Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CODEXIS INC | |
Entity Central Index Key | 1,200,375 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 40,306,967 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 16,963 | $ 26,487 |
Accounts receivable, net of allowances of $421 at September 30, 2015 and $428 at December 31, 2014 | 13,608 | 3,870 |
Inventories | 678 | 1,395 |
Prepaid expenses and other current assets | 1,092 | 1,255 |
Total current assets | 32,341 | 33,007 |
Restricted cash | 786 | 711 |
Marketable securities | 1,231 | 688 |
Property and equipment, net | 2,821 | 3,995 |
Intangible assets, net | 3,655 | 6,186 |
Goodwill | 3,241 | 3,241 |
Other non-current assets | 265 | 294 |
Total assets | 44,340 | 48,122 |
Current liabilities: | ||
Accounts payable | 1,174 | 4,673 |
Accrued compensation | 2,554 | 2,946 |
Other accrued liabilities | 2,151 | 2,619 |
Deferred revenue | 6,949 | 3,497 |
Total current liabilities | 12,828 | 13,735 |
Deferred revenue, net of current portion | 4,316 | 3,813 |
Other long-term liabilities | $ 3,888 | $ 4,263 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 5,000 shares authorized, none issued and outstanding | $ 0 | $ 0 |
Common stock, $0.0001 par value; 100,000 shares authorized at September 30, 2015 and December 31, 2014; shares issued and outstanding of 40,300 at September 30, 2015 and 39,563 at December 31, 2014 | 4 | 4 |
Additional paid-in capital | 304,561 | 302,379 |
Accumulated other comprehensive income (loss) | 201 | (142) |
Accumulated deficit | (281,458) | (275,930) |
Total stockholders' equity | 23,308 | 26,311 |
Total liabilities and stockholders' equity | $ 44,340 | $ 48,122 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 421 | $ 428 |
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Preferred Stock, Shares Outstanding | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 40,300,000 | 39,563,000 |
Common Stock, Shares, Outstanding | 40,300,000 | 39,563,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Biocatalyst product sales | $ 1,818 | $ 2,562 | $ 6,915 | $ 8,323 |
Biocatalyst research and development | 14,517 | 3,364 | 19,247 | 7,176 |
Revenue sharing arrangement | 1,066 | 1,546 | 4,056 | 5,617 |
Total revenues | 17,401 | 7,472 | 30,218 | 21,116 |
Costs and operating expenses: | ||||
Cost of biocatalyst product sales | 1,302 | 1,532 | 4,009 | 6,179 |
Research and development | 4,994 | 5,038 | 15,457 | 17,708 |
Selling, general and administrative | 5,415 | 5,157 | 16,289 | 16,791 |
Total costs and operating expenses | 11,711 | 11,727 | 35,755 | 40,678 |
Income (loss) from operations | 5,690 | (4,255) | (5,537) | (19,562) |
Interest income | 4 | 3 | 12 | 15 |
Other expenses | (26) | (57) | (147) | (183) |
Income (loss) before income taxes | 5,668 | (4,309) | (5,672) | (19,730) |
Provision for (benefit from) income taxes | 274 | 253 | (144) | (314) |
Net income (loss) | $ 5,394 | $ (4,562) | $ (5,528) | $ (19,416) |
Net income (loss) per share, basic (dollars per share) | $ 0.14 | $ (0.12) | $ (0.14) | $ (0.51) |
Net income (loss) per share, diluted (dollars per share) | $ 0.13 | $ (0.12) | $ (0.14) | $ (0.51) |
Weighted average common shares used in computing net income (loss) per share, basic (shares) | 39,767 | 38,450 | 39,340 | 38,063 |
Weighted average common shares used in computing net income (loss) per share, diluted (shares) | 40,970 | 38,450 | 39,340 | 38,063 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 5,394 | $ (4,562) | $ (5,528) | $ (19,416) |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on marketable securities, net of tax expense of $263 and $160 for the three months ended September 30, 2015 and 2014, respectively, and tax benefit of $200 and $89 for the nine months ended September 30, 2015 and 2014, respectively. | (449) | (261) | 343 | 145 |
Other comprehensive income (loss) | (449) | (261) | 343 | 145 |
Total comprehensive income (loss) | $ 4,945 | $ (4,823) | $ (5,185) | $ (19,271) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax (benefit) expense from marketable securities | $ 263 | $ (200) | $ 160 | $ (89) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities: | ||
Net income (loss) | $ (5,528) | $ (19,416) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of intangible assets | 2,531 | 2,531 |
Depreciation and amortization of property and equipment | 1,569 | 2,679 |
Impairment of property and equipment | 0 | 1,841 |
Change in the fair value of assets held for sale | 0 | 886 |
Gain on disposal of property and equipment | (5) | (115) |
Income tax benefit related to marketable securities | (200) | (89) |
Gain on sale of Hungarian subsidiary | 0 | (760) |
Stock-based compensation | 3,759 | 3,630 |
Amortization of premium on marketable securities | 0 | 2 |
Bad debt expense | 0 | 53 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (9,738) | 2,316 |
Inventories, net | 717 | (456) |
Prepaid expenses and other current assets | 163 | (734) |
Other assets | 29 | 15 |
Accounts payable | (3,499) | (1,418) |
Accrued compensation | (393) | (1,100) |
Other accrued liabilities | (842) | 194 |
Deferred revenue | 3,955 | 5,288 |
Net cash used in operating activities | (7,482) | (4,653) |
Investing activities: | ||
Purchase of property and equipment | (395) | (267) |
Proceeds from maturities of marketable securities | 0 | 3,000 |
Proceeds from sale of Hungarian subsidiary, net of selling costs | 0 | 1,500 |
Proceeds from the sale of assets held for sale | 0 | 281 |
Proceeds from sale of property and equipment | 5 | 166 |
Increase in restricted cash | (75) | 0 |
Net cash provided by (used in) investing activities | (465) | 4,680 |
Financing activities: | ||
Proceeds from exercises of options to purchase common stock | 235 | 180 |
Taxes paid related to net share settlement of equity awards | (1,812) | (815) |
Net cash used in financing activities | (1,577) | (635) |
Net decrease in cash and cash equivalents | (9,524) | (608) |
Cash and cash equivalents at the beginning of the period | 26,487 | 22,130 |
Cash and cash equivalents at the end of the period | $ 16,963 | $ 21,522 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business In these notes to the condensed consolidated financial statements, the "Company," "we," "us," and "our" refer 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 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 (the "CodeEvolver ® Platform Technology"), 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 the CodeEvolver ® Platform Technology 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 the CodeEvolver ® Platform Technology for its internal development purposes. In August 2015, we entered into a license agreement involving the CodeEvolver ® Platform Technology with a second global pharmaceutical company and we continue to pursue licensing opportunities with additional customers. We have commercialized our technology and products in the pharmaceuticals market, which is our primary business focus. Our customers, which include several large global pharmaceutical companies, use our technology, products and services in their manufacturing processes and process development. 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 are also using 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 Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the applicable rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2014 . The condensed consolidated balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements at that date, but does not include all disclosures, including notes, required by GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to present fairly our financial position as of September 30, 2015 and results of our operations and comprehensive income (loss) for the three and nine months ended September 30, 2015 and 2014 , and cash flows for the nine months ended September 30, 2015 and 2014 . The interim results are not necessarily indicative of the results for any future interim period or for the entire year. Certain prior period amounts have been reclassified to conform to current period presentation. The unaudited interim condensed consolidated financial statements include Codexis, Inc. and its wholly owned subsidiaries in the United States, Brazil, Hungary (through the sale date of March 13, 2014), India, Mauritius, the Netherlands, and Singapore (dissolved in October 2014). All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. We regularly assess these estimates which primarily affect revenue recognition, accounts receivable, inventories, the valuation of investment securities and marketable securities, assets held for sale, intangible assets, goodwill arising out of business acquisitions, accrued liabilities, stock awards and the valuation allowances associated with deferred tax assets. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements. Segment Reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our 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. We have 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, we have a single reporting segment. Revenue Recognition We recognize revenues from the sale of our biocatalyst products, biocatalyst research and development agreements and a revenue sharing arrangement. 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. We account for revenues from 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. Biocatalyst Product Sales Biocatalyst product sales consist of sales of biocatalyst enzymes, chemical intermediates 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 included in 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 licensees' product sales or cost savings achieved by our 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 revenues 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 revenues from non-refundable, 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 recorded as deferred revenues and recognized over the estimated period of performance. Estimated performance periods 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. 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 revenues from other contingent payments based on the passage of time or when earned as the result of a customer's performance in accordance with contractual terms and when such payments can be reasonably estimated and collectability of such payments is reasonably assured. We recognize revenues 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 revenues, estimates are made using notification of the sale of licensed products from the licensees. Revenue Sharing Arrangement We recognize revenues from a revenue sharing arrangement based upon sales of licensed products by our revenue share partner Exela PharmSci, Inc. ("Exela") (see Note 12, "Related Party Transactions"). We recognize revenues 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 revenues are recognized, resulting in a reduction in biocatalyst product sales revenue. 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 shipping costs were not significant in any of the periods presented. Cost of Research and Development Services Cost of research and development services related to services under research and development agreements approximate the research funding over the term of the respective agreements and is included in research and development expense. Research and Development Expenses Research and development expenses consist of costs incurred for internal projects as well as research and development services as mentioned above. 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. Costs to acquire technologies that are utilized in research and development and that have no alternative future use are expensed as incurred. Stock-Based Compensation We use the Black-Scholes-Merton option pricing model to estimate the fair value of options granted under our equity incentive plans. The Black-Scholes-Merton option pricing model requires the use of assumptions, including the expected term of the award and the expected stock price volatility. We have, due to insufficient historical data, used the "simplified method," as described in Staff Accounting Bulletin No. 107, "Share-Based Payment," to determine the expected life of all stock options granted from the inception of our equity plans through the first half of 2015. We believe we have sufficient historical data to calculate expected terms for stock options granted beginning in the third quarter of 2015. The expected term was based on historical exercise behavior on similar awards, giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. We used 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 options. The expected dividend assumption was based on our 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 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 the 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 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 net operating loss carryforwards. Foreign Currency Translation The United States dollar is the functional currency for our operations outside the United States. Accordingly, nonmonetary assets and liabilities originally acquired or assumed in other currencies are recorded in United States dollars at the exchange rates in effect at the date they were acquired or assumed. Monetary assets and liabilities denominated in other currencies are translated into United States dollars at the exchange rates in effect at the balance sheet date. Translation adjustments are recorded in other expense in the accompanying condensed consolidated statements of operations. Gains and losses realized from non-U.S. dollar transactions, including intercompany balances not considered as permanent investments, denominated in currencies other than an entity's functional currency, are also included in other expense in the accompanying condensed consolidated statements of operations. Cash and Cash Equivalents We consider all highly liquid investments with maturity dates of three months or less at the date of purchase to be cash equivalents. Our cash and cash equivalents consist of cash on deposit with banks and money market funds. Most of our cash and cash equivalents are 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 $ 17.0 million at September 30, 2015 and were comprised of cash of $ 5.9 million and money market funds of $ 11.1 million . Inventories Inventories are stated at the lower of cost or market value. Cost is determined using a weighted-average approach, assuming full absorption of direct and indirect manufacturing costs, based on our product capacity utilization assumptions. If inventory costs exceed expected market value due to obsolescence or lack of demand, valuation adjustments are recorded for the difference between the cost and the estimated market value. These valuation adjustments are determined based on significant estimates. Marketable Securities We invest in equity securities and we classify those investments as available-for-sale. These securities are carried at estimated fair value (see Note 5, "Marketable Securities") with unrealized gains and losses included in accumulated other comprehensive income (loss) in stockholders' equity. Available-for-sale equity securities with remaining maturities of greater than one year or which we currently do not intend to sell 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 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 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. 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. Intangible Assets Our intangible assets are finite-lived and consist of customer relationships, developed core technology, trade names, and the intellectual property 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 we acquired the assets and, for those assets having finite useful lives, are amortized using the straight-line method over their estimated useful lives. Impairment of Long-Lived Assets Our long-lived assets include property and equipment and intangible assets. We determined that we have 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 our identifiable cash flow generating capacity. Consequently, we do not believe that identification of independent cash flows associated with 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 our condensed consolidated balance sheet as of September 30, 2015 . 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 our 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 our 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 our 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. Our anticipated future cash flows include our estimates of existing or in process product sales, production and operating costs, future capital expenditures, working capital needs, and assumptions regarding the ultimate sale of the Asset Group at the end of the life of the primary asset. The useful life of the Asset Group was based on the estimated useful life of the Core IP, the primary asset at the time of acquisition. There has been no change in the estimated useful life of the Asset Group. Although our cash flow forecasts are based on assumptions that are consistent with our plans, there is significant judgment involved in determining the cash flows attributable to the Asset Group over its estimated remaining useful life. In the fourth quarter of 2014, we determined that there were no events or changes in circumstances that indicated that the carrying value of the Asset Group might not be recoverable. We concluded that the fair value of the reporting unit exceeded its carrying value and no impairment existed. During the nine months ended September 30, 2015 , we did not identify any indicators of potential impairment of intangible assets or new information that would have a material impact on the forecast or the impairment analysis prepared as of December 31, 2014. Goodwill We determined that we operate in one segment and reporting unit under the criteria in ASC 280, "Segment Reporting." Accordingly, our review of goodwill impairment indicators is performed at the parent level. We review goodwill impairment annually in the fourth quarter of each fiscal year 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 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 our market capitalization as an indicator of fair value. We believe that because our 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 our 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 our 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 our projected future cash flows expected to be generated from our 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 our market capitalization be less than 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 our stock price over a reasonable period and, if appropriate, use an income approach to determine whether the fair value of our reporting unit is greater than the carrying amount. The second step, if required, compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. Implied fair value is the excess of the fair value of the reporting unit over the fair value of all identified assets and liabilities. We base our fair value estimates on assumptions we believe to be reasonable. Actual future results may differ from those estimates. Goodwill was tested for impairment in the fourth quarter of 2014 . We determined that the fair value of the reporting unit exceeded the carrying value and no impairment existed. Based on the results obtained, we concluded there was no impairment of our goodwill as of December 31, 2014 . During the nine months ended September 30, 2015 , we did not identify any indicators of potential impairment of goodwill or new information that would have a material impact on the forecast or the impairment analysis prepared as of December 31, 2014 . 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 our 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 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 us. 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 our 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 we should experience such a change of ownership, utilization of our 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. We recognized an income tax expense of $0.3 million for both the three months ended September 30, 2015 and 2014. We recognized an income tax benefit of $0.1 million for the nine months ended September 30, 2015, as compared to $0.3 million for the same period in 2014. 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 upo |
Net Income (Loss) per Share
Net Income (Loss) per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net (Income) Loss per Share | Net Income (Loss) per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding, less RSAs subject to forfeiture. Diluted net income per share is computed by dividing net income 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 periods of net loss, diluted and basic net loss per share were identical since potential common shares were excluded from the calculation, as their effect would be anti-dilutive. The following table sets forth the computation of basic and diluted net income per share during the three and nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator Net income (loss) $ 5,394 $ (4,562 ) $ (5,528 ) $ (19,416 ) Denominator Weighted average common shares used in computing net income (loss) per share, basic 39,767 38,450 39,340 38,063 Effect of dilutive shares 1,203 — — — Weighted average common shares used in computing net income (loss) per share, diluted 40,970 38,450 39,340 38,063 Net income (loss) per share, basic $ 0.14 $ (0.12 ) $ (0.14 ) $ (0.51 ) Net income (loss) per share, diluted $ 0.13 $ (0.12 ) $ (0.14 ) $ (0.51 ) 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 considered in the computation of diluted net loss per share (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Shares issuable under Equity Incentive Plan — 6,398 6,121 6,398 Shares issuable upon the conversion of warrants — 75 75 75 Total shares excluded as anti-dilutive — 6,473 6,196 6,473 |
Collaborative Arrangements
Collaborative Arrangements | 9 Months Ended |
Sep. 30, 2015 | |
Research and Development [Abstract] | |
Collaborative Arrangements | Collaborative Arrangements GSK Platform Technology Transfer, Collaboration and License Agreement In July 2014, we entered into a CodeEvolver ® platform technology transfer, collaboration and license agreement (the "GSK License Agreement") with GlaxoSmithKline ("GSK"). Under the terms of the GSK License Agreement, we granted GSK a non-exclusive license to use the CodeEvolver ® Platform Technology to develop novel enzymes for use in the manufacture of GSK's pharmaceutical and health care products. We received a $6.0 million up-front licensing fee upon signing the GSK License Agreement and subsequently a $5.0 million non-creditable, non-refundable milestone payment upon achievement of the first milestone. During the three months ended September 30, 2015 , we achieved the second milestone of the agreement earning another milestone payment of $6.5 million . We are eligible to receive an additional contingent payment of $7.5 million upon the completion of the technology transfer period. We also have the potential to receive 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 the CodeEvolver ® Platform Technology 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 ® Platform Technology that arise during such period. In addition, we will also be eligible to receive royalties based on net sales, if any, of a limited set of products developed by GSK using the CodeEvolver ® Platform Technology. The term of the GSK License Agreement continues, unless earlier terminated, until the expiration of all payment obligations under the GSK License Agreement. At any time following the completion of the first technology transfer stage, GSK can terminate the GSK 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 GSK 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 and our participation in joint steering committee activities in connection with the platform technology transfer represent a single unit of accounting. We determined that our participation in the joint steering committee 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 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 $0.5 million and $1.5 million for the three and nine months ended September 30, 2015 , respectively, and $0.5 million for the three and nine months ended September 30, 2014 as biocatalyst research and development revenues. We had a deferred revenue balance from GSK related to the upfront license fee of $3.5 million at September 30, 2015 and $5.0 million at December 31, 2014 . Merck Supply Agreement On February 1, 2012, we entered into a five -year Sitagliptin Catalyst Supply Agreement ("Sitagliptin Catalyst Supply Agreement") with Merck Sharp and Dohme Corp., known as MSD outside the United States and Canada ("Merck") whereby Merck may obtain commercial scale substance for use in the manufacture of its products based on the active ingredient sitagliptin, e.g., 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 requires 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 revenues ratably over the five year term of the Sitagliptin Catalyst Supply Agreement. We recognized license fees of $0.5 million for each of the three months ended September 30, 2015 and 2014 and $1.5 million for each of the nine months ended September 30, 2015 and 2014 as biocatalyst research and development revenues. We had a deferred revenue balance from Merck related to license fees of $1.4 million at September 30, 2015 and $0.9 million at December 31, 2014 . In addition, pursuant to the Sitagliptin Catalyst Supply Agreement, Merck may purchase supply from us for a fee based on contractually stated prices. Merck Platform Technology Transfer and License Agreement On August 3, 2015 ("Effective Date"), we entered into a CodeEvolver ® platform technology transfer and license agreement (the "Merck License Agreement") with Merck. The Agreement allows Merck to use the CodeEvolver ® Platform Technology in the field of human and animal healthcare. We received a $5.0 million up-front licensing fee upon signing the Merck License Agreement. During the three months ended September 30, 2015 , we achieved the first milestone of the Merck License Agreement earning a milestone payment of $5.0 million . We are eligible to receive an additional $8.0 million subject to the satisfactory completion of the second milestone of the technology transfer process. We will also be eligible to receive payments of up to a maximum of $15.0 million for each commercial active pharmaceutical ingredient ("API") that is manufactured by Merck using one or more novel enzymes developed by Merck using the CodeEvolver ® Platform Technology. Under the terms of the Merck License Agreement, we granted to Merck a non-exclusive, worldwide license to use the CodeEvolver ® Platform Technology to research, develop and manufacture novel enzymes for use by Merck in its internal research programs ("Merck Non-Exclusive Field"). The license to Merck is exclusive for the research, development and manufacture of novel enzymes for use by Merck in the chemical synthesis of therapeutic products owned or controlled by Merck ("Merck Exclusive Field"). Merck has the right to grant sublicenses to affiliates of Merck and, in certain limited circumstances, to third parties. We also granted to Merck a license to make or have made products manufactured using the CodeEvolver ® Platform Technology with a right to grant sublicenses solely to affiliates of Merck, contract manufacturing organizations and contract research organizations. The manufacturing license is exclusive in the Merck Exclusive Field and non-exclusive in the Merck Non-Exclusive Field. The licenses are subject to certain limitations based on pre-existing contractual obligations that apply to the technology and intellectual property that are the subject of the license grants. The licenses do not permit the use of the CodeEvolver ® Platform Technology to discover any therapeutic enzyme, diagnostic product or vaccine. In addition, Merck is prohibited from using the CodeEvolver ® Platform Technology to develop or produce enzymes or any other compounds for or on behalf of any third parties except in a very limited manner when Merck divests a therapeutic product that is manufactured using an enzyme developed using the CodeEvolver ® Platform Technology. Under the Merck License Agreement, we will transfer the CodeEvolver ® Platform Technology to Merck over an approximately 15 to 24 month period starting on the Effective Date (the "Technology Transfer Period"). As part of this technology transfer, we will provide to Merck our proprietary enzymes, proprietary protein engineering protocols and methods, and proprietary software algorithms. In addition, teams of our and Merck scientists will participate in technology training sessions and collaborative research projects at our laboratories in Redwood City, California and at a designated Merck laboratory. Upon completion of technology transfer, Merck will have CodeEvolver ® Platform Technology installed at its designated site. The licenses to Merck are granted under patents, patent applications and know-how that we own or control as of the Effective Date and that cover the CodeEvolver ® Platform Technology. Any improvements to the CodeEvolver ® Platform Technology during the Technology Transfer Period will also be included in the license grants from Codexis to Merck. At the end of the Technology Transfer Period, Merck can exercise annual options that, upon payment of certain option fees, would extend Merck's license to include certain improvements to the CodeEvolver ® Platform Technology that arise during the three-year period that begins at the end of the Technology Transfer Period. During the 15-month period that started on the Effective Date, we will provide additional enzyme evolution services to Merck at our laboratories in Redwood City. The up-front license fee of $5.0 million is being recognized ratably over a two -year period. We recognized license fees of $0.4 million for the three months ended September 30, 2015, as biocatalyst research and development revenues and had a deferred revenue balance from Merck related to the Merck License Agreement license fees of $4.6 million at September 30, 2015 . Under the Merck License Agreement, we will own any improvements to our protein engineering methods, processes and algorithms that arise and any enzyme technology or process technology that are developed during a technology transfer project, an evolution program or additional services. Merck will own (the "Merck-Owned Technology") (a) any enzyme technology that is developed solely by Merck under the Agreement using the CodeEvolver ® Platform Technology (a "Project Enzyme") and (b) the methods of use of any Project Enzyme or any enzyme developed jointly by Merck and us using the CodeEvolver ® Platform Technology. Merck granted to us a worldwide, non-exclusive, fully paid-up, royalty-free license, with the right to grant sublicenses, to use the Merck-Owned Technology outside of the Merck Exclusive Field. For each API that Merck manufactures using an enzyme developed with the CodeEvolver ® Platform Technology, we will have a right of first refusal to supply Merck with the enzyme used to manufacture the API if Merck outsources the supply of the enzyme. Our right of first refusal applies during the period that begins on the completion of a Phase III clinical trial for the product containing the API and ends five years following regulatory approval for such product. The Merck License Agreement has a term that begins on the Effective Date and continues, unless earlier terminated, until the expiration of all payment obligations under the agreement. Merck may terminate the Merck License Agreement by providing 90 days written notice to us. If Merck exercises this termination right during the Technology Transfer Period, Merck will make a one-term termination payment to us of $8.0 million . We can terminate the Merck License Agreement by providing 30 days written notice to Merck if we determine, pursuant to our contractual audit rights under the agreement, that Merck has repeatedly failed to make required payments to us and/or materially underpaid us an amount due under the Merck License Agreement. In the event the Merck License Agreement is terminated earlier by Merck, or by us due to an uncured material breach by Merck, or if Merck sells or transfers to a third party any Merck business or facility that includes any of our proprietary materials, information or technology, we have the right to conduct an audit of Merck's facilities to confirm that all of our proprietary materials, information and technology have been destroyed. The Merck License Agreement contains indemnification provisions under which Merck and we indemnify each other against certain third party claims. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2015 | |
Cash Equivalents and Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities At September 30, 2015 , securities classified as available-for-sale consisted of the following (in thousands): September 30, 2015 Adjusted Cost Gross Gross Estimated Average (in days) Money market funds (1) $ 11,115 $ — $ — $ 11,115 n/a Common shares of CO 2 Solutions (2) 563 668 — 1,231 n/a Total $ 11,678 $ 668 $ — $ 12,346 (1) Money market funds are classified in cash and cash equivalents on our condensed consolidated balance sheets. (2) Common shares of CO 2 Solutions are classified as marketable securities on our condensed consolidated balance sheets. There were no marketable securities in an unrealized loss position at September 30, 2015 . At December 31, 2014 , securities classified as available-for-sale consisted of the following (in thousands): December 31, 2014 Adjusted Cost Gross Gross Estimated Average (in days) Money market funds (1) $ 14,602 $ — $ — $ 14,602 n/a Common shares of CO 2 Solutions (2) 563 125 — 688 n/a Total $ 15,165 $ 125 $ — $ 15,290 (1) Money market funds are classified in cash and cash equivalents on our condensed consolidated balance sheets. (2) Common shares of CO 2 Solutions are classified in marketable securities on our condensed consolidated balance sheets. There were no marketable securities in an unrealized loss position at December 31, 2014 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Value of Financial Instruments The following table presents the financial instruments that were measured at fair value on a recurring basis at September 30, 2015 by level within the fair value hierarchy (in thousands): September 30, 2015 Level 1 Level 2 Level 3 Total Money market funds $ 11,115 $ — $ — $ 11,115 Common shares of CO 2 Solutions — 1,231 — 1,231 Total $ 11,115 $ 1,231 $ — $ 12,346 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): December 31, 2014 Level 1 Level 2 Level 3 Total Money market funds $ 14,602 $ — $ — $ 14,602 Common shares of CO 2 Solutions — 688 — 688 Total $ 14,602 $ 688 $ — $ 15,290 We estimated the fair value of our investment in 10,000,000 common shares of CO 2 Solutions using the market value of common shares as determined by trading on the TSX Venture Exchange. |
Balance Sheets Details
Balance Sheets Details | 9 Months Ended |
Sep. 30, 2015 | |
Balance Sheets Details [Abstract] | |
Balance Sheets Details | Balance Sheets Details Inventories Inventories consisted of the following (in thousands): September 30, 2015 December 31, 2014 Raw materials $ 182 $ 84 Work-in-process 11 65 Finished goods 485 1,246 Inventories $ 678 $ 1,395 Property and Equipment, net Property and equipment, net consisted of the following (in thousands): September 30, 2015 December 31, 2014 Laboratory equipment $ 21,354 $ 23,002 Leasehold improvements 9,782 9,773 Computer equipment 3,271 3,262 Office furniture and equipment 1,227 1,227 Construction in progress (1) 151 24 Property and equipment 35,785 37,288 Less: accumulated depreciation and amortization (32,964 ) (31,452 ) Less: impairment of laboratory equipment (2) — (1,841 ) Property and equipment, net $ 2,821 $ 3,995 (1) Construction in progress includes equipment received but not yet placed into service pending installation. (2) We recorded an impairment charge of $1.8 million in the second quarter of 2014, reducing the carrying value of certain laboratory equipment related to our Codexol program to zero . The impairment charge was reflected within research and development expenses on the condensed consolidated statements of operations. Intangible Assets, net Intangible assets, net consisted of the following (in thousands, except weighted average amortization period): September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortization Period (years) Maxygen intellectual property $ 20,244 $ (16,589 ) $ 3,655 $ 20,244 $ (14,058 ) $ 6,186 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 (remaining 3 months) $ 843 2016 2,812 $ 3,655 Goodwill Goodwill had a carrying value of approximately $ 3.2 million at September 30, 2015 and December 31, 2014 . |
Assets Held for Sale and Sale o
Assets Held for Sale and Sale of Former Hungarian Subsidiary | 9 Months Ended |
Sep. 30, 2015 | |
Assets Held for Sale [Abstract] | |
Assets Held for Sale and Sale of Former Hungarian Subsidiary | Assets Held for Sale and Sale of Former Hungarian Subsidiary In the fourth quarter of 2013, we announced that we would begin winding down our CodeXyme ® cellulase enzyme program. As a result of the termination of this research program, we concluded that certain excess research and development equipment, including assets at our Hungarian subsidiary as well as some assets in the United States, were no longer needed and would be sold. On March 13, 2014, we entered into an agreement with Intrexon Corporation to sell 100% of our equity interests in our 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 $1.5 million from the sale. Accordingly, we reduced the carrying value of assets held for sale by $0.8 million and recognized a gain of $0.8 million in connection with the sale which was included in research and development expenses. As part of the purchase, the buyer obtained all of 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. Prior to the sale of our Hungarian subsidiary in the first quarter of 2014, we transferred certain of the subsidiary's equipment to another of our European subsidiaries and incurred a reclaimable VAT liability of approximately $0.4 million . We paid this VAT amount in July 2014 and recorded a receivable, which is reflected in prepaid expenses and other current assets in our condensed consolidated balance sheets at September 30, 2015 and December 31, 2014 . During the second quarter of 2014, we revised our plan to sell certain U.S. research and development equipment. As part of the revised plan, some equipment was returned to operational use. Additionally, we exchanged certain equipment for more suitable, newer equipment and recognized a loss of approximately $0.2 million as part of the exchange. We also decided to expedite the disposal of other held for sale assets by selling these assets through auction which resulted in further impairment charges of $0.6 million for the three months ended June 30, 2014. We disposed of the remaining held for sale equipment in the third quarter of 2014, which resulted in an additional impairment charge of $0.1 million . There were no assets classified as held for sale as of September 30, 2015 and as of December 31, 2014 . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plans In March 2010, our board of directors (the "Board") and stockholders approved the 2010 Equity Incentive Award Plan (the "2010 Plan"), which became effective upon the completion of our initial public offering in April 2010. The number of shares of our common 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 our 2002 Stock Plan (the "2002 Plan") that remained unissued at the time of completion of the initial public offering. 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. The 2010 Plan provides for the grant of incentive stock options, non-statutory stock options, RSUs, RSAs, PSUs, stock appreciation rights, and stock purchase rights to our employees, non-employee directors and consultants. The option exercise price for incentive stock options is at least 100% of the fair value of our 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 our 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 our 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 Restricted Stock Units The compensation committee of the Board has approved grants of 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 of 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 the first quarter of 2015 , we awarded PSUs ("2015 PSUs") based upon the achievement of various weighted performance criteria, including revenue growth, non-GAAP net income growth, new licensing collaborations, and securing a drug development partnership. The 2015 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 our achievement of the performance goals and the recipient's continued service on each vesting date. If the performance goal is achieved at the threshold level, the number of shares issuable in respect of the 2015 PSUs will 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 2015 PSUs will 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 2015 PSUs will be equal to two times the number of 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 2015 PSUs. During the three and nine months ended September 30, 2015 , we evaluated our achievement against the performance criteria for the 2015 PSUs and recognized expense based on the estimated achievement rate. In 2014 we awarded PSUs ("2014 PSUs") based upon the achievement of certain cash flow performance goals. The 2014 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 our achievement of the performance goals and the recipient’s continued service on each vesting date. If the performance goal is achieved at the threshold level, the number of shares issuable in respect of the 2014 PSUs will 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 2014 PSUs will 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 2014 PSUs will be equal to two times the number of 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 2014 PSUs. During the third quarter of 2014, we concluded that it was not probable that the performance objective would be achieved at the target level of 100%, and we reduced stock-based compensation expense to reflect a lower level of estimated achievement. Stock-Based Compensation Expense Stock-based compensation expense is included in the consolidated statements of operations as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Research and development (1) $ 181 $ 227 $ 710 $ 734 Selling, general and administrative 1,042 828 3,049 2,896 Total $ 1,223 $ 1,055 $ 3,759 $ 3,630 (1) Stock-based compensation expense associated with cost of biocatalyst product sales is included in research and development. Amounts were immaterial for all periods presented. The following table presents total stock-based compensation expense by security types included in the condensed consolidated statements of operations for the three and nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Stock options $ 281 $ 247 $ 798 $ 843 RSUs and RSAs 566 722 2,020 2,383 PSUs 376 86 941 404 Total $ 1,223 $ 1,055 $ 3,759 $ 3,630 As of September 30, 2015 , unrecognized stock-based compensation expense, net of expected forfeitures, was $2.0 million related to unvested employee stock options, $2.1 million related to unvested RSUs and RSAs and $0.9 million related to unvested PSUs. Valuation Assumptions The weighted-average assumptions used to estimate the fair value of employee stock options granted were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Expected term (in years) (1) 5.2 6.0 6.0 6.0 Volatility 67 % 68 % 66 % 65 % Risk-free interest rate 1.64 % 1.91 % 1.70 % 1.915 % Dividend yield — % — % — % — % Weighted-average estimated fair value of stock options granted $ 2.31 $ 1.43 $ 2.09 $ 1.20 (1) We have, due to insufficient historical data, used the simplified method to determine the expected term of stock options granted. In the third quarter of 2015, we have applied historical data to calculate an expected term for stock options granted (see Note 2, "Basis of Presentation and Summary of Significant Accounting Policies"). |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Exercise of options For the nine months ended September 30, 2015 and 2014, 128,921 and 136,796 shares were exercised at a weighted-average exercise price of $1.82 and $1.34 per share, respectively, with net cash proceeds of $0.2 million for both periods. Warrants Our outstanding warrants are exercisable for common stock at any time during their respective terms. As of September 30, 2015 , the following warrants remain outstanding: September 30, 2015 Issue Date Shares Subject to Warrants Exercise Price per Share Expiration July 17, 2007 2,384 $ 12.45 February 9, 2016 September 28, 2007 72,727 $ 8.25 September 28, 2017 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases Our headquarters are located in Redwood City, California, where we occupy approximately 107,000 square feet of office and laboratory space in four buildings within the same business park of Metropolitan Life Insurance Company ("Met-Life"). We entered into the initial lease with Met-Life for a portion of this space in 2004 and the lease has been amended multiple 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 Met-Life 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 are amortized on a straight line basis over the term of the lease as a reduction in rent expense. The remaining lease incentive obligation was $1.4 million at September 30, 2015 , 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 make adjustments if our estimates change. In 2014, we entered into a sublease agreement whereby certain changes were made to our 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 correspondingly increased our related estimated cash payments. Accretion expense related to our asset retirement obligations was nominal in each of the three and nine months ended September 30, 2015 and nil in each of the three and nine months ended September 30, 2014 . 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 September 30, 2015 and December 31, 2014 . 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 in connection with the sale of Codexis Laboratories Hungary Kft (see Note 8, "Assets Held for Sale and Sale of Former Hungarian Subsidiary"). Rent expense was $0.9 million and $2.6 million in the three and nine months ended September 30, 2015 , respectively, partially offset by sublease income of $0.2 million and $0.5 million , respectively. Rent expense was $0.9 million and $2.5 million in the three and nine months ended September 30, 2014 , respectively, partially offset by sublease income of $0.1 million and $0.3 million during the respective periods in 2014. Future minimum payments under noncancellable operating leases are as follows at September 30, 2015 (in thousands): Lease payments Years ending December 31, 2015 (3 months remaining) $ 689 2016 2,827 2017 2,677 2018 2,736 2019 and beyond 3,054 Total $ 11,983 Legal Proceedings From time to time we are involved in 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 our consolidated financial position, results of operations or cash flows. Other Contingencies In November 2009, one of our foreign subsidiaries sold intellectual property to Codexis, Inc. 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, we could be obligated to pay an estimated amount of $0.6 million . Indemnifications We are required to recognize a liability for the fair value of any obligations we assume upon the issuance of a guarantee. We have certain agreements with licensors, licensees and collaborators that contain indemnification provisions. In such provisions, we typically agree 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 | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |
Related Party Transactions | Related Party Transactions Exela PharmSci, Inc. We signed a commercialization agreement with Exela in 2007, whereby Exela agreed to pay to us a contractual percentage share of Exela's net profit from the sales of licensed products. Thomas R. Baruch, one of our directors, serves on the board of directors of Exela and is a limited partner in Presidio Partners 2007, L.P., which owns more than 10% of Exela's outstanding capital stock. Consequently, Mr. Baruch has an indirect pecuniary interest in the shares of Exela held by Presidio Partners 2007, L.P. Mr. Baruch is also a limited partner in CMEA Ventures, which owned 7.4% of our common stock until November 10, 2014, at which time the shares were transferred to Presidio Partners 2014, L.P. Mr. Baruch has no direct or indirect pecuniary interest in the shares of our common stock owned by Presidio Partners 2014, L.P. We recognized $ 1.1 million and $4.1 million for the three and nine months ended September 30, 2015 , respectively, and $1.5 million and $5.6 million for the three and nine months ended September 30, 2014 , respectively, shown in the consolidated statement of operations as revenue sharing arrangement. We had receivables of $0.3 million at September 30, 2015 and no receivables at December 31, 2014 from Exela. Alexander A. Karsner Alexander A. Karsner was a member of 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 were nil for the three and nine months ended September 30, 2015 and nil and $60,000 for the three and nine months ended September 30, 2014 , respectively. |
Significant Customer and Geogra
Significant Customer and Geographic Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Significant Customer and Geographic Information | Significant Customer and Geographic Information Significant Customers Customers that each contributed 10% or more of our total revenues were as follows: Percentage of Total Revenues for the Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Customer A 39 % 27 % 34 % 26 % Customer B 40 % * 26 % * Customer C (related party) * 21 % 13 % 27 % * Less than 10% in period presented Of the customers that contributed 10% or more of our total revenues, the following had accounts receivable balances for the periods presented: Percentage of Accounts Receivables at September 30, 2015 December 31, 2014 Customer A 42 % 63 % Customer B 47 % 2 % Customer C (related party) * — % * 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): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenues: United States $ 8,755 $ 4,747 $ 16,516 $ 12,518 Asia India 369 225 519 636 Others 619 658 1,305 1,338 Europe Ireland 160 — 160 2,744 Others 7,498 1,842 11,712 3,864 Other — — 6 16 Total revenues $ 17,401 $ 7,472 $ 30,218 $ 21,116 Identifiable long-lived assets were all in the United States as follows (in thousands): September 30, 2015 December 31, 2014 Long-lived assets United States $ 6,741 $ 10,475 |
Basis of Presentation and Sum21
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the applicable rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2014 . The condensed consolidated balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements at that date, but does not include all disclosures, including notes, required by GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to present fairly our financial position as of September 30, 2015 and results of our operations and comprehensive income (loss) for the three and nine months ended September 30, 2015 and 2014 , and cash flows for the nine months ended September 30, 2015 and 2014 . The interim results are not necessarily indicative of the results for any future interim period or for the entire year. Certain prior period amounts have been reclassified to conform to current period presentation. The unaudited interim condensed consolidated financial statements include Codexis, Inc. and its wholly owned subsidiaries in the United States, Brazil, Hungary (through the sale date of March 13, 2014), India, Mauritius, the Netherlands, and Singapore (dissolved in October 2014). All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. We regularly assess these estimates which primarily affect revenue recognition, accounts receivable, inventories, the valuation of investment securities and marketable securities, assets held for sale, intangible assets, goodwill arising out of business acquisitions, accrued liabilities, stock awards and the valuation allowances associated with deferred tax assets. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements. |
Segment Reporting | Segment Reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our 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. We have 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, we have a single reporting segment. |
Revenue Recognition | Revenue Recognition We recognize revenues from the sale of our biocatalyst products, biocatalyst research and development agreements and a revenue sharing arrangement. 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. We account for revenues from 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. Biocatalyst Product Sales Biocatalyst product sales consist of sales of biocatalyst enzymes, chemical intermediates 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 included in 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 licensees' product sales or cost savings achieved by our 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 revenues 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 revenues from non-refundable, 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 recorded as deferred revenues and recognized over the estimated period of performance. Estimated performance periods 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. 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 revenues from other contingent payments based on the passage of time or when earned as the result of a customer's performance in accordance with contractual terms and when such payments can be reasonably estimated and collectability of such payments is reasonably assured. We recognize revenues 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 revenues, estimates are made using notification of the sale of licensed products from the licensees. Revenue Sharing Arrangement We recognize revenues from a revenue sharing arrangement based upon sales of licensed products by our revenue share partner Exela PharmSci, Inc. ("Exela") (see Note 12, "Related Party Transactions"). We recognize revenues 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 revenues are recognized, resulting in a reduction in biocatalyst product sales revenue. |
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. |
Research and Development Expenses | Research and Development Expenses Research and development expenses consist of costs incurred for internal projects as well as research and development services as mentioned above. 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. Costs to acquire technologies that are utilized in research and development and that have no alternative future use are expensed as incurred. |
Stock-Based Compensation | Stock-Based Compensation We use the Black-Scholes-Merton option pricing model to estimate the fair value of options granted under our equity incentive plans. The Black-Scholes-Merton option pricing model requires the use of assumptions, including the expected term of the award and the expected stock price volatility. We have, due to insufficient historical data, used the "simplified method," as described in Staff Accounting Bulletin No. 107, "Share-Based Payment," to determine the expected life of all stock options granted from the inception of our equity plans through the first half of 2015. We believe we have sufficient historical data to calculate expected terms for stock options granted beginning in the third quarter of 2015. The expected term was based on historical exercise behavior on similar awards, giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. We used 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 options. The expected dividend assumption was based on our 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 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 the 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. |
Foreign Currency Translation | Foreign Currency Translation The United States dollar is the functional currency for our operations outside the United States. Accordingly, nonmonetary assets and liabilities originally acquired or assumed in other currencies are recorded in United States dollars at the exchange rates in effect at the date they were acquired or assumed. Monetary assets and liabilities denominated in other currencies are translated into United States dollars at the exchange rates in effect at the balance sheet date. Translation adjustments are recorded in other expense in the accompanying condensed consolidated statements of operations. Gains and losses realized from non-U.S. dollar transactions, including intercompany balances not considered as permanent investments, denominated in currencies other than an entity's functional currency, are also included in other expense in the accompanying condensed consolidated statements of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with maturity dates of three months or less at the date of purchase to be cash equivalents. Our cash and cash equivalents consist of cash on deposit with banks and money market funds. Most of our cash and cash equivalents are maintained with major financial institutions in North America. Deposits with these financial institutions may exceed the amount of insurance provided on such deposits. |
Inventories | Inventories Inventories are stated at the lower of cost or market value. Cost is determined using a weighted-average approach, assuming full absorption of direct and indirect manufacturing costs, based on our product capacity utilization assumptions. If inventory costs exceed expected market value due to obsolescence or lack of demand, valuation adjustments are recorded for the difference between the cost and the estimated market value. These valuation adjustments are determined based on significant estimates. |
Marketable Securities | Marketable Securities We invest in equity securities and we classify those investments as available-for-sale. These securities are carried at estimated fair value (see Note 5, "Marketable Securities") with unrealized gains and losses included in accumulated other comprehensive income (loss) in stockholders' equity. Available-for-sale equity securities with remaining maturities of greater than one year or which we currently do not intend to sell 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 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 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. |
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. |
Intangible Assets and Impairment of Long-Lived Assets | Intangible Assets Our intangible assets are finite-lived and consist of customer relationships, developed core technology, trade names, and the intellectual property 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 we acquired the assets and, for those assets having finite useful lives, are amortized using the straight-line method over their estimated useful lives. Impairment of Long-Lived Assets Our long-lived assets include property and equipment and intangible assets. We determined that we have 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 our identifiable cash flow generating capacity. Consequently, we do not believe that identification of independent cash flows associated with 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 our condensed consolidated balance sheet as of September 30, 2015 . 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 our 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 our 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 our 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. Our anticipated future cash flows include our estimates of existing or in process product sales, production and operating costs, future capital expenditures, working capital needs, and assumptions regarding the ultimate sale of the Asset Group at the end of the life of the primary asset. The useful life of the Asset Group was based on the estimated useful life of the Core IP, the primary asset at the time of acquisition. There has been no change in the estimated useful life of the Asset Group. Although our cash flow forecasts are based on assumptions that are consistent with our plans, there is significant judgment involved in determining the cash flows attributable to the Asset Group over its estimated remaining useful life. |
Goodwill | Goodwill We determined that we operate in one segment and reporting unit under the criteria in ASC 280, "Segment Reporting." Accordingly, our review of goodwill impairment indicators is performed at the parent level. We review goodwill impairment annually in the fourth quarter of each fiscal year 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 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 our market capitalization as an indicator of fair value. We believe that because our 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 our 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 our 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 our projected future cash flows expected to be generated from our 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 our market capitalization be less than 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 our stock price over a reasonable period and, if appropriate, use an income approach to determine whether the fair value of our 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. |
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 our 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 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 us. 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 our 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 we should experience such a change of ownership, utilization of our 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 August 2014, the FASB issued Accounting Standards Update ("ASU") 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." ASU 2014-15 defines management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and provide related disclosures. ASU 2014-15 is effective for annual reporting periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. The adoption of ASU 2014-15 is not expected to have a material impact on our consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory," which simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price of inventory in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective for public business entities for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. We are currently evaluating the impact of adopting ASU 2015-11 on our condensed consolidated financial statements and related disclosures. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date." This ASU defers the effective date of ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)" for all entities by one year. The 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). ASU 2014-09 as amended by ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The FASB will permit companies to adopt the new standard early, but not before the original effective date of December 15, 2016. We are currently in the process of evaluating the impact of the pending adoption of this standard on our consolidated financial statements and related disclosures. |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net income per share during the three and nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator Net income (loss) $ 5,394 $ (4,562 ) $ (5,528 ) $ (19,416 ) Denominator Weighted average common shares used in computing net income (loss) per share, basic 39,767 38,450 39,340 38,063 Effect of dilutive shares 1,203 — — — Weighted average common shares used in computing net income (loss) per share, diluted 40,970 38,450 39,340 38,063 Net income (loss) per share, basic $ 0.14 $ (0.12 ) $ (0.14 ) $ (0.51 ) Net income (loss) per share, diluted $ 0.13 $ (0.12 ) $ (0.14 ) $ (0.51 ) |
Securities not included in the net loss per common share calculations | The following shares were not considered in the computation of diluted net loss per share (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Shares issuable under Equity Incentive Plan — 6,398 6,121 6,398 Shares issuable upon the conversion of warrants — 75 75 75 Total shares excluded as anti-dilutive — 6,473 6,196 6,473 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Cash Equivalents and Marketable Securities [Abstract] | |
Schedule of cash equivalents and marketable securities | At September 30, 2015 , securities classified as available-for-sale consisted of the following (in thousands): September 30, 2015 Adjusted Cost Gross Gross Estimated Average (in days) Money market funds (1) $ 11,115 $ — $ — $ 11,115 n/a Common shares of CO 2 Solutions (2) 563 668 — 1,231 n/a Total $ 11,678 $ 668 $ — $ 12,346 (1) Money market funds are classified in cash and cash equivalents on our condensed consolidated balance sheets. (2) Common shares of CO 2 Solutions are classified as marketable securities on our condensed consolidated balance sheets. There were no marketable securities in an unrealized loss position at September 30, 2015 . At December 31, 2014 , securities classified as available-for-sale consisted of the following (in thousands): December 31, 2014 Adjusted Cost Gross Gross Estimated Average (in days) Money market funds (1) $ 14,602 $ — $ — $ 14,602 n/a Common shares of CO 2 Solutions (2) 563 125 — 688 n/a Total $ 15,165 $ 125 $ — $ 15,290 (1) Money market funds are classified in cash and cash equivalents on our condensed consolidated balance sheets. (2) Common shares of CO 2 Solutions are classified in marketable securities on our condensed consolidated balance sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |
Summary of financial instruments measured at fair value on a recurring basis | The following table presents the financial instruments that were measured at fair value on a recurring basis at September 30, 2015 by level within the fair value hierarchy (in thousands): September 30, 2015 Level 1 Level 2 Level 3 Total Money market funds $ 11,115 $ — $ — $ 11,115 Common shares of CO 2 Solutions — 1,231 — 1,231 Total $ 11,115 $ 1,231 $ — $ 12,346 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): December 31, 2014 Level 1 Level 2 Level 3 Total Money market funds $ 14,602 $ — $ — $ 14,602 Common shares of CO 2 Solutions — 688 — 688 Total $ 14,602 $ 688 $ — $ 15,290 |
Balance Sheets Details (Tables)
Balance Sheets Details (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Balance Sheets Details [Abstract] | |
Schedule of inventory components | Inventories consisted of the following (in thousands): September 30, 2015 December 31, 2014 Raw materials $ 182 $ 84 Work-in-process 11 65 Finished goods 485 1,246 Inventories $ 678 $ 1,395 |
Schedule of property and equipment, net | Property and equipment, net consisted of the following (in thousands): September 30, 2015 December 31, 2014 Laboratory equipment $ 21,354 $ 23,002 Leasehold improvements 9,782 9,773 Computer equipment 3,271 3,262 Office furniture and equipment 1,227 1,227 Construction in progress (1) 151 24 Property and equipment 35,785 37,288 Less: accumulated depreciation and amortization (32,964 ) (31,452 ) Less: impairment of laboratory equipment (2) — (1,841 ) Property and equipment, net $ 2,821 $ 3,995 (1) Construction in progress includes equipment received but not yet placed into service pending installation. (2) We recorded an impairment charge of $1.8 million in the second quarter of 2014, reducing the carrying value of certain laboratory equipment related to our Codexol program to zero . The impairment charge was reflected within research and development expenses on the condensed consolidated statements of operations. |
Schedule of Finite-Lived Intangible Assets | Intangible assets, net consisted of the following (in thousands, except weighted average amortization period): September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortization Period (years) Maxygen intellectual property $ 20,244 $ (16,589 ) $ 3,655 $ 20,244 $ (14,058 ) $ 6,186 6 |
Schedule of Finite-Lived Intangible Assets, 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 (remaining 3 months) $ 843 2016 2,812 $ 3,655 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Research and development (1) $ 181 $ 227 $ 710 $ 734 Selling, general and administrative 1,042 828 3,049 2,896 Total $ 1,223 $ 1,055 $ 3,759 $ 3,630 (1) Stock-based compensation expense associated with cost of biocatalyst product sales is included in research and development. Amounts were immaterial for all periods presented. |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table presents total stock-based compensation expense by security types included in the condensed consolidated statements of operations for the three and nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Stock options $ 281 $ 247 $ 798 $ 843 RSUs and RSAs 566 722 2,020 2,383 PSUs 376 86 941 404 Total $ 1,223 $ 1,055 $ 3,759 $ 3,630 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted-average assumptions used to estimate the fair value of employee stock options granted were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Expected term (in years) (1) 5.2 6.0 6.0 6.0 Volatility 67 % 68 % 66 % 65 % Risk-free interest rate 1.64 % 1.91 % 1.70 % 1.915 % Dividend yield — % — % — % — % Weighted-average estimated fair value of stock options granted $ 2.31 $ 1.43 $ 2.09 $ 1.20 |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of common stock warrants issued and outstanding | As of September 30, 2015 , the following warrants remain outstanding: September 30, 2015 Issue Date Shares Subject to Warrants Exercise Price per Share Expiration July 17, 2007 2,384 $ 12.45 February 9, 2016 September 28, 2007 72,727 $ 8.25 September 28, 2017 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum payments under non-cancellable operating leases | Future minimum payments under noncancellable operating leases are as follows at September 30, 2015 (in thousands): Lease payments Years ending December 31, 2015 (3 months remaining) $ 689 2016 2,827 2017 2,677 2018 2,736 2019 and beyond 3,054 Total $ 11,983 |
Significant Customer and Geog29
Significant Customer and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | Customers that each contributed 10% or more of our total revenues were as follows: Percentage of Total Revenues for the Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Customer A 39 % 27 % 34 % 26 % Customer B 40 % * 26 % * Customer C (related party) * 21 % 13 % 27 % * Less than 10% in period presented Of the customers that contributed 10% or more of our total revenues, the following had accounts receivable balances for the periods presented: Percentage of Accounts Receivables at September 30, 2015 December 31, 2014 Customer A 42 % 63 % Customer B 47 % 2 % Customer C (related party) * — % * 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): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenues: United States $ 8,755 $ 4,747 $ 16,516 $ 12,518 Asia India 369 225 519 636 Others 619 658 1,305 1,338 Europe Ireland 160 — 160 2,744 Others 7,498 1,842 11,712 3,864 Other — — 6 16 Total revenues $ 17,401 $ 7,472 $ 30,218 $ 21,116 |
Schedule of long-lived assets by geographical area | Identifiable long-lived assets were all in the United States as follows (in thousands): September 30, 2015 December 31, 2014 Long-lived assets United States $ 6,741 $ 10,475 |
Basis of Presentation and Sum30
Basis of Presentation and Summary of Significant Accounting Policies (Textual) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)operating_segmentreporting_unit | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounting Policies [Abstract] | ||||||
Maturity Date of Highly Liquid Investments | 3 months | |||||
Cash and Cash Equivalents, at Carrying Value | $ 16,963,000 | $ 21,522,000 | $ 16,963,000 | $ 21,522,000 | $ 26,487,000 | $ 22,130,000 |
Cash | 5,900,000 | 5,900,000 | ||||
Money market funds | 11,100,000 | $ 11,100,000 | ||||
Number of Operating Segments | operating_segment | 1 | |||||
Number of Reportable Segments | reporting_unit | 1 | |||||
Goodwill Impairment | $ 0 | |||||
Provision for (benefit from) income taxes | $ 274,000 | $ 253,000 | $ (144,000) | $ (314,000) |
Net Income (Loss) per Share (De
Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income (loss) | $ 5,394 | $ (4,562) | $ (5,528) | $ (19,416) |
Weighted average common shares used in computing net income (loss) per share, basic (shares) | 39,767 | 38,450 | 39,340 | 38,063 |
Effect of dilutive shares (shares) | 1,203 | 0 | 0 | 0 |
Weighted average common shares used in computing net income (loss) per share, diluted (shares) | 40,970 | 38,450 | 39,340 | 38,063 |
Net income (loss) per share, basic (dollars per share) | $ 0.14 | $ (0.12) | $ (0.14) | $ (0.51) |
Net income (loss) per share, diluted (dollars per share) | $ 0.13 | $ (0.12) | $ (0.14) | $ (0.51) |
Total shares excluded as anti-dilutive | 0 | 6,473 | 6,196 | 6,473 |
Stock options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total shares excluded as anti-dilutive | 0 | 6,398 | 6,121 | 6,398 |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total shares excluded as anti-dilutive | 0 | 75 | 75 | 75 |
Collaborative Arrangements (Det
Collaborative Arrangements (Details) - USD ($) | Aug. 03, 2015 | Feb. 01, 2012 | Jul. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
GlaxoSmithKline [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
Proceeds from license fees received | $ 6,000,000 | |||||||
Revenue recognized | $ 6,500,000 | $ 5,000,000 | ||||||
Term of milestone agreement | 3 years | |||||||
Contingent payment, 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 and services revenue | 500,000 | $ 1,500,000 | $ 451,613 | |||||
Deferred Revenue | 3,500,000 | 5,000,000 | 3,500,000 | |||||
Technology Transfer, Collaboration and License Agreement [Member] | Merck [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
Proceeds from license fees received | $ 5,000,000 | |||||||
Revenue recognized | 5,000,000 | |||||||
Contingent payment, completion of milestones and agreement | 8,000,000 | |||||||
Potential royalty revenue | $ 15,000,000 | |||||||
Termination notice period | 90 days | |||||||
License and services revenue | 400,000 | |||||||
Deferred Revenue | 4,600,000 | 4,600,000 | ||||||
Upfront License fee, period for recognition | 2 years | |||||||
Contingent termination revenue | $ 8,000,000 | |||||||
Supply Agreement [Member] | Merck [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
License and services revenue | 500,000 | $ 500,000 | 1,500,000 | $ 1,500,000 | ||||
Deferred Revenue | $ 1,400,000 | $ 900,000 | $ 1,400,000 | |||||
Term of collaborative research and development agreement (years) | 5 years |
Marketable Securities (Componen
Marketable Securities (Components of Cash Equivalents and Marketable Securities) (Details) $ in Thousands | Sep. 30, 2015USD ($)security | Dec. 31, 2014USD ($)security |
Cash Equivalents and Marketable Securities [Line Items] | ||
Adjusted Cost | $ 11,678 | $ 15,165 |
Gross Unrealized Gains | 668 | 125 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 12,346 | $ 15,290 |
Number of Marketable Securities In Unrealized Loss Position | security | 0 | 0 |
Money market funds [Member] | ||
Cash Equivalents and Marketable Securities [Line Items] | ||
Adjusted Cost | $ 11,115 | $ 14,602 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 11,115 | 14,602 |
Common shares of CO2 Solution [Member] | ||
Cash Equivalents and Marketable Securities [Line Items] | ||
Adjusted Cost | 563 | 563 |
Gross Unrealized Gains | 668 | 125 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 1,231 | $ 688 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Financial Instruments Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Summary of financial instruments measured at fair value on a recurring basis | ||
Total financial assets measured at fair value on a recurring basis | $ 12,346 | $ 15,290 |
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 | 11,115 | 14,602 |
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 | 1,231 | 688 |
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 | 11,115 | 14,602 |
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 | 11,115 | 14,602 |
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 |
Common shares of CO2 Solution [Member] | ||
Summary of financial instruments measured at fair value on a recurring basis | ||
Total financial assets measured at fair value on a recurring basis | 1,231 | 688 |
Common shares of CO2 Solution [Member] | Level 1 [Member] | ||
Summary of financial instruments measured at fair value on a recurring basis | ||
Total financial assets measured at fair value on a recurring basis | 0 | 0 |
Common shares of CO2 Solution [Member] | Level 2 [Member] | ||
Summary of financial instruments measured at fair value on a recurring basis | ||
Total financial assets measured at fair value on a recurring basis | 688 | |
Common shares of CO2 Solution [Member] | Level 3 [Member] | ||
Summary of financial instruments measured at fair value on a recurring basis | ||
Total financial assets measured at fair value on a recurring basis | $ 0 | $ 0 |
Balance Sheets Details (Invento
Balance Sheets Details (Inventory) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Inventory Components | ||
Raw materials | $ 182 | $ 84 |
Work-in-process | 11 | 65 |
Finished goods | 485 | 1,246 |
Inventories | $ 678 | $ 1,395 |
Balance Sheets Details (Propert
Balance Sheets Details (Property and Equipment, net) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 35,785,000 | $ 37,288,000 | ||
Less: accumulated depreciation and amortization | (32,964,000) | (31,452,000) | ||
Less: impairment of laboratory equipment | $ (1,800,000) | 0 | $ (1,841,000) | (1,841,000) |
Property and equipment, net | 2,821,000 | 3,995,000 | ||
Laboratory equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 21,354,000 | 23,002,000 | ||
Property and equipment, net | $ 0 | |||
Leasehold Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 9,782,000 | 9,773,000 | ||
Computer equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 3,271,000 | 3,262,000 | ||
Office furniture and equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 1,227,000 | 1,227,000 | ||
Construction in Progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 151,000 | $ 24,000 |
Balance Sheets Details (Intangi
Balance Sheets Details (Intangible Assets, net) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 3,655 | |
2015 (remaining 6 months) | 843 | |
2,016 | 2,812 | |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 20,244 | $ 20,244 |
Accumulated Amortization | (16,589) | (14,058) |
Net Carrying Amount | $ 3,655 | $ 6,186 |
Amortization Period | 6 years |
Balance Sheets Details (Goodwil
Balance Sheets Details (Goodwill) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Balance Sheets Details [Abstract] | ||
Goodwill | $ 3,241 | $ 3,241 |
Assets Held for Sale and Sale39
Assets Held for Sale and Sale of Former Hungarian Subsidiary (Textual) (Details) - USD ($) $ in Thousands | Mar. 13, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Assets Held for Sale [Abstract] | |||||
Proceeds from sale of subsidiary | $ 1,500 | ||||
Assets sold | 800 | ||||
Gain (loss) on disposal of property and equipment | $ 800 | $ (200) | $ 5 | $ 115 | |
VAT liability | $ 400 | ||||
Impairment of long-lived assets to be disposed of | $ 100 | $ 600 |
Stock-Based Compensation (Textu
Stock-Based Compensation (Textual) (Details) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015USD ($) | Dec. 31, 2014 | Mar. 31, 2010shares | |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 2 | ||
Percent of Voting Interests | 10.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock Above Minimum Threshold, Percent | 110.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Stock options [Member] | One Year Vesting Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||
Stock options [Member] | Monthly, Three Year Vesting Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 75.00% | ||
Incentive Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 100.00% | ||
Non-Statutory Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | ||
Restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 2.1 | ||
Restricted stock units [Member] | Monthly, Three Year Vesting Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.00% | ||
Restricted stock units [Member] | Annually, Three Year Vesting Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Restricted stock units [Member] | Annually, Four Year Vesting Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Awards, Threshold Level, Number of Shares, Multiplier | 0.5 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Awards, Superior Level, Number of Shares, Multiplier | 2 | ||
Performance Shares [Member] | Annually, Two Year Vesting Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | ||
Performance stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 0.9 | ||
2010 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for future issuance (shares) | shares | 1,100,000 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of stock-based compensation expense | ||||
Stock-based compensation | $ 1,223 | $ 1,055 | $ 3,759 | $ 3,630 |
Stock options [Member] | ||||
Schedule of stock-based compensation expense | ||||
Stock-based compensation | 281 | 247 | 798 | 843 |
Restricted stock units [Member] | ||||
Schedule of stock-based compensation expense | ||||
Stock-based compensation | 566 | 722 | 2,020 | 2,383 |
Performance stock units [Member] | ||||
Schedule of stock-based compensation expense | ||||
Stock-based compensation | 376 | 86 | 941 | 404 |
Research and development [Member] | ||||
Schedule of stock-based compensation expense | ||||
Stock-based compensation | 181 | 227 | 710 | 734 |
Selling, general and administrative [Member] | ||||
Schedule of stock-based compensation expense | ||||
Stock-based compensation | $ 1,042 | $ 828 | $ 3,049 | $ 2,896 |
Stock-Based Compensation (Valua
Stock-Based Compensation (Valuation Assumptions) (Details) - Stock options [Member] - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) (1) | 5 years 2 months | 6 years | 6 years | 6 years |
Volatility | 67.00% | 68.00% | 66.00% | 65.00% |
Risk-free interest rate | 1.64% | 1.91% | 1.70% | 1.915% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted-average estimated fair value of stock options granted | $ 2.31 | $ 1.43 | $ 2.09 | $ 1.20 |
Capital Stock (Textual) (Detail
Capital Stock (Textual) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Equity [Abstract] | ||
Stock options exercised | 128,921 | 136,796 |
Weighted average exercise price of stock options exercised | $ 1.82 | $ 1.34 |
Proceeds from exercises of stock options | $ 235 | $ 180 |
Capital Stock (Warrants) (Detai
Capital Stock (Warrants) (Details) | Sep. 30, 2015$ / sharesshares |
Warrants Issued on July 17, 2007 and Expiring on February 9, 2016 [Member] | |
Class of Warrant or Right [Line Items] | |
Shares Subject to Warrants | shares | 2,384 |
Exercise Price per Share | $ 12.45 |
Warrants Issued on September 28, 2007 and Expiring on September 28, 2017 [Member] | |
Class of Warrant or Right [Line Items] | |
Shares Subject to Warrants | shares | 72,727 |
Exercise Price per Share | $ 8.25 |
Commitments and Contingencies45
Commitments and Contingencies (Textual) (Details) ft² in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | |||
Sep. 30, 2015USD ($)ft² | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)ft² | Sep. 30, 2014USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2014USD ($) | |
Commitments and Contingencies [Line Items] | |||||||
Incentive from Lessor | $ 1,400,000 | $ 1,400,000 | |||||
Asset retirement obligations | $ 300,000 | ||||||
Accretion expense | $ 0 | $ 0 | |||||
Operating Leases, Rent Expense | 900,000 | 900,000 | 2,600,000 | 2,500,000 | |||
Operating Leases, Rent Expense, Sublease Rentals | 200,000 | $ 100,000 | 500,000 | $ 300,000 | |||
Estimated obligation payable | 600,000 | 600,000 | |||||
Fifth Amendment [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Payments for Capital Improvements | $ 3,600,000 | ||||||
Tenant Reimbursements | $ 3,100,000 | ||||||
Sixth Amendment [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Letters of credit | $ 700,000 | $ 700,000 | $ 700,000 | ||||
Headquarters, Redwood City [Member] | Fifth Amendment [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Lease area space occupancy (square feet) | ft² | 107 | 107 | |||||
Chesapeake Space [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Expiration date of lease | Jan. 31, 2017 | ||||||
Penobscot Space, Building 2 Space, and Saginaw Space [Member] | Fifth Amendment [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Expiration date of lease | Jan. 31, 2020 |
Commitments and Contingencies46
Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Future minimum payments under non-cancellable operating leases | |
Lease payments, 3 months ending December 31, 2015 | $ 689 |
Lease payments, Year ending December 31, 2016 | 2,827 |
Lease payments, Year ending December 31, 2017 | 2,677 |
Lease payments, Year ending December 31, 2018 | 2,736 |
Lease payments, Year ending December 31, 2019 and beyond | 3,054 |
Lease payments, Total | $ 11,983 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||||
Revenue sharing arrangement | $ 1,066,000 | $ 1,546,000 | $ 4,056,000 | $ 5,617,000 | |
Exela PharmaSci, Inc [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts Receivable, Related Parties | $ 300,000 | 300,000 | $ 0 | ||
Director [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0 | $ 0 | $ 60,000 | ||
Parent Company [Member] | CMEA Ventures [Member] | Affiliated Entity [Member] | |||||
Related Party Transaction [Line Items] | |||||
Investment, Ownership Percentage | 7.40% | 7.40% | |||
Exela PharmaSci, Inc [Member] | Presidio Partners 2007, L.P. [Member] | Affiliated Entity [Member] | |||||
Related Party Transaction [Line Items] | |||||
Investment, Ownership Percentage | 10.00% | 10.00% |
Significant Customer and Geog48
Significant Customer and Geographic Information (Concentration Risk) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Customer Concentration Risk [Member] | Customer A [Member] | Sales [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 39.00% | 27.00% | 34.00% | 26.00% | |
Customer Concentration Risk [Member] | Customer B (related party) [Member] | Sales [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 40.00% | 26.00% | |||
Customer Concentration Risk [Member] | Customer C [Member] | Sales [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 21.00% | 13.00% | 27.00% | ||
Credit Concentration Risk [Member] | Customer A [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 42.00% | 63.00% | |||
Credit Concentration Risk [Member] | Customer B (related party) [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 47.00% | 2.00% | |||
Credit Concentration Risk [Member] | Customer C [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 0.00% |
Significant Customer and Geog49
Significant Customer and Geographic Information (Revenues by Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of revenues by geographical area | ||||
Total revenues | $ 17,401 | $ 7,472 | $ 30,218 | $ 21,116 |
United States [Member] | ||||
Schedule of revenues by geographical area | ||||
Total revenues | 8,755 | 4,747 | 16,516 | 12,518 |
India [Member] | ||||
Schedule of revenues by geographical area | ||||
Total revenues | 369 | 225 | 519 | 636 |
Other Asian Countries [Member] | ||||
Schedule of revenues by geographical area | ||||
Total revenues | 619 | 658 | 1,305 | 1,338 |
Ireland [Member] | ||||
Schedule of revenues by geographical area | ||||
Total revenues | 160 | 0 | 160 | 2,744 |
Other European Countries [Member] | ||||
Schedule of revenues by geographical area | ||||
Total revenues | 7,498 | 1,842 | 11,712 | 3,864 |
Other Countries [Member] | ||||
Schedule of revenues by geographical area | ||||
Total revenues | $ 0 | $ 0 | $ 6 | $ 16 |
Significant Customer and Geog50
Significant Customer and Geographic Information (Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
United States [Member] | ||
Schedule of long-lived assets by geographical area | ||
Long-lived assets | $ 6,741 | $ 10,475 |