Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'CODEXIS INC | ' |
Entity Central Index Key | '0001200375 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 39,549,301 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $21,522 | $22,130 |
Short-term investments | 0 | 3,005 |
Accounts receivable, net of allowances of $513 at September 30, 2014 and $460 at December 31, 2013 | 3,088 | 5,413 |
Inventories, net | 1,943 | 1,487 |
Prepaid expenses and other current assets | 1,652 | 1,567 |
Assets held for sale | 0 | 2,179 |
Total current assets | 28,205 | 35,781 |
Restricted cash | 711 | 711 |
Marketable securities | 1,031 | 795 |
Property and equipment, net | 4,374 | 8,446 |
Intangible assets, net | 7,029 | 9,560 |
Goodwill | 3,241 | 3,241 |
Other non-current assets | 201 | 306 |
Total assets | 44,792 | 58,840 |
Current liabilities: | ' | ' |
Accounts payable | 2,542 | 3,961 |
Accrued compensation | 2,376 | 3,625 |
Other accrued liabilities | 2,050 | 1,612 |
Deferred revenue | 4,036 | 2,001 |
Total current liabilities | 11,004 | 11,199 |
Deferred revenue, net of current portion | 4,368 | 1,114 |
Other long-term liabilities | 4,213 | 5,044 |
Total liabilities | 19,585 | 17,357 |
Commitments and contingencies (note 11) | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, $0.0001 par value; 5,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.0001 par value; 100,000 shares authorized at September 30, 2014 and December 31, 2013; 39,510 and 38,351 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 4 | 4 |
Additional paid-in capital | 301,365 | 298,370 |
Accumulated other comprehensive income (loss) | 113 | -32 |
Accumulated deficit | -276,275 | -256,859 |
Total stockholders’ equity | 25,207 | 41,483 |
Total liabilities and stockholders’ equity | $44,792 | $58,840 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowances | $513 | $460 |
Preferred Stock, Par or Stated Value Per Share | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Preferred Stock, Shares Outstanding | $0.00 | $0.00 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 39,510,000 | 38,351,000 |
Common Stock, Shares, Outstanding | 39,510,000 | 38,351,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenue: | ' | ' | ' | ' |
Biocatalyst product sales | $2,562 | $1,076 | $8,323 | $15,161 |
Biocatalyst research and development | 3,364 | 2,028 | 7,176 | 4,936 |
Revenue sharing arrangement | 1,546 | 839 | 5,617 | 2,300 |
Total revenue | 7,472 | 3,943 | 21,116 | 22,397 |
Costs and operating expenses: | ' | ' | ' | ' |
Cost of biocatalyst product sales | 1,532 | 494 | 6,179 | 9,790 |
Research and development | 5,038 | 6,831 | 17,708 | 22,776 |
Selling, general and administrative | 5,157 | 5,832 | 16,791 | 21,126 |
Total costs and operating expenses | 11,727 | 13,157 | 40,678 | 53,692 |
Loss from operations | -4,255 | -9,214 | -19,562 | -31,295 |
Interest income | 3 | 9 | 15 | 53 |
Other expenses | -57 | -22 | -183 | -288 |
Loss before income taxes | -4,309 | -9,227 | -19,730 | -31,530 |
Provision for (benefit from) income taxes | 253 | 35 | -314 | -41 |
Net loss | ($4,562) | ($9,262) | ($19,416) | ($31,489) |
Net loss per share, basic and diluted (dollars per share) | ($0.12) | ($0.24) | ($0.51) | ($0.83) |
Weighted average common shares used in computing net loss per share, basic and diluted (shares) | 38,450 | 38,102 | 38,063 | 38,002 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net loss | ($4,562) | ($9,262) | ($19,416) | ($31,489) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Unrealized gain (loss) on marketable securities, net of tax expense of $160 for the three months and tax benefit of $89 for the nine months ended September 30, 2014, and $17 for the three months and $172 for the nine months ended September 30, 2013. | -261 | 32 | 145 | 275 |
Other comprehensive income (loss) | -261 | 32 | 145 | 275 |
Total comprehensive loss | ($4,823) | ($9,230) | ($19,271) | ($31,214) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Unrealized gain (loss) on marketable securities, tax | $160 | ($17) | ($89) | ($172) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating activities: | ' | ' |
Net loss | ($19,416) | ($31,489) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Amortization of intangible assets | 2,531 | 2,531 |
Depreciation and amortization of property and equipment | 2,679 | 5,307 |
Impairment of property and equipment | 1,841 | 0 |
Change in fair value of assets held for sale | 886 | 0 |
(Gain) loss on disposal of property and equipment | -115 | 62 |
Gain on sale of Hungarian subsidiary | -760 | 0 |
Stock-based compensation | 3,630 | 3,361 |
Amortization of premium (accretion of discount) on marketable securities | 2 | -63 |
Bad debt expense | 53 | 328 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 2,316 | 833 |
Inventories, net | -456 | -614 |
Prepaid expenses and other current assets | -734 | 4 |
Other assets | -74 | -37 |
Accounts payable | -1,418 | -2,164 |
Accrued compensation | -1,100 | -155 |
Other accrued liabilities | 194 | 1,080 |
Deferred revenue | 5,288 | 1,923 |
Net cash used in operating activities | -4,653 | -19,093 |
Investing activities: | ' | ' |
Purchase of property and equipment | -267 | -447 |
Proceeds from maturities of marketable securities | 3,000 | 13,410 |
Proceeds from sale of Hungarian subsidiary, net of selling costs | 1,500 | 0 |
Proceeds from the sale of assets held for sale | 281 | 0 |
Proceeds from sale of property and equipment | 166 | 150 |
Decrease in restricted cash | 0 | 600 |
Net cash provided by investing activities | 4,680 | 13,713 |
Financing activities: | ' | ' |
Proceeds from exercises of options to purchase common stock | 180 | 288 |
Taxes paid related to net share settlement of equity awards | -815 | 0 |
Net cash provided by (used in) financing activities | -635 | 288 |
Net decrease in cash and cash equivalents | -608 | -5,092 |
Cash and cash equivalents at the beginning of the period | 22,130 | 32,003 |
Cash and cash equivalents at the end of the period | $21,522 | $26,911 |
Description_of_Business
Description of Business | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business | ' |
Description of Business | |
In these notes to the condensed consolidated financial statements, the “Company,” "we," "us,'" and "our" refers to Codexis, Inc. and its subsidiaries on a consolidated basis. | |
Codexis, Inc. was incorporated in the State of Delaware in January 2002. We develop biocatalysts for the pharmaceutical and fine chemicals markets. Our proven technologies enable scale-up and implementation of biocatalytic solutions to meet customer needs for rapid, cost-effective and sustainable process development, from research to manufacturing. | |
Biocatalysts are enzymes or microbes that initiate and/or accelerate chemical reactions. Manufacturers have historically used naturally occurring biocatalysts to produce many goods used in everyday life. However, inherent limitations in naturally occurring biocatalysts have restricted their commercial use. Our proprietary technology platform is able to overcome many of these limitations, allowing us to evolve and optimize biocatalysts to perform specific and desired chemical reactions at commercial scale. | |
We have commercialized our technology and products in the pharmaceuticals market, which is our primary business focus. Our pharmaceutical customers, which include several of the largest global pharmaceutical companies, use our technology, products and services in their manufacturing processes and process development, including in the production of some of the world's best-selling and fastest growing drugs. | |
We have recently begun to use our technology to develop biocatalysts for use in the fine chemicals market. The fine chemicals market is similar to our pharmaceutical business and consists of several large market verticals, including: food, animal feed, polymers, flavors, fragrances, and agricultural chemicals. | |
We create our products by applying our CodeEvolver® directed evolution technology platform, which introduces genetic mutations into microorganisms, giving rise to changes in the enzymes that they produce. Once we identify potentially beneficial mutations, we test combinations of these mutations until we have created variant enzymes that exhibit marketable performance characteristics superior to competitive products. This process allows us to make continuous, efficient improvements to the performance of our enzymes. We are also pursuing opportunities to provide licenses to certain pharmaceutical customers to use our CodeEvolver® platform for their internal development purposes. |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation and Summary of Significant Accounting Policies | ' | |
Basis of Presentation and Summary of Significant Accounting Policies | ||
Basis of Presentation and Principles of Consolidation | ||
The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2013. The condensed consolidated balance sheet at December 31, 2013 has been derived from the audited consolidated financial statements at that date, but does not include all disclosures, including notes, required by GAAP for complete financial statements. | ||
The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to present fairly its financial position as of September 30, 2014 and results of its operations and comprehensive loss for the three months and nine months ended September 30, 2014 and 2013, and cash flows for the nine months ended September 30, 2014 and 2013. The interim results are not necessarily indicative of the results for any future interim period or for the entire year. Certain prior period amounts have been reclassified to conform to current period presentation. | ||
The unaudited interim condensed consolidated financial statements include the amounts of Codexis, Inc. and its wholly-owned subsidiaries in the United States, Brazil, Hungary (through the sale date of March 13, 2014), India, Mauritius, the Netherlands, and Singapore (dissolved in October 2014). All significant intercompany balances and transactions have been eliminated in consolidation. | ||
Use of Estimates | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. We regularly assess these estimates which primarily affect revenue recognition, accounts receivable, inventories, the valuation of investment securities and marketable securities, assets held for sale, intangible assets, goodwill arising out of business acquisitions, accrued liabilities, stock awards and the valuation allowances associated with deferred tax assets. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements. | ||
Segment Reporting | ||
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company's chief operating decision maker is Codexis' Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis, accompanied by information about revenues by geographic region, for purposes of allocating resources and evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results beyond revenue goals or plans for levels or components below the consolidated unit level. Accordingly, the Company has a single reporting segment. | ||
Revenue Recognition | ||
We recognize revenue from the sale of our biocatalyst products, biocatalyst research and development agreements and profit sharing arrangements. Revenue is recognized when the related costs are incurred and the four basic criteria of revenue recognition are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. Where the revenue recognition criteria are not met, we defer the recognition of revenue by recording deferred revenue until such time that all criteria of revenue recognition are met. | ||
Revenue from Multiple Element Arrangements | ||
We account for multiple element arrangements, such as license and platform technology transfer agreements in which a licensee may purchase several deliverables, in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 605-25, “Multiple Element Arrangements.” For new or materially amended multiple element arrangements, we identify the deliverables at the inception of the arrangement and each deliverable within a multiple deliverable revenue arrangement is accounted for as a separate unit of accounting if both of the following criteria are met: (1) the delivered item or items have value to the customer on a standalone basis and (2) for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. We allocate revenue to each non-contingent element based on the relative selling price of each element. When applying the relative selling price method, we determine the selling price for each deliverable using vendor-specific objective evidence (“VSOE”) of selling price, if it exists, or third-party evidence (“TPE”) of selling price, if it exists. If neither VSOE nor TPE of selling price exist for a deliverable, we use the best estimated selling price for that deliverable. Revenue allocated to each element is then recognized based on when the basic four revenue recognition criteria are met for each element. | ||
Where a portion of non-refundable up-front fees or other payments received are allocated to continuing performance obligations under the terms of a collaborative arrangement, they are recorded as deferred revenue and recognized as revenue or as an accrued liability and recognized as a reduction of research and development expenses ratably over the term of our estimated performance period under the agreement. We determine the estimated performance periods, and they are periodically reviewed based on the progress of the related program. The effect of any change made to an estimated performance period and, therefore, to revenue recognized, would occur on a prospective basis in the period that the change was made. | ||
Milestones | ||
A payment that is contingent upon the achievement of a substantive milestone is recognized in its entirety in the period in which the milestone is achieved. A milestone is an event (i) that can only be achieved based in whole or in part on either our performance or on the occurrence of a specific outcome resulting from our performance, (ii) for which there is, as of the date the arrangement is entered into, substantive uncertainty that the event will be achieved and (iii) results in additional payments being due to us. Milestones are considered substantive when the consideration earned from the achievement of the milestone (i) is commensurate with either our performance to achieve the milestone or the enhancement of the value of the item delivered as a result of a specific outcome resulting from its performance, (ii) relates solely to past performance and (iii) is reasonable relative to all deliverable and payment terms in the arrangement. | ||
Biocatalyst Product Sales | ||
Biocatalyst product sales consist of sales of biocatalyst intermediates, active pharmaceutical ingredients and Codex® Biocatalyst Panels and Kits. Biocatalyst product sales are recognized once passage of title and risk of loss has occurred and contractually specified acceptance criteria, if any, have been met, provided all other revenue recognition criteria have also been met. Shipping and handling costs charged to customers are recorded as revenue. | ||
Biocatalyst Research and Development | ||
Biocatalyst research and development agreements typically provide us with multiple revenue streams, including: research services fees for full time employee ("FTE") research services, up-front licensing fees, technology access, contingent payments upon achievement of contractual criteria, and royalty fees based on the licensee's product sales or cost savings achieved by Codexis' customers. | ||
We perform biocatalyst research and development activities as specified in each respective customer agreement. Payments for services received are not refundable. Certain research agreements are based on a contractual reimbursement rate per FTE working on the project. We recognize revenue from research services as those services are performed over the contractual performance periods. When up-front payments are combined with FTE services in a single unit of accounting, we recognize the up-front payments using the proportionate performance method of revenue recognition based upon the actual amount of research labor hours incurred relative to the amount of the total expected labor hours to be incurred by us, up to the amount of cash received. In cases where the planned levels of research services fluctuate substantially over the research term, we are required to make estimates of the total hours required to perform our obligations. | ||
We recognize revenue from nonrefundable, up-front license fees or technology access payments that are not dependent on any future performance by us when such amounts are earned. If we have continuing obligations to perform under the arrangement, such fees are recognized over the estimated period of continuing performance obligation. | ||
We recognize revenue from other payments received which are contingent solely upon the passage of time or the result of a customer's performance when earned in accordance with the contract terms and when such payments can be reasonably estimated and collectability of such payments is reasonably assured. | ||
We recognize revenue from royalties based on licensees’ sales of our biocatalyst products or products using our technologies. Royalties are recognized as earned in accordance with the contract terms when royalties from licensees can be reasonably estimated and collectability is reasonably assured. For the majority of our royalty revenue, estimates are made using notification of the sale of licensed products from the licensees. | ||
Revenue Sharing Arrangement | ||
We recognize revenue from a revenue sharing arrangement based upon sales of licensed products by our revenue share partner Exela PharmSci, Inc. ("Exela") (see Note 10, "Related Party Transactions"). We recognize revenue net of product and selling costs upon notification from our revenue share partner of our portion of net profit based on the contractual percentage from the sale of licensed product. | ||
Allowances | ||
Allowances against receivable balances primarily relate to product returns and prompt pay sales discounts, and are recorded in the same period that the related revenue is recognized, resulting in a reduction in biocatalyst product sales revenue and the reporting of accounts receivable net of allowances. | ||
We estimate an allowance for doubtful accounts through specific identification of potentially uncollectible accounts receivable based on an analysis of our accounts receivable aging. Uncollectible accounts receivable are written off against the allowance for doubtful accounts when all efforts to collect them have been exhausted. Recoveries are recognized when they are received. Actual collection losses may differ from our estimates and could be material to our consolidated financial position, results of operations, and cash flows. | ||
Cost of Biocatalyst Product Sales | ||
Cost of biocatalyst product sales comprises both internal and third party fixed and variable costs including amortization of purchased technology, materials and supplies, labor, facilities and other overhead costs associated with our biocatalyst product sales. Shipping costs are included in our cost of biocatalyst product sales. Such charges were not significant in any of the periods presented. Research and development expenses related to FTE services under the research and development agreements approximate the research funding over the term of the respective agreements and are included in research and development expense. | ||
Research and Development Expenses | ||
Research and development expenses consist of costs incurred for internal projects as well as partner-funded collaborative research and development activities. These costs include our direct and research-related overhead expenses, which include salaries and other personnel-related expenses (including stock-based compensation), occupancy-related costs, supplies, depreciation of facilities and laboratory equipment and amortization of acquired technologies, as well as external costs, and are expensed as incurred. Costs to acquire technologies that are utilized in research and development and that have no alternative future use are expensed when incurred. | ||
Stock-Based Compensation | ||
We use the Black-Scholes-Merton option pricing model to estimate the fair value of options granted under Codexis' equity incentive plans. The Black-Scholes-Merton option valuation model requires the use of assumptions, including the expected term of the award and the expected stock price volatility. We used the "simplified" method as described in Staff Accounting Bulletin No. 107, "Share-Based Payment," for the expected option term because Codexis' historical option exercise data is limited due to its initial public offering in 2010. We used Codexis' historical volatility to estimate expected stock price volatility. The risk-free rate assumption was based on United States Treasury instruments whose terms were consistent with the expected term of the stock option. The expected dividend assumption was based on Codexis' history and expectation of dividend payouts. | ||
Restricted Stock Units (RSUs), Restricted Stock Awards (RSAs) and performance-contingent restricted stock units (PSUs) were measured based on the fair market values of the underlying stock on the dates of grant. PSUs awarded may be conditional upon the attainment of one or more performance objectives over a specified period. At the end of the performance period, if the goals are attained, the awards are granted. | ||
Stock-based compensation expense was calculated based on awards ultimately expected to vest and was reduced for estimated forfeitures at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differed from those estimates. The estimated annual forfeiture rates for stock options, RSUs, PSUs, and RSAs are based on Codexis' historical forfeiture experience. | ||
The estimated fair value of stock options, RSUs and RSAs is expensed on a straight-line basis over the vesting term of the grant and the estimated fair value of PSUs is expensed using an accelerated method over the term of the award once management has determined that it is probable that performance objective will be achieved. Compensation expense is recorded over the requisite service period based on management's best estimate as to whether it is probable that the shares awarded are expected to vest. Management assesses the probability of the performance milestones being met on a continuous basis. | ||
We account for stock awards issued to non-employees based on their estimated fair value determined using the Black-Scholes-Merton option-pricing model. Compensation expense for the stock awards granted to non-employees is recognized based on the fair value of awards as they vest, during the period the related services are rendered. | ||
We have not recognized, and do not expect to recognize in the near future, any income tax benefit related to employee stock-based compensation expense as a result of the full valuation allowance on our deferred tax assets including deferred tax assets related to Codexis' net operating loss carryforwards. | ||
Foreign Currency Translation | ||
The assets and liabilities of foreign subsidiaries, where the local currency is the functional currency, are translated from their respective functional currencies into United States dollars at the exchange rates in effect at the balance sheet date, with resulting foreign currency translation adjustments recorded in the consolidated statement of comprehensive loss. Revenue and expense amounts are translated at average rates during the period. | ||
Where the United States dollar is the functional currency, nonmonetary assets and liabilities originally acquired or assumed in other currencies are recorded in United States dollars at the exchange rates in effect at the date they were acquired or assumed. Monetary assets and liabilities denominated in other currencies are translated into United States dollars at the exchange rates in effect at the balance sheet date. Translation adjustments are recorded in other expense in the accompanying condensed consolidated statements of operations. Gains and losses realized from transactions, including intercompany balances not considered as permanent investments, denominated in currencies other than an entity’s functional currency, are included in other expense in the accompanying condensed consolidated statements of operations. | ||
Cash and Cash Equivalents | ||
We consider all highly liquid investments with maturity dates of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks and money market funds. The majority of cash and cash equivalents is maintained with major financial institutions in North America. Deposits with these financial institutions may exceed the amount of insurance provided on such deposits. Cash and cash equivalents totaled $21.5 million at September 30, 2014, and was comprised of cash of $6.9 million and money market funds of $14.6 million. | ||
Inventories | ||
Inventories are stated at the lower of cost or market value. Cost is determined using a weighted-average approach, assuming full absorption of direct and indirect manufacturing costs, based on our product capacity utilization assumptions. If inventory costs exceed expected market value due to obsolescence or lack of demand, reserves are recorded for the difference between the cost and the estimated market value. These reserves are determined based on significant estimates. In addition, inventories include employee stock-based compensation expenses. | ||
Investment Securities | ||
We invest in debt and equity securities and we classify those investments as available-for-sale. These securities are carried at estimated fair value (see Note 5, “Investment Securities,” below) with unrealized gains and losses included in accumulated other comprehensive loss in stockholders’ equity. Available-for-sale equity securities and available-for sale debt securities with remaining maturities of greater than one year are classified as long-term. | ||
We review several factors to determine whether a loss is other-than-temporary. These factors include but are not limited to: the intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value, the length of the time and the extent to which the market value of the investment has been less than cost and the financial condition and near-term prospects of the issuer. Unrealized losses are charged against “Other expense” when a decline in fair value is determined to be other-than-temporary. | ||
Amortization of purchase premiums and accretion of purchase discounts and realized gains and losses of debt securities are included in interest income. The cost of securities sold is based on the specific-identification method. | ||
Fair Value Measurements | ||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and we consider counterparty credit risk in our assessment of fair value. Carrying amounts of Codexis' financial instruments, including cash equivalents, marketable investments, accounts receivable, accounts payable and accrued liabilities, approximate their fair values as of the balance sheet dates because of their generally short maturities. | ||
The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: | ||
• | Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. | |
• | Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. | |
• | Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions. | |
For Level 2 financial instruments, our investment adviser provides monthly account statements documenting the value of corporate bonds and U.S. Treasury obligations based on prices received from an independent third-party valuation service provider. This third party evaluates the types of securities in our investment portfolio and calculates a fair value using a multi-dimensional pricing model that includes a variety of inputs, including quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks and default rates that are observable at commonly quoted intervals. As we are ultimately responsible for the determination of the fair value of these instruments, we perform quarterly analyses using prices obtained from another independent provider of financial instrument valuations, to validate that the prices we have used are reasonable estimates of fair value. | ||
Concentrations of Credit Risk | ||
Our financial instruments that are potentially subject to concentration of credit risk primarily consist of: cash equivalents, short-term investments, accounts receivable, marketable securities, and restricted cash. We invest cash that is not required for immediate operating needs principally in money market funds and corporate securities through banks and other financial institutions in the United States, as well as in foreign countries. | ||
Long-Lived and Intangible Assets | ||
Our intangible assets are finite-lived and consist of customer relationships, developed core technology, trade names, and the intellectual property (“IP”) rights associated with the acquisition of Maxygen Inc.'s ("Maxygen") directed evolution technology in 2010. Intangible assets were recorded at their fair values at the date Codexis acquired the assets and, for those assets having finite useful lives, are amortized using the straight-line method over their estimated useful lives. Our long-lived assets include property and equipment, and other non-current assets. | ||
We determined that Codexis has a single entity wide asset group (“Asset Group”). The directed evolution technology patent portfolio acquired from Maxygen (“Core IP”) is the most significant component of the Asset Group since it is the base technology for all aspects of our research and development activities, and represents the basis for all of Codexis' identifiable cash flow generating capacity. Consequently, we do not believe that identification of independent cash flows associated with Codexis long-lived assets is currently possible at any lower level than the Asset Group. | ||
The Core IP is the only finite-lived intangible asset on Codexis' condensed consolidated balance sheet as of September 30, 2014. There has been no significant change in the utilization or estimated life of the Core IP since we acquired the technology patent portfolio from Maxygen. | ||
The carrying value of Codexis' long-lived assets in the Asset Group may not be recoverable based upon the existence of one or more indicators of impairment which could include: a significant decrease in the market price of Codexis' common stock; current period cash flow losses or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the assets; slower growth rates in Codexis' industry; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the assets; loss of significant customers or partners; or the current expectation that the assets will more likely than not be sold or disposed of significantly before the end of their estimated useful life. | ||
We evaluate recoverability of intangible assets based on the sum of the undiscounted cash flows expected to result from the use, and the eventual disposal of, the Asset Group. We make estimates and judgments about the future undiscounted cash flows over the remaining useful life of the Asset Group. Codexis' anticipated future cash flows include our estimates of existing or in process product sales, production and operating costs, future capital expenditures, working capital needs, and assumptions regarding the ultimate sale of the Asset Group at the end of the life of the primary asset. The useful life of the Asset Group was based on the estimated useful life of the Core IP, the primary asset at the time of acquisition. There has been no change in the estimated useful life of the Asset Group. Although our cash flow forecasts are based on assumptions that are consistent with our plans, there is significant judgment involved in determining the cash flows attributable to the Asset Group over its estimated remaining useful life. | ||
In the fourth quarter of 2013, we determined that Codexis' continued annual operating losses and a decline in market price of Codexis' common stock, reduced anticipated future cash flows related to potential CodeXyme® cellulase enzyme and CodeXol® detergent alcohols transactions and reduced future revenue growth to reflect Codexis' most recent outlook were indicators of impairment. As a result, we undertook an impairment analysis in the fourth quarter of 2013. | ||
The results of our fourth quarter 2013 impairment analysis indicated that the undiscounted cash flows for the Asset Group were greater than the carrying value of the Asset Group by approximately 37%. Based on the results obtained, we determined there was no impairment of Codexis' intangible assets as of December 31, 2013. During the nine months ended September 30, 2014, we made no changes to the underlying forecasts nor did we identify any additional indicators of potential impairment of intangible assets or other new information that would have a material impact on the forecast or the impairment analysis prepared as of December 31, 2013. | ||
Goodwill | ||
We determined that Codexis has only one operating segment and reporting unit under the criteria in ASC 280, "Segment Reporting." Accordingly, our review of goodwill impairment indicators is performed at the Codexis level. We review goodwill impairment annually in the fourth quarter of each of Codexis' fiscal years and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. | ||
The goodwill impairment test consists of a two-step process. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of the reporting unit to Codexis' carrying value. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired, and the second step of the impairment test is not required. | ||
We use Codexis' market capitalization as an indicator of fair value. We believe that since its reporting unit is publicly traded, the ability of a controlling stockholder to benefit from synergies and other intangible assets that arise from control might cause the fair value of Codexis' reporting unit as a whole to exceed its market capitalization. However, we believe that the fair value measurement need not be based solely on the quoted market price of an individual share of Codexis' common stock, but also can consider the impact of a control premium in measuring the fair value of its reporting unit. | ||
If we were to use an income approach, it would establish a fair value by estimating the present value of Codexis' projected future cash flows expected to be generated from its business. The discount rate applied to the projected future cash flows to arrive at the present value would be intended to reflect all risks of ownership and the associated risks of realizing the stream of projected future cash flows. Our discounted cash flow methodology would consider projections of financial performance for a period of several years combined with an estimated residual value. The most significant assumptions we would use in a discounted cash flow methodology are the discount rate, the residual value and expected future revenue, gross margins and operating costs, along with considering any implied control premium. | ||
Should Codexis' market capitalization be less than the total stockholder's equity as of our annual test date or as of any interim impairment testing date, we would also consider market comparables, recent trends in Codexis' stock price over a reasonable period and, if appropriate, use an income approach to determine whether the fair value of its reporting unit is greater than the carrying amount. | ||
The second step, if required, compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. Implied fair value is the excess of the fair value of the reporting unit over the fair value of all identified assets and liabilities. We base our fair value estimates on assumptions we believe to be reasonable. Actual future results may differ from those estimates. | ||
Goodwill was tested for impairment in the fourth quarter of 2013. We concluded that the fair value of the reporting unit exceeded the carrying value and no impairment existed. Based on the results obtained, we determined there was no impairment of Codexis' goodwill as of December 31, 2013. During the nine months ended September 30, 2014, we made no changes to the underlying forecasts nor did we identify any additional indicators of potential impairment of intangible assets or other new information that would have a material impact on the forecast or the impairment analysis prepared as of December 31, 2013. | ||
Restricted Cash | ||
Restricted cash consisted of amounts invested in savings accounts primarily for purposes of securing a standby letter of credit as collateral for Codexis' Redwood City, California facility lease agreement. | ||
Income Taxes | ||
We use the liability method of accounting for income taxes, whereby deferred tax assets or liability account balances are calculated at the balance sheet date using current tax laws and rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount that will more likely than not be realized. | ||
We make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of tax credits, benefits and deductions and in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expenses for tax and financial statement purposes. Significant changes to these estimates may result in an increase or decrease to Codexis' tax provision in a subsequent period. | ||
In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will be realized on a jurisdiction by jurisdiction basis. The ultimate realization of deferred tax assets is dependent upon the generation of taxable income in the future. We have recorded a deferred tax asset in jurisdictions where ultimate realization of deferred tax assets is more likely than not to occur. | ||
We make estimates and judgments about Codexis' future taxable income that are based on assumptions that are consistent with our plans and estimates. Should the actual amounts differ from our estimates, the amount of our valuation allowance could be materially impacted. Any adjustment to the deferred tax asset valuation allowance would be recorded in the income statement for the periods in which the adjustment is determined to be required. With the sale of the Hungarian subsidiary in the quarter ended March 31, 2014, the related net operating losses and other tax attributes are no longer available to Codexis. The related deferred tax assets had a full valuation allowance and, as a result, their removal did not have a material impact to the financial statements. | ||
We account for uncertainty in income taxes as required by the provisions of ASC Topic 740, "Income Taxes," which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to estimate and measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as this requires us to determine the probability of various possible outcomes. We consider many factors when evaluating and estimating Codexis' tax positions and tax benefits, which may require periodic adjustments and may not accurately anticipate actual outcomes. | ||
The Tax Reform Act of 1986 and similar state provisions limit the use of net operating loss carryforwards in certain situations where equity transactions result in a change of ownership as defined by Internal Revenue Code Section 382. In the event Codexis should experience such a change of ownership utilization of Codexis' federal and state net operating loss carryforwards could be limited. | ||
Provision for income taxes was $0.3 million for the three months ended September 30, 2014 and benefit from income taxes totaled $0.3 million for the nine months ended September 30, 2014. The total tax benefit for the nine months ended September 30, 2014 primarily consisted of income tax benefit attributable to foreign operations (release of previous tax provision related to a liquidated entity) offset by the tax effect on the unrecognized gain from our investment in CO2 Solutions, as well as the recognition of previously unrecognized tax benefits. We maintain a full valuation allowance against net deferred tax assets as we believe that it is more likely than not that the majority of deferred tax assets will not be realized. | ||
Recently Issued and Adopted Accounting Guidance | ||
From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by us as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our consolidated financial statements upon adoption. | ||
In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, "Revenue from Contracts with Customers". This standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The main principle of ASU 2014-09 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 provides companies with two implementation methods: (i) apply the standard retrospectively to each prior reporting period presented (full retrospective application); or (ii) apply the standard retrospectively with the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application (modified retrospective application). This guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application is not permitted. We are currently in the process of evaluating the impact of the pending adoption of ASU 2014-09 on Codexis' consolidated financial statements. | ||
In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements—Going Concern (Sub Topic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern". This ASU provides guidance to an entity’s management with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by entities today in the financial statement footnotes. This ASU is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. We are currently evaluating the impact of this ASU on our consolidated financial statements and footnote disclosures. |
Net_Loss_per_Share
Net Loss per Share | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Net Loss per Share | ' | |||||||||||
Net Loss per Share | ||||||||||||
Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding, less RSAs subject to forfeiture. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding, less RSAs subject to forfeiture, plus all additional common shares that would have been outstanding, assuming dilutive potential common shares had been issued for other dilutive securities. For all periods presented, diluted and basic net loss per share were identical since potential common shares were excluded from the calculation, as their effect was anti-dilutive. | ||||||||||||
Anti-Dilutive Securities | ||||||||||||
In periods of net loss, the weighted average number of shares outstanding, prior to the application of the treasury stock method, are excluded from the computation of diluted net loss per common share because including such shares would have an anti-dilutive effect. The following shares were not included in the computation of diluted net loss per share (in thousands): | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Options to purchase common stock | 3,674 | 4,805 | 3,674 | 4,805 | ||||||||
Restricted stock units/awards | 1,950 | 1,665 | 1,950 | 1,665 | ||||||||
Performance-contingent restricted stock units | 774 | — | 774 | — | ||||||||
Warrants to purchase common stock | 75 | 75 | 75 | 75 | ||||||||
Total shares excluded as anti-dilutive | 6,473 | 6,545 | 6,473 | 6,545 | ||||||||
Collaborative_Arrangements
Collaborative Arrangements | 9 Months Ended |
Sep. 30, 2014 | |
Research and Development [Abstract] | ' |
Collaborative Arrangements | ' |
Collaborative Arrangements | |
GSK Platform Technology Transfer, Collaboration and License Agreement | |
In July 2014, Codexis entered into a platform technology license agreement (the "License Agreement") with GlaxoSmithKline ("GSK"). Under the terms of the License Agreement, Codexis granted GSK a license to use its proprietary CodeEvolver® protein engineering platform technology. | |
We received a $6.0 million up-front licensing fee and we are eligible to receive contingent payments up to $19.0 million, of which $11.5 million are considered milestone payments, over the next three years subject to satisfactory completion of technology transfer milestones. We also have the potential to receive numerous additional contingent payments that range from $5.75 million to $38.5 million per project based on GSK's successful application of the licensed technology. The contingent payments are not deemed substantive milestones due to the fact that the achievement of the event underlying the payment predominantly relates to GSK's performance of future development and commercialization activities. | |
For up to three years following the end of the three-year period during which we will transfer our CodeEvolver® Platform Technology to GSK, GSK can exercise an option, upon payment of certain option fees, that would extend GSK’s license to include certain improvements to the CodeEvolver® Platform Technology that arise during such period. In addition, we are eligible to receive royalties based on net sales, if any, of a limited set of products developed by GSK using Codexis' CodeEvolver® protein engineering platform technology. | |
The term of the License Agreement continues, unless earlier terminated, until the expiration of all payment obligations under the License Agreement. At any time following the completion of the first technology transfer stage, GSK can terminate the License Agreement by providing 90 days written notice to us. If GSK exercises this termination right during the three-year technology transfer period, GSK will make a one-time termination payment to us. | |
Under the License Agreement, the significant deliverables were determined to be the license, platform technology transfer, and contingent obligation to supply GSK with enzymes manufactured by us at GSK's expense. We determined that the license and the platform technology transfer (together the "License") represent a unit of accounting. We determined that our participation in the joint steering committee in connection with the platform technology transfer does not represent a separate unit of accounting because GSK could not negotiate for and/or acquire these services from other third parties and our participation on the joint steering committee is coterminous with the technology transfer period. | |
The up-front License fee of $6.0 million is being recognized over the technology transfer period of three years. Amounts to be received under the development supply agreement described above will be recognized as revenue to the extent GSK purchases enzymes from us. | |
As of September 30, 2014, we have a deferred revenue balance of $5.5 million from GSK related to the up-front License fee. We recognized license fees of $0.5 million for the three and nine months ended September 30, 2014, as biocatalyst research and development revenue. | |
Merck Research and Development Collaboration | |
On February 1, 2012, Codexis entered into a five-year Sitagliptin Catalyst Supply Agreement ("Sitagliptin Catalyst Supply Agreement") whereby Merck Sharp and Dohme Corp. ("Merck") may obtain commercial scale substance for use in the manufacture of one of its products, Januvia®. Merck may extend the term of the Sitagliptin Catalyst Supply Agreement for an additional five years at its sole discretion. | |
The Sitagliptin Catalyst Supply Agreement calls for Merck to pay an annual license fee for the rights to the Sitagliptin technology each year for the term of the Sitagliptin Catalyst Supply Agreement. The license fee is being recognized as collaborative research and development revenue ratably over the five year term of the Sitagliptin Catalyst Supply Agreement. As of September 30, 2014, we have a deferred revenue balance of $1.6 million from Merck related to the license fee. We recognized license fees of $0.5 million for three months ended September 30, 2014 and 2013, and $1.5 million for the nine months ended September 30, 2014, and $1.3 million for the nine months ended September 30, 2013, as biocatalyst research and development revenue. In addition, pursuant to the Sitagliptin Catalyst Supply Agreement, Merck may purchase supply from us for a fee based on contractually stated prices. | |
Arch Manufacturing Collaboration | |
From 2006 through November 2012, Arch of Mumbai, India manufactured substantially all of Codexis' commercialized intermediates and active pharmaceutical ingredients ("APIs") for sale to generic and innovative pharmaceutical manufacturers. Prior to November 2012, Arch produced atorva-family APIs and intermediates for us and it sold these directly to end customers primarily in India. In November 2012, Codexis entered into a new commercial arrangement with Arch (the "New Arch Enzyme Supply Agreement") whereby we agreed to supply Arch with enzymes for use in the manufacture of atorva family products and Arch agreed to market these products directly to end customers. We recognized product sales revenue for the sale of enzyme inventory to Arch and its affiliates pursuant to the New Arch Enzyme Supply Agreement of $0.2 million for the three months and $0.3 million for the nine months ended September 30, 2014, and nil for the three months and $2.1 million for the nine months ended September 30, 2013, as biocatalyst product sales revenue. During 2013, we recorded an allowance for bad debt of approximately $387,000 due to a write-off of an accounts receivable from Arch. |
Investment_Securities
Investment Securities | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Cash Equivalents and Marketable Securities [Abstract] | ' | |||||||||||||||||
Investment Securities | ' | |||||||||||||||||
Investment Securities | ||||||||||||||||||
At September 30, 2014, investment securities classified as available-for-sale equity securities and money market funds consisted of the following (in thousands): | ||||||||||||||||||
30-Sep-14 | ||||||||||||||||||
Adjusted Cost | Gross | Gross | Estimated | Average | ||||||||||||||
Unrealized | Unrealized | Fair Value | Contractual | |||||||||||||||
Gains | Losses | Maturities | ||||||||||||||||
(in days) | ||||||||||||||||||
Money market funds (1) | $ | 14,600 | $ | — | $ | — | $ | 14,600 | n/a | |||||||||
Common shares of CO2 Solutions (2) | 563 | 468 | — | 1,031 | n/a | |||||||||||||
Total | $ | 15,163 | $ | 468 | $ | — | $ | 15,631 | ||||||||||
(1) Money market funds are classified in cash and cash equivalents on Codexis' condensed consolidated balance sheets. | ||||||||||||||||||
(2) Common shares of CO2 Solutions are classified in marketable securities on Codexis' condensed consolidated balance sheets. | ||||||||||||||||||
At December 31, 2013, investment securities classified as available-for-sale equity securities and money market funds consisted of the following (in thousands): | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Adjusted Cost | Gross | Gross | Estimated | Average | ||||||||||||||
Unrealized | Unrealized | Fair Value | Contractual | |||||||||||||||
Gains | Losses | Maturities | ||||||||||||||||
(in days) | ||||||||||||||||||
Money market funds (1) | $ | 16,089 | $ | — | $ | — | $ | 16,089 | n/a | |||||||||
Corporate bonds | 1,002 | 3 | — | 1,005 | 140 | |||||||||||||
U.S. Treasury obligations | 2,000 | — | — | 2,000 | 59 | |||||||||||||
Common shares of CO2 Solutions (2) | 563 | 232 | — | 795 | n/a | |||||||||||||
Total | $ | 19,654 | $ | 235 | $ | — | $ | 19,889 | ||||||||||
(1) Money market funds are classified in cash and cash equivalents on Codexis' condensed consolidated balance sheets. | ||||||||||||||||||
(2) Common shares of CO2 Solutions are classified in marketable securities on Codexis' condensed consolidated balance sheets. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
The following table presents the financial instruments that were measured at fair value on a recurring basis at September 30, 2014 by level within the fair value hierarchy (in thousands): | ||||||||||||||||
30-Sep-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market funds | $ | 14,600 | $ | — | $ | — | $ | 14,600 | ||||||||
Common shares of CO2 Solutions | — | 1,031 | — | 1,031 | ||||||||||||
Total | $ | 14,600 | $ | 1,031 | $ | — | $ | 15,631 | ||||||||
The following table presents the financial instruments that were measured at fair value on a recurring basis at December 31, 2013 by level within the fair value hierarchy (in thousands): | ||||||||||||||||
31-Dec-13 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market funds | $ | 16,089 | $ | — | $ | — | $ | 16,089 | ||||||||
Corporate bonds | — | 1,005 | — | 1,005 | ||||||||||||
U.S. Treasury obligations | — | 2,000 | — | 2,000 | ||||||||||||
Common shares of CO2 Solutions | — | 795 | — | 795 | ||||||||||||
Total | $ | 16,089 | $ | 3,800 | $ | — | $ | 19,889 | ||||||||
Fair Value of Assets Held for Sale | ||||||||||||||||
As of December 31, 2013, Codexis had assets held for sale related to lab equipment located in the United States. The fair value of these assets was determined based on Level 3 inputs, primarily sales data for similar assets. For further discussion, see Note 8, "Assets Held for Sale." | ||||||||||||||||
There were no assets held for sale at September 30, 2014, and as such there was no fair value to measure on a non-recurring basis at September 30, 2014. | ||||||||||||||||
The fair value of assets held for sale at December 31, 2013, measured on a nonrecurring basis, is as follows (in thousands): | ||||||||||||||||
31-Dec-13 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets held for sale | $ | — | $ | — | $ | 2,179 | $ | 2,179 | ||||||||
Balance_Sheets_Details
Balance Sheets Details | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Balance Sheets Details [Abstract] | ' | |||||||||||||||||||||||||
Balance Sheets Details | ' | |||||||||||||||||||||||||
Balance Sheets Details | ||||||||||||||||||||||||||
Inventories, net | ||||||||||||||||||||||||||
Inventories, net consisted of the following (in thousands): | ||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Raw materials | $ | 575 | $ | 763 | ||||||||||||||||||||||
Work-in-process | 17 | 31 | ||||||||||||||||||||||||
Finished goods | 1,351 | 693 | ||||||||||||||||||||||||
Inventories, net | $ | 1,943 | $ | 1,487 | ||||||||||||||||||||||
Property and Equipment, net | ||||||||||||||||||||||||||
Property and equipment, net consisted of the following (in thousands): | ||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Laboratory equipment | $ | 23,069 | $ | 23,949 | ||||||||||||||||||||||
Leasehold improvements | 9,517 | 9,493 | ||||||||||||||||||||||||
Computer equipment | 3,257 | 3,196 | ||||||||||||||||||||||||
Office furniture and equipment | 1,227 | 1,228 | ||||||||||||||||||||||||
37,070 | 37,866 | |||||||||||||||||||||||||
Less: accumulated depreciation and amortization | (30,880 | ) | (29,461 | ) | ||||||||||||||||||||||
6,190 | 8,405 | |||||||||||||||||||||||||
Construction in progress | 25 | 41 | ||||||||||||||||||||||||
Property and equipment | 6,215 | 8,446 | ||||||||||||||||||||||||
Less: Impairment of laboratory equipment | (1,841 | ) | -1 | — | ||||||||||||||||||||||
Property and equipment, net | $ | 4,374 | $ | 8,446 | ||||||||||||||||||||||
(1) Plans to utilize certain CodeXol® assets changed in the second quarter of 2014 such that assets with a carrying value of $1.8 million were no longer recoverable. Accordingly, we recorded an impairment charge of $1.8 million, reducing the carrying value to zero (their estimated fair value, net of costs). The impairment charge was recorded within research and development expense for the nine months ended September 30, 2014. | ||||||||||||||||||||||||||
Intangible Assets, net | ||||||||||||||||||||||||||
Intangible assets consisted of the following (in thousands): | ||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | Weighted- | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | Average | ||||||||||||||||||||
Amount | Amount | Amount | Amount | Amortization | ||||||||||||||||||||||
Period | ||||||||||||||||||||||||||
(years) | ||||||||||||||||||||||||||
Maxygen intellectual property | $ | 20,244 | $ | (13,215 | ) | $ | 7,029 | $ | 20,244 | $ | (10,684 | ) | $ | 9,560 | 6 | |||||||||||
The estimated future amortization expense to be charged to research and development expenses through the year ending December 31, 2016 is as follows (in thousands): | ||||||||||||||||||||||||||
Year ending December 31: | Total | |||||||||||||||||||||||||
2014 (remaining 3 months) | $ | 843 | ||||||||||||||||||||||||
2015 | 3,374 | |||||||||||||||||||||||||
2016 | 2,812 | |||||||||||||||||||||||||
$ | 7,029 | |||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||
There were no changes in the carrying value of goodwill of $3,241,000 for the three months and nine months ended September 30, 2014 and 2013. |
Assets_Held_for_Sale
Assets Held for Sale | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Assets Held for Sale [Abstract] | ' | ||||
Assets Held for Sale | ' | ||||
Assets Held for Sale | |||||
In the fourth quarter of 2013, we announced that we would begin winding down Codexis' CodeXyme® cellulase enzyme program. As a result of the termination of this research program and corresponding reductions in headcount, we concluded that certain excess research and development equipment, including assets at Codexis' Hungarian subsidiary, were no longer held for use, and these assets were determined to meet the criteria to be classified as held for sale at December 31, 2013. In conjunction with classifying certain assets as held for sale, in 2013, we performed a detailed review of Codexis' excess research and development equipment with the assistance of a third party and determined that the estimated net sales price, less selling costs, was below the carrying value. A charge of $1,571,000 was recorded in the fourth quarter of 2013 to research and development expenses to reduce the value of held for sale assets to their estimated fair market value net of selling expenses. We reclassified the adjusted carrying value to Assets Held for Sale as of December 31, 2013. | |||||
In March 2014, we sold our Hungarian subsidiary including all of the equipment at this facility classified as assets held for sale for proceeds of $1.5 million and recognized a gain of $760,000. | |||||
During the second quarter of 2014, we changed our plan to sell certain U.S. research and development equipment. Such equipment, which had a carrying value of approximately $333,000, was put back in operational use and classified as held for use. Some of the unutilized equipment reclassified as held for use was exchanged for more suitable research equipment. In addition to the exchange of equipment, we recognized a loss of approximately $188,000. We also decided to expedite the disposition of held for sale assets by selling such assets through auction. As a result of the above changes to our plan to use the excess research and development equipment, we determined that further impairment charges should be recorded in the second quarter of 2014. Total impairment charges related to excess research and development equipment totaled $568,000 for the three months ended June 30, 2014. We disposed of the remaining held for sale equipment in the third quarter of 2014, which resulted in an additional impairment charge of $130,000. | |||||
Total assets reclassified as assets held for sale at September 30, 2014, were (in thousands): | |||||
Assets Held for Sale | Adjusted Carrying Value | ||||
Research & development equipment classified as held for sale at December 31, 2013 | $ | 2,179 | |||
Hungarian assets sold for the three months ended March 31, 2014 | (779 | ) | |||
U.S. assets sold for the three months ended March 31, 2014 | (6 | ) | |||
Research & development equipment classified as held for sale at March 31, 2014 | $ | 1,394 | |||
Research & development equipment reclassified as held for use | (333 | ) | |||
U.S. assets sold for the three months ended June 30, 2014 | (13 | ) | |||
Loss on exchange of assets | (188 | ) | |||
Change in estimated fair value of research equipment during three months ended June 30, 2014 | (568 | ) | |||
Research & development equipment classified as held for sale at June 30, 2014 | $ | 292 | |||
U.S. assets sold for the three months ended September 30, 2014 | (162 | ) | |||
Change in estimated fair value of research equipment during three months ended September 30, 2014 | $ | (130 | ) | ||
Research & development equipment classified as held for sale at September 30, 2014 | — | ||||
Sale_of_Hungarian_Subsidiary
Sale of Hungarian Subsidiary | 9 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
Sale of Hungarian Subsidiary | ' |
Sale of Hungarian Subsidiary | |
On March 13, 2014, we entered into an agreement with Intrexon Corporation to sell 100% of Codexis' equity interests in its Hungarian subsidiary, Codexis Laboratories Hungary Kft, as well as all assets of such subsidiary that were previously classified as held for sale. On March 15, 2014, the sale transaction closed and we received cash proceeds of $1,500,000 from the sale and recorded a net gain of $760,000 which was included in research and development expenses in connection with the sale. As part of the purchase, the buyer obtained all the Hungarian assets held for sale and assumed all employment and facility lease related contract obligations. There were no transaction related costs incurred other than legal fees, which were recorded in selling, general and administrative expenses. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
Exela PharmSci, Inc. | |
We signed a commercialization agreement with Exela in 2007, whereby Exela agreed to pay to us a contractual percentage share of Exela’s net profit from the sales of licensed products. | |
CMEA Ventures, which owns approximately 7.4% of Codexis' common stock, owns over 10% of Exela’s outstanding capital stock. Thomas R. Baruch, one of Codexis' directors, also serves on the board of directors of Exela and, as a limited partner in the CMEA Ventures funds that hold such shares of Exela, has an indirect pecuniary interest in the shares of Exela held by CMEA Ventures. | |
We recognized revenue from the revenue sharing arrangement of $1.5 million for the three months and $5.6 million for the nine months ended September 30, 2014, and $0.8 million for the three months and $2.3 million for the nine months ended September 30, 2013. We had no receivables from Exela at September 30, 2014. | |
Alexander A. Karsner | |
Alexander A. Karsner was a member of Codexis' board of directors until the expiration of his term at the close of our annual shareholder meeting on June 11, 2014. In addition, Mr. Karsner provided consulting services to Codexis through June 30, 2014. Amounts paid to Mr. Karsner for consulting services was nil for the three months and $60,000 for the nine months ended September 30, 2014, and $30,000 for the three months and $90,000 for the nine months ended September 30, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Commitments and Contingencies | ||||
Operating Leases | ||||
Codexis' headquarters are located in Redwood City, California where it leases approximately 107,000 square feet of office and laboratory space in four buildings within the same business park from Metropolitan Life Insurance Company ("MetLife"). Codexis entered into the initial lease with MetLife for a portion of this space in 2004 and the lease has been amended numerous times since then to add and subtract space and to amend the terms of the lease, with the latest amendment being in 2012. The various terms for the spaces under the lease have expiration dates that range from January 2017 through January 2020. | ||||
As of December 31, 2012, Codexis incurred $3.6 million of capital improvement costs related to the facilities leased from MetLife and received $3.1 million of reimbursements from the landlord out of the tenant improvement and HVAC allowances for the completed construction. The reimbursements are being amortized on a straight line basis over the term of the lease as a reduction in rent expense. As of September 30, 2014, the lease incentive obligation remaining was classified with other long-term liabilities on the condensed consolidated balance sheet for $1.8 million. | ||||
As part of a restructuring plan that Codexis undertook in the third quarter of 2012, Codexis began the process of vacating the 101 Saginaw Drive, Redwood City, California space and marketed the space for sublease. In March 2014, Codexis entered into a three-year sublease agreement with a subtenant, which terminates in April 2017, with the option to extend for two consecutive one-year terms thereafter. Sublease income is being recorded as a reduction of Codexis' rent expense and was $0.1 million for the three months and $0.2 million for the nine months ended September 30, 2014. | ||||
Codexis' lease obligations for the facility in Hungary were transferred to the buyer of Codexis' Hungarian subsidiary in March 2014. | ||||
Rent expense is recognized on a straight-line basis over the term of the lease. In accordance with the terms of the amended lease agreement, we exercised Codexis' right to deliver letters of credit in lieu of a security deposit. The letters of credit in the amount of $0.7 million as of September 30, 2014 were collateralized by deposit balances held by Codexis' bank. These deposits are recorded as restricted cash on the condensed consolidated balance sheets. | ||||
As of September 30, 2014, we had estimated asset retirement obligations of approximately $0.1 million from operating leases, requiring Codexis to restore the facilities that Codexis is renting to their original form. Codexis is expensing the asset retirement obligation over the terms of the respective leases. We review the estimated obligation each period and make adjustments for any changes in estimates. | ||||
Future minimum payments under non-cancellable operating leases at September 30, 2014 are as follows (in thousands): | ||||
Lease payments | ||||
Three months ending December 31, | ||||
2014 | $ | 669 | ||
Years ending December 31, | ||||
2015 | 2,743 | |||
2016 | 2,827 | |||
2017 | 2,677 | |||
2018 | 2,736 | |||
2019 and beyond | 3,054 | |||
Total | $ | 14,706 | ||
Litigation | ||||
Codexis has been subject to various legal proceedings related to matters that have arisen during the ordinary course of business. Although there can be no assurance as to the ultimate disposition of these matters, we have determined, based upon the information available, that the expected outcome of these matters, individually or in the aggregate, will not have a material adverse effect on the condensed consolidated financial position, results of operations or cash flows. | ||||
On July 30, 2013, Dyadic International, Inc. ("Dyadic") delivered notice to Codexis alleging that it is in breach under the Dyadic license agreement and stating that Dyadic intended to terminate the Dyadic license agreement in 60 days if the alleged breach was not cured to Dyadic's satisfaction. This notice was subsequently withdrawn by Dyadic in February 2014 in light of Codexis' decision to wind down its CodeXyme® cellulase enzyme program. Although we do not believe that the use of the licensed technology in its CodeXyme® cellulase enzyme program constituted a breach of the Dyadic license agreement, we can make no assurances that Dyadic will not make such allegations again in the future, or regarding our ability to resolve any possible future disputes with Dyadic on commercially reasonable terms or our ability to dispute with success, through legal action or otherwise, any possible future allegations by Dyadic that such use may have breached the Dyadic license agreement. | ||||
Other Contingencies | ||||
In November 2009, one of Codexis' foreign subsidiaries sold intellectual property to Codexis. Under the local laws, the sale of intellectual property to a nonresident legal entity is deemed an export and is not subject to VAT. However, there is uncertainty regarding whether the items sold represented intellectual property or research and development services, which would subject the sale to VAT. We believe that the uncertainty results in an exposure to pay VAT that is more than remote but less than likely to occur and, accordingly, we have not recorded an accrual for this exposure. If the sale is deemed a sale of research and development services, Codexis could be obligated to pay an estimated amount of $0.6 million. | ||||
Indemnifications | ||||
Codexis is required to recognize a liability for the fair value of any obligations Codexis assumes upon the issuance of a guarantee. Codexis has certain agreements with licensors, licensees and collaborators that contain indemnification provisions. In such provisions, Codexis typically agrees to indemnify the licensor, licensee and collaborator against certain types of third party claims. The maximum amount of the indemnifications is not limited. We accrue for known indemnification issues when a loss is probable and can be reasonably estimated. There were no accruals for expenses related to indemnification issues for any periods presented. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||
Stock-Based Compensation | ||||||||||||||||
Stock Plans | ||||||||||||||||
In 2002, Codexis adopted the 2002 Stock Plan (the “2002 Plan”), pursuant to which its board of directors issued incentive stock options, non-statutory stock options and stock purchase rights to its employees, officers, directors and consultants. In March 2010, Codexis' board of directors and stockholders approved the 2010 Equity Incentive Award Plan (the “2010 Plan”), which became effective upon the completion of its initial public offering ("IPO") in April 2010. The 2010 Plan is similar to the 2002 Plan but allows for issuance of additional awards, such as a RSU, PSU, RSA, deferred stock award and stock appreciation rights. A total of 1,100,000 shares of common stock were initially reserved for future issuance under the 2010 Plan and any shares of common stock reserved for future grant or issuance under Codexis' 2002 Plan that remained unissued at the time of completion of the IPO became available for future grant or issuance under the 2010 Plan. In addition, the shares reserved for issuance pursuant to the exercise of any outstanding awards under the 2002 Plan that expire unexercised will also become available for future issuance under the 2010 Plan. The 2010 Plan also provides for automatic annual increases in the number of shares reserved for future issuance. As of September 30, 2014, total shares remaining available for issuance were approximately 5.6 million. | ||||||||||||||||
Performance-contingent Restricted Stock Units | ||||||||||||||||
Codexis awarded 835,000 PSUs in the nine months ended September 30, 2014, and 523,048 PSUs in the nine months ended September 30, 2013, under the 2010 Plan, based upon the achievement of certain cash flow performance goals for each respective year. These PSUs vest such that one-half of the PSUs subject to the award vest one year following the grant, and the remainder of the PSUs vest two years following the grant, subject to Codexis achieving the performance goals and the recipient’s continued service to Codexis on each vesting date. If the performance goal is achieved at the threshold level, the number of shares issuable in respect of the PSUs would be equal to half the number of PSUs granted. If the performance goal is achieved at the target level, the number of shares issuable in respect of the PSUs would be equal to the number of PSUs granted. If the performance goal is achieved at the superior level, the number of shares issuable in respect of the PSUs would be equal to two times the number PSUs granted. The number of shares issuable upon achievement of the performance goal at the levels between the threshold and target levels or target level and superior levels is determined using linear interpolation. Achievement below the threshold level results in no shares being issuable in respect of the PSUs. | ||||||||||||||||
During the third quarter of 2014, we concluded that it was not probable that the performance objective would be achieved at the target level of 100%. As a result, we revised our estimate of achieving the performance goal to a linear point between the threshold level and the target level. Accordingly, during the third quarter of 2014, we reduced stock-based compensation expense to reflect this lower level of estimated achievement compared to the first half of 2014. | ||||||||||||||||
During 2013, we revised our estimate of forecasted performance criteria and concluded that the performance target would not likely be achieved for the PSUs that were granted in 2013. The 358,308 outstanding PSUs that were granted in 2013 were canceled in February 2014 when we determined that we had not attained the threshold performance target for the 2013 awards. | ||||||||||||||||
Stock-Based Compensation Expense | ||||||||||||||||
The following table presents total stock-based compensation expense by functional areas included in the condensed consolidated statements of operations for the three months and nine months ended September 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Research and development (1) | $ | 227 | $ | 97 | $ | 734 | $ | 989 | ||||||||
Selling, general and administrative | 828 | 529 | 2,896 | 2,372 | ||||||||||||
Total | $ | 1,055 | $ | 626 | $ | 3,630 | $ | 3,361 | ||||||||
(1) Stock-based compensation expense associated with cost of biocatalyst product sales is included in research and development. Amounts were immaterial for all periods presented. | ||||||||||||||||
The following table presents total stock-based compensation expense by security types included in the condensed consolidated statements of operations for the three months and nine months ended September 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock options | $ | 247 | $ | 397 | $ | 843 | $ | 1,538 | ||||||||
RSUs and RSAs | 722 | 527 | 2,383 | 1,823 | ||||||||||||
PSUs | 86 | (298 | ) | 404 | — | |||||||||||
Total | $ | 1,055 | $ | 626 | $ | 3,630 | $ | 3,361 | ||||||||
As of September 30, 2014, unrecognized stock-based compensation expense, net of expected forfeitures, was $1.7 million related to unvested employee stock options, $3.1 million related to unvested RSUs and RSAs and $0.7 million related to unvested PSUs. | ||||||||||||||||
Valuation Assumptions | ||||||||||||||||
The ranges of weighted-average assumptions used to estimate the fair value of employee stock options granted were as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected term (in years) | 6 | 6 | 6 | 6 | ||||||||||||
Volatility | 0.676 - 0.679 | 0.64 | 0.639 - 0.679 | 0.640 - 0.652 | ||||||||||||
Risk-free interest rate | 1.90% - 2.13% | 1.81 | % | 1.90% - 2.13% | 1.07% - 1.81% | |||||||||||
Dividend yield | — | % | — | % | — | % | — | % | ||||||||
Weighted-average estimated fair value of stock options granted | $ | 1.21 | $ | 1.17 | $ | 1.16 | $ | 1.34 | ||||||||
Capital_Stock
Capital Stock | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Equity [Abstract] | ' | |||||||
Capital Stock | ' | |||||||
Capital Stock | ||||||||
Exercise of options | ||||||||
For the nine months ended September 30, 2014, 136,796 shares were exercised at a weighted-average exercise price of $1.34 per share, for total cash proceeds of less than $0.2 million. | ||||||||
Warrants | ||||||||
Codexis' outstanding warrants are exercisable for common stock at any time during their respective terms. As of September 30, 2014, the following warrants remain outstanding: | ||||||||
30-Sep-14 | ||||||||
Issue Date | Shares Subject | Exercise Price | Expiration | |||||
to warrants | per Share | |||||||
17-Jul-07 | 2,834 | $ | 12.45 | February 9, 2016 | ||||
28-Sep-07 | 72,727 | $ | 8.25 | September 28, 2017 | ||||
Significant_Customer_and_Geogr
Significant Customer and Geographic Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Significant Customer and Geographic Information | ' | |||||||||||||||
Significant Customer and Geographic Information | ||||||||||||||||
Our significant customers each contributed 10% or more of our net revenue as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Customer A | 21 | % | 21 | % | 27 | % | 10 | % | ||||||||
Customer B | 27 | % | 34 | % | 26 | % | 47 | % | ||||||||
Customer C | * | — | % | 13 | % | * | ||||||||||
Customer D | 16 | % | * | * | * | |||||||||||
Customer E | 10 | % | * | * | * | |||||||||||
Customer F | * | — | % | * | 10 | % | ||||||||||
* Less than 10% | ||||||||||||||||
The balances of accounts receivable, net for these customers as a percent of total accounts receivable, net were Customer B of 32%, Customer C of 1% and Customer D of 10% at September 30, 2014 and Customer C of 51% at December 31, 2013. | ||||||||||||||||
We currently sell primarily to pharmaceutical companies throughout the world by the extension of trade credit terms based on an assessment of each customers’ financial condition. Trade credit terms are generally offered without collateral and may include a discount for prompt payment for specific customers. To manage our credit exposure, we perform ongoing evaluations of our customers’ financial conditions. We provided for an increase in allowance for doubtful accounts of $53,000 in the three months and nine months ended September 30, 2014 and $328,000 in the three months and nine months ended September 30, 2013. | ||||||||||||||||
Net revenue, by geographic region was as follows (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
United States | $ | 4,747 | $ | 2,738 | $ | 12,518 | $ | 7,039 | ||||||||
Asia | ||||||||||||||||
India | 225 | 213 | 636 | 2,721 | ||||||||||||
Singapore | 466 | — | 466 | 6,721 | ||||||||||||
Others | 192 | 209 | 872 | 751 | ||||||||||||
Europe | ||||||||||||||||
Ireland | — | — | 2,744 | 1,219 | ||||||||||||
Others | 1,842 | 757 | 3,864 | 3,921 | ||||||||||||
Other | — | 26 | 16 | 25 | ||||||||||||
Total Revenue | $ | 7,472 | $ | 3,943 | $ | 21,116 | $ | 22,397 | ||||||||
Identifiable long-lived assets by geographic region were as follows (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Long-lived assets | ||||||||||||||||
United States | $ | 11,403 | $ | 16,189 | ||||||||||||
Europe (1) | — | 2,123 | ||||||||||||||
Total long-lived assets | $ | 11,403 | $ | 18,312 | ||||||||||||
-1 | Primarily Hungary |
Restructuring
Restructuring | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Restructuring Costs [Abstract] | ' | |||
Restructuring | ' | |||
Restructuring | ||||
Q4 2013 Restructuring Plan | ||||
During the fourth quarter of 2013, Codexis' board of directors approved and committed to a restructuring plan (the “Q4 2013 Restructuring Plan”) to reduce its cost structure resulting from Codexis' decision to begin winding down its CodeXyme® cellulase enzymes program, which included a total of 15 employee terminations in the United States. For the year ended December 31, 2013, costs of $809,000 for employee severance and other termination benefits have been recognized, consisting of $573,000 in research and development expenses and $236,000 in selling, general and administrative expenses. For the three months ended March 31, 2014, Codexis made severance payments of $238,000 and there was no remaining liability at March 31, 2014. Associated with the Q4 2013 Restructuring Plan, Codexis announced it was selling certain research and development assets that had become excess to future requirements (see Note 8, "Assets Held for Sale"). We do not anticipate recording any further costs under this restructuring plan. | ||||
All obligations under the restructuring plans were satisfied in the first quarter of 2014. The following table summarizes the activity in the restructuring accrual for the three months ended March 31, 2014 (in thousands): | ||||
Q4 2013 Restructuring Plan | ||||
Balance at December 31, 2013 | $ | 277 | ||
Cash payments for the first quarter of 2014 | (238 | ) | ||
Adjustments to previously accrued charges | (39 | ) | ||
Balance at March 31, 2014, June 30, 2014 and September 30, 2014 | $ | — | ||
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation and Principles of Consolidation | ' | |
Basis of Presentation and Principles of Consolidation | ||
The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2013. The condensed consolidated balance sheet at December 31, 2013 has been derived from the audited consolidated financial statements at that date, but does not include all disclosures, including notes, required by GAAP for complete financial statements. | ||
The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to present fairly its financial position as of September 30, 2014 and results of its operations and comprehensive loss for the three months and nine months ended September 30, 2014 and 2013, and cash flows for the nine months ended September 30, 2014 and 2013. The interim results are not necessarily indicative of the results for any future interim period or for the entire year. Certain prior period amounts have been reclassified to conform to current period presentation. | ||
The unaudited interim condensed consolidated financial statements include the amounts of Codexis, Inc. and its wholly-owned subsidiaries in the United States, Brazil, Hungary (through the sale date of March 13, 2014), India, Mauritius, the Netherlands, and Singapore (dissolved in October 2014). All significant intercompany balances and transactions have been eliminated in consolidation. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. We regularly assess these estimates which primarily affect revenue recognition, accounts receivable, inventories, the valuation of investment securities and marketable securities, assets held for sale, intangible assets, goodwill arising out of business acquisitions, accrued liabilities, stock awards and the valuation allowances associated with deferred tax assets. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements. | ||
Segment Reporting | ' | |
Segment Reporting | ||
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company's chief operating decision maker is Codexis' Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis, accompanied by information about revenues by geographic region, for purposes of allocating resources and evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results beyond revenue goals or plans for levels or components below the consolidated unit level. Accordingly, the Company has a single reporting segment. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
We recognize revenue from the sale of our biocatalyst products, biocatalyst research and development agreements and profit sharing arrangements. Revenue is recognized when the related costs are incurred and the four basic criteria of revenue recognition are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. Where the revenue recognition criteria are not met, we defer the recognition of revenue by recording deferred revenue until such time that all criteria of revenue recognition are met. | ||
Revenue from Multiple Element Arrangements | ||
We account for multiple element arrangements, such as license and platform technology transfer agreements in which a licensee may purchase several deliverables, in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 605-25, “Multiple Element Arrangements.” For new or materially amended multiple element arrangements, we identify the deliverables at the inception of the arrangement and each deliverable within a multiple deliverable revenue arrangement is accounted for as a separate unit of accounting if both of the following criteria are met: (1) the delivered item or items have value to the customer on a standalone basis and (2) for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. We allocate revenue to each non-contingent element based on the relative selling price of each element. When applying the relative selling price method, we determine the selling price for each deliverable using vendor-specific objective evidence (“VSOE”) of selling price, if it exists, or third-party evidence (“TPE”) of selling price, if it exists. If neither VSOE nor TPE of selling price exist for a deliverable, we use the best estimated selling price for that deliverable. Revenue allocated to each element is then recognized based on when the basic four revenue recognition criteria are met for each element. | ||
Where a portion of non-refundable up-front fees or other payments received are allocated to continuing performance obligations under the terms of a collaborative arrangement, they are recorded as deferred revenue and recognized as revenue or as an accrued liability and recognized as a reduction of research and development expenses ratably over the term of our estimated performance period under the agreement. We determine the estimated performance periods, and they are periodically reviewed based on the progress of the related program. The effect of any change made to an estimated performance period and, therefore, to revenue recognized, would occur on a prospective basis in the period that the change was made. | ||
Milestones | ||
A payment that is contingent upon the achievement of a substantive milestone is recognized in its entirety in the period in which the milestone is achieved. A milestone is an event (i) that can only be achieved based in whole or in part on either our performance or on the occurrence of a specific outcome resulting from our performance, (ii) for which there is, as of the date the arrangement is entered into, substantive uncertainty that the event will be achieved and (iii) results in additional payments being due to us. Milestones are considered substantive when the consideration earned from the achievement of the milestone (i) is commensurate with either our performance to achieve the milestone or the enhancement of the value of the item delivered as a result of a specific outcome resulting from its performance, (ii) relates solely to past performance and (iii) is reasonable relative to all deliverable and payment terms in the arrangement. | ||
Biocatalyst Product Sales | ||
Biocatalyst product sales consist of sales of biocatalyst intermediates, active pharmaceutical ingredients and Codex® Biocatalyst Panels and Kits. Biocatalyst product sales are recognized once passage of title and risk of loss has occurred and contractually specified acceptance criteria, if any, have been met, provided all other revenue recognition criteria have also been met. Shipping and handling costs charged to customers are recorded as revenue. | ||
Biocatalyst Research and Development | ||
Biocatalyst research and development agreements typically provide us with multiple revenue streams, including: research services fees for full time employee ("FTE") research services, up-front licensing fees, technology access, contingent payments upon achievement of contractual criteria, and royalty fees based on the licensee's product sales or cost savings achieved by Codexis' customers. | ||
We perform biocatalyst research and development activities as specified in each respective customer agreement. Payments for services received are not refundable. Certain research agreements are based on a contractual reimbursement rate per FTE working on the project. We recognize revenue from research services as those services are performed over the contractual performance periods. When up-front payments are combined with FTE services in a single unit of accounting, we recognize the up-front payments using the proportionate performance method of revenue recognition based upon the actual amount of research labor hours incurred relative to the amount of the total expected labor hours to be incurred by us, up to the amount of cash received. In cases where the planned levels of research services fluctuate substantially over the research term, we are required to make estimates of the total hours required to perform our obligations. | ||
We recognize revenue from nonrefundable, up-front license fees or technology access payments that are not dependent on any future performance by us when such amounts are earned. If we have continuing obligations to perform under the arrangement, such fees are recognized over the estimated period of continuing performance obligation. | ||
We recognize revenue from other payments received which are contingent solely upon the passage of time or the result of a customer's performance when earned in accordance with the contract terms and when such payments can be reasonably estimated and collectability of such payments is reasonably assured. | ||
We recognize revenue from royalties based on licensees’ sales of our biocatalyst products or products using our technologies. Royalties are recognized as earned in accordance with the contract terms when royalties from licensees can be reasonably estimated and collectability is reasonably assured. For the majority of our royalty revenue, estimates are made using notification of the sale of licensed products from the licensees. | ||
Revenue Sharing Arrangement | ||
We recognize revenue from a revenue sharing arrangement based upon sales of licensed products by our revenue share partner Exela PharmSci, Inc. ("Exela") (see Note 10, "Related Party Transactions"). We recognize revenue net of product and selling costs upon notification from our revenue share partner of our portion of net profit based on the contractual percentage from the sale of licensed product. | ||
Allowances | ||
Allowances against receivable balances primarily relate to product returns and prompt pay sales discounts, and are recorded in the same period that the related revenue is recognized, resulting in a reduction in biocatalyst product sales revenue and the reporting of accounts receivable net of allowances. | ||
We estimate an allowance for doubtful accounts through specific identification of potentially uncollectible accounts receivable based on an analysis of our accounts receivable aging. Uncollectible accounts receivable are written off against the allowance for doubtful accounts when all efforts to collect them have been exhausted. Recoveries are recognized when they are received. Actual collection losses may differ from our estimates and could be material to our consolidated financial position, results of operations, and cash flows. | ||
Cost of Biocatalyst Product Sales | ' | |
Cost of Biocatalyst Product Sales | ||
Cost of biocatalyst product sales comprises both internal and third party fixed and variable costs including amortization of purchased technology, materials and supplies, labor, facilities and other overhead costs associated with our biocatalyst product sales. Shipping costs are included in our cost of biocatalyst product sales. Such charges were not significant in any of the periods presented. Research and development expenses related to FTE services under the research and development agreements approximate the research funding over the term of the respective agreements and are included in research and development expense. | ||
Research and Development Expenses | ' | |
Research and Development Expenses | ||
Research and development expenses consist of costs incurred for internal projects as well as partner-funded collaborative research and development activities. These costs include our direct and research-related overhead expenses, which include salaries and other personnel-related expenses (including stock-based compensation), occupancy-related costs, supplies, depreciation of facilities and laboratory equipment and amortization of acquired technologies, as well as external costs, and are expensed as incurred. Costs to acquire technologies that are utilized in research and development and that have no alternative future use are expensed when incurred. | ||
Stock-Based Compensation | ' | |
Stock-Based Compensation | ||
We use the Black-Scholes-Merton option pricing model to estimate the fair value of options granted under Codexis' equity incentive plans. The Black-Scholes-Merton option valuation model requires the use of assumptions, including the expected term of the award and the expected stock price volatility. We used the "simplified" method as described in Staff Accounting Bulletin No. 107, "Share-Based Payment," for the expected option term because Codexis' historical option exercise data is limited due to its initial public offering in 2010. We used Codexis' historical volatility to estimate expected stock price volatility. The risk-free rate assumption was based on United States Treasury instruments whose terms were consistent with the expected term of the stock option. The expected dividend assumption was based on Codexis' history and expectation of dividend payouts. | ||
Restricted Stock Units (RSUs), Restricted Stock Awards (RSAs) and performance-contingent restricted stock units (PSUs) were measured based on the fair market values of the underlying stock on the dates of grant. PSUs awarded may be conditional upon the attainment of one or more performance objectives over a specified period. At the end of the performance period, if the goals are attained, the awards are granted. | ||
Stock-based compensation expense was calculated based on awards ultimately expected to vest and was reduced for estimated forfeitures at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differed from those estimates. The estimated annual forfeiture rates for stock options, RSUs, PSUs, and RSAs are based on Codexis' historical forfeiture experience. | ||
The estimated fair value of stock options, RSUs and RSAs is expensed on a straight-line basis over the vesting term of the grant and the estimated fair value of PSUs is expensed using an accelerated method over the term of the award once management has determined that it is probable that performance objective will be achieved. Compensation expense is recorded over the requisite service period based on management's best estimate as to whether it is probable that the shares awarded are expected to vest. Management assesses the probability of the performance milestones being met on a continuous basis. | ||
We account for stock awards issued to non-employees based on their estimated fair value determined using the Black-Scholes-Merton option-pricing model. Compensation expense for the stock awards granted to non-employees is recognized based on the fair value of awards as they vest, during the period the related services are rendered. | ||
Foreign Currency Translation | ' | |
Foreign Currency Translation | ||
The assets and liabilities of foreign subsidiaries, where the local currency is the functional currency, are translated from their respective functional currencies into United States dollars at the exchange rates in effect at the balance sheet date, with resulting foreign currency translation adjustments recorded in the consolidated statement of comprehensive loss. Revenue and expense amounts are translated at average rates during the period. | ||
Where the United States dollar is the functional currency, nonmonetary assets and liabilities originally acquired or assumed in other currencies are recorded in United States dollars at the exchange rates in effect at the date they were acquired or assumed. Monetary assets and liabilities denominated in other currencies are translated into United States dollars at the exchange rates in effect at the balance sheet date. Translation adjustments are recorded in other expense in the accompanying condensed consolidated statements of operations. Gains and losses realized from transactions, including intercompany balances not considered as permanent investments, denominated in currencies other than an entity’s functional currency, are included in other expense in the accompanying condensed consolidated statements of operations. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents | ||
We consider all highly liquid investments with maturity dates of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks and money market funds. The majority of cash and cash equivalents is maintained with major financial institutions in North America. Deposits with these financial institutions may exceed the amount of insurance provided on such deposits. | ||
Inventories | ' | |
Inventories | ||
Inventories are stated at the lower of cost or market value. Cost is determined using a weighted-average approach, assuming full absorption of direct and indirect manufacturing costs, based on our product capacity utilization assumptions. If inventory costs exceed expected market value due to obsolescence or lack of demand, reserves are recorded for the difference between the cost and the estimated market value. These reserves are determined based on significant estimates. In addition, inventories include employee stock-based compensation expenses. | ||
Investment Securities | ' | |
Investment Securities | ||
We invest in debt and equity securities and we classify those investments as available-for-sale. These securities are carried at estimated fair value (see Note 5, “Investment Securities,” below) with unrealized gains and losses included in accumulated other comprehensive loss in stockholders’ equity. Available-for-sale equity securities and available-for sale debt securities with remaining maturities of greater than one year are classified as long-term. | ||
We review several factors to determine whether a loss is other-than-temporary. These factors include but are not limited to: the intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value, the length of the time and the extent to which the market value of the investment has been less than cost and the financial condition and near-term prospects of the issuer. Unrealized losses are charged against “Other expense” when a decline in fair value is determined to be other-than-temporary. | ||
Amortization of purchase premiums and accretion of purchase discounts and realized gains and losses of debt securities are included in interest income. The cost of securities sold is based on the specific-identification method. | ||
Fair Value of Financial Instruments | ' | |
Fair Value Measurements | ||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and we consider counterparty credit risk in our assessment of fair value. Carrying amounts of Codexis' financial instruments, including cash equivalents, marketable investments, accounts receivable, accounts payable and accrued liabilities, approximate their fair values as of the balance sheet dates because of their generally short maturities. | ||
The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: | ||
• | Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. | |
• | Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. | |
• | Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions. | |
For Level 2 financial instruments, our investment adviser provides monthly account statements documenting the value of corporate bonds and U.S. Treasury obligations based on prices received from an independent third-party valuation service provider. This third party evaluates the types of securities in our investment portfolio and calculates a fair value using a multi-dimensional pricing model that includes a variety of inputs, including quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks and default rates that are observable at commonly quoted intervals. As we are ultimately responsible for the determination of the fair value of these instruments, we perform quarterly analyses using prices obtained from another independent provider of financial instrument valuations, to validate that the prices we have used are reasonable estimates of fair value. | ||
Concentrations of Credit Risk | ' | |
Concentrations of Credit Risk | ||
Our financial instruments that are potentially subject to concentration of credit risk primarily consist of: cash equivalents, short-term investments, accounts receivable, marketable securities, and restricted cash. We invest cash that is not required for immediate operating needs principally in money market funds and corporate securities through banks and other financial institutions in the United States, as well as in foreign countries. | ||
Long-Lived and Intangible Assets | ' | |
Long-Lived and Intangible Assets | ||
Our intangible assets are finite-lived and consist of customer relationships, developed core technology, trade names, and the intellectual property (“IP”) rights associated with the acquisition of Maxygen Inc.'s ("Maxygen") directed evolution technology in 2010. Intangible assets were recorded at their fair values at the date Codexis acquired the assets and, for those assets having finite useful lives, are amortized using the straight-line method over their estimated useful lives. Our long-lived assets include property and equipment, and other non-current assets. | ||
We determined that Codexis has a single entity wide asset group (“Asset Group”). The directed evolution technology patent portfolio acquired from Maxygen (“Core IP”) is the most significant component of the Asset Group since it is the base technology for all aspects of our research and development activities, and represents the basis for all of Codexis' identifiable cash flow generating capacity. Consequently, we do not believe that identification of independent cash flows associated with Codexis long-lived assets is currently possible at any lower level than the Asset Group. | ||
The Core IP is the only finite-lived intangible asset on Codexis' condensed consolidated balance sheet as of September 30, 2014. There has been no significant change in the utilization or estimated life of the Core IP since we acquired the technology patent portfolio from Maxygen. | ||
The carrying value of Codexis' long-lived assets in the Asset Group may not be recoverable based upon the existence of one or more indicators of impairment which could include: a significant decrease in the market price of Codexis' common stock; current period cash flow losses or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the assets; slower growth rates in Codexis' industry; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the assets; loss of significant customers or partners; or the current expectation that the assets will more likely than not be sold or disposed of significantly before the end of their estimated useful life. | ||
We evaluate recoverability of intangible assets based on the sum of the undiscounted cash flows expected to result from the use, and the eventual disposal of, the Asset Group. We make estimates and judgments about the future undiscounted cash flows over the remaining useful life of the Asset Group. Codexis' anticipated future cash flows include our estimates of existing or in process product sales, production and operating costs, future capital expenditures, working capital needs, and assumptions regarding the ultimate sale of the Asset Group at the end of the life of the primary asset. The useful life of the Asset Group was based on the estimated useful life of the Core IP, the primary asset at the time of acquisition. There has been no change in the estimated useful life of the Asset Group. Although our cash flow forecasts are based on assumptions that are consistent with our plans, there is significant judgment involved in determining the cash flows attributable to the Asset Group over its estimated remaining useful life. | ||
Goodwill | ' | |
Goodwill | ||
We determined that Codexis has only one operating segment and reporting unit under the criteria in ASC 280, "Segment Reporting." Accordingly, our review of goodwill impairment indicators is performed at the Codexis level. We review goodwill impairment annually in the fourth quarter of each of Codexis' fiscal years and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. | ||
The goodwill impairment test consists of a two-step process. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of the reporting unit to Codexis' carrying value. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired, and the second step of the impairment test is not required. | ||
We use Codexis' market capitalization as an indicator of fair value. We believe that since its reporting unit is publicly traded, the ability of a controlling stockholder to benefit from synergies and other intangible assets that arise from control might cause the fair value of Codexis' reporting unit as a whole to exceed its market capitalization. However, we believe that the fair value measurement need not be based solely on the quoted market price of an individual share of Codexis' common stock, but also can consider the impact of a control premium in measuring the fair value of its reporting unit. | ||
If we were to use an income approach, it would establish a fair value by estimating the present value of Codexis' projected future cash flows expected to be generated from its business. The discount rate applied to the projected future cash flows to arrive at the present value would be intended to reflect all risks of ownership and the associated risks of realizing the stream of projected future cash flows. Our discounted cash flow methodology would consider projections of financial performance for a period of several years combined with an estimated residual value. The most significant assumptions we would use in a discounted cash flow methodology are the discount rate, the residual value and expected future revenue, gross margins and operating costs, along with considering any implied control premium. | ||
Should Codexis' market capitalization be less than the total stockholder's equity as of our annual test date or as of any interim impairment testing date, we would also consider market comparables, recent trends in Codexis' stock price over a reasonable period and, if appropriate, use an income approach to determine whether the fair value of its reporting unit is greater than the carrying amount. | ||
The second step, if required, compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. Implied fair value is the excess of the fair value of the reporting unit over the fair value of all identified assets and liabilities. We base our fair value estimates on assumptions we believe to be reasonable. Actual future results may differ from those estimates. | ||
Restricted Cash | ' | |
Restricted Cash | ||
Restricted cash consisted of amounts invested in savings accounts primarily for purposes of securing a standby letter of credit as collateral for Codexis' Redwood City, California facility lease agreement. | ||
Income Taxes | ' | |
Income Taxes | ||
We use the liability method of accounting for income taxes, whereby deferred tax assets or liability account balances are calculated at the balance sheet date using current tax laws and rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount that will more likely than not be realized. | ||
We make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of tax credits, benefits and deductions and in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expenses for tax and financial statement purposes. Significant changes to these estimates may result in an increase or decrease to Codexis' tax provision in a subsequent period. | ||
In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will be realized on a jurisdiction by jurisdiction basis. The ultimate realization of deferred tax assets is dependent upon the generation of taxable income in the future. We have recorded a deferred tax asset in jurisdictions where ultimate realization of deferred tax assets is more likely than not to occur. | ||
We make estimates and judgments about Codexis' future taxable income that are based on assumptions that are consistent with our plans and estimates. Should the actual amounts differ from our estimates, the amount of our valuation allowance could be materially impacted. Any adjustment to the deferred tax asset valuation allowance would be recorded in the income statement for the periods in which the adjustment is determined to be required. With the sale of the Hungarian subsidiary in the quarter ended March 31, 2014, the related net operating losses and other tax attributes are no longer available to Codexis. The related deferred tax assets had a full valuation allowance and, as a result, their removal did not have a material impact to the financial statements. | ||
We account for uncertainty in income taxes as required by the provisions of ASC Topic 740, "Income Taxes," which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to estimate and measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as this requires us to determine the probability of various possible outcomes. We consider many factors when evaluating and estimating Codexis' tax positions and tax benefits, which may require periodic adjustments and may not accurately anticipate actual outcomes. | ||
The Tax Reform Act of 1986 and similar state provisions limit the use of net operating loss carryforwards in certain situations where equity transactions result in a change of ownership as defined by Internal Revenue Code Section 382. In the event Codexis should experience such a change of ownership utilization of Codexis' federal and state net operating loss carryforwards could be limited. | ||
Recently Issued and Adopted Accounting Guidance | ' | |
Recently Issued and Adopted Accounting Guidance | ||
From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by us as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our consolidated financial statements upon adoption. | ||
In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, "Revenue from Contracts with Customers". This standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The main principle of ASU 2014-09 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 provides companies with two implementation methods: (i) apply the standard retrospectively to each prior reporting period presented (full retrospective application); or (ii) apply the standard retrospectively with the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application (modified retrospective application). This guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application is not permitted. We are currently in the process of evaluating the impact of the pending adoption of ASU 2014-09 on Codexis' consolidated financial statements. | ||
In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements—Going Concern (Sub Topic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern". This ASU provides guidance to an entity’s management with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by entities today in the financial statement footnotes. This ASU is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. We are currently evaluating the impact of this ASU on our consolidated financial statements and footnote disclosures. |
Net_Loss_per_Share_Tables
Net Loss per Share (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Securities not included in the net loss per common share calculations | ' | |||||||||||
The following shares were not included in the computation of diluted net loss per share (in thousands): | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Options to purchase common stock | 3,674 | 4,805 | 3,674 | 4,805 | ||||||||
Restricted stock units/awards | 1,950 | 1,665 | 1,950 | 1,665 | ||||||||
Performance-contingent restricted stock units | 774 | — | 774 | — | ||||||||
Warrants to purchase common stock | 75 | 75 | 75 | 75 | ||||||||
Total shares excluded as anti-dilutive | 6,473 | 6,545 | 6,473 | 6,545 | ||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Cash Equivalents and Marketable Securities [Abstract] | ' | |||||||||||||||||
Schedule of cash equivalents and marketable securities | ' | |||||||||||||||||
At September 30, 2014, investment securities classified as available-for-sale equity securities and money market funds consisted of the following (in thousands): | ||||||||||||||||||
30-Sep-14 | ||||||||||||||||||
Adjusted Cost | Gross | Gross | Estimated | Average | ||||||||||||||
Unrealized | Unrealized | Fair Value | Contractual | |||||||||||||||
Gains | Losses | Maturities | ||||||||||||||||
(in days) | ||||||||||||||||||
Money market funds (1) | $ | 14,600 | $ | — | $ | — | $ | 14,600 | n/a | |||||||||
Common shares of CO2 Solutions (2) | 563 | 468 | — | 1,031 | n/a | |||||||||||||
Total | $ | 15,163 | $ | 468 | $ | — | $ | 15,631 | ||||||||||
(1) Money market funds are classified in cash and cash equivalents on Codexis' condensed consolidated balance sheets. | ||||||||||||||||||
(2) Common shares of CO2 Solutions are classified in marketable securities on Codexis' condensed consolidated balance sheets. | ||||||||||||||||||
At December 31, 2013, investment securities classified as available-for-sale equity securities and money market funds consisted of the following (in thousands): | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Adjusted Cost | Gross | Gross | Estimated | Average | ||||||||||||||
Unrealized | Unrealized | Fair Value | Contractual | |||||||||||||||
Gains | Losses | Maturities | ||||||||||||||||
(in days) | ||||||||||||||||||
Money market funds (1) | $ | 16,089 | $ | — | $ | — | $ | 16,089 | n/a | |||||||||
Corporate bonds | 1,002 | 3 | — | 1,005 | 140 | |||||||||||||
U.S. Treasury obligations | 2,000 | — | — | 2,000 | 59 | |||||||||||||
Common shares of CO2 Solutions (2) | 563 | 232 | — | 795 | n/a | |||||||||||||
Total | $ | 19,654 | $ | 235 | $ | — | $ | 19,889 | ||||||||||
(1) Money market funds are classified in cash and cash equivalents on Codexis' condensed consolidated balance sheets. | ||||||||||||||||||
(2) Common shares of CO2 Solutions are classified in marketable securities on Codexis' condensed consolidated balance sheets. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' | |||||||||||||||
Summary of financial instruments measured at fair value on a recurring basis | ' | |||||||||||||||
The following table presents the financial instruments that were measured at fair value on a recurring basis at September 30, 2014 by level within the fair value hierarchy (in thousands): | ||||||||||||||||
30-Sep-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market funds | $ | 14,600 | $ | — | $ | — | $ | 14,600 | ||||||||
Common shares of CO2 Solutions | — | 1,031 | — | 1,031 | ||||||||||||
Total | $ | 14,600 | $ | 1,031 | $ | — | $ | 15,631 | ||||||||
The following table presents the financial instruments that were measured at fair value on a recurring basis at December 31, 2013 by level within the fair value hierarchy (in thousands): | ||||||||||||||||
31-Dec-13 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market funds | $ | 16,089 | $ | — | $ | — | $ | 16,089 | ||||||||
Corporate bonds | — | 1,005 | — | 1,005 | ||||||||||||
U.S. Treasury obligations | — | 2,000 | — | 2,000 | ||||||||||||
Common shares of CO2 Solutions | — | 795 | — | 795 | ||||||||||||
Total | $ | 16,089 | $ | 3,800 | $ | — | $ | 19,889 | ||||||||
Disclosure of Long Lived Assets Held-for-sale | ' | |||||||||||||||
The fair value of assets held for sale at December 31, 2013, measured on a nonrecurring basis, is as follows (in thousands): | ||||||||||||||||
31-Dec-13 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets held for sale | $ | — | $ | — | $ | 2,179 | $ | 2,179 | ||||||||
Total assets reclassified as assets held for sale at September 30, 2014, were (in thousands): | ||||||||||||||||
Assets Held for Sale | Adjusted Carrying Value | |||||||||||||||
Research & development equipment classified as held for sale at December 31, 2013 | $ | 2,179 | ||||||||||||||
Hungarian assets sold for the three months ended March 31, 2014 | (779 | ) | ||||||||||||||
U.S. assets sold for the three months ended March 31, 2014 | (6 | ) | ||||||||||||||
Research & development equipment classified as held for sale at March 31, 2014 | $ | 1,394 | ||||||||||||||
Research & development equipment reclassified as held for use | (333 | ) | ||||||||||||||
U.S. assets sold for the three months ended June 30, 2014 | (13 | ) | ||||||||||||||
Loss on exchange of assets | (188 | ) | ||||||||||||||
Change in estimated fair value of research equipment during three months ended June 30, 2014 | (568 | ) | ||||||||||||||
Research & development equipment classified as held for sale at June 30, 2014 | $ | 292 | ||||||||||||||
U.S. assets sold for the three months ended September 30, 2014 | (162 | ) | ||||||||||||||
Change in estimated fair value of research equipment during three months ended September 30, 2014 | $ | (130 | ) | |||||||||||||
Research & development equipment classified as held for sale at September 30, 2014 | — | |||||||||||||||
Balance_Sheets_Details_Tables
Balance Sheets Details (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Balance Sheets Details [Abstract] | ' | |||||||||||||||||||||||||
Schedule of inventory components | ' | |||||||||||||||||||||||||
Inventories, net consisted of the following (in thousands): | ||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Raw materials | $ | 575 | $ | 763 | ||||||||||||||||||||||
Work-in-process | 17 | 31 | ||||||||||||||||||||||||
Finished goods | 1,351 | 693 | ||||||||||||||||||||||||
Inventories, net | $ | 1,943 | $ | 1,487 | ||||||||||||||||||||||
Schedule of property and equipment, net | ' | |||||||||||||||||||||||||
Property and equipment, net consisted of the following (in thousands): | ||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Laboratory equipment | $ | 23,069 | $ | 23,949 | ||||||||||||||||||||||
Leasehold improvements | 9,517 | 9,493 | ||||||||||||||||||||||||
Computer equipment | 3,257 | 3,196 | ||||||||||||||||||||||||
Office furniture and equipment | 1,227 | 1,228 | ||||||||||||||||||||||||
37,070 | 37,866 | |||||||||||||||||||||||||
Less: accumulated depreciation and amortization | (30,880 | ) | (29,461 | ) | ||||||||||||||||||||||
6,190 | 8,405 | |||||||||||||||||||||||||
Construction in progress | 25 | 41 | ||||||||||||||||||||||||
Property and equipment | 6,215 | 8,446 | ||||||||||||||||||||||||
Less: Impairment of laboratory equipment | (1,841 | ) | -1 | — | ||||||||||||||||||||||
Property and equipment, net | $ | 4,374 | $ | 8,446 | ||||||||||||||||||||||
(1) Plans to utilize certain CodeXol® assets changed in the second quarter of 2014 such that assets with a carrying value of $1.8 million were no longer recoverable. Accordingly, we recorded an impairment charge of $1.8 million, reducing the carrying value to zero (their estimated fair value, net of costs). The impairment charge was recorded within research and development expense for the nine months ended September 30, 2014. | ||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | ' | |||||||||||||||||||||||||
Intangible assets consisted of the following (in thousands): | ||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | Weighted- | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | Average | ||||||||||||||||||||
Amount | Amount | Amount | Amount | Amortization | ||||||||||||||||||||||
Period | ||||||||||||||||||||||||||
(years) | ||||||||||||||||||||||||||
Maxygen intellectual property | $ | 20,244 | $ | (13,215 | ) | $ | 7,029 | $ | 20,244 | $ | (10,684 | ) | $ | 9,560 | 6 | |||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||||||||||||||||||||
The estimated future amortization expense to be charged to research and development expenses through the year ending December 31, 2016 is as follows (in thousands): | ||||||||||||||||||||||||||
Year ending December 31: | Total | |||||||||||||||||||||||||
2014 (remaining 3 months) | $ | 843 | ||||||||||||||||||||||||
2015 | 3,374 | |||||||||||||||||||||||||
2016 | 2,812 | |||||||||||||||||||||||||
$ | 7,029 | |||||||||||||||||||||||||
Assets_Held_for_Sale_Tables
Assets Held for Sale (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Assets Held for Sale [Abstract] | ' | |||||||||||||||
Disclosure of Long Lived Assets Held-for-sale | ' | |||||||||||||||
The fair value of assets held for sale at December 31, 2013, measured on a nonrecurring basis, is as follows (in thousands): | ||||||||||||||||
31-Dec-13 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets held for sale | $ | — | $ | — | $ | 2,179 | $ | 2,179 | ||||||||
Total assets reclassified as assets held for sale at September 30, 2014, were (in thousands): | ||||||||||||||||
Assets Held for Sale | Adjusted Carrying Value | |||||||||||||||
Research & development equipment classified as held for sale at December 31, 2013 | $ | 2,179 | ||||||||||||||
Hungarian assets sold for the three months ended March 31, 2014 | (779 | ) | ||||||||||||||
U.S. assets sold for the three months ended March 31, 2014 | (6 | ) | ||||||||||||||
Research & development equipment classified as held for sale at March 31, 2014 | $ | 1,394 | ||||||||||||||
Research & development equipment reclassified as held for use | (333 | ) | ||||||||||||||
U.S. assets sold for the three months ended June 30, 2014 | (13 | ) | ||||||||||||||
Loss on exchange of assets | (188 | ) | ||||||||||||||
Change in estimated fair value of research equipment during three months ended June 30, 2014 | (568 | ) | ||||||||||||||
Research & development equipment classified as held for sale at June 30, 2014 | $ | 292 | ||||||||||||||
U.S. assets sold for the three months ended September 30, 2014 | (162 | ) | ||||||||||||||
Change in estimated fair value of research equipment during three months ended September 30, 2014 | $ | (130 | ) | |||||||||||||
Research & development equipment classified as held for sale at September 30, 2014 | — | |||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of future minimum payments under non-cancellable operating leases | ' | |||
Future minimum payments under non-cancellable operating leases at September 30, 2014 are as follows (in thousands): | ||||
Lease payments | ||||
Three months ending December 31, | ||||
2014 | $ | 669 | ||
Years ending December 31, | ||||
2015 | 2,743 | |||
2016 | 2,827 | |||
2017 | 2,677 | |||
2018 | 2,736 | |||
2019 and beyond | 3,054 | |||
Total | $ | 14,706 | ||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of stock-based compensation expense | ' | |||||||||||||||
The following table presents total stock-based compensation expense by functional areas included in the condensed consolidated statements of operations for the three months and nine months ended September 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Research and development (1) | $ | 227 | $ | 97 | $ | 734 | $ | 989 | ||||||||
Selling, general and administrative | 828 | 529 | 2,896 | 2,372 | ||||||||||||
Total | $ | 1,055 | $ | 626 | $ | 3,630 | $ | 3,361 | ||||||||
(1) Stock-based compensation expense associated with cost of biocatalyst product sales is included in research and development. Amounts were immaterial for all periods presented. | ||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | |||||||||||||||
The following table presents total stock-based compensation expense by security types included in the condensed consolidated statements of operations for the three months and nine months ended September 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock options | $ | 247 | $ | 397 | $ | 843 | $ | 1,538 | ||||||||
RSUs and RSAs | 722 | 527 | 2,383 | 1,823 | ||||||||||||
PSUs | 86 | (298 | ) | 404 | — | |||||||||||
Total | $ | 1,055 | $ | 626 | $ | 3,630 | $ | 3,361 | ||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | |||||||||||||||
The ranges of weighted-average assumptions used to estimate the fair value of employee stock options granted were as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected term (in years) | 6 | 6 | 6 | 6 | ||||||||||||
Volatility | 0.676 - 0.679 | 0.64 | 0.639 - 0.679 | 0.640 - 0.652 | ||||||||||||
Risk-free interest rate | 1.90% - 2.13% | 1.81 | % | 1.90% - 2.13% | 1.07% - 1.81% | |||||||||||
Dividend yield | — | % | — | % | — | % | — | % | ||||||||
Weighted-average estimated fair value of stock options granted | $ | 1.21 | $ | 1.17 | $ | 1.16 | $ | 1.34 | ||||||||
Capital_Stock_Tables
Capital Stock (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Equity [Abstract] | ' | |||||||
Schedule of common stock warrants issued and outstanding | ' | |||||||
As of September 30, 2014, the following warrants remain outstanding: | ||||||||
30-Sep-14 | ||||||||
Issue Date | Shares Subject | Exercise Price | Expiration | |||||
to warrants | per Share | |||||||
17-Jul-07 | 2,834 | $ | 12.45 | February 9, 2016 | ||||
28-Sep-07 | 72,727 | $ | 8.25 | September 28, 2017 | ||||
Significant_Customer_and_Geogr1
Significant Customer and Geographic Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedules of Concentration of Risk, by Risk Factor | ' | |||||||||||||||
Our significant customers each contributed 10% or more of our net revenue as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Customer A | 21 | % | 21 | % | 27 | % | 10 | % | ||||||||
Customer B | 27 | % | 34 | % | 26 | % | 47 | % | ||||||||
Customer C | * | — | % | 13 | % | * | ||||||||||
Customer D | 16 | % | * | * | * | |||||||||||
Customer E | 10 | % | * | * | * | |||||||||||
Customer F | * | — | % | * | 10 | % | ||||||||||
* Less than 10% | ||||||||||||||||
Schedule of revenues by geographical area | ' | |||||||||||||||
Net revenue, by geographic region was as follows (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
United States | $ | 4,747 | $ | 2,738 | $ | 12,518 | $ | 7,039 | ||||||||
Asia | ||||||||||||||||
India | 225 | 213 | 636 | 2,721 | ||||||||||||
Singapore | 466 | — | 466 | 6,721 | ||||||||||||
Others | 192 | 209 | 872 | 751 | ||||||||||||
Europe | ||||||||||||||||
Ireland | — | — | 2,744 | 1,219 | ||||||||||||
Others | 1,842 | 757 | 3,864 | 3,921 | ||||||||||||
Other | — | 26 | 16 | 25 | ||||||||||||
Total Revenue | $ | 7,472 | $ | 3,943 | $ | 21,116 | $ | 22,397 | ||||||||
Schedule of long-lived assets by geographical area | ' | |||||||||||||||
Identifiable long-lived assets by geographic region were as follows (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Long-lived assets | ||||||||||||||||
United States | $ | 11,403 | $ | 16,189 | ||||||||||||
Europe (1) | — | 2,123 | ||||||||||||||
Total long-lived assets | $ | 11,403 | $ | 18,312 | ||||||||||||
-1 | Primarily Hungary |
Restructuring_Tables
Restructuring (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Restructuring Costs [Abstract] | ' | |||
Summary of changes in restructuring accrual | ' | |||
The following table summarizes the activity in the restructuring accrual for the three months ended March 31, 2014 (in thousands): | ||||
Q4 2013 Restructuring Plan | ||||
Balance at December 31, 2013 | $ | 277 | ||
Cash payments for the first quarter of 2014 | (238 | ) | ||
Adjustments to previously accrued charges | (39 | ) | ||
Balance at March 31, 2014, June 30, 2014 and September 30, 2014 | $ | — | ||
Basis_of_Presentation_and_Summ2
Basis of Presentation and Summary of Significant Accounting Policies (Textual) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
operating_segment | ||||||
reporting_unit | ||||||
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Maturity Date of Highly Liquid Investments | ' | ' | '3 months | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | $21,522,000 | $26,911,000 | $21,522,000 | $26,911,000 | $22,130,000 | $32,003,000 |
Cash | 6,900,000 | ' | 6,900,000 | ' | ' | ' |
Money market funds | 14,600,000 | ' | 14,600,000 | ' | ' | ' |
Number of Operating Segments | ' | ' | 1 | ' | ' | ' |
Number of Reportable Segments | ' | ' | 1 | ' | ' | ' |
Goodwill Impairment | ' | ' | ' | ' | 0 | ' |
Benefit from income taxes | ($253,000) | ($35,000) | $314,000 | $41,000 | ' | ' |
Intellectual Property [Member] | ' | ' | ' | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of Undiscounted Cash Flows Greater Than Carry Value of Asset Group | ' | ' | ' | ' | 37.00% | ' |
Net_Loss_per_Share_Details
Net Loss per Share (Details) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total shares excluded as anti-dilutive | 6,473 | 6,545 | 6,473 | 6,545 |
Stock options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total shares excluded as anti-dilutive | 3,674 | 4,805 | 3,674 | 4,805 |
Restricted stock units [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total shares excluded as anti-dilutive | 1,950 | 1,665 | 1,950 | 1,665 |
Performance stock units [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total shares excluded as anti-dilutive | 774 | 0 | 774 | 0 |
Warrant [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total shares excluded as anti-dilutive | 75 | 75 | 75 | 75 |
Collaborative_Arrangements_Det
Collaborative Arrangements (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jul. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Feb. 01, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
GlaxoSmithKline [Member] | GlaxoSmithKline [Member] | GlaxoSmithKline [Member] | Merck [Member] | Merck [Member] | Merck [Member] | Merck [Member] | Merck [Member] | Arch [Member] | Arch [Member] | Arch [Member] | Arch [Member] | Arch [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from license fees received | $6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent payment | 19,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Milestones receivable | 11,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of milestone agreement | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum milestone receivable | 5,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum milestone receivable | 38,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License extension acceptance period | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue Recognition, Milestone Method, Termination Notice Period | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Revenue | ' | 5,500,000 | 5,500,000 | ' | 1,600,000 | ' | 1,600,000 | ' | ' | ' | ' | ' | ' |
License and Services Revenue | ' | 500,000 | 500,000 | ' | 500,000 | 500,000 | 1,500,000 | 1,300,000 | ' | ' | ' | ' | ' |
Term of collaborative research and development agreement (years) | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales Revenue, Goods, Net | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 0 | 300,000 | 2,100,000 | ' |
Allowance for Doubtful Accounts Receivable, Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $387,000 |
Investment_Securities_Componen
Investment Securities (Components of Cash Equivalents and Marketable Securities) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Money market funds [Member] | Money market funds [Member] | Corporate bonds (unamortized cost) [Member] | U.S. Treasury obligations (unamortized cost) [Member] | Common shares of CO2 Solution [Member] | Common shares of CO2 Solution [Member] | ||
Cash Equivalents and Marketable Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Adjusted Cost | $15,163 | $19,654 | $14,600 | $16,089 | $1,002 | $2,000 | $563 | $563 |
Gross Unrealized Gains | 468 | 235 | 0 | 0 | 3 | 0 | 468 | 232 |
Gross Unrealized Losses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Estimated Fair Value | $15,631 | $19,889 | $14,600 | $16,089 | $1,005 | $2,000 | $1,031 | $795 |
Average Contractual Maturities (in days) | ' | ' | ' | ' | '140 days | '59 days | ' | ' |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule of Financial Instruments Measured at Fair Value on Recurring Basis) (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | $15,631 | ' | ' | $19,889 |
Assets held for sale | 0 | 292 | 1,394 | 2,179 |
Assets Held-for-sale [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Assets held for sale | ' | ' | ' | 2,179 |
Level 1 [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | 14,600 | ' | ' | 16,089 |
Level 1 [Member] | Assets Held-for-sale [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Assets held for sale | ' | ' | ' | 0 |
Level 2 [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | 1,031 | ' | ' | 3,800 |
Level 2 [Member] | Assets Held-for-sale [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Assets held for sale | ' | ' | ' | 0 |
Level 3 [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | 0 | ' | ' | 0 |
Level 3 [Member] | Assets Held-for-sale [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Assets held for sale | ' | ' | ' | 2,179 |
Money market funds [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | 14,600 | ' | ' | 16,089 |
Money market funds [Member] | Level 1 [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | 14,600 | ' | ' | 16,089 |
Money market funds [Member] | Level 2 [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | 0 | ' | ' | 0 |
Money market funds [Member] | Level 3 [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | 0 | ' | ' | 0 |
Corporate bonds [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | ' | ' | ' | 1,005 |
Corporate bonds [Member] | Level 1 [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | ' | ' | ' | 0 |
Corporate bonds [Member] | Level 2 [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | ' | ' | ' | 1,005 |
Corporate bonds [Member] | Level 3 [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | ' | ' | ' | 0 |
U.S. Treasury obligations [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | ' | ' | ' | 2,000 |
U.S. Treasury obligations [Member] | Level 1 [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | ' | ' | ' | 0 |
U.S. Treasury obligations [Member] | Level 2 [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | ' | ' | ' | 2,000 |
U.S. Treasury obligations [Member] | Level 3 [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | ' | ' | ' | 0 |
Common shares of CO2 Solution [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | 1,031 | ' | ' | 795 |
Common shares of CO2 Solution [Member] | Level 1 [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | 0 | ' | ' | 0 |
Common shares of CO2 Solution [Member] | Level 2 [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | 1,031 | ' | ' | 795 |
Common shares of CO2 Solution [Member] | Level 3 [Member] | ' | ' | ' | ' |
Summary of financial instruments measured at fair value on a recurring basis | ' | ' | ' | ' |
Total financial assets measured at fair value on a recurring basis | $0 | ' | ' | $0 |
Balance_Sheets_Details_Invento
Balance Sheets Details (Inventory) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Inventory Components | ' | ' |
Raw materials | $575 | $763 |
Work-in-process | 17 | 31 |
Finished goods | 1,351 | 693 |
Inventories, net | $1,943 | $1,487 |
Balance_Sheets_Details_Propert
Balance Sheets Details (Property and Equipment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, gross | $37,070 | $37,070 | ' | $37,866 |
Less: accumulated depreciation and amortization | -30,880 | -30,880 | ' | -29,461 |
Property and equipment, net, excluding construction in progress | 6,190 | 6,190 | ' | 8,405 |
Property and equipment | 6,215 | 6,215 | ' | 8,446 |
Less: Impairment of laboratory equipment | -1,841 | -1,841 | 0 | 0 |
Property and equipment, net | 4,374 | 4,374 | ' | 8,446 |
Laboratory equipment [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, gross | 23,069 | 23,069 | ' | 23,949 |
Leasehold Improvements [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, gross | 9,517 | 9,517 | ' | 9,493 |
Computer equipment [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, gross | 3,257 | 3,257 | ' | 3,196 |
Office equipment and furniture [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, gross | 1,227 | 1,227 | ' | 1,228 |
Construction in Progress [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, gross | $25 | $25 | ' | $41 |
Balance_Sheets_Details_Intangi
Balance Sheets Details (Intangible Assets, net) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Net Carrying Amount | $7,029 | ' |
2014 (remaining 3 months) | 843 | ' |
2015 | 3,374 | ' |
2016 | 2,812 | ' |
Intellectual Property [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 20,244 | 20,244 |
Accumulated Amortization | -13,215 | -10,684 |
Net Carrying Amount | $7,029 | $9,560 |
Weighted- Average Amortization Period | '6 years | ' |
Balance_Sheets_Details_Goodwil
Balance Sheets Details (Goodwill) (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Balance Sheets Details [Abstract] | ' | ' | ' |
Changes in the carrying value of goodwill | $0 | $0 | ' |
Goodwill | $3,241,000 | $3,241,000 | $3,241,000 |
Assets_Held_for_Sale_Textual_D
Assets Held for Sale (Textual) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Assets Held for Sale [Abstract] | ' | ' | ' | ' | ' | ' |
Asset impairment charges | ' | ' | ' | $1,571,000 | ' | ' |
Proceeds from sale of subsidiary | 1,500,000 | ' | ' | ' | ' | ' |
Research & development equipment reclassified as held for use | ' | 333,000 | 333,000 | ' | ' | ' |
Loss on exchange of assets | ' | 188,000 | 188,000 | ' | ' | ' |
Change in estimated fair value of research equipment | ' | 130,000 | 568,000 | ' | ' | ' |
Assets held for sale | 1,394,000 | 0 | 292,000 | 2,179,000 | 0 | ' |
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' | ' | ' | ' |
Proceeds from sale of property and equipment | 760,000 | ' | ' | ' | 166,000 | 150,000 |
Gain (Loss) on Disposition of Property Plant Equipment | ' | ' | ' | ' | $115,000 | ($62,000) |
Assets_Held_for_Sale_Details
Assets Held for Sale (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
UNITED STATES [Member] | UNITED STATES [Member] | UNITED STATES [Member] | HUNGARY | ||||
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Assets Held-for-sale, Beginning Balance | $292 | $1,394 | $2,179 | ' | ' | ' | ' |
Assets sold | ' | ' | ' | -162 | -13 | -6 | -779 |
Research & development equipment reclassified as held for use | -333 | -333 | ' | ' | ' | ' | ' |
Loss on exchange of assets | -188 | -188 | ' | ' | ' | ' | ' |
Change in estimated fair value of research equipment during three months ended June 30, 2014 | -130 | -568 | ' | ' | ' | ' | ' |
Assets Held-for-sale, Ending Balance | $0 | $292 | $2,179 | ' | ' | ' | ' |
Sale_of_Hungarian_Subsidiary_D
Sale of Hungarian Subsidiary (Details) (USD $) | 9 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 15, 2014 | Mar. 13, 2014 |
Hungarian Subsidiary [Member] | Hungarian Subsidiary [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | 100.00% |
Proceeds from sale of Hungarian subsidiary, net of selling costs | $1,500 | $0 | $1,500 | ' |
Gain on Sale of Stock in Subsidiary | $760 | $0 | $760 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Revenue sharing arrangement | $1,546,000 | $839,000 | $5,617,000 | $2,300,000 |
Exela PharmaSci, Inc [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Accounts Receivable, Related Parties | 0 | ' | 0 | ' |
Director [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | $0 | $30,000 | $60,000 | $90,000 |
Parent Company [Member] | CMEA Ventures [Member] | Affiliated Entity [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Investment, Ownership Percentage | 7.40% | ' | 7.40% | ' |
Exela PharmaSci, Inc [Member] | CMEA Ventures [Member] | Affiliated Entity [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Investment, Ownership Percentage | 10.00% | ' | 10.00% | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Textual) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
extension | Fifth Amendment [Member] | Sixth Amendment [Member] | Headquarters, Redwood City [Member] | Penobscot Space, Building 2 Space, and Saginaw Space [Member] | Chesapeake Space [Member] | |||
Fifth Amendment [Member] | Fifth Amendment [Member] | |||||||
sqft | ||||||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Lease area space occupancy (square feet) | ' | ' | ' | ' | ' | 107,000 | ' | ' |
Expiration date of lease | ' | ' | ' | ' | ' | ' | 31-Jan-20 | 31-Jan-17 |
Payments for Capital Improvements | ' | ' | ' | $3.60 | ' | ' | ' | ' |
Tenant Reimbursements | ' | ' | ' | 3.1 | ' | ' | ' | ' |
Incentive from Lessor | ' | 1.8 | 1.8 | ' | ' | ' | ' | ' |
Term of sublease | '3 years | ' | ' | ' | ' | ' | ' | ' |
Number of sublease renewal options | 2 | ' | ' | ' | ' | ' | ' | ' |
Term of sublease renewal | '1 year | ' | ' | ' | ' | ' | ' | ' |
Sublease income | ' | 0.1 | 0.2 | ' | ' | ' | ' | ' |
Letters of credit | ' | ' | ' | ' | 0.7 | ' | ' | ' |
Asset retirement obligations | ' | 0.1 | 0.1 | ' | ' | ' | ' | ' |
Estimated obligation payable | ' | $0.60 | $0.60 | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Future Minimum Lease Payments) (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Future minimum payments under non-cancellable operating leases | ' |
Lease payments, 3 months ending December 31, 2014 | $669 |
Lease payments, Year ending December 31, 2015 | 2,743 |
Lease payments, Year ending December 31, 2016 | 2,827 |
Lease payments, Year ending December 31, 2017 | 2,677 |
Lease payments, Year ending December 31, 2018 | 2,736 |
Lease payments, Year ending December 31, 2019 and beyond | 3,054 |
Lease payments, Total | $14,706 |
StockBased_Compensation_Textua
Stock-Based Compensation (Textual) (Details) (USD $) | Sep. 30, 2014 | Mar. 31, 2010 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | 2010 Plan [Member] | 2010 Plan [Member] | Stock options [Member] | Restricted stock units [Member] | Performance stock units [Member] | Performance stock units [Member] | Performance stock units [Member] | Performance stock units [Member] |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Shares reserved for future issuance (shares) | ' | 1,100,000 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,600,000 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | ' | ' | ' | ' | 835,000 | 523,048 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | ' | ' | ' | ' | ' | ' | ' | 358,308 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | ' | ' | $1.70 | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | ' | ' | ' | $3.10 | ' | ' | $0.70 | ' |
StockBased_Compensation_StockB
Stock-Based Compensation (Stock-Based Compensation Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation | $1,055 | $626 | $3,630 | $3,361 |
Stock options [Member] | ' | ' | ' | ' |
Schedule of stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation | 247 | 397 | 843 | 1,538 |
Restricted stock units [Member] | ' | ' | ' | ' |
Schedule of stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation | 722 | 527 | 2,383 | 1,823 |
Performance stock units [Member] | ' | ' | ' | ' |
Schedule of stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation | 86 | -298 | 404 | 0 |
Research and development [Member] | ' | ' | ' | ' |
Schedule of stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation | 227 | 97 | 734 | 989 |
Selling, general and administrative [Member] | ' | ' | ' | ' |
Schedule of stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation | $828 | $529 | $2,896 | $2,372 |
StockBased_Compensation_Valuat
Stock-Based Compensation (Valuation Assumptions) (Details) (Stock options [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected term (in years) | '6 years | '6 years | '6 years | '6 years |
Volatility | 67.60% | 64.00% | 63.90% | 64.00% |
Risk-free interest rate | ' | 1.81% | ' | ' |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted-average estimated fair value of stock options granted | $1.21 | $1.17 | $1.16 | $1.34 |
Minimum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Risk-free interest rate | 1.90% | ' | 1.90% | 1.07% |
Maximum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Volatility | 67.90% | ' | 67.90% | 65.20% |
Risk-free interest rate | 2.13% | ' | 2.13% | 1.81% |
Capital_Stock_Textual_Details
Capital Stock (Textual) (Details) (USD $) | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Equity [Abstract] | ' | ' |
Stock options exercised | 136,796 | ' |
Weighted average exercise price of stock options exercised | $1.34 | ' |
Proceeds from exercises of stock options | $180 | $288 |
Capital_Stock_Warrants_Details
Capital Stock (Warrants) (Details) (USD $) | Sep. 30, 2014 |
Warrants Issued on July 17, 2007 and Expiring on February 9, 2016 [Member] | ' |
Class of Warrant or Right [Line Items] | ' |
Shares Subject to warrants | 2,834 |
Exercise Price per Share | $12.45 |
Warrants Issued on September 28, 2007 and Expiring on September 28, 2017 [Member] | ' |
Class of Warrant or Right [Line Items] | ' |
Shares Subject to warrants | 72,727 |
Exercise Price per Share | $8.25 |
Significant_Customer_and_Geogr2
Significant Customer and Geographic Information (Concentration Risk) (Details) (Customer Concentration Risk [Member]) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | |
Customer A [Member] | Customer A [Member] | Customer A [Member] | Customer A [Member] | Customer B [Member] | Customer B [Member] | Customer B [Member] | Customer B [Member] | Customer B [Member] | Customer C [Member] | Customer C [Member] | Customer C [Member] | Customer D [Member] | Customer D [Member] | Customer E [Member] | Customer F [Member] | |
Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Accounts Receivable [Member] | Sales [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Sales [Member] | Accounts Receivable [Member] | Sales [Member] | Sales [Member] | |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | 21.00% | 21.00% | 27.00% | 10.00% | 27.00% | 34.00% | 26.00% | 47.00% | 32.00% | 13.00% | 1.00% | 51.00% | 16.00% | 10.00% | 10.00% | 10.00% |
Significant_Customer_and_Geogr3
Significant Customer and Geographic Information (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting [Abstract] | ' | ' | ' | ' |
Increase in allowance for doubtful accounts | $53 | $328 | $53 | $328 |
Revenues_by_Geographic_Area_De
(Revenues by Geographic Area) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of revenues by geographical area | ' | ' | ' | ' |
Total Revenue | $7,472 | $3,943 | $21,116 | $22,397 |
UNITED STATES [Member] | ' | ' | ' | ' |
Schedule of revenues by geographical area | ' | ' | ' | ' |
Total Revenue | 4,747 | 2,738 | 12,518 | 7,039 |
India [Member] | ' | ' | ' | ' |
Schedule of revenues by geographical area | ' | ' | ' | ' |
Total Revenue | 225 | 213 | 636 | 2,721 |
Singapore [Member] | ' | ' | ' | ' |
Schedule of revenues by geographical area | ' | ' | ' | ' |
Total Revenue | 466 | 0 | 466 | 6,721 |
Other Asian Countries [Member] | ' | ' | ' | ' |
Schedule of revenues by geographical area | ' | ' | ' | ' |
Total Revenue | 192 | 209 | 872 | 751 |
IRELAND [Member] | ' | ' | ' | ' |
Schedule of revenues by geographical area | ' | ' | ' | ' |
Total Revenue | 0 | 0 | 2,744 | 1,219 |
Other European Countries [Member] | ' | ' | ' | ' |
Schedule of revenues by geographical area | ' | ' | ' | ' |
Total Revenue | 1,842 | 757 | 3,864 | 3,921 |
Other Countries [Member] | ' | ' | ' | ' |
Schedule of revenues by geographical area | ' | ' | ' | ' |
Total Revenue | $0 | $26 | $16 | $25 |
LongLived_Assets_by_Geographic
(Long-Lived Assets by Geographic Area) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of long-lived assets by geographical area | ' | ' |
Total long-lived assets | $11,403 | $18,312 |
UNITED STATES [Member] | ' | ' |
Schedule of long-lived assets by geographical area | ' | ' |
Total long-lived assets | 11,403 | 16,189 |
Europe [Member] | ' | ' |
Schedule of long-lived assets by geographical area | ' | ' |
Total long-lived assets | $0 | $2,123 |
Restructuring_Textual_Details
Restructuring (Textual) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 |
Quarter Four Two Thousand Thirteen Restructuring Plan [Member] | Quarter Four Two Thousand Thirteen Restructuring Plan [Member] | Quarter Four Two Thousand Thirteen Restructuring Plan [Member] | Quarter Four Two Thousand Thirteen Restructuring Plan [Member] | Quarter Four Two Thousand Thirteen Restructuring Plan [Member] | |
employee | Research and Development Expense [Member] | Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Employee terminations (employee) | 15 | ' | ' | ' | ' |
Restructuring Charges | ' | $809 | $573 | $236 | ' |
Restructuring Reserve, Settled with Cash | ' | ' | ' | ' | ($238) |
Restructuring_Changes_in_Restr
Restructuring (Changes in Restructuring Accrual) (Details) (Quarter Four Two Thousand Thirteen Restructuring Plan [Member], USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 |
Quarter Four Two Thousand Thirteen Restructuring Plan [Member] | ' | ' | ' |
Summary of changes in restructuring accrual | ' | ' | ' |
Beginning balance | $277 | $0 | $0 |
Cash payments | -238 | ' | ' |
Adjustments to previously accrued charges | -39 | ' | ' |
Ending balance | $0 | $0 | $0 |