Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 27, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CODEXIS INC | ||
Entity Central Index Key | 1200375 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 39,702,102 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $35.60 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $26,487 | $22,130 |
Short-term investments | 0 | 3,005 |
Accounts receivable, net of allowances of $428 at December 31, 2014 and $460 at December 31, 2013 | 3,870 | 5,413 |
Inventories | 1,395 | 1,487 |
Prepaid expenses and other assets, current | 1,255 | 1,567 |
Assets held for sale | 0 | 2,179 |
Total current assets | 33,007 | 35,781 |
Restricted cash | 711 | 711 |
Marketable securities | 688 | 795 |
Property and equipment, net | 3,995 | 8,446 |
Intangible assets, net | 6,186 | 9,560 |
Goodwill | 3,241 | 3,241 |
Other assets, non-current | 294 | 306 |
Total assets | 48,122 | 58,840 |
Current liabilities: | ||
Accounts payable | 4,673 | 3,961 |
Accrued compensation | 2,946 | 3,625 |
Other accrued liabilities | 2,619 | 1,612 |
Deferred revenues | 3,497 | 2,001 |
Total current liabilities | 13,735 | 11,199 |
Deferred revenues, net of current portion | 3,813 | 1,114 |
Other liabilities | 4,263 | 5,044 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value per share; 5,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.0001 par value per share; 100,000 shares authorized; outstanding: 39,563 at December 31, 2014 and 38,351 at December 31, 2013 | 4 | 4 |
Additional paid-in capital | 302,379 | 298,370 |
Accumulated other comprehensive loss | -142 | -32 |
Accumulated deficit | -275,930 | -256,859 |
Total stockholders’ equity | 26,311 | 41,483 |
Total liabilities and stockholders’ equity | $48,122 | $58,840 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $428 | $460 |
Preferred stock, par value | $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 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 39,563,000 | 38,351,000 |
Common stock, shares outstanding | 39,563,000 | 38,351,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Biocatalyst product sales | $13,064 | $20,423 | $35,924 |
Biocatalyst research and development | 14,945 | 6,868 | 49,977 |
Revenue sharing arrangement | 7,298 | 4,631 | 150 |
Government awards | 0 | 0 | 2,247 |
Total revenues | 35,307 | 31,922 | 88,298 |
Costs and operating expenses: | |||
Cost of biocatalyst product revenues | 9,726 | 14,554 | 30,647 |
Research and development | 22,755 | 31,606 | 56,785 |
Selling, general and administrative | 21,937 | 26,908 | 31,379 |
Total costs and operating expenses | 54,418 | 73,068 | 118,811 |
Loss from operations | -19,111 | -41,146 | -30,513 |
Interest income | 18 | 60 | 252 |
Other expense | -234 | -304 | -326 |
Loss before income taxes | -19,327 | -41,390 | -30,587 |
Provision for (benefit from) income taxes | -256 | -87 | 270 |
Net loss | ($19,071) | ($41,303) | ($30,857) |
Net loss per share of common stock, basic and diluted (dollars per share) | ($0.50) | ($1.08) | ($0.84) |
Weighted average common shares used in computing net loss per share of common stock, basic and diluted (shares) | 38,209 | 38,231 | 36,768 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net loss | ($19,071) | ($41,303) | ($30,857) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 0 | 0 | 165 |
Reclassification of other-than-temporary loss in marketable securities included in net loss | 0 | 0 | 753 |
Unrealized gain (loss) on marketable securities, net of tax expense of nil in 2014, $68 in 2013 and $70 in 2012 | -110 | 104 | -647 |
Other comprehensive income (loss) | -110 | 104 | 271 |
Total comprehensive loss | ($19,181) | ($41,199) | ($30,586) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Loss (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Tax expense on unrealized gain (loss) of marketable securities | $0 | $68 | $70 |
Consolidated_Statements_Stockh
Consolidated Statements Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
In Thousands, unless otherwise specified | |||||
Beginning balance at Dec. 31, 2011 | $102,690 | $4 | $287,792 | ($407) | ($184,699) |
Beginning balance (shares) at Dec. 31, 2011 | 35,996 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of common warrants (shares) | 3 | ||||
Exercise of stock options | 1,257 | 1,257 | |||
Exercise of stock options (shares) | 708 | ||||
Cancellation of shares | -65 | -65 | |||
Cancellation of shares (shares) | -17 | ||||
Release of stock awards (shares) | 982 | ||||
Employee stock-based compensation | 5,040 | 5,040 | |||
Non-employee stock-based compensation | 104 | 104 | |||
Non-employee stock-based compensation (shares) | 20 | ||||
Total comprehensive loss | -30,586 | 271 | -30,857 | ||
Ending balance at Dec. 31, 2012 | 78,440 | 4 | 294,128 | -136 | -215,556 |
Ending balance (shares) at Dec. 31, 2012 | 37,692 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options | 318 | 318 | |||
Exercise of stock options (shares) | 326 | ||||
Cancellation of shares | -465 | -465 | |||
Cancellation of shares (shares) | -75 | ||||
Release of stock awards (shares) | 408 | ||||
Employee stock-based compensation | 4,366 | 4,366 | |||
Non-employee stock-based compensation | 23 | 23 | |||
Total comprehensive loss | -41,199 | 104 | -41,303 | ||
Ending balance at Dec. 31, 2013 | 41,483 | 4 | 298,370 | -32 | -256,859 |
Ending balance (shares) at Dec. 31, 2013 | 38,351 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options | 195 | 195 | |||
Exercise of stock options (shares) | 146 | ||||
Cancellation of shares | -806 | -806 | |||
Cancellation of shares (shares) | -456 | ||||
Release of stock awards (shares) | 1,522 | ||||
Employee stock-based compensation | 4,608 | 4,608 | |||
Non-employee stock-based compensation | 12 | 12 | |||
Total comprehensive loss | -19,181 | -110 | -19,071 | ||
Ending balance at Dec. 31, 2014 | $26,311 | $4 | $302,379 | ($142) | ($275,930) |
Ending balance (shares) at Dec. 31, 2014 | 39,563 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating activities: | |||
Net loss | ($19,071,000) | ($41,303,000) | ($30,857,000) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Amortization of intangible assets | 3,374,000 | 3,374,000 | 3,509,000 |
Depreciation and amortization of property and equipment | 3,311,000 | 6,944,000 | 8,908,000 |
Accretion of asset retirement obligation | 0 | 0 | 30,000 |
Stock-based compensation | 4,620,000 | 4,389,000 | 5,076,000 |
Accretion of premium on marketable securities | 2,000 | 42,000 | 697,000 |
Loss on disposal of property and equipment | 24,000 | 0 | 1,551,000 |
Impairment of property and equipment | 1,841,000 | 1,582,000 | 0 |
Gain on sale of Hungarian subsidiary | -760,000 | 0 | 0 |
Loss on disposal and exchange of Assets Held for Sale, net | 87,000 | 0 | 0 |
Change in fair value of assets held for sale | 698,000 | 0 | 0 |
Other than temporary change in marketable securities | 0 | 0 | 753,000 |
Gain from extinguishment of asset retirement obligation | 0 | 0 | -212,000 |
Common stock issuances for royalty payment to a licensor | 0 | 0 | 68,000 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,587,000 | 1,629,000 | 11,372,000 |
Inventories | 92,000 | -185,000 | 3,186,000 |
Prepaid expenses and other current assets | -339,000 | 850,000 | -3,051,000 |
Other assets | -78,000 | 337,000 | -1,330,000 |
Accounts payable | 713,000 | 308,000 | -6,710,000 |
Accrued compensation | -530,000 | 130,000 | -3,290,000 |
Other accrued liabilities | 555,000 | -2,724,000 | 197,000 |
Deferred revenues | 4,195,000 | 1,629,000 | -1,789,000 |
Net cash provided by (used in) operating activities | 321,000 | -22,998,000 | -11,892,000 |
Investing activities: | |||
Purchase of property and equipment | -302,000 | -1,175,000 | -2,933,000 |
Proceeds from disposal of property and equipment | 167,000 | 238,000 | 0 |
Proceeds from sale of Hungarian subsidiary | 1,500,000 | 0 | 0 |
Proceeds from sale of assets held for sale | 282,000 | 0 | 0 |
Purchase of marketable securities | 0 | 0 | -20,638,000 |
Proceeds from sale of marketable securities | 3,000,000 | 0 | 10,397,000 |
Proceeds from maturities of marketable securities | 0 | 13,409,000 | 29,885,000 |
Decrease in restricted cash | 0 | 800,000 | 0 |
Net cash provided by investing activities | 4,647,000 | 13,272,000 | 16,711,000 |
Financing activities: | |||
Proceeds from exercises of stock options | 195,000 | 318,000 | 1,257,000 |
Proceeds from issuance of common stock, net of issuance costs | 9,000 | 0 | 0 |
Taxes paid related to net share settlement of equity awards | -815,000 | -465,000 | 0 |
Net cash provided by (used in) financing activities | -611,000 | -147,000 | 1,257,000 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 165,000 |
Net increase (decrease) in cash and cash equivalents | 4,357,000 | -9,873,000 | 6,241,000 |
Cash and cash equivalents at the beginning of the year | 22,130,000 | 32,003,000 | 25,762,000 |
Cash and cash equivalents at the end of the year | 26,487,000 | 22,130,000 | 32,003,000 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes | 15,000 | 103,000 | 126,000 |
Long term deposit in other assets transferred to property and equipment | 0 | 1,857,000 | 0 |
Equipment in property and equipment transferred to (from) assets held for sale | ($333,000) | $2,179,000 | $0 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 31, 2014 | |
Description of Business [Abstract] | |
Description of Business | Description of Business |
In these notes to the consolidated financial statements, the “Company,” "we," "us,'" and "our" refers to Codexis, Inc. and its subsidiaries on a consolidated basis. | |
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 CodeEvolver® protein engineering technology platform, which introduces genetic mutations into microorganisms in order to give rise to changes in enzymes that they produce, 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. Once potentially beneficial mutations are identified through this proprietary process, combinations of these mutations can then be tested until variant enzymes have been created that exhibit marketable performance characteristics superior to competitive products. This process allows for continuous, efficient improvements to the performance of enzymes. In the past, we implemented our CodeEvolver® protein engineering technology platform through paid collaborations with our customers. In July 2014, we entered into our first license agreement pursuant to which we granted a license to a global pharmaceutical company to use our CodeEvolver® protein engineering technology platform for their internal development purposes, and we are pursuing additional license opportunities with other customers. | |
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 also 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, flavors, fragrances, and agricultural chemicals. | |
We have also used our technology to develop an early stage, novel enzyme therapeutic product candidate for the potential treatment of phenylketonuria ("PKU") in humans. PKU is an inherited metabolic disorder in which the enzyme that converts the essential amino acid phenylalanine into tyrosine is deficient. |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 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 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”) and include the accounts 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 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 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. | |||
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 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 consolidated statements of operations. | |||
Revenue Recognition | |||
We recognize revenue from the sale of our biocatalyst products, biocatalyst research and development agreements and revenue 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. 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. | |||
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. | |||
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. | |||
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 16, "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. | |||
Sales Allowances | |||
Sales allowances 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. | |||
Government Awards | |||
Through 2012, we received payments from government entities for work performed in the form of government awards. Government awards are agreements that generally provide us with cost reimbursement for certain types of expenditures in return for research and development activities over a contractually defined period. Revenues from government awards are recognized in the period during which the related costs are incurred, provided that the conditions under which the government awards were provided have been met and we have only perfunctory obligations outstanding. | |||
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. | |||
Cost of Research and Development Services | |||
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. | |||
Advertising | |||
Advertising costs are expensed as incurred and included in selling, general and administrative expenses in the consolidated statements of operations. Advertising costs were $0.3 million in 2014, $0.5 million in 2013 and $0.4 million in 2012. | |||
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. | |||
Restructuring Costs | |||
We apply applicable accounting guidance on accounting for costs associated with restructuring, including exit or disposal activities, which requires that a liability for costs associated with an exit or disposal activity be recognized and measured initially at fair value when the liability is incurred. Our restructuring activities have primarily been related to severance, benefits and related personnel costs and facility closing costs. We determined the facility accrual based on expected cash payments, under the applicable facility lease, reduced by any estimated sublease rental income for such facility (see Note 18). | |||
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 $26.5 million and was comprised of cash of $11.9 million and money market funds of $14.6 million at December 31, 2014. Cash and cash equivalents totaled $22.1 million and was comprised of cash of $6.0 million and money market funds of $16.1 million at December 31, 2013. | |||
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 6, “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, short-term investments, 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. | |||
Accounts Receivable | |||
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. In addition, accounts receivable includes amounts owed to us under our collaborative research and development agreements. We recognize accounts receivable at invoiced amounts and we maintain a valuation allowance for doubtful accounts. | |||
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. | |||
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. | |||
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. | |||
Inventories | |||
Inventories consist of raw materials and work-in-process and finished goods related to the production of our biocatalysis products. Raw materials include active pharmaceutical ingredients and other raw materials. Work-in-process and finished goods include third party manufacturing costs and labor and indirect costs we incur in the production process. Included in inventories are materials that may be used as clinical products, which are charged to research and development expense when consumed. | |||
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. | |||
Concentrations of Supply Risk | |||
We rely on a limited number of suppliers for our products. We believe that other vendors would be able to provide similar products; however, the qualification of such vendors may require substantial start-up time. In order to mitigate any adverse impacts from a disruption of supply, we attempt to maintain an adequate supply of critical single-sourced materials. For certain materials, our vendors maintain a supply for us. We outsource the large scale manufacturing of our products to contract manufacturers with facilities in Austria and Italy. | |||
Property and Equipment | |||
Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization and depreciated using the straight-line method over their estimated useful lives as follows: | |||
Asset classification | Estimated useful life | ||
Laboratory equipment | 5 years | ||
Computer equipment and software | 3 to 5 years | ||
Office equipment and furniture | 5 years | ||
Leasehold improvements | Lesser of useful life or lease term | ||
Property and equipment classified as construction in process includes equipment that has been received but not yet placed in service. Normal repairs and maintenance costs are expensed as incurred. | |||
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. | |||
Assets Held for Sale | |||
We reclassify long-lived assets to Assets Held for Sale when all required criteria for such reclassification are met. The assets are recorded at the lower of the carrying value or fair value less costs to sell. Assets held for sale must meet the following conditions: (1) management, having authority to approve the action, commits to a plan to sell the asset, (2) the asset is available for immediate sale in its present condition, (3) an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated, (4) the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year, (5) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. | |||
In determining the fair value of the assets less cost to sell, we consider factors including current sales prices for comparable assets, recent market analysis studies, appraisals and any recent legitimate offers. If the estimated fair value less cost to sell of an asset is less than its current carrying value, the asset is written down to its estimated fair value less cost to sell. The assumptions about equipment sales prices require significant judgment related to equipment condition and certain selling costs. Due to uncertainties in the estimation process, it is reasonably possible that actual results could differ from the estimates used in our historical analyses and may result in additional impairments if market conditions deteriorate. | |||
Impairment of Long-Lived Assets | |||
Our long-lived assets include property and equipment and intangible 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' consolidated balance sheet as of December 31, 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. | |||
2012 Analysis | |||
As of December 31, 2012 we determined that our continued operating losses and the termination of the Shell Research Agreement were indications of impairment. | |||
As a result, in 2012 we performed the recoverability test and calculated estimated cash flows through the remaining period of the estimated useful life of the Core IP. The undiscounted cash flows included revenue and expense from Codexis' biocatalyst business, both from the pharmaceuticals market and from enzyme markets adjacent to its business in the pharmaceuticals market, including fine chemicals markets. | |||
Codexis typically receives revenues from the pharmaceuticals market and expects to receive revenues from other enzyme markets adjacent to its pharmaceutical business in the form of one or more of the following: up-front payments, milestone payments, payments based upon the number of FTEs engaged in related research and development activities and licensing fees and royalties. Our best estimate of future cash flows did not include any CodeXol® and CodeXyme® revenues associated with collaboration research and development agreements, but did include an estimate of cash flows from potential strategic transactions with respect to its CodeXyme® and CodeXol® programs, as described below. | |||
In our 2012 impairment analysis, approximately 69% and 31% of Codexis' revenues included in the estimated undiscounted cash flows (excluding cash flows from potential strategic transactions with respect to Codexis' CodeXyme® and CodeXol® programs) over the remaining useful life of the Core IP were derived from the pharmaceuticals market and from adjacent enzyme market opportunities, respectively. | |||
Codexis' pharmaceuticals revenues were estimated based on existing commercial relationships, signed agreements or contracts, and conservative estimates for the capture of additional market share that we determined to be reasonably achievable. For existing and in process customer revenues we assumed a modest rate of growth based on our historical business model for Codexis' core pharmaceutical business, including research and development services revenue from partners and customers, which we determined to be reasonably achievable. We have historically worked closely with our pharmaceutical partners to evolve, engineer and develop enzymes that meet their specific needs. Our business model is based on having our partners and customers pay in whole or in part for the research and development required to engineer the enzymes required. | |||
In determining which adjacent enzyme markets to exploit, we assessed various segments of the large and growing enzyme markets and selected those adjacent markets where we already had entry points through our existing pharmaceutical business relationships, such as fine chemicals markets. Estimated revenues associated with these adjacent markets were based on market penetration and adoption rates that we determined to be reasonably achievable. | |||
The expected residual value was determined by applying a Gordon Growth Model to normalized net cash flows using a discount rate of 18.0% (“Estimated Weighted-Average Cost of Capital”) and a long term growth rate of 2%. The 18.0% discount rate reflects the nature and the risk of the underlying forecast, and includes such financial components as the risk free rate, systemic stock price risk based on an evaluation with peer companies (“beta”), equity risk premium, size premium, and company specific risk. The long term growth rate of 2% reflects projected inflation and general economic conditions. Based on the results obtained, we determined there was no impairment of Codexis' intangible assets as of December 31, 2012. | |||
We also included in the undiscounted cash flows an estimate of cash flows from potential strategic transactions with respect to the Codexis' existing CodeXyme® cellulase enzymes and CodeXol® detergent alcohol programs. The amount of estimated cash flows related to CodeXol® and CodeXyme® represented 38% of the total undiscounted cash flows associated with the Asset Group. These amounts were not based on any existing contracts or agreements. | |||
The results of our fourth quarter 2012 impairment analysis indicated that the undiscounted cash flows for the Asset Group were greater than the carrying value of the Asset Group by approximately 14%. Based on the results obtained, we determined there was no impairment of the Company's intangible assets as of December 31, 2012. | |||
2013 Analysis | |||
In the fourth quarter of 2013, we determined that Codexis' continued annual operating losses and a decline in market price of the 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 our most recent outlook were indicators of impairment. | |||
As a result, in the fourth quarter of 2013 we performed the recoverability test and calculated estimated cash flows through the remaining period of the estimated useful life of the Core IP. The undiscounted cash flows included revenue and expense from Codexis' biocatalyst business, both from the pharmaceuticals market and from enzyme markets adjacent to its business in the pharmaceuticals market, including fine chemicals markets. | |||
The methodology employed in our 2013 analysis was consistent with that used in our impairment analysis performed as of December 31, 2012, although certain assumptions changed in 2013 based on new developments, including reduced anticipated future cash flows related to potential strategic transactions with respect to the Codexis' CodeXyme® and CodeXol® programs, and reduced future revenue growth to reflect our most recent outlook and an increase in the our fine chemicals activities. | |||
In our 2013 impairment analysis, approximately 90% and 10% of Codexis' revenues included in its estimated undiscounted cash flows (excluding cash flows from potential strategic transactions with respect to its CodeXyme® and CodeXol® programs) through the estimated useful life of the Core IP were derived from the pharmaceuticals market and from adjacent enzyme market opportunities, respectively. | |||
The expected residual value was determined by applying a Gordon Growth Model to normalized net cash flows using a discount rate of 19.5% (“Estimated Weighted-Average Cost of Capital”) and a long term growth rate of 2%. The 19.5% discount rate reflects the nature and the risk of the underlying forecast, and includes such financial components as the risk free rate, systemic stock price risk based on an evaluation with peer companies (“beta”), equity risk premium, size premium, and Codexis' specific risk. The long term growth rate of 2% reflects projected inflation and general economic conditions. | |||
The Company also included in the undiscounted cash flows an estimate of cash flows from potential strategic transactions with respect to the Company’s CodeXyme® cellulase enzymes and CodeXol® detergent alcohol programs. The amount of estimated cash flows related to CodeXol® and CodeXyme® represented 7% of the total undiscounted cash flows associated with the Asset Group. These amounts are not based on any existing contracts or agreements. | |||
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. | |||
Although our analysis indicated that the estimated future undiscounted cash flows exceeded the carrying value of the Asset Group, we performed a supplemental analysis to determine the fair value of the Core IP. In determining the fair value, we prepared cash flow forecasts over the remaining economic life of the Core IP consistent with the time period for final patent expiration from the Maxygen patent portfolio. We utilized the multi-period Excess Earnings model and obtained key financial inputs from a review of market participants, Codexis specific factors and generally accepted valuation methods. We used a discount rate of 19.5% which reflects the nature and the risk of the underlying forecast and includes other financial components. Based on these estimates, judgments and factors, we determined that the fair value of the Core IP exceeded its carrying value by 44% as of December 31, 2013. | |||
2014 Analysis | |||
The Company performed an analysis to estimate cash flows from equipment used in potential strategic transactions with respect to the Company’s CodeXyme® cellulase enzymes and CodeXol® detergent alcohol programs. Based on this analysis the Company determined there were no future cash flows and recognized a $1.8 million impairment charge, which is reflected in research and development expense. | |||
In the fourth quarter of 2014, we determined that there were no events or changes in circumstances which indicated that the carrying amount of our Asset Group might not be recoverable. We concluded that the fair value of the reporting unit exceeded the carrying value and no impairment existed. No impairment charges for intangible assets were recorded during the year ended December 31, 2014. | |||
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 amounts have been recorded as the excess purchase price over tangible assets, liabilities and intangible assets acquired based on their estimated fair value, by applying the purchase method. Goodwill is not subject to amortization. Goodwill was tested for impairment in the fourth quarter of 2014. 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, 2014 and 2013. | |||
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. | |||
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; however, we do not expect it to have any impact. |
Net_Loss_per_Share
Net Loss per Share | 12 Months Ended | ||||||||
Dec. 31, 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 related to potentially dilutive securities, 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): | |||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Shares issuable under Equity Incentive Plan | 6,193 | 6,722 | 7,091 | ||||||
Shares issuable upon the conversion of warrants | 75 | 75 | 260 | ||||||
Total anti-dilutive securities | 6,268 | 6,797 | 7,351 | ||||||
Collaborative_Research_and_Dev
Collaborative Research and Development Agreements | 12 Months Ended |
Dec. 31, 2014 | |
Collaborative Research and Development Agreements [Abstract] | |
Collaborative Research and Development Agreements | Collaborative Research and Development 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 technology platform. | |
We received a $6.0 million up-front licensing fee upon signing the License Agreement and subsequently a $5.0 million non-creditable, non-refundable milestone payment upon achievement of a milestone. We are eligible to receive additional contingent payments up to $14.0 million, of which $6.5 million are considered milestone payments, over the next 30 months subject to satisfactory completion of the remaining technology transfer milestones and $7.5 million upon completion of the technology transfer period. 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® protein engineering technology platform to GSK, GSK can exercise an option, upon payment of certain additional fees, that would extend GSK’s license to include certain improvements to the CodeEvolver® protein engineering technology platform 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 our CodeEvolver® protein engineering technology platform. | |
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 did not have stand-alone value, and we determined that the license and the platform technology transfer (together the "License") and our participation in joint steering committee activities represent a single 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. Amounts to be received under the supply arrangement described above will be recognized as revenue to the extent that GSK purchases enzymes from us. | |
The up-front License fee of $6.0 million is being recognized over the technology transfer period of three years. We recognized license fees of $1.0 million in 2014, as biocatalyst research and development revenue, and we had a deferred revenue balance of $5.0 million from GSK related to the up-front License fee at December 31, 2014. | |
Merck Sitagliptin Catalyst Supply Agreement | |
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. We recognized license fees of $2.0 million in 2014 and $1.8 million in 2013, as biocatalyst research and development revenue, and we had a deferred revenue balance of $1.1 million at December 31, 2014, and $0.7 million at December 31 2013, from Merck related to the license fee. In addition, pursuant to the Sitagliptin Catalyst Supply Agreement, Merck may purchase supply from us for a fee based on contractually stated prices and we recognized $2.5 million in 2014 and $1.0 million in 2013 in product revenue under this agreement. | |
Arch Manufacturing Collaboration | |
From 2006 through November 2012, Arch Pharmalabs Limited ("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 $0.5 million in 2014 and $2.1 million in 2013, as biocatalyst product sales revenue. We recorded an allowance for bad debt of $0 in 2014 and $0.4 million in 2013. | |
Shell and Raízen | |
In November 2006, we entered into a collaborative research agreement and a license agreement with Shell to develop biocatalysts and associated processes that use such biocatalysts. In November 2007, we entered into a new and expanded five-year collaborative research agreement (“Shell Research Agreement”) and a license agreement (the “Shell License Agreement”) with Shell. | |
In September 2012, we entered into an agreement with Shell (the “New Shell Agreement”) which among other things, terminated the Shell Research Agreement effective as of August 31, 2012, except for certain provisions of the Shell Research Agreement which will survive such termination, including provisions regarding intellectual property rights, patent prosecution and maintenance, confidentiality and indemnification. The New Shell Agreement required Shell to pay us approximately $7.5 million as full, complete and final satisfaction of amounts that Shell may have owed us under the Shell Research Agreement with respect to (i) FTEs assigned to the Shell Research Agreement and (ii) milestones achieved or achievable by us under the Shell Research Agreement. The $7.5 million was recognized as revenue during the third quarter of 2012 when all of our obligations were fulfilled under the New Shell Agreement and was collected during the fourth quarter of 2012. | |
Beginning September 1, 2012, we had no further obligations to Shell under the Shell Research Agreement to provide any FTEs to perform work under or after the collaboration and Shell has no future obligations to us under the Shell Research Agreement to provide funding for FTEs to perform work under or after the collaboration. We remain eligible to receive a one-time $3.0 million payment from Shell under the Shell Research Agreement upon the first sale by Shell of a product in the field of converting cellulosic biomass into fermentable sugars in Brazil, or in the fields of converting fermentable sugars derived from biomass into liquid fuel or liquid fuel additives or into lubricants. | |
Under the New Shell Agreement, Shell granted us royalty-bearing, non-exclusive rights and licenses to develop, manufacture, use and sell enzymes and microbes in the field of converting cellulosic biomass into fermentable sugars on a worldwide basis, except for Brazil, where such sugars are converted into liquid fuels, fuel additives or lubricants (the “Field of Use”). Raízen holds the exclusive rights to use our enzymes and microbes for converting cellulosic biomass into fermentable sugars in Brazil, where such sugars are converted into ethanol. Following the date on which our biocatalysts are used to produce sugars used in the Field of Use sufficient to produce 30.0 million gallons of liquid fuel, we will be required to pay Shell a royalty on our sales to third parties of our enzymes and microbes in the Field of Use, equal to a low single-digit percentage of net sales and we will also be required to pay Shell a royalty on our use of biocatalysts in the Field of Use, equal to a low single-digit percentage of its applicable net sales of such enzymes or microbes. Shell is also entitled to discounted pricing under the New Shell Agreement for biocatalysts purchased from us by Shell for use in the Field of Use, but we are under no obligation to sell such biocatalysts to Shell. | |
Under the New Shell Agreement, we also granted to Shell a non-exclusive, royalty-free license to manufacture, use and import, solely for the use of Shell and its affiliates, (i) enzymes developed by us during the ten year period following August 31, 2012 outside of the Shell Research Agreement for use in the Field of Use and (ii) improvements to any microbe developed by us during the ten year period following August 31, 2012 outside of the Shell Research Agreement that is derivative of an identified microbe for use in the Field of Use. Shell remains subject to existing royalty obligations to us for future sales of products covered by the intellectual property and technology that remain exclusively licensed to Shell under the License Agreement. | |
Additionally, with respect to each invention relating to technology or materials regarding novel liquid fuel compounds, liquid fuel additives or lubricants, Shell will continue to be required to work exclusively with us, for a period of three years after the first nonprovisional patent application filing for such invention, to identify biological methods of synthesis of the compound(s) that are claimed, or whose use as a liquid fuel compound, additive or lubricant, is claimed, in such patent filing. | |
The New Shell Agreement has a term that commences on August 31, 2012 and continues until the later of August 31, 2032 or the date of the last to expire patent rights included in our collaboration that claim a biocatalyst or a microbe for use in the Field of Use. | |
In June 2011, Shell completed the transfer of all of its equity interests in us to Raízen, Shell’s joint venture with Cosan S.A. Indústria e Comércio, (“Cosan”) in Brazil. As a result, Shell is no longer considered a related party. Notwithstanding the above, Shell did not transfer the Shell Research Agreement to Raízen. Additionally, in September 2011, we entered into a joint development agreement directly with Raízen. Work under this joint development agreement was completed in 2012 and we do not expect this project to continue. |
Joint_Development_Agreement_wi
Joint Development Agreement with CO2 Solutions | 12 Months Ended |
Dec. 31, 2014 | |
Joint Development Agreement [Abstract] | |
Joint Development Agreement with CO2 Solutions | Joint Development Agreement with CO2 Solutions |
On December 15, 2009, we entered into an exclusive joint development agreement with CO2 Solutions, a company based in Quebec City, Quebec, Canada, whose shares are publicly traded in Canada on TSX Venture Exchange. The joint development agreement expired in January 2011. In January 2011, we extended our joint development agreement with CO2 Solutions on essentially the same terms as the original agreement. This exclusive arrangement expired in February 2013 and has not been extended. | |
Under the agreement, we obtained a research license to CO2 Solutions’ intellectual property and agreed to conduct research and development activities jointly with CO2 Solutions with the goal of advancing the development of carbon management technology. We also purchased 10,000,000 common shares (approximately 16.6% of the total common shares outstanding at the time of investment) of CO2 Solutions in a private placement subject to a four-month statutory resale restriction. This restriction expired on April 15, 2010. We concluded that we did not have the ability to exercise significant influence over CO2 Solutions’ operating and financial policies through December 31, 2014. | |
Our investment in CO2 Solutions is classified as available for sale and is recorded at its fair value. During the year ended December 31, 2012, we recorded an impairment charge of $0.8 million, as the decline in the fair value of the investment was deemed to be other-than-temporary. No impairment charges were recorded during the years ended December 31, 2014 and 2013. |
Investment_Securities
Investment Securities | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||
Investment Securities | Investment Securities | |||||||||||||||||
At December 31, 2014, cash equivalents and marketable securities consisted of the following (in thousands): | ||||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Adjusted Cost | Gross | Gross | Estimated | Average | ||||||||||||||
Unrealized | Unrealized | Fair Value | Contractual | |||||||||||||||
Gains | Losses | Maturities | ||||||||||||||||
(in days) | ||||||||||||||||||
Money market funds | $ | 14,602 | $ | — | $ | — | $ | 14,602 | n/a | |||||||||
Common shares of CO2 Solutions | 563 | 125 | — | 688 | n/a | |||||||||||||
Total | $ | 15,165 | $ | 125 | $ | — | $ | 15,290 | ||||||||||
The total cash and cash equivalents balance of $26.5 million as of December 31, 2014 was comprised of money market funds of $14.6 million and cash of $11.9 million held with major financial institutions worldwide. At December 31, 2014, the Company had no marketable securities in an unrealized loss position. | ||||||||||||||||||
At December 31, 2013, cash equivalents, short-term investments and marketable securities 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 | $ | 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 | 563 | 232 | — | 795 | n/a | |||||||||||||
Total | $ | 19,654 | $ | 235 | $ | — | $ | 19,889 | ||||||||||
The total cash and cash equivalents balance of $22.1 million as of December 31, 2013 was comprised of money market funds of $16.1 million and cash of $6.0 million held with major financial institutions worldwide. At December 31, 2013, the Company had no marketable securities in an unrealized loss position. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
Assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows: | ||||||||||||||||
Level 1 — Inputs that are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. | ||||||||||||||||
Level 2 — Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. | ||||||||||||||||
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. | ||||||||||||||||
For Level 2 financial investments, our investment adviser provides us with monthly account statements documenting the value of each investment 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. | ||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
The following table presents the financial instruments that were measured at fair value on a recurring basis at December 31, 2014 by level within the fair value hierarchy (in thousands): | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
Financial Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Money market funds | $ | 14,602 | $ | — | $ | — | $ | 14,602 | ||||||||
Common shares of CO2 Solutions | 688 | — | 688 | |||||||||||||
Total | $ | 14,602 | $ | 688 | $ | — | $ | 15,290 | ||||||||
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 | ||||||||||||||||
Financial Assets | 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 | ||||||||
We estimated the fair value of our investment in 10,000,000 common shares of CO2 Solutions using the market value of common shares as determined by trading on the TSX Venture Exchange. During 2012, we evaluated our investment in the common shares of CO2 Solutions and determined the impairment was other-than-temporary considering the length of time and extent to which the fair value has been less than its cost, the financial condition and near term prospects of CO2 Solutions, and our ability and intent to hold the securities until fair value recovers. As a result of the above analysis, we recorded an impairment of $0.8 million in 2012, as an expense in our consolidated statement of operations as selling, general and administrative expense. | ||||||||||||||||
Fair Value of Non-Financial Assets | ||||||||||||||||
We had no non-financial assets that required fair value measurement at December 31, 2014. See Note 9, "Assets Held for Sale" for a schedule of Level 3 activity in assets held for sale for the year ending December 31, 2014. | ||||||||||||||||
As of December 31, 2013, we had assets held for sale of $2,179,000 related to lab equipment located in the United States and Hungary. The fair value of these assets was determined based on Level 3 inputs, primarily sales data for similar properties. Losses recognized in fiscal year 2013 due to fair value remeasurements using Level 3 inputs were $1,571,000. 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 | ||||||||||||||||
Non-Financial Assets | Level 1 | Level 2 | Level 3 | |||||||||||||
Inputs | Inputs | Inputs | ||||||||||||||
Assets held for sale | $ | — | $ | — | $ | 2,179 | ||||||||||
Balance_Sheets
Balance Sheets | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Balance Sheets Details [Abstract] | ||||||||||||||||||||||||||
Balance Sheets | Balance Sheets | |||||||||||||||||||||||||
Accounts receivable | ||||||||||||||||||||||||||
The following is a summary of activity in our allowance for doubtful accounts for the periods presented (in thousands): | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Allowance - beginning of period | $ | (460 | ) | $ | (150 | ) | $ | (17 | ) | |||||||||||||||||
Provisions for doubtful accounts | (11 | ) | (386 | ) | (133 | ) | ||||||||||||||||||||
Recoveries from bad debts | — | 76 | — | |||||||||||||||||||||||
Write-off and other | 43 | — | — | |||||||||||||||||||||||
Allowance - end of period | $ | (428 | ) | $ | (460 | ) | $ | (150 | ) | |||||||||||||||||
Inventories | ||||||||||||||||||||||||||
Inventories consisted of the following (in thousands): | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Raw materials | $ | 84 | $ | 763 | ||||||||||||||||||||||
Work in process | 65 | 31 | ||||||||||||||||||||||||
Finished goods | 1,246 | 693 | ||||||||||||||||||||||||
Total inventories | $ | 1,395 | $ | 1,487 | ||||||||||||||||||||||
Property and Equipment, net | ||||||||||||||||||||||||||
Property and equipment, net consisted of the following (in thousands): | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Laboratory equipment | $ | 23,002 | $ | 23,949 | ||||||||||||||||||||||
Leasehold improvements | 9,773 | 9,493 | ||||||||||||||||||||||||
Computer equipment and software | 3,262 | 3,196 | ||||||||||||||||||||||||
Office equipment and furniture | 1,227 | 1,228 | ||||||||||||||||||||||||
Construction in progress (1) | 24 | 41 | ||||||||||||||||||||||||
Property and equipment | 37,288 | 37,907 | ||||||||||||||||||||||||
Less: accumulated depreciation and amortization | (31,452 | ) | (29,461 | ) | ||||||||||||||||||||||
Impairment of laboratory equipment | (1,841 | ) | — | |||||||||||||||||||||||
Property and equipment, net | $ | 3,995 | $ | 8,446 | ||||||||||||||||||||||
-1 | Construction in progress includes equipment received but not yet placed into service pending installation. | |||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||||
Intangible assets consisted of the following (in thousands): | ||||||||||||||||||||||||||
31-Dec-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) | ||||||||||||||||||||||||||
Customer relationships | $ | 3,098 | $ | (3,098 | ) | $ | — | $ | 3,098 | $ | (3,098 | ) | $ | — | 5 | |||||||||||
Developed and core technology | 1,534 | (1,534 | ) | — | 1,534 | (1,534 | ) | — | 5 | |||||||||||||||||
Maxygen intellectual property | 20,244 | (14,058 | ) | 6,186 | 20,244 | (10,684 | ) | 9,560 | 6 | |||||||||||||||||
Total | $ | 24,876 | $ | (18,690 | ) | $ | 6,186 | $ | 24,876 | $ | (15,316 | ) | $ | 9,560 | 6 | |||||||||||
The estimated future amortization expense to be charged to research and development through the year ending December 31, 2016 is as follows (in thousands): | ||||||||||||||||||||||||||
Year ending December 31: | Total | |||||||||||||||||||||||||
2015 | $ | 3,374 | ||||||||||||||||||||||||
2016 | 2,812 | |||||||||||||||||||||||||
$ | 6,186 | |||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||
There were no changes in the carrying value of goodwill of $3,241,000 during 2014 and 2013. |
Assets_Held_for_Sale
Assets Held for Sale | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Property, Plant and Equipment [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. The net carrying value of the excess research and development equipment totaled $3,750,000 and was reduced to an adjusted carrying value of $2,179,000 as of December 31, 2013 to reflect the estimated current fair value for these assets. 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 $0.8 million, which is included in research and development expenses. | ||||||
In 2014, we decided to expedite the disposition of assets held for sale in the United States by selling such assets through auction. As a result, we recognized a change is estimated fair value of $0.7 million in 2014, which is reflected in research and development expense. Also in 2014, we changed our plan to sell certain U.S. research and development equipment, and such equipment was put back in operational use and classified as property and equipment. In addition, certain of the U.S. research and development equipment were exchanged for more suitable research equipment that was classified as property and equipment. The combined transfer of U.S. research and development equipment from assets held for sale to property and equipment was $0.3 million. We recognized a net loss on the disposition and exchange of assets held for sale of less than $0.1 million in 2014. | ||||||
Total assets reclassified as assets held for sale along with the related expense to reduce carrying value to fair value were as follows (in thousands): | ||||||
Assets Held for Sale | Carrying Value | |||||
Excess research and development equipment | $ | 3,750 | ||||
Change in estimated fair value of research equipment during three months ended December 31, 2013 | (1,571 | ) | ||||
Research & development equipment classified as held for sale at December 31, 2013 | 2,179 | |||||
Hungarian subsidiary assets sold in 2014 (see Note 10) | (779 | ) | ||||
Assets held for sale in the United States sold in 2014 | (181 | ) | ||||
Loss on exchange of assets held for sale in the United States sold in 2014 | (188 | ) | ||||
Change in estimated fair value of research equipment in 2014 | (698 | ) | ||||
Assets held for sale transferred to property and equipment in 2014 | (333 | ) | ||||
Research & development equipment classified as held for sale at December 31, 2014 | $ | — | ||||
Sale_of_Hungarian_Subsidiary
Sale of Hungarian Subsidiary | 12 Months Ended |
Dec. 31, 2014 | |
Discontinued Operations and Disposal Groups [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. |
Stockbased_Compensation
Stock-based Compensation | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||
Stock-based Compensation | Stock-based Compensation | |||||||||||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||||||||||||
In March 2010, the Company's board of directors (the "Board") and stockholders approved the 2010 Equity Incentive Award Plan (the “2010 Plan”), which became effective upon the completion of Codexis' IPO in April 2010. The number of shares of the Company's commons stock available for issuance under the 2010 Plan is equal to 1,100,000 shares plus any shares of common stock reserved for future grant or issuance under the Company's 2002 Stock Plan (the "2002 Plan") that remained unissued at the time of completion of the IPO. The 2010 Plan also provides for automatic annual increases in the number of shares reserved for future issuance. All grants will reduce the 2010 Plan reserve by one share for every share granted. As of December 31, 2014, total shares remaining available for issuance under the 2010 Plan were 6,560,731. | ||||||||||||||||||||||||||||
The 2010 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock unit ("RSU"), restricted stock award ("RSA"), performance-based awards, stock appreciation rights, and stock purchase rights to Codexis employees, non-employee directors and consultants. | ||||||||||||||||||||||||||||
The option exercise price for incentive stock options is at least 100% of the fair value of the Company's common stock on the date of grant and the option exercise price for nonstatutory stock options is at least 85% of the fair value of the Company's common stock on the date of grant, as determined by the Board. If, at the time of a grant, the optionee directly or by attribution owns stock possessing more than 10% of the total combined voting power of all of the Company's outstanding capital stock, the exercise price for these options must be at least 110% of the fair value of the underlying common stock. Stock options granted to employees generally have a maximum term of 10 years and vest over a four year period from the date of grant; 25% vest at the end of one year, and 75% vest monthly over the remaining three years. We may grant options with different vesting terms from time to time. Unless an employee's termination of service is due to disability or death, upon termination of service, any unexercised vested options will be forfeited at the end of three months or the expiration of the option, whichever is earlier. | ||||||||||||||||||||||||||||
We issue employees RSUs, which generally vest over either a three year period with 33% of the awards vesting on each annual anniversary or a four year period with 25% of the awards vesting on each annual anniversary. We may grant RSUs with different vesting terms from time to time. | ||||||||||||||||||||||||||||
Performance-Contingent RSUs | ||||||||||||||||||||||||||||
The compensation committee of the Board has approved grants of performance-contingent RSUs ("PSUs") to employees. These awards have dual triggers of vesting based upon the successful achievement of certain corporate operating milestones in specified timelines, as well as a requirement for continued employment. When the performance goals are deemed to be probable of achievement for these types of awards, time-based vesting and, as a result, recognition of stock-based compensation expense commences. | ||||||||||||||||||||||||||||
In each of 2014 and 2013 Codexis awarded PSUs 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. | ||||||||||||||||||||||||||||
In 2014, we concluded that the 2014 PSU performance objective was achieved at a linear point between the threshold level and the target level at 53%. Accordingly, we recognized stock-based compensation expense of $0.4 million to reflect this linear point in 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 PSUs that were granted under the 2013 PSU were canceled in February 2014 when we determined that we had not attained the threshold performance target for the 2013 awards, and as such no expense was recognized for the year ended December 31, 2013. | ||||||||||||||||||||||||||||
Director Compensation Program | ||||||||||||||||||||||||||||
Each of our independent directors receives periodic automatic grants of equity awards under a program implemented under the 2002 Plan. These grants are non-discretionary. Only our independent directors or affiliates of such directors are eligible to receive automatic grants under the 2010 Plan. Under the program, each individual who first becomes an independent director will, on the date such individual joins the Board, automatically be granted (i) a one-time grant of RSAs covering $0.1 million shares of our common stock. These initial equity grants vest annually over the director's first three years of service. | ||||||||||||||||||||||||||||
Annually, upon his or her re-election to the Board at the Annual Meeting of Stockholders, each independent director is automatically granted a RSA covering $85,000 shares of our common stock. These standard annual equity awards vest monthly over the twelve month period of service following the date of grant. In addition, all automatic equity awards vest in full if the Company is subject to a change in control or the Board member dies while in service. | ||||||||||||||||||||||||||||
Stock-Based Compensation Expense | ||||||||||||||||||||||||||||
Stock-based compensation expense is included in the consolidated statements of operations as follows (in thousands): | ||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Research and development | $ | 953 | $ | 1,201 | $ | 2,334 | ||||||||||||||||||||||
Selling, general and administrative | 3,667 | 3,188 | 2,742 | |||||||||||||||||||||||||
$ | 4,620 | $ | 4,389 | $ | 5,076 | |||||||||||||||||||||||
As of December 31, 2014, the unrecognized stock-based compensation cost, net of expected forfeitures, and the estimated weighted-average amortization period, using the straight-line attribution method, was as follows (in thousands, except amortization period): | ||||||||||||||||||||||||||||
Unrecognized Compensation Cost | Weighted-average remaining amortization period (years) | |||||||||||||||||||||||||||
Stock options | $ | 1,306 | 2.75 | |||||||||||||||||||||||||
RSUs | 1,027 | 1.13 | ||||||||||||||||||||||||||
RSAs | 1,222 | 1.24 | ||||||||||||||||||||||||||
PSUs | 259 | 0.68 | ||||||||||||||||||||||||||
Total unrecognized stock-based compensation expense | $ | 3,814 | ||||||||||||||||||||||||||
Compensation Awards | ||||||||||||||||||||||||||||
The following table summarizes equity awards activity under the 2010 Plan and related information (in thousands: | ||||||||||||||||||||||||||||
Number of Shares Subject to Outstanding Options | Weighted-average Exercise Price of Outstanding Options | Number of Shares Subject to Outstanding RSUs | Weighted Average Fair Value per Share at Grant | Number of Shares Outstanding RSAs Subject to Vesting | Weighted-average Fair Value per Share at Grant | Number of Shares Outstanding Subject to Performance Conditions | Weighted-average Fair Value per Share at Grant | |||||||||||||||||||||
31-Dec-11 | 7,904 | $ | 7.35 | 546 | $ | — | — | $ | — | |||||||||||||||||||
Granted | 1,521 | 3.42 | 1,148 | 3.54 | — | — | ||||||||||||||||||||||
Exercised | (708 | ) | 1.78 | |||||||||||||||||||||||||
Released | (167 | ) | — | |||||||||||||||||||||||||
Forfeited | (2,584 | ) | 8.23 | (569 | ) | — | — | |||||||||||||||||||||
31-Dec-12 | 6,133 | 6.65 | 958 | 800 | 3.41 | — | — | |||||||||||||||||||||
Granted | 922 | 2.28 | 2,101 | 1.8 | 216 | 2.32 | 523 | 2.32 | ||||||||||||||||||||
Exercised | (326 | ) | 0.98 | |||||||||||||||||||||||||
Released | (325 | ) | (200 | ) | 3.41 | — | — | |||||||||||||||||||||
Forfeited | (2,603 | ) | 7.35 | (496 | ) | — | — | (165 | ) | — | ||||||||||||||||||
31-Dec-13 | 4,126 | 5.68 | 2,238 | — | 816 | 3.12 | 358 | — | ||||||||||||||||||||
Granted | 1,075 | 2.01 | 155 | 2.14 | 599 | 1.64 | 835 | 2 | ||||||||||||||||||||
Exercised | (145 | ) | 1.33 | |||||||||||||||||||||||||
Released | (923 | ) | (454 | ) | 2.45 | — | — | |||||||||||||||||||||
Forfeited | (1,575 | ) | 6.11 | (418 | ) | (49 | ) | 2.54 | (444 | ) | — | |||||||||||||||||
31-Dec-14 | 3,481 | 4.53 | 1,052 | 912 | 2.51 | 749 | — | |||||||||||||||||||||
Options/RSUs vested and expected to vest at December 31, 2014 | 3,341 | 4.64 | 1,002 | |||||||||||||||||||||||||
Options exercisable at December 31, 2014 | 2,072 | $ | 6.04 | |||||||||||||||||||||||||
As of December 31, 2014, the aggregate intrinsic value of the options outstanding was $0.8 million with a weighted-average remaining contractual term of 6.54 years and the aggregate intrinsic value of the options exercisable was $0.2 million with a weighted-average remaining contractual term of 5.08 years. The total intrinsic value of the options exercised were $57 thousand in 2014, $0.4 million in 2013, and $0.9 million in 2012. | ||||||||||||||||||||||||||||
Valuation Assumptions | ||||||||||||||||||||||||||||
We based the range of weighted-average estimated values of employee stock option grants and rights granted under the employee stock purchase plan, as well as the weighted-average assumptions used in calculating these values, on estimates at the date of grant, as follows: | ||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Expected life (years) | 6 | 6 | 6 | |||||||||||||||||||||||||
Volatility | 65 | % | 65 | % | 61 | % | ||||||||||||||||||||||
Risk-free interest rate | 1.9 | % | 1.2 | % | 1 | % | ||||||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||||
Weighted-average estimated fair value of stock options granted | $ | 1.2 | $ | 1.34 | $ | 1.91 | ||||||||||||||||||||||
Range of Stock Option Exercise Prices | ||||||||||||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable at December 31, 2014 (amounts in thousands, except per share and years): | ||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||
Exercise Prices | Number | Weighted | Weighted | Number | Weighted | |||||||||||||||||||||||
of | Average | Average | of | Average | ||||||||||||||||||||||||
Options | Remaining | Exercise | Options | Exercise | ||||||||||||||||||||||||
Contractual | Price per | Price per | ||||||||||||||||||||||||||
Term | Share | Share | ||||||||||||||||||||||||||
(Years) | ||||||||||||||||||||||||||||
$0.90 - $1.97 | 889 | 8.16 | $ | 1.83 | 113 | $ | 1.05 | |||||||||||||||||||||
$1.98 - $2.45 | 920 | 6.46 | 2.35 | 491 | 2.38 | |||||||||||||||||||||||
$3.41 - $7.46 | 916 | 6.24 | 4.67 | 719 | 4.98 | |||||||||||||||||||||||
$7.81 - $11.87 | 756 | 5.12 | 10.21 | 749 | 10.22 | |||||||||||||||||||||||
3,481 | 6.54 | $ | 4.53 | 2,072 | $ | 6.04 | ||||||||||||||||||||||
Capital_Stock
Capital Stock | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Equity [Abstract] | |||||||||
Capital Stock | Capital Stock | ||||||||
Warrants | |||||||||
The Company's outstanding warrants are exercisable for common stock at any time during their respective terms. During the year ended December 31, 2012, 6,066 warrants were exercised in a net share transaction to acquire 3,308 shares of the Company's common stock. No warrants were exercised during 2014 or 2013. | |||||||||
At December 31, 2014, the following warrants were issued and outstanding: | |||||||||
Issue Date | Shares Subject | Exercise Price | Expiration | ||||||
to warrants | per Share | ||||||||
July 17, 2007 | 2,384 | $ | 12.45 | February 9, 2016 | |||||
September 28, 2007 | 72,727 | 8.25 | September 28, 2017 | ||||||
Stockholder Rights Plan | |||||||||
In August 2012, the Board adopted a stockholder rights plan and declared a dividend of one preferred share purchase right for each share of the Company's common stock held by stockholders of record as of September 18, 2012. Each right entitles stockholders, after the rights become exercisable, to purchase one one thousandth of a share of the Company's Series A Junior Participating Preferred Stock, par value $0.0001, at a purchase price of $11.35 per one-thousandth of a share of Series A Junior Participating Preferred Stock. In general, the rights become exercisable when a person or group acquires 15% or more of the Company's common stock or a tender offer for 15% or more of the Company's common stock is announced or commenced. These rights expired in accordance with the terms of the stockholder rights plan on September 2, 2013. Therefore, the shares of the Company's common stock are no longer accompanied by the rights, and the plan is of no further force or effect. |
401k_Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
401(k) Plan | 401(k) Plan |
In January 2005, we implemented a 401(k) Plan covering certain employees. Currently, all of our United States based employees over the age of 18 are eligible to participate in the 401(k) Plan. Under the 401(k) Plan, eligible employees may elect to reduce their current compensation up to a certain annual limit and contribute these amounts to the 401(k) Plan. We may make matching or other contributions to the 401(k) Plan on behalf of eligible employees. We recorded employer matching contributions expense of $0.4 million in 2014, $0.5 million in 2013, and nil in 2012 as we did not make any contributions to the 401(k) Plan on behalf of eligible employees in 2012. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Our loss before provision for income taxes was as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | (20,980 | ) | $ | (41,696 | ) | $ | (30,743 | ) | |||
Foreign | 1,653 | 306 | 156 | |||||||||
Loss before provision for income taxes | $ | (19,327 | ) | $ | (41,390 | ) | $ | (30,587 | ) | |||
The tax provision for the years ended December 31, 2014, 2013 and 2012 consists primarily of taxes attributable to foreign operations. The components of the provision for income taxes are as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current provision (benefit): | ||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||
State | 5 | 5 | 7 | |||||||||
Foreign | (371 | ) | (45 | ) | 178 | |||||||
Total current provision | (366 | ) | (40 | ) | 185 | |||||||
Deferred provision (benefit): | ||||||||||||
Federal | — | (59 | ) | (62 | ) | |||||||
State | — | (7 | ) | (7 | ) | |||||||
Foreign | 110 | 19 | 154 | |||||||||
Total deferred provision | 110 | (47 | ) | 85 | ||||||||
Total provision for (benefit from) income taxes | $ | (256 | ) | $ | (87 | ) | $ | 270 | ||||
Reconciliation of the provision for income taxes calculated at the statutory rate to our provision for (benefit from) income taxes is as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Tax benefit at federal statutory rate | $ | (6,571 | ) | $ | (14,073 | ) | $ | (10,399 | ) | |||
State taxes | 249 | (1,948 | ) | (1,063 | ) | |||||||
Research and development credits | (57 | ) | (195 | ) | — | |||||||
Foreign operations taxed at different rates | 447 | (108 | ) | 7 | ||||||||
Stock-based compensation | (2 | ) | 117 | 312 | ||||||||
Other nondeductible items | (364 | ) | (1,272 | ) | 204 | |||||||
Change in federal statutory rate | — | — | 1,493 | |||||||||
Change in valuation allowance | 6,042 | 17,392 | 9,716 | |||||||||
Provision for (benefit from) income taxes | $ | (256 | ) | $ | (87 | ) | $ | 270 | ||||
Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating losses and tax credit carryforwards. | ||||||||||||
Significant components of our deferred tax assets and liabilities are as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Net operating losses | $ | 70,666 | $ | 67,507 | ||||||||
Credits | 4,421 | 4,194 | ||||||||||
Deferred revenues | 2,697 | 1,198 | ||||||||||
Stock-based compensation | 2,988 | 3,043 | ||||||||||
Reserves and accruals | 2,701 | 3,626 | ||||||||||
Depreciation | 2,295 | 2,247 | ||||||||||
Intangible assets | 4,639 | 4,208 | ||||||||||
Capital losses | 933 | — | ||||||||||
Unrealized gain/loss | 148 | 112 | ||||||||||
Other assets | 101 | 159 | ||||||||||
Total deferred tax assets: | 91,589 | 86,294 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Other | (186 | ) | — | |||||||||
Total deferred tax liabilities: | (186 | ) | — | |||||||||
Valuation allowance | (91,513 | ) | (86,294 | ) | ||||||||
Net deferred tax liabilities | $ | (110 | ) | $ | — | |||||||
ASC Topic 740 requires that the tax benefit of NOL, temporary differences and credit carryforwards are recorded as an asset to the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is dependent on our ability to generate sufficient taxable income within the carryforward period. Because of our history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not more likely than not to be realized and, accordingly, has provided a valuation allowance against our deferred tax assets. Accordingly, the net deferred tax assets in all the Company's jurisdictions have been fully reserved by a valuation allowance. The net valuation allowance increased by $5.2 million, $14.6 million and $8.6 million during the years ended December 31, 2014, 2013 and 2012, respectively. At such time as it is determined that it is more likely than not that the deferred tax assets are realizable, the valuation allowance will be reduced. | ||||||||||||
The following table sets forth the Company's federal, state and foreign NOL carryforwards and federal research and development tax credits as of December 31, 2014 (in thousands): | ||||||||||||
31-Dec-14 | ||||||||||||
Amount | Expiration | |||||||||||
Years | ||||||||||||
Net operating losses, federal | $ | 196,941 | 2022-2034 | |||||||||
Net operating losses, state | 146,916 | 2015-2034 | ||||||||||
Tax credits, federal | 5,141 | 2022-2034 | ||||||||||
Tax credits, state | 5,975 | Do not expire | ||||||||||
Net operating losses, foreign | 3,241 | Various | ||||||||||
Tax credits, foreign | $ | 16 | Various | |||||||||
Current federal and California tax laws include substantial restrictions on the utilization of NOLs and tax credit carryforwards in the event of an ownership change of a corporation. Accordingly, the Company's ability to utilize NOLs and tax credit carryforwards may be limited as a result of such ownership changes. Such a limitation could result in the expiration of carryforwards before they are utilized. | ||||||||||||
During the current year we determined that the undistributed earnings of our India subsidiary will be repatriated to the United States, and accordingly, we have provided a deferred tax liability totaling $0.2 million as December 31, 2014. The Company has not provided for U.S. federal and state income taxes on all of the remaining non-U.S. subsidiaries’ undistributed earnings as of December 31, 2014, because such earnings are intended to be indefinitely reinvested. As of December 31, 2014, cumulative un-remitted foreign earnings that are considered to be permanently invested outside the United States and on which no U.S. taxes have been provided were approximately $0.1 million. The residual U.S. tax liability, if such amounts were remitted, would be nominal. | ||||||||||||
We adopted ASC's Topic 740's provision for accounting for uncertainty in income taxes on January 1, 2007. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at beginning of year | $ | 8,306 | $ | 7,429 | $ | 6,611 | ||||||
Additions based on tax positions related to current year | 346 | 1,116 | 718 | |||||||||
Additions to tax provision of prior years | — | 6 | 316 | |||||||||
Reductions to tax provision of prior years | (814 | ) | (87 | ) | (29 | ) | ||||||
Lapse of the applicable statute of limitations | — | (158 | ) | (187 | ) | |||||||
Balance at end of year | $ | 7,838 | $ | 8,306 | $ | 7,429 | ||||||
We recognize interest and penalties as a component of our income tax expense. Total interest and penalties recognized in the consolidated statement of operations was $(47,000), $29,000 and $11,000, respectively, in 2014, 2013 and 2012. Total penalties and interest recognized in the balance sheet was $232,000 and $280,000, respectively, in 2014 and 2013. The total unrecognized tax benefits that, if recognized currently, would impact the Company's effective tax rate were $0.5 million and $1.0 million as of December 31, 2014 and 2013, respectively. We do not expect any material changes to our uncertain tax positions within the next 12 months. We are not subject to examination by United States federal or state tax authorities for years prior to 2002 and foreign tax authorities for years prior to 2008. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Loss Contingency [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Operating Leases | ||||
Codexis' headquarters are located in Redwood City, California where it occupies 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 Met Life for a portion of this space in 2004 and the lease has been amended numerous times since then to adjust space and 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. | ||||
We incurred $3.6 million of capital improvement costs related to the facilities leased from MetLife through December 31, 2012. During 2011 and 2012, we requested and received $3.1 million of reimbursements from the landlord from the tenant improvement and HVAC allowances for the completed construction. The reimbursements were recorded once cash was received and is amortized on a straight line basis over the term of the lease as a reduction in rent expense. The remaining lease incentive obligation was $1.7 million at December 31, 2014, and is reflected in other liabilities on the consolidated balance sheet. Rent expense for the Redwood City properties is recognized on a straight-line basis over the term of the lease. | ||||
We are required to restore certain of the Redwood City facilities that we are renting to their original form. We are expensing the asset retirement obligation over the terms of the respective leases. We review the estimated obligation each reporting period and makes adjustments if our estimates change. In 2014, we entered into a sublease agreement whereby certain changes were made to facility by our sublessor. As such, on December 31, 2014, we revised our estimated asset retirement obligation to restore the sublet facility to its original form and recognized an asset retirement obligation of $0.3 million and we increased our related estimated cash payments $0.3 million. We recognized accretion expense related to our asset retirement obligations of nil in each of 2014 and 2013, and $30 thousand in 2012. | ||||
In accordance with the terms of the amended lease agreement, we exercised our right to deliver a letter of credit in lieu of a security deposit. The letters of credit are collateralized by deposit balances held by the bank in the amount of $0.7 million as of December 31, 2014 and 2013. These deposits are recorded as restricted cash on the consolidated balance sheets. | ||||
Prior to March 2014, we also rented facilities in Hungary. Rent expense was being recognized on a straight-line basis over the respective terms of the leases. The facility lease was transferred to Intrexon Corporation to in connection with the sale of Codexis Laboratories Hungary Kft (see Note 10). | ||||
Our leased facility in Singapore was vacated in 2012, the lease terminated and we recorded a cease use liability of $354,000 representing the remaining six months lease term for the facility as an accrued expense at December 31, 2012, which was paid in 2013. | ||||
Rent expense, was $3.4 million in 2014 and $3.6 million in 2013, partially offset by sublease income of $0.4 million in 2014 and nil in 2013. | ||||
Future minimum payments under noncancellable operating leases are as follows at December 31, 2014 (in thousands): | ||||
Lease Payments | ||||
Years ending December 31, | ||||
2015 | $ | 2,743 | ||
2016 | 2,827 | |||
2017 | 2,677 | |||
2018 | 2,736 | |||
2019 | 2,818 | |||
2020 and beyond | 236 | |||
Total | $ | 14,037 | ||
The total future minimum rentals to be received under noncancellable subleases as of December 31, 2014 are $1.4 million. | ||||
Legal Proceedings | ||||
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 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. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |
Related Party Transactions | Related Party Transactions |
Shell and Raízen | |
As discussed in Note 4, “Collaborative Research and Development Agreements,” Shell transferred full ownership of our common stock held by it to Raízen, Shell’s joint venture with Cosan S.A., ("Cosan"), in Brazil, in June 2011. Upon Shell’s transfer of ownership interest to Raízen in 2011, Raízen owned 5.6 million shares of our common stock. In July 2011, we appointed Pedro Mizutani to the Board. Mr. Mizutani also serves as the Chief Operating Officer of Raízen S.A. and other affiliated companies as well as a director of Cosan. At a regularly scheduled meeting of the Board held on November 6, 2014, Pedro Mizutani resigned from the Board effective November 6, 2014. There were no related party transactions with either Raízen or Cosan for the years ended December 31, 2014, 2013 and 2012. | |
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. | |
Thomas R. Baruch, one of our directors, also serves on the board of directors of Exela. In addition, Mr. Baruch is a limited partner in CMEA Ventures, which owns more than 10% of Exela’s outstanding capital stock. As such, Mr. Baruch has an indirect pecuniary interest in the shares of Exela held by CMEA Ventures. | |
We recognized $7.3 million in 2014 and $4.6 million in 2013 and $0.2 million in 2012, shown in the consolidated statement of operations as revenue sharing arrangement. We had no receivables from Exela at December 31, 2014 and $0.4 million at December 31, 2013. | |
Alexander A. Karsner | |
Alexander A. Karsner was a member of the Board until the expiration of his term at the close of our Annual Meeting of Stockholders on June 11, 2014. In addition, Mr. Karsner provided consulting services to us beginning in 2011 through June 30, 2014. Amounts paid to Mr. Karsner for consulting services was $60,000 in 2014 and $120,000 in 2013, and there was no amount owed as of December 31, 2014 and 2013. |
Significant_Customer_and_Geogr
Significant Customer and Geographic Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||||||||||
Significant Customer and Geographic Information | Significant Customer and Geographic Information | |||||||||||
Significant Customers | ||||||||||||
Customers that each contributed 10% or more of our net revenue were as follows: | ||||||||||||
Percentage of Total Revenues | ||||||||||||
For The Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Customers: | ||||||||||||
Merck | 24 | % | 39 | % | 13 | % | ||||||
Exela | 21 | % | 15 | % | — | % | ||||||
GSK | 17 | % | — | % | — | % | ||||||
Novartis | * | 14 | % | 1 | % | |||||||
Shell | — | % | — | % | 51 | % | ||||||
* Percentage was less than 10% | ||||||||||||
Customers that contributed 10% or more of our net revenue who also had an accounts receivable balance for the periods presented were as follows: | ||||||||||||
Percentage of Accounts Receivables as at December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Customers: | ||||||||||||
Merck | 63 | % | — | % | ||||||||
GSK | 2 | % | — | % | ||||||||
Novartis | * | 50 | % | |||||||||
* Revenue Percentage was less than 10%, accounts receivable balance not applicable | ||||||||||||
Geographic Information | ||||||||||||
Geographic revenues are identified by the location of the customer and consist of the following (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenues | ||||||||||||
United States | $ | 16,136 | $ | 11,005 | $ | 51,714 | ||||||
Europe | 15,067 | 9,568 | 11,150 | |||||||||
Asia | ||||||||||||
India | 919 | 3,099 | 16,813 | |||||||||
Singapore | 1,435 | 7,220 | 7,507 | |||||||||
Others | 1,637 | 1,030 | 1,114 | |||||||||
Others | 113 | — | — | |||||||||
$ | 35,307 | $ | 31,922 | $ | 88,298 | |||||||
Geographic presentation of identifiable long-lived assets below shows those assets that can be directly associated with a particular geographic area and consist of the following (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Long-lived assets | ||||||||||||
United States | $ | 10,475 | $ | 16,189 | ||||||||
Europe (1) | — | 2,123 | ||||||||||
Asia | — | — | ||||||||||
$ | 10,475 | $ | 18,312 | |||||||||
-1 | Primarily Hungary |
Restructuring
Restructuring | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Restructuring Costs [Abstract] | ||||||||||||||||
Restructuring | Restructuring | |||||||||||||||
Q1 2012 Restructuring Plan | ||||||||||||||||
During the first quarter of 2012, the Board approved and committed to a restructuring plan (the “Q1 2012 Restructuring Plan”) to reduce its cost structure, which included a total of 13 employee terminations in Hungary, Singapore, and the United States. Costs of $572,000 were originally recognized in selling, general and administrative expenses during the year ended December 31, 2012, comprised of employee severance and other termination benefits. We made cash payments of $512,000 and recorded $60,000 of reductions to previously recorded charges during 2012 and have no further obligations under this restructuring plan. | ||||||||||||||||
Q3 2012 Restructuring Plan | ||||||||||||||||
As a result of the termination of the Shell Research Agreement, we initiated a series of cost reduction measures. During the third quarter of 2012, the Board approved and committed to a restructuring plan (the “Q3 2012 Restructuring Plan”) to reduce its cost structure which included approximately 173 employee terminations in the United States and Singapore and the closing of our Singapore facility. Approximately 150 of the total 173 employee terminations impacted the research and development functions with the remaining 23 employees impacted the general and administrative functions. | ||||||||||||||||
Our cost of the Q3 2012 Restructuring Plan was $2,418,000, comprised of $1,071,000 of leasehold improvement write down, $684,000 for employee severance and other termination benefits, $320,000 for facility lease termination costs and $342,000 for equipment disposal charges. For the twelve months ended December 31, 2012, costs of $1,470,000 have been recognized in selling, general and administrative expenses and $948,000 have been recognized in research and development on the consolidated statements of operations. As of December 31, 2013, there was $68,000 recorded in accrued compensation and $352,000 recorded as accrued expenses on the consolidated balance sheet and the remaining payments were made in 2013. We do not anticipate recording any further costs under this restructuring plan. | ||||||||||||||||
Q4 2013 Restructuring Plan | ||||||||||||||||
During the fourth quarter of 2013, the Board approved and committed to a restructuring plan (the “Q4 2013 Restructuring Plan”) to reduce its cost structure resulting from our 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 of 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. As of December 31, 2013, there was $277,000 recorded in accrued compensation on the consolidated balance sheet. Associated with the Q4 2013 Restructuring Plan, we announced we were selling certain research and development assets that have become excess to future requirements (see Note 9). We do not anticipate recording any further costs under this restructuring plan. | ||||||||||||||||
The following table summarizes the activity in the restructuring accrual during the periods presented (in thousands): | ||||||||||||||||
Q1 2012 Restructuring Plan | Q3 2012 Restructuring Plan | Q4 2013 Restructuring Plan | Total | |||||||||||||
Restructuring charges | $ | 572 | $ | 2,537 | $ | — | $ | 3,109 | ||||||||
Cash payments | (512 | ) | (611 | ) | — | (1,123 | ) | |||||||||
Leasehold improvements write-down and equipment disposal charges | — | (1,413 | ) | — | (1,413 | ) | ||||||||||
Adjustments to previously accrued charges | (60 | ) | (93 | ) | — | (153 | ) | |||||||||
Balance at December 31, 2012 | — | 420 | — | 420 | ||||||||||||
Restructuring charges | — | 809 | 809 | |||||||||||||
Cash payments | — | (345 | ) | (532 | ) | (877 | ) | |||||||||
Non-cash items | — | (49 | ) | — | (49 | ) | ||||||||||
Adjustments to previously accrued charges | — | (26 | ) | — | (26 | ) | ||||||||||
Balance at December 31, 2013 | — | — | 277 | 277 | ||||||||||||
Cash payments | — | — | (238 | ) | $ | (238 | ) | |||||||||
Adjustments to previously accrued charges | — | — | (39 | ) | $ | (39 | ) | |||||||||
Balance at December 31, 2014 | $ | — | $ | — | $ | — | $ | — | ||||||||
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation | ||
The 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”) and include the accounts 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 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 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. | |||
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 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 consolidated statements of operations. | |||
Revenue Recognition | Revenue Recognition | ||
We recognize revenue from the sale of our biocatalyst products, biocatalyst research and development agreements and revenue 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. 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. | |||
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. | |||
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. | |||
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 16, "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. | |||
Sales Allowances | |||
Sales allowances 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. | |||
Government Awards | |||
Through 2012, we received payments from government entities for work performed in the form of government awards. Government awards are agreements that generally provide us with cost reimbursement for certain types of expenditures in return for research and development activities over a contractually defined period. Revenues from government awards are recognized in the period during which the related costs are incurred, provided that the conditions under which the government awards were provided have been met and we have only perfunctory obligations outstanding. | |||
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 | Cost of Research and Development Services | ||
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. | |||
Advertising | Advertising | ||
Advertising costs are expensed as incurred and included in selling, general and administrative expenses in the consolidated statements of operations. | |||
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. | |||
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. | |||
Restructuring Costs | Restructuring Costs | ||
We apply applicable accounting guidance on accounting for costs associated with restructuring, including exit or disposal activities, which requires that a liability for costs associated with an exit or disposal activity be recognized and measured initially at fair value when the liability is incurred. Our restructuring activities have primarily been related to severance, benefits and related personnel costs and facility closing costs. We determined the facility accrual based on expected cash payments, under the applicable facility lease, reduced by any estimated sublease rental income for such facility (see Note 18). | |||
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. Cash and cash equivalents totaled $26.5 million and was comprised of cash of $11.9 million and money market funds of $14.6 million at December 31, 2014. Cash and cash equivalents totaled $22.1 million and was comprised of cash of $6.0 million and money market funds of $16.1 million at December 31, 2013. | |||
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 6, “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 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, short-term investments, 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. | |||
Accounts Receivable | Accounts Receivable | ||
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. In addition, accounts receivable includes amounts owed to us under our collaborative research and development agreements. We recognize accounts receivable at invoiced amounts and we maintain a valuation allowance for doubtful accounts. | |||
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. | |||
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. | |||
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. | |||
Inventories | Inventories | ||
Inventories consist of raw materials and work-in-process and finished goods related to the production of our biocatalysis products. Raw materials include active pharmaceutical ingredients and other raw materials. Work-in-process and finished goods include third party manufacturing costs and labor and indirect costs we incur in the production process. Included in inventories are materials that may be used as clinical products, which are charged to research and development expense when consumed. | |||
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. | |||
Concentrations of Supply Risk | Concentrations of Supply Risk | ||
We rely on a limited number of suppliers for our products. We believe that other vendors would be able to provide similar products; however, the qualification of such vendors may require substantial start-up time. In order to mitigate any adverse impacts from a disruption of supply, we attempt to maintain an adequate supply of critical single-sourced materials. For certain materials, our vendors maintain a supply for us. We outsource the large scale manufacturing of our products to contract manufacturers with facilities in Austria and Italy. | |||
Property and Equipment | Property and Equipment | ||
Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization and depreciated using the straight-line method over their estimated useful lives as follows: | |||
Asset classification | Estimated useful life | ||
Laboratory equipment | 5 years | ||
Computer equipment and software | 3 to 5 years | ||
Office equipment and furniture | 5 years | ||
Leasehold improvements | Lesser of useful life or lease term | ||
Property and equipment classified as construction in process includes equipment that has been received but not yet placed in service. Normal repairs and maintenance costs are expensed as incurred. | |||
Goodwill and Intangible Assets | 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. | |||
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 amounts have been recorded as the excess purchase price over tangible assets, liabilities and intangible assets acquired based on their estimated fair value, by applying the purchase method. Goodwill is not subject to amortization. Goodwill was tested for impairment in the fourth quarter of 2014. We concluded that the fair value of the reporting unit exceeded the carrying value and no impairment existed. | |||
Assets Held for Sale | Assets Held for Sale | ||
We reclassify long-lived assets to Assets Held for Sale when all required criteria for such reclassification are met. The assets are recorded at the lower of the carrying value or fair value less costs to sell. Assets held for sale must meet the following conditions: (1) management, having authority to approve the action, commits to a plan to sell the asset, (2) the asset is available for immediate sale in its present condition, (3) an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated, (4) the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year, (5) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. | |||
In determining the fair value of the assets less cost to sell, we consider factors including current sales prices for comparable assets, recent market analysis studies, appraisals and any recent legitimate offers. If the estimated fair value less cost to sell of an asset is less than its current carrying value, the asset is written down to its estimated fair value less cost to sell. The assumptions about equipment sales prices require significant judgment related to equipment condition and certain selling costs. Due to uncertainties in the estimation process, it is reasonably possible that actual results could differ from the estimates used in our historical analyses and may result in additional impairments if market conditions deteriorate. | |||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | ||
Our long-lived assets include property and equipment and intangible 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' consolidated balance sheet as of December 31, 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. | |||
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. | |||
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 | 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; however, we do not expect it to have any impact. |
Basis_of_Presentation_and_Summ2
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Schedule of estimated ranges of useful lives of property and equipment | Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization and depreciated using the straight-line method over their estimated useful lives as follows: | |||||||
Asset classification | Estimated useful life | |||||||
Laboratory equipment | 5 years | |||||||
Computer equipment and software | 3 to 5 years | |||||||
Office equipment and furniture | 5 years | |||||||
Leasehold improvements | Lesser of useful life or lease term | |||||||
Property and equipment, net consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Laboratory equipment | $ | 23,002 | $ | 23,949 | ||||
Leasehold improvements | 9,773 | 9,493 | ||||||
Computer equipment and software | 3,262 | 3,196 | ||||||
Office equipment and furniture | 1,227 | 1,228 | ||||||
Construction in progress (1) | 24 | 41 | ||||||
Property and equipment | 37,288 | 37,907 | ||||||
Less: accumulated depreciation and amortization | (31,452 | ) | (29,461 | ) | ||||
Impairment of laboratory equipment | (1,841 | ) | — | |||||
Property and equipment, net | $ | 3,995 | $ | 8,446 | ||||
-1 | Construction in progress includes equipment received but not yet placed into service pending installation. |
Net_Loss_per_Share_Tables
Net Loss per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following shares were not included in the computation of diluted net loss per share (in thousands): | ||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Shares issuable under Equity Incentive Plan | 6,193 | 6,722 | 7,091 | ||||||
Shares issuable upon the conversion of warrants | 75 | 75 | 260 | ||||||
Total anti-dilutive securities | 6,268 | 6,797 | 7,351 | ||||||
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||
Available-for-sale Securities | At December 31, 2013, cash equivalents, short-term investments and marketable securities 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 | $ | 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 | 563 | 232 | — | 795 | n/a | |||||||||||||
Total | $ | 19,654 | $ | 235 | $ | — | $ | 19,889 | ||||||||||
At December 31, 2014, cash equivalents and marketable securities consisted of the following (in thousands): | ||||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Adjusted Cost | Gross | Gross | Estimated | Average | ||||||||||||||
Unrealized | Unrealized | Fair Value | Contractual | |||||||||||||||
Gains | Losses | Maturities | ||||||||||||||||
(in days) | ||||||||||||||||||
Money market funds | $ | 14,602 | $ | — | $ | — | $ | 14,602 | n/a | |||||||||
Common shares of CO2 Solutions | 563 | 125 | — | 688 | n/a | |||||||||||||
Total | $ | 15,165 | $ | 125 | $ | — | $ | 15,290 | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 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 December 31, 2014 by level within the fair value hierarchy (in thousands): | |||||||||||||||
31-Dec-14 | ||||||||||||||||
Financial Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Money market funds | $ | 14,602 | $ | — | $ | — | $ | 14,602 | ||||||||
Common shares of CO2 Solutions | 688 | — | 688 | |||||||||||||
Total | $ | 14,602 | $ | 688 | $ | — | $ | 15,290 | ||||||||
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 | ||||||||||||||||
Financial Assets | 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 Measurements, Nonrecurring | 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 | ||||||||||||||||
Non-Financial Assets | Level 1 | Level 2 | Level 3 | |||||||||||||
Inputs | Inputs | Inputs | ||||||||||||||
Assets held for sale | $ | — | $ | — | $ | 2,179 | ||||||||||
Balance_Sheets_Tables
Balance Sheets (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Balance Sheets Details [Abstract] | ||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | The following is a summary of activity in our allowance for doubtful accounts for the periods presented (in thousands): | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Allowance - beginning of period | $ | (460 | ) | $ | (150 | ) | $ | (17 | ) | |||||||||||||||||
Provisions for doubtful accounts | (11 | ) | (386 | ) | (133 | ) | ||||||||||||||||||||
Recoveries from bad debts | — | 76 | — | |||||||||||||||||||||||
Write-off and other | 43 | — | — | |||||||||||||||||||||||
Allowance - end of period | $ | (428 | ) | $ | (460 | ) | $ | (150 | ) | |||||||||||||||||
Schedule of inventory components | Inventories consisted of the following (in thousands): | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Raw materials | $ | 84 | $ | 763 | ||||||||||||||||||||||
Work in process | 65 | 31 | ||||||||||||||||||||||||
Finished goods | 1,246 | 693 | ||||||||||||||||||||||||
Total inventories | $ | 1,395 | $ | 1,487 | ||||||||||||||||||||||
Property and Equipment, net | Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization and depreciated using the straight-line method over their estimated useful lives as follows: | |||||||||||||||||||||||||
Asset classification | Estimated useful life | |||||||||||||||||||||||||
Laboratory equipment | 5 years | |||||||||||||||||||||||||
Computer equipment and software | 3 to 5 years | |||||||||||||||||||||||||
Office equipment and furniture | 5 years | |||||||||||||||||||||||||
Leasehold improvements | Lesser of useful life or lease term | |||||||||||||||||||||||||
Property and equipment, net consisted of the following (in thousands): | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Laboratory equipment | $ | 23,002 | $ | 23,949 | ||||||||||||||||||||||
Leasehold improvements | 9,773 | 9,493 | ||||||||||||||||||||||||
Computer equipment and software | 3,262 | 3,196 | ||||||||||||||||||||||||
Office equipment and furniture | 1,227 | 1,228 | ||||||||||||||||||||||||
Construction in progress (1) | 24 | 41 | ||||||||||||||||||||||||
Property and equipment | 37,288 | 37,907 | ||||||||||||||||||||||||
Less: accumulated depreciation and amortization | (31,452 | ) | (29,461 | ) | ||||||||||||||||||||||
Impairment of laboratory equipment | (1,841 | ) | — | |||||||||||||||||||||||
Property and equipment, net | $ | 3,995 | $ | 8,446 | ||||||||||||||||||||||
-1 | Construction in progress includes equipment received but not yet placed into service pending installation. | |||||||||||||||||||||||||
Intangible Assets | Intangible assets consisted of the following (in thousands): | |||||||||||||||||||||||||
31-Dec-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) | ||||||||||||||||||||||||||
Customer relationships | $ | 3,098 | $ | (3,098 | ) | $ | — | $ | 3,098 | $ | (3,098 | ) | $ | — | 5 | |||||||||||
Developed and core technology | 1,534 | (1,534 | ) | — | 1,534 | (1,534 | ) | — | 5 | |||||||||||||||||
Maxygen intellectual property | 20,244 | (14,058 | ) | 6,186 | 20,244 | (10,684 | ) | 9,560 | 6 | |||||||||||||||||
Total | $ | 24,876 | $ | (18,690 | ) | $ | 6,186 | $ | 24,876 | $ | (15,316 | ) | $ | 9,560 | 6 | |||||||||||
Estimate intangible asset future amortization expense | The estimated future amortization expense to be charged to research and development through the year ending December 31, 2016 is as follows (in thousands): | |||||||||||||||||||||||||
Year ending December 31: | Total | |||||||||||||||||||||||||
2015 | $ | 3,374 | ||||||||||||||||||||||||
2016 | 2,812 | |||||||||||||||||||||||||
$ | 6,186 | |||||||||||||||||||||||||
Assets_Held_for_Sale_Tables
Assets Held for Sale (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Property, Plant and Equipment [Abstract] | ||||||
Disclosure of Long Lived Assets Held-for-sale | Total assets reclassified as assets held for sale along with the related expense to reduce carrying value to fair value were as follows (in thousands): | |||||
Assets Held for Sale | Carrying Value | |||||
Excess research and development equipment | $ | 3,750 | ||||
Change in estimated fair value of research equipment during three months ended December 31, 2013 | (1,571 | ) | ||||
Research & development equipment classified as held for sale at December 31, 2013 | 2,179 | |||||
Hungarian subsidiary assets sold in 2014 (see Note 10) | (779 | ) | ||||
Assets held for sale in the United States sold in 2014 | (181 | ) | ||||
Loss on exchange of assets held for sale in the United States sold in 2014 | (188 | ) | ||||
Change in estimated fair value of research equipment in 2014 | (698 | ) | ||||
Assets held for sale transferred to property and equipment in 2014 | (333 | ) | ||||
Research & development equipment classified as held for sale at December 31, 2014 | $ | — | ||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||
Schedule of stock-based compensation expense | Stock-based compensation expense is included in the consolidated statements of operations as follows (in thousands): | |||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Research and development | $ | 953 | $ | 1,201 | $ | 2,334 | ||||||||||||||||||||||
Selling, general and administrative | 3,667 | 3,188 | 2,742 | |||||||||||||||||||||||||
$ | 4,620 | $ | 4,389 | $ | 5,076 | |||||||||||||||||||||||
Schedule of unrecognized compensation cost, nonvested awards | As of December 31, 2014, the unrecognized stock-based compensation cost, net of expected forfeitures, and the estimated weighted-average amortization period, using the straight-line attribution method, was as follows (in thousands, except amortization period): | |||||||||||||||||||||||||||
Unrecognized Compensation Cost | Weighted-average remaining amortization period (years) | |||||||||||||||||||||||||||
Stock options | $ | 1,306 | 2.75 | |||||||||||||||||||||||||
RSUs | 1,027 | 1.13 | ||||||||||||||||||||||||||
RSAs | 1,222 | 1.24 | ||||||||||||||||||||||||||
PSUs | 259 | 0.68 | ||||||||||||||||||||||||||
Total unrecognized stock-based compensation expense | $ | 3,814 | ||||||||||||||||||||||||||
Schedule of share-based compensation, activity | The following table summarizes equity awards activity under the 2010 Plan and related information (in thousands: | |||||||||||||||||||||||||||
Number of Shares Subject to Outstanding Options | Weighted-average Exercise Price of Outstanding Options | Number of Shares Subject to Outstanding RSUs | Weighted Average Fair Value per Share at Grant | Number of Shares Outstanding RSAs Subject to Vesting | Weighted-average Fair Value per Share at Grant | Number of Shares Outstanding Subject to Performance Conditions | Weighted-average Fair Value per Share at Grant | |||||||||||||||||||||
31-Dec-11 | 7,904 | $ | 7.35 | 546 | $ | — | — | $ | — | |||||||||||||||||||
Granted | 1,521 | 3.42 | 1,148 | 3.54 | — | — | ||||||||||||||||||||||
Exercised | (708 | ) | 1.78 | |||||||||||||||||||||||||
Released | (167 | ) | — | |||||||||||||||||||||||||
Forfeited | (2,584 | ) | 8.23 | (569 | ) | — | — | |||||||||||||||||||||
31-Dec-12 | 6,133 | 6.65 | 958 | 800 | 3.41 | — | — | |||||||||||||||||||||
Granted | 922 | 2.28 | 2,101 | 1.8 | 216 | 2.32 | 523 | 2.32 | ||||||||||||||||||||
Exercised | (326 | ) | 0.98 | |||||||||||||||||||||||||
Released | (325 | ) | (200 | ) | 3.41 | — | — | |||||||||||||||||||||
Forfeited | (2,603 | ) | 7.35 | (496 | ) | — | — | (165 | ) | — | ||||||||||||||||||
31-Dec-13 | 4,126 | 5.68 | 2,238 | — | 816 | 3.12 | 358 | — | ||||||||||||||||||||
Granted | 1,075 | 2.01 | 155 | 2.14 | 599 | 1.64 | 835 | 2 | ||||||||||||||||||||
Exercised | (145 | ) | 1.33 | |||||||||||||||||||||||||
Released | (923 | ) | (454 | ) | 2.45 | — | — | |||||||||||||||||||||
Forfeited | (1,575 | ) | 6.11 | (418 | ) | (49 | ) | 2.54 | (444 | ) | — | |||||||||||||||||
31-Dec-14 | 3,481 | 4.53 | 1,052 | 912 | 2.51 | 749 | — | |||||||||||||||||||||
Options/RSUs vested and expected to vest at December 31, 2014 | 3,341 | 4.64 | 1,002 | |||||||||||||||||||||||||
Options exercisable at December 31, 2014 | 2,072 | $ | 6.04 | |||||||||||||||||||||||||
Assumptions used to estimate the fair value of option grants | We based the range of weighted-average estimated values of employee stock option grants and rights granted under the employee stock purchase plan, as well as the weighted-average assumptions used in calculating these values, on estimates at the date of grant, as follows: | |||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Expected life (years) | 6 | 6 | 6 | |||||||||||||||||||||||||
Volatility | 65 | % | 65 | % | 61 | % | ||||||||||||||||||||||
Risk-free interest rate | 1.9 | % | 1.2 | % | 1 | % | ||||||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||||
Weighted-average estimated fair value of stock options granted | $ | 1.2 | $ | 1.34 | $ | 1.91 | ||||||||||||||||||||||
Information about stock options outstanding and exercisable by exercise price range | The following table summarizes information about stock options outstanding and exercisable at December 31, 2014 (amounts in thousands, except per share and years): | |||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||
Exercise Prices | Number | Weighted | Weighted | Number | Weighted | |||||||||||||||||||||||
of | Average | Average | of | Average | ||||||||||||||||||||||||
Options | Remaining | Exercise | Options | Exercise | ||||||||||||||||||||||||
Contractual | Price per | Price per | ||||||||||||||||||||||||||
Term | Share | Share | ||||||||||||||||||||||||||
(Years) | ||||||||||||||||||||||||||||
$0.90 - $1.97 | 889 | 8.16 | $ | 1.83 | 113 | $ | 1.05 | |||||||||||||||||||||
$1.98 - $2.45 | 920 | 6.46 | 2.35 | 491 | 2.38 | |||||||||||||||||||||||
$3.41 - $7.46 | 916 | 6.24 | 4.67 | 719 | 4.98 | |||||||||||||||||||||||
$7.81 - $11.87 | 756 | 5.12 | 10.21 | 749 | 10.22 | |||||||||||||||||||||||
3,481 | 6.54 | $ | 4.53 | 2,072 | $ | 6.04 | ||||||||||||||||||||||
Capital_Stock_Tables
Capital Stock (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Equity [Abstract] | |||||||||
Schedule of common stock warrants issued and outstanding | At December 31, 2014, the following warrants were issued and outstanding: | ||||||||
Issue Date | Shares Subject | Exercise Price | Expiration | ||||||
to warrants | per Share | ||||||||
July 17, 2007 | 2,384 | $ | 12.45 | February 9, 2016 | |||||
September 28, 2007 | 72,727 | 8.25 | September 28, 2017 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of loss before income taxes, domestic and foreign | Our loss before provision for income taxes was as follows (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | (20,980 | ) | $ | (41,696 | ) | $ | (30,743 | ) | |||
Foreign | 1,653 | 306 | 156 | |||||||||
Loss before provision for income taxes | $ | (19,327 | ) | $ | (41,390 | ) | $ | (30,587 | ) | |||
Components of provision for income taxes | The components of the provision for income taxes are as follows (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current provision (benefit): | ||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||
State | 5 | 5 | 7 | |||||||||
Foreign | (371 | ) | (45 | ) | 178 | |||||||
Total current provision | (366 | ) | (40 | ) | 185 | |||||||
Deferred provision (benefit): | ||||||||||||
Federal | — | (59 | ) | (62 | ) | |||||||
State | — | (7 | ) | (7 | ) | |||||||
Foreign | 110 | 19 | 154 | |||||||||
Total deferred provision | 110 | (47 | ) | 85 | ||||||||
Total provision for (benefit from) income taxes | $ | (256 | ) | $ | (87 | ) | $ | 270 | ||||
Reconciliation of provision for income taxes calculated at the statutory rate to provision for income taxes | Reconciliation of the provision for income taxes calculated at the statutory rate to our provision for (benefit from) income taxes is as follows (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Tax benefit at federal statutory rate | $ | (6,571 | ) | $ | (14,073 | ) | $ | (10,399 | ) | |||
State taxes | 249 | (1,948 | ) | (1,063 | ) | |||||||
Research and development credits | (57 | ) | (195 | ) | — | |||||||
Foreign operations taxed at different rates | 447 | (108 | ) | 7 | ||||||||
Stock-based compensation | (2 | ) | 117 | 312 | ||||||||
Other nondeductible items | (364 | ) | (1,272 | ) | 204 | |||||||
Change in federal statutory rate | — | — | 1,493 | |||||||||
Change in valuation allowance | 6,042 | 17,392 | 9,716 | |||||||||
Provision for (benefit from) income taxes | $ | (256 | ) | $ | (87 | ) | $ | 270 | ||||
Significant components of our deferred tax assets and liabilities | Significant components of our deferred tax assets and liabilities are as follows (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Net operating losses | $ | 70,666 | $ | 67,507 | ||||||||
Credits | 4,421 | 4,194 | ||||||||||
Deferred revenues | 2,697 | 1,198 | ||||||||||
Stock-based compensation | 2,988 | 3,043 | ||||||||||
Reserves and accruals | 2,701 | 3,626 | ||||||||||
Depreciation | 2,295 | 2,247 | ||||||||||
Intangible assets | 4,639 | 4,208 | ||||||||||
Capital losses | 933 | — | ||||||||||
Unrealized gain/loss | 148 | 112 | ||||||||||
Other assets | 101 | 159 | ||||||||||
Total deferred tax assets: | 91,589 | 86,294 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Other | (186 | ) | — | |||||||||
Total deferred tax liabilities: | (186 | ) | — | |||||||||
Valuation allowance | (91,513 | ) | (86,294 | ) | ||||||||
Net deferred tax liabilities | $ | (110 | ) | $ | — | |||||||
Summary of federal, state and foreign NOL carryforwards and federal research and development tax credits | The following table sets forth the Company's federal, state and foreign NOL carryforwards and federal research and development tax credits as of December 31, 2014 (in thousands): | |||||||||||
31-Dec-14 | ||||||||||||
Amount | Expiration | |||||||||||
Years | ||||||||||||
Net operating losses, federal | $ | 196,941 | 2022-2034 | |||||||||
Net operating losses, state | 146,916 | 2015-2034 | ||||||||||
Tax credits, federal | 5,141 | 2022-2034 | ||||||||||
Tax credits, state | 5,975 | Do not expire | ||||||||||
Net operating losses, foreign | 3,241 | Various | ||||||||||
Tax credits, foreign | $ | 16 | Various | |||||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at beginning of year | $ | 8,306 | $ | 7,429 | $ | 6,611 | ||||||
Additions based on tax positions related to current year | 346 | 1,116 | 718 | |||||||||
Additions to tax provision of prior years | — | 6 | 316 | |||||||||
Reductions to tax provision of prior years | (814 | ) | (87 | ) | (29 | ) | ||||||
Lapse of the applicable statute of limitations | — | (158 | ) | (187 | ) | |||||||
Balance at end of year | $ | 7,838 | $ | 8,306 | $ | 7,429 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Loss Contingency [Abstract] | ||||
Schedule of future minimum payments under non-cancellable operating leases | Future minimum payments under noncancellable operating leases are as follows at December 31, 2014 (in thousands): | |||
Lease Payments | ||||
Years ending December 31, | ||||
2015 | $ | 2,743 | ||
2016 | 2,827 | |||
2017 | 2,677 | |||
2018 | 2,736 | |||
2019 | 2,818 | |||
2020 and beyond | 236 | |||
Total | $ | 14,037 | ||
Significant_Customer_and_Geogr1
Significant Customer and Geographic Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||||||||||
Schedules of concentration of risk | Customers that each contributed 10% or more of our net revenue were as follows: | |||||||||||
Percentage of Total Revenues | ||||||||||||
For The Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Customers: | ||||||||||||
Merck | 24 | % | 39 | % | 13 | % | ||||||
Exela | 21 | % | 15 | % | — | % | ||||||
GSK | 17 | % | — | % | — | % | ||||||
Novartis | * | 14 | % | 1 | % | |||||||
Shell | — | % | — | % | 51 | % | ||||||
* Percentage was less than 10% | ||||||||||||
Customers that contributed 10% or more of our net revenue who also had an accounts receivable balance for the periods presented were as follows: | ||||||||||||
Percentage of Accounts Receivables as at December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Customers: | ||||||||||||
Merck | 63 | % | — | % | ||||||||
GSK | 2 | % | — | % | ||||||||
Novartis | * | 50 | % | |||||||||
* Revenue Percentage was less than 10%, accounts receivable balance not applicable | ||||||||||||
Schedule of revenues by geographical area | Geographic revenues are identified by the location of the customer and consist of the following (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenues | ||||||||||||
United States | $ | 16,136 | $ | 11,005 | $ | 51,714 | ||||||
Europe | 15,067 | 9,568 | 11,150 | |||||||||
Asia | ||||||||||||
India | 919 | 3,099 | 16,813 | |||||||||
Singapore | 1,435 | 7,220 | 7,507 | |||||||||
Others | 1,637 | 1,030 | 1,114 | |||||||||
Others | 113 | — | — | |||||||||
$ | 35,307 | $ | 31,922 | $ | 88,298 | |||||||
Schedule of long-lived assets by geographical area | Geographic presentation of identifiable long-lived assets below shows those assets that can be directly associated with a particular geographic area and consist of the following (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Long-lived assets | ||||||||||||
United States | $ | 10,475 | $ | 16,189 | ||||||||
Europe (1) | — | 2,123 | ||||||||||
Asia | — | — | ||||||||||
$ | 10,475 | $ | 18,312 | |||||||||
-1 | Primarily Hungary |
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Restructuring Costs [Abstract] | ||||||||||||||||
Summary of changes in restructuring accrual | The following table summarizes the activity in the restructuring accrual during the periods presented (in thousands): | |||||||||||||||
Q1 2012 Restructuring Plan | Q3 2012 Restructuring Plan | Q4 2013 Restructuring Plan | Total | |||||||||||||
Restructuring charges | $ | 572 | $ | 2,537 | $ | — | $ | 3,109 | ||||||||
Cash payments | (512 | ) | (611 | ) | — | (1,123 | ) | |||||||||
Leasehold improvements write-down and equipment disposal charges | — | (1,413 | ) | — | (1,413 | ) | ||||||||||
Adjustments to previously accrued charges | (60 | ) | (93 | ) | — | (153 | ) | |||||||||
Balance at December 31, 2012 | — | 420 | — | 420 | ||||||||||||
Restructuring charges | — | 809 | 809 | |||||||||||||
Cash payments | — | (345 | ) | (532 | ) | (877 | ) | |||||||||
Non-cash items | — | (49 | ) | — | (49 | ) | ||||||||||
Adjustments to previously accrued charges | — | (26 | ) | — | (26 | ) | ||||||||||
Balance at December 31, 2013 | — | — | 277 | 277 | ||||||||||||
Cash payments | — | — | (238 | ) | $ | (238 | ) | |||||||||
Adjustments to previously accrued charges | — | — | (39 | ) | $ | (39 | ) | |||||||||
Balance at December 31, 2014 | $ | — | $ | — | $ | — | $ | — | ||||||||
Basis_of_Presentation_and_Summ3
Basis of Presentation and Summary of Significant Accounting Policies (Textual) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
operating_segment | ||||
Advertising | ||||
Advertising Expense | $300,000 | $500,000 | $400,000 | |
Cash, Cash Equivalents and Marketable Securities [Abstract] | ||||
Cash and cash equivalents | 26,487,000 | 22,130,000 | 32,003,000 | 25,762,000 |
Cash | 11,900,000 | 6,000,000 | ||
Available-for-sale securities | 15,165,000 | 19,654,000 | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||
Tangible Asset Impairment Charges | 1,841,000 | 0 | ||
Impairment of Intangible Assets, Finite-lived | 0 | |||
Number of Operating Segments | 1 | |||
Goodwill impairment | 0 | 0 | ||
Core IP [Member] | ||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||
Undiscounted cash flows, discount rate (percent) | 19.50% | 18.00% | ||
Undiscounted cash flows, long-term growth rate (percent) | 2.00% | 2.00% | ||
Percentage of undiscounted cash flows per product (percent) | 7.00% | 38.00% | ||
Percentage of undiscounted cash flows greater than the carrying value of the asset group (percent) | 37.00% | 14.00% | ||
Fair value in excess of carrying value (percent) | 44.00% | |||
Core Pharmaceutical Business [Member] | ||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||
Undiscounted cash flows, expected percentage of revenue (percent) | 69.00% | |||
Entity-Wide Revenue, Major Customer, Percentage | 90.00% | |||
Enzyme Opportunities [Member] | ||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||
Undiscounted cash flows, expected percentage of revenue (percent) | 31.00% | |||
Entity-Wide Revenue, Major Customer, Percentage | 10.00% | |||
Money Market Funds [Member] | ||||
Cash, Cash Equivalents and Marketable Securities [Abstract] | ||||
Available-for-sale securities | $14,602,000 | $16,089,000 |
Basis_of_Presentation_and_Summ4
Basis of Presentation and Summary of Significant Accounting Policies (Plant, Property, and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Laboratory equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (years) | 5 years |
Computer equipment and software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (years) | 3 years |
Computer equipment and software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (years) | 5 years |
Office equipment and furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (years) | 5 years |
Net_Loss_per_Share_Details
Net Loss per Share (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities | 6,268 | 6,797 | 7,351 |
Stock Compensation Plan [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities | 6,193 | 6,722 | 7,091 |
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities | 75 | 75 | 260 |
Collaborative_Research_and_Dev1
Collaborative Research and Development Agreements (Details) (USD $) | 12 Months Ended | 1 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2014 | Dec. 31, 2014 | Feb. 01, 2012 | Sep. 30, 2012 | Nov. 30, 2007 | Sep. 30, 2012 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Write-off and other | $43,000 | $0 | $0 | ||||||
GlaxoSmithKline [Member] | |||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Proceeds from license fees received | 6,000,000 | 6,000,000 | |||||||
Revenue recognized | 5,000,000 | ||||||||
Contingent payment | 14,000,000 | ||||||||
Milestones receivable | 6,500,000 | ||||||||
Term of milestone agreement | 3 years | 30 months | |||||||
Contingent payment upon completion of milestones and agreement | 7,500,000 | ||||||||
Minimum milestone receivable | 5,750,000 | ||||||||
Maximum milestone receivable | 38,500,000 | ||||||||
License extension acceptance period | 3 years | ||||||||
Termination notice period | 90 days | ||||||||
License revenue | 1,000,000 | ||||||||
Deferred revenue | 5,000,000 | 5,000,000 | |||||||
Merck [Member] | |||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
License revenue | 2,000,000 | 1,800,000 | |||||||
Deferred revenue | 1,100,000 | 700,000 | 1,100,000 | ||||||
Term of collaborative research and development agreement (in years) | 5 years | ||||||||
Sales revenue, goods | 2,500,000 | 1,000,000 | |||||||
Arch [Member] | |||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Sales revenue, goods | 500,000 | 2,100,000 | |||||||
Write-off and other | 0 | 400,000 | |||||||
Shell [Member] | |||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Term of collaborative research and development agreement (in years) | 5 years | ||||||||
Amount of new shell agreement requires Shell pay | 7,500,000 | ||||||||
Collection of agreement | 7,500,000 | ||||||||
Milestone payment under Shell Research Agreement | $3,000,000 | ||||||||
Liquid fuel (gallons) | 30,000,000 | ||||||||
Period of research agreement with shell (years) | 10 years | ||||||||
Collaborative agreements exclusively right period (years) | 3 years |
Joint_Development_Agreement_wi1
Joint Development Agreement with CO2 Solutions (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 15, 2009 | |
Joint Development Agreement with CO2 solutions (Textual) [Abstract] | ||||
Other than Temporary Impairment Losses, Investments | $0 | $0 | $800,000 | |
CO2 Solutions [Member] | ||||
Joint Development Agreement with CO2 solutions (Textual) [Abstract] | ||||
Number of shares acquired in joint venture (shares) | 10,000,000 | |||
Percentage of common shares outstanding at the time of investment (percent) | 16.60% | |||
Statutory resale restriction, expiry period (months) | 4 months | |||
Statutory resale restriction, expiry date | 15-Apr-10 | |||
Expiration period of original joint development agreement | 2011-01 |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | |
securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | $19,654,000 | $15,165,000 | ||
Gross Unrealized Gains | 235,000 | 125,000 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 19,889,000 | 15,290,000 | ||
Cash and cash equivalents | 22,130,000 | 26,487,000 | 32,003,000 | 25,762,000 |
Cash | 6,000,000 | 11,900,000 | ||
Number of Marketable Securities | 0 | 0 | ||
Money Market Funds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 16,089,000 | 14,602,000 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 16,089,000 | 14,602,000 | ||
Corporate Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 1,002,000 | |||
Gross Unrealized Gains | 3,000 | |||
Gross Unrealized Losses | 0 | |||
Estimated Fair Value | 1,005,000 | |||
Average Contractual Maturities | 140 days | |||
US Treasury Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 2,000,000 | |||
Gross Unrealized Gains | 0 | |||
Gross Unrealized Losses | 0 | |||
Estimated Fair Value | 2,000,000 | |||
Average Contractual Maturities | 59 years | |||
Common Shares of Co Two Solution [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 563,000 | 563,000 | ||
Gross Unrealized Gains | 232,000 | 125,000 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | $795,000 | $688,000 |
Fair_Value_Measurements_Financ
Fair Value Measurements (Financial Assets measured at Fair Value on a Recurring Basis) (Details) (USD $) | Dec. 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 | $15,290 | $19,889 |
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 | 14,602 | 16,089 |
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 | 688 | 3,800 |
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 |
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 | 14,602 | 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 | 14,602 | 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 Solutions [Member] | ||
Summary of financial instruments measured at fair value on a recurring basis | ||
Total financial assets measured at fair value on a recurring basis | 688 | 795 |
Common Shares of CO2 Solutions [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 | |
Common Shares of CO2 Solutions [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 | 688 | 795 |
Common Shares of CO2 Solutions [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 |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets Held for Sale) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ||
Assets Held-for-sale, at Carrying Value | $0 | $2,179 |
Fair_Value_Measurements_Textua
Fair Value Measurements (Textual) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value (Textual) [Abstract] | ||||
Other than temporary change in marketable securities | $0 | $0 | $753 | |
Assets Held-for-sale, at Carrying Value | 2,179 | 0 | 2,179 | |
Asset impairment charges | 1,571 | 1,571 | ||
Co Two Solutions [Member] | ||||
Fair Value (Textual) [Abstract] | ||||
Number of common shares fair value (shares) | 10,000,000 | |||
Other than temporary change in marketable securities | $756 |
Balance_Sheets_Allowance_for_D
Balance Sheets (Allowance for Doubtful Accounts Receivable) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance - beginning of period | ($460) | ($150) | ($17) |
Provisions for doubtful accounts | -11 | -386 | -133 |
Recoveries from bad debts | 0 | 76 | 0 |
Write-off and other | 43 | 0 | 0 |
Allowance - end of period | ($428) | ($460) | ($150) |
Balance_Sheets_Schedule_of_Inv
Balance Sheets (Schedule of Inventory Components) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Inventory Components | ||
Raw materials | $84 | $763 |
Work in process | 65 | 31 |
Finished goods | 1,246 | 693 |
Total inventories | $1,395 | $1,487 |
Balance_Sheets_Property_and_Eq
Balance Sheets (Property and Equipment, net) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and Equipment, Gross | $37,288 | $37,907 |
Less: accumulated depreciation and amortization | -31,452 | -29,461 |
Impairment of laboratory equipment | -1,841 | 0 |
Property and equipment, net | 3,995 | 8,446 |
Laboratory equipment [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and Equipment, Gross | 23,002 | 23,949 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and Equipment, Gross | 9,773 | 9,493 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and Equipment, Gross | 3,262 | 3,196 |
Office equipment and furniture [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and Equipment, Gross | 1,227 | 1,228 |
Construction in progress [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and Equipment, Gross | $24 | $41 |
Balance_Sheets_Intangible_Asse
Balance Sheets (Intangible Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $24,876 | $24,876 |
Accumulated Amortization | -18,690 | -15,316 |
Net Carrying Amount | 6,186 | 9,560 |
Weighted- Average Amortization Period (years) | 6 years | |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,098 | 3,098 |
Accumulated Amortization | -3,098 | -3,098 |
Net Carrying Amount | 0 | 0 |
Weighted- Average Amortization Period (years) | 5 years | |
Developed and core technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,534 | 1,534 |
Accumulated Amortization | -1,534 | -1,534 |
Net Carrying Amount | 0 | 0 |
Weighted- Average Amortization Period (years) | 5 years | |
Maxygen intellectual property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 20,244 | 20,244 |
Accumulated Amortization | -14,058 | -10,684 |
Net Carrying Amount | $6,186 | $9,560 |
Weighted- Average Amortization Period (years) | 6 years |
Balance_Sheets_Intangible_Asse1
Balance Sheets (Intangible Asset Future Amortization Expense) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2015 | $3,374 | |
2016 | 2,812 | |
Net Carrying Amount | $6,186 | $9,560 |
Balance_Sheets_Textual_Details
Balance Sheets (Textual) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Balance Sheets Details [Abstract] | ||
Goodwill, Period Increase (Decrease) | $0 | $0 |
Goodwill | $3,241,000 | $3,241,000 |
Assets_Held_for_Sale_Narrative
Assets Held for Sale (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||||
Assets Held-for-sale, at Carrying Value | $2,179 | $0 | $2,179 | ||
Asset impairment charges | 1,571 | 1,571 | |||
Proceeds from sale of Hungarian subsidiary | 1,500 | 1,500 | 0 | 0 | |
Proceeds from disposal of property and equipment | 800 | 167 | 238 | 0 | |
Change in fair value of assets held for sale | 698 | 0 | 0 | ||
Equipment in property and equipment transferred to (from) assets held for sale | -333 | 2,179 | 0 | ||
Loss on disposal and exchange of Assets Held for Sale, net | $87 | $0 | $0 |
Assets_Held_for_Sale_Assets_Re
Assets Held for Sale (Assets Reclassified) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Long Lived Assets Held-for-sale [Line Items] | |||||
Property and equipment, net | $8,446 | $3,995 | $8,446 | ||
Change in estimated fair value of research equipment | -1,571 | -698 | |||
Assets Held-for-sale, Beginning Balance | 2,179 | ||||
Increase (decrease) in assets held-for-sale | -333 | 2,179 | 0 | ||
Loss on exchange of assets | -188 | ||||
Assets Held-for-sale, Ending Balance | 2,179 | 0 | 2,179 | ||
Assets Held-for-sale [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Property and equipment, net | 3,750 | ||||
Hungary [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Increase (decrease) in assets held-for-sale | -779 | ||||
United States [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Increase (decrease) in assets held-for-sale | ($181) |
Sale_of_Hungarian_Subsidiary_D
Sale of Hungarian Subsidiary (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 15, 2014 | Mar. 13, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Common stock issuances for royalty payment to a licensor | $0 | $0 | $68 | ||
Net gain on sale | 760 | 0 | 0 | ||
Hungarian Subsidiary [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Percent of equity interests held-for-sale | 100.00% | ||||
Common stock issuances for royalty payment to a licensor | 1,500 | ||||
Net gain on sale | $760 |
Stockbased_Compensation_Textua
Stock-based Compensation (Textual) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total shares remaining available for issuance (shares) | 6,560,731 | |||
Share-based Compensation | $4,620,000 | $4,389,000 | $5,076,000 | |
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percent of voting interests (percent) | 10.00% | |||
Purchase price of common stock when voting percent is above minimum threshold (percent) | 110.00% | |||
Stock option expiration period (in years) | 10 years | |||
Vesting period of units granted | 4 years | |||
Employee Stock Option [Member] | One Year Vesting Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual stock option vesting percentage (percent) | 25.00% | |||
Employee Stock Option [Member] | Monthly, Three Year Vesting Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual stock option vesting percentage (percent) | 75.00% | |||
Incentive Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option price as a percent of common stock (percent) | 100.00% | |||
Non-Statutory Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option price as a percent of common stock (percent) | 85.00% | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock units granted (shares) | 155,000 | 2,101,000 | 1,148,000 | |
Restricted Stock Units (RSUs) [Member] | Monthly, Three Year Vesting Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual stock option vesting percentage (percent) | 33.00% | |||
Restricted Stock Units (RSUs) [Member] | Annually, Three Year Vesting Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of units granted | 3 years | |||
Restricted Stock Units (RSUs) [Member] | Annually, Four Year Vesting Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of units granted | 4 years | |||
Annual stock option vesting percentage (percent) | 25.00% | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Threshold level, multiplier | 0.5 | |||
Superior level, multiplier | 2 | |||
Stock units granted (shares) | 835,000 | 523,000 | ||
Estimated performance goal percentage | 53.00% | |||
Share-based Compensation | 400,000 | 0 | ||
Performance Shares [Member] | Annually, Two Year Vesting Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of units granted | 2 years | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock units granted (shares) | 599,000 | 216,000 | ||
Restricted Stock [Member] | Annually, Three Year Vesting Period [Member] | Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of units granted | 3 years | |||
Director compensation grants upon becoming a director | 100,000 | |||
Restricted Stock [Member] | Monthly, Twelve Month Vesting Period [Member] | Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of units granted | 12 months | |||
Director compensation grants upon re-election to board | $85,000 | |||
2010 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for future issuance (shares) | 1,100,000 |
Stockbased_Compensation_StockB
Stock-based Compensation (Stock-Based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of stock-based compensation expense | |||
Stock-based compensation | $4,620,000 | $4,389,000 | $5,076,000 |
Research and Development [Member] | |||
Schedule of stock-based compensation expense | |||
Stock-based compensation | 953,000 | 1,201,000 | 2,334,000 |
Sales, general and administrative [Member] | |||
Schedule of stock-based compensation expense | |||
Stock-based compensation | $3,667,000 | $3,188,000 | $2,742,000 |
Stockbased_Compensation_Unreco
Stock-based Compensation (Unrecognized Compensation Cost) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized stock-based compensation expense | $3,814 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense, stock options | 1,306 |
Weighted-average remaining amortization period (years) | 2 years 9 months |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense, awards other than options | 1,027 |
Weighted-average remaining amortization period (years) | 1 year 1 month 17 days |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense, awards other than options | 1,222 |
Weighted-average remaining amortization period (years) | 1 year 2 months 27 days |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense, awards other than options | $259 |
Weighted-average remaining amortization period (years) | 8 months 5 days |
Stockbased_Compensation_Equity
Stock-based Compensation (Equity Awards Activity) (Details) (USD $) | 12 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of period (number of options) | 4,126 | 6,133 | 7,904 |
Grants (number of options) | 1,075 | 922 | 1,521 |
Exercises (number of options) | -145 | -326 | -708 |
Forfeited/Cancelled (number of options) | -1,575 | -2,603 | -2,584 |
Outstanding, end of period (number of options) | 3,481 | 4,126 | 6,133 |
Options Vested and Expected to Vest (shares) | 3,341 | ||
Options Exercisable (number of options) | 2,072 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, beginning of period, weighted average exercise price per share (dollars per option) | $5.68 | $6.65 | $7.35 |
Grants, weighted average exercise price per share (dollars per option) | $2.01 | $2.28 | $3.42 |
Exercises, weighted average exercise price per share (dollars per option) | $1.33 | $0.98 | $1.78 |
Forfeited, weighted average exercise price per share (dollars per option) | $6.11 | $7.35 | $8.23 |
Outstanding, end of period, weighted average exercise price per share (dollars per option) | $4.53 | $5.68 | $6.65 |
Options Vested and Expected to Vest (dollars per option) | $4.64 | ||
Options Exercisable (dollars per option) | $6.04 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Stock units granted, weighted average grant date fair value (dollars per share) | $1.20 | $1.34 | $1.91 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Options Outstanding, Aggregate Intrinsic Value | $800,000 | ||
Options Outstanding, Weighted Average Remaining Contractual Terms (years) | 6 years 6 months 15 days | ||
Options Exercisable, Aggregate Intrinsic Value | 200,000 | ||
Options Exercisable, Weighted Average Remaining Contractual Terms (years) | 5 years 29 days | ||
Options Exercised, Aggregate Intrinsic Value | $57,000 | $400,000 | $900,000 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, Beginning of Period (shares) | 2,238 | 958 | 546 |
Stock units granted (shares) | 155 | 2,101 | 1,148 |
Stock units released (shares) | -923 | -325 | -167 |
Stock units forfeited (shares) | -418 | -496 | -569 |
Outstanding, Ending of Period (shares) | 1,052 | 2,238 | 958 |
Stock Units Vested and Expected to Vest (shares) | 1,002 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Stock units granted, weighted average grant date fair value (dollars per share) | $2.14 | $1.80 | $3.54 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, Beginning of Period (shares) | 816 | 800 | |
Stock units granted (shares) | 599 | 216 | |
Stock units released (shares) | -454 | -200 | |
Stock units forfeited (shares) | -49 | 0 | |
Outstanding, Ending of Period (shares) | 912 | 816 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, beginning of period, weighted average exercise price per share (dollars per share) | $2.51 | $3.12 | |
Stock units granted, weighted average grant date fair value (dollars per share) | $1.64 | $2.32 | |
Stock units released, weighted average grant date fair value (dollars per share) | $2.45 | $3.41 | |
Stock units forfeited, weighted average exercise price per share (dollars per share) | $2.54 | ||
Outstanding, end of period, weighted average exercise price per share (dollars per share) | $3.12 | $3.41 | |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, Beginning of Period (shares) | 358 | 0 | |
Stock units granted (shares) | 835 | 523 | |
Stock units released (shares) | 0 | 0 | |
Stock units forfeited (shares) | -444 | -165 | |
Outstanding, Ending of Period (shares) | 749 | 358 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Stock units granted, weighted average grant date fair value (dollars per share) | $2 | $2.32 |
Stockbased_Compensation_Stock_
Stock-based Compensation (Stock Option Assumptions) (Details) (Employee Stock Option [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 6 years | 6 years | 6 years |
Volatility | 65.00% | 65.00% | 61.00% |
Risk-free interest rate | 1.90% | 1.20% | 1.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average estimated fair value of stock options granted | $1.20 | $1.34 | $1.91 |
Stockbased_Compensation_Stock_1
Stock-based Compensation (Stock Option Exercise Price Range) (Details) (Employee Stock Option [Member], USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Outstanding Options (options) | 3,481 |
Weighted Average Remaining Contractual Term (years) | 6 years 6 months 15 days |
Options Outstanding, Weighted Average Exercise Price Per Share (dollars per share) | $4.53 |
Number of Options Exercisable (number of options) | 2,072 |
Options Exercisable, Weighted Average Exercise Price Per Share (dollars per share) | $6.04 |
$0.90 - $1.97 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Outstanding Options (options) | 889 |
Weighted Average Remaining Contractual Term (years) | 8 years 1 month 28 days |
Options Outstanding, Weighted Average Exercise Price Per Share (dollars per share) | $1.83 |
Number of Options Exercisable (number of options) | 113 |
Options Exercisable, Weighted Average Exercise Price Per Share (dollars per share) | $1.05 |
Exercise price range, lower range limit (dollars per share) | $0.90 |
Exercise price range, upper range limit (dollars per share) | $1.97 |
$1.98 - $2.45 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Outstanding Options (options) | 920 |
Weighted Average Remaining Contractual Term (years) | 6 years 5 months 16 days |
Options Outstanding, Weighted Average Exercise Price Per Share (dollars per share) | $2.35 |
Number of Options Exercisable (number of options) | 491 |
Options Exercisable, Weighted Average Exercise Price Per Share (dollars per share) | $2.38 |
Exercise price range, lower range limit (dollars per share) | $1.98 |
Exercise price range, upper range limit (dollars per share) | $2.45 |
$3.41 - $7.46 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Outstanding Options (options) | 916 |
Weighted Average Remaining Contractual Term (years) | 6 years 2 months 27 days |
Options Outstanding, Weighted Average Exercise Price Per Share (dollars per share) | $4.67 |
Number of Options Exercisable (number of options) | 719 |
Options Exercisable, Weighted Average Exercise Price Per Share (dollars per share) | $4.98 |
Exercise price range, lower range limit (dollars per share) | $3.41 |
Exercise price range, upper range limit (dollars per share) | $7.46 |
$7.81 - $11.87 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Outstanding Options (options) | 756 |
Weighted Average Remaining Contractual Term (years) | 5 years 1 month 13 days |
Options Outstanding, Weighted Average Exercise Price Per Share (dollars per share) | $10.21 |
Number of Options Exercisable (number of options) | 749 |
Options Exercisable, Weighted Average Exercise Price Per Share (dollars per share) | $10.22 |
Exercise price range, lower range limit (dollars per share) | $7.81 |
Exercise price range, upper range limit (dollars per share) | $11.87 |
Capital_Stock_Narrative_Detail
Capital Stock (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity [Abstract] | ||||
Class of Warrant or Right, Exercises in Period | 0 | 0 | 6,066 | |
Common shares issued | 3,308 | |||
Class of Stock [Line Items] | ||||
Preferred stock, par value | $0.00 | $0.00 | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 15.00% | |||
Tender Offer Portion of Common Stock | 15.00% | |||
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock, par value | 0.0001 | |||
Share Price | 11.35 | |||
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Participation Rights | 1 | |||
Shares Subject to warrants | 0.001 |
Capital_Stock_Warrants_Details
Capital Stock (Warrants) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Warrants Issued on July 17, 2007 and Expiring on February 9, 2016 [Member] | |
Schedule of common stock warrants issued and outstanding | |
Issue Date | 17-Jul-07 |
Shares Subject to warrants | 2,384 |
Exercise Price per Share | $12.45 |
Expiration | 9-Feb-16 |
Warrants Issued on September 28, 2007 and Expiring on September 28, 2017 [Member] | |
Schedule of common stock warrants issued and outstanding | |
Issue Date | 28-Sep-07 |
Shares Subject to warrants | 72,727 |
Exercise Price per Share | $8.25 |
Expiration | 28-Sep-17 |
401k_Plan_Details
401(k) Plan (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | |||
Minimum employee eligibility age (years) | 18 years | ||
Employer contributions to 401(k) plan | $400,000 | $500,000 | $0 |
Income_Taxes_Components_of_Los
Income Taxes (Components of Loss Before Provision for Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Line Items] | |||
Loss before provision for income taxes | ($19,327) | ($41,390) | ($30,587) |
United States [Member] | |||
Income Tax Disclosure [Line Items] | |||
Loss before provision for income taxes | -20,980 | -41,696 | -30,743 |
Foreign [Member] | |||
Income Tax Disclosure [Line Items] | |||
Loss before provision for income taxes | $1,653 | $306 | $156 |
Income_Taxes_Components_of_Pro
Income Taxes (Components of Provision for Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current provision (benefit): | |||
Federal | $0 | $0 | $0 |
State | 5 | 5 | 7 |
Foreign | -371 | -45 | 178 |
Total current provision | -366 | -40 | 185 |
Deferred provision (benefit): | |||
Federal | 0 | -59 | -62 |
State | 0 | -7 | -7 |
Foreign | 110 | 19 | 154 |
Total deferred provision | 110 | -47 | 85 |
Total provision for (benefit from) income taxes | ($256) | ($87) | $270 |
Income_Taxes_Tax_Rate_Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Rate Reconciliation | |||
Tax benefit at federal statutory rate | ($6,571) | ($14,073) | ($10,399) |
State taxes | 249 | -1,948 | -1,063 |
Research and development credits | -57 | -195 | 0 |
Foreign operations taxed at different rates | 447 | -108 | 7 |
Stock-based compensation | -2 | 117 | 312 |
Other nondeductible items | -364 | -1,272 | 204 |
Change in federal statutory rate | 0 | 0 | 1,493 |
Change in valuation allowance | 6,042 | 17,392 | 9,716 |
Total provision for (benefit from) income taxes | ($256) | ($87) | $270 |
Income_Taxes_Components_of_Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Net operating losses | $70,666 | $67,507 |
Credits | 4,421 | 4,194 |
Deferred revenues | 2,697 | 1,198 |
Stock-based compensation | 2,988 | 3,043 |
Reserves and accruals | 2,701 | 3,626 |
Depreciation | 2,295 | 2,247 |
Intangible assets | 4,639 | 4,208 |
Capital losses | 933 | 0 |
Unrealized gain/loss | 148 | 112 |
Other assets | 101 | 159 |
Total deferred tax assets: | 91,589 | 86,294 |
Deferred tax liabilities: | ||
Other | -186 | 0 |
Total deferred tax liabilities: | -186 | 0 |
Valuation allowance | -91,513 | -86,294 |
Net deferred tax liabilities | ($110) | $0 |
Income_Taxes_NOL_and_Tax_Credi
Income Taxes (NOL and Tax Credit Carryforward) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Federal [Member] | |
Net Operating Losses and Tax Credit Carryforwards | |
Net operating losses, amount | $196,941 |
Tax credits, amount | 5,141 |
State [Member] | |
Net Operating Losses and Tax Credit Carryforwards | |
Net operating losses, amount | 146,916 |
Tax credits, amount | 5,975 |
Foreign [Member] | |
Net Operating Losses and Tax Credit Carryforwards | |
Net operating losses, amount | 3,241 |
Tax credits, amount | $16 |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefit Rollforward) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $8,306 | $7,429 | $6,611 |
Additions based on tax positions related to current year | 346 | 1,116 | 718 |
Additions to tax provision of prior years | 0 | 6 | 316 |
Reductions to tax provision of prior years | -814 | -87 | -29 |
Lapse of the applicable statute of limitations | 0 | -158 | -187 |
Balance at end of year | $7,838 | $8,306 | $7,429 |
Income_Taxes_Textual_Details
Income Taxes (Textual) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Valuation Allowance [Line Items] | |||
Increase in deferred tax asset valuation allowance | $5,200,000 | $14,600,000 | $8,600,000 |
Undistributed earnings of foreign subsidiaries | 100,000 | ||
Interest and penalties recognize in income tax expense | -47,000 | 29,000 | 11,000 |
Interest and penalties recognized on the balance sheet | 232,000 | 280,000 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 500,000 | 1,000,000 | |
India [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred tax liability from undistributed foreign earnings | $200,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Textual) (Details) (USD $) | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
Commitments and Contingencies (Textual) [Abstract] | ||||
Incentive from Lessor | $1,700,000 | |||
Asset retirement obligations | 300,000 | |||
Accretion of asset retirement obligation | 0 | 0 | 30,000 | |
Remaining minimum lease payments | 14,037,000 | |||
Rent expense | 3,400,000 | 3,600,000 | ||
Sublease revenue | 400,000 | 0 | ||
Total future minimum rentals to be received under noncancellable subleases | 1,400,000 | |||
Estimated obligation payable | 600,000 | |||
Fifth Amendment [Member] | ||||
Commitments and Contingencies (Textual) [Abstract] | ||||
Amount spent for capital improvements | 3,600,000 | |||
Reimbursements from landlord | 3,100,000 | |||
Letters of credit | 700,000 | 700,000 | ||
Penobscot Space, Building 2 Space, and Saginaw Space [Member] | Fifth Amendment [Member] | ||||
Commitments and Contingencies (Textual) [Abstract] | ||||
Expiration date of lease | 31-Jan-20 | |||
Headquarters, Redwood City [Member] | Fifth Amendment [Member] | ||||
Commitments and Contingencies (Textual) [Abstract] | ||||
Lease area space occupancy (in square feet) | 107,000 | |||
Chesapeake Space [Member] | ||||
Commitments and Contingencies (Textual) [Abstract] | ||||
Expiration date of lease | 31-Jan-17 | |||
Singapore [Member] | ||||
Commitments and Contingencies (Textual) [Abstract] | ||||
Remaining minimum lease payments | $354,000 | $354,000 | ||
Facility lease term (months) | 6 months |
Commitments_and_Contingencies_2
Commitments and Contingencies (Future Minimum Payments Under Operating Leases) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Future minimum payments under non-cancellable operating leases | |
2015 | $2,743 |
2016 | 2,827 |
2017 | 2,677 |
2018 | 2,736 |
2019 | 2,818 |
2020 and beyond | 236 |
Total | $14,037 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | |||
Common stock, value, issued | $4,000 | $4,000 | |
Accounts receivable | 3,870,000 | 5,413,000 | |
Raizen [Member] | |||
Related Party Transaction [Line Items] | |||
Common stock, value, issued | 5,600,000 | ||
Exela PharmSci, Inc [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from exclusivity fee | 7,300,000 | 4,600,000 | 200,000 |
Exela [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts receivable | 0 | 400,000 | |
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts receivable | 0 | 0 | |
Expenses from transactions with related party | $60,000 | $120,000 | |
CMEA Ventures [Member] | Exela PharmSci, Inc [Member] | Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Investment, ownership percentage | 10.00% |
Significant_Customer_and_Geogr2
Significant Customer and Geographic Information (Concentration Risk) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Merck [Member] | Sales [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 24.00% | 39.00% | 13.00% |
Merck [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 63.00% | 0.00% | |
Exela [Member] | Sales [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 21.00% | 15.00% | 0.00% |
GSK [Member] | Sales [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 17.00% | 0.00% | 0.00% |
GSK [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 2.00% | 0.00% | |
Novartis [Member] | Sales [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 14.00% | 1.00% | |
Novartis [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 50.00% | ||
Shell [Member] | Sales [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0.00% | 0.00% | 51.00% |
Significant_Customer_and_Geogr3
Significant Customer and Geographic Information (Revenues) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of revenues by geographical area | |||
Revenues | $35,307 | $31,922 | $88,298 |
United States [Member] | |||
Schedule of revenues by geographical area | |||
Revenues | 16,136 | 11,005 | 51,714 |
Europe [Member] | |||
Schedule of revenues by geographical area | |||
Revenues | 15,067 | 9,568 | 11,150 |
India [Member] | |||
Schedule of revenues by geographical area | |||
Revenues | 919 | 3,099 | 16,813 |
Singapore [Member] | |||
Schedule of revenues by geographical area | |||
Revenues | 1,435 | 7,220 | 7,507 |
Other Asian Countries [Member] | |||
Schedule of revenues by geographical area | |||
Revenues | 1,637 | 1,030 | 1,114 |
Others [Member] | |||
Schedule of revenues by geographical area | |||
Revenues | $113 | $0 | $0 |
Significant_Customer_and_Geogr4
Significant Customer and Geographic Information (Long-lived assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of long-lived assets by geographical area | ||
Long-lived assets | $10,475 | $18,312 |
United States [Member] | ||
Schedule of long-lived assets by geographical area | ||
Long-lived assets | 10,475 | 16,189 |
Europe [Member] | ||
Schedule of long-lived assets by geographical area | ||
Long-lived assets | 0 | 2,123 |
Asia [Member] | ||
Schedule of long-lived assets by geographical area | ||
Long-lived assets | $0 | $0 |
Restructuring_Reserve_Rollforw
Restructuring (Reserve Rollforward) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of changes in restructuring accrual | |||
Beginning balance | $277 | $420 | |
Restructuring charges | 809 | 3,109 | |
Cash payments | -238 | -877 | -1,123 |
Non-cash items | -49 | -1,413 | |
Adjustments to previously accrued charges | -39 | -26 | -153 |
Ending balance | 0 | 277 | 420 |
Q1 2012 Restructuring Plan [Member] | |||
Summary of changes in restructuring accrual | |||
Beginning balance | 0 | 0 | |
Restructuring charges | 0 | 572 | |
Cash payments | 0 | 0 | -512 |
Non-cash items | 0 | 0 | |
Adjustments to previously accrued charges | 0 | 0 | -60 |
Ending balance | 0 | 0 | 0 |
Q3 2012 Restructuring Plan [Member] | |||
Summary of changes in restructuring accrual | |||
Beginning balance | 0 | 420 | |
Restructuring charges | 2,537 | ||
Cash payments | 0 | -345 | -611 |
Non-cash items | -49 | -1,413 | |
Adjustments to previously accrued charges | 0 | -26 | -93 |
Ending balance | 0 | 0 | 420 |
Q4 2013 Restructuring Plan [Member] | |||
Summary of changes in restructuring accrual | |||
Beginning balance | 277 | 0 | |
Restructuring charges | 809 | 0 | |
Cash payments | -238 | -532 | 0 |
Non-cash items | 0 | 0 | |
Adjustments to previously accrued charges | -39 | 0 | 0 |
Ending balance | $0 | $277 | $0 |
Restructuring_Textual_Details
Restructuring (Textual) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 |
employee | employee | employee | ||||
Restructuring (Textual) [Abstract] | ||||||
Cash payments | $238 | $877 | $1,123 | |||
Adjustment to previously accrued charges | -39 | -26 | -153 | |||
Restructuring charges | 809 | 3,109 | ||||
Restructuring reserve | 0 | 277 | 420 | 277 | ||
Q1 2012 Restructuring Plan [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Number of positions eliminated (employee) | 13 | |||||
Cash payments | 0 | 0 | 512 | |||
Adjustment to previously accrued charges | 0 | 0 | -60 | |||
Restructuring charges | 0 | 572 | ||||
Restructuring reserve | 0 | 0 | 0 | 0 | ||
Q1 2012 Restructuring Plan [Member] | Selling, General and Administrative [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Restructuring charges adjusted | 572 | |||||
Q3 2012 Restructuring Plan [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Number of positions eliminated (employee) | 173 | |||||
Restructuring charges adjusted | 2,418 | |||||
Cash payments | 0 | 345 | 611 | |||
Adjustment to previously accrued charges | 0 | -26 | -93 | |||
Restructuring charges | 2,537 | |||||
Restructuring reserve | 0 | 0 | 420 | 0 | ||
Q3 2012 Restructuring Plan [Member] | Accrued Compensation [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Restructuring reserve | 68 | 68 | ||||
Q3 2012 Restructuring Plan [Member] | Accrued Expenses [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Restructuring reserve | 352 | 352 | ||||
Q3 2012 Restructuring Plan [Member] | Employee Severance [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Restructuring charges adjusted | 684 | |||||
Q3 2012 Restructuring Plan [Member] | Facility Closing [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Restructuring charges | 320 | |||||
Q3 2012 Restructuring Plan [Member] | Leasehold Improvement Write Down [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Restructuring charges adjusted | 1,071 | |||||
Q3 2012 Restructuring Plan [Member] | Equipment Disposal Charges [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Restructuring charges | 342 | |||||
Q3 2012 Restructuring Plan [Member] | Research and Development Functions [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Number of positions eliminated (employee) | 150 | |||||
Q3 2012 Restructuring Plan [Member] | General and Administrative Functions [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Number of positions eliminated (employee) | 23 | |||||
Q3 2012 Restructuring Plan [Member] | Selling, General and Administrative [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Restructuring charges | 1,470 | |||||
Q3 2012 Restructuring Plan [Member] | Research and Development [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Restructuring charges adjusted | 948 | |||||
Q4 2013 Restructuring Plan [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Number of positions eliminated (employee) | 15 | |||||
Cash payments | 238 | 532 | 0 | |||
Adjustment to previously accrued charges | -39 | 0 | 0 | |||
Restructuring charges | 809 | 0 | ||||
Restructuring reserve | 0 | 277 | 0 | 277 | ||
Q4 2013 Restructuring Plan [Member] | Selling, General and Administrative [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Restructuring charges | 236 | |||||
Q4 2013 Restructuring Plan [Member] | Research and Development [Member] | ||||||
Restructuring (Textual) [Abstract] | ||||||
Restructuring charges | $573 |