Document And Entity Information
Document And Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 07, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PACB | ||
Entity Registrant Name | PACIFIC BIOSCIENCES OF CALIFORNIA, INC. | ||
Entity Central Index Key | 1,299,130 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 354,484 | ||
Entity Common Stock, Shares Outstanding | 85,730,997 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 33,629 | $ 36,449 |
Investments | 48,641 | 64,899 |
Accounts receivable | 5,245 | 3,406 |
Inventory | 10,955 | 11,335 |
Prepaid expenses and other current assets | 12,071 | 1,671 |
Total current assets | 110,541 | 117,760 |
Property and equipment, net | 8,548 | 6,601 |
Long-term restricted cash | 4,500 | |
Other long-term assets | 7,518 | 29 |
Total assets | 131,107 | 124,390 |
Current liabilities | ||
Accounts payable | 4,749 | 5,608 |
Accrued expenses | 15,551 | 11,441 |
Deferred service revenue, current | 6,815 | 6,121 |
Deferred contractual revenue, current | 10,822 | 6,785 |
Other liabilities, current | 241 | 1,534 |
Total current liabilities | 38,178 | 31,489 |
Deferred service revenue, non-current | 1,143 | 1,129 |
Deferred contractual revenue, non-current | 1,312 | 19,735 |
Other liabilities, non-current | 1,386 | 2,153 |
Notes payable | 14,948 | 13,991 |
Financing derivative | 600 | 944 |
Total liabilities | $ 57,567 | $ 69,441 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity | ||
Preferred Stock, $0.001 par value: Authorized 50,000 shares; No shares issued or outstanding | ||
Common Stock, $0.001 par value: Authorized 1,000,000 shares; Issued and outstanding 79,983 and 73,927 shares at December 31, 2015 and 2014, respectively | $ 80 | $ 74 |
Additional paid-in-capital | 786,636 | 736,339 |
Accumulated other comprehensive income (loss) | (7) | 9 |
Accumulated deficit | (713,169) | (681,473) |
Total stockholders' equity | 73,540 | 54,949 |
Total liabilities and stockholders' equity | $ 131,107 | $ 124,390 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets [Abstract] | ||
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, shares issued | 79,983,000 | 73,927,000 |
Common Stock, shares outstanding | 79,983,000 | 73,927,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations And Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue: | |||
Product revenue | $ 37,502 | $ 35,299 | $ 20,039 |
Service and other revenue | 10,896 | 8,511 | 6,446 |
Contractual revenue | 44,384 | 16,784 | 1,696 |
Total revenue | 92,782 | 60,594 | 28,181 |
Cost of Revenue: | |||
Cost of product revenue | 30,704 | 29,626 | 15,706 |
Cost of service and other revenue | 8,628 | 7,566 | 6,056 |
Total cost of revenue | 39,332 | 37,192 | 21,762 |
Gross profit | 53,450 | 23,402 | 6,419 |
Operating Expense: | |||
Research and development | 60,440 | 48,230 | 45,217 |
Sales, general and administrative | 45,187 | 38,026 | 38,745 |
Gain on lease amendments | (23,043) | ||
Total operating expense | 82,584 | 86,256 | 83,962 |
Operating loss | (29,134) | (62,854) | (77,543) |
Interest expense | (2,926) | (2,828) | (2,478) |
Other income (expense), net | 364 | (478) | 728 |
Net loss | (31,696) | (66,160) | (79,293) |
Other comprehensive loss: | |||
Unrealized loss on investments | (16) | (5) | (16) |
Comprehensive loss | $ (31,712) | $ (66,165) | $ (79,309) |
Net loss per share: | |||
Basic and diluted net loss per share | $ (0.42) | $ (0.94) | $ (1.26) |
Shares used in computing basic and diluted net loss per share | 75,614 | 70,475 | 62,784 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2012 | $ 56 | $ 645,316 | $ 30 | $ (536,020) | $ 109,382 |
Balance, shares at Dec. 31, 2012 | 56,170 | ||||
Net loss | (79,293) | (79,293) | |||
Other comprehensive loss | (16) | (16) | |||
Issuance of common stock in conjunction with equity plans | $ 2 | 3,077 | 3,079 | ||
Issuance of common stock in conjunction with equity plans, shares | 1,795 | ||||
Issuance of common stock in conjunction with "at-the-market" offering, net of issuance costs | $ 8 | 19,919 | 19,927 | ||
Issuance of common stock in conjunction with "at-the-market" offering, net of issuance costs, shares | 8,310 | ||||
Issuance of warrants in conjunction with debt facility, net of issuance costs | 6,196 | 6,196 | |||
Vesting of Common Stock options early exercised | 9,905 | 9,905 | |||
Stock-based compensation expense | 9,905 | 9,905 | |||
Balance at Dec. 31, 2013 | $ 66 | 684,413 | 14 | (615,313) | 69,180 |
Balance, shares at Dec. 31, 2013 | 66,275 | ||||
Net loss | (66,160) | (66,160) | |||
Other comprehensive loss | (5) | (5) | |||
Issuance of common stock in conjunction with equity plans | $ 2 | 3,966 | 3,968 | ||
Issuance of common stock in conjunction with equity plans, shares | 1,901 | ||||
Issuance of common stock in conjunction with "at-the-market" offering, net of issuance costs | $ 6 | 38,017 | 38,023 | ||
Issuance of common stock in conjunction with "at-the-market" offering, net of issuance costs, shares | 5,751 | ||||
Vesting of Common Stock options early exercised | 9,943 | 9,943 | |||
Stock-based compensation expense | 9,943 | 9,943 | |||
Balance at Dec. 31, 2014 | $ 74 | 736,339 | 9 | (681,473) | $ 54,949 |
Balance, shares at Dec. 31, 2014 | 73,927 | 73,927 | |||
Net loss | (31,696) | $ (31,696) | |||
Other comprehensive loss | (16) | (16) | |||
Issuance of common stock in conjunction with equity plans | $ 2 | 7,361 | 7,363 | ||
Issuance of common stock in conjunction with equity plans, shares | 1,981 | ||||
Issuance of common stock in conjunction with "at-the-market" offering, net of issuance costs | $ 4 | 29,096 | 29,100 | ||
Issuance of common stock in conjunction with "at-the-market" offering, net of issuance costs, shares | 4,075 | ||||
Vesting of Common Stock options early exercised | 13,840 | 13,840 | |||
Stock-based compensation expense | 13,840 | 13,840 | |||
Balance at Dec. 31, 2015 | $ 80 | $ 786,636 | $ (7) | $ (713,169) | $ 73,540 |
Balance, shares at Dec. 31, 2015 | 79,983 | 79,983 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net loss | $ (31,696) | $ (66,160) | $ (79,293) |
Adjustments to reconcile net loss to net cash used in operating activities | |||
Depreciation and amortization | 3,677 | 4,221 | 5,648 |
Amortization of debt discount and financing costs | 957 | 793 | 595 |
Stock-based compensation | 13,840 | 9,943 | 9,905 |
Noncash portion of gain on lease amendments | (3,043) | ||
Other items | (230) | 507 | (352) |
Changes in assets and liabilities | |||
Accounts receivable | (1,738) | (660) | 76 |
Inventory | (2,466) | (1,285) | (60) |
Prepaid expenses and other assets | (17,889) | (224) | 840 |
Accounts payable | (716) | 3,891 | (1,271) |
Accrued expenses | 5,732 | 3,536 | 1,327 |
Deferred service revenue | 708 | 2,686 | 386 |
Deferred contractual revenue | (14,386) | (6,784) | 33,304 |
Other liabilities | (639) | (1,932) | (938) |
Net cash used in operating activities | (47,889) | (51,468) | (29,833) |
Cash flows from investing activities | |||
Purchase of property and equipment | (3,009) | (1,609) | (909) |
Proceeds from disposal of property and equipment | 36 | ||
Long-term restricted cash | (4,500) | ||
Purchase of investments | (84,579) | (126,413) | (201,547) |
Sales of investments | 8,317 | 100 | |
Maturities of investments | 92,341 | 147,586 | 169,239 |
Net cash provided by (used in) investing activities | 8,606 | 19,564 | (33,117) |
Cash flows from financing activities | |||
Proceeds from issuance of common stock from equity plans | 7,363 | 3,968 | 3,079 |
Proceeds from issuance of common stock from "at-the-market" offering, net of issuance costs | 29,100 | 38,023 | 19,927 |
Proceeds from issuance of debt agreement, net of issuance costs | 19,766 | ||
Net cash provided by financing activities | 36,463 | 41,991 | 42,772 |
Net increase (decrease) in cash and cash equivalents | (2,820) | 10,087 | (20,178) |
Cash and cash equivalents at beginning of period | 36,449 | 26,362 | 46,540 |
Cash and cash equivalents at end of period | 33,629 | 36,449 | 26,362 |
Supplemental disclosure of cash flow information | |||
Interest paid | 1,794 | $ 1,794 | 1,165 |
Supplemental disclosure of non-cash investing and financing activities | |||
Inventory transferred to (from) property and equipment | $ 2,846 | $ (558) |
Overview
Overview | 12 Months Ended |
Dec. 31, 2015 | |
Overview [Abstract] | |
Overview | NOTE 1 . OVERVIEW We design, develop and manufacture sequencing systems to help scientists resolve genetically complex problems. Based on our novel Single Molecule, Real-Time (SMRT ® ) Sequencing technology, our products enable: de novo genome assembly to finish genomes in order to more fully identify, annotate and decipher genomic structures; full-length transcript analysis to improve annotations in reference genomes, characterize alternatively spliced isoforms and find novel genes; targeted sequencing to more comprehensively characterize genetic variations; and DNA base modification identification to help characterize epigenetic regulation and DNA damage. Our technology combines very high consensus accuracy and long read lengths with the ability to detect real-time kinetic information. In September 2015, we announced that we had launched a new nucleic acid sequencing platform, the PacBio Sequel™ System (the “Sequel System”), which will provide higher throughput, more scalability, a reduced footprint and lower sequencing project costs compared to the PacBio ® RS II System, while maintaining the existing benefits of our SMRT Technology. The names “Pacific Biosciences,” “PacBio,” “SMRT,” “SMRTbell,” “Sequel” and our logo are our trademarks. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or U.S. GAAP, as set forth in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. The consolidated financial statements include the accounts of Pacific Biosciences and our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Translation adjustments resulting from translating foreign subsidiaries’ results of operations and assets and liabilities into U.S. dollars are immaterial for all periods presented. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the financial statements. Our estimates include, but are not limited to, the valuation of inventory, revenue valuation, the valuation of a financing derivative and long-term notes, the valuation and recognition of share-based compensation, the delivery period for collaboration agreements, the useful lives assigned to long-lived assets, and the computation provisions for income taxes. Actual results could differ materially from these estimates. During 2013 we entered into a Development, Commercialization and License Agreement (the “Roche Agreement”) with F. Hoffman-La Roche Ltd (“Roche”) and received a non-refundable up-front payment of $35.0 million. Revenue for the year ended December 31, 2014 included f our quarterly periods of amortization of $1.7 million from the non-refundable up-front payment of $35.0 million. D uring the first quarter of 2015, we revised the estimated period over which the delivery of elements pursuant to the Roche Agreement is expected to occur, due to an increased level of certainty regarding the development period. As a result, we are, on a prospective basis, recognizing the remaining deferred contractual revenue associated with the upfront payment received under the Roche Agreement over the revised estimated remaining development period. For the year ended December 31, 2015, this change in estimate increased contractual revenue by $7.6 million , and decreased our basic and diluted net loss per share by $0.10 per share. Fair Value of Financial Instruments The carrying amount of our accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses and other liabilities, current, approximate fair value due to their short maturities. The carrying value of our other liabilities, non-current, approximates fair value due to the time to maturity and prevailing market rates. The fair value hierarchy established under U.S. GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are as follows: • Level 1: quoted prices in active markets for identical assets or liabilities; • Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We consider an active market as one in which transactions for the asset or liability occurs with sufficient frequency and volume to provide pricing in formation on an ongoing basis. Conversely, we view an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our non-performance risk, or that of our counterparty, is considered in determining the fair values of liabilities and assets, respectively. Our cash deposits and money market funds are classified within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. Our investments are classified as Level 2 instruments based on market pricing and other observable inputs. None of our investments are classified within Level 3 of the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the entire fair value measurement requires management to make judgments and consider factors specific to the asset or liability. Assets and Liabilities M easu red at Fair Value on a Recurring B asis The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis as of December 31, 201 5 and 201 4 , respectively (in thousands): December 31, 2015 December 31, 2014 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents: Cash and money market funds $ 22,034 $ — $ — $ 22,034 $ 21,952 $ — $ — $ 21,952 Commercial paper — 8,595 — 8,595 — 14,497 — 14,497 US government & agency securities — 3,000 — 3,000 — — — — Total cash and cash equivalents 22,034 11,595 — 33,629 21,952 14,497 — 36,449 Investments: Commercial paper — 15,903 — 15,903 — 43,653 — 43,653 Corporate debt securities — 1,265 — 1,265 — 8,173 — 8,173 US government & agency securities — 28,136 — 28,136 Asset backed securities — 3,337 — 3,337 — 13,073 — 13,073 Total investments — 48,641 — 48,641 — 64,899 — 64,899 Long-term restricted cash: Cash 4,500 — — 4,500 — — — — Total assets measured at fair value $ 26,534 $ 60,236 $ — $ 86,770 $ 21,952 $ 79,396 $ — $ 101,348 Liabilities Financing derivative $ — $ — $ 600 $ 600 $ — $ — $ 944 $ 944 Total liabilities measured at fair value $ — $ — $ 600 $ 600 $ — $ — $ 944 $ 944 The estimated fair value of the Financing Derivative liability (as defined in Note 6 Notes payable) was determined using Level 3 inputs, or significant unobservable inputs. Changes to the estimated fair value of the Financing Derivative are recorded in “Other income (expense), net” in the consolidated statements of operations and comprehensive loss. The following table provides the changes in the fair value of the Financial Derivative for the year ended December 31, 2015 and 201 4 (in thousands), respectively. Financing Derivative Amount Balance as of December 31, 2013 $ 549 Loss on change in fair value of Financing Derivative 395 Balance as of December 31, 2014 944 Gain on change in fair value of Financing Derivative (344) Balance as of December 31, 2015 $ 600 For the year ended December 31, 201 5 , there were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis and our valuation techniques did not change compared to the prior year. Financial Assets and Liabilities Not Measured at Fair V alue on a Recurring B asis The carrying amount of our accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses and other current liabilities approximate fair value due to their short maturities. The carrying value of our facility financing obligation approximates fair value due to the time to maturity and prevailing market rates. We determined the fair value of the Notes (as defined in Note 6 Notes payable) from the debt facility we entered into during the first quarter of 2013 using Level 3 inputs, or significant unobservable inputs. The value of the Notes was determined by comparing the difference between the fair value of the Notes with and without the Financing Derivative by calculating the respective present values from future cash flows using a 13.5% and 19.5% weighted average market yield at December 31, 2015 and December 31, 2014, respectively . Refer to Note 6 Notes payable for addition al details regarding the Notes. The estimated fair value and carrying value of the Notes are as follows (in thousands): December 31, 2015 December 31, 2014 Fair Value Carrying Value Fair Value Carrying Value Long-term notes payable $ 18,037 $ 14,948 $ 14,817 $ 13,991 Cash and Cash E quivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Investments We have designated all investments as available-for-sale and therefore, such investments are reported at fair value, with unrealized gains and losses recognized in accumulated other comprehensive income (loss) (“OCI”) in stockholders’ equity. The cost of marketable securities is adjusted for the amortization of premiums and discounts to expected maturity. Premium and discount amortization is included in other income, net. Realized gains and losses, as well as interest income, on available-for-sale securities are also included in other income, net. The cost of securities sold is based on the specific identification method. We include all of our available-for-sale securities in current assets. All of our investments are subject to a periodic impairment review. We recognize an impairment charge when a decline in the fair value of our investments below the cost basis is judged to be other-than-temporary. Factors considered in determining whether a loss is temporary include the length of time and extent to which the investments fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, extent of the loss related to credit of the issuer, the expected cash flows from the security, our intent to sell the security and whether or not we will be required to sell the security before the recovery of its amortized cost. During the years ended December 31, 2015, 2014 and 2013, we did not recognize any impairment charges on our investments as it is more likely than not that we will recover their amortized cost basis upon sale or maturity. Concentration of Credit Risk The counterparties to the agreements relating to our investment securities consist of various major corporations, financial institutions, municipalities and government agencies of high credit standing. Our accounts receivable are derived from net revenue to customers and distributors located in the United States and other countries. We perform credit evaluations of our customers’ financial condition and, generally, require no collateral from our customers. We regularly review our accounts receivable including consideration of factors such as historical experience, credit quality, the age of the accounts receivable balances and current economic conditions that may affect a customer’s ability to pay. We have not experienced any significant credit losses to date. For the year ended December 31, 2015, 2014 and 2013, excluding contractual revenue, no single end customer accounted for more than 10% of our total revenue , respectively. As of December 31, 2015 and 2014 , 64% and 58% , respectively, of our accounts receivable were from domestic customers. As of December 31, 2015, four customers each represented more than 10% of our net accounts receivable . As of December 31, 2014, three customers each represented more than 10% of our net accounts receivable . Inventory Inventory is valued at the lower of standard cost, which approximates actual cost, or market. Cost is determined using the first-in, first-out (“FIFO”) method. Adjustments to reduce the cost of inventory to its net realizable value, if required, are made for estimated excess or obsolete balances. Property and Equipment, Net Property and equipment are stated at cost, net of accumulated depreciation and any impairment charges. Depreciation is computed using the straight-line method over the estimated useful life of the asset, generally two to three years for computer equipment, three to five years for software, three to seven years for furniture and fixtures, three years for lab equipment and 30 years for buildings. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the related asset. Major improvements are capitalized, while maintenance and repairs are expensed as incurred. In connection with build-to-suit lease arrangements that we account for as if we own the facility, we record the facility at the fair value at the date construction commences, prior to significant renovations, plus the costs of the renovations. We determined the fair value of such facilities prior to renovation based on several factors, including an appraisal conducted by an independent licensed appraiser. Long-term Restricted Cash Long-term restricted cash as of December 31, 2015 was comprised of $4.5 million pledged as collateral for an irrevocable letter of credit for our O’Brien Lease entered into in July 2015 . The letters of credit currently expire in more than one year. The time deposit securing the letter of credit was classified as Long-term restricted cash in the accompanying consolidated balance sheets as of December 31, 2015. Impairment of Long-Lived Assets We periodically review property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset is impaired or the estimated useful lives are no longer appropriate. Fair value is estimated based on discounted future cash flows. If indicators of impairment exist and the undiscounted projected cash flows associated with such assets are less than the carrying amount of the asset, an impairment loss is recorded to write the asset down to its estimated fair value. To date, we have not recorded any impairment charges. Revenue Recognition Our revenue is generated primarily from the sale of products and services, in addition to revenue from collaboration agreements. Product revenue consists of sales of our instruments and related consumables; Service and other revenue primarily consist of revenue earned from product maintenance agreements , instrument lease agreements and grant revenue. Contractual revenue relates to revenue recognized from the collaboration agreement under which we received an upfront fee and may receive contingent milestone payments. Our deliverables under the arrangement includes licenses to intellectual property rights and research and development services. We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable, and collectability is reasonably assured. For instances where final acceptance of the product or system is required, revenue is deferred until all acceptance criteria have been met. Revenue for product sales is generally recognized upon customer acceptance. For certain qualified distributors revenue is recognized based upon shipment terms. Revenue for product maintenance agreements is recognized when earned, which is generally ratably over the service period. In order to assess whether the price is fixed or determinable, we evaluate whether refund rights exist. If refund rights exist or payment terms are based on future performance, we defer revenue recognition until the price becomes fixed or determinable. We assess collectability based on a number of factors, including customer creditworthiness. If we determine that collection of amounts due is not reasonably assured, revenue recognition is deferred until receipt of payment. We regularly enter into arrangements, comprised of one or more contracts, from which revenue is derived from multiple deliverables including a mix of products and or services. Revenue recognition for contracts with multiple deliverables is based on the individual units of accounting determined to exist in the contract. A delivered item is considered a separate unit of accounting when (i) the delivered item has value to the customer on a stand-alone basis; and (ii) if a general right of return exists, the delivery or performance of an undelivered item is considered probable and under our control. Items are considered to have stand-alone value when they are sold separately by any vendor or when the customer could resell the item on a stand-alone basis. Our revenue arrangements generally do not have a general right of return. When a deliverable does not meet the criteria to be considered a separate unit of accounting, we group it with other deliverables that, when combined, meet the criteria, and the appropriate allocation of arrangement consideration and revenue recognition is determined. Consideration is allocated at the inception of the contract to all deliverables based on their relative selling price. In order to determine the relative selling price of a deliverable, we apply, in order, vendor-specific objective evidence (“VSOE”); third-party evidence if VSOE is not available; and lastly our best estimate of selling price for the deliverable if neither VSOE nor third-party evidence is available. In order to establish VSOE, we must regularly sell the product or service on a standalone basis with a substantial majority of sales priced within a relatively narrow range. If an insufficient number of standalone sales exist and VSOE cannot be determined, we then consider whether third party evidence can be used to establish selling price. Due to the lack of similar products and services sold by other companies within our industry, we have not established selling price using third-party evidence. If neither VSOE nor third party evidence of selling price exists, we determine our best estimate of selling price using a combination of prices set by our pricing committee adjusted for applicable discounts and customer orders received to date. For our collaboration agreement, the process for determining estimates of selling prices of the identifiable deliverables involves significant judgments and estimates to be made by management. Our process considers multiple factors such as estimated headcount, annual research and development budget, estimated length of the research and development period and estimated transfer price on cost, which may vary over time, depending upon the circumstances, and are specific to each deliverable. If the estimated obligation period of one or more deliverables should change, the future amortization of the revenue would also change. Deferred service revenue primarily represents product maintenance agreement revenue that is expected to be recognized over the related service period, generally one to three years. For instrument lease agreements we entered into with our customers so far, they are classified as operating-type leases and revenue f rom these leases is recognized on a straight-line basis over the respective lease term, once the les s ee takes (or has the right to take) control/possession of the property under the lease. Effectively, this occurs once installation is complete and acceptance has been obtained. We recognize milestone revenues as they become earned. Based on Accounting Standards Codification, or ASC , Topic 605-28, Revenue Recognition — Milestone Method , we evaluate contingent milestones at inception of the agreement, and recognize consideration that is contingent upon the achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone is considered substantive in its entirety. Milestones are considered substantive if the consideration earned from the achievement of the milestone (i) is consistent with performance required to achieve the milestone or the increase in value to the delivered item, (ii) relates solely to past performance and (iii) is reasonable relative to all of the other deliverables and payments within the arrangement. Cost of Revenue Cost of revenue reflects the direct cost of product components, third-party manufacturing services and our internal manufacturing overhead and customer service infrastructure costs incurred to produce, deliver, maintain and support our instruments, consumables, and services. There are no incremental costs associated with our contractual revenue; all product development costs are reflected in research and development expense. Manufacturing overhead is predominantly comprised of labor costs. We determine and capitalize manufacturing overhead into inventory based on a standard cost model that approximates actual costs. Prior to achieving manufacturing volumes that correlated with our estimated normal capacity (the production levels expected to be achieved over a number of periods under normal circumstances with available resources), we based our capitalized overhead relative to our normal capacity. Prior to achieving normal capacity, excess manufacturing resources were engaged in research and development activities, including; next generation products, internal use research products, and general support activities. As such, manufacturing costs in excess of amounts reflected in inventory were expensed as a component of research and development expense. Service costs include the direct costs of components used in support, repair and maintenance of customer instruments as well as the cost of personnel, materials, shipping and support infrastructure necessary to support the installed customer base. Prior to the fourth quarter of 2013, the capacity of our existing service infrastructure exceeded the number of installed customer instruments. Therefore, management estimated the capacity of the existing service infrastructure and recognized the service-related cost of revenue based on the installed base. As a result, prior to the fourth quarter of 2013, total service infrastructure costs exceeded the costs associated with the support of customer instruments and such excess costs were included as a component of sales, general and administrative expense. Research and Development Research and development expense consists primarily of expenses for personnel engaged in the development of our SMRT technology, the design and development of our future products and current product enhancements. These expenses also include prototype-related expenditures, development equipment and supplies, facilities costs and other related overhead. We expense research and development costs during the period in which the costs are incurred. However, we defer and capitalize non-refundable advance payments made for research and development activities until the related goods are received or the related services are rendered. Leases We categorize leases at their inception as either operating or capital leases. On certain of our lease agreements, we may receive tenant improvement allowances, rent holidays and other incentives. Rent expense is recorded on a straight-line basis over the term of the lease. The difference between rent expense recognized and amounts paid under the lease agreement is recorded as deferred rent in the balance sheets. Leasehold improvements are capitalized at cost and depreciated over the shorter of their expected useful life or the life of the lease. Tenant improvements afforded to us by landlord incentives are recorded as leasehold improvement assets with corresponding deferred rent liabilities. For build-to-suit lease arrangements, we evaluate the extent of our financial and operational involvement in the tenant improvements to determine whether we are considered the owner of the construction project under U.S. GAAP. When we are considered the owner of a project, we record the shell of the facility at its fair value at the date construction commences with a corresponding facility financing obligation. Improvements to the facility during the construction project are capitalized and, to the extent funded by lessor afforded incentives, with corresponding increases to the facility financing obligation. Payments we make under leases in which we are considered the owner of the facility are allocated to land rental expense, based on the relative values of the land and building at the commencement of construction, reductions of the facility financing obligation and interest expense recognized on the outstanding obligation. To the extent gross future payments do not equal the recorded liability, the liability is settled upon return of the facility to the lessor. Any difference between the book value of the assets and remaining facility obligation are recorded in other expense, net. For existing arrangements, the differences are expected to be immaterial. Income Taxes We account for income taxes under the asset and liability method, which requires, among other things, that deferred income taxes be provided for temporary differences between the tax basis of our assets and liabilities and the amounts reported in the financial statements. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses and research and development credit carryforwards. A full valuation allowance is provided against our net deferred tax assets as it is more likely than not that the deferred tax assets will not be fully realized. We review our positions taken relative to income taxes. To the extent our tax positions are more likely than not to result in the payout of additional taxes, we accrue the estimated amount of tax for such uncertain positions. Stock-based Compensation Stock-based compensation expense for all stock-based compensation awards is based on the grant date fair value estimated using the Black-Scholes option pricing model. We have limited historical information available to support the underlying estimates of certain assumptions required to value stock options. The expected term of options is estimated based on the simplified method. We do not have sufficient trading history to solely rely on the volatility of our own common stock for establishing expected volatility. Therefore, we based our expected volatility on the historical stock volatilities of our common stock as well as several comparable publicly listed companies over a period equal to the expected term of the options. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expe cted term of the stock option. We estimate our forfeiture rate based on an analysis of our actual forfeitures and will continue to evaluate the adequacy of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover behavior and other factors. The impact from a forfeiture rate adjustment will be recognized in full in the period of adjustment, and if the actual number of future forfeitures differs from that which was estimate d , we may be required to record adjustments to stock-based compensation expense in future periods. We recognize compensation expense on a straight-line basis over the requisite service period. We elected to use the simplified method to calculate the beginning pool of excess tax benefits. Other Comprehensive Income (loss) Other comprehensive income (loss) is comprised of unrealized gains (losses) on our investment securities. Recent Accounting Pronouncements Recently Adopted Accounting Standards In November 2015, the FASB issued ASU 2015-17 , Income Taxes: Balance Sheet Classification of Deferred Taxes , which requires that deferred tax assets and liabilities be classified as noncurrent on the consolidated balance sheet. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted, and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities, and we have elected to early adopt ASU 2015-17 prospectively, effective for the year ended December 31, 2015, as permitted by the standard. The early adoption of this update did not have a material impact on our consolidated financial statements. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. ASU 2015-03 requires an entity to present such costs in the consolidated balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015 and is effective for us in the first quarter of fiscal 2016. Early adoption is permitted, and we elected to apply the new guidance retrospectively to each prior period presented, as permitted by the standard. Early adoption is also permitted for financial statements that have not been previously issued, and we elected to early adopt the accounting standard for the year ended December 31, 2015, as permitted by the standard. The early adoption of ASU 2015-03 did not have a material impact on the consolidated statements of operations and comprehensive loss. The impact of early adoption on the consolidated balance sheets for the periods presented is noted in the table below (in thousands): December 31, 2015 December 31, 2014 (in thousands) Prior to Adoption of ASU 2015-03 ASU 2015-03 Adjustment As adopted Prior to Adoption of ASU 2015-03 ASU 2015-03 Adjustment As adopted Other long-term assets $ 7,631 $ (113) $ 7,518 $ 162 $ (133) $ 29 Total assets 7,631 (113) 7,518 162 (133) 29 Notes payable 15,061 (113) 14,948 14,124 (133) 13,991 Total liabilities $ 15,061 $ (113) $ 14,948 $ 14,124 $ (133) $ 13,991 Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases. The guidance in ASU 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases. ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the new guidance to determine the impact it may have to our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory , which simplifies the subsequent measurement of inventory by replacing today’s lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out (“LIFO”) and the retail inventory method (“RIM”). Entities that use LIFO or RIM will continue to use existing impairment models (e.g., entities using LIFO would apply the lower of cost or market test). ASU 2015-11 is effective for annual report periods beginning after December 15, 2016 and is effective for us in the first quarter of 2017. Early adoption is permitted as of the beginning of an interim or annual reporting period. The new guidance must be applied prospectively after the date of adoption. The adoption of ASU 2015-11 is not expected to have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date , which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. Accordingly, the updated standard is effective for us in the first quarter of 2018. We are currently evaluating the new guidance to determine the impact it may have to our consolidated financial statements. |
Contractual Revenue
Contractual Revenue | 12 Months Ended |
Dec. 31, 2015 | |
Contractual Revenue [Abstract] | |
Contractual Revenue | NOTE 3. CONTRACTUAL REVENUE During September 2013, we entered into the Roche Agreement with Roche, pursuant to which we account for, and recognize as revenue, the up-front payment received thereunder using the proportional performance method over the periods in which the delivery of elements pursuant to the agreement occurs. We recognize revenue using a straight-line convention over the estimated service periods of the deliverables as this method approximates our performance of services pursuant to the agreement. Out of the $35.0 million upfront cash payment received, quarterly amortization of $1.7 million has been recognized as contractual revenue from the fourth quarter of 2013 to the fourth quarter of 2014. Beginning in January 1, 2015, we revised the estimated development period related to our contractual revenue amortization based on increas ed certainty of the development time period on a prospective approach . Q uarterly amortization of $3.6 million has been recognized as contractual revenue for each of the four quarters of 2015. The additional contractual revenue of $1.9 million per quarter, $7.6 million in total for the year ended December 31, 2015, had a 100% margin and thus decreased our net loss for the year ended December 31, 2015 by $7.6 million and decreased our basic and diluted net loss per share for the year ended December 31, 2015 by $0.10 per share . At December 31, 2015 , going forward, on a prospective basis, we will recognize the remaining deferred contractual revenue of $12.1 million associated with upfront payment received under the Roche Agreement over the revised estimated remaining delivery period. In addition to the deliverables above, the Roche Agreement provides for additional payments totaling up to $40.0 million upon the achievement of certain development milestones. Consideration from development milestones is recognized in the period in which a milestone is achieved only if the milestone is considered substantive in its entirety. W e achieved the first development milestone under the Roche Agreement and recorded the related $10.0 million as contractual revenue during the year ended December 31, 2014. We achieved the second and third ( final ) development milestones under the Roche Agreement and recognized the related $10.0 million and $20.0 million, respectively, as contractual revenue during the year ended December 31, 2015. |
Cash And Cash Equivalents And I
Cash And Cash Equivalents And Investments | 12 Months Ended |
Dec. 31, 2015 | |
Cash And Cash Equivalents And Investments [Abstract] | |
Cash And Cash Equivalents And Investments | NOTE 4 . CASH AND CASH EQUIVALENTS AND INVESTMENTS The following table summarizes our cash, cash equivalents and investments as of December 31, 2015 and December 31, 201 4 (in thousands): As of December 31, 2015 Gross Gross Amortized unrealized unrealized Fair Cost gains losses Value Cash and cash equivalents: Cash and money market funds $ 22,034 $ — $ — $ 22,034 Commercial paper 8,595 — — 8,595 US government & agency securities 3,000 — — 3,000 Total cash and cash equivalents 33,629 — — 33,629 Investments: Commercial paper 15,903 2 (2) 15,903 Corporate debt securities 1,266 — (1) 1,265 Asset backed securities 3,337 — — 3,337 US government & agency securities 28,142 4 (10) 28,136 Total investments 48,648 6 (13) 48,641 Long-term restricted cash: Cash 4,500 — — 4,500 Total cash, cash equivalents and investments $ 82,277 $ 6 $ (13) $ 82,270 Total Long-term restricted cash $ 4,500 $ — $ — $ 4,500 As of December 31, 2014 Gross Gross Amortized unrealized unrealized Fair Cost gains losses Value Cash and cash equivalents: Cash and money market funds $ 21,952 $ — $ — $ 21,952 Commercial paper 14,496 1 — 14,497 Total cash and cash equivalents 36,448 1 — 36,449 Investments: Commercial paper 43,648 5 — 43,653 Corporate debt securities 8,170 7 (4) 8,173 Asset backed securities 13,073 4 (4) 13,073 Total investments 64,891 16 (8) 64,899 Total cash, cash equivalents and investments $ 101,339 $ 17 $ (8) $ 101,348 The following table summarizes the contractual maturities of our cash equivalents and available-for-sale investments, excluding money market funds, as of December 31 , 201 5: (in thousands) Fair Value Due in one year or less $ 60,236 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | N OTE 5 . BALANCE SHEET COMPONENTS Inventory: As of December 31, 2015 and 2014, our inventory consisted of the following components: December 31, (in thousands) 2015 2014 Purchased materials $ 4,041 $ 3,150 Work in process 3,576 6,115 Finished goods 3,338 2,070 Inventory $ 10,955 $ 11,335 Prepaid E xpenses and Other Current A ssets: As of December 31, 2015 and 201 4 , our prepaid expenses and other current assets consisted of the following components: December 31, (in thousands) 2015 2014 Receivable from existing landlord $ 10,000 $ — Prepaid expenses 1,330 1,564 Other current assets 741 107 Prepaid expenses and other current assets $ 12,071 $ 1,671 Receivable from existing landlord of $10.0 million as of December 31, 2015 is part of the $15.0 million of future payments receivable from our existing landlord for our Menlo Par k facility real property leases, as described in further details in Note 7 “Commitments and contingencies”. Of the amount receivable, $10.0 million was recorded as a short term receivable in “Prepaid and Other Current Assets” and the final $5.0 million was recorded in “Other Long-term Assets” as of December 31, 2015 , based on the expected timing of receipt of the payment . Property and Equipment , Net : As of December 31, 2015 and 201 4 , our property and equipment , net , consisted of the following components: December 31, (in thousands) 2015 2014 Building $ 1,160 $ 1,160 Laboratory equipment and machinery 20,358 17,169 Leasehold improvements 8,348 8,348 Computer equipment 6,781 4,885 Software 4,798 4,485 Furniture and fixtures 968 958 Construction in progress — 53 42,413 37,058 Less: Accumulated depreciation (33,865) (30,457) Property and equipment, net $ 8,548 $ 6,601 Depreciation expense during the years ended December 31, 2015, 2014 and 2013 was $3.7 million, $ 4.2 million and $5.6 million , respectively. Accrued E xpenses: As of December 31, 2015 and 2014, our accrued expenses consisted of the following components : December 31, (in thousands) 2015 2014 Salaries and benefits $ 8,129 $ 6,325 Accrued license and development services 5,459 3,741 Inventory accrual, professional services, accrued interest and other 1,963 1,375 Accrued expenses $ 15,551 $ 11,441 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2015 | |
Notes Payable [Abstract] | |
Notes Payable | NOTE 6. NOTES PAYABLE Pursuant to a Facility Agreement (the “Facility Agreement”) we entered into with entities affiliated with Deerfield Management Company, L.P. (collectively, “Deerfield”) during February 2013, we issued promissory notes in the aggregate principal amount of $20.5 million (the “Notes”). The Notes bear simple interest at a rate of 8.75% per annum, payable quarterly in arrears commencing on April 1, 2013. In connection with the execution of the Facility Agreement, we issued warrants to purchase an aggregate of 5,500,000 shares of common stock immediately exercisable at an exercise price per share initially equal to $2.63 (the “Warrants”). In addition, the Facility Agreement requires us to maintain consolidated cash and cash equivalents on the last day of each calendar quarter of not less than $2.0 million. As security for our repayment of our obligations under the Facility Agreement, we granted to Deerfield a security interest in substantially all of our property. The Facility Agreement has a maximum term of seven years from inception; Subsequent to the date of the Facility Agreement, at the election of the holders of Notes representing a majority of the aggregate principal amount of the outstanding Notes, the Notes holders may elect to receive 25% of the net proceeds from any financing that includes an equity component, including without limitation, the sale or issuance of our common stock, options, warrants or other securities convertible or exchangeable for shares of our common stock, as payment of the Notes. This right is subject to certain exceptions set forth in the Facility Agreement, including that the right would not apply until we had issued 15.0 million shares of our common stock following the date of the Facility Agreement. The Notes holders have the option to require us to repay the Notes if we complete a Major Transaction, including a change of control or a sale of all or substantially all of our assets. Additionally, the principal balance of the Facility Agreement may become immediately due and payable upon an event of default, in which case the Notes holders would have the right to require us to repay 100% of the principal amount of the loan, plus any accrued and unpaid interest thereon. The Facility Agreement does not provide for a prepayment of the Notes at our option. Financing Derivative A number of features embedded in the Notes to the Facility Agreement required accounting for as a derivative, including the indemnification of certain withholding taxes and the acceleration of debt upon (i) a qualified financing, (ii) an event of default, (iii) a Major Transaction, and (iv) the exercise of the warrant via offset to debt principal. These features represent a single derivative (the “Financing Derivative”) that was bifurcated from the debt instrument and accounted for as a liability at fair value, with changes in fair value between reporting periods recorded in other income (expense), net. The estimated fair value of the Financing Derivative was determined by comparing the difference between the fair value of the Notes with and without the Financing Derivative by calculating the respective present values from future cash flows using a 13.5% and 19.5% weighted average market yield at December 31, 2015 and December 31, 2014, respectively. The estimated fair value of the Financing Derivative as of December 31, 2015 and December 31, 2014 was $0.6 million and $0.9 million, respectively. Notes We initially recorded the Notes and Warrants at $14.1 million and $6.4 million, respectively, based upon the relative fair value allocation of the $20.5 million of proceeds. The carrying value of the Notes at the inception of the debt was $12.8 million, resulting in an original issue discount of $7.7 million. As of December 31, 2015 and December 31, 2014, debt discount of $5.4 million and $6.4 million, respectively, remained to be amortized through February 2020 , the maturity of the Notes. As of December 31, 20 15 , debt payments, which include interest and principal, are as follows (in thousands): 2016 $ 1,799 2017 1,794 2018 5,632 2019 2,817 2020 15,142 Total remaining payments 27,184 Less: interest and discounts (12,236) Notes payable 14,948 |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | NOTE 7. COMMITMENTS AND CONTINGENCIES Leases In December 2009 we entered into a lease agreement for a manufacturing and office facility in Menlo Park. In order for the facility to meet our needs and operating requirements, substantial tenant improvements, including improvements to the structural elements and principal operating systems of the facility, were necessary. The lessor provided a tenant improvement allowance of $1.8 million to apply towards the necessary improvements and we remained obligated for additional amounts over the afforded allowance. Due to our involvement in and the nature of the renovations made to the facility and our obligations to fund the costs of renovations exceeding the incentives afforded to us, we account for the facility as if we are the owner. Accordingly we recorded $3.0 million of building and leasehold improvement assets, reflecting the $1.2 million fair value of the facility prior to commencing renovations and the $1.8 million of landlord incentives within property and equipment, net and a corresponding liability recorded to facility financing obligation. As of December 31, 2015, resulting from the lease amendment agreement described below, future rent expense associated with th is lease was reduced to zero with a remaining long-term facility financing obligation of $1.4 million presented as “Other liabilities, non-current” on the consolidated balance sheets as of December 31, 2015. Lease Amendment Agreement On July 23, 2015, we entered into a Lease Amendment Agreement (the “Lease Amendment Agreement”) with Peninsula Innovation Partners, LLC (the “Existing Landlord”), which amends the terms and conditions of certain of our existing Menlo Park facility real property leases. The Lease Amendment Agreement provides for, among other things, amendments of the term for certain of the existing leases, the termination of all renewal, expansion and extension rights contained in any of the existing leases with the Existing Landlord (including our options to extend the terms for certain of the existing leases for two consecutive five-year periods), as well as rent abatement for a specified period of time. As consideration for our agreement to amend the existing leases pursuant to the Lease Amendment Agreement, and subject to the terms and conditions contained therein, we became eligible to receive up to four payments of $5.0 million each from the Existing Landlord over time (the “Landlord Payments”), and rent abatement for the remainder of the lease. In the event that we breach any of the leases and fail to cure such breach within the time permitted, the Existing Landlord would have no obligation to make the final $5.0 million payment. On September 1, 2015, the permitting process related to an architectural approval and a change of use permit with respect to our proposed new premises at 1315 O’Brien Drive, Menlo Park, California (the “O’Brien Premises”) was completed , which satisfied the contingencies under the Lease Amendment Agreement. As a result, we recorded $23.0 million in “Gain on lease amendments” in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2015 , reflecting that our rent payments were reduced to zero for the remaining term of our existing Menlo Park facility real property leases, the aggregate of $20.0 million in Landlord Payments became receivable and any associated financing obligation was revalued . Of the $20.0 million in Landlord Payments, the first $5.0 million Landlord Payment was received in September 2015, $10.0 million was recorded as a short term receivable in “Prepaid and Other Current Assets” and the final $5.0 million was recorded in “Other Long-term Assets” as of December 31, 2015. We do not believe that there are any remaining performance obligations relating to the remaining Landlord Payments. In February 2016 we received the second $5.0 million Landlord payment. O’Brien Lease Agreement On July 22, 2015, we entered into a new lease agreement (the “O’Brien Lease”) with respect to the O’Brien Premises. The term of the O’Brien Lease is one hundred thirty-two ( 132 ) months, commencing on the date that is the later of April 15, 2016 or the date on which the O’Brien Premises landlord has substantially completed certain shell improvements and tenant improvements. Base monthly rent shall be abated for the first six (6) months of the lease term and thereafter will be $540,000 per month during the first year of the lease term, with specified annual increases thereafter until reaching $711,000 per month during the last twelve (12) months of the lease term. We were required to pay $2,160,000 in prepaid rent which will be applied to the monthly rent installments due for the first to fourth months after the rent abatement period. We are also required to prepay $180,000 (or the landlord’s then-current estimate) in operating expenses for the first month of the lease term no later than March 15, 2016. We were also required to establish a deposit of $4.5 million in the form of a letter of credit in October 2015 ; and, as such , $4.5 million was recorded in “Long-term restricted cash” in the consolidated balance sheet as of December 31, 2015. The landlord is obligated to construct certain shell improvements at the landlord’s cost and expense and provide us with improvement allowances in the amount of $12.6 million. Under the O’Brien Lease, we expect to pay approximately $80 million in rent and $24 million in operating expenses over the expected lease term. In addition to the lease payments, we are also required to reimburse the landlord for certain improvement costs in excess of the tenant improvement allowances provided. These improvement costs, along with the costs associated with the anticipated move to the O’Brien Premises, are expected to be substantial in nature. These future expenditures are expected to be partially offset by the $15.0 million of future Landlord Payments from our Existing Landlord as described above. As of December 31, 201 5 , the future annual minimum lease payments under all noncancelable operating leases with remaining term in excess of one year are as follows (not including the O’Brien Lease described above due to uncertainty associated with the timing and completion of landlord improvements ): Amount Years ending December 31, (in thousands) 2016 $ 131 2017 146 2018 112 Total minimum lease payments $ 389 Rent expense for the years ended December 31, 2015, 2014 and 2013, was $1.1 million, $2.2 million and $2.3 million, respectively. We are also required to pay our share of operating expenses with respect to the facilities in which we operate. In addition , we have other purchase commitment s of an estimated amount of approximately $14.4 million consisting of open purchase orders and contractual obligations in the ordinary course of business, including commitments with contract manufacturers and suppliers for which we have not received the goods or services, and acquisition and licensing of intellectual property. A majority of these purchase obligations are due within a year. Although open purchase orders are considered enforceable and legally binding, the terms generally allow us the option to cancel, reschedule and adjust our requirements based on our business needs prior to the delivery of goods or performance of services. Contingencies We become subject to claims and assessments from time to time in the ordinary course of business. We accrue liabilities for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. We may, from time to time, be party to litigation and subject to claims that arise in the ordinary course of business. In addition, third parties may, from time to time, assert claims against us in the form of letters and other communications. We currently believe that these ordinary course matters will not have a material adverse effect on our business; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. Indemnification Pursuant to Delaware law and agreements entered into with each of our directors and officers, we may have obligations, under certain circumstances, to hold harmless and indemnify each of our directors and officers against losses suffered or incurred by the indemnified party in connection with their service to us , and judgments, fines, settlements and expenses related to claims arising against such directors and officers to the fullest extent permitted under Delaware law, our bylaws and certificate of incorporation. We also enter and have entered into indemnification agreements with our directors and officers that may require us to indemnify them against liabilities that arise by reason of their status or service as directors or officers, except as prohibited by applicable law. In addition, we may have obligations to hold harmless and indemnify third parties involved with our fund raising efforts and their respective affiliates, directors, officers, employees, agents or other representatives against any and all losses, claims, damages and liabilities related to claims arising against such parties pursuant to the terms of agreements entered into between such third parties and us in connection with such fund raising efforts. To the extent that any such indemnification obligations apply to the lawsuits described above, any associated expenses incurred are included within the related accrued litigation expense amounts. No additional liability associated with such indemnification obligations has been recorded at December 31, 2015 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 8 . INCOME TAXES A reconciliation between the statutory federal income tax and our effective tax rates as a percentage of loss before income taxes are as follows: Years ended December 31, 2015 2014 2013 Statutory tax rate 35.0 % 35.0 % 35.0 % State tax rate, net of federal benefit (3.5) 3.8 2.1 Stock-based compensation (4.0) (1.3) (1.7) R&D credit 11.0 4.0 4.3 Other (0.6) (0.0) (0.3) Change in valuation allowance (37.9) (41.5) (39.4) Effective income tax rate 0.0 % 0.0 % 0.0 % Temporary differences and carryforwards that gave rise to significant portions of deferred taxes are as follows (in thousands): December 31, Deferred tax assets: 2015 2014 Net operating loss carryforwards $ 235,659 $ 225,115 Research and development credits 28,346 24,881 Depreciation 1,403 3,241 Accruals and reserves 20,385 21,737 Total deferred tax assets 285,793 274,974 Less: Valuation allowance (285,556) (273,567) Deferred tax liabilities: Deferred rent (237) (1,407) Net deferred tax assets $ — $ — Due to uncertainties surrounding the realization of deferred tax assets through future taxable income, we have provided a full valuation allowance and, therefore, have not recognized any benefits from net operating losses and other deferred tax assets. Recognition of deferred tax assets is appropriate when realization of such assets is more likely than not. Based upon the weight of available evidence, we believe it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, we have provided a full valuation allowance against our net deferred tax assets as of December 31, 2015 and 2014 , respectively. For the year ended December 31, 201 5 , our valuation allowance increased to $285.6 million primarily because of an increase in deferred tax assets related to net operating losses, state research and development tax credits , and changes in accruals and reserves. For the year ended December 31, 201 4 , our valuation allowance increased to $273.6 million primarily because of an increase in deferred tax assets related to net operating losses, state tax credits, and changes in accruals and reserves. As of December 31, 201 5 , we had federal and state net operating loss carryforwards of approximately $612.9 million and $523.4 million, respectively, available to reduce future taxable income, if any. The federal net operating loss carryforward begins expiring in 2024 , and the state net operating loss carryforward have expiration in 2015 and beyond. We also had federal and California state research and development credit carryforwards of approximately $23.9 million and $25.6 million, respectively, as of December 31, 201 5 . The federal research and development credits beg in e xpiring in 2024 if not utilized. The California tax research and development credits can be carried forward indefinitely. Tax attributes related to stock option windfall deductions are not recorded until they result in a reduction of cash tax payable. The tax effected benefit of the excess tax deductions for federal and state purposes of $4.9 million and $0.6 million, respectively, will be recorded to additional paid-in capital when they reduce cash tax es payable. The Tax Reform Act of 1986 limits the use of net operating loss and tax credit carryforwards in certain situations where equity transactions result in a change of ownership as defined by Internal Revenue Code Section 382. In the event we experience an additional ownership change for tax purposes, utilization of our United States net operating loss and tax credit carryforwards could be limited. As of December 31, 201 5 , our total unrecognized tax benefit was $1 8.7 million, of which none of the tax benefit, if recognized, would affect the effective income tax rate due to the valuation allowance that currently offsets deferred tax assets. We do not anticipate the total amount of unrecognized income tax benefits to significantly increase or decrease in the next 12 months. A reconciliation of the beginning and ending unrecognized tax benefit accounts is as follows (in thousands): Balance as of December 31, 2012 $ 9,992 Increase in balance related to tax positions taken during current year 1,642 Balance as of December 31, 2013 11,634 Increase in balance related to tax positions taken in prior year 2,959 Increase in balance related to tax positions taken during current year 2,359 Balance as of December 31, 2014 16,952 Decrease in balance related to tax positions taken in prior year (44) Increase in balance related to tax positions taken during current year 1,827 Balance as of December 31, 2015 $ 18,735 Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of December 31, 2015 and 2014, we had no accrued interest or penalties due to our net operating losses available to offset any tax adjustment. We file U.S. federal and various state income tax returns. For U.S. federal and state income tax purposes, the statute of limitations currently remains open for the years ending December 31, 2012 to present and December 31, 2011 to present, respectively. In addition, all of the net operating losses and research and development credit carryforwards that may be utilized in future years may be subject to examination. We are not currently under examination by income tax authorities in any jurisdiction. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | NOTE 9. STOCKHOLDERS’ EQUITY Preferred Stock Our Certificate of Incorporation, as amended and restated in October 2010 in connection with the closing of our initial public offering, authorizes us to issue 1,000,000,000 shares of $0.001 par value common stock and 50,000,000 shares of $0.001 par value preferred stock. As of December 31, 2015 and 2014, there were no shares of preferred stock issued or outstanding . Common Stock Common stockholders are entitled to dividends when and if declared by our board of directors. There have been no dividends declared to date. The holder of each share of common stock is entitled to one vote. On October 5, 2012, we entered into a sales agreement pursuant to which we sold shares of our common stock having an aggregate offering price of approximately $30.0 million through an “at-the-market” offering. On November 8, 2013, the sales agreement was amended to increase the shares of our common stock available for sale pursuant to the sales agreement, and, pursuant to such amendment, we sold an additional aggregate offering price of approximately $30.0 million. On February 3, 2015, the sales agreement was amended again in order to further increase the shares of our common stock available for sale pursuant to the sales agreement, and, pursuant to such amendment we sold an additional aggregate offering price of approximately $30.0 million. On February 3, 2016 we filed a prospectus supplement pursuant to which we may offer and sell, from time to time, additional shares of our common stock having an aggregate offering price of up to $30.0 million under the sales agreement. Such aggregate offering price of shares of our common stock is in addition to the shares sold under the original sales agreement, dated October 5, 2012, the first amendment to such sales agreement, dated November 8, 2013, and amounts previously sold under the second amendment to such sales agreement, dated February 3, 2015. We will pay a commission equal to 3% of the gross proceeds from the sale of shares of our common stock under the sales agreement. We are not obligated to make any sales of shares of our common stock under the sales agreement . In the year ended December 31, 2015, we issued 4.1 million shares of our common stock at an average price of $7.36 per share through our “at-the-market” offering. From January 1, 2016 to March 7 , 2016, we issued 2.7 million shares of our common stock at an average price of $8.79 per share through our “at-the-market” offering, resulting in net proceeds of $23.4 million. Subject to certain exceptions set forth in our existing Facility Agreement, holders of our Notes may elect to receive 25% of the net proceeds from financing activities that include an equity component as prepayment of the Notes to be applied first, to accrued and unpaid interest and second, to principal. However, in February 2016 holders representing a majority of the aggregate principal amount of the outstanding Notes waived such right in connection with the issuance and sale of shares of common stock under our current “at-the-market” offering. Warrants In connection with the execution of the Facility Agreement, we issued immediately exercisable warrants to purchase 5,500,000 shares of common stock at an exercise price per share initially equal to $2.63 , all of which were outstanding at December 31, 2015. The number of shares of common stock into which the warrants are exercisable and the exercise price will be adjusted to reflect any stock splits, payment of stock dividends, recapitalizations, reclassifications or other similar adjustments in the number of outstanding shares of common stock. The exercise price may also be adjusted to reflect certain dividends or other distributions, including distributions of stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement or similar transaction. From January 1, 2016 to March 7 , 2016, warrants to purchase 3,818,000 shares of common stock were exercised. As of March 7 , 2016, we had outstanding exercisable warrants to purchase an aggregate of 1,682,000 shares of common stock at $2.63 per share. Equity Plans As of December 31, 2015, we had three active equity plans, the 2010 Equity Incentive Plan, or “2010 Plan”, the 2010 Outside Director Equity Incentive Plan, or “2010 Director Plan”, and the 2010 Employee Stock Purchase Plan or “ESPP”, all of which we adopted upon the effectiveness of our initial public offering in October 2010. Prior to the adoption of these plans, we granted options pursuant to the 2004 Equity Incentive Plan and 2005 Stock Plan. Upon termination of the predecessor plans, the shares available for grant at the time of termination, and shares subsequently returned to the plans upon forfeiture or option termination, were transferred to the successor plan in effect at the time of share return. We issue new shares of common stock upon the exercise of stock options. 2010 Equity Incentive Plan and Outside Director Equity Incentive Plan Stock options granted un der the 2010 Plan may be either Incentive Stock Option (“ I SO ”) or Non-Qualified Stock Option (“NSO”). ISOs may be granted only to employees. NSOs may be granted to employees, consultants and directors. Stock options under the 2010 Plan may be granted with a term of up to ten years and at prices no less than the fair market value of our common stock on the date of grant. To date, stock options granted to existing employees generally vest over four years on a monthly basis and stock options granted to new employees vest at a rate of 25% upon the first anniversary of the vesting commencement date and 1/48th per month thereafter. In January 2016, an additional 4.0 million shares were reserved under the 2010 Plan. Stock options granted under the 2010 Director Plan provide for the grant of NSOs. Stock options under the 2010 Plan may be granted with a term of up to ten years and at prices no less than the fair market value of our common stock on the date of grant. To date, stock options granted to existing directors generally vest over one year on a monthly basis and stock options granted to new directors generally vest over three years at a rate of one -third upon the first anniversary of the vesting commencement date and 1/36th per month thereafter. In January 2016, an additional 0.8 million shares were reserved under the 2010 Director Plan. As of December 31, 2015 we had an aggregate of 5.5 million shares of common stock reserved for future issuance under the 2010 Plan and 2010 Director Plan. 2010 Employee Stock Purchase Plan We adopted the ESPP in October 2010. Our ESPP permits eligible employees to purchase common stock at a discount through payroll deductions during defined offering periods. Each offering period will generally consist of four purchase periods, each purchase period being approximately six months. The price at which the stock is purchased is equal to the lower of 85% of the fair market value of the common stock at the beginning of an offering period or at the end of a purchase period. Each offering period will generally end and the shares will be purchased twice yearly on March 1 and September 1. If the stock price at the end of the purchase period is lower than the stock price at the beginning of the offering period, that offering period will then be terminated and new offering period comes to place. As of December 31, 2015, 397,633 shares of our common stock remain available for issuance under the Plan. The ESPP provides for an annual increase to the shares available for issuance at the beginning of each calendar year equal to 2% of the common shares then outstanding. During January 2016, an additional 1.6 million shares were reserved under the ESPP. The following table summarizes stock option activity for all stock option plans for the year ended December 31, 2015 (in thousands, except per share amounts): Stock Options Outstanding Shares available Number Weighted average for grant of shares Exercise price exercise price Balances, December 31, 2014 4,874 16,491 $ 0.70 – 16.00 $ 5.10 Additional shares reserved 4,799 Options granted (4,500) 4,500 $ 4.55 – 10.07 $ 7.51 Options exercised — (882) $ 0.70 – 10.84 $ 3.27 Options canceled 641 (641) $ 1.16 – 15.98 $ 6.60 Balances, December 31, 2015 5,814 19,468 $ 0.70 – 16.00 $ 5.69 The following table summarizes information with respect to stock options outstanding and exercisable under the plans at December 31, 2015: Options Outstanding Options Exercisable Weighted average Number remaining contractual Weighted average Number Weighted average Exercise price outstanding life (Years) exercise price vested exercise price $ 0.00 – 1.60 827,488 6.75 $ 1.17 502,194 $ 1.17 $ 1.60 – 3.20 3,802,953 6.04 $ 2.42 2,978,692 $ 2.47 $ 3.20 – 4.80 4,226,360 6.66 $ 4.10 2,947,959 $ 4.07 $ 4.80 – 6.40 3,486,254 8.23 $ 5.65 1,288,411 $ 5.68 $ 6.40 – 8.00 3,264,464 7.97 $ 6.98 1,229,713 $ 6.97 $ 8.00 – 9.60 1,088,077 4.10 $ 8.50 1,088,077 $ 8.50 $ 9.60 – 11.20 1,627,201 9.15 $ 10.18 246,501 $ 10.79 $ 11.20 – 12.80 621,077 5.08 $ 12.10 592,344 $ 12.12 $ 12.80 – 14.40 386,100 5.00 $ 13.87 378,102 $ 13.87 $ 14.40 – 16.00 137,750 4.86 $ 15.99 137,750 $ 15.99 19,467,724 7.01 $ 5.69 11,389,743 $ 5.47 The aggregate intrinsic value of the outstanding and exercisable options presented in the table above totaled $ 145.4 million and $87.8 million, respectively. The aggregate intrinsic value represents the total pretax intrinsic value (i.e., the difference between $13.13 , our closing stock price on the last trading day of our fourth quarter of 2015 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2015. The aggregate intrinsic value changes at each reporting date based on the fair market value of our common stock. The weighted average remaining contractual life for exercisable options is 5.95 years. The total intrinsic va lue of stock options exercised during the years ended December 31, 2015, 2014 and 2013 was $3.5 million, $2.0 million and $0.5 million, respectively. The total fair value of stock options vested during the years ended December 31, 2015, 2014 and 2013 was $7.3 million, $6.0 million and $6.5 million, respectively . Stock-based Compensation Total stock-based compensation expense consists of the following (in thousands): Years Ended December 31, 2015 2014 2013 Cost of revenue $ 1,313 $ 758 $ 523 Research and development 5,196 3,785 4,052 Sales, general and administrative 7,331 5,400 5,330 Total stock-based compensation expense $ 13,840 $ 9,943 $ 9,905 As of December 31, 2015 and December 31, 2014, $315,000 and $225,000 of stock-based compensation cost was capitalized in inventory on our consolidated balance sheets, respectively. The tax benefit of stock-based compensation expense was immaterial for the years ended December 31, 2015, 2014 and 2013. Stock O ptions We estimated the fair value of employee stock option using the Black-Scholes option pricing model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. For the years ended December 31, 2015, 2014 and 2013, the weighted av erage fair value at grant date per stock option was $4.75 , $3.81 and $1.80 , respectively. We recorded stock-based compensation expense for stock options of $10.2 million, $7.8 million and $7.0 million for the years ended December 31, 2015, 2014 and 2013 , res pectively. For the years ended December 31, 2015, 2014 and 2013, the fair value of employee stock options was estimated using the following weighted average assumptions: Years Ended December 31, 2015 2014 2013 Expected term (years) 6.1 years 6.1 years 6.1 years Expected volatility 70.0% 70.0% 66.8% Risk-free interest rate 1.7% 1.9% 1.3% Dividend yield — — — As of December 31, 2015, $ 20.7 million of total unrecognized compensation expense related to stock options was expected to be recognized over a weighted-average period of 3.0 years. Future option grants will increase the amount of compensation expense to be recorded in those f uture periods. Cash received from option exercises for the years ended December 31, 2015, 2014 and 2013 was $3.0 million, $1.6 million and $0.5 million, respectively. ESPP We estimated the fair value of ESPP using the Black-Scholes option pricing model. For the years ended December 31, 2015, 2014 and 2013, weighted average fair value at grant date for ESPP was $2.20 , $2.98 and $1.76 , respectively. We recorded stock-based compensation expense for ESPP of $3.6 million, 2.1 million and $2.8 million for the years ended December 31, 2015, 2014 and 2013, respectively. For the years ended December 31, 2015, 2014 and 2013, the fair value of ESPP was estimated using the following assumptions: Years Ended December 31, 2015 2014 2013 Expected term (years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Expected volatility 70.0% 70.0% 70.0% Risk-free interest rate 0.1% - 0.7% 0.1% - 0.5% 0.1% - 0.4% Dividend yield — — — For the years ended December 31, 2015, 2014 and 2013, 1.1 million shares, 1.3 million shares and 1.5 million shares of common stock were purchased under the ESPP , respectively. Cash received through the ESPP for the years ended December 31, 2015, 2014 and 2013 was $4.4 million, $2.3 million and $2.6 million, res pectively. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Net Loss Per Share [Abstract] | |
Net Loss Per Share | NOTE 10. NET LOSS PER SHARE T he following table presents the computation of basic and diluted net loss per share (in thousands, except per share amounts): Years Ended December 31, 2015 2014 2013 Numerator: Net loss $ (31,696) $ (66,160) $ (79,293) Denominator: Weighted average shares used in computation of basic and diluted net loss per share 75,614 70,475 62,784 Basic and diluted net loss per share $ (0.42) $ (0.94) $ (1.26) The following options outstanding and warrants to purchase common stock were excluded from the computation of diluted net loss per share for the periods presented because the effect of including such shares would have been antidilutive in the periods presented: Years Ended December 31, (in thousands) 2015 2014 2013 Options outstanding 19,468 16,491 14,070 Warrants to purchase common stock 5,500 5,500 5,500 |
Segment And Geographic Informat
Segment And Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment And Geographic Information [Abstract] | |
Segment And Geographic Information | NOTE 11. SEGMENT AND GEOGRAPHIC INFORMATION We are organized as, and operate in, one reportable segment: the development, manufacturing and marketing of an integrated platform for genetic analysis. Our chief operating decision-maker is our Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis for purposes of evaluating financial performance and allocating resources, accompanied by information about revenue by geographic regions. Our assets are primarily located in the United States of America and not allocated to any specific region and we do not measure the performance of geographic regions based upon asset-based metrics. Therefore, geographic information is presented only for revenue. Revenue by geographic region is based on the ship to address on the customer order. A summary of our revenue by geographic location for the years ended December 31, 2015, 2014 and 2013 is as follows , with Roche related contractual revenue classified as revenue from the United States : Years Ended December 31, (in millions) 2015 2014 2013 North America $ 68.8 $ 34.8 $ 13.6 Europe 9.0 10.1 9.2 Asia 15.0 15.7 5.4 Total $ 92.8 $ 60.6 $ 28.2 |
Unaudited Selected Quarterly Fi
Unaudited Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Unaudited Selected Quarterly Financial Data [Abstract] | |
Unaudited Selected Quarterly Financial Data | NOTE 1 2 . UNAUDITED SELECTED QUARTERLY FINANCIAL DATA The following tables summarize the unaudited quarterly financial data for the last two fiscal years: Fiscal 2015 Quarter Ended (in thousands, except per share data) March 31, June 30, September 30, December 31, Total revenue $ 17,645 $ 24,939 (1) $ 13,917 $ 36,281 (1) Total gross profit 5,927 14,506 6,551 26,466 Total operating expenses 25,255 25,864 3,937 (2) 27,528 Income (loss) from operations (19,328) (11,358) 2,614 (2) (1,062) Net income (loss) (20,173) (11,935) 1,821 (2) (1,409) Net income (loss) per share Basic $ (0.27) $ (0.16) $ 0.02 (2) $ (0.02) Diluted $ (0.27) $ (0.16) $ 0.02 (2) $ (0.02) Fiscal 2014 Quarter Ended March 31, June 30, September 30, December 31, Total revenue $ 11,642 $ 11,425 $ 20,623 (1) $ 16,904 Total gross profit 2,676 3,126 13,162 4,438 Total operating expenses 20,921 21,428 21,575 22,332 Loss from operations (18,245) (18,302) (8,413) (17,894) Net loss (18,886) (19,136) (9,163) (18,975) Basic and diluted net loss per share $ (0.28) $ (0.27) $ (0.13) $ (0.26) (1) During the third quarter ended September 30, 2014, we achieved the first development milestone as provided in the Roche Agreement and we reco gnized the related $10.0 million as contractual revenue. We achieved the second and third ( final ) development milestones and recognized the related $10.0 million and $20.0 million, respectively, as contractual revenue during the quarters ended June 30, 2015 and December 31, 2015, respectively. See “Note 3. Contractual r evenue” for additional information . (2) For the quarter ended September 30, 2015, we recognized a one-time gain on lease amendments of $23.0 million, which was recorded in operating expenses on our statement of operations and comprehensive income (loss) for the period. See “Note 7 . Co mmitments and contingencies ” for additional information . |
Summary Of Significant Accoun19
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Presentation And Consolidation | Basis of Presentation and Consolidation Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or U.S. GAAP, as set forth in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. The consolidated financial statements include the accounts of Pacific Biosciences and our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Translation adjustments resulting from translating foreign subsidiaries’ results of operations and assets and liabilities into U.S. dollars are immaterial for all periods presented. |
Use Of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the financial statements. Our estimates include, but are not limited to, the valuation of inventory, revenue valuation, the valuation of a financing derivative and long-term notes, the valuation and recognition of share-based compensation, the delivery period for collaboration agreements, the useful lives assigned to long-lived assets, and the computation provisions for income taxes. Actual results could differ materially from these estimates. During 2013 we entered into a Development, Commercialization and License Agreement (the “Roche Agreement”) with F. Hoffman-La Roche Ltd (“Roche”) and received a non-refundable up-front payment of $35.0 million. Revenue for the year ended December 31, 2014 included f our quarterly periods of amortization of $1.7 million from the non-refundable up-front payment of $35.0 million. D uring the first quarter of 2015, we revised the estimated period over which the delivery of elements pursuant to the Roche Agreement is expected to occur, due to an increased level of certainty regarding the development period. As a result, we are, on a prospective basis, recognizing the remaining deferred contractual revenue associated with the upfront payment received under the Roche Agreement over the revised estimated remaining development period. For the year ended December 31, 2015, this change in estimate increased contractual revenue by $7.6 million , and decreased our basic and diluted net loss per share by $0.10 per share. |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments The carrying amount of our accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses and other liabilities, current, approximate fair value due to their short maturities. The carrying value of our other liabilities, non-current, approximates fair value due to the time to maturity and prevailing market rates. The fair value hierarchy established under U.S. GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are as follows: • Level 1: quoted prices in active markets for identical assets or liabilities; • Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We consider an active market as one in which transactions for the asset or liability occurs with sufficient frequency and volume to provide pricing in formation on an ongoing basis. Conversely, we view an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our non-performance risk, or that of our counterparty, is considered in determining the fair values of liabilities and assets, respectively. Our cash deposits and money market funds are classified within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. Our investments are classified as Level 2 instruments based on market pricing and other observable inputs. None of our investments are classified within Level 3 of the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the entire fair value measurement requires management to make judgments and consider factors specific to the asset or liability. Assets and Liabilities M easu red at Fair Value on a Recurring B asis The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis as of December 31, 201 5 and 201 4 , respectively (in thousands): December 31, 2015 December 31, 2014 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents: Cash and money market funds $ 22,034 $ — $ — $ 22,034 $ 21,952 $ — $ — $ 21,952 Commercial paper — 8,595 — 8,595 — 14,497 — 14,497 US government & agency securities — 3,000 — 3,000 — — — — Total cash and cash equivalents 22,034 11,595 — 33,629 21,952 14,497 — 36,449 Investments: Commercial paper — 15,903 — 15,903 — 43,653 — 43,653 Corporate debt securities — 1,265 — 1,265 — 8,173 — 8,173 US government & agency securities — 28,136 — 28,136 Asset backed securities — 3,337 — 3,337 — 13,073 — 13,073 Total investments — 48,641 — 48,641 — 64,899 — 64,899 Long-term restricted cash: Cash 4,500 — — 4,500 — — — — Total assets measured at fair value $ 26,534 $ 60,236 $ — $ 86,770 $ 21,952 $ 79,396 $ — $ 101,348 Liabilities Financing derivative $ — $ — $ 600 $ 600 $ — $ — $ 944 $ 944 Total liabilities measured at fair value $ — $ — $ 600 $ 600 $ — $ — $ 944 $ 944 The estimated fair value of the Financing Derivative liability (as defined in Note 6 Notes payable) was determined using Level 3 inputs, or significant unobservable inputs. Changes to the estimated fair value of the Financing Derivative are recorded in “Other income (expense), net” in the consolidated statements of operations and comprehensive loss. The following table provides the changes in the fair value of the Financial Derivative for the year ended December 31, 2015 and 201 4 (in thousands), respectively. Financing Derivative Amount Balance as of December 31, 2013 $ 549 Loss on change in fair value of Financing Derivative 395 Balance as of December 31, 2014 944 Gain on change in fair value of Financing Derivative (344) Balance as of December 31, 2015 $ 600 For the year ended December 31, 201 5 , there were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis and our valuation techniques did not change compared to the prior year. Financial Assets and Liabilities Not Measured at Fair V alue on a Recurring B asis The carrying amount of our accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses and other current liabilities approximate fair value due to their short maturities. The carrying value of our facility financing obligation approximates fair value due to the time to maturity and prevailing market rates. We determined the fair value of the Notes (as defined in Note 6 Notes payable) from the debt facility we entered into during the first quarter of 2013 using Level 3 inputs, or significant unobservable inputs. The value of the Notes was determined by comparing the difference between the fair value of the Notes with and without the Financing Derivative by calculating the respective present values from future cash flows using a 13.5% and 19.5% weighted average market yield at December 31, 2015 and December 31, 2014, respectively . Refer to Note 6 Notes payable for addition al details regarding the Notes. The estimated fair value and carrying value of the Notes are as follows (in thousands): December 31, 2015 December 31, 2014 Fair Value Carrying Value Fair Value Carrying Value Long-term notes payable $ 18,037 $ 14,948 $ 14,817 $ 13,991 |
Cash And Cash Equivalents | Cash and Cash E quivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Investments | Investments We have designated all investments as available-for-sale and therefore, such investments are reported at fair value, with unrealized gains and losses recognized in accumulated other comprehensive income (loss) (“OCI”) in stockholders’ equity. The cost of marketable securities is adjusted for the amortization of premiums and discounts to expected maturity. Premium and discount amortization is included in other income, net. Realized gains and losses, as well as interest income, on available-for-sale securities are also included in other income, net. The cost of securities sold is based on the specific identification method. We include all of our available-for-sale securities in current assets. All of our investments are subject to a periodic impairment review. We recognize an impairment charge when a decline in the fair value of our investments below the cost basis is judged to be other-than-temporary. Factors considered in determining whether a loss is temporary include the length of time and extent to which the investments fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, extent of the loss related to credit of the issuer, the expected cash flows from the security, our intent to sell the security and whether or not we will be required to sell the security before the recovery of its amortized cost. During the years ended December 31, 2015, 2014 and 2013, we did not recognize any impairment charges on our investments as it is more likely than not that we will recover their amortized cost basis upon sale or maturity. |
Concentration Of Credit Risk | Concentration of Credit Risk The counterparties to the agreements relating to our investment securities consist of various major corporations, financial institutions, municipalities and government agencies of high credit standing. Our accounts receivable are derived from net revenue to customers and distributors located in the United States and other countries. We perform credit evaluations of our customers’ financial condition and, generally, require no collateral from our customers. We regularly review our accounts receivable including consideration of factors such as historical experience, credit quality, the age of the accounts receivable balances and current economic conditions that may affect a customer’s ability to pay. We have not experienced any significant credit losses to date. For the year ended December 31, 2015, 2014 and 2013, excluding contractual revenue, no single end customer accounted for more than 10% of our total revenue , respectively. As of December 31, 2015 and 2014 , 64% and 58% , respectively, of our accounts receivable were from domestic customers. As of December 31, 2015, four customers each represented more than 10% of our net accounts receivable . As of December 31, 2014, three customers each represented more than 10% of our net accounts receivable . |
Inventory | Inventory Inventory is valued at the lower of standard cost, which approximates actual cost, or market. Cost is determined using the first-in, first-out (“FIFO”) method. Adjustments to reduce the cost of inventory to its net realizable value, if required, are made for estimated excess or obsolete balances. |
Property And Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost, net of accumulated depreciation and any impairment charges. Depreciation is computed using the straight-line method over the estimated useful life of the asset, generally two to three years for computer equipment, three to five years for software, three to seven years for furniture and fixtures, three years for lab equipment and 30 years for buildings. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the related asset. Major improvements are capitalized, while maintenance and repairs are expensed as incurred. In connection with build-to-suit lease arrangements that we account for as if we own the facility, we record the facility at the fair value at the date construction commences, prior to significant renovations, plus the costs of the renovations. We determined the fair value of such facilities prior to renovation based on several factors, including an appraisal conducted by an independent licensed appraiser. |
Long-Term Restricted Cash | Long-term Restricted Cash Long-term restricted cash as of December 31, 2015 was comprised of $4.5 million pledged as collateral for an irrevocable letter of credit for our O’Brien Lease entered into in July 2015 . The letters of credit currently expire in more than one year. The time deposit securing the letter of credit was classified as Long-term restricted cash in the accompanying consolidated balance sheets as of December 31, 2015. |
Impairment Of Long-Lived Assets | Impairment of Long-Lived Assets We periodically review property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset is impaired or the estimated useful lives are no longer appropriate. Fair value is estimated based on discounted future cash flows. If indicators of impairment exist and the undiscounted projected cash flows associated with such assets are less than the carrying amount of the asset, an impairment loss is recorded to write the asset down to its estimated fair value. To date, we have not recorded any impairment charges. |
Revenue Recognition | Revenue Recognition Our revenue is generated primarily from the sale of products and services, in addition to revenue from collaboration agreements. Product revenue consists of sales of our instruments and related consumables; Service and other revenue primarily consist of revenue earned from product maintenance agreements , instrument lease agreements and grant revenue. Contractual revenue relates to revenue recognized from the collaboration agreement under which we received an upfront fee and may receive contingent milestone payments. Our deliverables under the arrangement includes licenses to intellectual property rights and research and development services. We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable, and collectability is reasonably assured. For instances where final acceptance of the product or system is required, revenue is deferred until all acceptance criteria have been met. Revenue for product sales is generally recognized upon customer acceptance. For certain qualified distributors revenue is recognized based upon shipment terms. Revenue for product maintenance agreements is recognized when earned, which is generally ratably over the service period. In order to assess whether the price is fixed or determinable, we evaluate whether refund rights exist. If refund rights exist or payment terms are based on future performance, we defer revenue recognition until the price becomes fixed or determinable. We assess collectability based on a number of factors, including customer creditworthiness. If we determine that collection of amounts due is not reasonably assured, revenue recognition is deferred until receipt of payment. We regularly enter into arrangements, comprised of one or more contracts, from which revenue is derived from multiple deliverables including a mix of products and or services. Revenue recognition for contracts with multiple deliverables is based on the individual units of accounting determined to exist in the contract. A delivered item is considered a separate unit of accounting when (i) the delivered item has value to the customer on a stand-alone basis; and (ii) if a general right of return exists, the delivery or performance of an undelivered item is considered probable and under our control. Items are considered to have stand-alone value when they are sold separately by any vendor or when the customer could resell the item on a stand-alone basis. Our revenue arrangements generally do not have a general right of return. When a deliverable does not meet the criteria to be considered a separate unit of accounting, we group it with other deliverables that, when combined, meet the criteria, and the appropriate allocation of arrangement consideration and revenue recognition is determined. Consideration is allocated at the inception of the contract to all deliverables based on their relative selling price. In order to determine the relative selling price of a deliverable, we apply, in order, vendor-specific objective evidence (“VSOE”); third-party evidence if VSOE is not available; and lastly our best estimate of selling price for the deliverable if neither VSOE nor third-party evidence is available. In order to establish VSOE, we must regularly sell the product or service on a standalone basis with a substantial majority of sales priced within a relatively narrow range. If an insufficient number of standalone sales exist and VSOE cannot be determined, we then consider whether third party evidence can be used to establish selling price. Due to the lack of similar products and services sold by other companies within our industry, we have not established selling price using third-party evidence. If neither VSOE nor third party evidence of selling price exists, we determine our best estimate of selling price using a combination of prices set by our pricing committee adjusted for applicable discounts and customer orders received to date. For our collaboration agreement, the process for determining estimates of selling prices of the identifiable deliverables involves significant judgments and estimates to be made by management. Our process considers multiple factors such as estimated headcount, annual research and development budget, estimated length of the research and development period and estimated transfer price on cost, which may vary over time, depending upon the circumstances, and are specific to each deliverable. If the estimated obligation period of one or more deliverables should change, the future amortization of the revenue would also change. Deferred service revenue primarily represents product maintenance agreement revenue that is expected to be recognized over the related service period, generally one to three years. For instrument lease agreements we entered into with our customers so far, they are classified as operating-type leases and revenue f rom these leases is recognized on a straight-line basis over the respective lease term, once the les s ee takes (or has the right to take) control/possession of the property under the lease. Effectively, this occurs once installation is complete and acceptance has been obtained. We recognize milestone revenues as they become earned. Based on Accounting Standards Codification, or ASC , Topic 605-28, Revenue Recognition — Milestone Method , we evaluate contingent milestones at inception of the agreement, and recognize consideration that is contingent upon the achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone is considered substantive in its entirety. Milestones are considered substantive if the consideration earned from the achievement of the milestone (i) is consistent with performance required to achieve the milestone or the increase in value to the delivered item, (ii) relates solely to past performance and (iii) is reasonable relative to all of the other deliverables and payments within the arrangement. |
Cost Of Revenue | Cost of Revenue Cost of revenue reflects the direct cost of product components, third-party manufacturing services and our internal manufacturing overhead and customer service infrastructure costs incurred to produce, deliver, maintain and support our instruments, consumables, and services. There are no incremental costs associated with our contractual revenue; all product development costs are reflected in research and development expense. Manufacturing overhead is predominantly comprised of labor costs. We determine and capitalize manufacturing overhead into inventory based on a standard cost model that approximates actual costs. Prior to achieving manufacturing volumes that correlated with our estimated normal capacity (the production levels expected to be achieved over a number of periods under normal circumstances with available resources), we based our capitalized overhead relative to our normal capacity. Prior to achieving normal capacity, excess manufacturing resources were engaged in research and development activities, including; next generation products, internal use research products, and general support activities. As such, manufacturing costs in excess of amounts reflected in inventory were expensed as a component of research and development expense. Service costs include the direct costs of components used in support, repair and maintenance of customer instruments as well as the cost of personnel, materials, shipping and support infrastructure necessary to support the installed customer base. Prior to the fourth quarter of 2013, the capacity of our existing service infrastructure exceeded the number of installed customer instruments. Therefore, management estimated the capacity of the existing service infrastructure and recognized the service-related cost of revenue based on the installed base. As a result, prior to the fourth quarter of 2013, total service infrastructure costs exceeded the costs associated with the support of customer instruments and such excess costs were included as a component of sales, general and administrative expense. |
Research And Development | Research and Development Research and development expense consists primarily of expenses for personnel engaged in the development of our SMRT technology, the design and development of our future products and current product enhancements. These expenses also include prototype-related expenditures, development equipment and supplies, facilities costs and other related overhead. We expense research and development costs during the period in which the costs are incurred. However, we defer and capitalize non-refundable advance payments made for research and development activities until the related goods are received or the related services are rendered. |
Leases | Leases We categorize leases at their inception as either operating or capital leases. On certain of our lease agreements, we may receive tenant improvement allowances, rent holidays and other incentives. Rent expense is recorded on a straight-line basis over the term of the lease. The difference between rent expense recognized and amounts paid under the lease agreement is recorded as deferred rent in the balance sheets. Leasehold improvements are capitalized at cost and depreciated over the shorter of their expected useful life or the life of the lease. Tenant improvements afforded to us by landlord incentives are recorded as leasehold improvement assets with corresponding deferred rent liabilities. For build-to-suit lease arrangements, we evaluate the extent of our financial and operational involvement in the tenant improvements to determine whether we are considered the owner of the construction project under U.S. GAAP. When we are considered the owner of a project, we record the shell of the facility at its fair value at the date construction commences with a corresponding facility financing obligation. Improvements to the facility during the construction project are capitalized and, to the extent funded by lessor afforded incentives, with corresponding increases to the facility financing obligation. Payments we make under leases in which we are considered the owner of the facility are allocated to land rental expense, based on the relative values of the land and building at the commencement of construction, reductions of the facility financing obligation and interest expense recognized on the outstanding obligation. To the extent gross future payments do not equal the recorded liability, the liability is settled upon return of the facility to the lessor. Any difference between the book value of the assets and remaining facility obligation are recorded in other expense, net. For existing arrangements, the differences are expected to be immaterial. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method, which requires, among other things, that deferred income taxes be provided for temporary differences between the tax basis of our assets and liabilities and the amounts reported in the financial statements. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses and research and development credit carryforwards. A full valuation allowance is provided against our net deferred tax assets as it is more likely than not that the deferred tax assets will not be fully realized. We review our positions taken relative to income taxes. To the extent our tax positions are more likely than not to result in the payout of additional taxes, we accrue the estimated amount of tax for such uncertain positions. |
Stock-Based Compensation | Stock-based Compensation Stock-based compensation expense for all stock-based compensation awards is based on the grant date fair value estimated using the Black-Scholes option pricing model. We have limited historical information available to support the underlying estimates of certain assumptions required to value stock options. The expected term of options is estimated based on the simplified method. We do not have sufficient trading history to solely rely on the volatility of our own common stock for establishing expected volatility. Therefore, we based our expected volatility on the historical stock volatilities of our common stock as well as several comparable publicly listed companies over a period equal to the expected term of the options. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expe cted term of the stock option. We estimate our forfeiture rate based on an analysis of our actual forfeitures and will continue to evaluate the adequacy of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover behavior and other factors. The impact from a forfeiture rate adjustment will be recognized in full in the period of adjustment, and if the actual number of future forfeitures differs from that which was estimate d , we may be required to record adjustments to stock-based compensation expense in future periods. We recognize compensation expense on a straight-line basis over the requisite service period. We elected to use the simplified method to calculate the beginning pool of excess tax benefits. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (loss) Other comprehensive income (loss) is comprised of unrealized gains (losses) on our investment securities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Standards In November 2015, the FASB issued ASU 2015-17 , Income Taxes: Balance Sheet Classification of Deferred Taxes , which requires that deferred tax assets and liabilities be classified as noncurrent on the consolidated balance sheet. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted, and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities, and we have elected to early adopt ASU 2015-17 prospectively, effective for the year ended December 31, 2015, as permitted by the standard. The early adoption of this update did not have a material impact on our consolidated financial statements. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. ASU 2015-03 requires an entity to present such costs in the consolidated balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015 and is effective for us in the first quarter of fiscal 2016. Early adoption is permitted, and we elected to apply the new guidance retrospectively to each prior period presented, as permitted by the standard. Early adoption is also permitted for financial statements that have not been previously issued, and we elected to early adopt the accounting standard for the year ended December 31, 2015, as permitted by the standard. The early adoption of ASU 2015-03 did not have a material impact on the consolidated statements of operations and comprehensive loss. The impact of early adoption on the consolidated balance sheets for the periods presented is noted in the table below (in thousands): December 31, 2015 December 31, 2014 (in thousands) Prior to Adoption of ASU 2015-03 ASU 2015-03 Adjustment As adopted Prior to Adoption of ASU 2015-03 ASU 2015-03 Adjustment As adopted Other long-term assets $ 7,631 $ (113) $ 7,518 $ 162 $ (133) $ 29 Total assets 7,631 (113) 7,518 162 (133) 29 Notes payable 15,061 (113) 14,948 14,124 (133) 13,991 Total liabilities $ 15,061 $ (113) $ 14,948 $ 14,124 $ (133) $ 13,991 Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases. The guidance in ASU 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases. ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the new guidance to determine the impact it may have to our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory , which simplifies the subsequent measurement of inventory by replacing today’s lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out (“LIFO”) and the retail inventory method (“RIM”). Entities that use LIFO or RIM will continue to use existing impairment models (e.g., entities using LIFO would apply the lower of cost or market test). ASU 2015-11 is effective for annual report periods beginning after December 15, 2016 and is effective for us in the first quarter of 2017. Early adoption is permitted as of the beginning of an interim or annual reporting period. The new guidance must be applied prospectively after the date of adoption. The adoption of ASU 2015-11 is not expected to have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date , which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. Accordingly, the updated standard is effective for us in the first quarter of 2018. We are currently evaluating the new guidance to determine the impact it may have to our consolidated financial statements. |
Summary Of Significant Accoun20
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Assets And Liabilities Measured At Fair Value Classified Based On Level Of Input | December 31, 2015 December 31, 2014 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents: Cash and money market funds $ 22,034 $ — $ — $ 22,034 $ 21,952 $ — $ — $ 21,952 Commercial paper — 8,595 — 8,595 — 14,497 — 14,497 US government & agency securities — 3,000 — 3,000 — — — — Total cash and cash equivalents 22,034 11,595 — 33,629 21,952 14,497 — 36,449 Investments: Commercial paper — 15,903 — 15,903 — 43,653 — 43,653 Corporate debt securities — 1,265 — 1,265 — 8,173 — 8,173 US government & agency securities — 28,136 — 28,136 Asset backed securities — 3,337 — 3,337 — 13,073 — 13,073 Total investments — 48,641 — 48,641 — 64,899 — 64,899 Long-term restricted cash: Cash 4,500 — — 4,500 — — — — Total assets measured at fair value $ 26,534 $ 60,236 $ — $ 86,770 $ 21,952 $ 79,396 $ — $ 101,348 Liabilities Financing derivative $ — $ — $ 600 $ 600 $ — $ — $ 944 $ 944 Total liabilities measured at fair value $ — $ — $ 600 $ 600 $ — $ — $ 944 $ 944 |
Changes In Fair Value Of Financial Derivative | Financing Derivative Amount Balance as of December 31, 2013 $ 549 Loss on change in fair value of Financing Derivative 395 Balance as of December 31, 2014 944 Gain on change in fair value of Financing Derivative (344) Balance as of December 31, 2015 $ 600 |
Estimated Fair Value And Carrying Value of Notes | December 31, 2015 December 31, 2014 Fair Value Carrying Value Fair Value Carrying Value Long-term notes payable $ 18,037 $ 14,948 $ 14,817 $ 13,991 |
Impact Of Early Adoption On Consolidated Balance Sheets | December 31, 2015 December 31, 2014 (in thousands) Prior to Adoption of ASU 2015-03 ASU 2015-03 Adjustment As adopted Prior to Adoption of ASU 2015-03 ASU 2015-03 Adjustment As adopted Other long-term assets $ 7,631 $ (113) $ 7,518 $ 162 $ (133) $ 29 Total assets 7,631 (113) 7,518 162 (133) 29 Notes payable 15,061 (113) 14,948 14,124 (133) 13,991 Total liabilities $ 15,061 $ (113) $ 14,948 $ 14,124 $ (133) $ 13,991 |
Cash And Cash Equivalents And21
Cash And Cash Equivalents And Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cash And Cash Equivalents And Investments [Abstract] | |
Summary Of Cash, Cash Equivalents And Investments | As of December 31, 2015 Gross Gross Amortized unrealized unrealized Fair Cost gains losses Value Cash and cash equivalents: Cash and money market funds $ 22,034 $ — $ — $ 22,034 Commercial paper 8,595 — — 8,595 US government & agency securities 3,000 — — 3,000 Total cash and cash equivalents 33,629 — — 33,629 Investments: Commercial paper 15,903 2 (2) 15,903 Corporate debt securities 1,266 — (1) 1,265 Asset backed securities 3,337 — — 3,337 US government & agency securities 28,142 4 (10) 28,136 Total investments 48,648 6 (13) 48,641 Long-term restricted cash: Cash 4,500 — — 4,500 Total cash, cash equivalents and investments $ 82,277 $ 6 $ (13) $ 82,270 Total Long-term restricted cash $ 4,500 $ — $ — $ 4,500 As of December 31, 2014 Gross Gross Amortized unrealized unrealized Fair Cost gains losses Value Cash and cash equivalents: Cash and money market funds $ 21,952 $ — $ — $ 21,952 Commercial paper 14,496 1 — 14,497 Total cash and cash equivalents 36,448 1 — 36,449 Investments: Commercial paper 43,648 5 — 43,653 Corporate debt securities 8,170 7 (4) 8,173 Asset backed securities 13,073 4 (4) 13,073 Total investments 64,891 16 (8) 64,899 Total cash, cash equivalents and investments $ 101,339 $ 17 $ (8) $ 101,348 |
Summary Of Contractual Maturities Of Cash Equivalents And Available-For-Sale Investments | (in thousands) Fair Value Due in one year or less $ 60,236 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Components [Abstract] | |
Components Of Inventory | December 31, (in thousands) 2015 2014 Purchased materials $ 4,041 $ 3,150 Work in process 3,576 6,115 Finished goods 3,338 2,070 Inventory $ 10,955 $ 11,335 |
Components Of Prepaid Expenses And Other Current Assets | December 31, (in thousands) 2015 2014 Receivable from existing landlord $ 10,000 $ — Prepaid expenses 1,330 1,564 Other current assets 741 107 Prepaid expenses and other current assets $ 12,071 $ 1,671 |
Components Of Property And Equipment, Net | December 31, (in thousands) 2015 2014 Building $ 1,160 $ 1,160 Laboratory equipment and machinery 20,358 17,169 Leasehold improvements 8,348 8,348 Computer equipment 6,781 4,885 Software 4,798 4,485 Furniture and fixtures 968 958 Construction in progress — 53 42,413 37,058 Less: Accumulated depreciation (33,865) (30,457) Property and equipment, net $ 8,548 $ 6,601 |
Schedule Of Accrued Expenses | December 31, (in thousands) 2015 2014 Salaries and benefits $ 8,129 $ 6,325 Accrued license and development services 5,459 3,741 Inventory accrual, professional services, accrued interest and other 1,963 1,375 Accrued expenses $ 15,551 $ 11,441 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Payable [Abstract] | |
Schedule Of Debt Payments | 2016 $ 1,799 2017 1,794 2018 5,632 2019 2,817 2020 15,142 Total remaining payments 27,184 Less: interest and discounts (12,236) Notes payable 14,948 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies [Abstract] | |
Schedule Of Minimum Future Lease Payments Receivable | Amount Years ending December 31, (in thousands) 2016 $ 131 2017 146 2018 112 Total minimum lease payments $ 389 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Reconciliation Of Federal Income Tax Rate | Years ended December 31, 2015 2014 2013 Statutory tax rate 35.0 % 35.0 % 35.0 % State tax rate, net of federal benefit (3.5) 3.8 2.1 Stock-based compensation (4.0) (1.3) (1.7) R&D credit 11.0 4.0 4.3 Other (0.6) (0.0) (0.3) Change in valuation allowance (37.9) (41.5) (39.4) Effective income tax rate 0.0 % 0.0 % 0.0 % |
Reconciliation Of Deferred Tax Assets And Liabilities | December 31, Deferred tax assets: 2015 2014 Net operating loss carryforwards $ 235,659 $ 225,115 Research and development credits 28,346 24,881 Depreciation 1,403 3,241 Accruals and reserves 20,385 21,737 Total deferred tax assets 285,793 274,974 Less: Valuation allowance (285,556) (273,567) Deferred tax liabilities: Deferred rent (237) (1,407) Net deferred tax assets $ — $ — |
Reconciliation Of Unrecognized Tax Benefit Accounts | Balance as of December 31, 2012 $ 9,992 Increase in balance related to tax positions taken during current year 1,642 Balance as of December 31, 2013 11,634 Increase in balance related to tax positions taken in prior year 2,959 Increase in balance related to tax positions taken during current year 2,359 Balance as of December 31, 2014 16,952 Decrease in balance related to tax positions taken in prior year (44) Increase in balance related to tax positions taken during current year 1,827 Balance as of December 31, 2015 $ 18,735 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity [Line Items] | |
Summary Of Stock Option Activity | Stock Options Outstanding Shares available Number Weighted average for grant of shares Exercise price exercise price Balances, December 31, 2014 4,874 16,491 $ 0.70 – 16.00 $ 5.10 Additional shares reserved 4,799 Options granted (4,500) 4,500 $ 4.55 – 10.07 $ 7.51 Options exercised — (882) $ 0.70 – 10.84 $ 3.27 Options canceled 641 (641) $ 1.16 – 15.98 $ 6.60 Balances, December 31, 2015 5,814 19,468 $ 0.70 – 16.00 $ 5.69 |
Reconciliation Of Outstanding And Exercisable Stock Options | Options Outstanding Options Exercisable Weighted average Number remaining contractual Weighted average Number Weighted average Exercise price outstanding life (Years) exercise price vested exercise price $ 0.00 – 1.60 827,488 6.75 $ 1.17 502,194 $ 1.17 $ 1.60 – 3.20 3,802,953 6.04 $ 2.42 2,978,692 $ 2.47 $ 3.20 – 4.80 4,226,360 6.66 $ 4.10 2,947,959 $ 4.07 $ 4.80 – 6.40 3,486,254 8.23 $ 5.65 1,288,411 $ 5.68 $ 6.40 – 8.00 3,264,464 7.97 $ 6.98 1,229,713 $ 6.97 $ 8.00 – 9.60 1,088,077 4.10 $ 8.50 1,088,077 $ 8.50 $ 9.60 – 11.20 1,627,201 9.15 $ 10.18 246,501 $ 10.79 $ 11.20 – 12.80 621,077 5.08 $ 12.10 592,344 $ 12.12 $ 12.80 – 14.40 386,100 5.00 $ 13.87 378,102 $ 13.87 $ 14.40 – 16.00 137,750 4.86 $ 15.99 137,750 $ 15.99 19,467,724 7.01 $ 5.69 11,389,743 $ 5.47 |
Schedule Of Stock-Based Compensation Expense | Years Ended December 31, 2015 2014 2013 Cost of revenue $ 1,313 $ 758 $ 523 Research and development 5,196 3,785 4,052 Sales, general and administrative 7,331 5,400 5,330 Total stock-based compensation expense $ 13,840 $ 9,943 $ 9,905 |
Stock Options [Member] | |
Stockholders' Equity [Line Items] | |
Schedule Of Fair Value Of Employee Stock Options | Years Ended December 31, 2015 2014 2013 Expected term (years) 6.1 years 6.1 years 6.1 years Expected volatility 70.0% 70.0% 66.8% Risk-free interest rate 1.7% 1.9% 1.3% Dividend yield — — — |
ESPP [Member] | |
Stockholders' Equity [Line Items] | |
Schedule Of Fair Value Of Employee Stock Options | Years Ended December 31, 2015 2014 2013 Expected term (years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Expected volatility 70.0% 70.0% 70.0% Risk-free interest rate 0.1% - 0.7% 0.1% - 0.5% 0.1% - 0.4% Dividend yield — — — |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Net Loss Per Share [Abstract] | |
Computation Of Basic And Diluted Net Loss Per Share | Years Ended December 31, 2015 2014 2013 Numerator: Net loss $ (31,696) $ (66,160) $ (79,293) Denominator: Weighted average shares used in computation of basic and diluted net loss per share 75,614 70,475 62,784 Basic and diluted net loss per share $ (0.42) $ (0.94) $ (1.26) |
Anti-Dilutive Shares Excluded From Computation Of Diluted Net Loss Per Share | Years Ended December 31, (in thousands) 2015 2014 2013 Options outstanding 19,468 16,491 14,070 Warrants to purchase common stock 5,500 5,500 5,500 |
Segment And Geographic Inform28
Segment And Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment And Geographic Information [Abstract] | |
Schedule Of Revenue By Geographic Location | Years Ended December 31, (in millions) 2015 2014 2013 North America $ 68.8 $ 34.8 $ 13.6 Europe 9.0 10.1 9.2 Asia 15.0 15.7 5.4 Total $ 92.8 $ 60.6 $ 28.2 |
Unaudited Selected Quarterly 29
Unaudited Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Unaudited Selected Quarterly Financial Data [Abstract] | |
Schedule Of Unaudited Quarterly Financial Data | Fiscal 2015 Quarter Ended (in thousands, except per share data) March 31, June 30, September 30, December 31, Total revenue $ 17,645 $ 24,939 (1) $ 13,917 $ 36,281 (1) Total gross profit 5,927 14,506 6,551 26,466 Total operating expenses 25,255 25,864 3,937 (2) 27,528 Income (loss) from operations (19,328) (11,358) 2,614 (2) (1,062) Net income (loss) (20,173) (11,935) 1,821 (2) (1,409) Net income (loss) per share Basic $ (0.27) $ (0.16) $ 0.02 (2) $ (0.02) Diluted $ (0.27) $ (0.16) $ 0.02 (2) $ (0.02) Fiscal 2014 Quarter Ended March 31, June 30, September 30, December 31, Total revenue $ 11,642 $ 11,425 $ 20,623 (1) $ 16,904 Total gross profit 2,676 3,126 13,162 4,438 Total operating expenses 20,921 21,428 21,575 22,332 Loss from operations (18,245) (18,302) (8,413) (17,894) Net loss (18,886) (19,136) (9,163) (18,975) Basic and diluted net loss per share $ (0.28) $ (0.27) $ (0.13) $ (0.26) (1) During the third quarter ended September 30, 2014, we achieved the first development milestone as provided in the Roche Agreement and we reco gnized the related $10.0 million as contractual revenue. We achieved the second and third ( final ) development milestones and recognized the related $10.0 million and $20.0 million, respectively, as contractual revenue during the quarters ended June 30, 2015 and December 31, 2015, respectively. See “Note 3. Contractual r evenue” for additional information . (2) For the quarter ended September 30, 2015, we recognized a one-time gain on lease amendments of $23.0 million, which was recorded in operating expenses on our statement of operations and comprehensive income (loss) for the period. See “Note 7 . Co mmitments and contingencies ” for additional information . |
Summary Of Significant Accoun30
Summary Of Significant Accounting Policies (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2013USD ($) | Dec. 31, 2015USD ($)customer | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($)customer$ / shares | Sep. 30, 2014USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | Mar. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($)customer$ / shares | Dec. 31, 2014USD ($)customer | Dec. 31, 2013USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Basic and diluted net loss per share | $ / shares | $ (0.26) | $ (0.13) | $ (0.27) | $ (0.28) | |||||||||
Fair value assets liabilities transfer between levels | $ 0 | ||||||||||||
Future cash flows weighted average market yield | 13.50% | 19.50% | 13.50% | 19.50% | |||||||||
Highly liquid investments considered to be cash equivalents, maximum maturity | 3 months | ||||||||||||
Impairment charges on investments | $ 0 | $ 0 | $ 0 | ||||||||||
Long-term restricted cash | $ 4,500,000 | $ 4,500,000 | |||||||||||
Accounts Receivable [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Number of individual customers | customer | 4 | 3 | 4 | 3 | |||||||||
Accounts Receivable [Member] | Domestic Customers [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Concentration risk, percentage | 64.00% | 58.00% | |||||||||||
Lab Equipment [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property and equipment estimated useful life | 3 years | ||||||||||||
Building [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property and equipment estimated useful life | 30 years | ||||||||||||
Minimum [Member] | Accounts Receivable [Member] | Customer A [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Concentration risk, percentage | 10.00% | 10.00% | |||||||||||
Minimum [Member] | Accounts Receivable [Member] | Customer B [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Concentration risk, percentage | 10.00% | 10.00% | |||||||||||
Minimum [Member] | Accounts Receivable [Member] | Customer C [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Concentration risk, percentage | 10.00% | 10.00% | |||||||||||
Minimum [Member] | Accounts Receivable [Member] | Customer D [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Concentration risk, percentage | 10.00% | ||||||||||||
Minimum [Member] | Computer Equipment [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property and equipment estimated useful life | 2 years | ||||||||||||
Minimum [Member] | Software [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property and equipment estimated useful life | 3 years | ||||||||||||
Minimum [Member] | Furniture and Fixtures [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property and equipment estimated useful life | 3 years | ||||||||||||
Maximum [Member] | Computer Equipment [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property and equipment estimated useful life | 3 years | ||||||||||||
Maximum [Member] | Software [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property and equipment estimated useful life | 5 years | ||||||||||||
Maximum [Member] | Furniture and Fixtures [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property and equipment estimated useful life | 7 years | ||||||||||||
Roche Agreement [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Non-refundable upfront payment | $ 35,000,000 | ||||||||||||
Amortization | $ 3,600,000 | $ 3,600,000 | $ 3,600,000 | $ 3,600,000 | $ 1,700,000 | $ 1,700,000 | $ 1,700,000 | $ 1,700,000 | $ 1,700,000 | ||||
Additional contractual revenue being recognized in the period | $ 1,900,000 | $ 1,900,000 | $ 1,900,000 | $ 1,900,000 | $ 7,600,000 | ||||||||
Basic and diluted net loss per share | $ / shares | $ (0.10) |
Summary Of Significant Accoun31
Summary Of Significant Accounting Policies (Summary Of Assets And Liabilities Measured At Fair Value Classified Based On Level Of Input) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Total assets measured at fair value | $ 86,770 | $ 101,348 |
Liabilities | ||
Total liabilities measured at fair value | 600 | 944 |
Financing Derivative [Member] | ||
Liabilities | ||
Total liabilities measured at fair value | 600 | 944 |
Cash and cash equivalents [Member] | ||
Assets | ||
Total cash and cash equivalents | 33,629 | 36,449 |
Cash and cash equivalents [Member] | Cash and money market funds [Member] | ||
Assets | ||
Total cash and cash equivalents | 22,034 | 21,952 |
Cash and cash equivalents [Member] | Commercial paper [Member] | ||
Assets | ||
Total cash and cash equivalents | 8,595 | 14,497 |
Cash and cash equivalents [Member] | U.S. government and agency securities [Member] | ||
Assets | ||
Total cash and cash equivalents | 3,000 | |
Investments [Member] | ||
Assets | ||
Total investments | 48,641 | 64,899 |
Investments [Member] | Commercial paper [Member] | ||
Assets | ||
Total investments | 15,903 | 43,653 |
Investments [Member] | Corporate debt securities [Member] | ||
Assets | ||
Total investments | 1,265 | 8,173 |
Investments [Member] | U.S. government and agency securities [Member] | ||
Assets | ||
Total investments | 28,136 | |
Investments [Member] | Asset backed securities [Member] | ||
Assets | ||
Total investments | 3,337 | 13,073 |
Long-term restricted cash [Member] | Cash [Member] | ||
Assets | ||
Long-term restricted cash | 4,500 | |
Level 1 [Member] | ||
Assets | ||
Total assets measured at fair value | 26,534 | 21,952 |
Level 1 [Member] | Cash and cash equivalents [Member] | ||
Assets | ||
Total cash and cash equivalents | 22,034 | 21,952 |
Level 1 [Member] | Cash and cash equivalents [Member] | Cash and money market funds [Member] | ||
Assets | ||
Total cash and cash equivalents | 22,034 | 21,952 |
Level 1 [Member] | Long-term restricted cash [Member] | Cash [Member] | ||
Assets | ||
Long-term restricted cash | 4,500 | |
Level 2 [Member] | ||
Assets | ||
Total assets measured at fair value | 60,236 | 79,396 |
Level 2 [Member] | Cash and cash equivalents [Member] | ||
Assets | ||
Total cash and cash equivalents | 11,595 | 14,497 |
Level 2 [Member] | Cash and cash equivalents [Member] | Commercial paper [Member] | ||
Assets | ||
Total cash and cash equivalents | 8,595 | 14,497 |
Level 2 [Member] | Cash and cash equivalents [Member] | U.S. government and agency securities [Member] | ||
Assets | ||
Total cash and cash equivalents | 3,000 | |
Level 2 [Member] | Investments [Member] | ||
Assets | ||
Total investments | 48,641 | 64,899 |
Level 2 [Member] | Investments [Member] | Commercial paper [Member] | ||
Assets | ||
Total investments | 15,903 | 43,653 |
Level 2 [Member] | Investments [Member] | Corporate debt securities [Member] | ||
Assets | ||
Total investments | 1,265 | 8,173 |
Level 2 [Member] | Investments [Member] | U.S. government and agency securities [Member] | ||
Assets | ||
Total investments | 28,136 | |
Level 2 [Member] | Investments [Member] | Asset backed securities [Member] | ||
Assets | ||
Total investments | 3,337 | 13,073 |
Level 3 [Member] | ||
Liabilities | ||
Total liabilities measured at fair value | 600 | 944 |
Level 3 [Member] | Financing Derivative [Member] | ||
Liabilities | ||
Total liabilities measured at fair value | $ 600 | $ 944 |
Summary Of Significant Accoun32
Summary Of Significant Accounting Policies (Changes In Fair Value Of Financial Derivative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | ||
Balance as of December 31 | $ 944 | $ 549 |
(Gain) loss on change in fair value of Financing Derivative | (344) | 395 |
Balance as of December 31 | $ 600 | $ 944 |
Summary Of Significant Accoun33
Summary Of Significant Accounting Policies (Estimated Fair Value And Carrying Value Of Notes) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Estimated Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term notes payable | $ 18,037 | $ 14,817 |
Carrying Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term notes payable | $ 14,948 | $ 13,991 |
Summary Of Significant Accoun34
Summary Of Significant Accounting Policies (Impact Of Early Adoption On Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Other long-term assets | $ 7,518 | $ 29 |
Total assets | 131,107 | 124,390 |
Notes payable | 14,948 | 13,991 |
Total liabilities | 57,567 | 69,441 |
Early Adoption of ASU 2015-03 [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Other long-term assets | 7,518 | 29 |
Total assets | 7,518 | 29 |
Notes payable | 14,948 | 13,991 |
Total liabilities | 14,948 | 13,991 |
Early Adoption of ASU 2015-03 [Member] | Prior to Adoption [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Other long-term assets | 7,631 | 162 |
Total assets | 7,631 | 162 |
Notes payable | 15,061 | 14,124 |
Total liabilities | 15,061 | 14,124 |
Early Adoption of ASU 2015-03 [Member] | Adjustment [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Other long-term assets | (113) | (133) |
Total assets | (113) | (133) |
Notes payable | (113) | (133) |
Total liabilities | $ (113) | $ (133) |
Contractual Revenue (Details)
Contractual Revenue (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2013 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Income (loss) per basic share | $ (0.02) | $ 0.02 | $ (0.16) | $ (0.27) | |||||||
Income (loss) per diluted share | $ (0.02) | ||||||||||
Basic and diluted net loss per share | $ (0.26) | $ (0.13) | $ (0.27) | $ (0.28) | |||||||
Roche Agreement [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Non-refundable upfront payment | $ 35 | ||||||||||
Amortization | $ 3.6 | $ 3.6 | $ 3.6 | $ 3.6 | $ 1.7 | $ 1.7 | $ 1.7 | $ 1.7 | $ 1.7 | ||
Additional contractual revenue being recognized in the period | 1.9 | $ 1.9 | 1.9 | $ 1.9 | $ 7.6 | ||||||
Margin | 100.00% | ||||||||||
Net loss | $ (7.6) | ||||||||||
Basic and diluted net loss per share | $ (0.10) | ||||||||||
Deferred revenue | 12.1 | $ 12.1 | |||||||||
Maximum potential for additional payments to be recognized upon the achievement of certain development milestones | 40 | $ 40 | |||||||||
Deferred revenue, revenue recognized | $ 20 | $ 10 | $ 10 |
Cash And Cash Equivalents And36
Cash And Cash Equivalents And Investments (Summary Of Cash, Cash Equivalents And Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 82,277 | $ 101,339 |
Gross unrealized gains | 6 | 17 |
Gross unrealized losses | (13) | (8) |
Fair Value | 82,270 | 101,348 |
Cash and cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 33,629 | 36,448 |
Gross unrealized gains | 1 | |
Fair Value | 33,629 | 36,449 |
Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 48,648 | 64,891 |
Gross unrealized gains | 6 | 16 |
Gross unrealized losses | (13) | (8) |
Fair Value | 48,641 | 64,899 |
Long-term restricted cash [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,500 | |
Fair Value | 4,500 | |
Cash and money market funds [Member] | Cash and cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 22,034 | 21,952 |
Fair Value | 22,034 | 21,952 |
Commercial paper [Member] | Cash and cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,595 | 14,496 |
Gross unrealized gains | 1 | |
Fair Value | 8,595 | 14,497 |
Commercial paper [Member] | Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 15,903 | 43,648 |
Gross unrealized gains | 2 | 5 |
Gross unrealized losses | (2) | |
Fair Value | 15,903 | 43,653 |
Corporate debt securities [Member] | Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,266 | 8,170 |
Gross unrealized gains | 7 | |
Gross unrealized losses | (1) | (4) |
Fair Value | 1,265 | 8,173 |
Asset backed securities [Member] | Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,337 | 13,073 |
Gross unrealized gains | 4 | |
Gross unrealized losses | (4) | |
Fair Value | 3,337 | $ 13,073 |
U.S. government and agency securities [Member] | Cash and cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,000 | |
Fair Value | 3,000 | |
U.S. government and agency securities [Member] | Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 28,142 | |
Gross unrealized gains | 4 | |
Gross unrealized losses | (10) | |
Fair Value | 28,136 | |
Cash [Member] | Long-term restricted cash [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,500 | |
Fair Value | $ 4,500 |
Cash And Cash Equivalents And37
Cash And Cash Equivalents And Investments (Summary Of Contractual Maturities Of Cash Equivalents And Available-For-Sale Investments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Cash And Cash Equivalents And Investments [Abstract] | |
Due in one year or less | $ 60,236 |
Balance Sheet Components (Narra
Balance Sheet Components (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance Sheet Components [Line Items] | |||
Receivable from existing landlord | $ 10,000 | ||
Prepaid expenses and other current assets | 12,071 | $ 1,671 | |
Other long-term assets | 7,518 | 29 | |
Depreciation expense | 3,677 | $ 4,221 | $ 5,648 |
Lease Amendment Agreement [Member] | |||
Balance Sheet Components [Line Items] | |||
Lease incentive receivable, noncurrent | 15,000 | ||
Prepaid expenses and other current assets | 10,000 | ||
Other long-term assets | $ 5,000 |
Balance Sheet Components (Compo
Balance Sheet Components (Components Of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheet Components [Abstract] | ||
Purchased materials | $ 4,041 | $ 3,150 |
Work in process | 3,576 | 6,115 |
Finished goods | 3,338 | 2,070 |
Inventory | $ 10,955 | $ 11,335 |
Balance Sheet Components (Com40
Balance Sheet Components (Components Of Prepaid Expenses And Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheet Components [Abstract] | ||
Receivable from existing landlord | $ 10,000 | |
Prepaid expenses | 1,330 | $ 1,564 |
Other current assets | 741 | 107 |
Prepaid expenses and other current assets | $ 12,071 | $ 1,671 |
Balance Sheet Components (Com41
Balance Sheet Components (Components Of Property and Equipment, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 42,413 | $ 37,058 |
Less: Accumulated depreciation | (33,865) | (30,457) |
Property and equipment, net | 8,548 | 6,601 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,160 | 1,160 |
Laboratory Equipment And Machinery [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 20,358 | 17,169 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 8,348 | 8,348 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 6,781 | 4,885 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 4,798 | 4,485 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 968 | 958 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 53 |
Balance Sheet Components (Sched
Balance Sheet Components (Schedule Of Accrued Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheet Components [Abstract] | ||
Salaries and benefits | $ 8,129 | $ 6,325 |
Accrued license and development services | 5,459 | 3,741 |
Inventory accrual, professional services, accrued interest and other | 1,963 | 1,375 |
Accrued expenses | $ 15,551 | $ 11,441 |
Notes Payable (Narrative) (Deta
Notes Payable (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 05, 2013 | |
Debt Instrument [Line Items] | |||||
Number of shares of common stock called by issuance of warrants | 5,500,000 | 5,500,000 | |||
Aggregate exercise price of common stock called by issuance of warrants | $ 2.63 | $ 2.63 | |||
Cash and cash equivalent minimum amount quarterly required | $ 2,000,000 | ||||
Future cash flows weighted average market yield | 13.50% | 19.50% | |||
Fair value of the financing derivative | $ 600,000 | $ 944,000 | $ 549,000 | ||
Fair value of the warrants | 6,400,000 | ||||
Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of notes | 14,100,000 | ||||
Carrying value of the notes | 12,800,000 | ||||
Original issue discount | $ 7,700,000 | ||||
Debt discount that has yet to be amortized | $ 5,400,000 | $ 6,400,000 | |||
Maturity date | Feb. 29, 2020 | ||||
Deerfield promissory notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of notes | $ 20,500,000 | ||||
Debt instrument, stated interest rate | 8.75% | ||||
Percentage of net proceeds from out side financing or equity component | 25.00% | ||||
Facility agreement exercisable limit | 15,000,000 | ||||
Percentage of principal amount repaid | 100.00% | ||||
Proceeds from issuance of debt | $ 20,500,000 | ||||
Maximum [Member] | Deerfield promissory notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Facility agreement period | 7 years |
Notes Payable (Schedule Of Debt
Notes Payable (Schedule Of Debt Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |
2,016 | $ 1,799 |
2,017 | 1,794 |
2,018 | 5,632 |
2,019 | 2,817 |
2,020 | 15,142 |
Total remaining payments | 27,184 |
Less: interest and discounts | (12,236) |
Prior to Adoption [Member] | Early Adoption of ASU 2015-03 [Member] | |
Debt Instrument [Line Items] | |
Total debt payments | $ 14,948 |
Commitments And Contingencies45
Commitments And Contingencies (Narrative) (Details) | Jul. 23, 2015USD ($)item | Jul. 22, 2015USD ($) | Feb. 29, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2009USD ($) |
Commitments and Contingencies [Line Items] | ||||||||
Future minimum rent payments | $ 389,000 | |||||||
Other liabilities, non-current | 1,386,000 | $ 2,153,000 | ||||||
Gain on lease amendments | 23,043,000 | |||||||
Prepaid expenses and other current assets | 12,071,000 | 1,671,000 | ||||||
Other long-term assets | 7,518,000 | 29,000 | ||||||
Long-term restricted cash | 4,500,000 | |||||||
Rent expense | 1,100,000 | $ 2,200,000 | $ 2,300,000 | |||||
Other commitments estimated amount | 14,400,000 | |||||||
Additional liability associated with indemnification obligations | 0 | |||||||
Menlo Park [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Tenant improvement allowance | $ 1,800,000 | |||||||
Building and leasehold improvement assets | 3,000,000 | |||||||
Fair value of the facility prior to commencing renovations | 1,200,000 | |||||||
Landlord incentives within property and equipment, net | $ 1,800,000 | |||||||
Future minimum rent payments | 0 | |||||||
Other liabilities, non-current | 1,400,000 | |||||||
Lease Amendment Agreement [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Number of eligible payments from existing landlord | item | 4 | |||||||
Eligible payments from existing landlord | $ 5,000,000 | |||||||
Aggregate Landlord payments receivable | 20,000,000 | |||||||
Proceeds from lease incentive receivable | $ 5,000,000 | |||||||
Prepaid expenses and other current assets | 10,000,000 | |||||||
Other long-term assets | 5,000,000 | |||||||
Lease incentive receivable, noncurrent | $ 15,000,000 | |||||||
Lease Amendment Agreement [Member] | Subsequent Event [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Proceeds from lease incentive receivable | $ 5,000,000 | |||||||
O’Brien Lease Agreement [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Lease term | 132 months | |||||||
Rent expense first twelve months | $ 540,000 | |||||||
Rent expense last twelve months | 711,000 | |||||||
Expected prepaid rent | 2,160,000 | |||||||
Expected prepaid operating costs | 180,000 | |||||||
Expected security deposit | 4,500,000 | |||||||
Expected improvement allowance | 12,600,000 | |||||||
Expected rent payments | 80,000,000 | |||||||
Expected operating costs | $ 24,000,000 |
Commitments And Contingencies46
Commitments And Contingencies (Schedule Of Minimum Future Lease Payments Remaining) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments And Contingencies [Abstract] | |
2,016 | $ 131 |
2,017 | 146 |
2,018 | 112 |
Total minimum lease payments | $ 389 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | ||||
Increase in valuation allowance | $ 285,600 | $ 273,600 | ||
Benefit of federal net operating loss deferred tax assets | 4,900 | |||
Benefit of state net operating loss deferred tax assets | 600 | |||
Total unrecognized tax benefit | $ 18,735 | 16,952 | $ 11,634 | $ 9,992 |
Period of increase or decrease in total amount of unrecognized income tax benefits | 12 months | |||
Accrued interest or penalties | $ 0 | $ 0 | ||
Domestic Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 612,900 | |||
Net operating loss carryforward, expiration | 2,024 | |||
Research and development credit carryforward | $ 23,900 | |||
Research and developmen tax credit carryforward, expiration | 2,024 | |||
State and Local Jurisdiction [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 523,400 | |||
Net operating loss carryforward, expiration | 2,015 | |||
Research and development credit carryforward | $ 25,600 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Federal Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
State tax rate, net of federal benefit | (3.50%) | 3.80% | 2.10% |
Stock-based compensation | (4.00%) | (1.30%) | (1.70%) |
R&D credit | 11.00% | 4.00% | 4.30% |
Other | (0.60%) | 0.00% | (0.30%) |
Change in valuation allowance | (37.90%) | (41.50%) | (39.40%) |
Effective income tax rate | 0.00% | 0.00% | 0.00% |
Income Taxes (Reconciliation 49
Income Taxes (Reconciliation Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 235,659 | $ 225,115 |
Research and development credits | 28,346 | 24,881 |
Depreciation | 1,403 | 3,241 |
Accruals and reserves | 20,385 | 21,737 |
Total deferred tax assets | 285,793 | 274,974 |
Less: Valuation allowance | (285,556) | (273,567) |
Deferred tax liabilities: | ||
Deferred rent | $ (237) | $ (1,407) |
Net deferred tax assets |
Income Taxes (Reconciliation 50
Income Taxes (Reconciliation Of Unrecognized Tax Benefit Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Unrecognized tax benefit, Beginning balance | $ 16,952 | $ 11,634 | $ 9,992 |
Increase in balance related to tax positions taken in prior year | 2,959 | ||
Decrease in balance related to tax positions taken in prior year | (44) | ||
Increase in balance related to tax positions taken during current year | 1,827 | 2,359 | 1,642 |
Unrecognized tax benefit, Ending balance | $ 18,735 | $ 16,952 | $ 11,634 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2016shares | Mar. 07, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)item$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Feb. 03, 2016USD ($) | Feb. 03, 2015USD ($) | Nov. 08, 2013USD ($) | Feb. 28, 2013$ / sharesshares | Feb. 05, 2013$ / sharesshares | Oct. 05, 2012USD ($) | Oct. 31, 2010$ / sharesshares | |
Stockholders' Equity [Line Items] | ||||||||||||
Common Stock, shares authorized | shares | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||||||
Common Stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
Preferred Stock, shares authorized | shares | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||
Preferred Stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
Preferred Stock, shares issued | shares | 0 | 0 | ||||||||||
Preferred Stock, shares outstanding | shares | 0 | 0 | ||||||||||
Common stock, dividends declared | $ / shares | $ 0 | |||||||||||
Voting right of common stock share holders | The holder of each share of common stock is entitled to one vote. | |||||||||||
Voting right of common stock share holdes, number of votes | item | 1 | |||||||||||
Proceeds from issuance of common stock | $ | $ 7,363,000 | $ 3,968,000 | $ 3,079,000 | |||||||||
Number of shares of common stock called by issuance of warrants | shares | 5,500,000 | 5,500,000 | ||||||||||
Aggregate exercise price of common stock called by issuance of warrants | $ / shares | $ 2.63 | $ 2.63 | ||||||||||
Number of equity compensation plans | item | 3 | |||||||||||
Aggregate intrinsic value outstanding | $ | $ 145,400,000 | |||||||||||
Aggregate intrinsic value exercisable options | $ | $ 87,800,000 | |||||||||||
Stock price | $ / shares | $ 13.13 | |||||||||||
Weighted average remaining contractual life for exercisable | 5 years 11 months 12 days | |||||||||||
Total intrinsic value of options exercised | $ | $ 3,500,000 | 2,000,000 | 500,000 | |||||||||
Fair value of options vested | $ | 7,300,000 | 6,000,000 | 6,500,000 | |||||||||
Stock-based compensation cost capitalized in inventory | $ | 315,000 | 225,000 | ||||||||||
Stock-based compensation | $ | $ 13,840,000 | $ 9,943,000 | $ 9,905,000 | |||||||||
2010 Plan [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Stock option grant, term | 10 years | |||||||||||
Stock option grant, vest | 4 years | |||||||||||
Stock option grant, vest rate upon first anniversary | 25.00% | |||||||||||
Stock option grant, vest rate per month thereafter | 2.08% | |||||||||||
2010 Director Plan [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Stock option grant, term | 10 years | |||||||||||
Stock option grant, vest rate upon first anniversary | 33.00% | |||||||||||
Stock option grant, vest rate per month thereafter | 2.78% | |||||||||||
2010 Director Plan [Member] | Minimum [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Stock option grant, vest | 1 year | |||||||||||
2010 Director Plan [Member] | Maximum [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Stock option grant, vest | 3 years | |||||||||||
2010 Plan and 2010 Director Plan [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Common stock reserved for issuance | shares | 5,500,000 | |||||||||||
ESPP [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Common stock reserved for issuance | shares | 397,633 | |||||||||||
Percentage of outstanding common stock used to determine annual plan increase | 2.00% | |||||||||||
Number of purchase periods | item | 4 | |||||||||||
Purchase period of ESPP | 6 months | |||||||||||
Percentage of fair market value at which stock can be purchased | 85.00% | |||||||||||
Weighted average fair value at grant date | $ / shares | $ 2.20 | $ 2.98 | $ 1.76 | |||||||||
Stock-based compensation | $ | $ 3,600,000 | $ 2,100,000 | $ 2,800,000 | |||||||||
Common stock purchased under plan | shares | 1,100,000 | 1,300,000 | 1,500,000 | |||||||||
Cash received from option exercises | $ | $ 4,400,000 | $ 2,300,000 | $ 2,600,000 | |||||||||
At the Market Offering [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Common stock offering price shares | $ | $ 30,000,000 | $ 30,000,000 | $ 30,000,000 | |||||||||
Commissions | 3.00% | |||||||||||
Shares issued | shares | 4,100,000 | |||||||||||
Average common stock price per share | $ / shares | $ 7.36 | |||||||||||
Stock Options [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Weighted average remaining contractual life | 3 years | |||||||||||
Weighted average fair value at grant date | $ / shares | $ 4.75 | $ 3.81 | $ 1.80 | |||||||||
Stock-based compensation | $ | $ 10,200,000 | $ 7,800,000 | $ 7,000,000 | |||||||||
Unrecognized compensation costs | $ | 20,700,000 | |||||||||||
Cash received from option exercises | $ | $ 3,000,000 | $ 1,600,000 | $ 500,000 | |||||||||
Subsequent Event [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Number of shares of common stock called by issuance of warrants | shares | 3,818,000 | |||||||||||
Aggregate exercise price of common stock called by issuance of warrants | $ / shares | $ 2.63 | |||||||||||
Number of shares of common stock called by issuance of warrants, outstanding | shares | 1,682,000 | |||||||||||
Subsequent Event [Member] | 2010 Plan [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Additional common stock reserved for issuance | shares | 4,000,000 | |||||||||||
Subsequent Event [Member] | 2010 Director Plan [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Common stock reserved for issuance | shares | 800,000 | |||||||||||
Subsequent Event [Member] | ESPP [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Additional common stock reserved for issuance | shares | 1,600,000 | |||||||||||
Subsequent Event [Member] | At the Market Offering [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Common stock offering price shares | $ | $ 30,000,000 | |||||||||||
Shares issued | shares | 2,700,000 | |||||||||||
Average common stock price per share | $ / shares | $ 8.79 | |||||||||||
Proceeds from issuance of common stock | $ | $ 23,400,000 | |||||||||||
Notes [Member] | ||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||
Holders may elect to receive net proceeds from financing activities, percentage | 25.00% |
Stockholders' Equity (Summary O
Stockholders' Equity (Summary Of Stock Option Activity) (Details) - Stock Options [Member] - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Additional shares reserved, Shares available for grant | 4,799 | |
$0.70 – 16.00 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Balances, December 31, 2014, Shares available for grant | 4,874 | |
Balances, December 31, 2015, Shares available for grant | 5,814 | 4,874 |
Balances, December 31, 2014, Number of shares | 16,491 | |
Balances, December 31, 2015, Number of shares | 19,468 | 16,491 |
Exercise price, lower range | $ 0.70 | $ 0.70 |
Exercise price, upper range | 16 | 16 |
Balances, December 31, 2014, Weighted average exercise price per share | 5.10 | |
Balances, December 31, 2015, Weighted average exercise price per share | $ 5.69 | $ 5.10 |
$4.55 – 10.07 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options granted, Shares available for grant | (4,500) | |
Options granted, Number of shares | 4,500 | |
Exercise price, lower range | $ 4.55 | |
Exercise price, upper range | 10.07 | |
Options granted, Weighted average exercise price per share | $ 7.51 | |
$0.70 – 10.84 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options exercised, Number of shares | (882) | |
Exercise price, lower range | $ 0.70 | |
Exercise price, upper range | 10.84 | |
Options exercised, Weighted average exercise price per share | $ 3.27 | |
$1.16 – 15.98 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options canceled, Shares available for grant | 641 | |
Options canceled, Number of shares | (641) | |
Exercise price, lower range | $ 1.16 | |
Exercise price, upper range | 15.98 | |
Options canceled, Weighted average exercise price per share | $ 6.60 |
Stockholders' Equity (Reconcili
Stockholders' Equity (Reconciliation Of Outstanding And Exercisable Stock Options) (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Number outstanding | shares | 19,467,724 |
Weighted average remaining contractual life | 7 years 4 days |
Weighted average exercise price | $ 5.69 |
Number vested | shares | 11,389,743 |
Weighted average exercise price | $ 5.47 |
$0.00 - 1.60 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise price, lower range | 0 |
Exercise price, upper range | $ 1.60 |
Number outstanding | shares | 827,488 |
Weighted average remaining contractual life | 6 years 9 months |
Weighted average exercise price | $ 1.17 |
Number vested | shares | 502,194 |
Weighted average exercise price | $ 1.17 |
$1.60 - 3.20 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise price, lower range | 1.60 |
Exercise price, upper range | $ 3.20 |
Number outstanding | shares | 3,802,953 |
Weighted average remaining contractual life | 6 years 15 days |
Weighted average exercise price | $ 2.42 |
Number vested | shares | 2,978,692 |
Weighted average exercise price | $ 2.47 |
$3.20 - 4.80 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise price, lower range | 3.20 |
Exercise price, upper range | $ 4.80 |
Number outstanding | shares | 4,226,360 |
Weighted average remaining contractual life | 6 years 7 months 28 days |
Weighted average exercise price | $ 4.10 |
Number vested | shares | 2,947,959 |
Weighted average exercise price | $ 4.07 |
$4.80 - 6.40 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise price, lower range | 4.80 |
Exercise price, upper range | $ 6.40 |
Number outstanding | shares | 3,486,254 |
Weighted average remaining contractual life | 8 years 2 months 23 days |
Weighted average exercise price | $ 5.65 |
Number vested | shares | 1,288,411 |
Weighted average exercise price | $ 5.68 |
$6.40 - 8.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise price, lower range | 6.40 |
Exercise price, upper range | $ 8 |
Number outstanding | shares | 3,264,464 |
Weighted average remaining contractual life | 7 years 11 months 19 days |
Weighted average exercise price | $ 6.98 |
Number vested | shares | 1,229,713 |
Weighted average exercise price | $ 6.97 |
$8.00 - 9.60 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise price, lower range | 8 |
Exercise price, upper range | $ 9.60 |
Number outstanding | shares | 1,088,077 |
Weighted average remaining contractual life | 4 years 1 month 6 days |
Weighted average exercise price | $ 8.50 |
Number vested | shares | 1,088,077 |
Weighted average exercise price | $ 8.50 |
$9.60 - 11.20 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise price, lower range | 9.60 |
Exercise price, upper range | $ 11.20 |
Number outstanding | shares | 1,627,201 |
Weighted average remaining contractual life | 9 years 1 month 24 days |
Weighted average exercise price | $ 10.18 |
Number vested | shares | 246,501 |
Weighted average exercise price | $ 10.79 |
$11.20 - 12.80 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise price, lower range | 11.20 |
Exercise price, upper range | $ 12.80 |
Number outstanding | shares | 621,077 |
Weighted average remaining contractual life | 5 years 29 days |
Weighted average exercise price | $ 12.10 |
Number vested | shares | 592,344 |
Weighted average exercise price | $ 12.12 |
$12.80 - 14.40 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise price, lower range | 12.80 |
Exercise price, upper range | $ 14.40 |
Number outstanding | shares | 386,100 |
Weighted average remaining contractual life | 5 years |
Weighted average exercise price | $ 13.87 |
Number vested | shares | 378,102 |
Weighted average exercise price | $ 13.87 |
$14.40 - 16.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise price, lower range | 14.40 |
Exercise price, upper range | $ 16 |
Number outstanding | shares | 137,750 |
Weighted average remaining contractual life | 4 years 10 months 10 days |
Weighted average exercise price | $ 15.99 |
Number vested | shares | 137,750 |
Weighted average exercise price | $ 15.99 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 13,840 | $ 9,943 | $ 9,905 |
Cost of revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 1,313 | 758 | 523 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 5,196 | 3,785 | 4,052 |
Sales, general and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 7,331 | $ 5,400 | $ 5,330 |
Stockholders' Equity (Schedul55
Stockholders' Equity (Schedule Of Fair Value Of Employee Stock Options And Employee Stock Purchase Plan) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
ESPP [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility | 70.00% | 70.00% | 70.00% |
Risk-free interest rate, minimum | 0.10% | 0.10% | 0.10% |
Risk-free interest rate, maximum | 0.70% | 0.50% | 0.40% |
Dividend yield | |||
ESPP [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term | 6 months | 6 months | 6 months |
ESPP [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term | 2 years | 2 years | 2 years |
Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
Expected volatility | 70.00% | 70.00% | 66.80% |
Risk-free interest rate | 1.70% | 1.90% | 1.30% |
Dividend yield |
Net Loss Per Share (Computation
Net Loss Per Share (Computation Of Basic And Diluted Net Loss Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator | |||||||||||
Net loss | $ (1,409) | $ 1,821 | $ (11,935) | $ (20,173) | $ (18,975) | $ (9,163) | $ (19,136) | $ (18,886) | $ (31,696) | $ (66,160) | $ (79,293) |
Denominator: | |||||||||||
Weighted average shares used in computation of basic and diluted net loss per share | 75,614 | 70,475 | 62,784 | ||||||||
Basic and diluted net loss per share | $ (0.42) | $ (0.94) | $ (1.26) |
Net Loss Per Share (Anti-Diluti
Net Loss Per Share (Anti-Dilutive Shares Excluded From Computation Of Diluted Net Loss Per Share) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Stock excluded from the computation of diluted net loss per share | 19,468 | 16,491 | 14,070 |
Warrants to purchase common stock [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Stock excluded from the computation of diluted net loss per share | 5,500 | 5,500 | 5,500 |
Segment And Geographic Inform58
Segment And Geographic Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Number of reportable segments | segment | 1 | ||||||||||
Revenue | $ 36,281 | $ 13,917 | $ 24,939 | $ 17,645 | $ 16,904 | $ 20,623 | $ 11,425 | $ 11,642 | $ 92,782 | $ 60,594 | $ 28,181 |
North America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 68,800 | 34,800 | 13,600 | ||||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 9,000 | 10,100 | 9,200 | ||||||||
Asia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 15,000 | $ 15,700 | $ 5,400 |
Unaudited Selected Quarterly 59
Unaudited Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information [Line Items] | |||||||||||
Total revenue | $ 36,281 | $ 13,917 | $ 24,939 | $ 17,645 | $ 16,904 | $ 20,623 | $ 11,425 | $ 11,642 | $ 92,782 | $ 60,594 | $ 28,181 |
Total gross profit | 26,466 | 6,551 | 14,506 | 5,927 | 4,438 | 13,162 | 3,126 | 2,676 | 53,450 | 23,402 | 6,419 |
Total operating expenses | 27,528 | 3,937 | 25,864 | 25,255 | 22,332 | 21,575 | 21,428 | 20,921 | 82,584 | 86,256 | 83,962 |
Income (loss) from operations | (1,062) | 2,614 | (11,358) | (19,328) | (17,894) | (8,413) | (18,302) | (18,245) | (29,134) | (62,854) | (77,543) |
Net income (loss) | $ (1,409) | $ 1,821 | $ (11,935) | $ (20,173) | $ (18,975) | $ (9,163) | $ (19,136) | $ (18,886) | (31,696) | $ (66,160) | $ (79,293) |
Net income (loss) per share, basic | $ (0.02) | $ 0.02 | $ (0.16) | $ (0.27) | |||||||
Net income (loss) per share, diluted | $ (0.02) | ||||||||||
Basic and diluted net loss per share | $ (0.26) | $ (0.13) | $ (0.27) | $ (0.28) | |||||||
Gain on lease amendments | $ 23,043 | ||||||||||
Roche Agreement [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Basic and diluted net loss per share | $ (0.10) | ||||||||||
Deferred revenue, revenue recognized | $ 20,000 | $ 10,000 | $ 10,000 |