DEI Document
DEI Document - $ / shares | Jul. 31, 2020 | Jun. 30, 2020 |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38536 | |
Entity Registrant Name | XERIS PHARMACEUTICALS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-3352427 | |
Entity Address, Address Line One | 180 N. LaSalle Street, | |
Entity Address, Address Line Two | Suite 1600 | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60601 | |
City Area Code | 844 | |
Local Phone Number | 445-5704 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | XERS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Central Index Key | 0001346302 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 46,277,008 | |
Entity Interactive Data Current | Yes | |
Entity Listing, Par Value Per Share | $ 0.0001 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 102,465 | $ 19,519 |
Short-term Investments | 41,530 | 56,030 |
Trade accounts receivable, net | 3,171 | 4,693 |
Other accounts receivable, net | 701 | 946 |
Inventory | 4,824 | 2,176 |
Prepaid expenses and other current assets | 3,672 | 4,119 |
Total current assets | 156,363 | 87,483 |
Investments | 1,790 | 13,231 |
Property and equipment, net | 7,387 | 7,853 |
Other assets | 270 | 420 |
Total assets | 165,810 | 108,987 |
Current Liabilities | ||
Accounts payable | 4,440 | 5,603 |
Other accrued liabilities | 13,240 | 18,119 |
Accrued trade discounts and rebates | 2,412 | 1,375 |
Accrued returns reserve | 2,477 | 1,957 |
Other current liabilities | 218 | 284 |
Total current liabilities | 22,787 | 27,338 |
Long-term debt, net of unamortized debt issuance costs | 109,476 | 58,305 |
Other liabilities | 9,166 | 8,908 |
Total liabilities | 141,429 | 94,551 |
Commitments and Contingencies (Note 8) | ||
Stockholders' Equity | ||
Preferred Stock, par value $0.0001 | 0 | 0 |
Common stock, par value $0.0001 | 5 | 3 |
Additional paid in capital | 323,740 | 260,635 |
Accumulated deficit | (299,528) | (246,245) |
Accumulated other comprehensive income | 164 | 43 |
Total stockholders' equity | 24,381 | 14,436 |
Total liabilities and stockholders' equity | $ 165,810 | $ 108,987 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) Balance Sheets Parenthetical - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position Parenthetical [Abstract] | ||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Par Value Per Share | $ 0.0001 | $ 0.0001 |
Common Shares, Par Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued | 45,151,332 | 27,214,523 |
Preferred Stock, Shares Issued | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net sales | $ 1,986 | $ 0 | $ 3,662 | $ 0 |
Grant and other income | 41 | 297 | 153 | 545 |
Cost of goods sold | 1,299 | 0 | 3,089 | 0 |
Gross profit | 728 | 297 | 726 | 545 |
Operating expenses | ||||
Research and development | 5,289 | 19,333 | 11,935 | 32,500 |
Selling, general and administrative | 17,644 | 15,024 | 39,250 | 27,542 |
Total operating expenses | 22,933 | 34,357 | 51,185 | 60,042 |
Loss from operations | (22,205) | (34,060) | (50,459) | (59,497) |
Other income (expense) | ||||
Interest and other income | 277 | 845 | 711 | 1,516 |
Interest expense | (2,242) | (1,062) | (3,741) | (2,125) |
Change in fair value of warrants | (39) | (108) | 96 | 444 |
Total other income (expense) | (2,004) | (325) | (2,934) | (165) |
Net loss before benefit from income taxes | (24,209) | (34,385) | (53,393) | (59,662) |
Benefit from income taxes | (110) | 0 | (110) | 0 |
Net loss | (24,099) | (34,385) | (53,283) | (59,662) |
Other comprehensive income (loss), net of tax | ||||
Unrealized gains on investments | 77 | 69 | 126 | 120 |
Foreign currency translation adjustments | 27 | 0 | (5) | 0 |
Comprehensive loss | $ (23,995) | $ (34,316) | $ (53,162) | $ (59,542) |
Net loss per common share - basic and diluted | $ (0.63) | $ (1.28) | $ (1.51) | $ (2.36) |
Weighted average common shares outstanding, basic and diluted | 37,973,123 | 26,889,398 | 35,381,720 | 25,234,489 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Deficit) (Unaudited) Statement - USD ($) $ in Thousands | Total | Common Stock | Additional Paid In Capital | Accumulated Other Comprehensive Gain (Loss) | Accumulated Deficit |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common Stock, Shares, Issued | 20,808,366 | ||||
Common Stock, Value, Issued | $ 2 | ||||
Additional paid in capital | $ 196,121 | ||||
Accumulated other comprehensive income | $ (52) | ||||
Accumulated deficit | $ (120,665) | ||||
Stockholders' Equity Attributable to Parent | $ 75,406 | ||||
Net loss | (25,277) | (25,277) | |||
Stock Issued During Period, Shares, New Issues | 5,996,775 | ||||
Stock Issued During Period, Value, New Issues | 55,632 | $ 1 | 55,631 | ||
Shares, Exercise and vesting of stock-based awards | 72,797 | ||||
Value, Exercise of stock-based awards | 128 | 128 | |||
Stock-based compensation | 1,147 | 1,147 | |||
Warrants, exercises in period | 2,271 | ||||
Warrants, exercises in period, value | 13 | ||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 51 | ||||
Net loss | (59,662) | ||||
Common Stock, Shares, Issued | 26,880,209 | ||||
Common Stock, Value, Issued | $ 3 | ||||
Additional paid in capital | 253,040 | ||||
Accumulated other comprehensive income | (1) | ||||
Accumulated deficit | (145,942) | ||||
Stockholders' Equity Attributable to Parent | 107,100 | ||||
Net loss | (34,385) | (34,385) | |||
Shares, Exercise and vesting of stock-based awards | 30,235 | ||||
Value, Exercise of stock-based awards | 70 | 70 | |||
Stock-based compensation | $ 1,701 | 1,701 | |||
Shares, Issuance of common stock through employee stock purchase plan | 24,229 | ||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 69 | ||||
Value, issuance of common stock through employee stock purchase plan | 236 | 236 | |||
Common Stock, Shares, Issued | 26,934,673 | ||||
Common Stock, Value, Issued | $ 3 | ||||
Additional paid in capital | 255,047 | ||||
Accumulated other comprehensive income | 68 | ||||
Accumulated deficit | (180,327) | ||||
Stockholders' Equity Attributable to Parent | $ 74,791 | ||||
Common Stock, Shares, Issued | 27,214,523 | 27,214,523 | |||
Common Stock, Value, Issued | $ 3 | $ 3 | |||
Additional paid in capital | 260,635 | 260,635 | |||
Accumulated other comprehensive income | 43 | 43 | |||
Accumulated deficit | (246,245) | (246,245) | |||
Stockholders' Equity Attributable to Parent | 14,436 | ||||
Net loss | (29,184) | ||||
Stock Issued During Period, Shares, New Issues | 10,299,769 | ||||
Stock Issued During Period, Value, New Issues | 39,845 | $ 1 | 39,844 | ||
Shares, Exercise and vesting of stock-based awards | 5,296 | ||||
Value, Exercise of stock-based awards | 10 | 10 | |||
Stock-based compensation | 2,008 | 2,008 | |||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 17 | 17 | |||
Stock Issued During Period, Shares, Vesting Of Restricted Stock Units | 21,449 | ||||
Payments Related To Tax Withholding For Share Based Compensation, RSUs | (63) | (63) | |||
Net loss | $ (53,283) | ||||
Shares, Issuance of common stock through employee stock purchase plan | 170,201 | ||||
Common Stock, Shares, Issued | 37,541,037 | ||||
Common Stock, Value, Issued | $ 4 | ||||
Additional paid in capital | 302,434 | ||||
Accumulated other comprehensive income | 60 | ||||
Accumulated deficit | (275,429) | ||||
Stockholders' Equity Attributable to Parent | $ 27,069 | ||||
Net loss | $ (24,099) | (24,099) | |||
Stock Issued During Period, Shares, New Issues | 7,400,000 | ||||
Stock Issued During Period, Value, New Issues | $ 18,779 | $ 1 | 18,778 | ||
Shares, Exercise and vesting of stock-based awards | 40,094 | ||||
Value, Exercise of stock-based awards | 72 | 72 | |||
Stock-based compensation | $ 2,071 | 2,071 | |||
Shares, Issuance of common stock through employee stock purchase plan | 170,201 | ||||
Value, Issuance of common stock through employee stock purchase plan | $ 385 | 385 | |||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 104 | 104 | |||
Common Stock, Shares, Issued | 45,151,332 | 45,151,332 | |||
Common Stock, Value, Issued | $ 5 | $ 5 | |||
Additional paid in capital | 323,740 | $ 323,740 | |||
Accumulated other comprehensive income | 164 | $ 164 | |||
Accumulated deficit | (299,528) | $ (299,528) | |||
Stockholders' Equity Attributable to Parent | $ 24,381 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (53,283,000) | $ (59,662,000) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 638,000 | 359,000 |
Amortization of investments | (97,000) | (451,000) |
Amortization of debt issuance costs | 362,000 | 513,000 |
Stock-based compensation | 4,079,000 | 2,848,000 |
Loss on extinguishment of debt | 443,000 | 0 |
Change in fair value of warrants | (96,000) | (444,000) |
Changes in operating assets and liabilities | ||
Trade accounts receivable | 1,522,000 | 0 |
Other accounts receivable | 256,000 | 2,043,000 |
Prepaid expenses and other current assets | 2,130,000 | 1,584,000 |
Inventory | (2,648,000) | 0 |
Accounts payable | (1,179,000) | 974,000 |
Other accrued liabilities | (7,292,000) | 7,571,000 |
Accrued trade discounts and rebates | 1,037,000 | 0 |
Accrued returns reserve | 520,000 | 0 |
Other | 904,000 | 474,000 |
Net cash used in operating activities | (52,704,000) | (44,191,000) |
Cash flows from investing activities | ||
Capital expenditures | (172,000) | (494,000) |
Purchases of investments | (13,714,000) | (46,260,000) |
Sales and maturities of investments | 39,906,000 | 55,908,000 |
Net cash provided by (used in) investing activities | 26,020,000 | 9,154,000 |
Cash flows from financing activities | ||
Proceeds from equity offerings | 62,872,000 | 59,970,000 |
Payments of equity offering costs | (4,017,000) | (4,338,000) |
Proceeds from issuance of debt | 80,090,000 | 0 |
Payments of debt | (25,090,000) | 0 |
Payments of debt issuance costs | (4,565,000) | 0 |
Proceeds from employee stock purchase plan | 385,000 | 236,000 |
Proceeds from exercise of stock awards | 63,000 | 122,000 |
Repurchase of common stock withheld for taxes | (63,000) | 0 |
Net cash provided by financing activities | 109,675,000 | 55,990,000 |
Effect of Exchange Rate on Cash and Cash Equivalents | (45,000) | 0 |
Increase in cash and cash equivalents | 82,946,000 | 20,953,000 |
Cash and cash equivalents, beginning of period | 19,519,000 | 45,716,000 |
Cash and cash equivalents, end of period | 102,465,000 | 66,669,000 |
Supplemental schedule of cash flow information | ||
Cash paid for interest | 2,795,000 | 1,638,000 |
Supplemental schedule of non-cash investing and financing activities | ||
Noncash tenant improvement allowance | 0 | 5,508,000 |
Accrued debt issuance costs | 668,000 | 2,325,000 |
Accrued public equity offering costs | $ 197,000 | $ 0 |
Note 1. Organization and Nature
Note 1. Organization and Nature of the Business | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of the Business | Organization and Nature of the Business Nature of business Xeris Pharmaceuticals, Inc. ("Xeris" or the "Company") is a specialty pharmaceutical company that was incorporated in Delaware in 2005. Xeris is dedicated to the development of ready-to-use injectable and infusible drug formulations that address important unmet medical needs, are easier to use by patients, caregivers and health practitioners, and reduce costs for payors and the healthcare system. Since its inception, the Company has devoted substantially all of its resources to research and development initiatives, undertaking preclinical studies of its product candidates, conducting clinical trials of its most advanced product candidates, organizing and staffing the Company, raising capital and commercializing its first product, Gvoke ® , which was approved by the FDA in September 2019. Gvoke delivers ready-to-use glucagon via a commercially available pre-filled syringe or auto-injector for the treatment of severe hypoglycemia, a potentially life-threatening condition. The Company commercially launched Gvoke pre-filled syringe ("Gvoke PFS") in November 2019 and auto-injector ("Gvoke HypoPen") in July 2020. The Company has financed its operations primarily through the issuance of its common stock, convertible preferred stock and other equity instruments, and debt financing. For the six months ended June 30, 2020, the Company generated $3.7 million in revenues from product sales. The Company has incurred operating losses since inception and has an accumulated deficit of $299.5 million as of June 30, 2020. The Company expects to continue to incur net losses for at least the next 12 months. Based on the Company’s current operating plans and existing working capital at June 30, 2020, the Company believes its cash resources are sufficient to sustain operations and capital expenditure requirements for at least the next 12 months. The Company is subject to a number of risks similar to other specialty pharmaceutical companies, including, but not limited to, successful commercialization and market acceptance of its products and any future products, if and when approved, successful development of its product candidates, the development of new technological innovations by its competitors, and protection of intellectual property. The ongoing global outbreak of the novel coronavirus disease (“COVID-19”) has resulted in significant governmental measures being implemented to control the spread of the virus, and while we cannot predict their scope and severity, these developments and measures could materially and adversely affect our business, our results of operations and our financial condition. We are closely monitoring the impact of the COVID-19 pandemic on all aspects of our business and are taking steps to minimize its impact on our business. However, the extent to which COVID-19 impacts our business, results of operations or financial condition will depend on future developments, which are highly uncertain and cannot be predicted with confidence, such as the duration of the outbreak, new information that may emerge concerning the severity of COVID-19 or the effectiveness of actions taken to contain the pandemic or treat its impact, among others. Furthermore, if we or any of the third parties with whom we engage were to experience shutdowns or other business disruptions, our ability to conduct our business in the manner and on the timelines presently planned could be materially or negatively affected, which could have a material adverse impact on our business, results of operations and financial condition. Basis of presentation The condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), including those for interim financial information, and with the instructions for Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission (the "SEC"). Accordingly, such financial statements do not include all of the information and note disclosures required by GAAP for complete financial statements. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of the Company’s financial position and its results of operations and cash flows for the periods presented. The results of operations for such periods are not necessarily indicative of the results that may be expected for any future period. The accompanying financial statements should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2019 included in the Company's Annual Report on Form 10-K filed with the SEC on March 12, 2020. Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). Basis of Consolidation |
Note 2. Summary of Significant
Note 2. Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Refer to the audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 for a discussion of the Company's accounting policies. New accounting pronouncements Recently issued accounting pronouncements In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity . This standard eliminates certain accounting models to simplify the accounting for convertible instruments, expands the disclosure requirements related to the terms and features of convertible instruments, and amends the guidance for the derivatives scope exception for contracts settled in an entity’s own equity. This standard enhances the consistency of earnings-per-share ("EPS") calculations by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in diluted EPS calculations and disclosures. This standard will be effective for the Company for annual and interim periods beginning after December 15, 2023. Early adoption is permitted, but not earlier than periods beginning after December 15, 2020. The Company is currently evaluating the impact the adoption of this new standard will have on its financial statements and disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This standard provides optional expedients for application of GAAP, if certain criteria are met, to contracts and other transactions that reference LIBOR or other reference rates that are expected to be discontinued because of reference rate reform. The amendments in this update are effective through December 31, 2022. The Company does not currently expect the adoption of this new standard to have a material impact on its financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard eliminates certain exceptions in the current guidance related to the approach for intraperiod tax allocation and the methodology for calculating income taxes in an interim period and amends other aspects of the guidance to help clarify and simplify U.S. GAAP. This standard will be effective for the Company for annual periods beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022, with early adoption permitted. The Company does not currently expect the adoption of this new standard to have a material impact on its financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as further updated by ASU 2018-19, 2019-04, 2019-05, 2019-10 and 2020-03. This standard requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financings and report credit losses using an expected losses model rather than the incurred losses model that was previously used and establishes additional disclosures related to credit risks. For available-for-sale debt securities with unrealized losses, the standard now requires allowances to be recorded instead of reducing the amortized cost of the investment. This standard limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and requires the reversal of previously recognized credit losses if fair value increases. This standard will be effective for the Company for annual and interim periods beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact the adoption of this new standard will have on its financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard requires lessees to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases will be classified as either operating or finance leases under the new guidance. Operating leases will result in straight-line expense in the income statement, similar to current operating leases, and finance leases will result in more expense being recognized in the earlier years of |
Note 3. Inventory
Note 3. Inventory | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure | The components of inventories consisted of the following (in thousands): June 30, 2020 December 31, 2019 Raw materials $ 2,372 $ 1,321 Work in process 1,783 662 Finished goods 669 193 Inventory $ 4,824 $ 2,176 Inventory reserves were $1.5 million and $0 at June 30, 2020 and December 31, 2019, respectively. |
Note 4. Other accrued liabiliti
Note 4. Other accrued liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Accrued Expenses [Abstract] | |
Other accrued liabilities | Other Accrued Liabilities Other accrued liabilities consisted of the following (in thousands): June 30, 2020 December 31, 2019 Accrued employee costs $ 4,689 $ 6,818 Accrued marketing and selling costs 2,583 1,973 Accrued research and development costs 1,760 7,062 Accrued insurance costs 1,652 — Accrued debt issuance costs 568 — Accrued interest expense 285 449 Accrued other costs 1,703 1,817 Other accrued liabilities $ 13,240 $ 18,119 |
Note 5. Long-Term Debt
Note 5. Long-Term Debt | 6 Months Ended |
Jun. 30, 2020 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | Long-term Debt Convertible Senior Notes On June 30, 2020, the Company completed a public offering of $75.0 million aggregate principal amount of the Company's 5.00% Convertible Senior Notes due 2025 (the "Convertible Notes"). Net proceeds from the offering were approximately $70.5 million after deducting underwriting discounts and commissions as well as other public offering expenses. The Company used $20.0 million and $4.2 million of the net proceeds from the sale to prepay a portion of the principal amount on the Term A Loan (as defined below) and the remaining amount of borrowings outstanding under the PPP Loan (as defined below), respectively. In July 2020, the underwriters fully exercised their option to purchase additional Convertible Notes from the Company as discussed in Note 13, "Subsequent Events". The Convertible Notes are governed by the terms of a base indenture for senior debt securities, as supplemented by the first supplemental indenture thereto, each dated as of June 30, 2020, by and between the Company and U.S. Bank National Association, as trustee. The Convertible Notes bear cash interest at the rate of 5.00% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2021, to holders of record at the close of business on the preceding January 1 and July 1, respectively. The Convertible Notes will mature on July 15, 2025, unless earlier converted or redeemed or repurchased by the Company. At any time before the close of business on the second scheduled trading day immediately before the maturity date, holders of Convertible Notes may convert their Convertible Notes at their option into shares of the Company’s common stock, together, if applicable, with cash in lieu of any fractional share, at the then-applicable conversion rate. The conversion rate for the Convertible Notes will initially be 326.7974 shares of the Company’s common stock per $1,000 principal amount of Convertible Notes, which represents an initial conversion price of approximately $3.06 per share of common stock, and is subject to adjustment under the terms of the Convertible Notes. In the event of certain circumstances, the Company will increase the conversion rate, provided that the conversion rate will not exceed 367.6470 shares of the Company's common stock per $1,000 principal amounts of Convertible Notes. The Convertible Notes are senior, unsecured obligations and are equal in right of payment with the Company's existing and future senior, unsecured indebtedness, senior in right of payment to its future indebtedness, if any, that is expressly subordinated to the Convertible Notes and effectively subordinated to its existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness. The Convertible Notes are structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent the Company is not a holder thereof) preferred equity, if any, of its subsidiaries. Senior Secured Loan Facility In February 2018, the Company entered into the Loan and Security Agreement, dated as of February 28, 2018 (as amended, the “Original Loan Agreement”), with Oxford Finance LLC, as the collateral agent and a lender (“Oxford”), and Silicon Valley Bank, as a lender (“SVB”, and together with Oxford, the “Lenders”), which provided for a senior secured loan facility of up to an aggregate principal amount of $45.0 million. The first tranche of $20.0 million was drawn down in February 2018 (the "2018 Term A Loan"). The second tranche was $15.0 million and was drawn down in September 2018 (the "2018 Term B Loan"). The Company also issued warrants to the Lenders to purchase common stock, which is further discussed in Note 7, "Warrants." In September 2019, the Company entered into an Amended and Restated Loan and Security Agreement (the "Loan Agreement") with the Lenders which amended and restated the Original Loan Agreement in its entirety. The Loan Agreement provided for the Lenders to extend up to $85.0 million in term loans to the Company in three tranches. The initial tranche of $60.0 million (the “Term A Loan”) was drawn down in September 2019. Additional tranches of $15.0 million (the “Term B Loan”) and $10 million (the “Term C Loan”) will become available to the Company if certain revenue targets are achieved prior to March 31, 2021 and June 30, 2021, respectively. In conjunction with the execution of the Loan Agreement, the 2018 Term A Loan and 2018 Term B Loan were repaid and the final payment fee of $2.3 million was paid. Effective April 21, 2020, the Company entered into that certain First Amendment to the Amended and Restated Loan and Security Agreement with the Lenders (the “First Amendment”) to amend the Loan Agreement to allow the Company to incur indebtedness under the U.S. Small Business Administration (the “SBA”) Paycheck Protection Program (the “PPP”) enabled by the Coronavirus Aid, Relief and Economic Security Act of 2020 (the “CARES Act”) in the amount of $5.1 million (the “PPP Loan”). On June 30, 2020, the Company entered into that certain Second Amendment to the Amended and Restated Loan and Security Agreement with the Lenders (the "Second Amendment") to amend the Loan Agreement (as amended, supplemented or otherwise modified from time to time, including by that certain First Amendment to Amended and Restated Loan and Security Agreement dated as of April 21, 2020, collectively, the “Amended Loan Agreement”) to provide for the Lenders’ consent to and allow for the Company's underwritten public offering of the Company's 5.00% Convertible Senior Notes due 2025 and permit the Company to prepay its PPP Loan in full. The Second Amendment also provided for the extension of the interest-only payment period through December 31, 2021, after which the term loans will be payable in 30 equal monthly installments. However, if the Company achieves a certain revenue milestone prior to January 1, 2022, then the period for interest-only payments is extended through September 30, 2022, after which the term loans will be payable in 21 equal monthly installments. The Second Amendment provides for an extension of the maturity date from June 1, 2023 to June 1, 2024. After repayment, no loans may be re-borrowed. Pursuant to the Second Amendment, the Company prepaid a portion of the Term A Loan equal to the sum of (i) $20.0 million, plus all accrued and unpaid interest as of the date of the Second Amendment, (ii) the applicable final payment fee of $0.6 million, (iii) the applicable prepayment fee of $0.3 million and (iv) all outstanding Lenders’ expenses as of the date of the Second Amendment. Additionally, the Company is required to maintain a minimum balance of $5.0 million in unrestricted cash at SVB at all times and to pay an amendment fee of up to $0.1 million at the earliest to occur of the maturity date, acceleration of any term loan, or prepayment of any term loan amount. All of the loans incurred and continue to incur interest at a floating per annum rate in an amount equal to the sum of 6.25% plus the greater of (a) 2.43% and (b) the thirty-day U.S. Dollar LIBOR rate. For the period from the funding date of the Term A Loan through and including June 30, 2020, the interest rate was 8.68%. The Company incurred total debt issuance costs of $1.9 million related to the Loan Agreement, which were being amortized to interest expense over the life of the loan using the effective interest method. In conjunction with the prepayment noted above, unamortized debt issuance costs of $0.4 million associated with the amount prepaid were written off. This write-off and the $0.3 million prepayment fee were recorded as a loss on extinguishment of debt. The remaining balance of unamortized debt issuance costs related to the Loan Agreement and the additional debt issuance costs incurred in conjunction with the Second Amendment have been reflected as a direct reduction to the loan balance and will be amortized to interest expense over the remaining life of the loan using the effective interest method. Pursuant to the Amended Loan Agreement, the Company has provided a first priority security interest in substantially all of the Company’s assets, including intellectual property, subject to certain limited exceptions. The Amended Loan Agreement allows the Company to voluntarily prepay the outstanding amounts thereunder, but not less than $2.0 million of the outstanding principal at any time. The Company is subject to a prepayment fee equal to 1.50% of the principal amount being prepaid. Also, a final payment fee of 3.0% multiplied by the amount to be repaid is due upon the earliest to occur of the maturity date of the Amended Loan Agreement, the acceleration of the amounts outstanding under the Amended Loan Agreement or prepayment of such borrowings and is recorded in other liabilities on the condensed consolidated balance sheets. The Amended Loan Agreement contains customary representations and warranties, events of default (including an event of default upon a material adverse change of the Company) and affirmative and negative covenants, including, among others, covenants that limit or restrict the Company’s ability to incur additional indebtedness, grant liens, merge or consolidate, make acquisitions, pay dividends or other distributions or repurchase equity, make investments, dispose of assets and enter into certain transactions with affiliates, in each case subject to certain exceptions. Paycheck Protection Program Loan In April 2020, the Company entered into the SBA PPP Note with SVB (the “PPP Lender”) for the PPP Loan in the amount of $5.1 million, enabled by the CARES Act to retain employees, maintain payroll and make lease and utility payments in accordance with the relevant terms and conditions of the CARES Act. The Company repaid $0.9 million of the PPP Loan in May 2020 and the remaining $4.2 million on June 30, 2020. The components of debt are as follows (in thousands): June 30, 2020 December 31, 2019 Senior secured loan facility $ 40,000 $ 60,000 Convertible Notes 75,000 — Less: unamortized debt issuance costs (5,524) (1,695) Long-term debt, net of unamortized debt issuance costs $ 109,476 $ 58,305 The following table sets forth the Company’s future minimum principal payments on the senior secured loan facility and the Convertible Notes (in thousands): 2020 $ — 2021 — 2022 5,714 2023 22,857 2024 11,429 2025 75,000 $ 115,000 For the three and six months ended June 30, 2020, the Company recognized interest expense of $2.2 million and $3.7 million, respectively, of which $182,000 and $362,000, respectively, was related to the amortization of debt issuance costs and $743,000 was related to a loss on extinguishment of debt in both periods. For the three and six months ended June 30, 2019, the Company recognized interest expense of $1.1 million and $2.1 million, respectively, of which $262,000 and $513,000, respectively, was related to the amortization of debt issuance costs. |
Note 6. Stockholders' Equity
Note 6. Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure | Stockholders' Equity The Company’s authorized shares of stock of 160.0 million are divided into 150.0 million shares of common stock, par value $0.0001 per share, and 10.0 million shares of preferred stock, par value $0.0001 per share. At June 30, 2020 none of the 10.0 million shares of preferred stock were outstanding, and the Company has no present plans to issue any shares of preferred stock. The Company’s board of directors has the authority, without action by the Company’s stockholders, to designate and issue the preferred stock in one or more series and to designate the rights, preferences, limitations and privileges of each series of preferred stock, which may be greater than the rights of the Company’s common stock. The Company has not paid any cash dividends on its common stock during the periods presented. In February 2019, the Company completed an equity offering of its common stock pursuant to a registration statement on Form S-1, as amended. The Company sold an aggregate of 5,996,775 shares of common stock at a price of $10.00 per share, including 116,775 shares of common stock pursuant to the exercise of the underwriters' option to purchase additional shares. Net proceeds from the equity offering were $55.5 million after deducting underwriting discounts and commissions as well as other public offering expenses. In February 2020, the Company completed an equity offering of its common stock pursuant to a shelf registration statement on Form S-3, which was filed on August 6, 2019 and declared effective by the SEC on August 21, 2019. The Company sold an aggregate of 10,299,769 shares of common stock at a price of $4.15 per share. Net proceeds from the equity offering were approximately $39.9 million after deducting underwriting discounts and commissions as well as other public offering expenses. In June 2020, the Company completed an equity offering of its common stock pursuant to the shelf registration statement noted above. The Company sold an aggregate of 7,400,000 shares of common stock at a price of $2.72 per share. Net proceeds from the equity offering were approximately $18.8 million after deducting underwriting discounts and commissions as well as other public offering expenses. In July 2020, the underwriters fully exercised their option to purchase additional shares of common stock from the Company as discussed in Note 13, "Subsequent Events". |
Note 7. Warrants
Note 7. Warrants | 6 Months Ended |
Jun. 30, 2020 | |
Warrants [Abstract] | |
Other Liabilities Disclosure | Warrants In 2014 the Company issued 19,931 warrants (the “2014 Warrants”) to certain investors. The 2014 Warrants allow each holder to purchase one share of common stock for $5.912. Of the 2014 Warrants, 18,512 warrants have been exercised and 1,419 warrants remain outstanding as of June 30, 2020. As part of the Original Loan Agreement discussed in Note 5, "Long-term Debt," the Lenders received warrants concurrent with the borrowing. The warrants represent a right for the lender to purchase shares of the Company’s common stock at an exercise price of $11.169 per share. The Company issued 53,720 warrants (the "2018 Term A Warrants") upon the drawdown of the 2018 Term A Loan in February 2018, and the Company issued 40,292 warrants (the "2018 Term B Warrants") upon the drawdown of the 2018 Term B Loan in September 2018. There have been no exercises of 2018 Term A Warrants or 2018 Term B Warrants. Because the warrants are a freestanding instrument, indexed to the Company's stock, they do not meet the criteria for equity classification. Therefore, the warrants are classified as liabilities and subject to remeasurement at each reporting period until they are exercised, expired, or otherwise settled. The Company recognized losses of $(1,000), $(22,000) and $(16,000) upon the change in fair value of the 2014 Warrants, the 2018 Term A Warrants and the 2018 Term B Warrants, respectively, during the three months ended June 30, 2020. The Company recognized losses of $(4,000), $(59,000) and $(45,000) upon the change in fair value of the 2014 Warrants, the 2018 Term A Warrants and the 2018 Term B Warrants, respectively, during the three months ended June 30, 2019. The Company recognized gains of $3,000, $53,000 and $40,000 upon the change in fair value of the 2014 Warrants, the 2018 Term A Warrants and the 2018 Term B Warrants, respectively, during the six months ended June 30, 2020. The Company recognized gains of $68,000, $215,000 and $161,000 upon the change in fair value of the 2014 Warrants, the 2018 Term A Warrants and the 2018 Term B Warrants, respectively, during the six months ended June 30, 2019. As of June 30, 2020, the following warrants were outstanding: Outstanding Warrants Exercise Price per Warrant Expiration Date 2014 Warrants 1,419 $5.912 August 2020 2018 Term A Warrants 53,720 $11.169 February 2025 2018 Term B Warrants 40,292 $11.169 September 2025 95,431 |
Note 8. Commitments and Conting
Note 8. Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has non-cancellable operating leases for office space, which expire at various times through 2031. The non-cancellable office lease agreements provide for monthly lease payments, which increase during the term of each lease agreement. Future minimum lease payments under operating leases at June 30, 2020 are as follows (in thousands): 2020 $ 968 2021 2,208 2022 2,263 2023 1,745 2024 1,278 Thereafter 8,476 Total minimum lease payments $ 16,938 Total rent expense under these operating leases was approximately $589,000 and $556,000 for the three months ended June 30, 2020 and 2019, respectively, and approximately $1,131,000 and $1,043,000 for the six months ended June 30, 2020 and 2019, respectively As of June 30, 2020, we had unused letters of credit of $1,083,000 which were issued primarily to secure leases. Litigation From time to time, the Company may become involved in various legal actions arising in the ordinary course of business. As of June 30, 2020, management was not aware of any existing, pending or threatened legal actions that would have a material impact on the financial position or results of operations of the Company. |
Note 9. Stock Compensation Plan
Note 9. Stock Compensation Plan | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Plan | Stock Compensation Plan In 2011, the Company adopted the 2011 Stock Option Issuance Plan (the “2011 Plan”) and subsequently amended it to authorize the Board of Directors to issue up to 4,714,982 incentive stock option and non-qualified stock option awards. The 2018 Stock Option and Incentive Plan (the "2018 Plan") was adopted by the Board of Directors in April 2018 and approved by the Company's stockholders in June 2018 to award up to 1,822,000 shares of common stock. This plan became effective on the date immediately prior to the effectiveness of the Company's IPO registration statement. The 2018 Plan replaced the 2011 Plan as the Board of Directors decided not to make additional awards under the 2011 Plan following the closing of the IPO, which occurred in June 2018. The 2018 Plan allows the compensation committee to make equity-based and cash-based incentive awards to the Company's officers, employees, directors and other key persons (including consultants). The 2018 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each January 1, beginning on January 1, 2019 and each January 1 thereafter, by 4% of the outstanding number of shares of our common stock on the immediately preceding December 31, or such lesser number of shares as determined by the compensation committee. This number is subject to adjustment in the event of a stock split, stock dividend or other change affecting the Company's common stock. On January 1, 2020 and 2019, the number of shares of common stock available for issuance under the 2018 Plan was automatically increased by 1,088,580 shares and 835,728 shares, respectively. As of June 30, 2020, there were 745,160 shares of common stock available for future issuance under the 2018 Plan. The 2018 Employee Stock Purchase Plan (the "ESPP") was adopted by the Board of Directors in April 2018 and approved by the Company's stockholders in June 2018 to issue up to 193,000 shares of common stock to participating employees. Through the ESPP, eligible employees may authorize payroll deductions of up to 15% of their compensation to purchase up to the number of shares of common stock determined by dividing $25,000 by the closing market price of Xeris common stock on the offering date. The purchase price per share at each purchase date is equal to 85% of the lower of (i) the closing market price per share of Xeris common stock on the employee’s offering date or (ii) the closing market price per share of Xeris common stock on the purchase date. Each offering period has a six-month duration and purchase interval with a purchase date of the last business day of June and December each year. This plan became effective on the date immediately prior to the effectiveness of the Company's IPO registration statement. The ESPP provides that the number of shares reserved and available for issuance will automatically increase each January 1, beginning on January 1, 2019 and each January 1 thereafter through January 1, 2028, by the least of (i) 1% of the outstanding number of shares of our common stock on the immediately preceding December 31; (ii) 386,000 shares or (iii) such lesser number of shares as determined by the ESPP administrator. On January 1, 2020 and 2019, the number of shares of common stock available for issuance under the ESPP increased by 272,145 shares and 208,932 shares, respectively. The number of shares reserved under the ESPP is subject to adjustment in the event of a stock split, stock dividend or other change affecting the Company's common stock. The Company issued 170,201 shares at a price of $2.26 per share for the six months ended June 30, 2020. As of June 30, 2020, there were 430,269 shares available for issuance under the ESPP. The Equity Inducement Plan (the "Inducement Plan") was adopted by the Board of Directors in February 2019. The Inducement Plan was adopted without stockholder approval pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules. The Inducement Plan allows the Company to make stock option or restricted stock unit awards to prospective employees of the Company as an inducement to such individuals to commence employment with the Company. The Company intends to use this Inducement Plan to help it attract and retain prospective employees who are necessary to support the commercial launch of Gvoke and the expansion of the Company generally. The Company initially reserved 750,000 shares of common stock for the issuance of awards under the Inducement Plan. This number is subject to adjustment in the event of a stock split, stock dividend or other change affecting the Company's common stock. As of June 30, 2020, there were 379,084 shares of common stock available for future issuance under the Inducement Plan. Stock options are granted with an exercise price equal to the market price of the Company’s stock at the date of grant. Stock option awards typically vest over either two three four ten The fair value of each option is estimated on the date of grant using a Black-Scholes option valuation model that uses the assumptions noted in the following table. The expected term of options represents the period of time that options granted are expected to be outstanding. The risk-free interest rate for periods during the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected stock price volatility assumption is based on the historical volatilities of a peer group of publicly traded companies as well as the historical volatility of the Company's common stock since the Company began trading subsequent to its IPO in June 2018 over the period corresponding to the expected life as of the grant date. The expected dividend yield is based on the expected annual dividend as a percentage of the market value of the Company’s ordinary shares as of the grant date. The fair value of stock options granted was estimated with the following weighted average assumptions: Six Months Ended June 30, 2020 2019 Expected term (years) 6.0 6.0 Risk-free interest rate 0.45% 1.76% Expected volatility 66.75% 58.50% Expected dividends — — Stock option activity under the 2011 Plan, 2018 Plan and Inducement Plan for the six months ended June 30, 2020 was as follows: Options Weighted Average Exercise Price Weighted Average Contractual Life (Years) Outstanding - January 1, 2020 4,428,985 $ 9.40 8.19 Granted 804,168 6.20 Exercised and vested (45,390) 1.76 Forfeited (242,149) 9.45 Expired (28,789) 8.07 Outstanding - June 30, 2020 4,916,825 $ 8.95 7.92 Exercisable - June 30, 2020 2,358,295 $ 7.65 7.15 Vested and expected to vest as of June 30, 2020 4,669,206 $ 8.90 7.87 The weighted average fair value of awards granted during the six months ended June 30, 2020 was $3.67 per share. The total intrinsic value of options exercised during the six months ended June 30, 2020 was $0.1 million. As of June 30, 2020, the aggregate intrinsic value of awards vested and expected to vest was $1.3 million. At June 30, 2020, there was a total of $14.0 million of unrecognized stock-based compensation expense related to stock options that is expected to be recognized over a weighted average period of 2.43 years. On January 31, 2020, the Company granted 572,500 restricted stock unit (RSU) awards to certain key employees. A summary of outstanding RSU awards and the activity for the six months ended June 30, 2020 was as follows: Units Weighted Average Grant Date Fair Value Unvested balance - January 1, 2020 125,000 $ 13.88 Granted 572,500 6.37 Vested (31,250) 13.88 Forfeited (5,000) 6.37 Unvested balance - June 30, 2020 661,250 $ 7.43 RSUs are measured based on the fair market value of the underlying stock on the date of grant and vest over either three or four years in equal annual installments beginning on the one-year anniversary of the date of grant. Stock-based compensation expense related to RSUs is recognized on a straight-line basis over the employee’s requisite service period. As of June 30, 2020, there was $4.2 million of unrecognized stock-based compensation expense related to RSUs, which is expected to be recognized over the weighted average remaining vesting period of 2.59 years. The following table summarizes the reporting of total stock-based compensation expense resulting from stock options, RSUs and the ESPP (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Cost of goods sold $ 113 $ — $ 150 $ — Research and development 239 300 536 495 Selling, general and administrative 1,719 1,401 3,393 2,353 Total stock-based compensation expense $ 2,071 $ 1,701 $ 4,079 $ 2,848 |
Note 10. Fair Value Measurement
Note 10. Fair Value Measurement | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following categories: Level 1: Measured using unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Measured using 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 inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity). Fair value measurements are classified based on the lowest level of input that is significant to the measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values stated below takes into account the market for its financial assets and liabilities, the associated credit risk and other factors as required. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value as of June 30, 2020 and December 31, 2019 (in thousands): Total as of Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Cash and money market funds $ 102,465 $ 102,465 $ — $ — Investments: U.S. government securities 16,225 16,225 — — Corporate securities 17,529 — 17,529 — Commercial paper 9,566 — 9,566 — Total investments $ 43,320 $ 16,225 $ 27,095 $ — Liabilities Warrant liabilities $ 54 $ — $ — $ 54 Total as of Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Cash and money market funds $ 19,519 $ 19,519 $ — $ — Investments: U.S. government securities 32,175 32,175 — — Corporate securities 22,164 — 22,164 — Commercial paper 14,922 — 14,922 — Total investments $ 69,261 $ 32,175 $ 37,086 $ — Liabilities Warrant liabilities $ 150 $ — $ — $ 150 The fair value of the Company’s warrant liabilities is based on a Black-Scholes valuation which considers the expected term of the warrants as well as the risk-free interest rate and expected volatility of the Company's common stock. The Company has determined that the warrant liabilities' fair values are Level 3 items within the fair value hierarchy. The following table presents the change in the warrant liabilities (in thousands): Balance at December 31, 2019 $ 150 Change in fair value of warrants (96) Balance at June 30, 2020 $ 54 |
Note 11. Available-for-Sale Inv
Note 11. Available-for-Sale Investments | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Investments | Available-for-Sale Investments The Company classifies its investments in debt securities as available-for-sale. Debt securities are comprised of highly liquid investments with minimum “A” rated securities and, as of June 30, 2020, consist of U.S. Treasury and agency bonds and corporate entity commercial paper and securities, all with maturities of more than three months but less than two years at the date of purchase. Debt securities as of June 30, 2020 had an average remaining maturity of 0.4 years. The debt securities are reported at fair value with unrealized gains or losses recorded in accumulated other comprehensive income in the condensed consolidated balance sheets. Refer to Note 10, "Fair Value Measurements," for information related to the fair value measurements and valuation methods utilized. The following table represents the Company’s available-for-sale investments by major security type as of June 30, 2020 and December 31, 2019 (in thousands): June 30, 2020 Amortized Gross Unrealized Gains Gross Unrealized Losses Total Investments: Commercial paper $ 9,566 $ — $ — $ 9,566 Corporate securities 17,415 117 (3) 17,529 U.S. government securities 16,172 72 (19) 16,225 Total available-for-sale investments $ 43,153 $ 189 $ (22) $ 43,320 December 31, 2019 Amortized Gross Unrealized Gains Gross Unrealized Losses Total Investments: Commercial paper $ 14,922 $ — $ — $ 14,922 Corporate securities 22,146 20 (2) 22,164 U.S. government securities 32,152 23 — 32,175 Total available-for-sale investments $ 69,220 $ 43 $ (2) $ 69,261 |
Note 12. Net Loss Per Common Sh
Note 12. Net Loss Per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Earnings Per Share [Text Block] | Net Loss Per Common ShareBasic and diluted net loss per common share are determined by dividing net loss applicable to common stockholders by the weighted average common shares outstanding during the period. For all periods presented, the outstanding shares of Convertible Notes, warrants, stock option awards and RSUs have been excluded from the calculation because their effects would be anti-dilutive. Therefore, the weighted average common shares outstanding used to calculate both basic and diluted net loss per common share are the same. The following potentially dilutive securities were excluded from the computation of diluted weighted average common shares outstanding due to their anti-dilutive effect: As of June 30, 2020 2019 Shares to be issued upon conversion of Convertible Notes 24,509,805 — Vested and unvested stock options 4,916,825 4,312,703 Restricted stock units 661,250 125,000 Warrants 95,431 96,999 Total anti-dilutive securities excluded from EPS computation 30,183,311 4,534,702 |
Note 13. Subsequent Events
Note 13. Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsIn connection with its June 2020 concurrent underwritten public offerings of common stock and 5.00% Convertible Senior Notes due 2025, the underwriters of the equity offering have fully exercised their option to purchase an additional 1,110,000 shares of common stock from the Company and the underwriters of the Convertible Notes offering have fully exercised their option to purchase an additional $11.25 million aggregate principal amount of the Convertible Notes from the Company. The exercise of these options increases the size of the equity offering to an aggregate of 8,510,000 shares at a price to the public of $2.72 per share and increases the size of the Convertible Notes offering to $86.25 million aggregate principal amount of Convertible Notes. The total gross proceeds of the equity and Convertible Notes offerings was approximately $109.4 million, before deducting underwriting discounts and commissions and other offering expenses. The purchase of additional Convertible Notes closed on July 7, 2020, and the purchase of the additional shares of common stock closed on July 15, 2020. |
Note 3. Inventory (Tables)
Note 3. Inventory (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | The components of inventories consisted of the following (in thousands): June 30, 2020 December 31, 2019 Raw materials $ 2,372 $ 1,321 Work in process 1,783 662 Finished goods 669 193 Inventory $ 4,824 $ 2,176 |
Note 4. Other accrued liabili_2
Note 4. Other accrued liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accrued Expenses [Abstract] | |
Other accrued liabilities | Other accrued liabilities consisted of the following (in thousands): June 30, 2020 December 31, 2019 Accrued employee costs $ 4,689 $ 6,818 Accrued marketing and selling costs 2,583 1,973 Accrued research and development costs 1,760 7,062 Accrued insurance costs 1,652 — Accrued debt issuance costs 568 — Accrued interest expense 285 449 Accrued other costs 1,703 1,817 Other accrued liabilities $ 13,240 $ 18,119 |
Note 5. Long-Term Debt (Tables)
Note 5. Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments | The components of debt are as follows (in thousands): June 30, 2020 December 31, 2019 Senior secured loan facility $ 40,000 $ 60,000 Convertible Notes 75,000 — Less: unamortized debt issuance costs (5,524) (1,695) Long-term debt, net of unamortized debt issuance costs $ 109,476 $ 58,305 |
Schedule of Maturities of Long-term Debt | The following table sets forth the Company’s future minimum principal payments on the senior secured loan facility and the Convertible Notes (in thousands): 2020 $ — 2021 — 2022 5,714 2023 22,857 2024 11,429 2025 75,000 $ 115,000 |
Note 7. Warrants (Tables)
Note 7. Warrants (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Warrants [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights | As of June 30, 2020, the following warrants were outstanding: Outstanding Warrants Exercise Price per Warrant Expiration Date 2014 Warrants 1,419 $5.912 August 2020 2018 Term A Warrants 53,720 $11.169 February 2025 2018 Term B Warrants 40,292 $11.169 September 2025 95,431 |
Note 8. Commitment and Continge
Note 8. Commitment and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under operating leases at June 30, 2020 are as follows (in thousands): 2020 $ 968 2021 2,208 2022 2,263 2023 1,745 2024 1,278 Thereafter 8,476 Total minimum lease payments $ 16,938 |
Note 9. Stock Compensation Pl_2
Note 9. Stock Compensation Plan (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | The following table summarizes the reporting of total stock-based compensation expense resulting from stock options, RSUs and the ESPP (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Cost of goods sold $ 113 $ — $ 150 $ — Research and development 239 300 536 495 Selling, general and administrative 1,719 1,401 3,393 2,353 Total stock-based compensation expense $ 2,071 $ 1,701 $ 4,079 $ 2,848 |
Stock-based Compensation Assumptions Used in Black-Scholes Option Valuation Model | The fair value of stock options granted was estimated with the following weighted average assumptions: Six Months Ended June 30, 2020 2019 Expected term (years) 6.0 6.0 Risk-free interest rate 0.45% 1.76% Expected volatility 66.75% 58.50% Expected dividends — — |
Share-based Payment Arrangement, Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation, Activity | Stock option activity under the 2011 Plan, 2018 Plan and Inducement Plan for the six months ended June 30, 2020 was as follows: Options Weighted Average Exercise Price Weighted Average Contractual Life (Years) Outstanding - January 1, 2020 4,428,985 $ 9.40 8.19 Granted 804,168 6.20 Exercised and vested (45,390) 1.76 Forfeited (242,149) 9.45 Expired (28,789) 8.07 Outstanding - June 30, 2020 4,916,825 $ 8.95 7.92 Exercisable - June 30, 2020 2,358,295 $ 7.65 7.15 Vested and expected to vest as of June 30, 2020 4,669,206 $ 8.90 7.87 The weighted average fair value of awards granted during the six months ended June 30, 2020 was $3.67 per share. The total intrinsic value of options exercised during the six months ended June 30, 2020 was $0.1 million. As of June 30, 2020, the aggregate intrinsic value of awards vested and expected to vest was $1.3 million. At June 30, 2020, there was a total of $14.0 million of unrecognized stock-based compensation expense related to stock options that is expected to be recognized over a weighted average period of 2.43 years. On January 31, 2020, the Company granted 572,500 restricted stock unit (RSU) awards to certain key employees. A summary of outstanding RSU awards and the activity for the six months ended June 30, 2020 was as follows: Units Weighted Average Grant Date Fair Value Unvested balance - January 1, 2020 125,000 $ 13.88 Granted 572,500 6.37 Vested (31,250) 13.88 Forfeited (5,000) 6.37 Unvested balance - June 30, 2020 661,250 $ 7.43 RSUs are measured based on the fair market value of the underlying stock on the date of grant and vest over either three or four years in equal annual installments beginning on the one-year anniversary of the date of grant. Stock-based compensation expense related to RSUs is recognized on a straight-line basis over the employee’s requisite service period. As of June 30, 2020, there was $4.2 million of unrecognized stock-based compensation expense related to RSUs, which is expected to be recognized over the weighted average remaining vesting period of 2.59 years. |
Note 10. Fair Value Measureme_2
Note 10. Fair Value Measurement Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The Company has determined that the warrant liabilities' fair values are Level 3 items within the fair value hierarchy. The following table presents the change in the warrant liabilities (in thousands): Balance at December 31, 2019 $ 150 Change in fair value of warrants (96) Balance at June 30, 2020 $ 54 |
Fair Value Measurements, Recurring and Nonrecurring | The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value as of June 30, 2020 and December 31, 2019 (in thousands): Total as of Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Cash and money market funds $ 102,465 $ 102,465 $ — $ — Investments: U.S. government securities 16,225 16,225 — — Corporate securities 17,529 — 17,529 — Commercial paper 9,566 — 9,566 — Total investments $ 43,320 $ 16,225 $ 27,095 $ — Liabilities Warrant liabilities $ 54 $ — $ — $ 54 Total as of Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Cash and money market funds $ 19,519 $ 19,519 $ — $ — Investments: U.S. government securities 32,175 32,175 — — Corporate securities 22,164 — 22,164 — Commercial paper 14,922 — 14,922 — Total investments $ 69,261 $ 32,175 $ 37,086 $ — Liabilities Warrant liabilities $ 150 $ — $ — $ 150 |
Note 11. Available-for-Sale I_2
Note 11. Available-for-Sale Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-sale | The following table represents the Company’s available-for-sale investments by major security type as of June 30, 2020 and December 31, 2019 (in thousands): June 30, 2020 Amortized Gross Unrealized Gains Gross Unrealized Losses Total Investments: Commercial paper $ 9,566 $ — $ — $ 9,566 Corporate securities 17,415 117 (3) 17,529 U.S. government securities 16,172 72 (19) 16,225 Total available-for-sale investments $ 43,153 $ 189 $ (22) $ 43,320 December 31, 2019 Amortized Gross Unrealized Gains Gross Unrealized Losses Total Investments: Commercial paper $ 14,922 $ — $ — $ 14,922 Corporate securities 22,146 20 (2) 22,164 U.S. government securities 32,152 23 — 32,175 Total available-for-sale investments $ 69,220 $ 43 $ (2) $ 69,261 |
Note 12. Net Loss Per Common _2
Note 12. Net Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following potentially dilutive securities were excluded from the computation of diluted weighted average common shares outstanding due to their anti-dilutive effect: As of June 30, 2020 2019 Shares to be issued upon conversion of Convertible Notes 24,509,805 — Vested and unvested stock options 4,916,825 4,312,703 Restricted stock units 661,250 125,000 Warrants 95,431 96,999 Total anti-dilutive securities excluded from EPS computation 30,183,311 4,534,702 |
Note 1. Organization and Natu_2
Note 1. Organization and Nature of the Business Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Accumulated deficit | $ 299,528 | $ 299,528 | $ 246,245 | ||
Net sales | $ 1,986 | $ 0 | $ 3,662 | $ 0 |
Note 3. Inventory (Details)
Note 3. Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,372 | $ 1,321 |
Work in process | 1,783 | 662 |
Finished goods | 669 | 193 |
Inventory | 4,824 | 2,176 |
Inventory Valuation Reserves | $ 1,500 | $ 0 |
Note 4. Other accrued liabili_3
Note 4. Other accrued liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accrued Expenses [Abstract] | ||
Accrued employee costs | $ 4,689 | $ 6,818 |
Accrued marketing and selling costs | 2,583 | 1,973 |
Accrued research and development costs | 1,760 | 7,062 |
Accrued insurance costs | 1,652 | 0 |
Accrued debt issuance costs | 568 | 0 |
Accrued interest expense | 285 | 449 |
Accrued other costs | 1,703 | 1,817 |
Other accrued liabilities | $ 13,240 | $ 18,119 |
Note 5. Long-Term Debt Debt, Fu
Note 5. Long-Term Debt Debt, Future Principal Payments (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Debt Disclosure [Abstract] | |
Long-term Debt | $ 115,000 |
Note 5. Long-Term Debt Narrativ
Note 5. Long-Term Debt Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2020 | May 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Apr. 21, 2020 | Dec. 31, 2018 | Jun. 30, 2018 | |
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 115,000,000 | $ 115,000,000 | $ 115,000,000 | |||||||
Prepayment allowed per debt agreement | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |||||||
Prepayment penalty percentage | 1.50% | |||||||||
Final payment fee percentage | 3.00% | 3.00% | 3.00% | |||||||
Interest expense | $ 2,242,000 | $ 1,062,000 | $ 3,741,000 | $ 2,125,000 | ||||||
Long-term debt, net of unamortized debt issuance costs | $ 109,476,000 | 109,476,000 | $ 58,305,000 | 109,476,000 | ||||||
Amortization of debt issuance costs | 182,000 | $ 262,000 | 362,000 | 513,000 | ||||||
Loss on extinguishment of debt | 443,000 | $ 0 | ||||||||
Unamortized Debt Issuance Expense | (5,524,000) | (5,524,000) | (1,695,000) | (5,524,000) | ||||||
Long-term Debt Obligations, 2020 | 0 | 0 | 0 | |||||||
Long-term Debt Obligations, 2021 | 0 | 0 | 0 | |||||||
Long-term Debt Obligations, 2022 | 5,714,000 | 5,714,000 | 5,714,000 | |||||||
Long-term Debt Obligations, 2023 | 22,857,000 | 22,857,000 | 22,857,000 | |||||||
Long-term Debt Obligations, 2024 | 11,429,000 | 11,429,000 | 11,429,000 | |||||||
Long-term Debt Obligations, 2025 | $ 75,000,000 | $ 75,000,000 | $ 75,000,000 | |||||||
2018 Loan and Security Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 45,000,000 | |||||||||
Amended Loan and Security Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | 6.25% | 6.25% | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.43% | |||||||||
Interest rate, greater of stated percentage and (a) 2.43% or (b) thirty-day LIBOR | 8.68% | 8.68% | 8.68% | |||||||
2018 Term A Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 20,000,000 | |||||||||
Term A Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Fee | 2.3 million | |||||||||
Term B Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 15,000,000 | |||||||||
Term A Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 40,000,000 | $ 40,000,000 | $ 60,000,000 | $ 40,000,000 | ||||||
Period debt payments are interest only | 30 | |||||||||
Debt Issuance Costs, Gross | 1,900,000 | 1,900,000 | $ 1,900,000 | |||||||
Repayments of Notes Payable | 20,000,000 | |||||||||
Loss on extinguishment of debt | 743,000 | |||||||||
Final payment fee settled at closing | 600,000 | |||||||||
Prepayment fee settled at closing | 300,000 | |||||||||
Minimum cash balance to be held with lender | 5,000,000 | |||||||||
Amendment fee to be settled at maturity | 100,000 | 100,000 | 100,000 | |||||||
Write-off of unamortized debt issuance costs due to prepayment of note | 400,000 | |||||||||
Write-off of prepayment fee due to prepayment of note | 300,000 | |||||||||
Term C Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | 10,000,000 | 10,000,000 | 10,000,000 | |||||||
Term B Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | 15,000,000 | 15,000,000 | $ 15,000,000 | |||||||
Period debt payments are interest only | 21 | |||||||||
PPP Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes Payable | $ 5,100,000 | |||||||||
Repayments of Notes Payable | 4,200,000 | $ 900,000 | ||||||||
Convertible Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 75,000,000 | $ 75,000,000 | $ 0 | $ 75,000,000 | ||||||
Cash interest per annum on convertible notes | 5.00% | 5.00% | 5.00% | |||||||
Debt Instrument, Convertible, Conversion Price | $ 3.06 | $ 3.06 | $ 3.06 | |||||||
Proceeds from Convertible Debt | $ 70,500,000 | |||||||||
Initial conversion rate for Convertible Notes | 326.7974 | |||||||||
Maximum conversion rate of Convertible Notes | 367.6470 | |||||||||
Per principal amount of Convertible Notes | $ 1,000 |
Note 6. Stockholders' Equity (D
Note 6. Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 29, 2020 | Feb. 14, 2020 | Dec. 31, 2019 | Feb. 19, 2019 | |
Equity [Abstract] | ||||||||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 | 150,000,000 | |||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||||
Common Shares, Par Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Preferred Stock, Par Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Total common stock and preferred stock authorized shares | 160,000,000 | 160,000,000 | ||||||
Common Stock, Shares, Issued | 45,151,332 | 45,151,332 | 7,400,000 | 10,299,769 | 27,214,523 | 5,996,775 | ||
Shares Issued, Price Per Share | $ 2.72 | $ 4.15 | $ 10 | |||||
Common shares issued, due to exercise of underwriter option | 116,775 | |||||||
Net proceeds from issuance of public offering | $ 18,800 | $ 39,900 | $ 55,500 | |||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 9,801 | |||||||
Statutory withholding taxes on vesting and settlement of RSUs | $ 100 | |||||||
Restricted stock units vested and settled during period | 31,250 |
Note 7. Warrants Schedule of St
Note 7. Warrants Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Class of Warrant or Right [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 30,183,311 | 4,534,702 |
2014 Warrants [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 1,419 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5.912 | |
Term A Warrants [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 53,720 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 11.169 | |
Term B Warrants [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 40,292 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 11.169 | |
Warrants | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 95,431 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 95,431 | 96,999 |
Note 7. Warrants Narrative (Det
Note 7. Warrants Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | 21 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2014 | Jun. 30, 2020 | |
Class of Warrant or Right [Line Items] | |||||||
Change in fair value of warrants | $ (39) | $ (108) | $ 96 | $ 444 | |||
2014 Warrants [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Preferred stock and warrants issued during the period, shares | 19,931 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5.912 | $ 5.912 | $ 5.912 | ||||
Class of warrants, exercised | 18,512 | ||||||
Warrants outstanding | 1,419 | 1,419 | 1,419 | ||||
Change in fair value of warrants | $ (1) | (4) | $ 3 | 68 | |||
Term A Warrants [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Preferred stock and warrants issued during the period, shares | 53,720 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 11.169 | $ 11.169 | $ 11.169 | ||||
Warrants outstanding | 53,720 | 53,720 | 53,720 | ||||
Change in fair value of warrants | $ (22) | $ (59) | $ 53 | 215 | |||
Term B Warrants [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Preferred stock and warrants issued during the period, shares | 40,292 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 11.169 | $ 11.169 | $ 11.169 | ||||
Warrants outstanding | 40,292 | 40,292 | 40,292 | ||||
Change in fair value of warrants | $ (16) | $ (45) | $ 40 | $ 161 |
Note 8. Commitments and Conti_2
Note 8. Commitments and Contingencies Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Remaining future minimum lease payments, 2020 | $ 968,000 | $ 968,000 | ||
Remaining future minimum lease payments, 2021 | 2,208,000 | 2,208,000 | ||
Remaining future minimum lease payments, 2022 | 2,263,000 | 2,263,000 | ||
Remaining future minimum lease payments, 2023 | 1,745,000 | 1,745,000 | ||
Remaining future minimum lease payments, 2024 | 1,278,000 | 1,278,000 | ||
Remaining future minimum lease payments, 2025 and thereafter | 8,476,000 | 8,476,000 | ||
Operating Leases, Future Minimum Payments Due | 16,938,000 | 16,938,000 | ||
Rent Expense, operating leases | 589,000 | $ 556,000 | 1,131,000 | $ 1,043,000 |
Unused letters of credit | $ 1,083,000 | $ 1,083,000 |
Note 9. Stock Compensation Pl_3
Note 9. Stock Compensation Plan Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used (Details) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 6 years | 6 years |
Risk-free interest rate | 0.45% | 1.76% |
Expected volatility | 66.75% | 58.50% |
Expected dividends | 0.00% | 0.00% |
Note 9. Stock Compensation Pl_4
Note 9. Stock Compensation Plan Employee Stock Award Activity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized expense from restricted stock units | $ 4,200,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 572,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 7.43 | $ 13.88 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 661,250 | 125,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (31,250) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 6.37 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 13.88 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 6.37 | ||
Vested and unvested stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,916,825 | ||
Share-based Payment Arrangement, Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,428,985 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 8.95 | $ 9.40 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 8 years 2 months 8 days | 7 years 11 months 1 day | |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 804,168 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 6.20 | ||
Shares, Exercise and vesting of stock-based awards | (45,390) | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 1.76 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | (242,149) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 9.45 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | (28,789) | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 8.07 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 2,358,295 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 7.65 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 7 years 1 month 24 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 4,669,206 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 8.90 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 7 years 10 months 13 days | ||
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 7 months 2 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (5,000) |
Note 9. Stock Compensation Pl_5
Note 9. Stock Compensation Plan Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based Payment Arrangement, Expense | $ 2,071 | $ 1,701 | $ 4,079 | $ 2,848 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 100 | |||
Research and Development Expense [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based Payment Arrangement, Expense | 239 | 300 | 536 | 495 |
Selling, General and Administrative Expenses [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based Payment Arrangement, Expense | 1,719 | 1,401 | 3,393 | 2,353 |
Cost of Sales | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based Payment Arrangement, Expense | $ 113 | $ 0 | $ 150 | $ 0 |
Note 9. Stock Compensation Pl_6
Note 9. Stock Compensation Plan Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 14,000,000 | $ 14,000,000 | ||||
Least amount of annual increase of shares available for issuance | 386,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 100,000 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 5 months 4 days | |||||
Unrecognized expense from restricted stock units | $ 4,200,000 | |||||
Shares, Issuance of common stock through employee stock purchase plan | 170,201 | 24,229 | 170,201 | |||
Employee Stock Ownership Plan (ESOP), Weighted Average Purchase Price of Shares Purchased | $ 2.26 | |||||
Stock Option Two Year Vesting Period [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 7 months 2 days | |||||
Stock Option Three Year Vesting Period [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Equity Inducement Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 750,000 | 750,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 379,084 | 379,084 | ||||
Employee Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 193,000 | |||||
Percentage shares available for issuance automatically increase annually | 1.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 272,145 | 208,932 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 430,269 | 430,269 | ||||
Maximum employee payroll deduction percentage | 15.00% | |||||
Common stock value, tax limit on employee stock purchase plan | $ 25,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | |||||
2011 Stock Option Issuance Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,714,982 | |||||
2018 Stock Option and Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,822,000 | |||||
Percentage shares available for issuance automatically increase annually | 4.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 1,088,580 | 835,728 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 745,160 | 745,160 |
Note 10. Fair Value Measureme_3
Note 10. Fair Value Measurement Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and money market funds | $ 102,465 | $ 102,465 | $ 19,519 | ||
Investments | 43,320 | 43,320 | 69,261 | ||
Warrants liabilities | 54 | 54 | 150 | ||
Change in fair value of warrants | 39 | $ 108 | (96) | $ (444) | |
Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and money market funds | 102,465 | 102,465 | 19,519 | ||
Investments | 16,225 | 16,225 | 32,175 | ||
Warrants liabilities | 0 | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and money market funds | 0 | 0 | 0 | ||
Investments | 27,095 | 27,095 | 37,086 | ||
Warrants liabilities | 0 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and money market funds | 0 | 0 | 0 | ||
Investments | 0 | 0 | 0 | ||
Warrants liabilities | 54 | 54 | 150 | ||
U.S. government securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments | 16,225 | 16,225 | 32,175 | ||
U.S. government securities | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments | 16,225 | 16,225 | 32,175 | ||
U.S. government securities | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments | 0 | 0 | 0 | ||
U.S. government securities | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments | 0 | 0 | 0 | ||
Corporate securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments | 17,529 | 17,529 | 22,164 | ||
Corporate securities | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments | 0 | 0 | 0 | ||
Corporate securities | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments | 17,529 | 17,529 | 22,164 | ||
Corporate securities | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments | 0 | 0 | 0 | ||
Commercial paper | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments | 9,566 | 9,566 | 14,922 | ||
Commercial paper | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments | 0 | 0 | 0 | ||
Commercial paper | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments | 9,566 | 9,566 | 14,922 | ||
Commercial paper | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments | $ 0 | $ 0 | $ 0 |
Note 11. Available-for-Sale I_3
Note 11. Available-for-Sale Investments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Available For Sale Securities Maturities Period | 4 months 24 days | |
Available-for-sale securities, Amortized Cost | $ 43,153 | $ 69,220 |
Available-for-sale Securities, Gross Unrealized Gains | 189 | 43 |
Available-for-sale Securities, Gross Unrealized Losses | 22 | 2 |
Investments | 43,320 | 69,261 |
Fair Value, Inputs, Level 2 [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | 27,095 | 37,086 |
Fair Value, Inputs, Level 1 [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | 16,225 | 32,175 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Amortized Cost | 9,566 | 14,922 |
Available-for-sale Securities, Gross Unrealized Gains | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 |
Investments | 9,566 | 14,922 |
Commercial paper | Fair Value, Inputs, Level 2 [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | 9,566 | 14,922 |
Commercial paper | Fair Value, Inputs, Level 1 [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | 0 | 0 |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Amortized Cost | 17,415 | 22,146 |
Available-for-sale Securities, Gross Unrealized Gains | 117 | 20 |
Available-for-sale Securities, Gross Unrealized Losses | 3 | (2) |
Investments | 17,529 | 22,164 |
Corporate securities | Fair Value, Inputs, Level 2 [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | 17,529 | 22,164 |
Corporate securities | Fair Value, Inputs, Level 1 [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | 0 | 0 |
U.S. government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Amortized Cost | 16,172 | 32,152 |
Available-for-sale Securities, Gross Unrealized Gains | 72 | 23 |
Available-for-sale Securities, Gross Unrealized Losses | 19 | 0 |
Investments | 16,225 | 32,175 |
U.S. government securities | Fair Value, Inputs, Level 2 [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | 0 | 0 |
U.S. government securities | Fair Value, Inputs, Level 1 [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | $ 16,225 | $ 32,175 |
Note 12. Net Loss Per Common _3
Note 12. Net Loss Per Common Share (Details) - shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 30,183,311 | 4,534,702 |
Shares to be issued upon conversion of Convertible Notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 24,509,805 | 0 |
Vested and unvested stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,916,825 | 4,312,703 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 661,250 | 125,000 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 95,431 | 96,999 |
Note 13. Subsequent Events (Det
Note 13. Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 15, 2020 | Jun. 30, 2020 | Jul. 07, 2020 | Jun. 29, 2020 | Feb. 14, 2020 | Dec. 31, 2019 | Feb. 19, 2019 |
Subsequent Event [Line Items] | |||||||
Common shares issued, due to exercise of underwriter option | 116,775 | ||||||
Common Stock, Shares, Issued | 45,151,332 | 7,400,000 | 10,299,769 | 27,214,523 | 5,996,775 | ||
Shares Issued, Price Per Share | $ 2.72 | $ 4.15 | $ 10 | ||||
Convertible notes issued | $ 86,250 | ||||||
Subsequent Events | Subsequent EventsIn connection with its June 2020 concurrent underwritten public offerings of common stock and 5.00% Convertible Senior Notes due 2025, the underwriters of the equity offering have fully exercised their option to purchase an additional 1,110,000 shares of common stock from the Company and the underwriters of the Convertible Notes offering have fully exercised their option to purchase an additional $11.25 million aggregate principal amount of the Convertible Notes from the Company. The exercise of these options increases the size of the equity offering to an aggregate of 8,510,000 shares at a price to the public of $2.72 per share and increases the size of the Convertible Notes offering to $86.25 million aggregate principal amount of Convertible Notes. The total gross proceeds of the equity and Convertible Notes offerings was approximately $109.4 million, before deducting underwriting discounts and commissions and other offering expenses. The purchase of additional Convertible Notes closed on July 7, 2020, and the purchase of the additional shares of common stock closed on July 15, 2020. | ||||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Common shares issued, due to exercise of underwriter option | 1,110,000 | ||||||
Common Stock, Shares, Issued | 8,510,000 | ||||||
Shares Issued, Price Per Share | $ 2.72 | ||||||
Convertible notes purchased, due to exercise of underwriter option | $ 11,250 | ||||||
Net proceeds from issuance of convertible note and equity public offerings | $ 109,400 | ||||||
Cash interest per annum on convertible notes | 5.00% |
Uncategorized Items - xers-2020
Label | Element | Value |
Share-based Payment Arrangement, Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | us-gaap_SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue | $ 3.67 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1 | 4 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue | $ 1,300,000 |