Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 93,550,577 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 28,982 | $ 16,765 |
Investments | 27,068 | 55,213 |
Accounts receivable | 10,441 | 11,421 |
Inventory | 15,348 | 15,634 |
Prepaid expenses and other current assets | 6,501 | 9,978 |
Total current assets | 88,340 | 109,011 |
Property and equipment, net | 42,449 | 14,560 |
Long-term restricted cash | 4,500 | 4,500 |
Other long-term assets | 219 | 9,813 |
Total assets | 135,508 | 137,884 |
Current liabilities | ||
Accounts payable | 8,221 | 8,359 |
Accrued expenses | 17,246 | 16,604 |
Deferred service revenue, current | 6,683 | 7,130 |
Other liabilities, current | 167 | 1,681 |
Notes payable, current | 3,123 | |
Total current liabilities | 35,440 | 33,774 |
Deferred service revenue, non-current | 1,484 | 1,297 |
Deferred rent, non-current | 14,148 | 19 |
Other liabilities, non-current | 1,741 | 1,664 |
Notes payable, non-current | 13,302 | 16,106 |
Financing derivative | 208 | 356 |
Total liabilities | 66,323 | 53,216 |
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 93,540 and 92,677 shares at March 31, 2017 and December 31, 2016, respectively | 94 | 93 |
Additional paid-in-capital | 880,505 | 872,114 |
Accumulated other comprehensive income (loss) | (3) | 5 |
Accumulated deficit | (811,411) | (787,544) |
Total stockholders' equity | 69,185 | 84,668 |
Total liabilities and stockholders' equity | $ 135,508 | $ 137,884 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Condensed 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 | 93,540,000 | 92,677,000 |
Common Stock, shares outstanding | 93,540,000 | 92,677,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations And Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue: | ||
Product revenue | $ 21,294 | $ 12,379 |
Service and other revenue | 3,621 | 3,152 |
Contractual revenue | 3,596 | |
Total revenue | 24,915 | 19,127 |
Cost of Revenue: | ||
Cost of product revenue | 11,362 | 6,880 |
Cost of service and other revenue | 4,616 | 2,743 |
Total cost of revenue | 15,978 | 9,623 |
Gross profit | 8,937 | 9,504 |
Operating expense: | ||
Research and development | 16,971 | 16,361 |
Sales, general and administrative | 15,265 | 11,708 |
Total operating expense | 32,236 | 28,069 |
Operating loss | (23,299) | (18,565) |
Interest expense | (838) | (779) |
Other income (expense), net | 270 | (8) |
Net loss | (23,867) | (19,352) |
Other comprehensive loss: | ||
Unrealized gain on investments | (8) | 48 |
Comprehensive loss | $ (23,875) | $ (19,304) |
Net loss per share: | ||
Basic and diluted net loss per share | $ (0.26) | $ (0.23) |
Shares used in computing basic and diluted net loss per share | 92,970 | 83,604 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (23,867) | $ (19,352) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 2,850 | 848 |
Amortization of debt discount and financing costs | 319 | 268 |
Stock-based compensation | 4,984 | 4,581 |
Other items | (145) | 74 |
Changes in assets and liabilities | ||
Accounts receivable | 980 | (2,865) |
Inventory | (149) | (2,119) |
Prepaid expenses and other assets | 3,377 | 4,709 |
Accounts payable | (89) | (39) |
Accrued expenses | (4,763) | (3,350) |
Deferred service revenue | (260) | (705) |
Deferred contractual revenue | (3,596) | |
Other liabilities | 92 | 1,279 |
Net cash used in operating activities | (16,671) | (20,267) |
Cash flows from investing activities | ||
Purchase of property and equipment | (2,668) | (457) |
Disposal of property and equipment | 111 | |
Purchase of investments | (10,419) | (43,383) |
Sales of investments | 3,662 | 4,949 |
Maturities of investments | 34,905 | 15,539 |
Net cash provided by (used in) investing activities | 25,480 | (23,241) |
Cash flows from financing activities | ||
Proceeds from issuance of common stock from equity plans | 3,408 | 3,423 |
Proceeds from issuance of common stock from at-the-market equity offering, net of issuance costs | 26,536 | |
Net cash provided by financing activities | 3,408 | 29,959 |
Net increase (decrease) in cash and cash equivalents | 12,217 | (13,549) |
Cash and cash equivalents at beginning of period | 16,765 | 33,629 |
Cash and cash equivalents at end of period | 28,982 | 20,080 |
Supplemental disclosure of non-cash investing and financing activities | ||
Changes in unpaid property and equipment | 5,356 | $ 24 |
Changes in deposits for property and equipment paid in prior period | 9,694 | |
Property and equipment paid by landlord | $ 12,600 |
Overview
Overview | 3 Months Ended |
Mar. 31, 2017 | |
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 | 3 Months Ended |
Mar. 31, 2017 | |
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 the first quarter of 2017, we recorded a charge to cost of revenue of $1.3 million relating to leased RS II instruments primarily due to a change in the estimated useful life of these 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 information 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. We classify our cash deposits and money market funds within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. We classify our investments as Level 2 instruments based on market pricing and other observable inputs. We did not classify any of our investments 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 Measured at Fair Value on a Recurring Basis The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis as of March 31, 2017 and December 31, 2016 respectively (in thousands): March 31, 2017 December 31, 2016 (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 $ 27,183 $ — $ — $ 27,183 $ 14,516 $ — $ — $ 14,516 Commercial paper — 1,799 — 1,799 — 2,249 — 2,249 US government & agency securities — — — — — — — — Total cash and cash equivalents 27,183 1,799 — 28,982 14,516 2,249 — 16,765 Investments: Commercial paper — 18,691 — 18,691 — 23,583 — 23,583 Corporate debt securities — 6,346 — 6,346 — 10,739 — 10,739 US government & agency securities — 2,004 — 2,004 — 20,579 — 20,579 Asset backed securities — 27 — 27 — 312 — 312 Total investments — 27,068 — 27,068 — 55,213 — 55,213 Long-term restricted cash: Cash 4,500 — — 4,500 4,500 — — 4,500 Total assets measured at fair value $ 31,683 $ 28,867 $ — $ 60,550 $ 19,016 $ 57,462 $ — $ 76,478 Liabilities Financing derivative $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356 Total liabilities measured at fair value $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356 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. Refer to “Note 6. Notes Payable” for a detailed description and valuation approach. Changes to the estimated fair value of the Financing Derivative are recorded in “Other income (expense), net” in the condensed consolidated statements of operations and comprehensive loss. The following table provides the changes in the fair value of the Financial Derivative during the three -month period ended March 31, 2017 (in thousands): Financing Derivative Amount Balance as of December 31, 2016 $ 356 Gain on change in estimated fair value (148) Balance as of March 31, 2017 $ 208 During the three-month period ended March 31, 2017, 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 Value on a Recurring Basis 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 10.1% and 10.6% weighted average market yield at March 31, 2017 and December 31, 2016, respectively. Refer to “Note 6. Notes Payable” for additional details regarding the Notes. The estimated fair value and carrying value of the Notes are as follows (in thousands): The estimated fair value and carrying value of the Notes are as follows (in thousands): March 31, 2017 December 31, 2016 Fair Value Carrying Value Fair Value Carrying Value Notes payable $ 20,083 $ 16,425 $ 19,788 $ 16,106 Net L oss per Share The following outstanding common stock options and warrants to purchase common stock were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect: Three Months Ended March 31, (in thousands) 2017 2016 Options outstanding 26,656 22,542 Warrants to purchase common stock — 1,682 Recent Accounting Pronouncements Recently Adopted Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company's payments for tax withholdings should be classified. Furthermore, the amendments allow the entities to make an accounting policy election to either estimate forfeitures or recognize forfeitures as they occur. If an election is made, the change to recognize forfeitures as they occur must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to opening retained earnings. The standard is effective for fiscal periods beginning after December 15, 2016, with early adoption permitted. We adopted this guidance as of January 1, 2017. Prior to adoption, the excluded windfall deductions for federal and state purposes were $6.0 million and $0.6 million, respectively. Upon adoption of ASU 2016-09, we recognized the excluded windfall deductions as a deferred tax asset with a corresponding offset to valuation allowance. The total deferred tax assets were $321.5 million as of January 1, 2017 , which was fully offset by a valuation allowance. Further, we did not elect an accounting policy change to record forfeitures as they occur and thus we continue to estimate forfeitures at each period. During 2016, we adopted ASU 2014-15 , Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires companies to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosure. Management performed such an assessment and concluded there was not substantial doubt about our ability to continue as a going concern. Since our inception, we have financed our operations primarily through product sales, issuance of common stock and convertible preferred stock, in addition to our debt facility and payments from Roche pursuant to the terms of the Roche Agreement. Cash, cash equivalents and investments at March 31, 2017 totaled $56.1 million, compared to $72.0 million at December 31, 2016. We believe that our existing cash, cash equivalents and investments will be sufficient to fund our projected operating requirements for at least 12 months; however, we plan to raise additional capital in the future. Our view regarding sufficiency of cash and liquidity is primarily based on our financial forecast for 2017 and into the first quarters of 2018, which is impacted by various assumptions regarding demand for our products. Generally, we expect demand for our products to increase for the remainder of 2017 and into 2018 as compared to 2016, and this expectation is included in forecasts of future cash and liquidity availability. These expectations are based on our current operating and financing plans, which are subject to change. Factors that may affect our capital needs include, but are not limited to, slower than expected adoption of our products resulting in lower sales of our products and services; future acquisitions; our ability to obtain new collaboration and customer arrangements; the progress of our research and development programs; initiation or expansion of research programs and collaborations; litigation costs, including the costs involved in preparing, filing, prosecuting, defending and enforcing intellectual property rights; the purchase of patent licenses; the costs associated with the ongoing transition to our new facilities in Menlo Park, California; and other factors. To the extent we raise additional funds through the sale of equity or convertible debt securities, the issuance of such securities will result in dilution to our stockholders. There can be no assurance that such funds will be available on favorable terms, or at all. If adequate funds are not available, we may be required to curtail operations significantly or to obtain funds by entering into collaboration or debt agreements on unattractive terms. Our inability to raise capital could have a material adverse effect on our business, financial condition and results of operations. 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 impact of the adoption of this standard 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 the cumulative effect transition method. ASU 2014-09 is effective for periods beginning after 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 on our consolidated financial statements. While we are continuing to assess all potential impacts of the new accounting standard, we currently believe the most significant impact relates to our accounting for the incremental cost of obtaining a contract with a customer (i.e., sales commission). Under current GAAP, the cost incurred to obtain a contract is recognized in the period the expense is incurred while under the new standard, the incremental costs to obtain the contract will be allocated to the performance obligations using the relative fair value of these obligations, recognized as an asset and amortized over the useful life of that asset. We are still in the process of evaluating the impact of this new standard on these arrangements. Due to the complexity of certain of our contracts, the actual revenue recognition treatment required under the new standard for these arrangements may be dependent on contract-specific terms and vary in some instances. |
Contractual Revenue
Contractual Revenue | 3 Months Ended |
Mar. 31, 2017 | |
Contractual Revenue [Abstract] | |
Contractual Revenue | NOTE 3. CONTRACTUAL REVENUE In September 2013, we entered into the “Roche Agreement” with Roche, pursuant to which we accounted for, and recognized 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 Roche Agreement occurs. We recognized revenue under the Roche Agreement using a straight-line convention over the service periods of the deliverables as this method approximated our performance of services pursuant to the Roche Agreement. Out of the $35.0 million upfront cash payment received, quarterly amortization of $1.7 million was recognized as contractual revenue from the fourth quarter of 2013 to the fourth quarter of 2014. Beginning in the three-month period ended March 31, 2015, we revised the estimated development period related to our contractual revenue amortization based on increasing certainty of the development time on a prospective approach and quarterly amortization of $3.6 million was recognized as contractual revenue for each of the four quarters of 2015 and for each of the first three quarters of 2016. As of September 30, 2016, the total deferred contractual revenue balance was $1.3 million, relating to the amount allocated to the deliverable of our participation on the joint steering committee. In December 2016, we received notice from Roche that Roche had elected to terminate the Roche Agreement for convenience and the termination became effective February 10, 2017 , which was 60 days after the date of the notice in accordance with the terms of the Roche Agreement. Upon such notice in December 2016, no further participation on the joint steering committee was deemed necessary; as such, we recognized the entire remaining unamortized deferred revenue of $1.3 million as contractual revenue in the fourth quarter of 2016. As a result of Roche’s termination of the Roche Agreement, it may be more difficult for us to successfully market, sell and commercialize our products into the markets that Roche would have addressed under the Roche Agreement. Further, the Roche Agreement provided for additional payments totaling $40.0 million upon the achievement of certain development milestones, all of which have previously been received and recognized as revenue. 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. We achieved the first development milestone under the Roche Agreement and recognized the related $10.0 million as contractual revenue during the year ended December 31, 2014. We achieved the second and the third (final) development milestones under the Roche Agreement and recognized the related $10.0 million and $20.0 million as contractual revenue during the three-month periods ended June 30, 2015 and December 31, 2015, respectively. There are no other milestones remaining to be achieved. |
Cash, Cash Equivalents And Inve
Cash, Cash Equivalents And Investments | 3 Months Ended |
Mar. 31, 2017 | |
Cash, Cash Equivalents And Investments [Abstract] | |
Cash, Cash Equivalents And Investments | NOTE 4. CASH, CASH EQUIVALENTS AND INVESTMENTS The following tables summarize our cash, cash equivalents and investments as of March 31, 2017 and December 31, 201 6 (in thousands): As of March 31, 2017 Gross Gross Amortized unrealized unrealized Fair Cost gains losses Value Cash and cash equivalents: Cash and money market funds $ 27,183 $ — $ — $ 27,183 Commercial paper 1,799 — — 1,799 Total cash and cash equivalents 28,982 — — 28,982 Investments: Commercial paper 18,691 2 (2) 18,691 Corporate debt securities 6,347 1 (2) 6,346 Asset backed securities 27 — — 27 US government & agency securities 2,006 — (2) 2,004 Total investments 27,071 3 (6) 27,068 Total cash, cash equivalents and investments $ 56,053 $ 3 $ (6) $ 56,050 Long-term restricted cash: Cash $ 4,500 $ — $ — $ 4,500 As of December 31, 2016 Gross Gross Amortized unrealized unrealized Fair Cost gains losses Value Cash and cash equivalents: Cash and money market funds $ 14,516 $ — $ — $ 14,516 Commercial paper 2,249 — — 2,249 Total cash and cash equivalents 16,765 — — 16,765 Investments: Commercial paper 23,581 5 (3) 23,583 Corporate debt securities 10,741 1 (3) 10,739 Asset backed securities 312 — — 312 US government & agency securities 20,574 7 (2) 20,579 Total investments 55,208 13 (8) 55,213 Total cash, cash equivalents and investments $ 71,973 $ 13 $ (8) $ 71,978 Long-term restricted cash: Cash $ 4,500 $ — $ — $ 4,500 The following table summarizes the contractual maturities of our cash equivalents and available-for-sale investments, excluding money market funds, as of March 31, 2017 : (in thousands) Fair Value Due in one year or less $ 28,867 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 | 3 Months Ended |
Mar. 31, 2017 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | NOTE 5 . BALANCE SHEET COMPONENTS Inventory As of March 31, 2017 and December 31, 2016, our inventory consisted of the following components: March 31, December 31, (in thousands) 2017 2016 Purchased materials $ 5,573 $ 4,817 Work in process 5,967 7,287 Finished goods 3,808 3,530 Inventory $ 15,348 $ 15,634 Prepaid Expenses and Other Current Assets As of March 31, 2017 and December 31, 2016, our prepaid expenses and other current assets consisted of the following components: March 31, December 31, (in thousands) 2017 2016 Receivable from Existing Landlord $ 2,437 $ 5,000 Rent deposits for O'Brien building 2,160 2,160 Prepaid expenses 1,323 2,342 Other current assets 581 476 Prepaid expenses and other current assets $ 6,501 $ 9,978 In January 2017, we entered into a Third Lease Amendment Agreement with the Existing Landlord that increased the amount of the payments receivable from the Existing Landlord by $65,000 . In February 2017 and March 2017, we received payment s of $1,045,000 and $1,583,000 , respectively, from the Existing Landlord, resulting in a balance of $2,437,000 remaining in “Receivable from Existing Landlord” as of March 31, 2017. Refer to “Note 7. Commitments and Contingencies” for additional details relating to our lease agreements. Other Long-term Assets As of March 31, 2017 and December 31, 2016, our other long-term assets consisted of the following components: March 31, December 31, (in thousands) 2017 2016 Rent deposits and tenant improvements for O'Brien building $ — $ 9,641 Other 219 172 Other long-term assets $ 219 $ 9,813 In January 2017 we moved into the O ’Brien building, and accordingly, the $9.6 million tenant improvements balance recorded in “Other Long-term Assets” at December 31, 2016 was transferred into leasehold improvements under “Property and Equipment” in the three-month period ended March 31, 2017. Property and Equipment, Net As of March 31, 2017 and December 31, 2016, our property and equipment, net, consisted of the following components: March 31, December 31, (in thousands) 2017 2016 Building $ 1,160 $ 1,160 Laboratory equipment and machinery 24,614 23,337 Leasehold improvements 38,109 8,138 Computer equipment 8,338 7,170 Software 4,600 5,189 Furniture and fixtures 2,390 823 Construction in progress 1,378 5,772 80,589 51,589 Less: Accumulated depreciation (38,140) (37,029) Property and equipment, net $ 42,449 $ 14,560 By the end of the first quarter of 2017, improvements associated with our O’Brien premises were substantially completed. As a result, during the first quarter of 2017 we capitalized $28.9 million of tenant improvements. A s the premises were completed in phases during the first quarter 2017, tenant improvements were placed into service in phases once construction was substantially complete and the related asset was ready for its intended use. Refer to “Note 7. Commitments and Contingencies” for additional details. |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2017 | |
Notes Payable [Abstract] | |
Notes Payable | NOTE 6. NOTES PAYABLE Facility Agreement 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 5.5 million shares of common stock immediately exercisable at an exercise price per share initially equal to $2.63 (the “Warrants”). During the year ended December 31, 2016, warrants to purchase 5.5 million shares of common stock were net exercised, resulting in the issuance of approximately 4.2 million shares. The cashless net exercises of the warrants did not result in any additional funds being collected by us. As of December 31, 2016, no warrants remained outstanding. 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. The Notes holders have the option to require us to repay the Notes if we complete a Major Transaction (as defined in the Facility Agreement), 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 (as defined in the Facility Agreement), 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 10.6% and 13.5% weighted average market yield at December 31, 2016 and December 31, 2015, respectively. The estimated fair value of the Financing Derivative as of December 31, 2016 and December 31, 2015 was $0.4 million and $0.6 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 March 31, 2017 and December 31, 2016, debt discount of $4.0 million and $4.3 million, respectively, remained to be amortized through February 2020 , the maturity of the Notes. As of March 31, 2017, $3.1 million out of the total $20.5 million principal payment was reclassified from “Notes payable, non-current” to “Notes payable, current”, as that portion of the principal becomes due in the first quarter of 2018. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
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. 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 a result of the lease amendment agreement described below, future rent expense associated with our existing Menlo Park facility leases was reduced to zero . The remaining long-term facility financing obligations associated with these leases, presented as “Other liabilities, non-current” on the condensed consolidated balance sheets at March 31, 2017 and December 31, 2016, were both $1.7 million. 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 leases with the Existing Landlord, 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 permit process related to an architectural approval and a change of use permit with respect to our new premises at 1305 O’Brien Drive (formerly 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 three-month period ended September 30, 2015, reflecting that our rent payments were reduced to zero for the remaining term of our existing Menlo Park facility real property leases, and the aggregate of $20.0 million in Landlord Payments became receivable and any associated financing obligation was revalued. Of the $20.0 million remaining Landlord Payments, the first $5.0 million Landlord Payment was received in September 2015, the second $5.0 million Landlord Payment was received in February 2016 and the third $5.0 million Landlord Payment was received in August 2016. In June 2016, we entered into a Second Lease Amendment Agreement with the Existing Landlord that modified the payment schedule for the final $5.0 million. At December 31, 2016, the final $5.0 million landlord payment was recorded in “Prepaid Expenses and Other Current Assets” in the condensed consolidated balance sheets. In January 2017, we entered into a Third Lease Amendment Agreement with the Existing Landlord that increased the amount of the final $5.0 million landlord payment by $65,000 . In February 2017 and March 2017, we received payments of $1,045,000 and $1,583,000 , respectively, resulting in a remaining balance of $2,437,000 in “Prepaid Expenses and Other Current Assets” in the condensed consolidated balance sheets at March 31, 2017. 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. In December 2016, we entered into an amendment to the O’Brien Lease which defined the commencement date of the lease to be October 25, 2016, notwithstanding that such substantial completion did not occur until the first quarter of 2017. Base monthly rent will 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 $2.2 million in prepaid rent which will be applied to the monthly rent installments due for the first to fourth months after the rent abatement period; and, as such, $2.2 million was recorded in “Prepaid expense and other current assets” in the condensed consolidated balance sheet as of both Mach 31, 2017 and December 31, 2016. We were 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 condensed consolidated balance sheet as of both Mach 31, 2017 and December 31, 2016. The landlord was obligated to construct certain warm shell improvements at the landlord’s cost and expense and provide us with a tenant improvement allowance in the amount of $12.6 million. Construction was completed in phases and we began moving into the O’Brien Premises during January 2017. By the end of the first quarter of 2017, improvements associated with the entire O’Brien Premises were substantially completed. As a result, during the first quarter of 2017 we capitalized $28.9 million of tenant improvements, of which $12.6 million was paid by the landlord as a tenant improvement allowance. As the $12.6 million tenant improvement allowance is accounted for as a lease incentive, $12.6 million was recorded to “Deferred rent, non-current”, which will be amortized over the lease term of approximately 11 years. In addition, as the premises were completed in phases during the first quarter 2017, tenant improvements were placed into service in phases once construction was substantially complete and the related asset was ready for its intended use. As of March 31, 2017, the future annual minimum lease payments for the O’Brien lease were as follows: Amount Years ending December 31, (in thousands) remaining of 2017 $ 4,251 2018 6,822 2019 6,930 2020 7,056 2021 7,272 Thereafter 46,710 Total minimum lease payments $ 79,041 Rent expense was $1.6 million and $53,000 for the three-month periods ended March 31, 2017 and 2016, respectively. Legal On November 2, 2016, we filed a complaint against Oxford Nanopore Technologies Ltd., Oxford Nanopore Technologies, Inc. (“ONT Inc.”) and Metrichor, Ltd. (“Metrichor” and, together with ONT Inc., “ONT”) with the U.S. International Trade Commission (“USITC”) for patent infringement. On December 5, 2016, the USITC provided notice that an investigation had been instituted based on the complaint. We are seeking exclusionary relief with respect to several ONT products, including ONT’s MinION and PromethION devices. The complaint is based on our U.S. Patent No. 9,404,146, entitled “Compositions and methods for nucleic acid sequencing” which covers novel methods for sequencing single nucleic acid molecules using linked double-stranded nucleic acid templates, providing improved sequencing accuracy. On March 1, 2017, we filed an amended complaint to add a second patent in the same patent family, U.S. Patent No. 9,542,527, which was granted on January 10, 2017, to the investigation. We are seeking, among other things, an exclusion order permanently barring entry of infringing ONT products into the United States, and a cease and desist order preventing ONT from advertising and selling infringing products in the United States. On February 2, 2017, we filed a claim in the High Court of England and Wales against Oxford Nanopore Technologies Ltd. (“ONT Ltd.”) and Metrichor for infringement of Patent EP(UK) 3 025 542, which is in the same patent family as the patents asserted in the USITC action referred to above. We are seeking remedies including injunctive relief, damages, and costs. On March 15, 2017, we filed a complaint in the U.S. District Court for the District of Delaware against ONT Inc. for patent infringement. The complaint is based on our U.S. Patent No. 9,546,400, entitled “Nanopore sequencing using n-mers” which covers novel methods for nanopore sequencing of nucleic acid molecules using the signals from multiple monomeric units. This patent was granted on January 17, 2017. We are seeking remedies including injunctive relieve, damages and costs. On April 21, 2017, ONT Ltd. and Harvard University filed a claim against us in the High Court of England and Wales for infringement of Patent EP(UK) 1 192 453, a patent owned by Harvard University and entitled “Molecular and atomic scale evaluation of biopolymers,” and for which ONT Ltd. alleges it holds an exclusive license. ONT Ltd. and Harvard University are seeking remedies including injunctive relief, damages, and costs. On April 25, 2017, ONT Ltd. announced that it also had filed a claim against us in the District Court of Mannheim, Germany, for infringement of the same patent. Litigation is inherently unpredictable, and it is too early in the proceedings to predict the outcome of these lawsuits or any impact they may have on us. As such, the estimated financial effect associated with th ese complaint s cannot be made as of this 10- Q filing time. From time to time, we may also be involved in a variety of other claims, lawsuits, investigations and proceedings relating to securities laws, product liability, patent infringement, contract disputes, employment and other matters that arise in the normal course of our business. In addition, third parties may, from time to time, assert claims against us in the form of letters and other communications. We record a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We currently do not believe that the ultimate outcome of any of the matters described above is probable or reasonably estimable, or that these matters will 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 litigation and settlement costs, diversion of management resources and other factors. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | NOTE 8. STOCKHOLDERS’ E QUITY Equity Offering During the three-month period ended March 31, 2016, we issued 3.1 million shares of our common stock at an average price of $8.80 per share through our “at-the-market” offering, resulting in net proceeds of $26.5 million. During the three-month period ended March 31, 2017 we did not issue any shares pursuant to our “at-the-market” offering program; however, in February 2017, we filed an additional 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 $60.0 million. We 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 sell shares of our common stock under the sales agreement. 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 April 2017 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 5.5 million 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 . During the three - month periods ended March 31, 2016, warrants to purchase 3,818,000 shares of common stock were net exercised, resulting in the issuance of approximately 3.0 million shares with all warrants being fully net exercised by December 31, 2016. As of March 31, 2017, no warrants remained outstanding. Equity Plans As of March 31, 2017, we had three active equity compensation plans: the 2010 Equity Incentive Plan, the 2010 Outside Director Equity Incentive Plan, and the 2010 Employee Stock Purchase Plan (“ESPP”). The following table summarizes stock option activity for all our stock option plans for the three -month period ended March 31, 2017 (in thousands, except per share amounts): Stock Options Outstanding Weighted Shares available Number average for grant of shares Exercise price exercise price Balances, December 31, 2016 6,835 22,501 $ 1.16 – 16.00 $ 6.30 Additional shares reserved 4,634 Options granted (4,708) 4,708 4.78 – 5.27 5.26 Options exercised — (114) 1.16 – 4.55 2.70 Options canceled 439 (439) 1.16 – 11.64 7.34 Balances, March 31, 2017 7,200 26,656 $ 1.16 – 16.00 $ 6.11 Shares issued under our ESPP totaled 750,005 and 668,566 shares during the three -month periods ended March 31, 2017 and 2016, respectively. As of March 31, 2017 , 1,841,595 shares of our common stock remain available for issuance under our ESPP. Stock-Based Compensation Total stock-based compensation expense consists of the following (in thousands): Three-Month Periods Ended March 31, 2017 2016 Cost of revenue $ 523 $ 499 Research and development 2,030 1,910 Sales, general and administrative 2,431 2,172 Total stock-based compensation expense $ 4,984 $ 4,581 W e estimated the fair value of employee stock options on the grant date using the Black-Scholes option pricing model. The estimated fair value of employee stock options is amortized on a straight-line basis over the requisite service period of the awards. The fair value of employee stock options was estimated using the following weighted average assumptions: Three-Month Periods Ended March 31, Stock Option 2017 2016 Expected term in years 6.1 6.1 Expected volatility 70% 70% Risk-free interest rate 2.1% 1.5% Dividend yield — — We estimate the value of employee stock purchase rights on the grant date using the Black-Scholes option pricing model. The fair value of shares to be purchased under our ESPP was estimated using the following assumptions: Three-Month Periods Ended March 31, ESPP 2017 2016 Expected term in years 0.5 - 2.0 0.5 - 2.0 Expected volatility 70% 70% Risk-free interest rate 0.8% - 1.3% 0.5% - 0.9% Dividend yield — — |
Summary Of Significant Accoun14
Summary Of Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2017 | |
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 the first quarter of 2017, we recorded a charge to cost of revenue of $1.3 million relating to leased RS II instruments primarily due to a change in the estimated useful life of these instruments. |
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 information 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. We classify our cash deposits and money market funds within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. We classify our investments as Level 2 instruments based on market pricing and other observable inputs. We did not classify any of our investments 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 Measured at Fair Value on a Recurring Basis The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis as of March 31, 2017 and December 31, 2016 respectively (in thousands): March 31, 2017 December 31, 2016 (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 $ 27,183 $ — $ — $ 27,183 $ 14,516 $ — $ — $ 14,516 Commercial paper — 1,799 — 1,799 — 2,249 — 2,249 US government & agency securities — — — — — — — — Total cash and cash equivalents 27,183 1,799 — 28,982 14,516 2,249 — 16,765 Investments: Commercial paper — 18,691 — 18,691 — 23,583 — 23,583 Corporate debt securities — 6,346 — 6,346 — 10,739 — 10,739 US government & agency securities — 2,004 — 2,004 — 20,579 — 20,579 Asset backed securities — 27 — 27 — 312 — 312 Total investments — 27,068 — 27,068 — 55,213 — 55,213 Long-term restricted cash: Cash 4,500 — — 4,500 4,500 — — 4,500 Total assets measured at fair value $ 31,683 $ 28,867 $ — $ 60,550 $ 19,016 $ 57,462 $ — $ 76,478 Liabilities Financing derivative $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356 Total liabilities measured at fair value $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356 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. Refer to “Note 6. Notes Payable” for a detailed description and valuation approach. Changes to the estimated fair value of the Financing Derivative are recorded in “Other income (expense), net” in the condensed consolidated statements of operations and comprehensive loss. The following table provides the changes in the fair value of the Financial Derivative during the three -month period ended March 31, 2017 (in thousands): Financing Derivative Amount Balance as of December 31, 2016 $ 356 Gain on change in estimated fair value (148) Balance as of March 31, 2017 $ 208 During the three-month period ended March 31, 2017, 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 Value on a Recurring Basis 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 10.1% and 10.6% weighted average market yield at March 31, 2017 and December 31, 2016, respectively. Refer to “Note 6. Notes Payable” for additional details regarding the Notes. The estimated fair value and carrying value of the Notes are as follows (in thousands): The estimated fair value and carrying value of the Notes are as follows (in thousands): March 31, 2017 December 31, 2016 Fair Value Carrying Value Fair Value Carrying Value Notes payable $ 20,083 $ 16,425 $ 19,788 $ 16,106 |
Net Loss Per Share | Net L oss per Share The following outstanding common stock options and warrants to purchase common stock were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect: Three Months Ended March 31, (in thousands) 2017 2016 Options outstanding 26,656 22,542 Warrants to purchase common stock — 1,682 |
Recent Accounting Pronouncements | 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 the first quarter of 2017, we recorded a charge to cost of revenue of $1.3 million relating to leased RS II instruments primarily due to a change in the estimated useful life of these 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 information 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. We classify our cash deposits and money market funds within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. We classify our investments as Level 2 instruments based on market pricing and other observable inputs. We did not classify any of our investments 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 Measured at Fair Value on a Recurring Basis The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis as of March 31, 2017 and December 31, 2016 respectively (in thousands): March 31, 2017 December 31, 2016 (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 $ 27,183 $ — $ — $ 27,183 $ 14,516 $ — $ — $ 14,516 Commercial paper — 1,799 — 1,799 — 2,249 — 2,249 US government & agency securities — — — — — — — — Total cash and cash equivalents 27,183 1,799 — 28,982 14,516 2,249 — 16,765 Investments: Commercial paper — 18,691 — 18,691 — 23,583 — 23,583 Corporate debt securities — 6,346 — 6,346 — 10,739 — 10,739 US government & agency securities — 2,004 — 2,004 — 20,579 — 20,579 Asset backed securities — 27 — 27 — 312 — 312 Total investments — 27,068 — 27,068 — 55,213 — 55,213 Long-term restricted cash: Cash 4,500 — — 4,500 4,500 — — 4,500 Total assets measured at fair value $ 31,683 $ 28,867 $ — $ 60,550 $ 19,016 $ 57,462 $ — $ 76,478 Liabilities Financing derivative $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356 Total liabilities measured at fair value $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356 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. Refer to “Note 6. Notes Payable” for a detailed description and valuation approach. Changes to the estimated fair value of the Financing Derivative are recorded in “Other income (expense), net” in the condensed consolidated statements of operations and comprehensive loss. The following table provides the changes in the fair value of the Financial Derivative during the three -month period ended March 31, 2017 (in thousands): Financing Derivative Amount Balance as of December 31, 2016 $ 356 Gain on change in estimated fair value (148) Balance as of March 31, 2017 $ 208 During the three-month period ended March 31, 2017, 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 Value on a Recurring Basis 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 10.1% and 10.6% weighted average market yield at March 31, 2017 and December 31, 2016, respectively. Refer to “Note 6. Notes Payable” for additional details regarding the Notes. The estimated fair value and carrying value of the Notes are as follows (in thousands): The estimated fair value and carrying value of the Notes are as follows (in thousands): March 31, 2017 December 31, 2016 Fair Value Carrying Value Fair Value Carrying Value Notes payable $ 20,083 $ 16,425 $ 19,788 $ 16,106 Net L oss per Share The following outstanding common stock options and warrants to purchase common stock were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect: Three Months Ended March 31, (in thousands) 2017 2016 Options outstanding 26,656 22,542 Warrants to purchase common stock — 1,682 Recent Accounting Pronouncements Recently Adopted Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company's payments for tax withholdings should be classified. Furthermore, the amendments allow the entities to make an accounting policy election to either estimate forfeitures or recognize forfeitures as they occur. If an election is made, the change to recognize forfeitures as they occur must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to opening retained earnings. The standard is effective for fiscal periods beginning after December 15, 2016, with early adoption permitted. We adopted this guidance as of January 1, 2017. Prior to adoption, the excluded windfall deductions for federal and state purposes were $6.0 million and $0.6 million, respectively. Upon adoption of ASU 2016-09, we recognized the excluded windfall deductions as a deferred tax asset with a corresponding offset to valuation allowance. The total deferred tax assets were $321.5 million as of January 1, 2017 , which was fully offset by a valuation allowance. Further, we did not elect an accounting policy change to record forfeitures as they occur and thus we continue to estimate forfeitures at each period. During 2016, we adopted ASU 2014-15 , Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires companies to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosure. Management performed such an assessment and concluded there was not substantial doubt about our ability to continue as a going concern. Since our inception, we have financed our operations primarily through product sales, issuance of common stock and convertible preferred stock, in addition to our debt facility and payments from Roche pursuant to the terms of the Roche Agreement. Cash, cash equivalents and investments at March 31, 2017 totaled $56.1 million, compared to $72.0 million at December 31, 2016. We believe that our existing cash, cash equivalents and investments will be sufficient to fund our projected operating requirements for at least 12 months; however, we plan to raise additional capital in the future. Our view regarding sufficiency of cash and liquidity is primarily based on our financial forecast for 2017 and into the first quarters of 2018, which is impacted by various assumptions regarding demand for our products. Generally, we expect demand for our products to increase for the remainder of 2017 and into 2018 as compared to 2016, and this expectation is included in forecasts of future cash and liquidity availability. These expectations are based on our current operating and financing plans, which are subject to change. Factors that may affect our capital needs include, but are not limited to, slower than expected adoption of our products resulting in lower sales of our products and services; future acquisitions; our ability to obtain new collaboration and customer arrangements; the progress of our research and development programs; initiation or expansion of research programs and collaborations; litigation costs, including the costs involved in preparing, filing, prosecuting, defending and enforcing intellectual property rights; the purchase of patent licenses; the costs associated with the ongoing transition to our new facilities in Menlo Park, California; and other factors. To the extent we raise additional funds through the sale of equity or convertible debt securities, the issuance of such securities will result in dilution to our stockholders. There can be no assurance that such funds will be available on favorable terms, or at all. If adequate funds are not available, we may be required to curtail operations significantly or to obtain funds by entering into collaboration or debt agreements on unattractive terms. Our inability to raise capital could have a material adverse effect on our business, financial condition and results of operations. 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 impact of the adoption of this standard 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 the cumulative effect transition method. ASU 2014-09 is effective for periods beginning after 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 on our consolidated financial statements. While we are continuing to assess all potential impacts of the new accounting standard, we currently believe the most significant impact relates to our accounting for the incremental cost of obtaining a contract with a customer (i.e., sales commission). Under current GAAP, the cost incurred to obtain a contract is recognized in the period the expense is incurred while under the new standard, the incremental costs to obtain the contract will be allocated to the performance obligations using the relative fair value of these obligations, recognized as an asset and amortized over the useful life of that asset. We are still in the process of evaluating the impact of this new standard on these arrangements. Due to the complexity of certain of our contracts, the actual revenue recognition treatment required under the new standard for these arrangements may be dependent on contract-specific terms and vary in some instances. |
Summary Of Significant Accoun15
Summary Of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Assets And Liabilities Measured At Fair Value Classified Based On Level Of Input | March 31, 2017 December 31, 2016 (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 $ 27,183 $ — $ — $ 27,183 $ 14,516 $ — $ — $ 14,516 Commercial paper — 1,799 — 1,799 — 2,249 — 2,249 US government & agency securities — — — — — — — — Total cash and cash equivalents 27,183 1,799 — 28,982 14,516 2,249 — 16,765 Investments: Commercial paper — 18,691 — 18,691 — 23,583 — 23,583 Corporate debt securities — 6,346 — 6,346 — 10,739 — 10,739 US government & agency securities — 2,004 — 2,004 — 20,579 — 20,579 Asset backed securities — 27 — 27 — 312 — 312 Total investments — 27,068 — 27,068 — 55,213 — 55,213 Long-term restricted cash: Cash 4,500 — — 4,500 4,500 — — 4,500 Total assets measured at fair value $ 31,683 $ 28,867 $ — $ 60,550 $ 19,016 $ 57,462 $ — $ 76,478 Liabilities Financing derivative $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356 Total liabilities measured at fair value $ — $ — $ 208 $ 208 $ — $ — $ 356 $ 356 |
Changes In Fair Value Of Financial Derivative | Financing Derivative Amount Balance as of December 31, 2016 $ 356 Gain on change in estimated fair value (148) Balance as of March 31, 2017 $ 208 |
Estimated Fair Value And Carrying Value of Notes | March 31, 2017 December 31, 2016 Fair Value Carrying Value Fair Value Carrying Value Notes payable $ 20,083 $ 16,425 $ 19,788 $ 16,106 |
Anti-Dilutive Shares Excluded From Computation Of Diluted Net Loss Per Share | Three Months Ended March 31, (in thousands) 2017 2016 Options outstanding 26,656 22,542 Warrants to purchase common stock — 1,682 |
Cash, Cash Equivalents And In16
Cash, Cash Equivalents And Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Cash, Cash Equivalents And Investments [Abstract] | |
Summary Of Cash, Cash Equivalents And Investments | As of March 31, 2017 Gross Gross Amortized unrealized unrealized Fair Cost gains losses Value Cash and cash equivalents: Cash and money market funds $ 27,183 $ — $ — $ 27,183 Commercial paper 1,799 — — 1,799 Total cash and cash equivalents 28,982 — — 28,982 Investments: Commercial paper 18,691 2 (2) 18,691 Corporate debt securities 6,347 1 (2) 6,346 Asset backed securities 27 — — 27 US government & agency securities 2,006 — (2) 2,004 Total investments 27,071 3 (6) 27,068 Total cash, cash equivalents and investments $ 56,053 $ 3 $ (6) $ 56,050 Long-term restricted cash: Cash $ 4,500 $ — $ — $ 4,500 As of December 31, 2016 Gross Gross Amortized unrealized unrealized Fair Cost gains losses Value Cash and cash equivalents: Cash and money market funds $ 14,516 $ — $ — $ 14,516 Commercial paper 2,249 — — 2,249 Total cash and cash equivalents 16,765 — — 16,765 Investments: Commercial paper 23,581 5 (3) 23,583 Corporate debt securities 10,741 1 (3) 10,739 Asset backed securities 312 — — 312 US government & agency securities 20,574 7 (2) 20,579 Total investments 55,208 13 (8) 55,213 Total cash, cash equivalents and investments $ 71,973 $ 13 $ (8) $ 71,978 Long-term restricted cash: Cash $ 4,500 $ — $ — $ 4,500 |
Summary Of Contractual Maturities Of Cash Equivalents And Available-For-Sale Investments | (in thousands) Fair Value Due in one year or less $ 28,867 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Balance Sheet Components [Abstract] | |
Components Of Inventory | March 31, December 31, (in thousands) 2017 2016 Purchased materials $ 5,573 $ 4,817 Work in process 5,967 7,287 Finished goods 3,808 3,530 Inventory $ 15,348 $ 15,634 |
Components Of Prepaid Expenses And Other Current Assets | March 31, December 31, (in thousands) 2017 2016 Receivable from Existing Landlord $ 2,437 $ 5,000 Rent deposits for O'Brien building 2,160 2,160 Prepaid expenses 1,323 2,342 Other current assets 581 476 Prepaid expenses and other current assets $ 6,501 $ 9,978 |
Components Of Other Long-term Assets | March 31, December 31, (in thousands) 2017 2016 Rent deposits and tenant improvements for O'Brien building $ — $ 9,641 Other 219 172 Other long-term assets $ 219 $ 9,813 |
Components Of Property And Equipment, Net | March 31, December 31, (in thousands) 2017 2016 Building $ 1,160 $ 1,160 Laboratory equipment and machinery 24,614 23,337 Leasehold improvements 38,109 8,138 Computer equipment 8,338 7,170 Software 4,600 5,189 Furniture and fixtures 2,390 823 Construction in progress 1,378 5,772 80,589 51,589 Less: Accumulated depreciation (38,140) (37,029) Property and equipment, net $ 42,449 $ 14,560 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Schedule Of Minimum Future Lease Payments Receivable | Amount Years ending December 31, (in thousands) remaining of 2017 $ 4,251 2018 6,822 2019 6,930 2020 7,056 2021 7,272 Thereafter 46,710 Total minimum lease payments $ 79,041 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity [Abstract] | |
Summary Of Stock Option Activity | Stock Options Outstanding Weighted Shares available Number average for grant of shares Exercise price exercise price Balances, December 31, 2016 6,835 22,501 $ 1.16 – 16.00 $ 6.30 Additional shares reserved 4,634 Options granted (4,708) 4,708 4.78 – 5.27 5.26 Options exercised — (114) 1.16 – 4.55 2.70 Options canceled 439 (439) 1.16 – 11.64 7.34 Balances, March 31, 2017 7,200 26,656 $ 1.16 – 16.00 $ 6.11 |
Schedule Of Stock-Based Compensation Expense | Three-Month Periods Ended March 31, 2017 2016 Cost of revenue $ 523 $ 499 Research and development 2,030 1,910 Sales, general and administrative 2,431 2,172 Total stock-based compensation expense $ 4,984 $ 4,581 |
Schedule Of Fair Value Of Employee Stock Options | Three-Month Periods Ended March 31, Stock Option 2017 2016 Expected term in years 6.1 6.1 Expected volatility 70% 70% Risk-free interest rate 2.1% 1.5% Dividend yield — — |
Schedule Of Fair Value Of Employee Stock Purchase Plan | Three-Month Periods Ended March 31, ESPP 2017 2016 Expected term in years 0.5 - 2.0 0.5 - 2.0 Expected volatility 70% 70% Risk-free interest rate 0.8% - 1.3% 0.5% - 0.9% Dividend yield — — |
Summary Of Significant Accoun20
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | Dec. 31, 2015 | |
Cost related to change in estimated fair value of leased instruments | $ 1,300,000 | |||
Fair value assets liabilities transfer between levels | $ 0 | |||
Future cash flows weighted average market yield | 10.10% | 10.60% | 13.50% | |
Deferred tax assets | $ 321,500,000 | |||
Cash, cash equivalents and investments | $ 56,100,000 | $ 72,000,000 | ||
Federal [Member] | ||||
Excluded windfall tax deductions | 6,000,000 | |||
State [Member] | ||||
Excluded windfall tax deductions | $ 600,000 |
Summary Of Significant Accoun21
Summary Of Significant Accounting Policies (Summary Of Assets And Liabilities Measured At Fair Value Classified Based On Level Of Input) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Total assets measured at fair value | $ 60,550 | $ 76,478 |
Liabilities | ||
Total liabilities measured at fair value | 208 | 356 |
Financing Derivative [Member] | ||
Liabilities | ||
Total liabilities measured at fair value | 208 | 356 |
Cash and cash equivalents [Member] | ||
Assets | ||
Total cash and cash equivalents | 28,982 | 16,765 |
Cash and cash equivalents [Member] | Cash and money market funds [Member] | ||
Assets | ||
Total cash and cash equivalents | 27,183 | 14,516 |
Cash and cash equivalents [Member] | Commercial paper [Member] | ||
Assets | ||
Total cash and cash equivalents | 1,799 | 2,249 |
Investments [Member] | ||
Assets | ||
Total investments | 27,068 | 55,213 |
Investments [Member] | Commercial paper [Member] | ||
Assets | ||
Total investments | 18,691 | 23,583 |
Investments [Member] | Corporate debt securities [Member] | ||
Assets | ||
Total investments | 6,346 | 10,739 |
Investments [Member] | U.S. government and agency securities [Member] | ||
Assets | ||
Total investments | 2,004 | 20,579 |
Investments [Member] | Asset backed securities [Member] | ||
Assets | ||
Total investments | 27 | 312 |
Long-term restricted cash [Member] | Cash [Member] | ||
Assets | ||
Long-term restricted cash | 4,500 | 4,500 |
Level 1 [Member] | ||
Assets | ||
Total assets measured at fair value | 31,683 | 19,016 |
Level 1 [Member] | Cash and cash equivalents [Member] | ||
Assets | ||
Total cash and cash equivalents | 27,183 | 14,516 |
Level 1 [Member] | Cash and cash equivalents [Member] | Cash and money market funds [Member] | ||
Assets | ||
Total cash and cash equivalents | 27,183 | 14,516 |
Level 1 [Member] | Long-term restricted cash [Member] | Cash [Member] | ||
Assets | ||
Long-term restricted cash | 4,500 | 4,500 |
Level 2 [Member] | ||
Assets | ||
Total assets measured at fair value | 28,867 | 57,462 |
Level 2 [Member] | Cash and cash equivalents [Member] | ||
Assets | ||
Total cash and cash equivalents | 1,799 | 2,249 |
Level 2 [Member] | Cash and cash equivalents [Member] | Commercial paper [Member] | ||
Assets | ||
Total cash and cash equivalents | 1,799 | 2,249 |
Level 2 [Member] | Investments [Member] | ||
Assets | ||
Total investments | 27,068 | 55,213 |
Level 2 [Member] | Investments [Member] | Commercial paper [Member] | ||
Assets | ||
Total investments | 18,691 | 23,583 |
Level 2 [Member] | Investments [Member] | Corporate debt securities [Member] | ||
Assets | ||
Total investments | 6,346 | 10,739 |
Level 2 [Member] | Investments [Member] | U.S. government and agency securities [Member] | ||
Assets | ||
Total investments | 2,004 | 20,579 |
Level 2 [Member] | Investments [Member] | Asset backed securities [Member] | ||
Assets | ||
Total investments | 27 | 312 |
Level 3 [Member] | ||
Liabilities | ||
Total liabilities measured at fair value | 208 | 356 |
Level 3 [Member] | Financing Derivative [Member] | ||
Liabilities | ||
Total liabilities measured at fair value | $ 208 | $ 356 |
Summary Of Significant Accoun22
Summary Of Significant Accounting Policies (Changes In Fair Value Of Financial Derivative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Summary Of Significant Accounting Policies [Abstract] | |
Balance as of December 31, 2016 | $ 356 |
Gain on change in fair value of Financing Derivative | (148) |
Balance as of March 31, 2017 | $ 208 |
Summary Of Significant Accoun23
Summary Of Significant Accounting Policies (Estimated Fair Value And Carrying Value Of Notes) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Estimated Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term notes payable | $ 20,083 | $ 19,788 |
Carrying Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term notes payable | $ 16,425 | $ 16,106 |
Summary Of Significant Accoun24
Summary Of Significant Accounting Policies (Anti-Dilutive Shares Excluded From Computation Of Diluted Net Loss Per Share) (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
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 | 26,656 | 22,542 |
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 | 1,682 |
Contractual Revenue (Details)
Contractual Revenue (Details) - Roche Agreement [Member] - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2016 | Sep. 30, 2013 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | 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, 2014 | Mar. 31, 2017 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||
Non-refundable upfront payment | $ 35,000,000 | ||||||||||||||||
Amortization | $ 3,600,000 | $ 3,600,000 | $ 3,600,000 | $ 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 | |||||
Deferred revenue | $ 1,300,000 | $ 0 | |||||||||||||||
Collaborative arrangement expiration | Feb. 10, 2017 | ||||||||||||||||
Period until expiration upon notice given | 60 days | ||||||||||||||||
Deferred revenue, revenue recognized | $ 1,300,000 | ||||||||||||||||
Maximum potential for additional payments to be recognized upon the achievement of certain development milestones | $ 40,000,000 | ||||||||||||||||
First Milestone [Member] | |||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||
Deferred revenue, revenue recognized | $ 10,000,000 | ||||||||||||||||
Second Milestone [Member] | |||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||
Deferred revenue, revenue recognized | $ 10,000,000 | ||||||||||||||||
Third (Final) Milestone [Member] | |||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||
Deferred revenue, revenue recognized | $ 20,000,000 |
Cash, Cash Equivalents And In26
Cash, Cash Equivalents And Investments (Summary Of Cash, Cash Equivalents And Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 56,053 | $ 71,973 |
Gross unrealized gains | 3 | 13 |
Gross unrealized losses | (6) | (8) |
Fair value | 56,050 | 71,978 |
Cash and cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 28,982 | 16,765 |
Gross unrealized gains | ||
Gross unrealized losses | ||
Fair value | 28,982 | 16,765 |
Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 27,071 | 55,208 |
Gross unrealized gains | 3 | 13 |
Gross unrealized losses | (6) | (8) |
Fair value | 27,068 | 55,213 |
Cash and money market funds [Member] | Cash and cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 27,183 | 14,516 |
Gross unrealized gains | ||
Gross unrealized losses | ||
Fair value | 27,183 | 14,516 |
Commercial paper [Member] | Cash and cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 1,799 | 2,249 |
Gross unrealized gains | ||
Gross unrealized losses | ||
Fair value | 1,799 | 2,249 |
Commercial paper [Member] | Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 18,691 | 23,581 |
Gross unrealized gains | 2 | 5 |
Gross unrealized losses | (2) | (3) |
Fair value | 18,691 | 23,583 |
Corporate debt securities [Member] | Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 6,347 | 10,741 |
Gross unrealized gains | 1 | 1 |
Gross unrealized losses | (2) | (3) |
Fair value | 6,346 | 10,739 |
Asset backed securities [Member] | Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 27 | 312 |
Gross unrealized gains | ||
Gross unrealized losses | ||
Fair value | 27 | 312 |
U.S. government and agency securities [Member] | Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 2,006 | 20,574 |
Gross unrealized gains | 7 | |
Gross unrealized losses | (2) | (2) |
Fair value | 2,004 | 20,579 |
Cash [Member] | Long-term restricted cash [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 4,500 | 4,500 |
Gross unrealized gains | ||
Gross unrealized losses | ||
Fair value | $ 4,500 | $ 4,500 |
Cash, Cash Equivalents And In27
Cash, Cash Equivalents And Investments (Summary Of Contractual Maturities Of Cash Equivalents And Available-For-Sale Investments) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Cash, Cash Equivalents And Investments [Abstract] | |
Due in one year or less | $ 28,867 |
Balance Sheet Components (Narra
Balance Sheet Components (Narrative) (Details) - USD ($) | Jul. 22, 2015 | Mar. 31, 2017 | Feb. 28, 2017 | Mar. 31, 2017 | Jan. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Components [Line Items] | ||||||
Receivable from existing landlord | $ 2,437,000 | $ 2,437,000 | $ 5,000,000 | |||
Prepaid expenses and other current assets | 6,501,000 | 6,501,000 | 9,978,000 | |||
Other long-term assets | 219,000 | 219,000 | 9,813,000 | |||
O’Brien Lease Agreement [Member] | ||||||
Balance Sheet Components [Line Items] | ||||||
Prepaid expenses and other current assets | 2,200,000 | $ 2,200,000 | 2,200,000 | |||
Other long-term assets | $ 9,600,000 | |||||
Lease term | 132 months | 11 years | ||||
Expected improvement allowance | $ 12,600,000 | |||||
Tenant improvements | 28,900,000 | $ 28,900,000 | ||||
Third Lease Amendment Agreement [Member] | ||||||
Balance Sheet Components [Line Items] | ||||||
Lease incentive receivable, noncurrent | $ 65,000 | |||||
Landlord periodic payment received | 1,583,000 | $ 1,045,000 | ||||
Prepaid expenses and other current assets | $ 2,437,000 | $ 2,437,000 | ||||
Increase in receivable from Existing Landlord | $ 65,000 |
Balance Sheet Components (Compo
Balance Sheet Components (Components Of Inventory) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Components [Abstract] | ||
Purchased materials | $ 5,573 | $ 4,817 |
Work in process | 5,967 | 7,287 |
Finished goods | 3,808 | 3,530 |
Inventory | $ 15,348 | $ 15,634 |
Balance Sheet Components (Com30
Balance Sheet Components (Components Of Prepaid Expenses And Other Current Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Components [Abstract] | ||
Receivable from existing landlord | $ 2,437 | $ 5,000 |
Rent deposits for O'Brien building | 2,160 | 2,160 |
Prepaid expenses | 1,323 | 2,342 |
Other current assets | 581 | 476 |
Prepaid expenses and other current assets | $ 6,501 | $ 9,978 |
Balance Sheet Components (Com31
Balance Sheet Components (Components Of Other Long-Term Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Components [Abstract] | ||
Rent deposits and tenant improvements for O'Brien building | $ 9,641 | |
Other | $ 219 | 172 |
Other long-term assets | $ 219 | $ 9,813 |
Balance Sheet Components (Com32
Balance Sheet Components (Components Of Property and Equipment, Net) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 80,589 | $ 51,589 |
Less: Accumulated depreciation | (38,140) | (37,029) |
Property and equipment, net | 42,449 | 14,560 |
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 | 24,614 | 23,337 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 38,109 | 8,138 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 8,338 | 7,170 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 4,600 | 5,189 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 2,390 | 823 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,378 | $ 5,772 |
Notes Payable (Narrative) (Deta
Notes Payable (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Feb. 28, 2013 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||
Principal amount of notes | $ 20,500,000 | ||||
Number of shares of common stock called by issuance of warrants | 5,500,000 | 4,200,000 | 3,818,000 | ||
Aggregate exercise price of common stock called by issuance of warrants | $ 2.63 | $ 2.63 | |||
Warrants outstanding | 0 | 5,500,000 | |||
Future cash flows weighted average market yield | 10.10% | 10.60% | 13.50% | ||
Fair value of the financing derivative | $ 208,000 | $ 356,000 | $ 600,000 | ||
Fair value of the warrants | $ 6,400,000 | ||||
Notes payable, current | 3,123,000 | ||||
Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Fair value of the notes | $ 14,100,000 | ||||
Debt discount that has yet to be amortized | $ 4,000,000 | $ 4,300,000 | |||
Maturity date | Feb. 1, 2020 | ||||
Deerfield promissory notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 8.75% | ||||
Facility agreement period | 7 years | ||||
Percentage of net proceeds from out side financing or equity component | 25.00% | ||||
Percentage of principal amount repaid | 100.00% | ||||
Cash and cash equivalent minimum amount quarterly required | $ 2,000,000 | ||||
Proceeds from issuance of debt | 20,500,000 | ||||
Carrying value of the notes | 12,800,000 | ||||
Original issue discount | $ 7,700,000 | ||||
Notes payable, current | $ 3,100,000 |
Commitments And Contingencies34
Commitments And Contingencies (Narrative) (Details) | Jul. 23, 2015USD ($)item | Jul. 22, 2015USD ($) | Mar. 31, 2017USD ($) | Feb. 28, 2017USD ($) | Aug. 31, 2016USD ($) | Feb. 29, 2016USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Jan. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Dec. 31, 2009USD ($) |
Operating Leased Assets [Line Items] | ||||||||||||||
Property, plant and equipment | $ 80,589,000 | $ 80,589,000 | $ 51,589,000 | |||||||||||
Future minimum rent payments | 79,041,000 | 79,041,000 | ||||||||||||
Other liabilities, non-current | 1,741,000 | 1,741,000 | 1,664,000 | |||||||||||
Rent expense | 1,600,000 | $ 53,000 | ||||||||||||
Prepaid expenses and other current assets | 6,501,000 | 6,501,000 | 9,978,000 | |||||||||||
Other long-term assets | 219,000 | 219,000 | 9,813,000 | |||||||||||
Long-term restricted cash | 4,500,000 | 4,500,000 | 4,500,000 | |||||||||||
Deferred rent, non-current | 14,148,000 | $ 14,148,000 | 19,000 | |||||||||||
O’Brien Lease Agreement [Member] | ||||||||||||||
Operating Leased Assets [Line Items] | ||||||||||||||
Tenant improvement allowance | $ 1,800,000 | |||||||||||||
Future minimum rent payments | $ 0 | $ 0 | $ 0 | |||||||||||
Lease term | 132 months | 11 years | ||||||||||||
Rent expense first twelve months | $ 540,000 | |||||||||||||
Rent expense last twelve months | 711,000 | |||||||||||||
Expected prepaid rent | 2,200,000 | |||||||||||||
Expected security deposit | $ 4,500,000 | |||||||||||||
Prepaid expenses and other current assets | 2,200,000 | $ 2,200,000 | 2,200,000 | |||||||||||
Other long-term assets | 9,600,000 | |||||||||||||
Expected improvement allowance | $ 12,600,000 | |||||||||||||
Long-term restricted cash | 4,500,000 | 4,500,000 | 4,500,000 | |||||||||||
Tenant improvements | 28,900,000 | 28,900,000 | ||||||||||||
Tenant allowance paid by landlord | 12,600,000 | |||||||||||||
Deferred rent, non-current | 12,600,000 | 12,600,000 | ||||||||||||
Lease Amendment Agreement [Member] | ||||||||||||||
Operating Leased Assets [Line Items] | ||||||||||||||
Number of eligible payments from existing landlord | item | 4 | |||||||||||||
Eligible payments from existing landlord | $ 5,000,000 | |||||||||||||
Gain on lease amendments | 23,000,000 | |||||||||||||
Aggregate Landlord payments receivable | 20,000,000 | $ 20,000,000 | ||||||||||||
Landlord periodic payment received | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | |||||||||||
Second Lease Amendment Agreement [Member] | ||||||||||||||
Operating Leased Assets [Line Items] | ||||||||||||||
Prepaid expenses and other current assets | 5,000,000 | |||||||||||||
Third Lease Amendment Agreement [Member] | ||||||||||||||
Operating Leased Assets [Line Items] | ||||||||||||||
Landlord periodic payment received | 1,583,000 | $ 1,045,000 | ||||||||||||
Prepaid expenses and other current assets | 2,437,000 | 2,437,000 | ||||||||||||
Increase in receivable from Existing Landlord | $ 65,000 | |||||||||||||
Leasehold Improvements [Member] | ||||||||||||||
Operating Leased Assets [Line Items] | ||||||||||||||
Property, plant and equipment | $ 38,109,000 | $ 38,109,000 | $ 8,138,000 | |||||||||||
Leasehold Improvements [Member] | O’Brien Lease Agreement [Member] | ||||||||||||||
Operating Leased Assets [Line Items] | ||||||||||||||
Property, plant and equipment | 3,000,000 | |||||||||||||
Manufacturing Facility [Member] | O’Brien Lease Agreement [Member] | ||||||||||||||
Operating Leased Assets [Line Items] | ||||||||||||||
Property, plant and equipment | 1,200,000 | |||||||||||||
Landlord Incentives [Member] | O’Brien Lease Agreement [Member] | ||||||||||||||
Operating Leased Assets [Line Items] | ||||||||||||||
Property, plant and equipment | $ 1,800,000 |
Commitments And Contingencies35
Commitments And Contingencies (Schedule Of Minimum Future Lease Payments Remaining) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Commitments And Contingencies [Abstract] | |
remaining of 2017 | $ 4,251 |
2,018 | 6,822 |
2,019 | 6,930 |
2,020 | 7,056 |
2,021 | 7,272 |
Thereafter | 46,710 |
Total minimum lease payments | $ 79,041 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2017USD ($)itemshares | Mar. 31, 2016USD ($)$ / sharesshares | Feb. 28, 2017USD ($) | Dec. 31, 2016$ / sharesshares | Feb. 28, 2013$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares issued | 3,000,000 | ||||
Proceeds from issuance of common stock from equity plans | $ | $ 3,408 | $ 3,423 | |||
Holders may elect to receive net proceeds from financing activities, percentage | 25.00% | ||||
Number of shares of common stock called by issuance of warrants | 3,818,000 | 4,200,000 | 5,500,000 | ||
Aggregate exercise price of common stock called by issuance of warrants | $ / shares | $ 2.63 | $ 2.63 | |||
Warrants outstanding | 0 | 5,500,000 | |||
Number of equity compensation plans | item | 3 | ||||
Stock Options [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares issued | 750,005 | 668,566 | |||
Common stock reserved for issuance | 1,841,595 | ||||
At the Market Offering [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares issued | 3,100,000 | ||||
Average common stock price per share | $ / shares | $ 8.80 | ||||
Proceeds from issuance of common stock from equity plans | $ | $ 26,500 | ||||
Common stock offering price shares | $ | $ 60,000 | ||||
Commissions | 3.00% |
Stockholders' Equity (Summary O
Stockholders' Equity (Summary Of Stock Option Activity) (Details) - Stock Options [Member] - $ / shares shares in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Additional shares reserved, Shares available for grant | 4,634 | |
$1.16 – 16.00 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Balances, December 31, 2016, Shares available for grant | 6,835 | |
Balances, March 31, 2017, Shares available for grant | 6,835 | |
Balances, December 31, 2016, Number of shares | 22,501 | |
Balances, March 31, 2017, Number of shares | 22,501 | |
Exercise price, lower range | $ 1.16 | |
Exercise price, upper range | 16 | |
Balances, December 31, 2015, Weighted average exercise price per share | $ 6.30 | |
Balances, December 31, 2016, Weighted average exercise price per share | $ 6.30 | |
$4.78 – 5.27 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options granted, Shares available for grant | (4,708) | |
Options granted, Number of shares | 4,708 | |
Exercise price, lower range | $ 4.78 | |
Exercise price, upper range | 5.27 | |
Options granted, Weighted average exercise price per share | $ 5.26 | |
$1.16 – 4.55 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options exercised, Shares available for grant | ||
Options exercised, Number of shares | (114) | |
Exercise price, lower range | $ 1.16 | |
Exercise price, upper range | 4.55 | |
Options exercised, Weighted average exercise price per share | $ 2.70 | |
$1.16 – 11.64 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options canceled, Shares available for grant | 439 | |
Options canceled, Number of shares | (439) | |
Exercise price, lower range | $ 1.16 | |
Exercise price, upper range | 11.64 | |
Options canceled, Weighted average exercise price per share | $ 7.34 | |
$1.16 – 16.00 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Balances, March 31, 2017, Shares available for grant | 7,200 | |
Balances, March 31, 2017, Number of shares | 26,656 | |
Exercise price, lower range | $ 1.16 | |
Exercise price, upper range | 16 | |
Balances, December 31, 2016, Weighted average exercise price per share | $ 6.11 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 4,984 | $ 4,581 |
Cost of revenue [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 523 | 499 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 2,030 | 1,910 |
Sales, general and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 2,431 | $ 2,172 |
Stockholders' Equity (Schedul39
Stockholders' Equity (Schedule Of Fair Value Of Employee Stock Options And Employee Stock Purchase Plan) (Details) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate, maximum | 1.30% | 0.90% |
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 |
Expected volatility | 70.00% | 70.00% |
Risk-free interest rate | 2.10% | 1.50% |
Dividend yield | ||
ESPP [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected volatility | 70.00% | 70.00% |
Risk-free interest rate, minimum | 0.80% | 0.50% |
Dividend yield | ||
ESPP [Member] | Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term | 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 |