Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 20, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity Central Index Key | 0001271214 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Registrant Name | INTERSECT ENT, INC. | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 32,297,782 | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Local Phone Number | 641-2100 | ||
City Area Code | 650 | ||
Entity Address, Postal Zip Code | 94025 | ||
Entity Address, City or Town | Menlo Park | ||
Entity Tax Identification Number | 20-0280837 | ||
Entity Address, Address Line One | 1555 Adams Drive | ||
Entity File Number | 001-36545 | ||
Trading Symbol | XENT | ||
Security Exchange Name | NASDAQ | ||
Title of 12(b) Security | Common Stock | ||
Entity Interactive Data Current | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Address, State or Province | CA | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 700,453,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 20,652 | $ 9,464 |
Short-term investments | 69,986 | 91,309 |
Accounts receivable, net | 19,113 | 19,616 |
Inventories, net | 17,000 | 11,586 |
Prepaid expenses and other current assets | 2,300 | 2,695 |
Total current assets | 129,051 | 134,670 |
Property and equipment, net | 6,312 | 5,878 |
Operating lease right-of-use assets | 11,980 | 0 |
Other non-current assets | 559 | 413 |
Total assets | 147,902 | 140,961 |
Current liabilities: | ||
Accounts payable | 4,056 | 6,202 |
Accrued compensation | 12,717 | 12,281 |
Other current liabilities | 2,163 | 1,250 |
Total current liabilities | 18,936 | 19,733 |
Operating lease liabilities | 10,886 | 0 |
Other non-current liabilities | 22 | 234 |
Total liabilities | 29,844 | 19,967 |
Stockholders' equity: | ||
Common stock, $0.001 par value; Authorized shares: 150,000 at December 31, 2019 and 2018; Issued and outstanding shares: 32,235 at December 31, 2019 and 30,745 at 2018 | 32 | 31 |
Additional paid-in capital | 348,729 | 308,766 |
Accumulated other comprehensive income (loss) | 53 | (41) |
Accumulated deficit | (230,756) | (187,762) |
Total stockholders' equity | 118,058 | 120,994 |
Total liabilities and stockholders' equity | $ 147,902 | $ 140,961 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 32,235,000 | 30,745,000 |
Common stock, shares outstanding | 32,235,000 | 30,745,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 109,142 | $ 108,472 | $ 96,301 |
Cost of sales | 21,773 | 22,613 | 15,499 |
Gross profit | 87,369 | 85,859 | 80,802 |
Operating expenses: | |||
Selling, general and administrative | 108,480 | 91,603 | 80,045 |
Research and development | 24,283 | 19,262 | 18,360 |
Total operating expenses | 132,763 | 110,865 | 98,405 |
Loss from operations | (45,394) | (25,006) | (17,603) |
Interest income and other, net | 2,400 | 2,084 | 1,240 |
Net loss | (42,994) | (22,922) | (16,363) |
Other comprehensive income: | |||
Unrealized (loss) gain on short-term investments, net | 94 | 51 | (55) |
Comprehensive loss | $ (42,900) | $ (22,871) | $ (16,418) |
Net loss per share, basic and diluted | $ (1.37) | $ (0.76) | $ (0.56) |
Weighted average common shares used to compute net loss per share, basic and diluted | 31,388 | 30,313 | 29,119 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Beginning balance, Value at Dec. 31, 2016 | $ 114,397 | $ 29 | $ 262,882 | $ (37) | $ (148,477) |
Beginning balance, Shares at Dec. 31, 2016 | 28,673,000 | ||||
Issuance of common stock and exercise of stock options, Value | 9,420 | $ 1 | 9,419 | ||
Issuance of common stock and exercise of stock options, Shares | 1,005,000 | ||||
Stock-based compensation expense | 9,820 | 9,820 | |||
Unrealized gain (loss) on short-term investments | (55) | (55) | |||
Net loss | (16,363) | (16,363) | |||
Ending balance, Value at Dec. 31, 2017 | 117,219 | $ 30 | 282,121 | (92) | (164,840) |
Ending balance, Shares at Dec. 31, 2017 | 29,678,000 | ||||
Issuance of common stock and exercise of stock options, Value | 12,821 | $ 1 | 12,820 | ||
Issuance of common stock and exercise of stock options, Shares | 1,067,000 | ||||
Stock-based compensation expense | 13,825 | 13,825 | |||
Unrealized gain (loss) on short-term investments | 51 | 51 | |||
Net loss | (22,922) | (22,922) | |||
Ending balance, Value at Dec. 31, 2018 | 120,994 | $ 31 | 308,766 | (41) | (187,762) |
Ending balance, Shares at Dec. 31, 2018 | 30,745,000 | ||||
Issuance of common stock and exercise of stock options, Value | 19,548 | $ 1 | 19,547 | ||
Issuance of common stock and exercise of stock options, Shares | 1,490,000 | ||||
Stock-based compensation expense | 20,416 | 20,416 | |||
Unrealized gain (loss) on short-term investments | 94 | 94 | |||
Net loss | (42,994) | (42,994) | |||
Ending balance, Value at Dec. 31, 2019 | $ 118,058 | $ 32 | $ 348,729 | $ 53 | $ (230,756) |
Ending balance, Shares at Dec. 31, 2019 | 32,235,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||
Net loss | $ (42,994) | $ (22,922) | $ (16,363) |
Adjustments to reconcile net loss to cash used in operating activities: | |||
Depreciation and amortization | 2,667 | 1,884 | 1,464 |
Amortization of right-of-use assets | 1,234 | ||
Stock-based compensation expense | 20,149 | 13,233 | 9,820 |
Amortization of net investment discount | (1,201) | (889) | 19 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 503 | (3,027) | (2,168) |
Inventories, net | (5,148) | (2,520) | (2,861) |
Prepaid expenses and other assets | (14) | (476) | (914) |
Accounts payable | (1,236) | 2,086 | 203 |
Accrued compensation | 437 | (871) | 3,000 |
Other liabilities | (1,648) | (338) | (241) |
Net cash used in operating activities | (27,251) | (13,840) | (8,041) |
Investing activities: | |||
Purchases of short-term investments | (110,267) | (130,501) | (116,622) |
Maturities of short-term investments | 132,885 | 122,615 | 128,151 |
Purchases of property and equipment | (3,727) | (2,116) | (2,281) |
Net cash provided by (used in) investing activities | 18,891 | (10,002) | 9,248 |
Financing activities: | |||
Proceeds from issuance of common stock and exercise of stock options | 19,548 | 13,469 | 8,771 |
Net cash provided by financing activities | 19,548 | 13,469 | 8,771 |
Net increase (decrease) in cash and cash equivalents | 11,188 | (10,373) | 9,978 |
Cash and cash equivalents: | |||
Beginning of the period | 9,464 | 19,837 | 9,859 |
End of the period | 20,652 | 9,464 | 19,837 |
Non-cash investing activities: | |||
Right-of-use asset obtained in exchange for lease obligations | 117 | ||
Right-of-use asset remeasurement subsequent to lease extension | 11,525 | ||
Property and equipment included in accounts payable | $ 104 | $ 861 | $ 146 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization Description of Business Intersect ENT, Inc. (the “Company”) is incorporated in the state of Delaware and its facilities are located in Menlo Park, California. The Company is a commercial drug delivery company transforming care for patients with ear, nose and throat (“ENT”) conditions. The Company’s U.S. Food and Drug Administration (“FDA”) approved products are steroid releasing implants designed to treat patients suffering from chronic sinusitis who are managed by ENT physicians. These products include the PROPEL ® ® ® ® ® |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Preparation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). These consolidated financial statements include the accounts of the Company and its consolidated subsidiary. All intercompany balances and transactions have been eliminated in consolidation. Functional Currency The functional currency of the Company’s wholly-owned subsidiary Intersect ENT GmbH, which the Company established in June 2018, is the U.S. dollar. Transaction gains and losses are included in interest income and other, net, on the Company’s consolidated statements of operations. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements. Management uses significant judgment when making estimates related to its revenue related allowances, inventory, common stock valuation and related stock-based compensation, leases as well as certain accrued liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid securities, readily convertible to cash, that mature within 90 days or less from the date of purchase to be cash equivalents. Short-term Investments Short-term investments, which are classified as available-for-sale, Fair Value of Financial Instruments The Company measures certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents and short-term investments . Level 1 — Observable inputs such as quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Other inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Level 3 — Unobservable inputs that are supported by little or no market activities, which would require the Company to develop its own assumptions. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following is a summary of cash, cash equivalents and short-term investments, by type of instrument measured at fair value on a recurring basis (in thousands): December 31, 2019 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 11,885 $ — $ — $ 11,885 $ 4,168 $ — $ — $ 4,168 Money market funds 8,767 — — 8,767 2,308 — — 2,308 Corporate debt securities — 50,169 — 50,169 — 45,165 — 45,165 Commercial paper — 19,817 — 19,817 — 49,132 — 49,132 $ $ 69,986 $ — $ 90,638 $ 6,476 $ 94,297 $ — $ 100,773 Reported as: Cash and cash equivalents $ 20,652 $ 9,464 Short-term investments 69,986 91,309 $ 90,638 $ 100,773 The fair value of marketable securities classified within Level 2 is based upon observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, two-sided Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash equivalents, short-term investments and accounts receivable. The Company believes that the credit risk in its accounts receivable is mitigated by its credit evaluation process, relatively short collection terms and diversity of its customer base. The Company generally does not require collateral and losses on accounts receivable have historically been within management’s expectations. The Company’s investment policy limits investments to certain types of debt securities issued by the U.S. government, its agencies, and institutions with investment-grade credit ratings, as well as corporate debt or commercial paper issued by the highest quality financial and non-financial Allowance for Doubtful Accounts The Company provides for uncollectible accounts receivable by recording an allowance for doubtful accounts for balances deemed uncollectible. The Company evaluates the collectability of its accounts receivable based on known collection risks and historical experience. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations to the Company (e.g., bankruptcy filings, substantial downgrading of credit ratings), the Company records a specific allowance for bad debts against amounts due to reduce the carrying amount of accounts receivable to the amount it reasonably believes will be collected. The Company has not experienced any significant collection issues. Inventories Inventor ies are first-in, first-out Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the respective assets, generally three Impairment of Long-lived Assets Long-lived assets consist primarily of property and equipment and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require that a long-lived asset be tested for possible impairment, the Company compares the undiscounted cash flows expected to be generated by the asset group to the carrying amount of the asset group. If the carrying amount of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. The Company determines fair value using the income approach based on the present value of expected future cash flows or other appropriate measures of estimated fair value. The Company’s cash flow assumptions consider historical and forecasted revenue and operating costs and other relevant factors. Since inception, the Company has not recorded impairment charges on its long-lived assets. Leases For agreements with a term of more than twelve months, the Company determines if an agreement is a lease at inception. Operating lease liabilities represent an obligation to make lease payments arising from the lease agreement. Operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the remaining lease term. In determining the present value of lease payments, the Company estimates its incremental borrowing rate as the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term, of an amount equal to the lease payments in a similar economic environment. Operating lease liabilities are included in other current and non-current Right-of-use non-current Revenue Recognition T The Company’s typical payment terms are between approximately 30 to 150 days. The PROPEL family of products are regulated by the FDA as medical devices. The Company recognizes revenue through sales of its PROPEL family of products to hospitals and ambulatory surgery centers located almost entirely in the United States when control of the product is transferred to the customer, typically upon shipment of goods to the customer, satisfying the Company’s only performance obligation. The FDA has approved SINUVA as a pharmaceutical product and it is therefore regulated as such. The Company sells SINUVA to a limited number of specialty pharmacies and specialty distributors in the United States, (“Resellers”). These Resellers subsequently sell SINUVA to health care providers. Revenue from SINUVA sales are recognized when control of the product is transferred to the Resellers, typically upon receipt of goods by the Reseller, satisfying the Company’s only performance obligation. The Company recognizes Reseller fees, prompt pay discounts, product sales discounts, rebates, returns and other allowances as a reduction of revenue in the same period the related revenue is recognized. In addition to the agreements with the Resellers, the Company enters into arrangements with governmental agencies that result in rebates, chargebacks and discounts with respect to the purchase of SINUVA. These amounts may include Medicaid and Tricare rebates, chargebacks related to Federal Supply Schedule of the General Services Administration, Distribution and Pricing Agreement with the Department of Defense and 340B of the Public Health Service Act as well as other allowances that may be offered within contracts between the Company and its direct or indirect customers relating to the Company’s sales of SINUVA, collectively referred to as “Discounts and Rebates.” Discounts and Rebates are based on amounts owed or expected to be owed on the related sales. These estimates take into consideration the Company’s historical experience, the remaining shelf life of the product, current contractual and statutory requirements, specific known market events and trends and industry data. If actual results in the future vary from the Company’s estimates, the Company will adjust these estimates, which would affect revenue and earnings in the period such variances become known. In the balance sheet, such amounts are generally classified as reductions of accounts receivable if the amount is payable to the Resellers, or a current liability if the amount is payable to a party other than the Reseller. Cost of Sales Cost of sales consists primarily of manufacturing overhead costs, material costs and direct labor. A significant portion of the Company’s cost of sales currently consists of manufacturing overhead costs. These overhead costs include the cost of quality assurance, material procurement, inventory control, facilities, information technology, equipment and operations supervision and management. Cost of sales also includes depreciation expense for production equipment and certain direct costs such as shipping costs. Research and Development Research and development expenses consist primarily of product development, clinical and regulatory affairs, consulting services and other costs associated with products and technologies in development. These expenses include employee compensation, stock-based compensation, supplies, quality assurance and related travel and allocated facilities and information technology expenses. Clinical expenses include clinical trial design, clinical site reimbursement, data management and travel expenses, and the cost of manufacturing products for clinical trials. Stock-based Compensation The Company maintains equity incentive plans to provide long-term incentives for employees and members of the board of directors. The plans allow for the issuance of non-statutory non-statutory non-employee The Company is required to determine the fair value of equity incentive awards and recognize compensation expense for all equity incentive awards made to employees and directors, including employee stock options and restricted stock units. Stock-based compensation expense is recognized over the requisite service period in the statements of operations and comprehensive loss. The Company uses the straight-line method for expense attribution and has elected to account for forfeitures when they occur. The valuation model used for calculating the fair value of awards for stock-based compensation expense, except for market-based awards, is the Black-Scholes option-pricing model (the “Black-Scholes model”). For market-based awards, the Monte Carlo simulation model (the “Monte Carlo simulation”) is used. Both the Black-Scholes model and Monte Carlo simulation requires the Company to make assumptions and judgments about the variables used in the calculation, including the expected term (weighted average period of time that the awards granted are expected to be outstanding), the volatility of the Company’s common stock and an assumed risk-free interest rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option. Advertising Expenses The Company expenses the costs of advertising Income Taxes The Company accounts for income taxes under the liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. Valuation allowances against deferred tax assets are established when necessary to reduce deferred tax assets to the amounts expected to be realized. Currently, the Company has recorded a full valuation allowance against its deferred tax assets and there is no provision for income taxes, as the Company has incurred operating losses to-date. Net Loss per Share Basic net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock and common stock equivalent shares from dilutive stock options, employee stock purchases and restricted stock units outstanding during the period. Because the Company has reported a net loss for all periods presented, diluted net loss per share is the same as basic net loss per share for those periods as all potentially dilutive securities were antidilutive in those periods. The following potentially dilutive securities outstanding have been excluded from the computations of weighted average shares outstanding because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares, in thousands): Fiscal Years Ended December 31, 2019 2018 2017 Common stock options 3,209 3,688 3,788 Market-based performance stock options 427 — — Restricted stock units 511 350 275 Market-based performance stock units 89 — — Employee stock purchase plan shares 70 74 190 4,306 4,112 4,253 Comprehensive Loss Comprehensive loss consists of net loss and changes in unrealized gains and losses on short-term investments . Segment, Geographical and Customer Concentration The Company has one nited States. No single customer accounted for more than 10% of revenue during the years ended December 31, 2019, 2018 and 2017, and no single customer accounted for more than 10% of accounts receivable at December 31, 2019 and 2018. Recent Accounting Pronouncements In July 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-11, Leases (Topic 842): Targeted Improvements 2018-11”). 2018-11 2016-2, Leases: Amendments to the FASB Accounting Standards Codification 2016-2”), 2018-11, 2016-2, 2016-2 Leases, right-of-use no Leases In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments 2016-13”) . 2016-13 available-for-sale 2016-13 2016-13 |
Composition of Certain Financia
Composition of Certain Financial Statement Items | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Financial Statement Items | 3. Composition of Certain Financial Statement Items Accounts Receivable, net (in thousands): December 31, 2019 2018 Accounts receivable $ 19,244 $ 19,696 Allowance for doubtful accounts (131 ) (80 ) $ $ Inventories, net (in thousands): December 31, 2019 2018 Raw materials $ 2,830 $ Work-in-process 283 368 Finished goods 13,887 9,346 $ $ Capitalized stock-based compensation expense of $0.9 million and $0.6 million w as December respectively Property and Equipment, net (in thousands): December 31, 2019 2018 Computer equipment and software $ 2,026 $ 1,571 Furniture and office equipment 1,536 1,260 Laboratory equipment 7,972 7,087 Leasehold improvements 3,367 2,118 14,901 12,036 Less: accumulated depreciation and amortization (8,589 ) (6,158 ) $ 6,312 $ 5,878 Revenue (in thousands): December 31, 2019 2018 2017 PROPEL family of products $ 104,657 $ 105,711 $ 96,301 SINUVA 4,485 2,761 — $ 109,142 $ 108,472 $ 96,301 |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-term Investments | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Short-term Investments | 4. Cash, Cash Equivalents and Short-term Investments The following is a summary of cash, cash equivalents and short-term investments, by type of instrument (in thousands): December 31, 2019 2018 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Cost Gains Losses Fair Value Cost Gains Losses Fair Value Cash $ $ — $ — $ $ 4,168 $ — $ — $ 4,168 Money market funds 8,767 — — 8,767 2,308 — — 2,308 Corporate debt securities 50,137 33 (1 ) 50,169 45,177 5 (17 ) 45,165 Commercial paper 19,796 21 — 19,817 49,161 — (29 ) 49,132 $ 90,585 $ 54 $ (1 ) $ 90,638 $ $ 5 $ (46 ) $ Reported as: Cash and cash equivalents $ 20,652 $ 9,464 Short-term investments 69,986 91,309 $ 90,638 $ 100,773 As of December 31, 2019 and 2018, the Company had no investments with a contractual maturity of greater than one year. Based on an evaluation of securities that have been in a loss position, the Company did not recognize any other-than-temporary impairment charges during the years ended December 31, 2019, 2018 and 2017. The Company considered various factors which included a credit and liquidity assessment of the underlying securities and the Company’s intent and ability to hold the underlying securities until the estimated date of recovery of its amortized cost. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 5. Leases As of December 31, 2019, the Company has two ies s. The lease of the Company’s headquarters was originally entered into in March 2012 (the “Original Lease”). In December 2014, the operating lease agreement was amended (the “First Amendment”) for an additional 17,900 square feet for a total of 50,400 square feet and the expiration was extended to May 31, 2020. In December 2019, the Company entered into a second amendment (the “Second Amendment”) which extended the term of the Original Lease to September 2024 In March 2019, the Company entered into an additional operating lease agreement for 10,200 square feet of warehouse space which was originally to expire in May 2020 Right-of-use December 31, 2019 Upon the adoption of Topic 842 $ 1,572 Additional warehouse operating lease 117 Extension of operating leases 11,525 Less: right-of-use asset (1,234 ) $ 11,980 Operating lease liabilities (in thousands): December 31, 2019 Current portion presented in other current liabilities $ 1,336 Noncurrent portion presented in operating lease liabilities 10,886 $ 12,222 Cash paid for amounts included in the measurement of lease liabilities for the year December 31, 2019 was $1.8 million and was included in net cash used in operating activities in the consolidated statements of cash flows. Future minimum annual operating lease payments are as follows (in thousands): Fiscal Years Ending December 31, December 31, 2019 2020 $ 2,310 20 21 3,374 2022 3,491 2023 3,614 2024 2,164 Thereafter — Total minimum payments 14,953 Less: present value adjustment (2,731 ) Total $ 12,222 As of December 31, 2019, the weighted average remaining lease term was 4.7 years and the weighted average discount rate was 8.2%. Rent expense was million during the years ended December 31, 2019, 2018 and 2017, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
Stockholders' Equity | 6. Stockholders’ Equity 2014 Equity Incentive Plan In July 2014, the Company’s board of directors approved the 2014 Equity Incentive Plan (the “2014 Plan”). Under the 2014 Plan, the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units and certain other awards to individuals who are employees, officers, directors or consultants of the Company. A total of 4,750,000 shares of common stock were initially reserved for issuance under the 2014 Plan. The number of shares of common stock reserved for issuance under the 2014 Plan will automatically increase on January 1 of each year, beginning on January 1, 2015, and continuing through and including January 1, 2024, by 3% of the total number of shares of the Company’s capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the Company’s board of directors. The maximum number of shares that may be issued upon the exercise of incentive stock options (“ISOs”) under the 2014 Plan is 10.0 million. ISOs and non-statutory three years. A summary of the Company’s stock option activity, including market-based performance stock options and related information is as follows (in thousands, except price data): Fiscal Years Ended December 31, 2019 Weighted Average Options Exercise Price Outstanding, beginning of period 3,688 $ 20.84 Granted 1,947 25.72 Exercised (1,058 ) 15.61 Forfeited (941 ) 25.76 Outstanding, end of period 3,636 23.71 Exercisable 1,697 21.67 As of December 31, 2019, the aggregate intrinsic value of options outstanding was $14.7 million and options outstanding and exercisable was $9.1 million, as calculated based on the closing price of the Company’s common stock at the end of the period, the weighted-average remaining contractual term of options outstanding was 7.9 years and options outstanding and exercisable was 6.8 years. The aggregate intrinsic value of options exercised was $11.4 million, $17.5 million and $14.6 million during the years ended December 31, 2019, 2018 and 2017, respectively. A summary of the Company’s RSU and Performance Stock Unit activity and related information (in thousands): Fiscal Years Ended December 31, 2019 Weighted Average RSUs Fair Value Outstanding, beginning of period 350 $ 24.92 Awarded 683 24.26 Vested (281 ) 24.25 Forfeited (152 ) 27.11 Outstanding, end of period 600 23.93 As of December 31, 2019, the aggregate intrinsic value of RSUs outstanding was $14.9 million, calculated based on the closing price of the Company’s common stock at the end of the period, and the weighted-average remaining vesting term of RSUs outstanding was 2.1 years. 2014 Employee Stock Purchase Plan In July 2014, the Company’s board of directors approved the 2014 Employee Stock Purchase Plan (“2014 ESPP”). The 2014 ESPP became The Com pan y 0.2 mi llion shares |
Stock-based Compensation Expens
Stock-based Compensation Expense | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation Expense | 7. Stock-Based Compensation Expense Total stock-based compensation expense recognized is as follows (in thousands): Fiscal Years Ended December 31, 2019 2018 2017 Cost of sales $ 1,273 $ 703 $ 892 Selling, general and administrative 15,709 10,063 7,292 Research and development 3,167 2,467 1,636 $ $ 13,233 $ As of December 31, 2019, the total compensati on expense stock option and RSU grants under the Company’s 2014 plan not yet re cognized was . Th is expense wi ll be amortized on a str aight -lin e b asis o ver a of a nd w ill be ad justed for s ubs equent The Company estimates the fair value of stock-based compensation on the date of grant using the Black-Scholes option-pricing model. The Black-Scholes model determines the fair value of stock-based payment awards based on the fair market value of the Company’s common stock on the date of grant and is affected by assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the fair market value of the Company’s common stock, volatility over the expected term of the awards and actual and projected employee stock option exercise behaviors. The Company has opted to use the “simplified method” for estimating the expected term of options, whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the option. Due to the Company’s limited trading history and a lack of company specific historical and implied volatility data, the Company bases its estimate of expected volatility by including the historical volatility of a group of similar companies that are publicly traded along with the Company’s volatility. When selecting these public companies on which it has included in its expected stock price volatility, the Company generally selected companies with comparable characteristics to it, including enterprise value, stages of clinical development, risk profiles, position within the industry and with historical share price information sufficient to meet the expected life of the stock-based awards. The historical volatility data was computed using the daily closing prices for the included companies’ shares during the equivalent period of the calculated expected term of the share-based payments. The Company will continue to analyze the historical stock price volatility and expected term assumptions as more historical data for the Company’s common stock becomes available. The risk-free rate assumption is based on the U.S. Treasury instruments with maturities similar to the expected term of the Company’s stock options. The expected dividend assumption is based on the Company’s history of not paying dividends and its expectation that it will not declare dividends for the foreseeable future. Effective January 1, 2017, the Company adopted ASU 2016-9 2016-9, forfeitures differed from the estimates, the Company recorded the difference as a cumulative adjustment in the period that any estimate was revised. In July 2019, the Company granted stock option s 30-day on a straight -lin e basis three-year In November 2019, the Company granted 89,024 Performance Stock Units (“PSUs”), subject . th e PSUs 30-day the PSUs % , award on a stra ight -line basis three-year The fair value of options granted to employees or directors during the periods presented below were estimated as of the grant date using the Black-Scholes model assuming the weighted average assumptions listed in the following table: Fiscal Years Ended December 31, 2019 2018 2017 Expected term (years) 6.0 6.0 6.0 Expected volatility 48 % 45 % 45 % Risk-free interest rate 2.2 % 2.7 % 2.1 % Dividend yield 0.0 % 0.0 % 0.0 % Fair value $ 11.74 $ 15.82 $ 7.24 The fair value of options granted under the 2014 ESPP to employees was estimated as of the grant date using the Black-Scholes model assuming the weighted average assumptions listed in the following table: Fiscal Years Ended December 31, 2019 2018 2017 Expected term (years) 0.5 0.5 1.3 Expected volatility 49 % 49 % 44 % Risk-free interest rate 2.0 % 2.5 % 1.3 % Dividend yield 0.0 % 0.0 % 0.0 % Fair value $ 6.71 $ 9.29 $ 8.71 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Contingencies In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. The Company accrues a liability for such matters when it is probable that future expenditures will be made, and such amounts can be reasonably estimated. Indemnification The Company’s amended and restated certificate of incorporation contains provisions limiting the liability of directors, and its amended and restated bylaws provide that the Company will indemnify each of its directors to the fullest extent permitted under Delaware law. The Company’s amended and restated certificate of incorporation and amended and restated bylaws also provide its board of directors with discretion to indemnify its officers and employees when determined appropriate by the board. In addition, the Company has entered and expects to continue to enter into agreements to indemnify its directors and executive officers. Litigation The Company may at times be involved in litigation and other legal claims in the ordinary course of business. When appropriate in the Company’s estimation, it may record reserves in its financial statements for pending litigation and other claims. In May 2019, a purported stockholder of the Company, Avi Yaron, filed a putative class action complaint in the United States District Court for the Northern District of California, entitled Yaron v. Intersect ENT, Inc., et al., 4:19-cv-02647, The Court has the a Purchase Commitments As of December 31, 2019, the Company had non-cancellable |
Employee Retirement Plan
Employee Retirement Plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Retirement Plan | 9. Employee Retirement Plan In January 2007, the Company established a qualified retirement plan under section 401(k) of the Internal Revenue Code (“IRC”) under which participants may contribute up to 100% of their eligible compensation, subject to maximum deferral limits specified by the IRC. The Company may make a discretionary profit sharing contribution to each eligible employee, subject to limits specified by the IRC, on an annual basis, provided the employee is employed with the Company on the last day of the plan year which is December 31. In addition, the Company may also make matching contributions of an employee’s eligible compensation. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company has a history of losses and therefore has made no provision for income taxes. The amount computed by applying the federal statutory rate to loss before income taxes reconciles to the provision for income taxes is as follows (in thousands): Fiscal Years Ended December 31, 201 9 201 8 201 7 Tax at federal statutory rate $ (9,029 ) $ (4,814 ) $ (5,563 ) State tax, net of federal benefit (1,977 ) (1,935 ) (575 ) Permanent items 299 406 460 Stock-based compensation 190 (2,219 ) (2,919 ) R&D tax credit (782 ) (893 ) (627 ) Change in U.S. federal tax rate — — 20,974 Change in valuation allowance 11,299 9,455 (11,750 ) $ — $ — $ — Significant components of net deferred tax assets are as follows (in thousands): December 31, 201 9 201 8 Deferred tax assets: Net operating losses $ 54,722 $ 45,914 R&D tax credit 8,944 7,585 Accruals and other 8,064 7,153 Operating lease liabilities 3,049 — 74,779 60,652 Deferred tax liabilities: Depreciation and amortization (5 ) (165 ) Operating lease right-of-use assets (2,988 ) — (2,993 ) (165 ) Net deferred tax assets: 71,786 60,487 Valuation allowance (71,786 ) (60,487 ) $ — $ — In December 2017, the U.S. government enacted comprehensive tax legislation, commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time In December 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. In accordance with SAB 118, the Company recorded a provisional amount related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future was a net decrease related to deferred tax assets and deferred tax liabilities of $21.0 million, with a corresponding and fully offsetting adjustment to our valuation allowance for the year ended December 31, 2017. In December 2018, the Company completed its accounting for the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future. There have been no net benefit changes to the provisional estimates disclosed in the period of enactment under SAB 118. Deferred income taxes reflect the tax effects of NOLs and tax credit carryforwards and the net temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of the deferred tax assets is dependent upon the generation of future taxable income, if any, the amount and timing of which are uncertain. Based on available objective evidence, management believes it is more likely than not that the deferred tax assets are not recognizable and will not be recognizable until the Company has sufficient taxable income. Accordingly, the net deferred tax assets have been fully offset by a valuation allowance. The valuation allowance increased by $11.3 million and As of December 31, 2019, the Company’s federal NOL carryforwards of $214.6 million will expire at various dates beginning in 2026, if not utilized, and federal research and development tax credits of $6.5 million will begin to expire in 2026. In addition, NOL carryforwards for state income tax purposes of $59.9 million will begin to expire in 2028 and state research and development tax credits of $5.9 million do not expire. Utilization of the NOL carryforwards may be subject to an annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of the NOL before utilization. Due to the Company’s full valuation allowance against all net deferred tax assets, the Company’s unrecognized tax benefits, if recognized, would not affect the effective tax rate. A reconciliation of the change in the unrecognized tax benefit during the year is as follows (in thousands): December 31, 201 9 2018 2017 Beginning of year $ 2,107 $ 1,660 $ 1,374 Additions for tax positions related to: Current year 378 332 286 Prior years — 115 — End of year $ 2,485 $ 2,107 $ 1,660 The Company does not expect a significant change to its unrecognized tax benefits over the next twelve months. The Company files income tax returns in the U.S. federal and various state jurisdictions. Tax years beginning in 2004 through 2019 remain open to examination by the major taxing authorities to which the Company is subject to. The Company’s policy is to record interest related to uncertain tax positions as interest expense and any penalties as other expense in its statements of operations and comprehensive loss. The Company has not recorded any interest expense or penalties associated with unrecognized tax benefits. |
Supplemental Quarterly Financia
Supplemental Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplemental Quarterly Financial Information | Supplemental Quarterly Financial Information (unaudited) The following table sets forth unaudited statements of operations data for each of the Company’s last eight quarters. This quarterly information is unaudited and has been prepared on the same basis as the annual financial statements. In the Company’s opinion, this quarterly information reflects all adjustments necessary for a fair presentation of the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Fiscal Years Ended 2019 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue $ 26,673 $ 26,659 $ 24,056 $ 31,754 $ 24,723 $ 26,300 $ 24,666 $ 32,783 Cost of sales 4,645 5,046 4,876 7,206 5,482 5,558 5,202 6,371 Gross profit 22,028 21,613 19,180 24,548 19,241 20,742 19,464 26,412 Gross margin 83 % 81 % 80 % 77 % 78 % 79 % 79 % 81 % Operating expenses: Sales, general and administrative 27,207 27,611 26,429 27,233 21,516 21,005 22,760 26,322 Research and development 6,266 6,041 6,145 5,831 4,273 4,374 4,872 5,743 Total operating expenses 33,473 33,652 32,574 33,064 25,789 25,379 27,632 32,065 Loss from operations (11,445 ) (12,039 ) (13,394 ) (8,516 ) (6,548 ) (4,637 ) (8,168 ) (5,653 ) Interest and other income, net 640 655 546 559 412 477 572 623 Net loss $ (10,805 ) $ (11,384 ) $ (12,848 ) $ (7,957 ) $ (6,136 ) $ (4,160 ) $ (7,596 ) $ (5,030 ) Basic and diluted net loss per share $ (0.35 ) $ (0.36 ) $ (0.41 ) $ (0.25 ) $ (0.21 ) $ (0.14 ) $ (0.25 ) $ (0.16 ) Shares used to compute basic and diluted net loss per share 30,918 31,362 31,483 31,778 29,878 30,264 30,475 30,624 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | INTERSECT ENT, INC. SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (in thousands) Fiscal Years Ended 2019 2018 2017 Allowance for doubtful accounts: Beginning $ 80 $ 150 $ 162 Charges, net of recoveries 94 54 62 Write-offs (43 ) (124 ) (74 ) Ending $ 131 $ 80 $ 150 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Preparation | Basis of Preparation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). These consolidated financial statements include the accounts of the Company and its consolidated subsidiary. All intercompany balances and transactions have been eliminated in consolidation. |
Functional Currency | Functional Currency The functional currency of the Company’s wholly-owned subsidiary Intersect ENT GmbH, which the Company established in June 2018, is the U.S. dollar. Transaction gains and losses are included in interest income and other, net, on the Company’s consolidated statements of operations. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements. Management uses significant judgment when making estimates related to its revenue related allowances, inventory, common stock valuation and related stock-based compensation, leases as well as certain accrued liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid securities, readily convertible to cash, that mature within 90 days or less from the date of purchase to be cash equivalents. |
Short-term Investments, Available-for-Sale | Short-term Investments Short-term investments, which are classified as available-for-sale, |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents and short-term investments . Level 1 — Observable inputs such as quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Other inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Level 3 — Unobservable inputs that are supported by little or no market activities, which would require the Company to develop its own assumptions. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following is a summary of cash, cash equivalents and short-term investments, by type of instrument measured at fair value on a recurring basis (in thousands): December 31, 2019 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 11,885 $ — $ — $ 11,885 $ 4,168 $ — $ — $ 4,168 Money market funds 8,767 — — 8,767 2,308 — — 2,308 Corporate debt securities — 50,169 — 50,169 — 45,165 — 45,165 Commercial paper — 19,817 — 19,817 — 49,132 — 49,132 $ $ 69,986 $ — $ 90,638 $ 6,476 $ 94,297 $ — $ 100,773 Reported as: Cash and cash equivalents $ 20,652 $ 9,464 Short-term investments 69,986 91,309 $ 90,638 $ 100,773 |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash equivalents, short-term investments and accounts receivable. The Company believes that the credit risk in its accounts receivable is mitigated by its credit evaluation process, relatively short collection terms and diversity of its customer base. The Company generally does not require collateral and losses on accounts receivable have historically been within management’s expectations. The Company’s investment policy limits investments to certain types of debt securities issued by the U.S. government, its agencies, and institutions with investment-grade credit ratings, as well as corporate debt or commercial paper issued by the highest quality financial and non-financial |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company provides for uncollectible accounts receivable by recording an allowance for doubtful accounts for balances deemed uncollectible. The Company evaluates the collectability of its accounts receivable based on known collection risks and historical experience. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations to the Company (e.g., bankruptcy filings, substantial downgrading of credit ratings), the Company records a specific allowance for bad debts against amounts due to reduce the carrying amount of accounts receivable to the amount it reasonably believes will be collected. The Company has not experienced any significant collection issues. |
Inventories, net | Inventories Inventor ies are first-in, first-out |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the respective assets, generally three |
Impairment of Long-lived Assets | Impairment of Long-lived Assets Long-lived assets consist primarily of property and equipment and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require that a long-lived asset be tested for possible impairment, the Company compares the undiscounted cash flows expected to be generated by the asset group to the carrying amount of the asset group. If the carrying amount of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. The Company determines fair value using the income approach based on the present value of expected future cash flows or other appropriate measures of estimated fair value. The Company’s cash flow assumptions consider historical and forecasted revenue and operating costs and other relevant factors. Since inception, the Company has not recorded impairment charges on its long-lived assets. |
Leases | Leases For agreements with a term of more than twelve months, the Company determines if an agreement is a lease at inception. Operating lease liabilities represent an obligation to make lease payments arising from the lease agreement. Operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the remaining lease term. In determining the present value of lease payments, the Company estimates its incremental borrowing rate as the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term, of an amount equal to the lease payments in a similar economic environment. Operating lease liabilities are included in other current and non-current Right-of-use non-current |
Revenue Recognition | Revenue Recognition T The Company’s typical payment terms are between approximately 30 to 150 days. The PROPEL family of products are regulated by the FDA as medical devices. The Company recognizes revenue through sales of its PROPEL family of products to hospitals and ambulatory surgery centers located almost entirely in the United States when control of the product is transferred to the customer, typically upon shipment of goods to the customer, satisfying the Company’s only performance obligation. The FDA has approved SINUVA as a pharmaceutical product and it is therefore regulated as such. The Company sells SINUVA to a limited number of specialty pharmacies and specialty distributors in the United States, (“Resellers”). These Resellers subsequently sell SINUVA to health care providers. Revenue from SINUVA sales are recognized when control of the product is transferred to the Resellers, typically upon receipt of goods by the Reseller, satisfying the Company’s only performance obligation. The Company recognizes Reseller fees, prompt pay discounts, product sales discounts, rebates, returns and other allowances as a reduction of revenue in the same period the related revenue is recognized. In addition to the agreements with the Resellers, the Company enters into arrangements with governmental agencies that result in rebates, chargebacks and discounts with respect to the purchase of SINUVA. These amounts may include Medicaid and Tricare rebates, chargebacks related to Federal Supply Schedule of the General Services Administration, Distribution and Pricing Agreement with the Department of Defense and 340B of the Public Health Service Act as well as other allowances that may be offered within contracts between the Company and its direct or indirect customers relating to the Company’s sales of SINUVA, collectively referred to as “Discounts and Rebates.” Discounts and Rebates are based on amounts owed or expected to be owed on the related sales. These estimates take into consideration the Company’s historical experience, the remaining shelf life of the product, current contractual and statutory requirements, specific known market events and trends and industry data. If actual results in the future vary from the Company’s estimates, the Company will adjust these estimates, which would affect revenue and earnings in the period such variances become known. In the balance sheet, such amounts are generally classified as reductions of accounts receivable if the amount is payable to the Resellers, or a current liability if the amount is payable to a party other than the Reseller. |
Cost of Sales | Cost of Sales Cost of sales consists primarily of manufacturing overhead costs, material costs and direct labor. A significant portion of the Company’s cost of sales currently consists of manufacturing overhead costs. These overhead costs include the cost of quality assurance, material procurement, inventory control, facilities, information technology, equipment and operations supervision and management. Cost of sales also includes depreciation expense for production equipment and certain direct costs such as shipping costs. |
Research and Development | Research and Development Research and development expenses consist primarily of product development, clinical and regulatory affairs, consulting services and other costs associated with products and technologies in development. These expenses include employee compensation, stock-based compensation, supplies, quality assurance and related travel and allocated facilities and information technology expenses. Clinical expenses include clinical trial design, clinical site reimbursement, data management and travel expenses, and the cost of manufacturing products for clinical trials. |
Stock-based Compensation | Stock-based Compensation The Company maintains equity incentive plans to provide long-term incentives for employees and members of the board of directors. The plans allow for the issuance of non-statutory non-statutory non-employee The Company is required to determine the fair value of equity incentive awards and recognize compensation expense for all equity incentive awards made to employees and directors, including employee stock options and restricted stock units. Stock-based compensation expense is recognized over the requisite service period in the statements of operations and comprehensive loss. The Company uses the straight-line method for expense attribution and has elected to account for forfeitures when they occur. The valuation model used for calculating the fair value of awards for stock-based compensation expense, except for market-based awards, is the Black-Scholes option-pricing model (the “Black-Scholes model”). For market-based awards, the Monte Carlo simulation model (the “Monte Carlo simulation”) is used. Both the Black-Scholes model and Monte Carlo simulation requires the Company to make assumptions and judgments about the variables used in the calculation, including the expected term (weighted average period of time that the awards granted are expected to be outstanding), the volatility of the Company’s common stock and an assumed risk-free interest rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option. |
Advertising Expenses | Advertising Expenses The Company expenses the costs of advertising |
Income Taxes | Income Taxes The Company accounts for income taxes under the liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. Valuation allowances against deferred tax assets are established when necessary to reduce deferred tax assets to the amounts expected to be realized. Currently, the Company has recorded a full valuation allowance against its deferred tax assets and there is no provision for income taxes, as the Company has incurred operating losses to-date. |
Net Loss per Share | Net Loss per Share Basic net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock and common stock equivalent shares from dilutive stock options, employee stock purchases and restricted stock units outstanding during the period. Because the Company has reported a net loss for all periods presented, diluted net loss per share is the same as basic net loss per share for those periods as all potentially dilutive securities were antidilutive in those periods. The following potentially dilutive securities outstanding have been excluded from the computations of weighted average shares outstanding because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares, in thousands): Fiscal Years Ended December 31, 2019 2018 2017 Common stock options 3,209 3,688 3,788 Market-based performance stock options 427 — — Restricted stock units 511 350 275 Market-based performance stock units 89 — — Employee stock purchase plan shares 70 74 190 4,306 4,112 4,253 |
Comprehensive Loss | Comprehensive Loss Comprehensive loss consists of net loss and changes in unrealized gains and losses on short-term investments . |
Segment, Geographical and Customer Concentration | Segment, Geographical and Customer Concentration The Company has one nited States. No single customer accounted for more than 10% of revenue during the years ended December 31, 2019, 2018 and 2017, and no single customer accounted for more than 10% of accounts receivable at December 31, 2019 and 2018. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In July 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-11, Leases (Topic 842): Targeted Improvements 2018-11”). 2018-11 2016-2, Leases: Amendments to the FASB Accounting Standards Codification 2016-2”), 2018-11, 2016-2, 2016-2 Leases, right-of-use no Leases In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments 2016-13”) . 2016-13 available-for-sale 2016-13 2016-13 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Cash, Cash Equivalents and Available-for-Sale Investments Measured at Fair Value on Recurring Basis | December 31, 2019 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 11,885 $ — $ — $ 11,885 $ 4,168 $ — $ — $ 4,168 Money market funds 8,767 — — 8,767 2,308 — — 2,308 Corporate debt securities — 50,169 — 50,169 — 45,165 — 45,165 Commercial paper — 19,817 — 19,817 — 49,132 — 49,132 $ $ 69,986 $ — $ 90,638 $ 6,476 $ 94,297 $ — $ 100,773 Reported as: Cash and cash equivalents $ 20,652 $ 9,464 Short-term investments 69,986 91,309 $ 90,638 $ 100,773 |
Schedule of Potentially Dilutive Securities Outstanding Excluded from the Computations of Diluted Weighted Average Shares Outstanding | The following potentially dilutive securities outstanding have been excluded from the computations of weighted average shares outstanding because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares, in thousands): Fiscal Years Ended December 31, 2019 2018 2017 Common stock options 3,209 3,688 3,788 Market-based performance stock options 427 — — Restricted stock units 511 350 275 Market-based performance stock units 89 — — Employee stock purchase plan shares 70 74 190 4,306 4,112 4,253 |
Composition of Certain Financ_2
Composition of Certain Financial Statement Items (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable | Accounts Receivable, net (in thousands): December 31, 2019 2018 Accounts receivable $ 19,244 $ 19,696 Allowance for doubtful accounts (131 ) (80 ) $ $ |
Components of Inventory | Inventories, net (in thousands): December 31, 2019 2018 Raw materials $ 2,830 $ Work-in-process 283 368 Finished goods 13,887 9,346 $ $ |
Property and Equipment | Property and Equipment, net (in thousands): December 31, 2019 2018 Computer equipment and software $ 2,026 $ 1,571 Furniture and office equipment 1,536 1,260 Laboratory equipment 7,972 7,087 Leasehold improvements 3,367 2,118 14,901 12,036 Less: accumulated depreciation and amortization (8,589 ) (6,158 ) $ 6,312 $ 5,878 |
Disaggregation of Revenue | Revenue (in thousands): December 31, 2019 2018 2017 PROPEL family of products $ 104,657 $ 105,711 $ 96,301 SINUVA 4,485 2,761 — $ 109,142 $ 108,472 $ 96,301 |
Cash, Cash Equivalents and Sh_2
Cash, Cash Equivalents and Short-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Cash, Cash Equivalents and Available-for-Sale Investments by Type of Instrument | The following is a summary of cash, cash equivalents and short-term investments, by type of instrument (in thousands): December 31, 2019 2018 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Cost Gains Losses Fair Value Cost Gains Losses Fair Value Cash $ $ — $ — $ $ 4,168 $ — $ — $ 4,168 Money market funds 8,767 — — 8,767 2,308 — — 2,308 Corporate debt securities 50,137 33 (1 ) 50,169 45,177 5 (17 ) 45,165 Commercial paper 19,796 21 — 19,817 49,161 — (29 ) 49,132 $ 90,585 $ 54 $ (1 ) $ 90,638 $ $ 5 $ (46 ) $ Reported as: Cash and cash equivalents $ 20,652 $ 9,464 Short-term investments 69,986 91,309 $ 90,638 $ 100,773 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Right of Use Asset | Right-of-use December 31, 2019 Upon the adoption of Topic 842 $ 1,572 Additional warehouse operating lease 117 Extension of operating leases 11,525 Less: right-of-use asset (1,234 ) $ 11,980 |
Schedule of operating leases liabilities | Operating lease liabilities (in thousands): December 31, 2019 Current portion presented in other current liabilities $ 1,336 Noncurrent portion presented in operating lease liabilities 10,886 $ 12,222 |
Schedule of Annual Operating Lease Payments | Future minimum annual operating lease payments are as follows (in thousands): Fiscal Years Ending December 31, December 31, 2019 2020 $ 2,310 20 21 3,374 2022 3,491 2023 3,614 2024 2,164 Thereafter — Total minimum payments 14,953 Less: present value adjustment (2,731 ) Total $ 12,222 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity, including market-based performance stock options and related information is as follows (in thousands, except price data): Fiscal Years Ended December 31, 2019 Weighted Average Options Exercise Price Outstanding, beginning of period 3,688 $ 20.84 Granted 1,947 25.72 Exercised (1,058 ) 15.61 Forfeited (941 ) 25.76 Outstanding, end of period 3,636 23.71 Exercisable 1,697 21.67 |
Summary of Restricted Stock Units Activity | A summary of the Company’s RSU and Performance Stock Unit activity and related information (in thousands): Fiscal Years Ended December 31, 2019 Weighted Average RSUs Fair Value Outstanding, beginning of period 350 $ 24.92 Awarded 683 24.26 Vested (281 ) 24.25 Forfeited (152 ) 27.11 Outstanding, end of period 600 23.93 |
Stock-based Compensation Expe_2
Stock-based Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Based Compensation Expense | Total stock-based compensation expense recognized is as follows (in thousands): Fiscal Years Ended December 31, 2019 2018 2017 Cost of sales $ 1,273 $ 703 $ 892 Selling, general and administrative 15,709 10,063 7,292 Research and development 3,167 2,467 1,636 $ $ 13,233 $ |
Summary of Weighted Average Assumptions Used to Estimate Options Using Black-Scholes Model | The fair value of options granted to employees or directors during the periods presented below were estimated as of the grant date using the Black-Scholes model assuming the weighted average assumptions listed in the following table: Fiscal Years Ended December 31, 2019 2018 2017 Expected term (years) 6.0 6.0 6.0 Expected volatility 48 % 45 % 45 % Risk-free interest rate 2.2 % 2.7 % 2.1 % Dividend yield 0.0 % 0.0 % 0.0 % Fair value $ 11.74 $ 15.82 $ 7.24 |
Summary of Weighted Average Assumptions Used to Estimate ESPP Using Black-Scholes Model | The fair value of options granted under the 2014 ESPP to employees was estimated as of the grant date using the Black-Scholes model assuming the weighted average assumptions listed in the following table: Fiscal Years Ended December 31, 2019 2018 2017 Expected term (years) 0.5 0.5 1.3 Expected volatility 49 % 49 % 44 % Risk-free interest rate 2.0 % 2.5 % 1.3 % Dividend yield 0.0 % 0.0 % 0.0 % Fair value $ 6.71 $ 9.29 $ 8.71 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Federal Statutory Rate to Loss Before Income Taxes Reconciles to Provision for Income Taxes | The amount computed by applying the federal statutory rate to loss before income taxes reconciles to the provision for income taxes is as follows (in thousands): Fiscal Years Ended December 31, 201 9 201 8 201 7 Tax at federal statutory rate $ (9,029 ) $ (4,814 ) $ (5,563 ) State tax, net of federal benefit (1,977 ) (1,935 ) (575 ) Permanent items 299 406 460 Stock-based compensation 190 (2,219 ) (2,919 ) R&D tax credit (782 ) (893 ) (627 ) Change in U.S. federal tax rate — — 20,974 Change in valuation allowance 11,299 9,455 (11,750 ) $ — $ — $ — |
Schedule of Significant Components of Net Deferred Tax Assets | Significant components of net deferred tax assets are as follows (in thousands): December 31, 201 9 201 8 Deferred tax assets: Net operating losses $ 54,722 $ 45,914 R&D tax credit 8,944 7,585 Accruals and other 8,064 7,153 Operating lease liabilities 3,049 — 74,779 60,652 Deferred tax liabilities: Depreciation and amortization (5 ) (165 ) Operating lease right-of-use assets (2,988 ) — (2,993 ) (165 ) Net deferred tax assets: 71,786 60,487 Valuation allowance (71,786 ) (60,487 ) $ — $ — |
Schedule of Reconciliation of Change in Unrecognized Tax Benefit | A reconciliation of the change in the unrecognized tax benefit during the year is as follows (in thousands): December 31, 201 9 2018 2017 Beginning of year $ 2,107 $ 1,660 $ 1,374 Additions for tax positions related to: Current year 378 332 286 Prior years — 115 — End of year $ 2,485 $ 2,107 $ 1,660 |
Supplemental Quarterly Financ_2
Supplemental Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information of Statements of Operations | The following table sets forth unaudited statements of operations data for each of the Company’s last eight quarters. This quarterly information is unaudited and has been prepared on the same basis as the annual financial statements. In the Company’s opinion, this quarterly information reflects all adjustments necessary for a fair presentation of the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Fiscal Years Ended 2019 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue $ 26,673 $ 26,659 $ 24,056 $ 31,754 $ 24,723 $ 26,300 $ 24,666 $ 32,783 Cost of sales 4,645 5,046 4,876 7,206 5,482 5,558 5,202 6,371 Gross profit 22,028 21,613 19,180 24,548 19,241 20,742 19,464 26,412 Gross margin 83 % 81 % 80 % 77 % 78 % 79 % 79 % 81 % Operating expenses: Sales, general and administrative 27,207 27,611 26,429 27,233 21,516 21,005 22,760 26,322 Research and development 6,266 6,041 6,145 5,831 4,273 4,374 4,872 5,743 Total operating expenses 33,473 33,652 32,574 33,064 25,789 25,379 27,632 32,065 Loss from operations (11,445 ) (12,039 ) (13,394 ) (8,516 ) (6,548 ) (4,637 ) (8,168 ) (5,653 ) Interest and other income, net 640 655 546 559 412 477 572 623 Net loss $ (10,805 ) $ (11,384 ) $ (12,848 ) $ (7,957 ) $ (6,136 ) $ (4,160 ) $ (7,596 ) $ (5,030 ) Basic and diluted net loss per share $ (0.35 ) $ (0.36 ) $ (0.41 ) $ (0.25 ) $ (0.21 ) $ (0.14 ) $ (0.25 ) $ (0.16 ) Shares used to compute basic and diluted net loss per share 30,918 31,362 31,483 31,778 29,878 30,264 30,475 30,624 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Cash, Cash Equivalents and Short-Term Investments Available-for-Sale, by Type of Instrument (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Net Investment [Line Items] | ||||
Cash and cash equivalents | $ 20,652 | $ 9,464 | $ 19,837 | $ 9,859 |
Short-term investments, available-for-sale | 69,986 | 91,309 | ||
Cash and cash equivalents and short-term investments, available-for-sale | 90,638 | 100,773 | ||
Fair Value on Recurring Basis [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents | 90,638 | 100,773 | ||
Fair Value on Recurring Basis [Member] | Cash [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents | 11,885 | 4,168 | ||
Fair Value on Recurring Basis [Member] | Money Market Funds [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents | 8,767 | 2,308 | ||
Fair Value on Recurring Basis [Member] | Corporate Debt Securities [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents | 50,169 | 45,165 | ||
Fair Value on Recurring Basis [Member] | Commercial Paper [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents | 19,817 | 49,132 | ||
Level 1 [Member] | Fair Value on Recurring Basis [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents | 20,652 | 6,476 | ||
Level 1 [Member] | Fair Value on Recurring Basis [Member] | Cash [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents | 11,885 | 4,168 | ||
Level 1 [Member] | Fair Value on Recurring Basis [Member] | Money Market Funds [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents | 8,767 | 2,308 | ||
Level 2 [Member] | Fair Value on Recurring Basis [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents | 69,986 | 94,297 | ||
Level 2 [Member] | Fair Value on Recurring Basis [Member] | Corporate Debt Securities [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents | 50,169 | 45,165 | ||
Level 2 [Member] | Fair Value on Recurring Basis [Member] | Commercial Paper [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents | $ 19,817 | $ 49,132 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Detail) | Jan. 01, 2019USD ($) | Dec. 31, 2019USD ($)CustomerSegments | Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($)Customer |
Summary Of Significant Accounting Policies [Line Items] | ||||
Transfer of assets from level 1 to level 2 | $ 0 | $ 0 | ||
Transfer of liabilities from level 1 to level 2 | 0 | 0 | ||
Advertising expenses | $ 1,200,000 | $ 1,000,000 | $ 600,000 | |
Number of operating segment | Segments | 1 | |||
Right-of-use leased liability | $ 12,222,000 | |||
Cumulative effect on retained earnings | $ 0 | |||
Revenue recognition payment terms | The Company’s typical payment terms are between approximately 30 to 150 days. | |||
Headquarters [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Operating Lease, Right-of-Use Asset | $ 1,572,000 | |||
Accounting Standard Update 2018-11 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Right-of-use leased liability | 2,200,000 | |||
Deferred rent | $ 600,000 | |||
Revenue [Member] | Customer Concentration Risk [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customer accounted for more than 10% | Customer | 0 | 0 | 0 | |
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customer accounted for more than 10% | Customer | 0 | 0 | ||
Concentration risk, percentage | 10.00% | 10.00% | ||
Leasehold Improvements [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of lease | straight-line basis over the shorter of their estimated useful lives or the term of the lease. | |||
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life of property and equipment | 3 years | |||
Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life of property and equipment | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Potentially Dilutive Securities Outstanding Excluded from the Computations of Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted weighted average shares outstanding | 4,306 | 4,112 | 4,253 |
Common Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted weighted average shares outstanding | 3,209 | 3,688 | 3,788 |
Market-based performance stock options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted weighted average shares outstanding | 427 | 0 | 0 |
Restricted stock units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted weighted average shares outstanding | 511 | 350 | 275 |
Market-based performance stock units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted weighted average shares outstanding | 89 | 0 | 0 |
Employee stock purchase plan shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted weighted average shares outstanding | 70 | 74 | 190 |
Composition of Certain Financ_3
Composition of Certain Financial Statement Items - Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Accounts receivable | $ 19,244 | $ 19,696 |
Allowance for doubtful accounts | (131) | (80) |
Accounts receivable, net | $ 19,113 | $ 19,616 |
Composition of Certain Financ_4
Composition of Certain Financial Statement Items - Components of Inventories, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,830 | $ 1,872 |
Work-in-process | 283 | 368 |
Finished goods | 13,887 | 9,346 |
Inventory | $ 17,000 | $ 11,586 |
Composition of Certain Financ_5
Composition of Certain Financial Statement Items - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Capitalized stock-based compensation expense | $ 0.9 | $ 0.6 |
Composition of Certain Financ_6
Composition of Certain Financial Statement Items - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | $ 14,901 | $ 12,036 |
Less: accumulated depreciation and amortization | (8,589) | (6,158) |
Plant and equipment, net | 6,312 | 5,878 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | 2,026 | 1,571 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | 1,536 | 1,260 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | 7,972 | 7,087 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | $ 3,367 | $ 2,118 |
Composition of Certain Financ_7
Composition of Certain Financial Statement Items - Disaggregation of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | $ 31,754 | $ 24,056 | $ 26,659 | $ 26,673 | $ 32,783 | $ 24,666 | $ 26,300 | $ 24,723 | $ 109,142 | $ 108,472 | $ 96,301 |
Propel Family of products [Member] | |||||||||||
Revenues | 104,657 | 105,711 | $ 96,301 | ||||||||
Sinuva [Member] | |||||||||||
Revenues | $ 4,485 | $ 2,761 |
Cash, Cash Equivalents and Sh_3
Cash, Cash Equivalents and Short-term Investments - Summary of Cash, Cash Equivalents and Available-for-Sale Investments by Type of Instrument (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Net Investment [Line Items] | ||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | $ 90,585 | $ 100,814 | ||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains | 54 | 5 | ||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses | (1) | (46) | ||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 90,638 | 100,773 | ||
Cash, cash equivalents, Estimated Fair Value | 20,652 | 9,464 | $ 19,837 | $ 9,859 |
Short-term investments, Estimated Fair Value | 69,986 | 91,309 | ||
Cash and cash equivalents and short-term investments, available-for-sale | 90,638 | 100,773 | ||
Cash [Member] | ||||
Net Investment [Line Items] | ||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 11,885 | 4,168 | ||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 11,885 | 4,168 | ||
Money Market Funds [Member] | ||||
Net Investment [Line Items] | ||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 8,767 | 2,308 | ||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 8,767 | 2,308 | ||
Corporate Debt Securities [Member] | ||||
Net Investment [Line Items] | ||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 50,137 | 45,177 | ||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains | 33 | 5 | ||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses | (1) | (17) | ||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 50,169 | 45,165 | ||
Commercial Paper [Member] | ||||
Net Investment [Line Items] | ||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 19,796 | 49,161 | ||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains | 21 | |||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses | (29) | |||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | $ 19,817 | $ 49,132 |
Cash, Cash Equivalents and Sh_4
Cash, Cash Equivalents and Short-term Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments Schedule [Abstract] | |||
Investments with a contractual maturity of greater than one year | $ 0 | $ 0 | |
Other-than-temporary impairment charges | $ 0 | $ 0 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)ft² | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2014ft² | |
Operating Lease, Payments | $ 1.8 | |||
Lease weighted average discount rate | 8.20% | |||
Operating Lease, Weighted Average Remaining Lease Term | 4 years 8 months 12 days | |||
Rent expense | $ 2.4 | $ 2.1 | $ 1.9 | |
Operating lease , expiration date | Sep. 1, 2024 | |||
Total area under operating lease agreement | ft² | ft² | 50,400 | 17,900 | ||
Increased the right of use asset | $ 10.6 | |||
Warehouse [Member] | ||||
Operating lease , expiration date | Sep. 1, 2024 | |||
Total area under operating lease agreement | ft² | ft² | 10,200 | |||
Operating lease, Date | 2019-03 |
Leases - Right-of-Use asset (De
Leases - Right-of-Use asset (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Extension of operating leases | $ 11,525 |
Less: right-of-use asset amortization | (1,234) |
Right-of-use asset, net | 11,980 |
Upon the adoption of Topic 842 [member] | |
Right-of-use asset | 1,572 |
Additional warehouse operating lease [member] | |
Right-of-use asset | $ 117 |
Leases - Operating Lease Liabil
Leases - Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current portion presented in other current liabilities | $ 1,336 | |
Noncurrent portion presented in operating lease liabilities | 10,886 | $ 0 |
Total | $ 12,222 |
Leases - Operating Lease Paymen
Leases - Operating Lease Payments (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
2020 | $ 2,310 |
2021 | 3,374 |
2022 | 3,491 |
2023 | 3,614 |
2024 | 2,164 |
Thereafter | 0 |
Total minimum payments | 14,953 |
Less: present value adjustment | (2,731) |
Total | $ 12,222 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2019 | Jul. 23, 2014 | Jun. 30, 2018 | Jan. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Restricted stock units [Member] | |||||||
Aggregate intrinsic value of RSUs outstanding | $ 14.9 | ||||||
Weighted-average remaining contractual term of RSUs outstanding | 2 years 1 month 6 days | ||||||
Common Stock Options [Member] | |||||||
Aggregate intrinsic value of options outstanding | $ 14.7 | ||||||
Aggregate intrinsic value of options exercised | $ 11.4 | $ 17.5 | $ 14.6 | ||||
Weighted-average remaining contractual term of options outstanding | 7 years 10 months 24 days | ||||||
Weighted-average remaining contractual term of options exercisable | 6 years 9 months 18 days | ||||||
Aggregate intrinsic value of options outstanding and exercisable | $ 9.1 | ||||||
Employee stock purchase plan shares [Member] | |||||||
Common stock, capital shares reserved for future issuance, increase during period | 1,200,000 | ||||||
Shares authorized for future issuance | 496,092 | 1,696,092 | 1,696,092 | ||||
Shares Issued | 200,000 | 200,000 | 200,000 | ||||
2014 Equity Incentive Plan [Member] | |||||||
Percentage of shares outstanding | 3.00% | ||||||
Shares reserved for issuance | 8,967,704 | 4,750,000 | 8,967,704 | ||||
Maximum number of shares to be issued | 10,000,000 | ||||||
Common stock, capital shares reserved for future issuance, increase during period | 922,190 | ||||||
2014 Equity Incentive Plan [Member] | Restricted stock units [Member] | |||||||
Vesting period | 3 years | 3 years | |||||
2014 Equity Incentive Plan [Member] | Incentive Stock Option [Member] | |||||||
Price of options granted, percentage | 100.00% | ||||||
ISOs vested , description | ISOs granted under the 2014 Plan generally vest 25% after the completion of twelve months of service and the balance vests in equal monthly installments over the next 36 months of service and expire 10 years from the grant date. |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Detail) - Common Stock Options [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Class of Stock [Line Items] | |
Options outstanding, beginning of period | shares | 3,688 |
Options granted | shares | 1,947 |
Options exercised | shares | (1,058) |
Options forfeited | shares | (941) |
Options outstanding, end of period | shares | 3,636 |
Options exercisable | shares | 1,697 |
Options price, outstanding, beginning of period | $ / shares | $ 20.84 |
Options price, granted | $ / shares | 25.72 |
Options price, exercised | $ / shares | 15.61 |
Options price, forfeited | $ / shares | 25.76 |
Options price, outstanding, end of period | $ / shares | 23.71 |
Options price, exercisable | $ / shares | $ 21.67 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Restricted Stock Units Activity (Detail) - Restricted stock units [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, beginning of period | shares | 350 |
Awarded | shares | 683 |
Vested | shares | (281) |
Forfeited | shares | (152) |
Outstanding, end of period | shares | 600 |
Outstanding, beginning of period | $ / shares | $ 24.92 |
Awarded | $ / shares | 24.26 |
Vested | $ / shares | 24.25 |
Forfeited | $ / shares | 27.11 |
Outstanding, end of period | $ / shares | $ 23.93 |
Stock-based Compensation Expe_3
Stock-based Compensation Expense - Summary of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 20,149 | $ 13,233 | $ 9,820 |
Cost of Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,273 | 703 | 892 |
Selling, General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 15,709 | 10,063 | 7,292 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 3,167 | $ 2,467 | $ 1,636 |
Stock-based Compensation Expe_4
Stock-based Compensation Expense - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2019 | Jul. 31, 2019 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||
Unearned stock-based compensation | $ 31.4 | ||
Weighted average period for unearned stock-based compensation to be recognized | 2 years 6 months | ||
Grant date fair value of options | $ 1.3 | ||
Share-based Compensation Award, Tranche One [Member] | |||
Class of Stock [Line Items] | |||
Options vesting average closing share price threshold 30-day trailing | $ 31 | $ 32 | |
Share-based Compensation Award, Tranche Two [Member] | |||
Class of Stock [Line Items] | |||
Options vesting average closing share price threshold 30-day trailing | 38 | 40 | |
Share-based Compensation Award, Tranche Three [Member] | |||
Class of Stock [Line Items] | |||
Options vesting average closing share price threshold 30-day trailing | $ 46 | $ 48 | |
Monte Carlo Simulation Model [Member] | |||
Class of Stock [Line Items] | |||
Grant date fair value of options | $ 2.9 | ||
Fair value assumptions expected volatility rate | 47.30% | 47.30% | |
Fair value assumptions risk free interest rate | 1.60% | 1.90% | |
Fair value assumptions expected term | 6 years 6 months | ||
Fair value assumptions expected dividend rate | 0.00% | 0.00% | |
President and CEO [Member] | |||
Class of Stock [Line Items] | |||
Fair value of options amortization period | 0 days | ||
New CFO and current General Counsel | |||
Class of Stock [Line Items] | |||
Fair value of options amortization period | 0 days | ||
Performance Shares [Member] | |||
Class of Stock [Line Items] | |||
Options granted | 89,024 | ||
Market Based Options [Member] | |||
Class of Stock [Line Items] | |||
Options granted | 427,147 | ||
Options price, granted | $ 20.44 |
Stock-based Compensation Expe_5
Stock-based Compensation Expense - Summary of Weighted Average Assumptions Used to Estimate Options Using Black-Scholes Model (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee stock purchase plan shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years | 6 years | 6 years |
Expected volatility | 48.00% | 45.00% | 45.00% |
Risk-free interest rate | 2.20% | 2.70% | 2.10% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Fair value | $ 11.74 | $ 15.82 | $ 7.24 |
2014 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 months | 6 months | 1 year 3 months 18 days |
Expected volatility | 49.00% | 49.00% | 44.00% |
Risk-free interest rate | 2.00% | 2.50% | 1.30% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Fair value | $ 6.71 | $ 9.29 | $ 8.71 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Non-cancellable commitments to suppliers for purchases | $ 4.1 |
Employee Retirement Plan - Addi
Employee Retirement Plan - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2007 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | ||||
Maximum annual contribution per employee, percent | 100.00% | |||
Contributions, annual vesting percentage | 25.00% | |||
Contributions, vesting period | 4 years | |||
Matching contribution description | Company may also make matching contributions of an employee’s eligible compensation. | |||
Profit sharing or matching contribution by employer | $ 1.1 | $ 0.7 | $ 0.3 |
Income Taxes - Schedule of Fede
Income Taxes - Schedule of Federal Statutory Rate to Loss Before Income Taxes Reconciles to Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | $ (9,029) | $ (4,814) | $ (5,563) |
State tax, net of federal benefit | (1,977) | (1,935) | (575) |
Permanent items | 299 | 406 | 460 |
Stock-based compensation | 190 | (2,219) | (2,919) |
R&D tax credit | (782) | (893) | (627) |
Change in U.S. federal tax rate | 20,974 | ||
Change in valuation allowance | $ 11,299 | $ 9,455 | $ (11,750) |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating losses | $ 54,722 | $ 45,914 |
R&D tax credit | 8,944 | 7,585 |
Accruals and other | 8,064 | 7,153 |
Operating lease liabilities | 3,049 | 0 |
Gross deferred tax assets | 74,779 | 60,652 |
Deferred tax liabilities: | ||
Depreciation and amortization | (5) | (165) |
Operating lease right-of-use assets | (2,988) | 0 |
Deferred tax liabilities, gross | (2,993) | (165) |
Net deferred tax assets: | 71,786 | 60,487 |
Valuation allowance | $ (71,786) | $ (60,487) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
U.S. federal corporate tax rate | 21.00% | 35.00% | |
Increase (Decrease) in valuation allowance | $ 11,300 | $ 9,500 | |
Decrease in deferred tax asset | $ 21,000 | ||
Decrease in deferred tax liabilities | $ 21,000 | ||
Net operating loss carryforwards, federal | 214,600 | ||
Net operating loss carryforwards, state | 59,900 | ||
Research and development tax credits | $ 8,944 | $ 7,585 | |
Tax years beginning, description | Tax years beginning in 2004 through 2019 remain open to examination by the major taxing authorities to which the Company is subject to. | ||
Earliest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax examination year | 2004 | ||
Latest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax examination year | 2019 | ||
Federal [Member] | |||
Income Tax Contingency [Line Items] | |||
Research and development tax credits | $ 6,500 | ||
Operating loss carryforwards, expiration year | 2026 | ||
Research and development tax credits, expiration year | 2026 | ||
State [Member] | |||
Income Tax Contingency [Line Items] | |||
Research and development tax credits | $ 5,900 | ||
Operating loss carryforwards, expiration year | 2028 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Change in Unrecognized Tax Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Beginning of year | $ 2,107 | $ 1,660 | $ 1,374 |
Additions for tax positions related to: | |||
Current year | 378 | 332 | 286 |
Prior years | 115 | ||
End of year | $ 2,485 | $ 2,107 | $ 1,660 |
Supplemental Quarterly Financ_3
Supplemental Quarterly Financial Information - Quarterly Financial Information of Statements of Operations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 31,754 | $ 24,056 | $ 26,659 | $ 26,673 | $ 32,783 | $ 24,666 | $ 26,300 | $ 24,723 | $ 109,142 | $ 108,472 | $ 96,301 |
Cost of sales | 7,206 | 4,876 | 5,046 | 4,645 | 6,371 | 5,202 | 5,558 | 5,482 | 21,773 | 22,613 | 15,499 |
Gross profit | $ 24,548 | $ 19,180 | $ 21,613 | $ 22,028 | $ 26,412 | $ 19,464 | $ 20,742 | $ 19,241 | 87,369 | 85,859 | 80,802 |
Gross margin | 77.00% | 80.00% | 81.00% | 83.00% | 81.00% | 79.00% | 79.00% | 78.00% | |||
Operating expenses: | |||||||||||
Sales, general and administrative | $ 27,233 | $ 26,429 | $ 27,611 | $ 27,207 | $ 26,322 | $ 22,760 | $ 21,005 | $ 21,516 | 108,480 | 91,603 | 80,045 |
Research and development | 5,831 | 6,145 | 6,041 | 6,266 | 5,743 | 4,872 | 4,374 | 4,273 | 24,283 | 19,262 | 18,360 |
Total operating expenses | 33,064 | 32,574 | 33,652 | 33,473 | 32,065 | 27,632 | 25,379 | 25,789 | 132,763 | 110,865 | 98,405 |
Loss from operations | (8,516) | (13,394) | (12,039) | (11,445) | (5,653) | (8,168) | (4,637) | (6,548) | (45,394) | (25,006) | (17,603) |
Interest and other income, net | 559 | 546 | 655 | 640 | 623 | 572 | 477 | 412 | 2,400 | 2,084 | 1,240 |
Net loss | $ (7,957) | $ (12,848) | $ (11,384) | $ (10,805) | $ (5,030) | $ (7,596) | $ (4,160) | $ (6,136) | $ (42,994) | $ (22,922) | $ (16,363) |
Basic and diluted net loss per share | $ (0.25) | $ (0.41) | $ (0.36) | $ (0.35) | $ (0.16) | $ (0.25) | $ (0.14) | $ (0.21) | $ (1.37) | $ (0.76) | $ (0.56) |
Shares used to compute basic and diluted net loss per share | 31,778 | 31,483 | 31,362 | 30,918 | 30,624 | 30,475 | 30,264 | 29,878 | 31,388 | 30,313 | 29,119 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts: | |||
Beginning | $ 80 | $ 150 | $ 162 |
Charges, net of recoveries | 94 | 54 | 62 |
Write-offs | (43) | (124) | (74) |
Ending | $ 131 | $ 80 | $ 150 |