been minimal to date. The Company’s top two customers accounted for 57% and 17% of the Company’s total revenue for the three months ended March 31, 2019, compared with 59% and 9% of the Company’s total revenue for the three months ended March 31, 2018. The Company’s top four customers accounted for approximately 53%, 18%, 17% and 12% of the Company’s accounts receivable as of March 31, 2019. The Company’s top four customers accounted for approximately 44%, 27% and two customers accounting for 11% as of December 31, 2018. The Company currently relies on a single supplier to supply a subcomponent used in the HTG EdgeSeq processors. A loss of this supplier could significantly delay the delivery of processors, which in turn would materially affect the Company’s ability to generate revenue. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company’s significant estimates include revenue recognition, stock-based compensation expense, bonus accrual, lease liability, income tax valuation allowances and reserves, recovery of long‑lived assets, inventory obsolescence and inventory valuation. Actual results could materially differ from those estimates. |
Significant Accounting Policies | Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies from those previously disclosed in the Company’s Annual Report on Form 10-K, filed with the SEC on March 7, 2019, other than the adoption of the Financial Accounting Standards Board “FASB”) issued Accounting Standards Codification (“ASC”) Topic 842, Leases |
Restricted Cash | Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed consolidated balance sheets that sum to the total of the same such amounts shown in the accompanying condensed consolidated statements of cash flows. March 31, 2019 2018 Cash and cash equivalents $ 6,975,080 $ 20,530,960 Restricted cash - non-current 3,270,247 — Total cash, cash equivalents and restricted cash shown in the accompanying condensed consolidated statements of cash flows $ 10,245,327 $ 20,530,960 Amounts included in restricted cash represent those required to be set aside in escrow under the terms of the MidCap Term Loan (see Note 8) to collateralize the payment that will be due upon maturity of the QNAH Convertible Note (see Note 15). The amounts will be released to the Company upon subsequent delivery of subordination documents for the QNAH Convertible Note to MidCap or conversion of the QNAH Convertible Note. If neither occurs, the amounts will be applied by the escrow agent to repay in full the QNAH Convertible Note at maturity (or in connection with a prepayment at the direction of the Company) subject to the terms of the MidCap Term Loan. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of financial instruments classified as current assets and current liabilities approximate fair value due to their liquidity and short-term nature. Investments that are classified as available-for-sale are recorded at fair value, which was determined using quoted market prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. The carrying value of the MidCap Term Loan (see Note 8) is estimated to approximate its fair value as the interest rate approximates the market rate for debt with similar terms and risk characteristics. In October 2017, the Company received $3.0 million in gross proceeds from, and issued a subordinated convertible promissory note (the “QNAH Convertible Note”) in that principal amount to, QIAGEN North American Holdings, Inc. (“QNAH”). As of March 31, 2019, the estimated aggregate fair value of the QNAH Convertible Note is approximately $3.1 million, based on a discounted cash flow approach and utilizing an option pricing model to value the conversion feature, with key assumptions including expected volatility, discount rates, term and risk-free rates. The NuvoGen obligation is an obligation relating to an asset purchase transaction with a then-common stockholder of the Company. As of March 31, 2019, the estimated aggregate fair value of the NuvoGen obligation is approximately $5.3 million, determined using a Monte Carlo simulation with key assumptions including future revenue, volatility, discount and risk-free rates. The estimated fair values of the QNAH Convertible Note and the NuvoGen obligation represent Level 3 measurements. |
Leases | Leases Effective January 1, 2019, the Company accounts for its leases under ASC 842. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases, and are recorded on the consolidated balance sheet as both a right-of-use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right-of-use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term. For financing leases, interest on the lease liability and the amortization of the right-of-use asset results in front-loaded expense over the lease term. Variable lease expenses are recorded when incurred. Certain leasehold improvements constructed by the landlord of the Company’s Tucson, AZ facilities as an incentive for the Company to extend its leases are included in leasehold improvements in the consolidated balance sheets as of December 31, 2018. The total cost of the improvements constructed by the landlord of $710,000 was capitalized when construction was completed in February 2016 and is being amortized over the remaining term of the lease agreement. The incentive of $710,000 has been recognized as an offset to operating lease right-of-use asset in the accompanying condensed consolidated balance sheets as of March 31, 2019 as a result of the implementation of ASC 842 and was recognized as deferred rent within other current liabilities and other liabilities on the consolidated balance sheets as of December 31, 2018, in accordance with ASC Topic 840, Leases In calculating the right-of-use asset and lease liability, the Company elects to combine lease and non-lease components for all classes of assets currently under lease, including facilities and computer equipment. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term for these leases. The comparative information in these condensed consolidated financial statements has not been restated and continues to be reported under ASC Topic 840, Leases |
Recently Adopted and New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases, In June 2018, the FASB issued ASU No. 2018-07 , Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting . . In July 2017, the FASB issued ASU 2017-11, Accounting for Certain Financial Instruments with Down Round Features This new standard makes limited changes to previous guidance on classifying certain financial instruments as either liabilities or equity. The new standard was effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted, including adoption in an interim period. Adoption of this standard as of January 1, 2019 did not have an effect on the Company’s consolidated financial statements as the Company’s existing financial instruments did not have down round features. New Accounting Pronouncements The following are new FASB ASUs that have not been adopted by the Company as of March 31, 2019, grouped by their respective effective dates: January 1, 2020 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In November 2018, the FASB issued ASU No. 2018-18, which amended ASC 808, Collaborative Arrangements Revenue from Contracts with Customers |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary 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 accompanying condensed consolidated balance sheets that sum to the total of the same such amounts shown in the accompanying condensed consolidated statements of cash flows. March 31, 2019 2018 Cash and cash equivalents $ 6,975,080 $ 20,530,960 Restricted cash - non-current 3,270,247 — Total cash, cash equivalents and restricted cash shown in the accompanying condensed consolidated statements of cash flows $ 10,245,327 $ 20,530,960 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory, net of allowance, consisted of the following as of the dates indicated: March 31, December 31, 2019 2018 Raw materials $ 687,340 $ 853,228 Work in process 209,200 168,937 Finished goods 282,501 284,444 Inventory, net $ 1,179,041 $ 1,306,609 |
Fair Value Instruments (Tables)
Fair Value Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table classifies the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018, respectively, in the fair value hierarchy: Balance at March 31, 2019 Level 1 Level 2 Level 3 Total Asset included in: Cash and cash equivalents Money market securities $ 6,726,037 $ — $ — $ 6,726,037 Investments available-for-sale at fair value U.S. government obligations 2,572,596 — — 2,572,596 Corporate debt securities — 15,484,077 — 15,484,077 Total $ 9,298,633 $ 15,484,077 $ — $ 24,782,710 Balance at December 31, 2018 Level 1 Level 2 Level 3 Total Asset included in: Cash and cash equivalents Money market securities $ 6,923,255 $ 998,400 $ — $ 7,921,655 Investments available-for-sale at fair value U.S. government obligations 6,031,515 — — 6,031,515 Corporate debt securities — 16,649,534 — 16,649,534 Total $ 12,954,770 $ 17,647,934 $ — $ 30,602,704 |
Available-for-Sale Securities (
Available-for-Sale Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Available-for-sale Securities | The Company’s portfolio of available-for-sale securities consists of U.S. Treasuries and high credit quality corporate debt securities. The following is a summary of the Company’s available-for-sale securities at March 31, 2019 and December 31, 2018: March 31, 2019 Gross Gross Fair Value Amortized Unrealized Unrealized (Net Carrying Cost Gains Losses Amount) U.S. Treasury securities $ 2,571,615 $ 981 $ — $ 2,572,596 Corporate debt securities 15,484,077 — — 15,484,077 Total available-for-sale securities $ 18,055,692 $ 981 $ — $ 18,056,673 December 31, 2018 Gross Gross Fair Value Amortized Unrealized Unrealized (Net Carrying Cost Gains Losses Amount) U.S. Treasury securities $ 6,032,844 $ — $ (1,329 ) $ 6,031,515 Corporate debt securities 16,650,513 — (979 ) 16,649,534 Total available-for-sale securities $ 22,683,357 $ — $ (2,308 ) $ 22,681,049 |
Summary of Contractual Maturities of Debt Investment Securities | Contractual maturities of debt investment securities at March 31, 2019 are shown below. Under 1 Year 1 to 2 Years Total U.S. Treasury securities $ 2,572,596 $ — $ 2,572,596 Corporate debt securities 15,484,077 — 15,484,077 Total available-for-sale securities $ 18,056,673 $ — $ 18,056,673 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment, net, consists of the following as of the dates indicated: March 31, December 31, 2019 2018 Furniture & fixtures $ 852,132 $ 791,973 Leasehold improvements 1,936,495 1,930,300 Equipment used in manufacturing 2,298,377 2,297,797 Equipment used in research & development 1,456,954 1,456,954 Equipment used in the field 153,720 125,253 Software 373,683 373,683 Construction in progress — 19,246 7,071,361 6,995,206 Less: accumulated depreciation and amortization (4,930,254 ) (4,621,416 ) $ 2,141,107 $ 2,373,790 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accrued Liabilities Current [Abstract] | |
Summary of Accrued Liabilities | Accrued liabilities consist of the following as of the dates indicated: March 31, December 31, 2019 2018 Accrued employee bonuses $ 289,107 $ 2,150,418 Payroll and employee benefit accruals 547,106 698,969 Accrued professional fees 97,644 60,400 Accrued interest 179,528 156,492 Other accrued liabilities 216,301 292,186 $ 1,329,686 $ 3,358,465 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Remaining Principal Repayments due Under MidCap Term Loan | There have been no significant modifications to terms and conditions of the MidCap Credit Facility since the disclosures made in the Company’s Annual Report on Form 10-K, filed with the SEC on March 7, 2019. The remaining principal repayments due under the MidCap Term Loan as of March 31, 2019 are as follows for each fiscal year: 2019 $ — 2020 1,750,000 2021 2,333,333 2022 2,333,333 2023 583,334 Total MidCap Term Loan payments 7,000,000 Less discount and deferred financing costs (575,185 ) Plus final fee premium 315,000 Total MidCap Term Loan, net $ 6,739,815 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Product and Product-Related Service Revenue from Sale of Instruments and Consumables | Product and Product-related Services Revenue The Company had product and product-related services revenue consisting of revenue from the sale of RUO and MDx instruments and consumables and the use of the HTG EdgeSeq proprietary technology to process samples and design custom RUO assays for the three months ended March 31, 2019 and 2018 as follows: Three Months Ended March 31, 2019 2018 Product revenue: RUO instruments $ 47,866 $ 11,358 MDx instruments 92,550 — RUO consumables 304,231 205,813 MDx consumables 96,587 46,199 Total product revenue 541,234 263,370 Product-related services revenue: Custom RUO assay development 367,859 127,027 RUO sample processing 1,753,412 1,343,149 Total product-related services revenue 2,121,271 1,470,176 Total product and product-related services revenue $ 2,662,505 $ 1,733,546 |
Schedule of Collaborative Development Services | Collaborative Development Services Revenue Three Months Ended March 31, 2019 2018 Collaborative development services $ 540,320 $ 2,425,106 |
Schedule of Changes in Contract Liability | Changes in the Company’s contract liability were as follows as of the dates indicated: Product Revenue Custom RUO Assay Design Sample Processing Total Contract Liability Balance at January 1, 2019 $ 116,547 $ 50,000 $ 244,400 $ 410,947 Deferral of revenue 50,667 11,685 48,327 110,679 Recognition of deferred revenue (36,544 ) (11,685 ) (117,695 ) (165,924 ) Balance at March 31, 2019 $ 130,670 $ 50,000 $ 175,032 $ 355,702 Product Revenue Custom RUO Assay Design Sample Processing Collaborative Development Services Total Contract Liability Balance at January 1, 2018 $ 39,426 $ 197,606 $ 490,536 $ 110,317 $ 837,885 Deferral of revenue 55,476 135,250 53,770 — 244,496 Recognition of deferred revenue (65,345 ) (127,027 ) (261,561 ) (23,639 ) (477,572 ) Balance at March 31, 2018 $ 29,557 $ 205,829 $ 282,745 $ 86,678 $ 604,809 |
Other Agreements (Tables)
Other Agreements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Agreements [Abstract] | |
Schedule of Remaining Minimum Principal Payments Due | Minimum payments to be made in 2019 include $92,169 of revenue-based payments payable as of March 31, 2019, and an estimate of additional revenue-based payments to be made throughout the remainder of 2019 relating to revenue generated in the second, third and fourth quarters of 2019 using actual revenue generated in the same quarters in 2018. Minimum payments for the remaining years include only the minimum payments for each year. Actual payments could be significantly more than provided in the table, to the extent that 6% of the Company’s annual revenue in 2020 and beyond exceeds $400,000: 2019 $ 1,232,884 2020 400,000 2021 400,000 2022 400,000 2023 400,000 2024 and beyond 3,590,051 Total NuvoGen obligation payments 6,422,935 Plus interest accretion 102,718 Total NuvoGen obligation, net $ 6,525,653 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Numerator and Denominator Used in Computing Basic and Diluted Net Loss per Share | The following table provides the numerator and denominator used in computing basic and diluted net loss per share for the periods indicated: Three Months Ended March 31, 2019 2018 Numerator: Net loss $ (5,370,846 ) $ (5,379,947 ) Denominator: Weighted-average shares outstanding-basic and diluted 28,600,679 24,704,128 Net loss per share, basic and diluted $ (0.19 ) $ (0.22 ) |
Outstanding Securities Excluded from Computation of Diluted Net Loss per Share | The following outstanding securities were excluded from the computation of diluted net loss per share for the periods presented because their effect would have been anti-dilutive: Three Months Ended March 31, 2019 2018 Options to purchase common stock 1,977,787 1,486,559 Common stock warrants 236,915 237,846 Restricted stock units 229,581 16,666 QNAH convertible note 783,339 755,178 |
Warrants (Tables)
Warrants (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Proceeds From Issuance Of Preferred Stock Preference Stock And Warrants [Abstract] | |
Summary of Outstanding Warrants | The following table shows the common stock warrants outstanding as of March 31, 2019: Shares of Common Exercise Price/Share Expiration Date 28,713 $ 23.51 2024 144,772 14.00 2022 45,307 2.76 2026 18,123 7.73 2028 |
Stockholders Deficit (Tables)
Stockholders Deficit (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Summary of Stock Option Plans Activity | A summary of the Company’s stock option activity for the three months ended March 31, 2019 is as follows: Number of Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance at December 31, 2018 2,047,237 $ 3.07 7.6 $ 366,007 Granted — — Exercised (21,871 ) 2.36 $ 8,306 Forfeited (36,797 ) 3.15 Expired/Cancelled (10,782 ) 4.81 Balance at March 31, 2019 1,977,787 $ 3.07 7.5 $ 320,766 Exercisable at March 31, 2019 1,288,938 $ 2.93 6.6 $ 307,101 |
Summary of Restricted Stock Unit (“RSU”) Plans Activity | A summary of restricted stock unit (“RSU”) activity for the three months ended March 31, 2019 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Per Share Balance at December 31, 2018 227,707 $ 3.39 Granted 15,000 2.31 Released (13,126 ) 3.40 Balance at March 31, 2019 229,581 $ 3.32 Vested and unissued at March 31, 2019 15,001 $ 3.26 |
Summary of Stock-Based Compensation | Stock-based compensation expense recorded in the accompanying condensed consolidated statements of operations for the three months ended March 31, 2019 and 2018 was as follows: Three Months Ended March 31, 2019 2018 Selling, general and administrative $ 181,981 $ 1,101,992 Research and development 48,450 30,909 Cost of product and product-related services revenue 10,815 10,557 $ 241,246 $ 1,143,458 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of Components of Lease Cost | The components of lease cost for operating leases were as follows: March 31, 2019 Operating leases Operating lease cost $ 96,181 Variable lease cost 21,451 Operating lease expense 117,632 Short-term lease rent expense 1,497 Total rent expense $ 119,129 March 31, 2019 Financing leases Amortization of right-of-use assets $ 14,696 Interest on lease liability 2,146 Total financing lease cost $ 16,842 |
Summary of Other Information Related to Operating Leases | The table below summarizes other information related to the Company’s operating leases: March 31, 2019 Operating cash flows from operating leases $ 136,272 Right-of-use assets exchanged for operating lease liabilities $ 1,033,107 Weighted-average remaining lease term – operating leases 1.9 Weighted-average discount rate – operating leases 9.6 % |
Summary of Remaining Maturities of Operating Leases, Excluding Short-term Leases | As of March 31, 2019, remaining maturities of our operating leases, excluding short-term leases, are as follows: 2019 $ 409,868 2020 544,349 2021 54,541 Total 1,008,758 Less present value discount (88,616 ) Operating lease liabilities, net $ 920,142 |
Summary of Lease Commitments | Lease commitments as presented under ASC 840 as of December 31, 2018 were as follows: 2019 $ 525,745 2020 528,225 2021 53,907 2022 10,768 2023 10,768 2024 and beyond 43,073 1,172,486 |
Summary of Other Information Related to Financing Leases | The table below summarizes other information related to the Company’s financing leases: March 31, 2019 Weighted-average remaining lease term – financing leases 2.3 Weighted-average discount rate – financing leases 9.77 % |
Summary of Remaining Maturities of Financing Leases | As of March 31, 2019, remaining maturities of our financing leases are as follows: 2019 $ 36,206 2020 33,992 2021 12,275 2022 4,636 2023 2,316 Total 89,425 Less present value discount (10,761 ) Financing lease liabilities, net $ 78,664 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Product Warranty Reserve | The following is a summary of the Company’s general product warranty reserve for the periods indicated: Three Months Ended March 31, 2019 2018 Beginning balance $ 63,461 $ 37,156 Cost of warranty claims (30,347 ) (2,247 ) Increase in warranty reserve 32,817 752 Ending balance $ 65,931 $ 35,661 |
Description of Business, Basi_3
Description of Business, Basis of Presentation and Principles of Consolidation - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019SegmentCustomer | Mar. 31, 2018Customer | Dec. 31, 2018Customer | |
Significant Accounting Policies [Line Items] | |||
Number of operating segments | Segment | 1 | ||
Sales Revenue, Net | Customer Concentration Risk | |||
Significant Accounting Policies [Line Items] | |||
Number of customers | 2 | 2 | |
Sales Revenue, Net | Customer Concentration Risk | Customers Located Outside Of United States | |||
Significant Accounting Policies [Line Items] | |||
Sales revenue percentage | 27.00% | 79.00% | |
Sales Revenue, Net | Customer Concentration Risk | Customers Located Outside Of United States | QIAGEN Manchester Limited | Collaborative Development Services | |||
Significant Accounting Policies [Line Items] | |||
Sales revenue percentage | 62.00% | 73.00% | |
Sales Revenue, Net | Customer Concentration Risk | Customer One | |||
Significant Accounting Policies [Line Items] | |||
Sales revenue percentage | 57.00% | 59.00% | |
Sales Revenue, Net | Customer Concentration Risk | Customer Two | |||
Significant Accounting Policies [Line Items] | |||
Sales revenue percentage | 17.00% | 9.00% | |
Accounts Receivable | Customer Concentration Risk | |||
Significant Accounting Policies [Line Items] | |||
Number of customers | 4 | 4 | |
Accounts Receivable | Customer Concentration Risk | Customer One | |||
Significant Accounting Policies [Line Items] | |||
Sales revenue percentage | 53.00% | 44.00% | |
Accounts Receivable | Customer Concentration Risk | Customer Two | |||
Significant Accounting Policies [Line Items] | |||
Sales revenue percentage | 18.00% | 27.00% | |
Accounts Receivable | Customer Concentration Risk | Customer Three | |||
Significant Accounting Policies [Line Items] | |||
Sales revenue percentage | 17.00% | 11.00% | |
Accounts Receivable | Customer Concentration Risk | Customer Four | |||
Significant Accounting Policies [Line Items] | |||
Sales revenue percentage | 12.00% | 11.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Accounting Policies [Abstract] | |||
Cash and cash equivalents | $ 6,975,080 | $ 8,432,600 | $ 20,530,960 |
Restricted cash - non-current | 3,270,247 | $ 3,270,247 | |
Total cash, cash equivalents and restricted cash shown in the accompanying condensed consolidated statements of cash flows | $ 10,245,327 | $ 20,530,960 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Oct. 31, 2017 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Feb. 29, 2016 | |
Significant Accounting Policies [Line Items] | |||||
Leasehold improvements | $ 710,000 | $ 710,000 | |||
Operating lease right-of-use assets | $ 621,429 | ||||
Operating lease liabilities | 920,142 | ||||
Accounting Standards Update 2016-02 | |||||
Significant Accounting Policies [Line Items] | |||||
Lease incentive, recognized as offset to right-of-use asset | 710,000 | ||||
Operating lease right-of-use assets | $ 694,352 | ||||
Operating lease liabilities | 1,033,107 | ||||
Effect on retained earnings | $ 0 | ||||
Decrease in operating lease asset | 300,000 | ||||
NuvoGen Asset Purchase Agreement | |||||
Significant Accounting Policies [Line Items] | |||||
Convertible debt, fair value | 5,300,000 | ||||
QIAGEN North American Holdings, Inc. | |||||
Significant Accounting Policies [Line Items] | |||||
Convertible debt, fair value | $ 3,100,000 | ||||
QIAGEN North American Holdings, Inc. | Convertible Promissory Note | |||||
Significant Accounting Policies [Line Items] | |||||
Gross proceeds from issuance of subordinated notes | $ 3,000,000 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 687,340 | $ 853,228 |
Work in process | 209,200 | 168,937 |
Finished goods | 282,501 | 284,444 |
Inventory, net | $ 1,179,041 | $ 1,306,609 |
Inventory - Additional Informat
Inventory - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Inventory [Line Items] | |||
Reserve for shrinkage and excess raw material inventory | $ 39,403 | $ 39,403 | |
Net change in inventory valuation reserves | 0 | $ 1,801 | |
Provision for excess inventory | 24,296 | $ 11,280 | |
Finished goods inventory | 282,501 | 284,444 | |
HTG EdgeSeq | |||
Inventory [Line Items] | |||
Finished goods inventory | $ 57,788 | $ 143,271 |
Fair Value Instruments - Financ
Fair Value Instruments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Asset included in: | ||
Investments available-for-sale at fair value | $ 18,056,673 | $ 22,681,049 |
U.S. Government Obligations | ||
Asset included in: | ||
Investments available-for-sale at fair value | 2,572,596 | 6,031,515 |
Corporate Debt Securities | ||
Asset included in: | ||
Investments available-for-sale at fair value | 15,484,077 | 16,649,534 |
Fair Value, Measurements, Recurring | ||
Asset included in: | ||
Financial Assets | 24,782,710 | 30,602,704 |
Fair Value, Measurements, Recurring | Money Market Securities | ||
Asset included in: | ||
Cash and cash equivalents | 6,726,037 | 7,921,655 |
Fair Value, Measurements, Recurring | U.S. Government Obligations | ||
Asset included in: | ||
Investments available-for-sale at fair value | 2,572,596 | 6,031,515 |
Fair Value, Measurements, Recurring | Corporate Debt Securities | ||
Asset included in: | ||
Investments available-for-sale at fair value | 15,484,077 | 16,649,534 |
Fair Value, Measurements, Recurring | Level 1 | ||
Asset included in: | ||
Financial Assets | 9,298,633 | 12,954,770 |
Fair Value, Measurements, Recurring | Level 1 | Money Market Securities | ||
Asset included in: | ||
Cash and cash equivalents | 6,726,037 | 6,923,255 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Government Obligations | ||
Asset included in: | ||
Investments available-for-sale at fair value | 2,572,596 | 6,031,515 |
Fair Value, Measurements, Recurring | Level 2 | ||
Asset included in: | ||
Financial Assets | 15,484,077 | 17,647,934 |
Fair Value, Measurements, Recurring | Level 2 | Money Market Securities | ||
Asset included in: | ||
Cash and cash equivalents | 998,400 | |
Fair Value, Measurements, Recurring | Level 2 | Corporate Debt Securities | ||
Asset included in: | ||
Investments available-for-sale at fair value | $ 15,484,077 | $ 16,649,534 |
Fair Value Instruments - Additi
Fair Value Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Fair value assets, Level 1 to Level 2 transfers, Amount | $ 0 | $ 0 |
Fair value, assets, Level 2 to Level 1 transfers, Amount | 0 | 0 |
Fair value, liabilities, Level 1 to Level 2 transfers, Amount | 0 | 0 |
Fair value, liabilities, Level 2 to Level 1 transfers, Amount | 0 | 0 |
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset transfers into Level 3 | 0 | 0 |
Fair value, measurement with unobservable inputs reconciliation, recurring Basis, asset, transfers out of Level 3 | 0 | 0 |
Fair Value, measurement with unobservable inputs reconciliation, liability, transfers into Level 3 | 0 | 0 |
Fair Value, measurement with unobservable inputs reconciliation, liability, transfers out of Level 3 | $ 0 | $ 0 |
Available-for-Sale Securities -
Available-for-Sale Securities - Summary of Available-for-sale Securities (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 18,055,692 | $ 22,683,357 |
Gross Unrealized Gains | 981 | |
Gross Unrealized Losses | 0 | (2,308) |
Fair Value (Net Carrying Amount) | 18,056,673 | 22,681,049 |
U.S. Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,571,615 | 6,032,844 |
Gross Unrealized Gains | 981 | |
Gross Unrealized Losses | (1,329) | |
Fair Value (Net Carrying Amount) | 2,572,596 | 6,031,515 |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 15,484,077 | 16,650,513 |
Gross Unrealized Losses | (979) | |
Fair Value (Net Carrying Amount) | $ 15,484,077 | $ 16,649,534 |
Available-for-Sale Securities_2
Available-for-Sale Securities - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |||
Available-for-sale securities investments, gross unrealized losses | $ 0 | $ 2,308 | |
Unrealized gain on short and long-term investments | 3,353 | $ (11,151) | |
Other-than-temporary impairment | $ 0 |
Available-for-Sale Securities_3
Available-for-Sale Securities - Summary of Contractual Maturities of Debt Investment Securities (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Under 1 Year | $ 18,056,673 | |
Fair Value (Net Carrying Amount) | 18,056,673 | $ 22,681,049 |
U.S. Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Under 1 Year | 2,572,596 | |
Fair Value (Net Carrying Amount) | 2,572,596 | 6,031,515 |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Under 1 Year | 15,484,077 | |
Fair Value (Net Carrying Amount) | $ 15,484,077 | $ 16,649,534 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Abstract] | ||
Furniture & fixtures | $ 852,132 | $ 791,973 |
Leasehold improvements | 1,936,495 | 1,930,300 |
Equipment used in manufacturing | 2,298,377 | 2,297,797 |
Equipment used in research & development | 1,456,954 | 1,456,954 |
Equipment used in the field | 153,720 | 125,253 |
Software | 373,683 | 373,683 |
Construction in progress | 19,246 | |
Total property and equipment, gross | 7,071,361 | 6,995,206 |
Less: accumulated depreciation and amortization | (4,930,254) | (4,621,416) |
Property and equipment, net | $ 2,141,107 | $ 2,373,790 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | ||
Depreciation and leasehold improvement amortization expense | $ 308,984 | $ 356,204 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued employee bonuses | $ 289,107 | $ 2,150,418 |
Payroll and employee benefit accruals | 547,106 | 698,969 |
Accrued professional fees | 97,644 | 60,400 |
Accrued interest | 179,528 | 156,492 |
Other accrued liabilities | 216,301 | 292,186 |
Total accrued liabilities | $ 1,329,686 | $ 3,358,465 |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Accretion of discount on NuvoGen obligation | $ (3,414) | $ (2,952) | ||
Repayment of outstanding principal and interest | 4,276,988 | |||
Loss on extinguishment of Growth Term Loan | 105,064 | |||
Revolving loan cost | 63,099 | $ 67,068 | ||
MidCap Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Accretion of discount on NuvoGen obligation | 35,174 | 2,701 | ||
Debt discount | 575,185 | 610,359 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Amortization of deferred financing costs | 3,969 | 223 | ||
Revolving loan cost | 63,099 | 67,068 | ||
Growth Term Loan | ||||
Debt Instrument [Line Items] | ||||
Amortization of deferred financing costs | 0 | 2,982 | ||
Unamortized discounts | $ 67,272 | 67,272 | ||
Repayment of outstanding principal and interest | $ 4,300,000 | |||
Loss on extinguishment of Growth Term Loan | 105,064 | |||
Growth Term Loan | Oxford Finance, LLC and Silicon Valley Bank | ||||
Debt Instrument [Line Items] | ||||
Accretion of discount on NuvoGen obligation | 0 | $ 59,969 | ||
Unamortized discounts | $ 0 | $ 0 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Remaining Principal Repayments due Under MidCap Term Loan (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total MidCap Term Loan, net | $ 6,739,815 | $ 6,704,641 |
MidCap Credit Facility | ||
Debt Instrument [Line Items] | ||
2020 | 1,750,000 | |
2021 | 2,333,333 | |
2022 | 2,333,333 | |
2023 | 583,334 | |
Total MidCap Term Loan payments | 7,000,000 | |
Less discount and deferred financing costs | (575,185) | $ (610,359) |
Plus final fee premium | 315,000 | |
Total MidCap Term Loan, net | $ 6,739,815 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Product and Product-Related Service Revenue from Sale of Instruments and Consumables (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Product and product-related services revenue | $ 3,202,825 | $ 4,158,652 |
Product and Product-related Services | ||
Disaggregation Of Revenue [Line Items] | ||
Product and product-related services revenue | 2,662,505 | 1,733,546 |
HTG EdgeSeq | RUO Instruments | ||
Disaggregation Of Revenue [Line Items] | ||
Product and product-related services revenue | 47,866 | 11,358 |
HTG EdgeSeq | MDx Instruments | ||
Disaggregation Of Revenue [Line Items] | ||
Product and product-related services revenue | 92,550 | |
HTG EdgeSeq | RUO Consumables | ||
Disaggregation Of Revenue [Line Items] | ||
Product and product-related services revenue | 304,231 | 205,813 |
HTG EdgeSeq | MDx Consumables | ||
Disaggregation Of Revenue [Line Items] | ||
Product and product-related services revenue | 96,587 | 46,199 |
HTG EdgeSeq | Product revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Product and product-related services revenue | 541,234 | 263,370 |
HTG EdgeSeq | Custom RUO assay development | ||
Disaggregation Of Revenue [Line Items] | ||
Product and product-related services revenue | 367,859 | 127,027 |
HTG EdgeSeq | RUO Sample processing | ||
Disaggregation Of Revenue [Line Items] | ||
Product and product-related services revenue | 1,753,412 | 1,343,149 |
HTG EdgeSeq | Product-related services revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Product and product-related services revenue | 2,121,271 | 1,470,176 |
HTG EdgeSeq | Product and Product-related Services | ||
Disaggregation Of Revenue [Line Items] | ||
Product and product-related services revenue | $ 2,662,505 | $ 1,733,546 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Agreements for product and product-related services revenue, description | The Company’s agreements for product and product-related services revenue have an expected duration of one year or less | |||
Revenue recognized | $ 165,924 | $ 477,572 | ||
Revenue | 3,202,825 | 4,158,652 | ||
Contract liabilities | 355,702 | 604,809 | $ 410,947 | $ 837,885 |
Product revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue recognized | 68,820 | 0 | ||
Custom RUO Assay Design and Related Agreements | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue recognized | 41,137 | 0 | ||
Collaborative Development Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue recognized | 23,639 | |||
Revenue | 540,320 | 2,425,106 | ||
Contract liabilities | 86,678 | $ 110,317 | ||
Collaborative Development Services | Diagnostic Development Services Agreements | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 0 | ||
Minimum | ||||
Disaggregation Of Revenue [Line Items] | ||||
Customer payment term | 30 days | |||
Maximum | ||||
Disaggregation Of Revenue [Line Items] | ||||
Customer payment term | 90 days |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Additional Information1 (Details) | Mar. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Deferred revenue to be realized | $ 246,009 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Deferred revenue to be realized | $ 109,693 |
Revenue from Contract with Cust
Revenue from Contract with Customer - Schedule of Collaborative Development Services (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Service revenue | $ 3,202,825 | $ 4,158,652 |
Collaborative Development Services | ||
Disaggregation Of Revenue [Line Items] | ||
Service revenue | $ 540,320 | $ 2,425,106 |
Revenue from Contract with Cu_2
Revenue from Contract with Customer - Schedule of Changes in Contract Liability (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Beginning Balance | $ 410,947 | $ 837,885 |
Deferral of revenue | 110,679 | 244,496 |
Recognition of deferred revenue | (165,924) | (477,572) |
Ending Balance | 355,702 | 604,809 |
Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Beginning Balance | 116,547 | 39,426 |
Deferral of revenue | 50,667 | 55,476 |
Recognition of deferred revenue | (36,544) | (65,345) |
Ending Balance | 130,670 | 29,557 |
Custom RUO Assay Design | ||
Disaggregation Of Revenue [Line Items] | ||
Beginning Balance | 50,000 | 197,606 |
Deferral of revenue | 11,685 | 135,250 |
Recognition of deferred revenue | (11,685) | (127,027) |
Ending Balance | 50,000 | 205,829 |
Sample Processing | ||
Disaggregation Of Revenue [Line Items] | ||
Beginning Balance | 244,400 | 490,536 |
Deferral of revenue | 48,327 | 53,770 |
Recognition of deferred revenue | (117,695) | (261,561) |
Ending Balance | $ 175,032 | 282,745 |
Collaborative Development Services | ||
Disaggregation Of Revenue [Line Items] | ||
Beginning Balance | 110,317 | |
Recognition of deferred revenue | (23,639) | |
Ending Balance | $ 86,678 |
Other Agreements - Additional I
Other Agreements - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Other Agreements [Line Items] | |||
Debt instrument, amortization expense | $ (3,414) | $ (2,952) | |
Measurement Input, Default Rate | |||
Other Agreements [Line Items] | |||
Discount rate used to calculate asset purchase obligation | 2.5 | ||
NuvoGen Asset Purchase Agreement | |||
Other Agreements [Line Items] | |||
Asset purchase agreement quarterly installments due from beginning 2019 | $ 400,000 | ||
Percentage on annual revenues for cash consideration to be paid | 6.00% | ||
Asset purchase agreement fixed quarterly payments | $ 100,000 | ||
Additional revenue based payments payable | 92,169 | $ 363,686 | |
NuvoGen | |||
Other Agreements [Line Items] | |||
Convertible notes and related debt discount | (102,718) | $ (106,132) | |
Debt instrument, amortization expense | $ (3,414) | $ (2,952) |
Other Agreements - Schedule of
Other Agreements - Schedule of Remaining Minimum Principal Payments Due (Details) - NuvoGen Asset Purchase Agreement | Mar. 31, 2019USD ($) |
Purchase Obligation Fiscal Year Maturity [Line Items] | |
2019 | $ 1,232,884 |
2020 | 400,000 |
2021 | 400,000 |
2022 | 400,000 |
2023 | 400,000 |
2024 and beyond | 3,590,051 |
Total NuvoGen obligation payments | 6,422,935 |
Plus interest accretion | 102,718 |
Total NuvoGen obligation, net | $ 6,525,653 |
Net Loss per Share - Numerator
Net Loss per Share - Numerator and Denominator Used in Computing Basic and Diluted Net Loss per Share (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net loss | $ (5,370,846) | $ (5,379,947) |
Denominator: | ||
Weighted-average shares outstanding-basic and diluted | 28,600,679 | 24,704,128 |
Net loss per share, basic and diluted | $ (0.19) | $ (0.22) |
Net Loss per Share - Outstandin
Net Loss per Share - Outstanding Securities Excluded from Computation of Diluted Net Loss per Share (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Options to purchase common stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted net loss per share | 1,977,787 | 1,486,559 |
Restricted Stock Units R S U | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted net loss per share | 229,581 | 16,666 |
Warrants | Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted net loss per share | 236,915 | 237,846 |
QNAH convertible note | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted net loss per share | 783,339 | 755,178 |
Warrants - Additional Informati
Warrants - Additional Information (Details) | 1 Months Ended |
Mar. 31, 2019shares | |
Warrants And Rights Note Disclosure [Abstract] | |
Expiration of warrant to purchase common stock, shares | 931 |
Warrants -Summary of Outstandin
Warrants -Summary of Outstanding Warrants (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Convertible Note Warrants | |
Class Of Warrant Or Right [Line Items] | |
Shares of Common Stock Underlying Warrants | shares | 144,772 |
Exercise Price/Share | $ / shares | $ 14 |
Expiration Date | 2022 |
Common Stock Warrants | |
Class Of Warrant Or Right [Line Items] | |
Shares of Common Stock Underlying Warrants | shares | 45,307 |
Exercise Price/Share | $ / shares | $ 2.76 |
Expiration Date | 2026 |
Common Stock Tranche one | |
Class Of Warrant Or Right [Line Items] | |
Shares of Common Stock Underlying Warrants | shares | 18,123 |
Exercise Price/Share | $ / shares | $ 7.73 |
Expiration Date | 2028 |
Series E Redeemable Convertible Preferred Stock | |
Class Of Warrant Or Right [Line Items] | |
Shares of Common Stock Underlying Warrants | shares | 28,713 |
Exercise Price/Share | $ / shares | $ 23.51 |
Expiration Date | 2024 |
Stockholders Deficit - Addition
Stockholders Deficit - Additional Information (Details) - USD ($) | Jan. 31, 2018 | Jan. 29, 2018 | Jun. 30, 2017 | Apr. 30, 2017 | Mar. 31, 2019 | Jan. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Class Of Stock [Line Items] | |||||||||
Issuance of common stock from the ATM Offering, Shares | 5,733,314 | ||||||||
Gross proceeds from issuance of common stock | $ 0 | $ 21,100,000 | |||||||
Sales commission | 600,000 | ||||||||
Other offering expenses paid | 200,000 | ||||||||
Net proceeds from issuance of common stock from the ATM Offering | 20,200,000 | ||||||||
Deferred offering costs | $ 198,088 | 198,088 | $ 59,030 | ||||||
Stock-based compensation | 241,246 | 1,143,458 | |||||||
Selling, General and Administrative | |||||||||
Class Of Stock [Line Items] | |||||||||
Stock-based compensation | 181,981 | 1,101,992 | |||||||
Restricted Stock Units R S U | |||||||||
Class Of Stock [Line Items] | |||||||||
Unrecognized compensation expense | 668,219 | $ 668,219 | |||||||
Compensation expense period expected to be recognized | 3 years 18 days | ||||||||
Vested and unissued RSU awards, description | Vested and unissued awards at March 31, 2019 represents RSU awards granted on August 16, 2018 for which the vesting date was March 31, 2019, but for which issuance of the awards occurred on the next business day, April 1, 2019. | ||||||||
Vested and unissued RSU awards granted date | Aug. 16, 2018 | ||||||||
Vested and unissued RSU awards vesting date | Mar. 31, 2019 | ||||||||
Vested and unissued RSU awards issuance date | Apr. 1, 2019 | ||||||||
Issuance of shares granted | 15,000 | ||||||||
Restricted stock grant date fair value | $ 2.31 | ||||||||
Restricted Stock Units R S U | Executive Officers | |||||||||
Class Of Stock [Line Items] | |||||||||
Issuance of shares granted | 259,551 | ||||||||
Restricted stock grant date fair value | $ 3.84 | ||||||||
Restricted Stock Units R S U | Selling, General and Administrative | Executive Officers | |||||||||
Class Of Stock [Line Items] | |||||||||
Stock-based compensation | $ 1,000,000 | ||||||||
Two Thousand Fourteen Equity Incentive Plan | Employee Stock Option | |||||||||
Class Of Stock [Line Items] | |||||||||
Unrecognized compensation expense | $ 1,427,673 | $ 1,427,673 | |||||||
Compensation expense period expected to be recognized | 2 years 10 months 20 days | ||||||||
Underwritten Public Offering | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock price per share | $ 2.90 | $ 2.90 | |||||||
Issuance of common stock from the ATM Offering, Shares | 13,915,000 | ||||||||
Net proceeds from initial public offering after underwriters' discounts, commissions and offering expenses | $ 0 | $ 37,700,000 | |||||||
Over-Allotment Option | |||||||||
Class Of Stock [Line Items] | |||||||||
Issuance of common stock from the ATM Offering, Shares | 1,815,000 | ||||||||
Common Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Issuance of common stock from the ATM Offering, Shares | 261,352 | ||||||||
Gross proceeds from issuance of common stock | $ 600,000 | ||||||||
Sales Agreement | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock price per share | $ 0.001 | ||||||||
Common stock aggregate offering price | $ 23,000,000 | $ 40,000,000 | $ 20,000,000 | ||||||
Cowen ATM Offering | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock price per share | $ 0.001 | $ 0.001 | |||||||
Common stock aggregate offering price | $ 40,000,000 | ||||||||
Issuance of common stock from the ATM Offering, Shares | 0 | ||||||||
Deferred offering costs | $ 200,000 | $ 200,000 |
Stockholders Deficit - Summary
Stockholders Deficit - Summary of Stock Option Plans Activity (Details) - Employee Stock Option - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Beginning Balance | 2,047,237 | |
Number of Shares, Exercised | (21,871) | |
Number of Shares, Forfeited | (36,797) | |
Number of Shares, Expired/Cancelled | (10,782) | |
Number of Shares, Ending Balance | 1,977,787 | 2,047,237 |
Number of Shares, Exercisable | 1,288,938 | |
Weighted-Average Exercise Price Per Share, Beginning Balance | $ 3.07 | |
Weighted-Average Exercise Price Per Share, Exercised | 2.36 | |
Weighted-Average Exercise Price Per Share, Forfeited | 3.15 | |
Weighted-Average Exercise Price Per Share, Expired/Cancelled | 4.81 | |
Weighted-Average Exercise Price Per Share, Ending Balance | 3.07 | $ 3.07 |
Weighted-Average Exercise Price Per Share, Exercisable | $ 2.93 | |
Weighted-Average Remaining Contractual Life, Outstanding | 7 years 6 months | 7 years 7 months 6 days |
Weighted-Average Remaining Contractual Life, Exercisable | 6 years 7 months 6 days | |
Aggregate Intrinsic Value, Balance | $ 320,766 | $ 366,007 |
Aggregate Intrinsic Value, Exercised | 8,306 | |
Aggregate Intrinsic Value, Exercisable | $ 307,101 |
Stockholders Deficit - Summar_2
Stockholders Deficit - Summary of Restricted Stock Unit ('RSU') Plans Activity (Details) - Restricted Stock Units R S U | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Restricted Stock Units (RSU) | |
Beginning Balance | shares | 227,707 |
Granted | shares | 15,000 |
Released | shares | (13,126) |
Ending Balance | shares | 229,581 |
Vested and unissued at March 31, 2019 | shares | 15,001 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning Balance | $ / shares | $ 3.39 |
Granted | $ / shares | 2.31 |
Released | $ / shares | 3.40 |
Ending Balance | $ / shares | 3.32 |
Vested and unissued at March 31, 2019 | $ / shares | $ 3.26 |
Stockholders Deficit - Summar_3
Stockholders Deficit - Summary of Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 241,246 | $ 1,143,458 |
Selling, General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 181,981 | 1,101,992 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 48,450 | 30,909 |
Cost of Product and Product-related Services Revenue | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 10,815 | $ 10,557 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Aug. 15, 2019 | Apr. 01, 2019 | |
Lessee Lease Description [Line Items] | ||||
Lease expiration year | 2021 | |||
Operating lease, description | The Company’s two most significant active leases as of March 31, 2019 are for office and manufacturing space in Tucson, Arizona | |||
Operating lease right-of-use assets | $ 621,429 | |||
Operating lease liabilities | 920,142 | |||
Operating leases, rent expense | $ 148,097 | |||
Financing lease liabilities, net of discount | 78,664 | |||
Financing lease liabilities, current | $ 39,604 | |||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | |||
Financing lease liabilities, non current | $ 39,060 | |||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | |||
Financing leases, right-of-use assets | $ 77,627 | |||
Scenario Forecast | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease right-of-use assets | $ 123,000 | |||
Operating lease liabilities | $ 123,000 | |||
Subsequent Event | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease right-of-use assets | $ 900,000 | |||
Operating lease liabilities | $ 900,000 | |||
Tucson, Arizona | ||||
Lessee Lease Description [Line Items] | ||||
Lease expiration year | 2021 |
Leases - Summary of Components
Leases - Summary of Components of Lease Cost for Operating Leases (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 96,181 |
Variable lease cost | 21,451 |
Operating lease expense | 117,632 |
Short-term lease rent expense | 1,497 |
Total rent expense | $ 119,129 |
Leases - Summary of Other Infor
Leases - Summary of Other Information Related to Operating Leases (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 136,272 |
Right-of-use assets exchanged for operating lease liabilities | $ 1,033,107 |
Weighted-average remaining lease term – operating leases | 1 year 10 months 24 days |
Weighted-average discount rate – operating leases | 9.60% |
Leases - Summary of Remaining M
Leases - Summary of Remaining Maturities of Operating Leases, Excluding Short-term Leases (Details) | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 409,868 |
2020 | 544,349 |
2021 | 54,541 |
Total | 1,008,758 |
Less present value discount | (88,616) |
Operating lease liabilities, net | $ 920,142 |
Leases - Summary of Lease Commi
Leases - Summary of Lease Commitments (Details) | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 525,745 |
2020 | 528,225 |
2021 | 53,907 |
2022 | 10,768 |
2023 | 10,768 |
2024 and beyond | 43,073 |
Total minimum lease payments | $ 1,172,486 |
Leases - Summary of Component_2
Leases - Summary of Components of Lease Cost for Financing Leases (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Amortization of right-of-use assets | $ 14,696 |
Interest on lease liability | 2,146 |
Total financing lease cost | $ 16,842 |
Leases - Summary of Other Inf_2
Leases - Summary of Other Information Related to Financing Leases (Details) | Mar. 31, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term – financing leases | 2 years 3 months 18 days |
Weighted-average discount rate – financing leases | 9.77% |
Leases - Summary of Remaining_2
Leases - Summary of Remaining Maturities of Financing Leases (Details) | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 36,206 |
2020 | 33,992 |
2021 | 12,275 |
2022 | 4,636 |
2023 | 2,316 |
Total | 89,425 |
Less present value discount | (10,761) |
Financing lease liabilities, net | $ 78,664 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Oct. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||||
Service revenue | $ 3,202,825 | $ 4,158,652 | ||
Accounts receivable | 3,349,850 | $ 5,012,678 | ||
Research and development | 2,074,748 | 2,589,286 | ||
Profit sharing payments in collaborative development services revenue | 2,045,527 | 1,137,063 | ||
Collaborative Development Services | ||||
Related Party Transaction [Line Items] | ||||
Service revenue | 540,320 | 2,425,106 | ||
SOW One | ||||
Related Party Transaction [Line Items] | ||||
Service revenue | 0 | 1,318,718 | ||
Accounts receivable | 0 | 1,298,079 | ||
Research and development | 0 | 1,046,121 | ||
SOW Two | ||||
Related Party Transaction [Line Items] | ||||
Accounts receivable | 257,699 | 1,007,950 | ||
Research and development | 209,029 | 343,266 | ||
SOW Two | Collaborative Development Services | ||||
Related Party Transaction [Line Items] | ||||
Service revenue | 257,699 | 610,991 | ||
SOW Three | ||||
Related Party Transaction [Line Items] | ||||
Accounts receivable | 131,836 | $ 363,869 | ||
Research and development | 218,575 | 226,855 | ||
Profit sharing payments in collaborative development services revenue | 146,491 | |||
SOW Three | Collaborative Development Services | ||||
Related Party Transaction [Line Items] | ||||
Service revenue | $ 282,621 | $ 348,906 | ||
QIAGEN Manchester Limited | ||||
Related Party Transaction [Line Items] | ||||
Agreement commencement period | 2016-11 | |||
QIAGEN Manchester Limited | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Term of agreement | 1 year | |||
QIAGEN North American Holdings, Inc. | Convertible Promissory Note | ||||
Related Party Transaction [Line Items] | ||||
Cash proceeds from issuance of subordinated notes | $ 3,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule Of Product Warranty Reserve (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Beginning balance | $ 63,461 | $ 37,156 |
Cost of warranty claims | (30,347) | (2,247) |
Increase in warranty reserve | 32,817 | 752 |
Ending balance | $ 65,931 | $ 35,661 |