Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 4-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | SUPERNUS PHARMACEUTICALS INC | |
Entity Central Index Key | 1356576 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 47,762,504 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $25,810 | $36,396 |
Marketable securities | 39,026 | 37,940 |
Accounts receivable, net | 19,271 | 17,270 |
Inventories, net | 13,702 | 13,441 |
Prepaid expenses and other current assets | 3,696 | 3,845 |
Total current assets | 101,505 | 108,892 |
Long term marketable securities | 27,315 | 19,816 |
Property and equipment, net | 2,481 | 2,448 |
Intangible assets, net | 7,839 | 5,434 |
Other non-current assets | 497 | 918 |
Total assets | 139,637 | 137,508 |
Current liabilities: | ||
Accounts payable | 859 | 1,863 |
Accrued expenses | 25,853 | 25,487 |
Deferred licensing revenue | 143 | 143 |
Total current liabilities | 26,855 | 27,493 |
Deferred licensing revenue, net of current portion | 1,238 | 1,274 |
Convertible notes, net of discount | 11,708 | 26,947 |
Other non-current liabilities | 2,561 | 3,876 |
Derivative liabilities | 2,691 | 6,564 |
Total liabilities | 45,053 | 66,154 |
Stockholders' equity: | ||
Common stock, $0.001 par value, 130,000,000 shares authorized at March 31, 2015 and December 31, 2014; 47,513,429 and 42,974,463 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 48 | 43 |
Additional paid-in capital | 252,341 | 230,122 |
Accumulated other comprehensive loss | -65 | -154 |
Accumulated deficit | -157,740 | -158,657 |
Total stockholders' equity | 94,584 | 71,354 |
Total liabilities and stockholders' equity | $139,637 | $137,508 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets | ||
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 130,000,000 | 130,000,000 |
Common stock, shares issued | 47,513,429 | 42,974,463 |
Common stock, shares outstanding | 47,513,429 | 42,974,463 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue | ||
Net product sales | $28,097 | $8,995 |
Licensing revenue | 36 | 86 |
Total revenue | 28,133 | 9,081 |
Costs and expenses | ||
Cost of product sales | 1,618 | 494 |
Research and development | 3,683 | 4,482 |
Selling, general and administrative | 19,402 | 17,527 |
Total costs and expenses | 24,703 | 22,503 |
Operating income (loss) | 3,430 | -13,422 |
Other income (expense) | ||
Interest income | 113 | 102 |
Interest expense | -381 | -1,207 |
Changes in fair value of derivative liabilities | -49 | 677 |
Loss on extinguishment of debt | -2,134 | -1,693 |
Total other income (expense) | -2,451 | -2,121 |
Earnings (loss) before income taxes | 979 | -15,543 |
Income tax expense | 62 | |
Net income (loss) | $917 | ($15,543) |
Income (loss) per common share: | ||
Basic | $0.02 | ($0.38) |
Diluted | $0.02 | ($0.38) |
Weighted-average number of common shares: | ||
Basic (in shares) | 44,563,299 | 41,129,055 |
Diluted (in shares) | 44,901,298 | 41,129,055 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated Statements of Comprehensive Income (Loss) | ||
Net income (loss) | $917 | ($15,543) |
Other comprehensive income: | ||
Unrealized net gain on marketable securities | 89 | 1 |
Other comprehensive income: | 89 | 1 |
Comprehensive income (loss) | $1,006 | ($15,542) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net income (loss) | $917 | ($15,543) |
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used in) operating activities: | ||
Loss on extinguishment of debt | 2,134 | 1,693 |
Change in fair value of derivative liability | 49 | -677 |
Unrealized gain on marketable securities | 89 | 1 |
Depreciation and amortization | 214 | 227 |
Amortization of deferred financing costs and debt discount | 374 | 574 |
Share-based compensation expense | 901 | 667 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -2,001 | -4,671 |
Inventories | -261 | -805 |
Prepaid expenses and other assets | 38 | -660 |
Accounts payable | -1,004 | -975 |
Accrued expenses | 366 | -2,681 |
Deferred product revenue, net | 4,389 | |
Deferred licensing revenue | -36 | -67 |
Other non-current liabilities | -1,277 | -576 |
Net cash provided by (used in) operating activities | 503 | -19,104 |
Cash flows from investing activities | ||
Purchases of marketable securities | -17,315 | -9,406 |
Sales and maturities of marketable securities | 8,731 | 9,096 |
Purchases of property and equipment, net | -189 | -263 |
Deferred legal fees | -2,463 | -1,056 |
Net cash used in investing activities | -11,236 | -1,629 |
Cash flows from financing activities | ||
Proceeds from issuance of common stock | 147 | 6 |
Cash settlement of debt to equity conversion | -1 | |
Net cash provided by financing activities | 147 | 5 |
Net change in cash and cash equivalents | -10,586 | -20,728 |
Cash and cash equivalents at beginning of period | 36,396 | 32,980 |
Cash and cash equivalents at end of period | 25,810 | 12,252 |
Noncash financial activity: | ||
Conversion of convertible notes and interest make-whole | $21,176 | $10,418 |
Organization_and_Business
Organization and Business | 3 Months Ended |
Mar. 31, 2015 | |
Organization and Business | |
Organization and Business | |
1. Organization and Business | |
Supernus Pharmaceuticals, Inc. (the Company) is a specialty pharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases, including neurological and psychiatric disorders. The Company markets two epilepsy products, Oxtellar XR and Trokendi XR, and has several proprietary product candidates in clinical development that address the psychiatry market. | |
The Company commenced the commercialization of Oxtellar XR and Trokendi XR in 2013. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Summary of Significant Accounting Policies | ||||
Summary of Significant Accounting Policies | ||||
2. Summary of Significant Accounting Policies | ||||
Basis of Presentation | ||||
The Company’s unaudited consolidated financial statements include the accounts of Supernus Pharmaceuticals, Inc. and Supernus Europe Ltd. These are collectively referred to herein as “Supernus” or “the Company.” All significant intercompany transactions and balances have been eliminated in consolidation. The Company’s unaudited consolidated financial statements have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (SEC) for interim financial information. | ||||
As permitted under Generally Accepted Accounting Principles in the United States (U.S. GAAP), certain notes and other information have been omitted from the interim unaudited consolidated financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | ||||
In the opinion of management, the consolidated financial statements reflect all adjustments necessary to fairly present the Company’s financial position, results of operations, and cash flows for the periods presented. These adjustments are of a normal recurring nature. The Company currently operates in one business segment. | ||||
The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the Company’s future financial results. | ||||
Accounts Receivable, net | ||||
Accounts receivable are reported in the consolidated balance sheets at outstanding amounts, less an allowance for doubtful accounts and discounts. The Company extends credit without requiring collateral. The Company writes off uncollectible receivables when the likelihood of collection is remote. The Company evaluates the collectability of accounts receivable on a regular basis. An allowance, when needed, is based upon various factors including the financial condition and payment history of customers, an overall review of collections experience on other accounts, and economic factors or events expected to affect future collections experience. No accounts have been written off in 2015 and 2014. The Company recorded an allowance of approximately $3.4 million and $4.1 million for expected sales discounts as of March 31, 2015 and December 31, 2014, respectively. | ||||
Revenue Recognition | ||||
Revenue from product sales is recognized when persuasive evidence of an arrangement exists; delivery has occurred and title to the product and associated risk of loss has passed to the customer; the price is fixed or determinable; collection from the customer has been reasonably assured; all performance obligations have been met; and returns and allowances can be reasonably estimated. Product sales are recorded net of estimated rebates, chargebacks, discounts, co-pay assistance and other deductions as well as estimated product returns (collectively, “sales deductions”).Our products are distributed through wholesalers and pharmaceutical distributors. Each of these wholesalers and distributors will take title and ownership to the product upon physical receipt of the product and then distribute our products to pharmacies. For the three months ended March 31, 2015, the revenue for Oxtellar XR and Trokendi XR was recognized contemporaneously upon shipment of finished product to wholesalers, net of allowances for estimated sales deductions and returns. For the three months ended March 31, 2014, Oxtellar XR revenue was recognized contemporaneously upon shipment of finished product to wholesalers, net of allowances for estimated sales deductions and returns. The Trokendi XR revenue for the three months ended March 31, 2014 was recognized for prescriptions filled during the fourth quarter of 2013. During the three month period ended March 31, 2014, the Company recorded shipments of Trokendi XR to wholesalers as deferred revenue i.e., sales price net of known sales deductions (e.g. prompt pay discounts and other similar charges defined below). At the time, we lacked the experiential data which would allow us to estimate all remaining sales rebates, allowances and returns. The Company moved to contemporaneous revenue recognition for Trokendi XR in the second quarter of 2014. | ||||
Sales Deductions | ||||
Allowances for estimated sales deductions are provided for the following: | ||||
· | Rebates. Rebates include mandated discounts under the Medicaid Drug Rebate Program, the Medicare coverage gap program, as well as negotiated discounts with commercial health-care providers. Rebates are amounts owed after the final dispensing of products to a benefit plan participant and are based upon contractual agreements or legal requirements with the public sector (e.g. Medicaid) and with private sector benefit providers. The allowance for rebates is based on statutory and contractual discount rates and expected claimed rebates paid based on a plan provider’s utilization. Rebates are generally invoiced and paid quarterly in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known prior quarters’ unpaid rebates. If actual future rebates vary from estimates, we may need to adjust prior period accruals, which would affect revenue in the period of adjustment. | |||
· | Chargebacks. Chargebacks are discounts that occur when contracted customers purchase directly from an intermediary distributor or wholesaler. Contracted customers, which currently consist primarily of Public Health Service institutions and Federal government entities purchasing via the Federal Supply Schedule, generally purchase the product at a discounted price. The distributor or wholesaler, in turn, charges back the difference between the price initially paid by the distributor or wholesaler and the discounted price paid to the distributor or wholesaler by the customer. The allowance for distributor/wholesaler chargebacks is based on known sales to contracted customers. | |||
· | Distributor/Wholesaler deductions and discounts. U.S. specialty distributors and wholesalers are offered various forms of consideration including allowances, service fees and prompt payment discounts as consideration for distributing our products. Distributor allowances and service fees arise from contractual agreements with distributors and are generally a percentage of the purchase price paid by the distributors and wholesalers. Wholesale customers are offered a prompt pay discount for payment within a specified period. | |||
· | Co-pay assistance. Patients who pay in cash or have commercial insurance and meet certain eligibility requirements may receive co-pay assistance from the Company. The intent of this program is to reduce the patient’s out of pocket costs. Liabilities for co-pay assistance are based on actual program participation and estimates of program redemption using data provided by third-party administrators. | |||
· | Returns. Sales of our products are not subject to a general right of return; however, the Company will accept product that is damaged or defective when shipped directly from our warehouse or for expired product up to 12 months subsequent to its expiry date. Product that has been used to fill patient prescriptions is no longer subject to any right of return. | |||
Milestone Payments | ||||
Milestone payments on licensing agreements are recognized as revenue when the collaborative partner acknowledges completion of the milestone and substantive effort was necessary to achieve the milestone. Management may recognize revenue contingent upon the achievement of a milestone in its entirety in the period in which the milestone is achieved only if the milestone meets all the criteria to be considered substantive. The Company recorded no milestone revenue during the three months ended March 31, 2015 and 2014. | ||||
Cost of Product Sales | ||||
The cost of product sales consist primarily of materials, third-party manufacturing costs, freight and distribution costs, allocation of labor, quality control and assurance, and other manufacturing overhead costs. | ||||
Income Taxes | ||||
The Company utilizes the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Valuation allowances are established to reduce deferred tax assets to the amounts expected to be realized. | ||||
The Company accounts for uncertain tax positions in its consolidated financial statements when it is more-likely-than-not that the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company’s policy is to recognize any interest and penalties related to income taxes in income tax expense. | ||||
During the three months ended March 31, 2015, the Company had pre-tax income of $1.0 million. The provision for Federal and state income taxes related to such pre-tax income has been largely offset by the utilization of available net operating loss carryforwards (“NOL’s”). Accordingly, the Company reduced its valuation allowance against its deferred tax assets and recognized an income tax expense for the jurisdictions that did not have sufficient NOL’s to offset the expected tax expense. | ||||
Recently Issued Accounting Pronouncements | ||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current GAAP and replace it with a principles-based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. Entities can transition to the standard either retrospectively or as a cumulative effect adjustment as of the date of adoption. Presently, the Company is assessing what effect the adoption of ASU 2014-09 will have on our consolidated financial statements and accompanying notes. | ||||
In August 2014, the FASB issued Accounting Standards Update 2014-15 “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). The new standard requires management to perform interim and annual assessments of an entity’s ability to continue to meet its obligations as they become due within one year after the date that the financial statements are issued. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. We do not believe the adoption of the new standard will have a significant impact on our operations. | ||||
The Company has evaluated all other ASUs issued through the date the consolidated financials were issued and believes that the adoption of these will not have a material impact on the Company’s consolidated financial statements. | ||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
3. Fair Value of Financial Instruments | ||||||||||||||
The fair value of an asset or liability should represent the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Such transactions to sell an asset or transfer a liability are assumed to occur in the principal or most advantageous market for the asset or liability. Accordingly, fair value is determined based on a hypothetical transaction at the measurement date, considered from the perspective of a market participant rather than from a reporting entity’s perspective. | ||||||||||||||
The Company reports assets and liabilities that are measured at fair value using a three level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | ||||||||||||||
· | Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |||||||||||||
· | Level 2—Inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (interest rates, yield curves, etc.) and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). | |||||||||||||
· | Level 3—Unobservable inputs that reflect the Company’s own assumptions, based on the best information available, including the Company’s own data. | |||||||||||||
In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value, in thousands: | ||||||||||||||
Fair Value Measurements at | ||||||||||||||
March 31, 2015 | ||||||||||||||
(unaudited) | ||||||||||||||
Significant | ||||||||||||||
Total Carrying | Quoted Prices | Other | Significant | |||||||||||
Value at | in Active | Observable | Unobservable | |||||||||||
March 31, | Markets | Inputs | Inputs | |||||||||||
2015 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 25,810 | $ | 25,810 | $ | — | $ | — | ||||||
Marketable securities | 39,026 | — | 39,026 | — | ||||||||||
Long term marketable securities | 27,315 | — | 27,315 | — | ||||||||||
Marketable securities - restricted (SERP) | 267 | — | 267 | — | ||||||||||
Total assets at fair value | $ | 92,418 | $ | 25,810 | $ | 66,608 | $ | — | ||||||
Liabilities: | ||||||||||||||
Derivative liabilities | $ | 2,691 | $ | — | $ | — | $ | 2,691 | ||||||
Fair Value Measurements at | ||||||||||||||
December 31, 2014 | ||||||||||||||
Significant | ||||||||||||||
Total Carrying | Quoted Prices | Other | Significant | |||||||||||
Value at | in Active | Observable | Unobservable | |||||||||||
December 31, | Markets | Inputs | Inputs | |||||||||||
2014 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 36,396 | $ | 36,396 | $ | — | $ | — | ||||||
Marketable securities | 37,940 | — | 37,940 | — | ||||||||||
Long term marketable securities | 19,816 | — | 19,816 | — | ||||||||||
Marketable securities - restricted (SERP) | 305 | — | 305 | — | ||||||||||
Total assets at fair value | $ | 94,457 | $ | 36,396 | $ | 58,061 | $ | — | ||||||
Liabilities: | ||||||||||||||
Derivative liabilities | $ | 6,564 | $ | — | $ | — | $ | 6,564 | ||||||
The fair value of the restricted marketable securities is included within other non-current assets in the consolidated balance sheets. | ||||||||||||||
The Company’s Level 1 assets include money market funds and U.S. Treasury and government agency debt securities with quoted prices in active markets. | ||||||||||||||
Level 2 assets include mutual funds in which the SERP (Supplemental Executive Retirement Plan) assets are invested, commercial paper and investment grade corporate bonds and other fixed income securities. Level 2 securities are valued using third-party pricing sources that apply applicable inputs and other relevant data into their models to estimate fair value. | ||||||||||||||
Level 3 liabilities include the estimated fair value of the interest make-whole liability associated with the Company’s 7.50% Convertible Senior Secured Notes due 2019 (the Notes) and the outstanding warrants to purchase Common Stock, which are recorded as derivative liabilities. | ||||||||||||||
The fair value of the interest make-whole liability of the Notes was calculated using a binomial-lattice model with the following key assumptions as of March 31, 2015, unaudited: | ||||||||||||||
Volatility | 45% | |||||||||||||
Stock Price as of March 31, 2015 | $12.09 per share | |||||||||||||
Credit Spread | 1388 bps | |||||||||||||
Term | 2.1 years | |||||||||||||
Dividend Yield | 0.00% | |||||||||||||
The fair value of the common stock warrant liability was calculated using a Black-Scholes model with the following assumptions as of March 31, 2015, unaudited: | ||||||||||||||
Exercise Price | $4.00 - $5.00 per share | |||||||||||||
Volatility | 65% | |||||||||||||
Stock Price as of March 31, 2015 | $12.09 per share | |||||||||||||
Term | 5.8 - 6.8 years | |||||||||||||
Dividend Yield | 0.00% | |||||||||||||
Risk-Free Rate | 1.5% -1.7% | |||||||||||||
Significant changes to these assumptions could result in increases/decreases to the fair value of the derivative liabilities. | ||||||||||||||
Changes in the fair value of the warrants and the interest make-whole liability are recognized as a component of Other Income (Expense) in the Consolidated Statements of Operations. The following table presents information about the Company’s Level 3 liabilities as of December 31, 2014 and March 31, 2015 that are included in the Non-Current Liabilities section of the Consolidated Balance Sheets, in thousands: | ||||||||||||||
Three Months ended | ||||||||||||||
March 31, | ||||||||||||||
2015 | ||||||||||||||
(unaudited) | ||||||||||||||
Balance at December 31, 2014 | $ | 6,564 | ||||||||||||
Changes in fair value of derivative liabilities included in earnings | 49 | |||||||||||||
Reduction due to conversion of debt to equity | (3,922 | ) | ||||||||||||
Balance at March 31, 2015 | $ | 2,691 | ||||||||||||
The carrying value, face value and estimated fair value of the Notes was approximately $11.7 million, $14.7 million and $35.8 million, respectively, as of March 31, 2015. The fair value was estimated based on actual trade information as well as quoted prices provided by bond traders, which would be characterized within Level 2 of the fair value hierarchy. This fair value amount gives recognition to the value of the interest make-whole liability and the value of the conversion option. These items have been accounted for as derivative liabilities and additional paid-in-capital, respectively. | ||||||||||||||
The carrying amounts of other financial instruments, including accounts receivable, accounts payable and accrued expenses approximate fair value due to their short-term maturities. | ||||||||||||||
Unrestricted marketable securities held by the Company were as follows, in thousands: | ||||||||||||||
At March 31, 2015 (unaudited): | ||||||||||||||
Available for Sale | Amortized | Gross | Gross | Fair Value | ||||||||||
Cost | Unrealized | Unrealized | ||||||||||||
Gains | Losses | |||||||||||||
Corporate debt securities | $ | 66,406 | $ | 15 | $ | (80 | ) | $ | 66,341 | |||||
At December 31, 2014: | ||||||||||||||
Available for Sale | Amortized | Gross | Gross | Fair Value | ||||||||||
Cost | Unrealized | Unrealized | ||||||||||||
Gains | Losses | |||||||||||||
Corporate debt securities | $ | 57,910 | $ | 4 | $ | (158 | ) | $ | 57,756 | |||||
The contractual maturities of the unrestricted available for sale marketable securities held by the Company were as follows, in thousands: | ||||||||||||||
March 31, | ||||||||||||||
2015 | ||||||||||||||
(unaudited) | ||||||||||||||
Less Than 1 Year | $ | 39,026 | ||||||||||||
1-5 years | 27,315 | |||||||||||||
Greater Than 5 Years | — | |||||||||||||
Total | $ | 66,341 | ||||||||||||
The Company has not experienced any other-than-temporary losses on its marketable securities and restricted marketable securities. The cost of securities sold is calculated using the specific identification method. | ||||||||||||||
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventories | ||||||||
Inventories | ||||||||
4. Inventories | ||||||||
Inventories consist of the following, in thousands: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(unaudited) | ||||||||
Raw materials | $ | 3,132 | $ | 2,491 | ||||
Work in process | 6,328 | 6,328 | ||||||
Finished goods | 4,242 | 4,622 | ||||||
$ | 13,702 | $ | 13,441 | |||||
Property_and_Equipment
Property and Equipment | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property and Equipment | ||||||||
Property and Equipment | ||||||||
5. Property and Equipment | ||||||||
Property and equipment consist of the following, in thousands: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(unaudited) | ||||||||
Computer equipment | $ | 932 | $ | 862 | ||||
Software | 314 | 254 | ||||||
Lab equipment and furniture | 5,235 | 5,194 | ||||||
Leasehold improvements | 2,446 | 2,428 | ||||||
8,927 | 8,738 | |||||||
Less accumulated depreciation and amortization | (6,446 | ) | (6,290 | ) | ||||
$ | 2,481 | $ | 2,448 | |||||
Depreciation expense on property and equipment was approximately $156,000 for the three months ended March 31, 2015 and $169,000 for the three months ended March 31, 2014. | ||||||||
Intangible_Assets
Intangible Assets | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Intangible Assets | ||||||||||||||||
Intangible Assets | ||||||||||||||||
6. Intangible Assets | ||||||||||||||||
The Company purchased certain patents from Shire Laboratories, Inc. pursuant to a 2005 purchase agreement. These patents are being amortized over the weighted average life of the patents purchased in that transaction. Deferred legal fees have been incurred in connection with complaints related to patents for Oxtellar XR and Trokendi XR (see Part II, Item I—Legal Proceedings in this Quarterly Report on Form 10-Q). The following sets forth the gross carrying amount and related accumulated amortization of these intangible assets, in thousands: | ||||||||||||||||
March 31, 2015 | ||||||||||||||||
(unaudited) | December 31, 2014 | |||||||||||||||
Weighted- | Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||||
Average Life | Amount | Amortization | Amount | Amortization | ||||||||||||
Purchased patents | 10.0 | $ | 2,292 | $ | 2,125 | $ | 2,292 | $ | 2,067 | |||||||
Deferred legal fees | $ | 7,672 | $ | — | $ | 5,209 | $ | — | ||||||||
Deferred legal fees will be capitalized as part of the patents upon successful outcome of the on-going litigation related to these patents, at which point amortization of those costs will begin. If the Company is unsuccessful, the deferred legal fees will be expensed at that time. Four U.S. patents have been issued covering Oxtellar XR and six U.S. patents have been issued covering Trokendi XR, providing patent protection through at least 2027. | ||||||||||||||||
Amortization expense associated with purchased patents was approximately $57,000 for each of the three months ended March 31, 2015 and 2014. The estimated annual aggregate amortization expense through December 31, 2015 is $229,000. The net book value of intangible assets as of March 31, 2015 was approximately $7.8 million and December 31, 2014 was approximately $5.4 million. | ||||||||||||||||
There were no indicators of impairment identified at March 31, 2015 or December 31, 2014. | ||||||||||||||||
Accrued_Liabilities
Accrued Liabilities | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accrued Liabilities | ||||||||
Accrued Liabilities | ||||||||
7. Accrued Liabilities | ||||||||
Accrued Liabilities are comprised of the following, in thousands: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(unaudited) | ||||||||
Accrued sales deductions | $ | 10,025 | $ | 8,461 | ||||
Accrued compensation | 7,334 | 5,829 | ||||||
Accrued professional fees | 3,546 | 2,049 | ||||||
Accrued clinical trial and clinical supply costs | 1,698 | 2,942 | ||||||
Accrued sales and marketing expenses | 1,051 | 1,017 | ||||||
Accrued interest expense | 646 | 639 | ||||||
Accrued product costs | 131 | 3,014 | ||||||
Other accrued liabilities | 1,422 | 1,536 | ||||||
$ | 25,853 | $ | 25,487 | |||||
Convertible_Senior_Secured_Not
Convertible Senior Secured Notes | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Convertible Senior Secured Notes | |||||
Convertible Senior Secured Notes | |||||
8. Convertible Senior Secured Notes | |||||
The table below summarizes activity related to the Notes from issuance on May 3, 2013 through March 31, 2015, in thousands: | |||||
Gross proceeds | $ | 90,000 | |||
Initial value of interest make-whole derivative reported as debt discount | (9,270 | ) | |||
Conversion option reported as debt discount and APIC | (22,336 | ) | |||
Conversion of debt to equity - principal | (53,941 | ) | |||
Conversion of debt to equity - accretion of debt discount | 17,926 | ||||
Accretion of debt discount | 4,568 | ||||
December 31, 2014 carrying value | 26,947 | ||||
Conversion of debt to equity - principal | (21,407 | ) | |||
Conversion of debt to equity - accretion of debt discount | 5,826 | ||||
Accretion of debt discount | 342 | ||||
March 31, 2015 carrying value, unaudited | $ | 11,708 | |||
During the three month period ended March 31, 2015, approximately $21.4 million of the Notes were presented to the Company for conversion. Accordingly, the Company issued approximately 4.0 million shares of common stock in conversion of the principal amount of the Notes. The Company issued an additional 0.4 million shares of common stock in settlement of the interest make-whole provision related to the converted Notes. As a result of the conversions, the Company incurred a loss of approximately $2.1 million on extinguishment of debt during the three months ended March 31, 2015, which is included as a separate component of other income (expense) on the consolidated statement of operations. During the three month period ended March 31, 2014, as a result of approximately $9.5 million in note conversions, the Company incurred a loss of approximately $1.7 million on extinguishment of debt. | |||||
ShareBased_Payments
Share-Based Payments | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Share-Based Payments | |||||||||
Share-Based Payments | |||||||||
9. Share-Based Payments | |||||||||
The Company has adopted the Supernus Pharmaceuticals, Inc. 2012 Equity Incentive Plan (the 2012 Plan), which is stockholder approved, and provides for the grant of stock options and certain other awards, including stock appreciation rights (SAR), restricted and unrestricted stock, stock units, performance awards, cash awards and other awards that are convertible into or otherwise based on the Company’s common stock, to the Company’s key employees, directors, and consultants and advisors. The 2012 Plan is administered by the Company’s Board of Directors and provides for the issuance of up to 4,000,000 shares of the Company’s Common Stock upon the exercise of stock options. Option awards are granted with an exercise price equal to the estimated fair value of the Company’s Common Stock at the grant date; those option awards generally vest in four annual installments, starting on the first anniversary of the date of grant and have ten year contractual terms. Share-based compensation recognized related to the grant of employee and non-employee stock options, SAR, potential Employee Stock Purchase Plan (ESPP) awards and non-vested stock was as follows, in thousands: | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(unaudited) | |||||||||
Research and development | $ | 204 | $ | 184 | |||||
Selling, general and administrative | 697 | 483 | |||||||
Total | $ | 901 | $ | 667 | |||||
The following table summarizes stock option and SAR activity: | |||||||||
Number of | Weighted- | Weighted- | |||||||
Options | Average | Average | |||||||
Exercise Price | Remaining | ||||||||
Contractual | |||||||||
Term (in years) | |||||||||
Outstanding, December 31, 2014 | 2,080,749 | $ | 7.93 | 8.04 | |||||
Granted (unaudited) | 866,300 | $ | 9.22 | ||||||
Exercised (unaudited) | (68,896 | ) | $ | 2.13 | |||||
Forfeited or expired (unaudited) | (11,656 | ) | $ | 7.95 | |||||
Outstanding, March 31, 2015 (unaudited) | 2,866,497 | $ | 8.46 | 8.51 | |||||
As of December 31, 2014: | |||||||||
Vested and expected to vest | 2,041,026 | $ | 7.91 | 8.03 | |||||
Exercisable | 626,548 | $ | 6.4 | 6.91 | |||||
As of March 31, 2015: | |||||||||
Vested and expected to vest (unaudited) | 2,793,934 | $ | 8.45 | 8.49 | |||||
Exercisable (unaudited) | 913,327 | $ | 7.54 | 7.42 | |||||
Earnings_per_Share
Earnings per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings per Share | ||||||||
Earnings per Share | ||||||||
10. Earnings per Share | ||||||||
Basic income (loss) per common share is determined by dividing income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. Diluted income (loss) per share is computed by dividing the income (loss) attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period. The treasury stock method is used to determine the dilutive effect of the Company’s stock option grants, SARs, potential ESPP awards and warrants, and the if-converted method is used to determine the dilutive effect of the Company’s Notes. The assumed conversion of the Notes would result in a loss on extinguishment which would cause a net loss in 2015; thus, the effect would be anti-dilutive. The following common stock equivalents were excluded in the calculation of diluted income (loss) per share because their effect would be anti-dilutive as applied to the income (loss) from continuing operations applicable to common stockholders for the three months ended March 31, 2015 and 2014: | ||||||||
Three Months ended March 31, | ||||||||
2015 | 2014 | |||||||
(unaudited) | ||||||||
Shares underlying Convertible Senior Secured Notes | 6,071,894 | 7,556,001 | ||||||
Warrants to purchase common stock | 21,800 | 21,273 | ||||||
Stock options, stock appreciation rights, non-vested stock options, and ESPP awards | — | 356,364 | ||||||
The following table sets forth the computation of basic and diluted net income per share for the three months ended March 31, 2015 and 2014, in thousands, except share and per share amounts: | ||||||||
Three Months ended March 31, | ||||||||
2015 | 2014 | |||||||
(unaudited) | ||||||||
Numerator, in thousands: | ||||||||
Net income (loss) used for calculation of basic and diluted EPS | $ | 917 | $ | (15,543 | ) | |||
Denominator: | ||||||||
Weighted average shares outstanding, basic | 44,563,299 | 41,129,055 | ||||||
Stock options, stock appreciation rights, non-vested stock options, and ESPP awards | 337,999 | — | ||||||
Total potential dilutive common shares | 337,999 | — | ||||||
Weighted average shares outstanding, diluted | 44,901,298 | 41,129,055 | ||||||
Net income (loss) per share, basic | $ | 0.02 | $ | (0.38 | ) | |||
Net income (loss) per share, diluted | $ | 0.02 | $ | (0.38 | ) | |||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies | |||||
Commitments and Contingencies | |||||
11. Commitments and Contingencies | |||||
The Company has concurrent leases for office and lab space that extend through April 2020. The Company may elect to extend the term of the leases for an additional five-year term. The leases provide for a tenant improvement allowance of approximately $2.1 million in aggregate. During the three months ended March 31, 2015 and 2014, none of the allowance was utilized. As of March 31, 2015, $0.7 million is available for tenant improvements. Rent expense for the leased facilities and leased vehicles for the three months ended March 31, 2015 and 2014 was approximately, $0.7 million, and $0.5 million, respectively. | |||||
Future minimum lease payments under non-cancelable operating leases as of March 31, 2015 are as follows, in thousands: | |||||
Year ending December 31: | |||||
2015 (remaining) | $ | 1,311 | |||
2016 | 1,287 | ||||
2017 | 1,291 | ||||
2018 | 1,314 | ||||
Thereafter | 1,795 | ||||
$ | 6,998 | ||||
The Company has obtained exclusive licenses from third parties for proprietary rights to support the product candidates in the Company’s psychiatry portfolio. Under license agreements with Afecta Pharmaceuticals, Inc. (“Afecta”), the Company has an exclusive option to evaluate Afecta’s CNS pipeline and to obtain exclusive worldwide rights to selected product candidates, including an exclusive license to SPN-810. The Company does not owe any future milestone payments for SPN-810. The Company is obligated to pay royalties to Afecta based on worldwide net sales of each of these products in the low-single digits. | |||||
The Company has also entered into a purchase and sale agreement with Rune Healthcare Limited (“Rune”), where the Company obtained the exclusive worldwide rights to a product concept from Rune. There are no future milestone payments due to Rune under this agreement. If the Company receives approval to market and sell any products based on the Rune product concept for SPN-809, the Company is obligated to pay royalties to Rune based on net sales worldwide in the low single digits. | |||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events | |
Subsequent Events | |
12. Subsequent Events | |
Subsequent to March 31, 2015, holders of the Notes converted approximately $1.2 million of the Notes and we issued a total of approximately 0.2 million shares of common stock in conversion of the principal amount of the Notes and accrued interest thereon, and issued an additional 20,000 shares of common stock in settlement of the interest make-whole provision related to the converted Notes. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Summary of Significant Accounting Policies | ||||
Basis of Presentation | ||||
Basis of Presentation | ||||
The Company’s unaudited consolidated financial statements include the accounts of Supernus Pharmaceuticals, Inc. and Supernus Europe Ltd. These are collectively referred to herein as “Supernus” or “the Company.” All significant intercompany transactions and balances have been eliminated in consolidation. The Company’s unaudited consolidated financial statements have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (SEC) for interim financial information. | ||||
As permitted under Generally Accepted Accounting Principles in the United States (U.S. GAAP), certain notes and other information have been omitted from the interim unaudited consolidated financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | ||||
In the opinion of management, the consolidated financial statements reflect all adjustments necessary to fairly present the Company’s financial position, results of operations, and cash flows for the periods presented. These adjustments are of a normal recurring nature. The Company currently operates in one business segment. | ||||
The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the Company’s future financial results. | ||||
Accounts Receivable, net | ||||
Accounts Receivable, net | ||||
Accounts receivable are reported in the consolidated balance sheets at outstanding amounts, less an allowance for doubtful accounts and discounts. The Company extends credit without requiring collateral. The Company writes off uncollectible receivables when the likelihood of collection is remote. The Company evaluates the collectability of accounts receivable on a regular basis. An allowance, when needed, is based upon various factors including the financial condition and payment history of customers, an overall review of collections experience on other accounts, and economic factors or events expected to affect future collections experience. No accounts have been written off in 2015 and 2014. The Company recorded an allowance of approximately $3.4 million and $4.1 million for expected sales discounts as of March 31, 2015 and December 31, 2014, respectively. | ||||
Revenue Recognition | ||||
Revenue Recognition | ||||
Revenue from product sales is recognized when persuasive evidence of an arrangement exists; delivery has occurred and title to the product and associated risk of loss has passed to the customer; the price is fixed or determinable; collection from the customer has been reasonably assured; all performance obligations have been met; and returns and allowances can be reasonably estimated. Product sales are recorded net of estimated rebates, chargebacks, discounts, co-pay assistance and other deductions as well as estimated product returns (collectively, “sales deductions”).Our products are distributed through wholesalers and pharmaceutical distributors. Each of these wholesalers and distributors will take title and ownership to the product upon physical receipt of the product and then distribute our products to pharmacies. For the three months ended March 31, 2015, the revenue for Oxtellar XR and Trokendi XR was recognized contemporaneously upon shipment of finished product to wholesalers, net of allowances for estimated sales deductions and returns. For the three months ended March 31, 2014, Oxtellar XR revenue was recognized contemporaneously upon shipment of finished product to wholesalers, net of allowances for estimated sales deductions and returns. The Trokendi XR revenue for the three months ended March 31, 2014 was recognized for prescriptions filled during the fourth quarter of 2013. During the three month period ended March 31, 2014, the Company recorded shipments of Trokendi XR to wholesalers as deferred revenue i.e., sales price net of known sales deductions (e.g. prompt pay discounts and other similar charges defined below). At the time, we lacked the experiential data which would allow us to estimate all remaining sales rebates, allowances and returns. The Company moved to contemporaneous revenue recognition for Trokendi XR in the second quarter of 2014. | ||||
Sales Deductions | ||||
Allowances for estimated sales deductions are provided for the following: | ||||
· | Rebates. Rebates include mandated discounts under the Medicaid Drug Rebate Program, the Medicare coverage gap program, as well as negotiated discounts with commercial health-care providers. Rebates are amounts owed after the final dispensing of products to a benefit plan participant and are based upon contractual agreements or legal requirements with the public sector (e.g. Medicaid) and with private sector benefit providers. The allowance for rebates is based on statutory and contractual discount rates and expected claimed rebates paid based on a plan provider’s utilization. Rebates are generally invoiced and paid quarterly in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known prior quarters’ unpaid rebates. If actual future rebates vary from estimates, we may need to adjust prior period accruals, which would affect revenue in the period of adjustment. | |||
· | Chargebacks. Chargebacks are discounts that occur when contracted customers purchase directly from an intermediary distributor or wholesaler. Contracted customers, which currently consist primarily of Public Health Service institutions and Federal government entities purchasing via the Federal Supply Schedule, generally purchase the product at a discounted price. The distributor or wholesaler, in turn, charges back the difference between the price initially paid by the distributor or wholesaler and the discounted price paid to the distributor or wholesaler by the customer. The allowance for distributor/wholesaler chargebacks is based on known sales to contracted customers. | |||
· | Distributor/Wholesaler deductions and discounts. U.S. specialty distributors and wholesalers are offered various forms of consideration including allowances, service fees and prompt payment discounts as consideration for distributing our products. Distributor allowances and service fees arise from contractual agreements with distributors and are generally a percentage of the purchase price paid by the distributors and wholesalers. Wholesale customers are offered a prompt pay discount for payment within a specified period. | |||
· | Co-pay assistance. Patients who pay in cash or have commercial insurance and meet certain eligibility requirements may receive co-pay assistance from the Company. The intent of this program is to reduce the patient’s out of pocket costs. Liabilities for co-pay assistance are based on actual program participation and estimates of program redemption using data provided by third-party administrators. | |||
· | Returns. Sales of our products are not subject to a general right of return; however, the Company will accept product that is damaged or defective when shipped directly from our warehouse or for expired product up to 12 months subsequent to its expiry date. Product that has been used to fill patient prescriptions is no longer subject to any right of return. | |||
Milestone Payments | ||||
Milestone payments on licensing agreements are recognized as revenue when the collaborative partner acknowledges completion of the milestone and substantive effort was necessary to achieve the milestone. Management may recognize revenue contingent upon the achievement of a milestone in its entirety in the period in which the milestone is achieved only if the milestone meets all the criteria to be considered substantive. The Company recorded no milestone revenue during the three months ended March 31, 2015 and 2014. | ||||
Cost of Product Sales | ||||
Cost of Product Sales | ||||
The cost of product sales consist primarily of materials, third-party manufacturing costs, freight and distribution costs, allocation of labor, quality control and assurance, and other manufacturing overhead costs. | ||||
Income Taxes | ||||
Income Taxes | ||||
The Company utilizes the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Valuation allowances are established to reduce deferred tax assets to the amounts expected to be realized. | ||||
The Company accounts for uncertain tax positions in its consolidated financial statements when it is more-likely-than-not that the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company’s policy is to recognize any interest and penalties related to income taxes in income tax expense. | ||||
During the three months ended March 31, 2015, the Company had pre-tax income of $1.0 million. The provision for Federal and state income taxes related to such pre-tax income has been largely offset by the utilization of available net operating loss carryforwards (“NOL’s”). Accordingly, the Company reduced its valuation allowance against its deferred tax assets and recognized an income tax expense for the jurisdictions that did not have sufficient NOL’s to offset the expected tax expense. | ||||
Recently Issued Accounting Pronouncements | ||||
Recently Issued Accounting Pronouncements | ||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current GAAP and replace it with a principles-based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. Entities can transition to the standard either retrospectively or as a cumulative effect adjustment as of the date of adoption. Presently, the Company is assessing what effect the adoption of ASU 2014-09 will have on our consolidated financial statements and accompanying notes. | ||||
In August 2014, the FASB issued Accounting Standards Update 2014-15 “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). The new standard requires management to perform interim and annual assessments of an entity’s ability to continue to meet its obligations as they become due within one year after the date that the financial statements are issued. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. We do not believe the adoption of the new standard will have a significant impact on our operations. | ||||
The Company has evaluated all other ASUs issued through the date the consolidated financials were issued and believes that the adoption of these will not have a material impact on the Company’s consolidated financial statements. | ||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
Schedule of fair value of the financial assets and liabilities | ||||||||||||||
In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value, in thousands: | ||||||||||||||
Fair Value Measurements at | ||||||||||||||
March 31, 2015 | ||||||||||||||
(unaudited) | ||||||||||||||
Significant | ||||||||||||||
Total Carrying | Quoted Prices | Other | Significant | |||||||||||
Value at | in Active | Observable | Unobservable | |||||||||||
March 31, | Markets | Inputs | Inputs | |||||||||||
2015 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 25,810 | $ | 25,810 | $ | — | $ | — | ||||||
Marketable securities | 39,026 | — | 39,026 | — | ||||||||||
Long term marketable securities | 27,315 | — | 27,315 | — | ||||||||||
Marketable securities - restricted (SERP) | 267 | — | 267 | — | ||||||||||
Total assets at fair value | $ | 92,418 | $ | 25,810 | $ | 66,608 | $ | — | ||||||
Liabilities: | ||||||||||||||
Derivative liabilities | $ | 2,691 | $ | — | $ | — | $ | 2,691 | ||||||
Fair Value Measurements at | ||||||||||||||
December 31, 2014 | ||||||||||||||
Significant | ||||||||||||||
Total Carrying | Quoted Prices | Other | Significant | |||||||||||
Value at | in Active | Observable | Unobservable | |||||||||||
December 31, | Markets | Inputs | Inputs | |||||||||||
2014 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 36,396 | $ | 36,396 | $ | — | $ | — | ||||||
Marketable securities | 37,940 | — | 37,940 | — | ||||||||||
Long term marketable securities | 19,816 | — | 19,816 | — | ||||||||||
Marketable securities - restricted (SERP) | 305 | — | 305 | — | ||||||||||
Total assets at fair value | $ | 94,457 | $ | 36,396 | $ | 58,061 | $ | — | ||||||
Liabilities: | ||||||||||||||
Derivative liabilities | $ | 6,564 | $ | — | $ | — | $ | 6,564 | ||||||
Schedule of Level 3 liabilities included in Non-current Liabilities on the Balance Sheet | The following table presents information about the Company’s Level 3 liabilities as of December 31, 2014 and March 31, 2015 that are included in the Non-Current Liabilities section of the Consolidated Balance Sheets, in thousands: | |||||||||||||
Three Months ended | ||||||||||||||
March 31, | ||||||||||||||
2015 | ||||||||||||||
(unaudited) | ||||||||||||||
Balance at December 31, 2014 | $ | 6,564 | ||||||||||||
Changes in fair value of derivative liabilities included in earnings | 49 | |||||||||||||
Reduction due to conversion of debt to equity | (3,922 | ) | ||||||||||||
Balance at March 31, 2015 | $ | 2,691 | ||||||||||||
Schedule of unrestricted marketable securities | ||||||||||||||
Unrestricted marketable securities held by the Company were as follows, in thousands: | ||||||||||||||
At March 31, 2015 (unaudited): | ||||||||||||||
Available for Sale | Amortized | Gross | Gross | Fair Value | ||||||||||
Cost | Unrealized | Unrealized | ||||||||||||
Gains | Losses | |||||||||||||
Corporate debt securities | $ | 66,406 | $ | 15 | $ | (80 | ) | $ | 66,341 | |||||
At December 31, 2014: | ||||||||||||||
Available for Sale | Amortized | Gross | Gross | Fair Value | ||||||||||
Cost | Unrealized | Unrealized | ||||||||||||
Gains | Losses | |||||||||||||
Corporate debt securities | $ | 57,910 | $ | 4 | $ | (158 | ) | $ | 57,756 | |||||
Schedule of contractual maturities of the unrestricted available for sale marketable securities held | ||||||||||||||
The contractual maturities of the unrestricted available for sale marketable securities held by the Company were as follows, in thousands: | ||||||||||||||
March 31, | ||||||||||||||
2015 | ||||||||||||||
(unaudited) | ||||||||||||||
Less Than 1 Year | $ | 39,026 | ||||||||||||
1-5 years | 27,315 | |||||||||||||
Greater Than 5 Years | — | |||||||||||||
Total | $ | 66,341 | ||||||||||||
Interest make-whole liability | ||||||||||||||
Fair value of financial instruments | ||||||||||||||
Schedule of assumptions used to calculate fair value of liabilities | ||||||||||||||
Volatility | 45% | |||||||||||||
Stock Price as of March 31, 2015 | $12.09 per share | |||||||||||||
Credit Spread | 1388 bps | |||||||||||||
Term | 2.1 years | |||||||||||||
Dividend Yield | 0.00% | |||||||||||||
Warrant to purchase common stock | ||||||||||||||
Fair value of financial instruments | ||||||||||||||
Schedule of assumptions used to calculate fair value of liabilities | ||||||||||||||
Exercise Price | $4.00 - $5.00 per share | |||||||||||||
Volatility | 65% | |||||||||||||
Stock Price as of March 31, 2015 | $12.09 per share | |||||||||||||
Term | 5.8 - 6.8 years | |||||||||||||
Dividend Yield | 0.00% | |||||||||||||
Risk-Free Rate | 1.5% -1.7% | |||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventories | ||||||||
Schedule of inventories | ||||||||
Inventories consist of the following, in thousands: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(unaudited) | ||||||||
Raw materials | $ | 3,132 | $ | 2,491 | ||||
Work in process | 6,328 | 6,328 | ||||||
Finished goods | 4,242 | 4,622 | ||||||
$ | 13,702 | $ | 13,441 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property and Equipment | ||||||||
Schedule of property and equipment | ||||||||
Property and equipment consist of the following, in thousands: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(unaudited) | ||||||||
Computer equipment | $ | 932 | $ | 862 | ||||
Software | 314 | 254 | ||||||
Lab equipment and furniture | 5,235 | 5,194 | ||||||
Leasehold improvements | 2,446 | 2,428 | ||||||
8,927 | 8,738 | |||||||
Less accumulated depreciation and amortization | (6,446 | ) | (6,290 | ) | ||||
$ | 2,481 | $ | 2,448 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Intangible Assets | ||||||||||||||||
Schedule of gross carrying amount and related accumulated amortization of the intangible assets | The following sets forth the gross carrying amount and related accumulated amortization of these intangible assets, in thousands: | |||||||||||||||
March 31, 2015 | ||||||||||||||||
(unaudited) | December 31, 2014 | |||||||||||||||
Weighted- | Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||||
Average Life | Amount | Amortization | Amount | Amortization | ||||||||||||
Purchased patents | 10.0 | $ | 2,292 | $ | 2,125 | $ | 2,292 | $ | 2,067 | |||||||
Deferred legal fees | $ | 7,672 | $ | — | $ | 5,209 | $ | — | ||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accrued Liabilities | ||||||||
Schedule of accrued liabilities | ||||||||
Accrued Liabilities are comprised of the following, in thousands: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(unaudited) | ||||||||
Accrued sales deductions | $ | 10,025 | $ | 8,461 | ||||
Accrued compensation | 7,334 | 5,829 | ||||||
Accrued professional fees | 3,546 | 2,049 | ||||||
Accrued clinical trial and clinical supply costs | 1,698 | 2,942 | ||||||
Accrued sales and marketing expenses | 1,051 | 1,017 | ||||||
Accrued interest expense | 646 | 639 | ||||||
Accrued product costs | 131 | 3,014 | ||||||
Other accrued liabilities | 1,422 | 1,536 | ||||||
$ | 25,853 | $ | 25,487 | |||||
Convertible_Senior_Secured_Not1
Convertible Senior Secured Notes (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Convertible Senior Secured Notes | |||||
Summary of issuance of Notes reflected in balance sheet | |||||
The table below summarizes activity related to the Notes from issuance on May 3, 2013 through March 31, 2015, in thousands: | |||||
Gross proceeds | $ | 90,000 | |||
Initial value of interest make-whole derivative reported as debt discount | (9,270 | ) | |||
Conversion option reported as debt discount and APIC | (22,336 | ) | |||
Conversion of debt to equity - principal | (53,941 | ) | |||
Conversion of debt to equity - accretion of debt discount | 17,926 | ||||
Accretion of debt discount | 4,568 | ||||
December 31, 2014 carrying value | 26,947 | ||||
Conversion of debt to equity - principal | (21,407 | ) | |||
Conversion of debt to equity - accretion of debt discount | 5,826 | ||||
Accretion of debt discount | 342 | ||||
March 31, 2015 carrying value, unaudited | $ | 11,708 | |||
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Share-Based Payments | |||||||||
Schedule of share-based compensation recognized related to the grant of employee and non-employee stock options, SARS and non-vested stock | Share-based compensation recognized related to the grant of employee and non-employee stock options, SAR, potential Employee Stock Purchase Plan (ESPP) awards and non-vested stock was as follows, in thousands: | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(unaudited) | |||||||||
Research and development | $ | 204 | $ | 184 | |||||
Selling, general and administrative | 697 | 483 | |||||||
Total | $ | 901 | $ | 667 | |||||
Summary of stock option and SAR activity | |||||||||
Number of | Weighted- | Weighted- | |||||||
Options | Average | Average | |||||||
Exercise Price | Remaining | ||||||||
Contractual | |||||||||
Term (in years) | |||||||||
Outstanding, December 31, 2014 | 2,080,749 | $ | 7.93 | 8.04 | |||||
Granted (unaudited) | 866,300 | $ | 9.22 | ||||||
Exercised (unaudited) | (68,896 | ) | $ | 2.13 | |||||
Forfeited or expired (unaudited) | (11,656 | ) | $ | 7.95 | |||||
Outstanding, March 31, 2015 (unaudited) | 2,866,497 | $ | 8.46 | 8.51 | |||||
As of December 31, 2014: | |||||||||
Vested and expected to vest | 2,041,026 | $ | 7.91 | 8.03 | |||||
Exercisable | 626,548 | $ | 6.4 | 6.91 | |||||
As of March 31, 2015: | |||||||||
Vested and expected to vest (unaudited) | 2,793,934 | $ | 8.45 | 8.49 | |||||
Exercisable (unaudited) | 913,327 | $ | 7.54 | 7.42 | |||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings per Share | ||||||||
Schedule of common stock equivalents excluded in the calculation of diluted loss per share | ||||||||
Three Months ended March 31, | ||||||||
2015 | 2014 | |||||||
(unaudited) | ||||||||
Shares underlying Convertible Senior Secured Notes | 6,071,894 | 7,556,001 | ||||||
Warrants to purchase common stock | 21,800 | 21,273 | ||||||
Stock options, stock appreciation rights, non-vested stock options, and ESPP awards | — | 356,364 | ||||||
Schedule of computation of basic and diluted net income per share | ||||||||
The following table sets forth the computation of basic and diluted net income per share for the three months ended March 31, 2015 and 2014, in thousands, except share and per share amounts: | ||||||||
Three Months ended March 31, | ||||||||
2015 | 2014 | |||||||
(unaudited) | ||||||||
Numerator, in thousands: | ||||||||
Net income (loss) used for calculation of basic and diluted EPS | $ | 917 | $ | (15,543 | ) | |||
Denominator: | ||||||||
Weighted average shares outstanding, basic | 44,563,299 | 41,129,055 | ||||||
Stock options, stock appreciation rights, non-vested stock options, and ESPP awards | 337,999 | — | ||||||
Total potential dilutive common shares | 337,999 | — | ||||||
Weighted average shares outstanding, diluted | 44,901,298 | 41,129,055 | ||||||
Net income (loss) per share, basic | $ | 0.02 | $ | (0.38 | ) | |||
Net income (loss) per share, diluted | $ | 0.02 | $ | (0.38 | ) | |||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies | |||||
Schedule of future minimum lease payments under non-cancelable operating leases | |||||
Future minimum lease payments under non-cancelable operating leases as of March 31, 2015 are as follows, in thousands: | |||||
Year ending December 31: | |||||
2015 (remaining) | $ | 1,311 | |||
2016 | 1,287 | ||||
2017 | 1,291 | ||||
2018 | 1,314 | ||||
Thereafter | 1,795 | ||||
$ | 6,998 | ||||
Organization_and_Business_Deta
Organization and Business (Details) | 3 Months Ended |
Mar. 31, 2015 | |
product | |
Organization and Business | |
Number of proprietary products in clinical development | 2 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2015 | |
segment | |
Basis of Presentation | |
Number of business segments | 1 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details 2) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Accounts Receivable, net | |||
Accounts receivable written off | $0 | $0 | |
Allowance for expected prompt-pay discounts | $3.40 | $4.10 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 3) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenue Recognition on Product Sales | ||
Milestone revenues recorded | $0 | $0 |
Sales return period | 12 months | |
Income Taxes | ||
Net income (loss) | $917,000 | ($15,543,000) |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Marketable securities | $39,026 | $37,940 |
Long term marketable securities | 27,315 | 19,816 |
Liabilities: | ||
Derivative liabilities | 2,691 | 6,564 |
Quoted Prices in Active Markets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 25,810 | 36,396 |
Total assets at fair value | 25,810 | 36,396 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Marketable securities | 39,026 | 37,940 |
Long term marketable securities | 27,315 | 19,816 |
Marketable securities - restricted (SERP) | 267 | 305 |
Total assets at fair value | 66,608 | 58,061 |
Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Derivative liabilities | 2,691 | 6,564 |
Total Carrying Value | ||
Assets: | ||
Cash and cash equivalents | 25,810 | 36,396 |
Marketable securities | 39,026 | 37,940 |
Long term marketable securities | 27,315 | 19,816 |
Marketable securities - restricted (SERP) | 267 | 305 |
Total assets at fair value | 92,418 | 94,457 |
Liabilities: | ||
Derivative liabilities | $2,691 | $6,564 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value of Financial Instruments | |
Interest rate (as a percent) | 7.50% |
Interest make-whole liability | |
Assumptions used to calculate fair value of common stock warrant liability using Monte-Carlo simulation with a Black-Scholes lattice model | |
Volatility (as a percent) | 45.00% |
Stock Price (in dollars per share) | $12.09 |
Credit Spread (as a percent) | 13.88% |
Term | 2 years 1 month 6 days |
Dividend Yield (as a percent) | 0.00% |
Warrant to purchase common stock | |
Assumptions used to calculate fair value of common stock warrant liability using Monte-Carlo simulation with a Black-Scholes lattice model | |
Volatility (as a percent) | 65.00% |
Stock Price (in dollars per share) | $12.09 |
Dividend Yield (as a percent) | 0.00% |
Warrant to purchase common stock | Minimum | |
Assumptions used to calculate fair value of common stock warrant liability using Monte-Carlo simulation with a Black-Scholes lattice model | |
Exercise Price (in dollars per share) | $4 |
Term | 5 years 9 months 18 days |
Risk-Free Rate (as a percent) | 1.50% |
Warrant to purchase common stock | Maximum | |
Assumptions used to calculate fair value of common stock warrant liability using Monte-Carlo simulation with a Black-Scholes lattice model | |
Exercise Price (in dollars per share) | $5 |
Term | 6 years 9 months 18 days |
Risk-Free Rate (as a percent) | 1.70% |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments (Details 3) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Warrant and Interest Make-Whole Liability | |||
Reduction due to conversion of debt to equity | $21,176,000 | $10,418,000 | |
Note Liability | |||
Carrying value of the convertible notes | 11,708,000 | 26,947,000 | |
Amount issued | 14,700,000 | ||
Estimated fair value of the convertible notes | 35,800,000 | ||
Significant Unobservable Inputs (Level 3) | Derivative Financial Instruments, Liabilities | |||
Warrant and Interest Make-Whole Liability | |||
Balance at the beginning of the period | 6,564,000 | ||
Changes in fair value of derivative liabilities included in earnings | 49,000 | ||
Reduction due to conversion of debt to equity | -3,922,000 | ||
Balance at the end of the period | $2,691,000 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments (Details 4) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value of Financial Instruments | ||
Corporate debt securities, Amortized Cost | $66,406 | $57,910 |
Corporate debt securities, Gross Unrealized Gains | 15 | 4 |
Corporate debt securities, Gross Unrealized Losses | -80 | -158 |
Corporate debt securities, Fair Value | 66,341 | 57,756 |
Contractual maturities of the unrestricted marketable securities held | ||
Less Than 1 Year | 39,026 | |
1-5 years | 27,315 | |
Corporate debt securities, Fair Value | $66,341 | $57,756 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventories | ||
Raw materials | $3,132 | $2,491 |
Work in process | 6,328 | 6,328 |
Finished goods | 4,242 | 4,622 |
Total inventories | $13,702 | $13,441 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Property and equipment | |||
Property and equipment, gross | $8,927,000 | $8,738,000 | |
Less accumulated depreciation and amortization | -6,446,000 | -6,290,000 | |
Property and equipment, net | 2,481,000 | 2,448,000 | |
Depreciation expense | 156,000 | 169,000 | |
Computer Equipment | |||
Property and equipment | |||
Property and equipment, gross | 932,000 | 862,000 | |
Software | |||
Property and equipment | |||
Property and equipment, gross | 314,000 | 254,000 | |
Lab Equipment and Furniture | |||
Property and equipment | |||
Property and equipment, gross | 5,235,000 | 5,194,000 | |
Leasehold Improvements | |||
Property and equipment | |||
Property and equipment, gross | $2,446,000 | $2,428,000 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Additional disclosures | |||
Amortization expense | $57,000 | $57,000 | |
Estimated annual aggregate amortization expense through December 31, 2015 | 229,000 | ||
Net book value of intangible assets | 7,839,000 | 5,434,000 | |
Purchased Patents | |||
Finite lived intangible assets disclosures | |||
Weighted-Average Life | 10 years | 10 years | |
Gross Carrying Amount | 2,292,000 | 2,292,000 | |
Accumulated Amortization | 2,125,000 | 2,067,000 | |
Oxtellar XR | |||
Finite lived intangible assets disclosures | |||
Number of U.S. patents issued | 4 | ||
Trokendi XR | |||
Finite lived intangible assets disclosures | |||
Number of U.S. patents issued | 6 | ||
Deferred Legal Fees | |||
Finite lived intangible assets disclosures | |||
Gross Carrying Amount | $7,672,000 | $5,209,000 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities | ||
Accrued sales deductions | $10,025 | $8,461 |
Accrued compensation | 7,334 | 5,829 |
Accrued professional fees | 3,546 | 2,049 |
Accrued clinical trial and clinical supply costs | 1,698 | 2,942 |
Accrued sales and marketing expenses | 1,051 | 1,017 |
Accrued interest expense | 646 | 639 |
Accrued product costs | 131 | 3,014 |
Other accrued liabilities | 1,422 | 1,536 |
Total | $25,853 | $25,487 |
Convertible_Senior_Secured_Not2
Convertible Senior Secured Notes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Details of Notes reflected in balance sheet | |||
Carrying value | $11,708 | $26,947 | |
Loss on extinguishment of debt | 2,134 | 1,693 | |
7.50% Convertible Senior Secured Notes due 2019 | |||
Details of Notes reflected in balance sheet | |||
Gross proceeds | 90,000 | ||
Initial value of interest make-whole derivative reported as debt discount | -9,270 | ||
Conversion option reported as debt discount and APIC | -22,336 | ||
Conversion of debt to equity - principal | -21,407 | -9,500 | -53,941 |
Conversion of debt to equity - accretion of debt discount | 5,826 | 17,926 | |
Accretion of debt discount | 342 | 4,568 | |
Carrying value | 11,708 | 26,947 | |
Shares of common stock issued in conversion of Notes | 4,000,000 | ||
Shares of common stock issued in settlement of the interest make-whole provision | 400,000 | ||
Loss on extinguishment of debt | $2,100 | $1,700 |
ShareBased_Payments_Details
Share-Based Payments (Details) (2012 Plan) | 3 Months Ended |
Mar. 31, 2015 | |
installment | |
Share-based payments | |
Maximum number of shares of common stock provided for issuance | 4,000,000 |
Stock Option | |
Share-based payments | |
Number of annual installments in which the awards would generally vest starting on the first anniversary of the date of grant | 4 |
Contractual term | 10 years |
ShareBased_Payments_Details_2
Share-Based Payments (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Payments | ||
Share-based compensation recognized | $901 | $667 |
Research and Development | ||
Share-based Payments | ||
Share-based compensation recognized | 204 | 184 |
Selling, General and Administrative | ||
Share-based Payments | ||
Share-based compensation recognized | $697 | $483 |
ShareBased_Payments_Details_3
Share-Based Payments (Details 3) (Stock Option Stock Appreciation Rights, USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Stock Option Stock Appreciation Rights | ||
Number of Options and SAR | ||
Outstanding at the beginning of the period (in shares) | 2,080,749 | |
Granted (in shares) | 866,300 | |
Exercised (in shares) | -68,896 | |
Forfeited or expired (in shares) | -11,656 | |
Outstanding at the end of the period (in shares) | 2,866,497 | 2,080,749 |
Vested and expected to vest (in shares) | 2,793,934 | 2,041,026 |
Exercisable (in shares) | 913,327 | 626,548 |
Weighted-Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $7.93 | |
Granted (in dollars per share) | $9.22 | |
Exercised (in dollars per share) | $2.13 | |
Forfeited or expired (in dollars per share) | $7.95 | |
Outstanding at the end of the period (in dollars per share) | $8.46 | $7.93 |
Vested and expected to vest (in dollars per share) | $8.45 | $7.91 |
Exercisable (in dollars per share) | $7.54 | $6.40 |
Weighted-Average Remaining Contractual Term | ||
Outstanding at the end of the period | 8 years 6 months 4 days | 8 years 15 days |
Vested and expected to vest | 8 years 5 months 27 days | 8 years 11 days |
Exercisable | 7 years 5 months 1 day | 6 years 10 months 28 days |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator, in thousands | ||
Net income (loss) used for calculation of basic and diluted EPS | $917 | ($15,543) |
Denominator | ||
Weighted average shares outstanding, basic | 44,563,299 | 41,129,055 |
Effect of dilutive potential common shares | ||
Stock options, stock appreciation rights, non-vested stock options, and ESPP awards | 337,999 | |
Total potential dilutive common shares | 337,999 | |
Weighted average shares outstanding, diluted | 44,901,298 | 41,129,055 |
Net income (loss) per share, basic | $0.02 | ($0.38) |
Net income (loss) per share, diluted | $0.02 | ($0.38) |
7.50% Convertible Senior Secured Notes due 2019 | ||
Loss Per Share | ||
Common stock equivalents excluded in the calculation of diluted loss per share | 6,071,894 | 7,556,001 |
Warrant to purchase common stock | ||
Loss Per Share | ||
Common stock equivalents excluded in the calculation of diluted loss per share | 21,800 | 21,273 |
Stock Options, Stock Appreciation Rights, Non-Vested Stock Options and ESPP Awards | ||
Loss Per Share | ||
Common stock equivalents excluded in the calculation of diluted loss per share | 356,364 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Commitments and Contingencies | ||
Additional period for which the entity may elect to extend the term of the lease | 5 years | |
Additional tenant improvement allowance | $2,100,000 | |
Tenant improvement allowance utilized and included in fixed assets and deferred rent | 0 | 0 |
Amount available for tenant improvements | 700,000 | |
Rent expense | 700,000 | 500,000 |
Future minimum lease payments under non-cancelable operating leases | ||
2015 (remaining) | 1,311,000 | |
2016 | 1,287,000 | |
2017 | 1,291,000 | |
2018 | 1,314,000 | |
Thereafter | 1,795,000 | |
Total | $6,998,000 |
Subsequent_Events_Details
Subsequent Events (Details) (7.50% Convertible Senior Secured Notes due 2019, USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | 6-May-15 |
Subsequent events | ||||
Principal amount of the Notes converted | $21,407 | $9,500 | $53,941 | |
Shares of common stock issued in conversion of Notes and accrued interest thereon | 4,000,000 | |||
Shares of common stock issued in settlement of the interest make-whole provision | 400,000 | |||
Subsequent Event | ||||
Subsequent events | ||||
Principal amount of the Notes converted | $1,200 | |||
Shares of common stock issued in conversion of Notes and accrued interest thereon | 200,000 | |||
Shares of common stock issued in settlement of the interest make-whole provision | 20,000 |