Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 29, 2020 | |
Cover [Abstract] | ||
Amendment Flag | false | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Document Period End Date | Jun. 30, 2020 | |
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 | 32,702,084 | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Quarterly 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 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 29,458 | $ 20,652 | [1] |
Short-term investments | 106,373 | 69,986 | [1] |
Accounts receivable, net | 7,653 | 19,113 | [1] |
Inventories, net | 14,007 | 17,000 | [1] |
Prepaid expenses and other current assets | 1,964 | 2,300 | [1] |
Total current assets | 159,455 | 129,051 | [1] |
Property and equipment, net | 5,893 | 6,312 | [1] |
Operating lease right-of-use assets | 10,901 | 11,980 | [1] |
Other non-current assets | 533 | 559 | [1] |
Total assets | 176,782 | 147,902 | [1] |
Current liabilities: | |||
Accounts payable | 2,616 | 4,056 | [1] |
Accrued compensation | 8,077 | 12,717 | [1] |
Other current liabilities | 3,437 | 2,163 | [1] |
Total current liabilities | 14,130 | 18,936 | [1] |
Operating lease liabilities | 9,645 | 10,886 | [1] |
Convertible notes, net | 63,874 | ||
Other non-current liabilities | 22 | 22 | [1] |
Total liabilities | 87,671 | 29,844 | [1] |
Commitments and contingencies (note 9) | |||
Stockholders' equity: | |||
Preferred stock, $0.001 par value; Authorized shares: 9,994 at June 30, 2020 and 10,000 at December 31, 2019; Issued and outstanding shares: none | 0 | 0 | [1] |
Series DF-1 convertible preferred stock, $0.001 par value; Authorized shares: 6 at June 30, 2020 and none at December 31, 2019; Issued and outstanding shares: none | 0 | 0 | [1] |
Common stock, $0.001 par value; Authorized shares: 150,000 at June 30, 2020 and December 31, 2019; Issued and outstanding shares: 32,645 at June 30, 2020 and 32,235 at December 31, 2019 | 33 | 32 | [1] |
Additional paid-in capital | 360,396 | 348,729 | [1] |
Accumulated other comprehensive income | 95 | 53 | [1] |
Accumulated deficit | (271,413) | (230,756) | [1] |
Total stockholders' equity | 89,111 | 118,058 | [1] |
Total liabilities and stockholders' equity | $ 176,782 | $ 147,902 | [1] |
[1] | Amounts have been derived from the December 31, 2019 audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 9,994 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series DF-1 convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Series DF-1 , Shares Authorized | 6 | 0 |
Series DF-1, Shares Issued | 0 | 0 |
Series DF-1, Shares Outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 32,645 | 32,235 |
Common stock, shares outstanding | 32,645 | 32,235 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 9,780 | $ 26,659 | $ 29,606 | $ 53,332 |
Cost of sales | 7,357 | 5,046 | 13,767 | 9,691 |
Gross profit | 2,423 | 21,613 | 15,839 | 43,641 |
Operating expenses: | ||||
Selling, general and administrative | 19,497 | 27,611 | 45,697 | 54,818 |
Research and development | 4,018 | 6,041 | 9,164 | 12,307 |
Total operating expenses | 23,515 | 33,652 | 54,861 | 67,125 |
Loss from operations | (21,092) | (12,039) | (39,022) | (23,484) |
Interest expense | (486) | (486) | ||
Other income (expense), net | (1,546) | 655 | (1,149) | 1,295 |
Net loss | (23,124) | (11,384) | (40,657) | (22,189) |
Other comprehensive income: | ||||
Unrealized gain on short-term investments, net | 61 | 61 | 42 | 138 |
Comprehensive loss | $ (23,063) | $ (11,323) | $ (40,615) | $ (22,051) |
Net loss per share, basic and diluted | $ (0.71) | $ (0.36) | $ (1.25) | $ (0.71) |
Weighted average common shares used to compute net loss per share, basic and diluted | 32,595 | 31,362 | 32,480 | 31,141 |
Condensed Consolidated Statem_2
Condensed 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, 2018 | $ 120,994 | $ 31 | $ 308,766 | $ (41) | $ (187,762) | |
Beginning balance, Shares at Dec. 31, 2018 | 30,745 | |||||
Issuance of common stock and exercise of stock options, Value | 4,467 | 4,467 | ||||
Issuance of common stock and exercise of stock options, Shares | 417 | |||||
Stock-based compensation expense | 4,014 | 4,014 | ||||
Unrealized gain (loss) on short-term investments | 77 | 77 | ||||
Net loss | (10,805) | (10,805) | ||||
Ending balance, Value at Mar. 31, 2019 | 118,747 | $ 31 | 317,247 | 36 | (198,567) | |
Ending balance, Shares at Mar. 31, 2019 | 31,162 | |||||
Beginning balance, Value at Dec. 31, 2018 | 120,994 | $ 31 | 308,766 | (41) | (187,762) | |
Beginning balance, Shares at Dec. 31, 2018 | 30,745 | |||||
Unrealized gain (loss) on short-term investments | 138 | |||||
Net loss | (22,189) | |||||
Ending balance, Value at Jun. 30, 2019 | 118,068 | $ 31 | 327,891 | 97 | (209,951) | |
Ending balance, Shares at Jun. 30, 2019 | 31,469 | |||||
Beginning balance, Value at Mar. 31, 2019 | 118,747 | $ 31 | 317,247 | 36 | (198,567) | |
Beginning balance, Shares at Mar. 31, 2019 | 31,162 | |||||
Issuance of common stock and exercise of stock options, Value | 4,964 | 4,964 | ||||
Issuance of common stock and exercise of stock options, Shares | 307 | |||||
Stock-based compensation expense | 5,680 | 5,680 | ||||
Unrealized gain (loss) on short-term investments | 61 | 61 | ||||
Net loss | (11,384) | (11,384) | ||||
Ending balance, Value at Jun. 30, 2019 | 118,068 | $ 31 | 327,891 | 97 | (209,951) | |
Ending balance, Shares at Jun. 30, 2019 | 31,469 | |||||
Beginning balance, Value at Dec. 31, 2019 | 118,058 | [1] | $ 32 | 348,729 | 53 | (230,756) |
Beginning balance, Shares at Dec. 31, 2019 | 32,235 | |||||
Issuance of common stock and exercise of stock options, Value | 3,101 | $ 1 | 3,100 | |||
Issuance of common stock and exercise of stock options, Shares | 302 | |||||
Stock-based compensation expense | 4,253 | 4,253 | ||||
Unrealized gain (loss) on short-term investments | (19) | (19) | ||||
Net loss | (17,533) | (17,533) | ||||
Ending balance, Value at Mar. 31, 2020 | 107,860 | $ 33 | 356,082 | 34 | (248,289) | |
Ending balance, Shares at Mar. 31, 2020 | 32,537 | |||||
Beginning balance, Value at Dec. 31, 2019 | 118,058 | [1] | $ 32 | 348,729 | 53 | (230,756) |
Beginning balance, Shares at Dec. 31, 2019 | 32,235 | |||||
Unrealized gain (loss) on short-term investments | 42 | |||||
Net loss | (40,657) | |||||
Ending balance, Value at Jun. 30, 2020 | 89,111 | $ 33 | 360,396 | 95 | (271,413) | |
Ending balance, Shares at Jun. 30, 2020 | 32,645 | |||||
Beginning balance, Value at Mar. 31, 2020 | 107,860 | $ 33 | 356,082 | 34 | (248,289) | |
Beginning balance, Shares at Mar. 31, 2020 | 32,537 | |||||
Issuance of common stock and exercise of stock options, Value | 728 | 728 | ||||
Issuance of common stock and exercise of stock options, Shares | 108 | |||||
Stock-based compensation expense | 3,586 | 3,586 | ||||
Unrealized gain (loss) on short-term investments | 61 | 61 | ||||
Net loss | (23,124) | (23,124) | ||||
Ending balance, Value at Jun. 30, 2020 | $ 89,111 | $ 33 | $ 360,396 | $ 95 | $ (271,413) | |
Ending balance, Shares at Jun. 30, 2020 | 32,645 | |||||
[1] | Amounts have been derived from the December 31, 2019 audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Operating activities: | |||
Net loss | $ (40,657) | $ (22,189) | |
Adjustments to reconcile net loss to cash used in operating activities: | |||
Depreciation and amortization | 991 | 1,269 | |
Amortization of right-of-use assets | 1,078 | 555 | |
Stock-based compensation expense | 7,988 | 9,366 | |
Amortization of net investment discount | (92) | (790) | |
Amortization of debt transaction costs and accretion of debt discount | 117 | ||
Change in fair value of embedded derivatives | 1,796 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 11,460 | 4,087 | |
Inventories, net | 2,844 | (3,774) | |
Prepaid expenses and other assets | 350 | 713 | |
Accounts payable | (1,467) | (1,842) | |
Accrued compensation | (4,639) | (2,556) | |
Other liabilities | 33 | (707) | |
Net cash used in operating activities | (20,198) | (15,868) | |
Investing activities: | |||
Purchases of short-term investments | (86,109) | (69,342) | |
Maturities of short-term investments | 49,856 | 77,465 | |
Purchases of property and equipment | (533) | (1,792) | |
Net cash provided by (used in) investing activities | (36,786) | 6,331 | |
Financing activities: | |||
Proceeds from debt financing, net of issuance costs | 61,961 | ||
Proceeds from issuance of common stock and exercise of stock options | 3,829 | 9,431 | |
Net cash provided by financing activities | 65,790 | 9,431 | |
Net increase (decrease) in cash and cash equivalents | 8,806 | (106) | |
Cash and cash equivalents: | |||
Beginning of the period | 20,652 | [1] | 9,464 |
End of the period | 29,458 | 9,358 | |
Non-cash investing activities: | |||
Right-of-use asset obtained in exchange for lease obligations | 117 | ||
Property and equipment included in accounts payable | $ 131 | 440 | |
Lessor funded building improvements | $ 152 | ||
[1] | Amounts have been derived from the December 31, 2019 audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. |
Organization
Organization | 6 Months Ended |
Jun. 30, 2020 | |
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 | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Preparation The condensed 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 condensed consolidated financial statements include the accounts of the Company and its consolidated subsidiary. All intercompany balances and transactions have been eliminated in consolidation. The interim financial data as of June 30, 2020, is unaudited and is not necessarily indicative of the results for the full year. In the opinion of the Company’s management, the interim data includes only normal and recurring adjustments necessary for a fair presentation of the Company’s financial results for the three and six months ended June 30, 2020 and 2019. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to SEC rules and regulations relating to interim financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K Reclassifications Certain prior year amounts associated with fin i have been reclassi f to w to conform to the current year presentation. These reclassifications had no impact on net earnings or financial position. Risks and Uncertainties The Company is subject to risks and uncertainties resulting from the COVID-19 pandemic. The Company cannot predict the extent or duration of the impact of the COVID-19 pandemic on its financial and operating results, as the information regarding the current environment is evolving rapidly. The Company’s business has and will be impacted by its patients’ decisions to undergo sinus surgeries as ENT ASC and office procedure volumes recover and the Company resumes its manufacturing operations as a result of the ease of certain restrictions of the shelter-in-place orders issued by local and federal authorities . Furthermore, the COVID-19 pandemic has led to severe disruption and volatility in global capital markets and increased economic uncertainty and instability. The impact of this on the global economy has been and may continue to be severe. The magnitude of the impact of the COVID-19 re-occurrence shelter-in-place COVID-19 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, the allowance for doubtfu l associated with the C o 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, including the currently anticipated impact of the COVID-19 pandemic, 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. Recent Accounting Pronouncements Effective January 1, 2020, the Company adopted ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments 2016-13”). 2016-13 available-for-sale 2016-13 Significant Accounting Policies There have been no significant changes to the accounting policies during the six months ended June 30, 2020, as compared to the significant accounting policies described in Note 2 of the “Notes to Consolidated Financial Statements” in the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K Inventories Inventories are valued at the lower of cost, computed on a first-in, first-out COVID-19 Company recorded $ million and $ million, respectively, for idle facility expense due to its inability to use its manufacturing facility due to the shelter-in-place by $ million during the six months ended June 30, 2020. There was no reserve for excess and obsolete inventory recorded in the three months ended June 30, 2020 . COVID-19 Credit Losses The Company is exposed to credit losses primarily through receivables from customers and collaborators and through its available-for-sale COVID-19 . Restructuring Activities During the three months ended June 30, 2020, as a response to the COVID-19 pre-emptive Embedded Derivatives Related to Convertible Debt Instruments Embedded derivatives that are required to be bifurcated from s |
Composition of Certain Financia
Composition of Certain Financial Statement Items | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Financial Statement Items | 3. Composition of Certain Financial Statement Items Accounts Receivabl e June 30, December 31, Accounts receivable $ 7,925 $ 19,244 Allowance for doubtful accounts (272 ) (131 ) $ 7,653 $ 19,113 Inventories, net (in thousands): June 30, December 31, Raw materials $ 1,782 $ 2,830 Work-in-process 5,601 5,878 Finished goods 6,624 8,292 $ 14,007 $ 17,000 Capitalized stock-based compensation expense of $0.7 million and $0.9 million was included in inventory as of June 30, 2020 and December 31, 2019, respectively. Operating lease liabilities (in thousands): June 30, December 31, Current portion presented in other current liabilities $ 2,414 $ 1,336 Noncurrent portion presented in operating lease liabilities 9,645 10,886 $ 12,059 $ 12,222 Revenue (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 PROPEL family of products $ 9,481 $ 25,563 $ 28,571 $ 51,295 SINUVA 299 1,096 1,035 2,037 $ 9,780 $ 26,659 $ 29,606 $ 53,332 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments The Company measures certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents, short-term investments and embedded derivative liabilities. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market- based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: 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 fair value of debt is based on the amount of future cash flows associated with the instrument discounted using the Company’s estimated market rate as well as a convertible lattice model for the embedded features . As of June 30, 2020, the fair value of the Company’s Convertible Notes (see Note 8) was $70.7 million . Cash, Cash Equivalents and Short-term Investments 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): Reported as: Amortized Cost Gross Unrealized Estimated Fair V Cash and cash equivalents Short-term June 30, 2020 Gains Losses Level 1: Cash $ 7,500 $ — $ — $ 7,500 $ 7,500 $ — Money market funds 16,959 — — 16,959 16,959 — 24,459 — — 24,459 24,459 — Level 2: U.S. treasury bills 64,424 5 (1 ) 64,428 4,999 59,429 Corporate debt securities 21,999 61 (6 ) 22,054 — 22,054 U.S. government agency bonds 11,395 — — 11,395 — 11,395 Commercial paper 13,459 36 — 13,495 — 13,495 111,277 102 (7 ) 111,372 4,999 106,373 $ 135,736 $ 102 $ (7 ) $ 135,831 $ 29,458 $ 106,373 Reported as: Amortized Cost Gross Unrealized Estimated Fair Value Cash and cash equivalents Short-term investments December 31, 2019 Gains Losses Level 1: Cash $ 11,885 $ — $ — $ 11,885 $ 11,885 $ — Money market funds 8,767 — — 8,767 8,767 — 20,652 — — 20,652 20,652 — Level 2: Corporate debt securities 50,137 33 (1 ) 50,169 — 50,169 Commercial paper 19,796 21 — 19,817 — 19,817 69,933 54 (1 ) 69,986 — 69,986 $ 90,585 $ 54 $ (1 ) $ 90,638 $ 20,652 $ 69,986 There were no transfers in and out of Level 1 and Level 2 during the six months ended June 30, 2020 and year ended December 31, 2019. As of June 30, 2020 and December 31, 2019, 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 six months ended June 30, 2020 and year ended December 31, 2019. 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. The Company concluded that any unrealized losses on investments as of June 30, 2020 were not attributed to credit. Convertible Notes Embedded Derivatives The Convertible Notes due in 2025 (see Note 8) have embedded features which were required to be bifurcated upon issuance and then periodically remeasured separately as embedded derivatives. These embedded features include additional make-whole interest payments which may become payable to the lender upon certain events, such as a change in control, upon optional redemption by the Company, or a sale of all or substantially all of the Company’s assets. The embedded features also include additional shares depending on the time to maturity and the stock price which may be added to an early conversion upon certain events. The Company has utilized a convertible lattice model to determine the fair value of the embedded features, which utilizes inputs including the common stock price, volatility of common stock, credit rating, probability of certain triggering events and time to maturity. The fair value measurements of the embedded derivatives are classified as Level 3 financial instruments. At June 30, 2020, the fair value of the embedded features was $3.6 million and has been presented together with the Convertible Notes host instrument on the condensed consolidated balance sheet. Changes in the fair value of the Company’s Level 3 liabilities were as follows: June 30, Balance at December 31, 2019 $ — Additions 1,800 Fair value adjustment 1,796 Balance at June 30, 2020 $ 3,596 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Federal Home Loan Banks [Abstract] | |
Stockholders' Equity | 5. Stockholders’ Equity Series DF-1 The Company’s board of directors has designated 6,310 shares of the authorized 10,000,000 shares of preferred stock, $0.001 par value per share, as Series DF-1 DF-1 DF-1 non-voting DF-1 DF-1 as-converted |
Stock-based Compensation Expens
Stock-based Compensation Expense | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation Expense | 6 Stock-based Compensation Expense 2014 Equity Incentive Plan In July 2014, the Company’s board of directors approved the 2014 Equity Incentive Plan (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. On January 1, 2020, the total number of shares of common stock reserved for issuance increased by 967,064 shares to 9,934,768 shares reserved since the inception of the 2014 Plan. At June 30, 2020, 3,414,261 shares remained available for issuance. A summary of the Company’s stock option activity and related information (options in thousands): Six Months Ended June 30, 2020 Weighted Average Options Exercise Price Outstanding, beginning of period 3,636 $ 23.71 Granted 645 23.96 Exercised (187 ) 16.76 Forfeited (611 ) 27.44 Outstanding, end of period 3,483 23.47 Exercisable 1,724 22.41 As of June 30, 2020, included in the outstanding options was an option subject to both service and market-based vesting conditions to purchase 427,147 shares of the Company’s common stock with an exercise price of $20.44. As of June 30, 2020, these stock options remain unvested. The aggregate pre-tax pre-tax respectively. A summary of the Company’s RSU activity and related information (RSUs in thousands): Six Months Ended June 30, 2020 Weighted Average RSUs Fair Value Outstanding, beginning of period 511 $ 25.62 Awarded 288 24.13 Vested (151 ) 25.47 Forfeited (102 ) 28.35 Outstanding, end of period 546 24.36 As of June 30, 2020, the aggregate pre-tax The Company also offers Performance Stock Units (“PSUs”), subject to both service and market-based vesting conditions. A summary of the Company’s PSU activity and related information (PSUs in thousands): Six Months Ended June 30, 2020 Weighted Average PSUs Fair Value Outstanding, beginning of period 89 $ 14.22 Awarded 103 17.28 Forfeited (15 ) 17.28 Outstanding, end of period 177 15.74 As of June 30, 2020, the aggregate pre-tax Total stock-based compensation expense recognized is as follows (in thousands): Three Months Ended Six 2020 2019 2020 2019 Cost of sales $ 334 $ 246 $ 775 $ 482 Selling, general and administrative 2,862 4,440 6,414 7,414 Research and development 436 811 799 1,470 $ 3,632 $ 5,497 $ 7,988 $ 9,366 As of June 30, 2020, the amount of unearned stock-based compensation currently estimated to be expensed through the year 2024 related to unvested employee stock-based awards was $31.0 million and the weighted average period over which the unearned stock-based compensation is expected to be recognized was 2.5 years. 2014 Employee Stock Purchase Plan In July 2014, the Company’s board of directors approved the 2014 Employee Stock Purchase Plan (“2014 ESPP”). A total of 496,092 shares were initially reserved for issuance under the 2014 ESPP. In June 2018, the Company’s stockholders approved the Amended and Restated 2014 ESPP, increasing the total number of shares of common stock reserved for issuance under the 2014 ESPP by 1,200,000 shares to a total of 1,696,092 shares (the “Amended and Restated 2014 ESPP”) since the inception of the 2014 ESPP. At June 30, 2020, 959,970 shares remained available for issuance and a total of 70,817 shares were issued during the six months ended June 30, 2020. |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 7 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): Three Months Ended Six Months Ended 2020 2019 2020 2019 Common stock options 3,056 4,112 3,056 4,112 Market-based performance stock options 427 — 427 — Restricted stock units 546 536 546 536 Market-based performance stock units 177 — 177 — Employee stock purchase plan shares 72 75 72 75 Stock issuable upon conversion of convertible note 6,309 — 6,309 — 10,587 4,723 10,587 4,723 The Company uses the if-converted method for calculating any potential dilutive effects of the convertible note. The Company did not adjust the net loss for the quarter ended June 30, 2020 to eliminate any interest expense related to the note in the computation of diluted loss per share, or calculate the potential common shares from conversion, as the effects would have been anti-dilutive. The shares presented above represent the maximum number of convertible shares which can be issued subject to the make-whole increase to the conversion rate upon certain events. |
Convertible Notes
Convertible Notes | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Notes | 8 Convertible Notes On May 11, 2020, in order to finance the Company’s commercial activities as well as for general corporate purposes, the Company entered into a Facility Agreement (the “Facility Agreement”) by and among the Company, as borrower, and Deerfield Partners, L.P. (“Deerfield”), as agent for itself and the lenders, providing for the issuance and sale by the Company to Deerfield of $ million of principal amount of % unsecured senior convertible notes (the “Convertible Notes”) upon the terms and conditions set forth in the Facility Agreement (the “Deerfield Financing”). The $65.0 million principal amount of the Convertible Notes is not payable until the maturity date of May 9, 2025, unless earlier converted or redeemed. The Convertible Notes are convertible into shares of the Company’s common stock, at a conversion rate of 64.3501 shares per $1,000 principal amount of Convertible Notes, which represents an initial conversion price of $ . The net proceeds from the sale of the Convertible Notes were approximately $62.0 million after deducting the expenses payable by the Company. The Convertible Notes bear interest at 4.0% per annum, payable quarterly in arrears on July 1, October 1, January 1 and April 1 of each year, commencing July 1, 2020. The Convertible Notes are convertible at any time at the option of the holders thereof, provided that Deerfield is prohibited from converting the Convertible Notes into shares of common stock if, as a result of such conversion, the converting holder (together with certain affiliates and “group” members) would beneficially own more than 4.985% of the total number of shares of common stock then issued and outstanding (the “Beneficial Ownership Cap”). Pursuant to the Convertible Notes, the holders of the Convertible Notes have the option to demand repayment of all outstanding principal, any unpaid interest accrued thereon, and make - indebtedness. On or after the date that is the second anniversary of the issuance date, the Company may redeem up to $32.5 million of the • the volume weighted average price of the common stock on each of any twenty (20) trading days during a period of thirty (30) consecutive trading days ending on the date which an optional redemption notice is delivered; • the volume weighted average price of the common stock on the last trading day of such period; and • the closing price of the common stock on the last trading day of such period, in each case, are greater than 150% of the conversion price. On or after the date that is the third anniversary of the issuance date, the Company may redeem up to the entire $65.0 million original principal amount of Convertible Notes if: • the volume weighted average price of the common stock on each of any twenty (20) trading days during a period of thirty (30) consecutive trading days ending on the date which an optional redemption notice is delivered; • the volume weighted average price of the common stock on the last trading day of such period; and • the closing price of the common stock on the last trading day of such period, in each case, are greater than 200% of the conversion price. The Company is obligated to notify the holders of the Convertible Notes no less than ten trading days nor more than sixty calendar days prior to any such redemption. During the period from the date on which the Company delivers an optional redemption notice until the date the optional redemption price is paid to holders, if a holder elects to convert its Convertible Notes, it will receive the shares otherwise issuable upon conversion of the Convertible Notes, plus an additional number of shares determined in accordance with the Convertible Notes. To the extent the holder would be prohibited due to the Beneficial Ownership Cap to convert its Convertible Notes during such period, such holder would be entitled to convert all or any portion of its Convertible Notes into shares of Series DF-1 Preferred Stock of the Company (such conversion, a “Preferred Stock Conversion”). The number of Series DF-1 Preferred Stock issuable upon a Preferred Stock Conversion shall be determined by dividing the number of shares of common stock of the Company that it would be entitled to receive from such conversion by 1,000. See Note 5 for discussion on the rights and privileges of Series DF-1 Preferred Stock. Upon any conversion of the Convertible Notes in connection with a major transaction, redemption of the Convertible Notes in connection with a major transaction or an optional redemption, holders of the Convertible Notes will also be entitled to a make-whole increase to the conversion rate or make-whole interest provision. The Company is subject to a number of affirmative and restrictive covenants pursuant to the Facility Agreement, including covenants regarding compliance with applicable laws and regulations, maintenance of property, payment of taxes, maintenance of insurance, business combinations, incurrence of additional indebtedness, prepayments of other unsecured indebtedness and transactions with affiliates, among other covenants. The Company is also restricted from paying dividends or making other distributions or payments on its capital stock, subject to limited exceptions. Certain features in the Convertible Notes are accounted for as embedded derivatives bifurcated from the principal balance of the Convertible Notes. See Note 4 for further discussion on the valuation of the embedded derivatives . Upon issuance, the fair value of the embedded derivatives was $1.8 million . A corresponding convertible debt discount and transaction costs of $1.8 million and $3.0 million, respectively were recorded on the issuance date and are netted against the principal amount of the convertible notes. Transaction costs related to the issuance of the convertible notes primarily comprised of underwriters’, legal, accounting and other professional fees. As of June 30, 2020, the net carrying amount of the convertible notes is as follows: June 30, Outstanding principal amount of convertible notes $ 65,000 Unamortized debt discount and transaction costs (4,722 ) Fair value of embedded derivatives 3,596 Convertible notes, net $ 63,874 The convertible debt discount and transaction costs are being amortized to expense over the term of the Notes, at an effective interest rate of approximately 5.8 accretion of the convertible debt discount and amortization of debt issuance costs was $ 0.1 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies 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, On 20 , the plaintiff filed a |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Preparation | Basis of Preparation The condensed 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 condensed consolidated financial statements include the accounts of the Company and its consolidated subsidiary. All intercompany balances and transactions have been eliminated in consolidation. The interim financial data as of June 30, 2020, is unaudited and is not necessarily indicative of the results for the full year. In the opinion of the Company’s management, the interim data includes only normal and recurring adjustments necessary for a fair presentation of the Company’s financial results for the three and six months ended June 30, 2020 and 2019. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to SEC rules and regulations relating to interim financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K |
Reclassifications | Reclassifications Certain prior year amounts associated with fin i have been reclassi f to w to conform to the current year presentation. These reclassifications had no impact on net earnings or financial position. |
Risks and Uncertainties | Risks and Uncertainties The Company is subject to risks and uncertainties resulting from the COVID-19 pandemic. The Company cannot predict the extent or duration of the impact of the COVID-19 pandemic on its financial and operating results, as the information regarding the current environment is evolving rapidly. The Company’s business has and will be impacted by its patients’ decisions to undergo sinus surgeries as ENT ASC and office procedure volumes recover and the Company resumes its manufacturing operations as a result of the ease of certain restrictions of the shelter-in-place orders issued by local and federal authorities . Furthermore, the COVID-19 pandemic has led to severe disruption and volatility in global capital markets and increased economic uncertainty and instability. The impact of this on the global economy has been and may continue to be severe. The magnitude of the impact of the COVID-19 re-occurrence shelter-in-place COVID-19 |
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, the allowance for doubtfu l associated with the C o 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, including the currently anticipated impact of the COVID-19 pandemic, 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Effective January 1, 2020, the Company adopted ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments 2016-13”). 2016-13 available-for-sale 2016-13 |
Significant Accounting Policies | Significant Accounting Policies There have been no significant changes to the accounting policies during the six months ended June 30, 2020, as compared to the significant accounting policies described in Note 2 of the “Notes to Consolidated Financial Statements” in the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K |
Inventories | Inventories Inventories are valued at the lower of cost, computed on a first-in, first-out COVID-19 Company recorded $ million and $ million, respectively, for idle facility expense due to its inability to use its manufacturing facility due to the shelter-in-place by $ million during the six months ended June 30, 2020. There was no reserve for excess and obsolete inventory recorded in the three months ended June 30, 2020 . COVID-19 |
Credit Losses | Credit Losses The Company is exposed to credit losses primarily through receivables from customers and collaborators and through its available-for-sale COVID-19 . |
Restructuring Activities | Restructuring Activities During the three months ended June 30, 2020, as a response to the COVID-19 pre-emptive |
Embedded Derivatives Related to Convertible Debt Instruments | Embedded Derivatives Related to Convertible Debt Instruments Embedded derivatives that are required to be bifurcated from s |
Composition of Certain Financ_2
Composition of Certain Financial Statement Items (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable | Accounts Receivabl e June 30, December 31, Accounts receivable $ 7,925 $ 19,244 Allowance for doubtful accounts (272 ) (131 ) $ 7,653 $ 19,113 |
Components of Inventory | Inventories, net (in thousands): June 30, December 31, Raw materials $ 1,782 $ 2,830 Work-in-process 5,601 5,878 Finished goods 6,624 8,292 $ 14,007 $ 17,000 |
Schedule of operating leases liabilities | Operating lease liabilities (in thousands): June 30, December 31, Current portion presented in other current liabilities $ 2,414 $ 1,336 Noncurrent portion presented in operating lease liabilities 9,645 10,886 $ 12,059 $ 12,222 |
Disaggregation of Revenue | Revenue (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 PROPEL family of products $ 9,481 $ 25,563 $ 28,571 $ 51,295 SINUVA 299 1,096 1,035 2,037 $ 9,780 $ 26,659 $ 29,606 $ 53,332 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Cash, Cash Equivalents and Available-for-Sale Investments Measured at Fair Value on Recurring Basis | 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): Reported as: Amortized Cost Gross Unrealized Estimated Fair V Cash and cash equivalents Short-term June 30, 2020 Gains Losses Level 1: Cash $ 7,500 $ — $ — $ 7,500 $ 7,500 $ — Money market funds 16,959 — — 16,959 16,959 — 24,459 — — 24,459 24,459 — Level 2: U.S. treasury bills 64,424 5 (1 ) 64,428 4,999 59,429 Corporate debt securities 21,999 61 (6 ) 22,054 — 22,054 U.S. government agency bonds 11,395 — — 11,395 — 11,395 Commercial paper 13,459 36 — 13,495 — 13,495 111,277 102 (7 ) 111,372 4,999 106,373 $ 135,736 $ 102 $ (7 ) $ 135,831 $ 29,458 $ 106,373 Reported as: Amortized Cost Gross Unrealized Estimated Fair Value Cash and cash equivalents Short-term investments December 31, 2019 Gains Losses Level 1: Cash $ 11,885 $ — $ — $ 11,885 $ 11,885 $ — Money market funds 8,767 — — 8,767 8,767 — 20,652 — — 20,652 20,652 — Level 2: Corporate debt securities 50,137 33 (1 ) 50,169 — 50,169 Commercial paper 19,796 21 — 19,817 — 19,817 69,933 54 (1 ) 69,986 — 69,986 $ 90,585 $ 54 $ (1 ) $ 90,638 $ 20,652 $ 69,986 |
Summary of changes in the fair value of derivative liabilities | Changes in the fair value of the Company’s Level 3 liabilities were as follows: June 30, Balance at December 31, 2019 $ — Additions 1,800 Fair value adjustment 1,796 Balance at June 30, 2020 $ 3,596 |
Stock-based Compensation Expen
Stock-based Compensation Expense (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Federal Home Loan Banks [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity and related information (options in thousands): Six Months Ended June 30, 2020 Weighted Average Options Exercise Price Outstanding, beginning of period 3,636 $ 23.71 Granted 645 23.96 Exercised (187 ) 16.76 Forfeited (611 ) 27.44 Outstanding, end of period 3,483 23.47 Exercisable 1,724 22.41 |
Summary of Restricted Stock Units Activity | A summary of the Company’s RSU activity and related information (RSUs in thousands): Six Months Ended June 30, 2020 Weighted Average RSUs Fair Value Outstanding, beginning of period 511 $ 25.62 Awarded 288 24.13 Vested (151 ) 25.47 Forfeited (102 ) 28.35 Outstanding, end of period 546 24.36 |
Summary of Performance Stock Units Activity | A summary of the Company’s PSU activity and related information (PSUs in thousands): Six Months Ended June 30, 2020 Weighted Average PSUs Fair Value Outstanding, beginning of period 89 $ 14.22 Awarded 103 17.28 Forfeited (15 ) 17.28 Outstanding, end of period 177 15.74 |
Summary of Stock Based Compensation Expense | Total stock-based compensation expense recognized is as follows (in thousands): Three Months Ended Six 2020 2019 2020 2019 Cost of sales $ 334 $ 246 $ 775 $ 482 Selling, general and administrative 2,862 4,440 6,414 7,414 Research and development 436 811 799 1,470 $ 3,632 $ 5,497 $ 7,988 $ 9,366 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | 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): Three Months Ended Six Months Ended 2020 2019 2020 2019 Common stock options 3,056 4,112 3,056 4,112 Market-based performance stock options 427 — 427 — Restricted stock units 546 536 546 536 Market-based performance stock units 177 — 177 — Employee stock purchase plan shares 72 75 72 75 Stock issuable upon conversion of convertible note 6,309 — 6,309 — 10,587 4,723 10,587 4,723 |
Convertible Notes (Tables)
Convertible Notes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of net carrying amount of the convertible notes | As of June 30, 2020, the net carrying amount of the convertible notes is as follows: June 30, Outstanding principal amount of convertible notes $ 65,000 Unamortized debt discount and transaction costs (4,722 ) Fair value of embedded derivatives 3,596 Convertible notes, net $ 63,874 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($)Employees | Jun. 30, 2020USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||
Idle Expenses in Inventory | $ 4.4 | $ 5.5 |
Inventory Reserve | 0.8 | |
Increase in Reserve for Credit Losses | $ 0.1 | |
Employee Severance [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Employee severance cost | $ 0.2 | |
Employee Severance [Member] | Employee Termination [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Reduction of labour force | Employees | 96 | |
Percentage in reduction of labor force | 25.00% | |
Employee Severance [Member] | Furloughed Employees [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Reduction of labour force | Employees | 18 | |
Percentage in reduction of labor force | 5.00% |
Composition of Certain Financ_3
Composition of Certain Financial Statement Items - Accounts Receivable (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | |||
Accounts receivable | $ 7,925 | $ 19,244 | |
Allowance for doubtful accounts | (272) | (131) | |
Accounts receivable, net | $ 7,653 | $ 19,113 | [1] |
[1] | Amounts have been derived from the December 31, 2019 audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. |
Composition of Certain Financ_4
Composition of Certain Financial Statement Items - Components of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 1,782 | $ 2,830 | |
Work-in-process | 5,601 | 5,878 | |
Finished goods | 6,624 | 8,292 | |
Inventory | $ 14,007 | $ 17,000 | [1] |
[1] | Amounts have been derived from the December 31, 2019 audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. |
Composition of Certain Financ_5
Composition of Certain Financial Statement Items - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Capitalized stock-based compensation expense | $ 0.7 | $ 0.9 |
Composition of Certain Financ_6
Composition of Certain Financial Statement Items - Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Operating Lease, Liability [Abstract] | |||
Current portion presented in other current liabilities | $ 2,414 | $ 1,336 | |
Noncurrent portion presented in operating lease liabilities | 9,645 | 10,886 | [1] |
Total | $ 12,059 | $ 12,222 | |
[1] | Amounts have been derived from the December 31, 2019 audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. |
Composition of Certain Financ_7
Composition of Certain Financial Statement Items - Disaggregation of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | $ 9,780 | $ 26,659 | $ 29,606 | $ 53,332 |
Propel Family of products [Member] | ||||
Revenues | 9,481 | 25,563 | 28,571 | 51,295 |
Sinuva [Member] | ||||
Revenues | $ 299 | $ 1,096 | $ 1,035 | $ 2,037 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Cash, Cash Equivalents and Short-Term Investments Available-for-Sale, by Type of Instrument (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Net Investment [Line Items] | |||||
Cash, cash equivalents, Estimated Fair Value | $ 29,458 | $ 20,652 | [1] | $ 9,358 | $ 9,464 |
Short-term investments, Estimated Fair Value | 106,373 | 69,986 | [1] | ||
Fair Value, Measurements, Recurring [Member] | |||||
Net Investment [Line Items] | |||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 135,736 | 90,585 | |||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains | 102 | 54 | |||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses | (7) | (1) | |||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 135,831 | 90,638 | |||
Cash, cash equivalents, Estimated Fair Value | 29,458 | 20,652 | |||
Short-term investments, Estimated Fair Value | 106,373 | 69,986 | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Net Investment [Line Items] | |||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 24,459 | 20,652 | |||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 24,459 | 20,652 | |||
Cash, cash equivalents, Estimated Fair Value | 24,459 | 20,652 | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Net Investment [Line Items] | |||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 111,277 | 69,933 | |||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains | 102 | 54 | |||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses | (7) | (1) | |||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 111,372 | 69,986 | |||
Cash, cash equivalents, Estimated Fair Value | 4,999 | ||||
Short-term investments, Estimated Fair Value | 106,373 | 69,986 | |||
Cash [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Net Investment [Line Items] | |||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 7,500 | 11,885 | |||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 7,500 | 11,885 | |||
Cash, cash equivalents, Estimated Fair Value | 7,500 | 11,885 | |||
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Net Investment [Line Items] | |||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 16,959 | 8,767 | |||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 16,959 | 8,767 | |||
Cash, cash equivalents, Estimated Fair Value | 16,959 | 8,767 | |||
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Net Investment [Line Items] | |||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 21,999 | 50,137 | |||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains | 61 | 33 | |||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses | (6) | (1) | |||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 22,054 | 50,169 | |||
Short-term investments, Estimated Fair Value | 22,054 | 50,169 | |||
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Net Investment [Line Items] | |||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 13,459 | 19,796 | |||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains | 36 | 21 | |||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 13,495 | 19,817 | |||
Short-term investments, Estimated Fair Value | 13,495 | $ 19,817 | |||
U.S. Treasury Bills [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Net Investment [Line Items] | |||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 64,424 | ||||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains | 5 | ||||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses | (1) | ||||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 64,428 | ||||
Cash, cash equivalents, Estimated Fair Value | 4,999 | ||||
Short-term investments, Estimated Fair Value | 59,429 | ||||
U.S. Government Agency Bonds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Net Investment [Line Items] | |||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 11,395 | ||||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 11,395 | ||||
Short-term investments, Estimated Fair Value | $ 11,395 | ||||
[1] | Amounts have been derived from the December 31, 2019 audited consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Summary of changes in the fair value of derivative liabilities (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Net Investment Income [Line Items] | |
Fair value adjustment | $ 1,796 |
Ending balance | 3,596 |
Fair Value, Inputs, Level 3 [Member] | |
Net Investment Income [Line Items] | |
Beginning balance | 0 |
Additions | 1,800 |
Fair value adjustment | 1,796 |
Ending balance | $ 3,596 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Transfer of assets from level 1 to level 2 | $ 0 | $ 0 |
Transfer of liabilities from level 1 to level 2 | 0 | 0 |
Transfer of assets from level 2 to level 1 | 0 | 0 |
Transfer of liabilities from level 2 to level 1 | 0 | 0 |
Investments with a contractual maturity of greater than one year | 0 | 0 |
Other-than-temporary impairment charges | 0 | $ 0 |
Fair value of the derivative liabilities | 70,700,000 | |
Embedded Derivative Liability, Fair Value | $ 3,596,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Preferred stock, shares authorized | 9,994 | 10,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
SeriesDF1 Convertible Preferred Stock [Member] | ||
Preferred stock, shares authorized | 6,310 | |
Preferred stock, par value | $ 0.001 | |
Share of conversion rate | 1,000 | |
Conversion of stock, shares issued | 6,309,459 | |
Preferred Stock, Conversion Basis | Each share of Series DF-1 Preferred Stock is non-voting and convertible to 1,000 shares of the Company’s Common Stock. |
Stock-based Compensation Expe_2
Stock-based Compensation Expense - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2020 | Jun. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jul. 14, 2014 |
Weighted average period for unearned stock-based compensation to be recognized | 2 years 6 months | ||||
Unearned stock-based compensation | $ 31 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Aggregate intrinsic value, outstanding | $ 7.4 | ||||
Weighted-average remaining contractual term, outstanding | 2 years 1 month 6 days | ||||
Common Stock Options [Member] | |||||
Aggregate intrinsic value of options outstanding | $ 1.2 | ||||
Aggregate intrinsic value of options exercised | $ 1.2 | $ 8.5 | |||
Weighted-average remaining contractual term of options outstanding | 7 years 10 months 24 days | ||||
Weighted-average remaining contractual term of options exercisable | 6 years 8 months 12 days | ||||
Aggregate intrinsic value of options outstanding and exercisable | $ 1 | ||||
Options granted | 645,000 | ||||
Options price, granted | $ 23.96 | ||||
Performance Shares [Member] | |||||
Aggregate intrinsic value, outstanding | $ 2.4 | ||||
Weighted-average remaining contractual term, outstanding | 2 years 6 months | ||||
Market Based Vesting Option [Member] | |||||
Options granted | 427,147 | ||||
Options price, granted | $ 20.44 | ||||
Employee stock purchase plan shares [Member] | |||||
Shares reserved for issuance | 959,970 | ||||
Common stock, capital shares reserved for future issuance, increase during period | 1,200,000 | ||||
Shares authorized for future issuance | 1,696,092 | 496,092 | |||
Shares Issued | 70,817 | ||||
2014 Equity Incentive Plan [Member] | |||||
Percentage of shares outstanding | 3.00% | ||||
Shares reserved for issuance | 9,934,768 | 3,414,261 | |||
Common stock, capital shares reserved for future issuance, increase during period | 967,064 |
Stock-based Compensation Expe_3
Stock-based Compensation Expense - Summary of Stock Option Activity (Detail) - Common Stock Options [Member] - $ / shares shares in Thousands | 6 Months Ended |
Jun. 30, 2020 | |
Class of Stock [Line Items] | |
Options outstanding, beginning of period | 3,636 |
Options granted | 645 |
Options exercised | (187) |
Options forfeited | (611) |
Options outstanding, end of period | 3,483 |
Options exercisable | 1,724 |
Options price, outstanding, beginning of period | $ 23.71 |
Options price, granted | 23.96 |
Options price, exercised | 16.76 |
Options price, forfeited | 27.44 |
Options price, outstanding, end of period | 23.47 |
Options price, exercisable | $ 22.41 |
Stock-based Compensation Expe_4
Stock-based Compensation Expense - Summary of Restricted Stock Units Activity (Detail) - Restricted stock units [Member] shares in Thousands | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, beginning of period | shares | 511 |
Awarded | shares | 288 |
Vested | shares | (151) |
Forfeited | shares | (102) |
Outstanding, end of period | shares | 546 |
Outstanding, beginning of period | $ / shares | $ 25.62 |
Awarded | $ / shares | 24.13 |
Vested | $ / shares | 25.47 |
Forfeited | $ / shares | 28.35 |
Outstanding, end of period | $ / shares | $ 24.36 |
Stock-based Compensation Expe_5
Stock-based Compensation Expense - Summary of Performance Stock Unit Activity (Detail) - Performance Shares [Member] shares in Thousands | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, beginning of period | shares | 89 |
Awarded | shares | 103 |
Forfeited | shares | (15) |
Outstanding, end of period | shares | 177 |
Outstanding, beginning of period | $ / shares | $ 14.22 |
Awarded | $ / shares | 17.28 |
Forfeited | $ / shares | 17.28 |
Outstanding, end of period | $ / shares | $ 15.74 |
Stock-based Compensation Expe_6
Stock-based Compensation Expense - Summary of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 3,632 | $ 5,497 | $ 7,988 | $ 9,366 |
Cost of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 334 | 246 | 775 | 482 |
Selling, General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2,862 | 4,440 | 6,414 | 7,414 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 436 | $ 811 | $ 799 | $ 1,470 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Potentially Dilutive Securities Outstanding Excluded from the Computations of Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10,587 | 4,723 | 10,587 | 4,723 |
Common Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,056 | 4,112 | 3,056 | 4,112 |
Market Based Performace Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 427 | 427 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 546 | 536 | 546 | 536 |
Market Based Performace Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 177 | 177 | ||
Employee stock purchase plan shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 72 | 75 | 72 | 75 |
Convertible Debt Securities [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6,309 | 6,309 |
Convertible Notes- Additional I
Convertible Notes- Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | May 11, 2020 | Jun. 30, 2020 | May 11, 2023 | May 11, 2022 |
Proceeds from Issuance of Private Placement | $ 62,000 | |||
Debt Instrument, Convertible, Conversion Price | $ 15.54 | |||
Percentage of shares held after conversion of convertible notes | 4.985% | |||
Debt issuance costs, net | $ 3,000 | |||
Stock conversion rate | 64.3501 | |||
Debt instrument, unamortized discount | $ 1,800 | |||
Debt instrument, interest rate, effective percentage | 5.80% | |||
Amortization of the convertible debt discount and issuance costs | $ 117 | |||
Accured interest | 400 | |||
Embedded Derivative Financial Instruments [Member] | ||||
Embedded derivative liability | $ 1,800 | |||
Debt Instrument, Redemption, Period One [Member] | Minimum [Member] | ||||
Redemption of Convertible Notes | $ 32,500 | |||
Debt Instrument, Redemption, Period One [Member] | Maximum [Member] | ||||
Redemption of Convertible Notes | $ 65,000 | |||
Unsecured Senior Convertible Notes [Member] | ||||
Debt instrument interest rate | 4.00% | |||
Issuance Of Private Placement | $ 65,000 |
Convertible Notes - Summary of
Convertible Notes - Summary of net carrying amount of the convertible notes (Detail) $ in Thousands | Jun. 30, 2020USD ($) |
Debt Disclosure [Abstract] | |
Outstanding principal amount of convertible notes | $ 65,000 |
Unamortized debt discount and transaction costs | (4,722) |
Fair value of embedded derivatives | 3,596 |
Convertible notes, net | $ 63,874 |