Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 23, 2018 | Jun. 30, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | OSIRIS THERAPEUTICS, INC. | ||
Entity Central Index Key | 1,360,886 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 105,750,650 | ||
Entity Common Stock, Shares Outstanding | 34,525,886 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Current Assets | |||||||||||||
Cash and cash equivalents | $ 3,081 | $ 3,234 | $ 1,625 | $ 1,161 | $ 2,833 | $ 3,287 | $ 3,551 | $ 5,516 | $ 9,144 | $ 17,765 | $ 2,241 | $ 3,800 | $ 2,208 |
Short-term investments | 24,807 | 28,540 | 20,538 | 21,427 | 23,829 | 25,999 | 26,662 | 26,583 | 24,809 | 22,517 | 36,420 | 35,257 | |
Trade receivables, net | 26,053 | 22,028 | 23,414 | 23,014 | 23,248 | 20,928 | 20,125 | 18,850 | 18,799 | 17,901 | 16,190 | 13,690 | |
Inventory, net | 11,278 | 12,414 | 11,633 | 11,199 | 11,366 | 10,344 | 9,785 | 10,371 | 9,577 | 9,472 | 9,350 | 9,267 | |
Insurance receivable | 4,788 | 4,788 | 4,788 | 4,788 | |||||||||
Prepaid expenses and other current assets | 2,920 | 3,542 | 3,735 | 3,568 | 3,221 | 4,206 | 4,036 | 4,219 | 4,321 | 5,312 | 5,467 | 11,289 | |
Total current assets | 72,927 | 74,546 | 65,733 | 65,157 | 64,497 | 64,764 | 64,159 | 65,539 | 66,650 | 76,057 | 77,968 | 81,465 | |
Property and equipment, net | 3,587 | 2,467 | 2,242 | 2,281 | 2,390 | 2,478 | 2,066 | 2,113 | 2,077 | 2,070 | 2,141 | 2,176 | |
Insurance receivable | 4,788 | 4,788 | 4,788 | 4,788 | 4,788 | ||||||||
Other assets | 1,608 | 103 | 137 | 137 | 142 | 164 | 152 | 152 | 151 | 95 | 95 | 95 | |
Total assets | 78,122 | 77,116 | 68,112 | 67,575 | 71,817 | 72,194 | 71,165 | 72,592 | 73,666 | 78,222 | 80,204 | 83,736 | |
Current liabilities | |||||||||||||
Accounts payable | 5,269 | 5,014 | 3,713 | 3,936 | 5,559 | 5,977 | 5,543 | 4,515 | 4,749 | 4,224 | 2,575 | 4,437 | |
Accrued liabilities | 9,399 | 9,991 | 10,352 | 9,766 | 11,001 | 9,303 | 10,508 | 9,454 | 7,321 | 8,370 | 7,547 | 5,787 | |
Accrued shareholder litigation | 18,500 | 18,500 | 18,500 | 18,500 | |||||||||
Other current liabilities | 1,934 | 2,066 | 1,878 | 1,960 | 1,816 | 1,850 | 1,650 | 1,663 | 1,791 | 1,517 | 1,618 | 1,398 | |
Total current liabilities | 35,102 | 35,571 | 34,443 | 34,162 | 18,376 | 17,130 | 17,701 | 15,632 | 13,861 | 21,001 | 11,740 | 11,622 | |
Accrued shareholder litigation | 18,500 | 18,500 | 18,500 | 18,500 | 18,500 | ||||||||
Other long term liabilities | 1,626 | 1,953 | 1,817 | 2,134 | 2,440 | 2,751 | 2,623 | 2,940 | 4,763 | 3,588 | 3,910 | 4,228 | |
Total liabilities | 36,728 | 37,524 | 36,260 | 36,296 | 39,316 | 38,381 | 38,824 | 37,072 | 37,124 | 24,589 | 15,650 | 15,850 | |
Equity | |||||||||||||
Common stock, $.001 par value, 90,000 shares authorized, 34,526, 34,501 and 34,495 shares issued and outstanding at December 31, 2017, 2016 and 2015, respectively | 35 | 35 | 35 | 35 | 35 | 35 | 35 | 35 | 35 | 35 | 35 | 35 | |
Additional paid-in-capital | 283,905 | 283,856 | 283,854 | 283,895 | 283,678 | 283,515 | 283,340 | 283,320 | 284,024 | 283,049 | 289,426 | 288,336 | |
Accumulated other comprehensive loss | (208) | (55) | (35) | 109 | (89) | 163 | 192 | 83 | (143) | (94) | (201) | (143) | |
Accumulated deficit | (242,338) | (244,244) | (252,002) | (252,760) | (251,123) | (249,900) | (251,226) | (247,918) | (247,374) | (229,357) | (224,706) | (220,342) | |
Total equity | 41,394 | 39,592 | 31,852 | 31,279 | 32,501 | 33,813 | 32,341 | 35,520 | 36,542 | 53,633 | 64,554 | 67,886 | $ 75,681 |
Total liabilities and equity | $ 78,122 | $ 77,116 | $ 68,112 | $ 67,575 | $ 71,817 | $ 72,194 | $ 71,165 | $ 72,592 | $ 73,666 | $ 78,222 | $ 80,204 | $ 83,736 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
CONSOLIDATED BALANCE SHEETS | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 90,000 | 90,000 | 90,000 |
Common stock, issued | 34,526 | 34,501 | 34,495 |
Common stock, outstanding | 34,526 | 34,501 | 34,495 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||
Revenue | $ 32,576 | $ 29,806 | $ 29,151 | $ 26,981 | $ 29,090 | $ 29,506 | $ 27,327 | $ 23,451 | $ 24,806 | $ 23,562 | $ 19,077 | $ 12,262 | $ 56,132 | $ 50,778 | $ 31,339 | $ 85,938 | $ 80,284 | $ 54,901 | $ 118,514 | $ 109,374 | $ 79,707 |
Cost of revenue | 9,276 | 7,926 | 7,668 | 7,811 | 8,192 | 7,740 | 8,284 | 6,517 | 8,048 | 7,901 | 5,438 | 5,633 | 15,479 | 14,801 | 11,071 | 23,405 | 22,541 | 18,972 | 32,681 | 30,733 | 27,020 |
Gross profit | 23,300 | 21,880 | 21,483 | 19,170 | 20,898 | 21,766 | 19,043 | 16,934 | 16,758 | 15,661 | 13,639 | 6,629 | 40,653 | 35,977 | 20,268 | 62,533 | 57,743 | 35,929 | 85,833 | 78,641 | 52,687 |
Operating expenses: | |||||||||||||||||||||
Research and development | 1,086 | 909 | 924 | 1,219 | 1,452 | 1,853 | 1,524 | 1,495 | 1,530 | 1,237 | 1,097 | 1,003 | 2,143 | 3,019 | 2,100 | 3,052 | 4,872 | 3,337 | 4,138 | 6,324 | 4,867 |
Sales and marketing | 17,289 | 14,825 | 14,698 | 14,733 | 15,394 | 15,346 | 14,742 | 13,575 | 14,547 | 15,451 | 14,243 | 12,386 | 29,431 | 28,317 | 26,629 | 44,256 | 43,663 | 42,080 | 61,545 | 59,057 | 56,627 |
General and administrative | 5,219 | 6,634 | 5,427 | 4,859 | 5,385 | 3,264 | 6,254 | 2,453 | 2,362 | 2,424 | 2,481 | 2,231 | 10,286 | 8,707 | 4,712 | 16,920 | 11,971 | 7,136 | 22,139 | 17,356 | 9,498 |
Settlement of SEC and shareholder actions | 15,212 | 15,212 | |||||||||||||||||||
Total operating expenses | 23,594 | 22,368 | 21,049 | 20,811 | 22,231 | 20,463 | 22,520 | 17,523 | 33,651 | 19,112 | 17,821 | 15,620 | 41,860 | 40,043 | 33,441 | 64,228 | 60,506 | 52,553 | 87,822 | 82,737 | 86,204 |
Income (loss) from continuing operations | (294) | (488) | 434 | (1,641) | (1,333) | 1,303 | (3,477) | (589) | (16,893) | (3,451) | (4,182) | (8,991) | (1,207) | (4,066) | (13,173) | (1,695) | (2,763) | (16,624) | (1,989) | (4,096) | (33,517) |
Other income (expense), net | 726 | (1,763) | 356 | 36 | 194 | 83 | 74 | 66 | (18,015) | (4,626) | (4,340) | (8,229) | 392 | 140 | (12,569) | (1,371) | 223 | (17,195) | (645) | 417 | (1,693) |
Income (loss) before income taxes from continuing operations | 432 | (2,251) | 790 | (1,605) | (1,139) | 1,386 | (3,403) | (523) | (815) | (3,926) | (3,066) | (2,540) | (2,634) | (3,679) | (35,210) | ||||||
Income tax benefit (expense) | 1,264 | 198 | (32) | (32) | (84) | (60) | 95 | (21) | (2) | (25) | (24) | (493) | (64) | 74 | (517) | 134 | 14 | (542) | 1,398 | (70) | (544) |
Net loss from continuing operations | 1,696 | (2,053) | 758 | (1,637) | (879) | (2,932) | (1,236) | (3,749) | (35,754) | ||||||||||||
Discontinued operations, net of tax | 210 | 9,811 | 9,811 | 10,021 | |||||||||||||||||
Net income (loss) | 1,906 | 7,758 | 758 | (1,637) | (1,223) | 1,326 | (3,308) | (544) | (18,017) | (4,651) | (4,364) | (8,722) | (879) | (3,852) | (13,086) | 6,879 | (2,526) | (17,737) | 8,785 | (3,749) | (35,754) |
Other comprehensive income (loss) | |||||||||||||||||||||
Unrealized (loss) gain on investments | (152) | (21) | (144) | 198 | (252) | (29) | 109 | 226 | (49) | 107 | (58) | (89) | 54 | 335 | (147) | 33 | 306 | (40) | (119) | 54 | (89) |
Comprehensive income (loss) | $ 1,754 | $ 7,737 | $ 614 | $ (1,439) | $ (1,475) | $ 1,297 | $ (3,199) | $ (318) | $ (18,066) | $ (4,544) | $ (4,422) | $ (8,811) | $ (825) | $ (3,517) | $ (13,233) | $ 6,912 | $ (2,220) | $ (17,777) | $ 8,666 | $ (3,695) | $ (35,843) |
Net loss per share from continuing operations: | |||||||||||||||||||||
Continuing operations basic (in dollars per share) | $ 0.05 | $ (0.06) | $ 0.02 | $ (0.05) | $ (0.03) | $ (0.08) | $ (0.04) | $ (0.11) | $ (1.04) | ||||||||||||
Continuing operations diluted (in dollars per share) | 0.05 | (0.06) | 0.02 | (0.05) | (0.03) | (0.08) | (0.04) | (0.11) | (1.04) | ||||||||||||
Net income per share from discontinued operations: | |||||||||||||||||||||
Discontinued operations basic (in dollars per share) | 0.01 | 0.28 | 0.28 | 0.29 | |||||||||||||||||
Discontinued operations diluted (in dollars per share) | 0.01 | 0.28 | 0.28 | 0.29 | |||||||||||||||||
Net income (loss) per share: | |||||||||||||||||||||
Basic (in dollars per share) | 0.06 | 0.22 | 0.02 | (0.05) | (0.03) | 0.20 | 0.25 | (0.11) | (1.04) | ||||||||||||
Diluted (in dollars per share) | $ 0.06 | $ 0.22 | $ 0.02 | $ (0.05) | $ (0.03) | $ 0.20 | $ 0.25 | $ (0.11) | $ (1.04) | ||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||
Basic (in shares) | 34,526 | 34,526 | 34,526 | 34,520 | 34,501 | 34,501 | 34,500 | 34,495 | 34,523 | 34,498 | 34,524 | 34,499 | 34,524 | 34,499 | 34,422 | ||||||
Diluted (in shares) | 34,501 | 34,501 | 34,500 | 34,495 | 34,498 | 34,499 | 34,525 | 34,499 | 34,422 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | Total |
Balance at Dec. 31, 2014 | $ 35 | $ 287,320 | $ (54) | $ (211,620) | $ 75,681 |
Balance (in shares) at Dec. 31, 2014 | 34,345,688 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | (89) | ||||
Net income (loss) | (8,722) | ||||
Balance at Mar. 31, 2015 | 67,886 | ||||
Balance at Dec. 31, 2014 | $ 35 | 287,320 | (54) | (211,620) | 75,681 |
Balance (in shares) at Dec. 31, 2014 | 34,345,688 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | (147) | ||||
Net income (loss) | (13,086) | ||||
Balance at Jun. 30, 2015 | 64,554 | ||||
Balance at Dec. 31, 2014 | $ 35 | 287,320 | (54) | (211,620) | 75,681 |
Balance (in shares) at Dec. 31, 2014 | 34,345,688 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | (40) | ||||
Net income (loss) | (17,737) | ||||
Balance at Sep. 30, 2015 | 53,633 | ||||
Balance at Dec. 31, 2014 | $ 35 | 287,320 | (54) | (211,620) | 75,681 |
Balance (in shares) at Dec. 31, 2014 | 34,345,688 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued upon exercise of stock options, net of shares acquired | 781 | 781 | |||
Stock issued upon exercise of stock options, net of shares acquired (in shares ) | 149,647 | ||||
Stock based compensation (benefit) | 2,814 | 2,814 | |||
Common stock special dividend | (6,891) | (6,891) | |||
Unrealized loss on available for sale investments | (89) | (89) | |||
Net income (loss) | (35,754) | (35,754) | |||
Balance at Dec. 31, 2015 | $ 35 | 284,024 | (143) | (247,374) | $ 36,542 |
Balance (in shares) at Dec. 31, 2015 | 34,495,335 | 34,495,000 | |||
Balance at Mar. 31, 2015 | $ 67,886 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | (58) | ||||
Net income (loss) | (4,364) | ||||
Balance at Jun. 30, 2015 | 64,554 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | 107 | ||||
Net income (loss) | (4,651) | ||||
Balance at Sep. 30, 2015 | 53,633 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | (49) | ||||
Net income (loss) | (18,017) | ||||
Balance at Dec. 31, 2015 | $ 35 | 284,024 | (143) | (247,374) | $ 36,542 |
Balance (in shares) at Dec. 31, 2015 | 34,495,335 | 34,495,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | $ 226 | ||||
Net income (loss) | (544) | ||||
Balance at Mar. 31, 2016 | 35,520 | ||||
Balance at Dec. 31, 2015 | $ 35 | 284,024 | (143) | (247,374) | $ 36,542 |
Balance (in shares) at Dec. 31, 2015 | 34,495,335 | 34,495,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | $ 335 | ||||
Net income (loss) | (3,852) | ||||
Balance at Jun. 30, 2016 | 32,341 | ||||
Balance at Dec. 31, 2015 | $ 35 | 284,024 | (143) | (247,374) | $ 36,542 |
Balance (in shares) at Dec. 31, 2015 | 34,495,335 | 34,495,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | $ 306 | ||||
Net income (loss) | (2,526) | ||||
Balance at Sep. 30, 2016 | 33,813 | ||||
Balance at Dec. 31, 2015 | $ 35 | 284,024 | (143) | (247,374) | $ 36,542 |
Balance (in shares) at Dec. 31, 2015 | 34,495,335 | 34,495,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued upon exercise of stock options, net of shares acquired | (5) | $ (5) | |||
Stock issued upon exercise of stock options, net of shares acquired (in shares ) | 5,551 | ||||
Stock based compensation (benefit) | (341) | (341) | |||
Unrealized loss on available for sale investments | 54 | 54 | |||
Net income (loss) | (3,749) | (3,749) | |||
Balance at Dec. 31, 2016 | $ 35 | 283,678 | (89) | (251,123) | $ 32,501 |
Balance (in shares) at Dec. 31, 2016 | 34,500,886 | 34,501,000 | |||
Balance at Mar. 31, 2016 | $ 35,520 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | 109 | ||||
Net income (loss) | (3,308) | ||||
Balance at Jun. 30, 2016 | 32,341 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | (29) | ||||
Net income (loss) | 1,326 | ||||
Balance at Sep. 30, 2016 | 33,813 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | (252) | ||||
Net income (loss) | (1,223) | ||||
Balance at Dec. 31, 2016 | $ 35 | 283,678 | (89) | (251,123) | $ 32,501 |
Balance (in shares) at Dec. 31, 2016 | 34,500,886 | 34,501,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | $ 198 | ||||
Net income (loss) | (1,637) | ||||
Balance at Mar. 31, 2017 | 31,279 | ||||
Balance at Dec. 31, 2016 | $ 35 | 283,678 | (89) | (251,123) | $ 32,501 |
Balance (in shares) at Dec. 31, 2016 | 34,500,886 | 34,501,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | $ 54 | ||||
Net income (loss) | (879) | ||||
Balance at Jun. 30, 2017 | 31,852 | ||||
Balance at Dec. 31, 2016 | $ 35 | 283,678 | (89) | (251,123) | $ 32,501 |
Balance (in shares) at Dec. 31, 2016 | 34,500,886 | 34,501,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | $ 33 | ||||
Net income (loss) | 6,879 | ||||
Balance at Sep. 30, 2017 | 39,592 | ||||
Balance at Dec. 31, 2016 | $ 35 | 283,678 | (89) | (251,123) | $ 32,501 |
Balance (in shares) at Dec. 31, 2016 | 34,500,886 | 34,501,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued upon exercise of stock options, net of shares acquired | 128 | $ 128 | |||
Stock issued upon exercise of stock options, net of shares acquired (in shares ) | 25,000 | ||||
Stock based compensation (benefit) | 99 | 99 | |||
Unrealized loss on available for sale investments | (119) | (119) | |||
Net income (loss) | 8,785 | 8,785 | |||
Balance at Dec. 31, 2017 | $ 35 | 283,905 | (208) | (242,338) | $ 41,394 |
Balance (in shares) at Dec. 31, 2017 | 34,525,886 | 34,526,000 | |||
Balance at Mar. 31, 2017 | $ 31,279 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | (144) | ||||
Net income (loss) | 758 | ||||
Balance at Jun. 30, 2017 | 31,852 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | (21) | ||||
Net income (loss) | 7,758 | ||||
Balance at Sep. 30, 2017 | 39,592 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unrealized loss on available for sale investments | (152) | ||||
Net income (loss) | 1,906 | ||||
Balance at Dec. 31, 2017 | $ 35 | $ 283,905 | $ (208) | $ (242,338) | $ 41,394 |
Balance (in shares) at Dec. 31, 2017 | 34,525,886 | 34,526,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 8,785 | $ (3,749) | $ (35,754) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Receipt of Mesoblast common stock | (10,000) | ||
Settlement of SEC and shareholder actions, net of insurance | (1,500) | 15,212 | |
Loss (gain) on disposal of fixed assets | 123 | 44 | (106) |
Realized loss on investments | 2,028 | 8 | 2,502 |
Depreciation | 688 | 993 | 1,035 |
Stock-based compensation expense (benefit) | 99 | (341) | 2,814 |
Changes in operating assets and liabilities | |||
Trade receivables, net | (2,805) | (4,449) | (5,426) |
Inventory, net | 88 | (1,789) | 247 |
Prepaid expenses, and other assets | (1,641) | 782 | 4,095 |
Accounts payable, accrued expenses, and other liabilities | (1,088) | 2,263 | 4,402 |
Net cash used in operating activities | (5,223) | (6,238) | (10,979) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of property and equipment, net | (2,008) | (1,350) | (927) |
Proceeds from sale of investments | 32,857 | 14,485 | 120,203 |
Purchases of investments | (25,506) | (13,133) | (101,384) |
Proceeds from Mesoblast guaranteed payment | 6,180 | ||
Net cash provided by (used in) investing activities | 5,343 | 2 | 24,072 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from the exercise of options to purchase common stock | 128 | 27 | 987 |
Repurchases of common stock | (32) | (206) | |
Payment of dividend | (6,891) | ||
Other | (70) | (47) | |
Net cash provided by (used in) financing activities | 128 | (75) | (6,157) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 248 | (6,311) | 6,936 |
Cash and cash equivalents, beginning of period | 2,833 | 9,144 | 2,208 |
Cash and cash equivalents, end of period | 3,081 | 2,833 | 9,144 |
Cash paid during the period for: | |||
Income taxes paid, net of refunds | $ 134 | $ 93 | $ 2,453 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2017 | |
Description of Business | |
Description of Business | 1. Description of Business Osiris Therapeutics, Inc. ("we", "us", "our", "Osiris", or the "Company") researches, develops, manufactures and commercializes regenerative medicine products intended to improve the health and lives of patients and lower overall healthcare costs. We are headquartered in Columbia, Maryland. We continue to advance our research and development ("R&D") by focusing on innovation in regenerative medicine, including the development of bioengineered stem cell and tissue-based products. We have achieved commercial success with products in orthopedics, sports medicine and wound care. We operate in one segment and are focused on using unique tissue preservation technologies to develop viable human tissue products designed to improve wound closure and surgical outcomes for patients and physicians over standard of care alone. We launched Grafix in 2010, Ovation in 2011 and discontinued it in 2014, Cartiform in 2012, BIO 4 (previously branded as OvationOS) in 2014 and Stravix in late 2015. Sales of these products have increased with the expansion of our direct sales force and distribution network and the broadening of our reimbursement coverage. Our direct sales force focuses exclusively on Grafix and Stravix sales. We entered into two exclusive distribution agreements in the fourth quarter of 2014, with a subsidiary of Stryker Corporation ("Stryker") for the marketing and distribution of BIO 4 , and with Arthrex, Inc. ("Arthrex") for the marketing and distribution of Cartiform. The first sales under these agreements began in 2015. We are a fully integrated company, having developed capabilities in research and development, manufacturing, marketing and sales of our products. We are focused on the long-term commercial growth of the Company through the delivery of differentiated products for use across multiple fields of medicine with clear value propositions to patients, providers and third-party payors. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Osiris Therapeutics International GmbH, which was formed in 2016. All intercompany transactions have been eliminated in consolidation. Osiris Therapeutics International GmbH does not have any operations. Use of Estimates We make certain estimates and assumptions in preparing our consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). These estimates and assumptions affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statement and the reported amounts of revenue and expenses for the period presented. Actual results may differ from these estimates. Cash and Cash Equivalents Cash and cash equivalents includes all financial instruments purchased with an initial maturity of three months or less when purchased. Investments All of the Company's investments are classified as "available-for-sale" and are carried at fair value, with the exception of the Mesoblast Limited common stock, which was classified as a trading security (see Note 4). Securities which have been classified as Level 1 are measured using quoted market prices in active markets for identical assets or liabilities while those which have been classified as Level 2 are measured using quoted prices for identical assets and liabilities in markets that are not active (see Note 4). The Company's policy is to classify all investments with contractual maturities within one year as current. Investment income is recognized when earned and reported net of investment expenses. Net unrealized holding gains or losses are excluded from earnings and are reported as "Accumulated other comprehensive income (loss)" in the accompanying consolidated balance sheets and consolidated statements of comprehensive income (loss) until realized, unless the losses are deemed to be other-than-temporary. Realized gains or losses, including any provision for other-than-temporary declines in value, are included in "Other income (expense)" in the accompanying consolidated statements of comprehensive income (loss). If a debt security is in an unrealized loss position and the Company has the intent to sell the debt security, or it is more likely than not that the Company will have to sell the debt security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to other-than-temporary impairment losses recognized in income in the consolidated statements of comprehensive income (loss). For impaired debt securities that the Company does not intend to sell or it is more likely than not that the Company will not have to sell such securities, but the Company expects that it will not fully recover the amortized cost basis, the credit component of the other-than-temporary impairment is recognized in other-than-temporary impairment losses recognized in income in the consolidated statements of comprehensive income (loss) and the non-credit component of the other-than-temporary impairment is recognized in other comprehensive income (loss). The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the debt security. The net present value is calculated by discounting the best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Cash flow estimates are driven by assumptions regarding probability of default, including changes in credit ratings, and estimates regarding timing and amount of recoveries associated with a default. Furthermore, unrealized losses entirely caused by non-credit related factors related to debt securities for which the Company expects to fully recover the amortized cost basis continue to be recognized in accumulated other comprehensive income (loss). As of December 31, 2015, 2016 and 2017, there were no unrealized losses that the Company believed to be other-than-temporary. Trade Receivables, net Trade receivables, net are reported net of an allowance for doubtful accounts. We consider receivables outstanding longer than the time specified in the respective customer's contract to be past due. In making the determination of the appropriate allowance for doubtful accounts, management considers prior experience with customers, analysis of accounts receivable aging reports, changes in customer payment patterns, and historical write-offs. Inventory, net Inventory, net consists of raw materials, products in process, finished goods available for sale and products held by customers under consignment sales arrangements. We determine our inventory values using the first-in, first-out method. The Company periodically reviews its quantities of inventories on hand and compares these amounts to the expected usage of each particular product. The Company records as a charge to Cost of revenue any amounts required to reduce the carrying value of inventories to net realizable value. Inventory excludes units that we anticipate distributing for clinical evaluation. Property and Equipment, net Property and equipment, net are valued at cost less accumulated depreciation. Depreciation is recognized on a straight-line basis over the estimated useful lives of the related assets and is allocated between cost of sales and selling, general and administrative expenses. Maintenance and repairs, which do not improve or extend the life of the respective assets, are charged to expense as incurred. Assets recorded under capital leases are included in property and equipment and are amortized using the straight-line method over the shorter of the estimated useful lives of the assets or the lease term and is recorded in depreciation expense in the consolidated statements of comprehensive income (loss). We review long-lived assets, which consist solely of property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable based on the criteria for accounting for the impairment or disposal of long-lived assets under Accounting Standard Code ("ASC") Topic 360, Property, Plant and Equipment . These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans, or changes in anticipated future cash flows. If an impairment indicator is present, we evaluate recoverability by a comparison of the carrying amount of the assets group to future undiscounted net cash flows expected to be generated by the assets group. Assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of the cash flows generated by other asset groups. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, an impairment loss is recognized for the difference between the fair value and carrying value of assets within the group. Fair value is generally determined by estimates of discounted cash flows. The discount rate used in any estimate of discounted cash flows would be the rate required for a similar investment of like risk. There were no impairment losses recognized during the years ended December 31, 2017, 2016 or 2015. Accrued liabilities As of December 31, 2017, 2016 and 2015, accrued liabilities consisted of: December 31, (in $000's) 2017 2016 2015 Payroll and related $ $ $ Commissions Accounting and audit fees Lease liabilities SEC action(1) — — Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Included as a long-term liability as of December 31, 2015. (See Note 13). Revenue Recognition We recognize revenue from sales of our products when title and the risk of loss pass to the customer, persuasive evidence of an arrangement exists, sales amounts are fixed or determinable and collectability is reasonably assured. In situations where collection of receivables is not reasonably assured, we recognize revenue upon the receipt of cash. Our policy is to recognize revenue when title to the product, ownership and risk of loss transfer to the customer, which is either the date of receipt by the customer or when we receive appropriate notification that the product has been used or implanted. A provision for estimated returns, discounts, rebates and other incentives is recorded as a reduction of revenues in the same period that the revenue is recognized. We sell our products through our internal direct sales force and our distributor network. Our distributors typically act as our selling agents, selling our products to end-use (clinical provider) customers in exchange for earning sales commissions and administrative support fees. Revenue from sales to distributors who act as agents to Osiris is recorded at the sales price to the end-use customer, and the commission expense and administrative support fees paid to the distributor are recorded as sales and marketing expenses. At times, we enter into revenue arrangements that include multiple elements, including exclusivity provisions, participation in joint steering committees, as well as sales of our products and provisioning of various other services. We evaluate each deliverable to determine whether it represents a separate unit of accounting based on the following criteria: (i) if the delivered item has value to the customer on a standalone basis, and (ii) if the contract includes a general right of return relative to the delivered item, and delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the vendor. Revenue is then allocated to the units of accounting based on an estimate of each unit's relative selling price and is recognized based on the underlying characteristics of each element. In December 2014, we entered into exclusive distribution agreements with a subsidiary of Stryker Corporation for the marketing and distribution of BIO 4 , previously branded by the Company as OvationOS, our viable bone matrix allograft. Pursuant to the agreement, Stryker has been granted worldwide distribution rights to the product and any improvements, for all surgical applications. We are responsible for supply, manufacturing, inventory management, shipments to customers, continued research and product improvement activities. We maintain all inventory and collection risk and we control the product. We recognize revenue as principal in the arrangement, for the amounts charged to end-use customers for the allografts. Commissions and administrative support fees paid to Stryker are accounted for as selling expenses, as Stryker is acting as an outside sales and marketing agent for the Company. We received an up-front payment of $5.0 million from Stryker in 2015, related to its initial exclusivity, and are entitled to additional fees upon any exercise by Stryker of its right to extend the initial term, whether on an exclusive or non-exclusive basis. The exclusivity fee is recognized as a reduction of commission expense over the four-year term of the agreement. At December 31, 2017, 2016 and 2015, we had remaining balances of $1.4 million, $2.5 million, and $3.8 million, respectively, related to the exclusivity payment of which $1.25 million was classified as other current liabilities in the consolidated balance sheets at the end of each year. The long-term portion of the exclusivity payment is included in other long-term liabilities in the consolidated balance sheets at the end of each year. In October 2014, we entered into an exclusive marketing and sales representative agreement for our cartilage product, Cartiform, with Arthrex. The agreement provides Arthrex with exclusive commercial distribution rights to Cartiform beginning in 2015. We are responsible for manufacturing, continued research and product improvement activities. Pursuant to the agreement, Arthrex is entitled to a certain commission on Cartiform sales. We maintain all inventory and collection risk. We recognize revenue as principal in the agreement, for the amounts charged to end-use customers for the allografts. We account for the commission payment to Arthrex as sales and marketing expense, as Arthrex is acting as outside sales and marketing agent for the Company. Research and Development Costs R&D expenditures are charged to expense as incurred. R&D expenses include the costs of certain personnel, preclinical studies, clinical trials, regulatory affairs, biostatistical data analysis, and manufacturing costs for development of drug materials for use in clinical trials. We accrue R&D expenses for activity as incurred during the fiscal year and prior to receiving invoices from clinical sites and third party clinical research organizations. Share-Based Compensation We account for share-based employee compensation under the fair value recognition and measurement provisions in accordance with applicable accounting standards, which require all share-based payments to employees, including grants of stock options, to be measured based on the grant date fair value of the awards, with the resulting expense generally recognized on an accelerated basis over the period during which the employee is required to perform service in exchange for the award. Income Taxes We use the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted. The measurement of a deferred tax asset is reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. We use a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. We recognize interest and penalties accrued on any unrecognized tax exposures as a component of income tax expense. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted into law and the new legislation contains certain key tax provisions that affected the Company, including a reduction of the corporate income tax rate to 21% effective January 1, 2018, the repeal of Alternative Minimum Tax ("AMT") (and changes to the utilization of AMT credit carryforwards that exist at December 31, 2017), among others. We are required to recognize the effect of the tax law changes in the period of enactment, such as re-measuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities. In December 2017, the Securities and Exchange Commission (the "SEC") issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the Tax Act was passed late in the fourth quarter of 2017, and ongoing guidance and accounting interpretation is expected over the next 12 months, we consider the deferred tax re-measurements and other items to be incomplete due to the forthcoming guidance and our ongoing analysis of final year-end data and tax positions. We expect to complete our analysis within the measurement period in accordance with SEC Staff Accounting Bulletin No. 118, although we do not expect there to be any adjustment to the income tax expense on our statements of operations during the measurement period. See Note 12 for additional information. Concentration of Risk We maintain cash with high credit quality financial institutions and do not believe we are exposed to a significant credit risk, although such balances exceed federally insured limits. We also invest excess cash in investment-grade securities, generally with average maturities of approximately two years. Accounting Pronouncements Adopted In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-15, " Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" ("ASU 2014-15"), that requires management to evaluate whether there are conditions and events that raise substantial doubt about the Company's ability to continue as a going concern within one year after the financial statements are issued or available to be issued on both an interim and annual basis. Management is required to provide certain footnote disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the Company's ability to continue as a going concern. ASU 2014-15 was effective for all entities for the annual period ending after December 15, 2016, and for annual and interim periods thereafter, with early adoption permitted. We adopted ASU 2014-15 as of the annual period ended December 31, 2016, and its adoption did not have any significant impact on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory . This standard replaces the lower of cost or market test with a lower of cost or net realizable value test when cost is determined on a first-in, first-out or average cost basis. We adopted this standard in the first quarter of 2017 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes . The new guidance requires that all deferred taxes be presented as noncurrent, rather than separated into current and noncurrent amounts. We adopted this guidance in the first quarter of fiscal year 2015 on a prospective basis. The adoption of this standard did not have a material impact on our financial position. In March 2016, the FASB issued ASU 2016-09, " Compensation—Stock Compensation Topic 718: Improvements to Employee Share-Based Payment Accounting" , which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. We adopted this guidance as of January 1, 2017. From January 1, 2017 onward, in accordance with the new guidance, no excess tax benefits or tax deficiencies will be recognized in additional paid in capital. We presented the impact of classifying excess tax benefits as an operating activity in the consolidated statement of cash flows beginning in 2017 and prior periods were not adjusted. We will continue to estimate forfeitures and recognize expense, net of estimated forfeitures. The adoption of the remaining amendments did not have a material impact on our consolidated financial statements. Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, " Revenue from Contracts with Customers (Topic 606)". The ASU outlines a single set of comprehensive principles for recognizing revenue under U.S. GAAP and supersedes existing revenue recognition guidance. The main principle of the ASU is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company will apply the ASU and its related updates on a modified retrospective basis as of January 1, 2018. The Company has completed a comprehensive assessment of customer contracts and evaluated the effect the ASU will have on the Company's financial statements and related disclosures. The Company has concluded that the adoption of the ASU will not have a material impact on the consolidated financial statements. As such, no cumulative catch-up adjustment will be recorded. The primary impact of adoption will be expanded disclosures that will enable users to better understand the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. Additionally, the Company has made appropriate revisions to its accounting policies, procedures, and the design of our internal controls, which took effect starting January 1, 2018, to comply with the effective date of the standard. In January 2016, the FASB issued ASU 2016-01, " Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, " which requires various changes to the measurement and disclosure of equity investments. Among a number of changes, ASU 2016-01 will eliminate the available-for-sale classification for equity securities with readily determinable fair values, and any changes in fair value of those equity securities will be included as an adjustment to earnings, rather than other comprehensive income (loss). The ASU will be adopted by the Company in the first quarter of 2018. As the Company does not hold any equity securities at December 31, 2017, the ASU will not have any impact upon adoption. In February 2016, the FASB issued ASU No. 2016-02, " Leases (Topic 842)". The ASU requires, among other things, a lessee to recognize assets and liabilities associated with the rights and obligations attributable to most leases but also recognize expenses similar to current lease accounting. The ASU also requires certain qualitative and quantitative disclosures designed to assess the amount, timing and uncertainty of cash flows arising from leases, along with additional key information about leasing arrangements. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The new guidance must be adopted using a modified retrospective transition and provides for certain practical expedients. The Company is in the process of analyzing initial data gathered to evaluate the impact of adopting the ASU on its consolidated financial statements, the related systems required to capture the increased reporting and disclosures associated with the ASU, and its use of practical expedients. The Company will apply the ASU and its related updates on a modified retrospective basis as of January 1, 2019. The adoption of the guidance will likely have a material effect on the consolidated balance sheets, resulting in the recording of an operating lease asset and liability. In June 2016, the FASB issued ASU 2016-13, " Financial Instruments—Credit Losses Topic 326" . The guidance eliminates the probable initial recognition threshold that was previously required prior to recognizing a credit loss on financial instruments. The credit loss estimate can now reflect an entity's current estimate of all future expected credit losses. Under the previous guidance, an entity only considered past events and current conditions. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of certain amendments of this guidance must be applied on a modified retrospective basis and the adoption of the remaining amendments must be applied on a prospective basis. We currently expect that the adoption of this guidance will likely change the way we assess the collectability of our receivables and recoverability of other financial instruments. We have not yet begun to evaluate the specific impacts of this guidance nor have we determined the manner in which we will adopt this guidance. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 203)" . The ASU addresses eight specific cash flow issues and clarifies their presentation and classification in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017 and is to be applied retrospectively. The Company concluded that the adoption of the ASU will not have a material impact on the consolidated financial statements and will apply the ASU and its related updates beginning in the first quarter of 2018. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments. | |
Investments | 3. Investments Our investments consisted of the following as of December 31, 2017, 2016 and 2015: December 31, 2017 (in $000's) Amortized Gross Gross Estimated U.S. government agencies $ $ — $ ) $ Obligations of government sponsored enterprises(1) — ) Corporate debt securities ) Foreign government bonds — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes investments in notes issued by the Federal Home Loan Bank and the Federal Farm Credit Bank. December 31, 2016 (in $000's) Amortized Gross Gross Estimated U.S. government agencies $ $ $ ) $ Obligations of government sponsored enterprises(1) — ) Corporate debt securities ) Foreign government bonds ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes investments in notes issued by the Federal Home Loan Bank and the Federal Farm Credit Bank. December 31, 2015 (in $000's) Amortized Gross Gross Estimated U.S. government agencies $ $ — $ ) $ Obligations of government sponsored enterprises(1) — ) Corporate debt securities ) Foreign government bonds ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes investments in notes issued by the Federal Home Loan Bank and the Federal Farm Credit Bank. The following tables summarize the securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of December 31, 2017, 2016 and 2015: December 31, 2017 Less than 12 Months 12 Months or More Total (in $000's) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. government agencies $ $ ) $ $ ) $ $ ) Obligations of government sponsored enterprises(1) ) ) ) Corporate debt securities ) ) ) Foreign government bonds ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes investments in notes issued by the Federal Home Loan Bank and the Federal Farm Credit Bank. December 31, 2016 Less than 12 Months 12 Months or More Total (in $000's) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. government agencies $ $ — $ $ ) $ $ ) Obligations of government sponsored enterprises(1) — — ) ) Corporate debt securities — Foreign government bonds ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes investments in notes issued by the Federal Home Loan Bank and the Federal Farm Credit Bank. December 31, 2015 Less than 12 Months 12 Months or More Total (in $000's) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. government agencies $ $ ) $ $ ) $ $ ) Obligations of government sponsored enterprises(1) — — ) ) Corporate debt securities ) ) ) Foreign government bonds — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes investments in notes issued by the Federal Home Loan Bank and the Federal Farm Credit Bank. The following table summarizes maturities of our investments available-for-sale as of December 31, 2017: December 31, 2017 (in $000's) Cost Fair Value Maturities: Within 1 year $ $ After 1 year through 5 years ​ ​ ​ ​ ​ ​ ​ ​ Total investments available for sale $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Realized losses, net of investment income were $2.0 million, $8 thousand, and $2.5 million, for the years ended December 31, 2017, 2016 and 2015, respectively, and have been included as a component of "Other income (expense) net," in the accompanying consolidated statements of comprehensive income (loss). Realized losses for the years ended December 31, 2017 and 2015 include losses on sale of Mesoblast Limited common stock of 1.9 million and $2.6 million, respectively, which was classified as a trading security (see Note 4). |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations | |
Discontinued Operations | 4. Discontinued Operations In October 2013, we sold our therapeutics business, including Prochymal, a stem cell drug for treatment of graft versus host disease, and related assets, to Mesoblast International SARL ("Mesoblast"), a wholly-owned subsidiary of Mesoblast Limited. The agreement with Mesoblast provided for the receipt of $50 million in initial consideration and up to an additional $50 million in payments upon Mesoblast achieving certain clinical and regulatory milestones. In addition, we were entitled to earn royalties on future sales by Mesoblast of Prochymal and other products utilizing the acquired technology. We received all of the initial consideration by April 2014, consisting of $35 million in cash and $15 million of Mesoblast Limited common stock which we classified as a trading security. The Mesoblast Limited common stock was subject to a holding period which was ultimately extended to May 2015. During this holding period, Mesoblast Limited provided us limited protection against a decline in the market value of the stock. In May 2015, concurrent with the expiration of the holding period, Mesoblast paid us $6.2 million representing the decline in the market value of the stock through that date. Later in 2015, we sold all of the Mesoblast Limited common stock for $6.8 million, resulting in a realized loss of $2.6 million which was recorded in other income (expense), net in our consolidated statement of comprehensive income (loss) for the year ended December 31, 2015. As noted above, in connection with the sale of our therapeutics business to Mesoblast, we are entitled to receive contingent consideration as a result of Mesoblast achieving certain milestones. In July 2017, the company settled any and all contingent consideration due from Mesoblast in regards to the sale of the therapeutics business. As part of the settlement, we received contingent consideration of $10.0 million in Mesoblast Limited common stock (classified as a trading security) and $350 thousand in cash as a milestone payment. We recorded income of $10.0 million, net of $0.3 million in income tax expense, in discontinued operations in 2017. All of the Mesoblast Limited common stock was sold in 2017, resulting in a loss of approximately $1.9 million, which was reported in other income (expense), net in our consolidated statement of comprehensive income (loss) for the year ended December 31, 2017. |
Inventory, net
Inventory, net | 12 Months Ended |
Dec. 31, 2017 | |
Inventory, net. | |
Inventory, net | 5. Inventory, net Inventory, net consists of the following: December 31, (in $000's) 2017 2016 2015 Raw materials and supplies $ $ $ Work-in-process Finished goods ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reserve for excess and obsolete inventory ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inventory, net $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Work-in-process inventory is largely product that is in quarantine pending completion of our quality assurance procedures. Finished goods inventory includes gross consigned inventory of $1.5 million, $1.8 million and $1.7 million as of December 31, 2017, 2016 and 2015, respectively. This consigned finished goods inventory was reduced by reserves of $0.6 million, $1.2 million and $1.0 million as of December 31, 2017, 2016 and 2015, respectively. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2017 | |
Property and Equipment, net | |
Property and Equipment, net | 6. Property and Equipment, net Property and equipment, net consisted of the following: December 31, Depreciable Life (in $000's) 2017 2016 2015 Laboratory and manufacturing equipment 3-7 $ $ $ Computer hardware, furniture and fixtures 3-7 Leasehold improvements (A) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated depreciation and amortization ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property and equipment, net $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (A) Shorter of economic life or lease term. Depreciation expense was $0.7 million, $1.0 million, and $1.0 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Dividend
Dividend | 12 Months Ended |
Dec. 31, 2017 | |
Dividend | |
Dividend | 7. Dividend On September 16, 2015, the Board declared a special cash dividend of $0.20 per common share payable to stockholders of record as of October 16, 2015. The special dividend, in the aggregate amount of $6.9 million, was paid on October 30, 2015. As we had an accumulated deficit at the time the dividends were declared, these dividends were recorded as a reduction to additional paid-in capital. |
Share Based Compensation and Em
Share Based Compensation and Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Share-Based Compensation and Employee Benefit Plans | |
Share-Based Compensation and Employee Benefit Plans | 8. Share-Based Compensation and Employee Benefit Plans In April 2006, we adopted our 2006 Omnibus Plan. We amended and restated this plan in 2008, 2010, 2012 and 2014, in each case to, among other things, increase the number of shares available for grant (the "Amended and Restated 2006 Omnibus Plan"). As a result of the 2014 amendment, the Amended and Restated 2006 Omnibus Plan has a termination date of May 2024. In addition, we had previously established our Amended and Restated 1994 Stock Incentive Plan. Both plans authorize the issuance of various forms of stock-based awards, including incentive and non-qualified stock options, stock purchase rights, stock appreciation rights and restricted and unrestricted stock awards. A total of 3,000,000 shares of our common stock have been reserved for issuance under the Amended and Restated 2006 Omnibus Plan, and 736,378 shares are reserved under our Amended and Restated 1994 Stock Incentive Plan. We ceased all grants under the Amended and Restated 1994 Stock Incentive Plan concurrent with our initial public offering in August 2006. As a result, no shares are currently available for future awards under the Amended and Restated 1994 Stock Incentive Plan. At December 31, 2017, there were approximately 1,431,209 shares available for future awards under the Amended and Restated 2006 Omnibus Plan. A summary of stock option activity for the years ended December 31, 2017, 2016 and 2015 is as follows: Number of Weighted Weighted Average Aggregate Outstanding at January 1, 2015 $ Granted Exercised ) Forfeited or cancelled ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2015 Granted Exercised ) Forfeited or cancelled ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding December 31, 2016 Granted Exercised ) Forfeited or cancelled ) Expired ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2017 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested at December 31, 2017 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested and expected to vest at December 31, 2017 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) The aggregate intrinsic value is based upon the difference between the Company's closing stock price at the date of the Consolidated Balance Sheet and the exercise price of the stock option for in-the-money stock options. The intrinsic value of outstanding stock options fluctuates based upon the trading value of the Company's Common stock. The weighted-average grant date fair value of stock options granted during the years ended December 31, 2017, 2016 and 2015 was $4.42, $2.48 and $11.31, respectively. The total fair value of shares vested during the years ended December 31, 2017, 2016 and 2015 was $1.0 million, $1.9 million and $2.1 million, respectively. Options outstanding at December 31, 2017 are summarized below: Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted Average Weighted Number Weighted $4.01-$7.25 $ $ $7.26-$12.75 $12.76-$16.00 $16.01-$19.36 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We estimated the fair value of stock options using the Black-Scholes option-pricing model. Fair value is amortized on an accelerated basis over the requisite service periods of the awards. We generally issue stock option awards that vest over four years and have a ten-year contractual life. The fair value of stock options granted during each of the years was estimated using the following weighted-average assumptions: Year ended 2017 2016 2015 Interest rate % % % Dividend yield % % % Term (in years) Volatility % % % Interest Rate —The risk-free interest rate was determined using the yield available for zero-coupon United States government issues with a remaining term approximating the expected life of the options. Dividend —On September 16, 2015, we declared a non-recurring, special cash dividend to shareholders. We do not expect to pay a dividend in the foreseeable future, and as such, the expected dividend yield is zero. Term —Since the Company has limited option exercise history, it has generally elected to estimate the expected life of an award based upon the SEC-approved "simplified method" noted under the provisions of Staff Accounting Bulletin No. 107 with the continued use of this method extended under the provisions of Staff Accounting Bulletin No. 110. Volatility —Expected volatility is based on the historical volatility of the Company's common stock, which we believe will be indicative of future experience. The table below reflects the total share-based compensation expense (benefit), including the expense (benefit) related to share-based payments to our non-employee directors, recognized in our statements of comprehensive loss for the years ended December 31, 2017, 2016 and 2015. Share-based compensation benefit is the result of the cancellation of option awards prior to vesting for which compensation expense had previously been recorded. Year ended December 31, (in $000's) 2017 2016 2015 Cost of product revenue $ $ $ Sales and marketing ) ) Research and development General and administrative ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2017, there was $0.2 million of total unrecognized compensation expense related to non-vested stock options, which is expected to be recognized over a weighted-average period of 1.4 years. We estimate expected forfeitures and recognize expense only for those option grants expected to vest. Our estimate of expected forfeitures may be adjusted throughout the requisite service period based on the extent to which actual forfeitures differ, or are likely to differ, from our previous estimates. At the end of the service period, compensation cost will have been recognized only for those awards for which the employee has provided the requisite service. 401(k) Plan We sponsor a 401(k) plan. We match employee contributions based upon the amount of the employees' contributions, subject to certain limitations and vesting requirements, and we may make a discretionary contribution. Company matching contributions to the 401(k) plan totaled $0.4 million, $0.4 million and $25 thousand for the years ended December 31, 2017, 2016 and 2015, respectively. There were no discretionary contributions made in 2017, 2016 or 2015. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share | |
Earnings Per Share | 9. Earnings Per Share Basic net earnings per share ("EPS") is calculated by dividing net earnings (loss) by the weighted average number of common shares outstanding for the applicable period. Diluted net EPS is computed based on the weighted average number of common shares outstanding increased by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued and reduced by the number of shares the Company could have repurchased with the proceeds from the issuance of the potentially dilutive shares. As a result of our net losses from continuing operation for the years ended December 31, 2017, 2016 and 2015, potentially dilutive stock options of approximately 0.7 million, 0.8 million and 1.5 million, respectively, were considered anti-dilutive and were excluded from the computation of diluted EPS. Potentially dilutive stock options of approximately 0.7 million were considered anti-dilutive and were excluded from the computation of diluted EPS from discontinued operations for the year ended December 31, 2017. |
Financial Instruments and Fair
Financial Instruments and Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments and Fair Value | |
Financial Instruments and Fair Value | 10. Financial Instruments and Fair Value Fair value is defined as the price at which an asset could be exchanged or a liability transferred (an exit price) in an orderly transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or liability. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. Financial assets recorded at fair value in the accompanying financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The levels are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, and are as follows: Level 1 Inputs are unadjusted, quoted prices in active markets for identical assets at the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Inputs are other than quoted prices included in Level 1, which are either directly or indirectly observable for the asset or liability through correlation with market data at the reporting date and for the duration of the instrument's anticipated life. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management's best estimate of what market participants would use in pricing the asset or liability at the reporting date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. When quoted prices in active markets for identical assets are available, we use these quoted market prices to determine the fair value of financial assets and classify these assets as Level 1. In other cases where a quoted market price for identical assets in an active market is either not available or not observable, we obtain the fair value from a third-party vendor that uses pricing models, such as matrix pricing, to determine fair value. These financial assets would then be classified as Level 2. In the event quoted market prices were not available, we would determine fair value using broker quotes or an internal analysis of each investment's financial statements and cash flow projections. In these instances, financial assets would be classified based upon the lowest level of input that is significant to the valuation. Thus, financial assets might be classified in Level 3 even though there could be some significant inputs that may be readily available. Assets and liabilities measured at fair value on a recurring basis are summarized below as of December 31, 2017, 2016 and 2015: December 31, 2017 (in $000's) Level 1 Level 2 Level 3 Total Assets Investments: Available for Sale Securities U.S. government agencies $ — $ $ — Obligations of government sponsored enterprises — — Corporate debt securities — — Foreign government bonds — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total investments $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2016 (in $000's) Level 1 Level 2 Level 3 Total Assets Investments: Available for Sale Securities U.S. government agencies $ — $ $ — $ Obligations of government sponsored enterprises — — Corporate debt securities — — Foreign government bonds — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total investments $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015 (in $000's) Level 1 Level 2 Level 3 Total Assets Investments: Available for Sale Securities U.S. government agencies $ — $ $ — $ Obligations of government sponsored enterprises — — Corporate debt securities — — Foreign government bonds — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total investments $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the years ended December 31, 2017, 2016 and 2015 the Company did not transfer any assets between fair value levels. The carrying value of financial instruments, including trade receivables, accounts payable, and accrued liabilities approximates fair value because of the short-term maturity of these items. The estimated fair value of the Company's capital lease obligations also approximates their carrying values, which was based on current interest rates for similar types of borrowings and is in Level 2 of the fair value hierarchy. The estimated fair values may not represent actual values of the financial instruments that could be realized as of the balance sheet date or that will be realized in the future. All of the Company's investments at each year end are classified as "available-for-sale" and are carried at fair value. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions | |
Related Party Transactions | 11. Related Party Transactions BioForceRX LLC. The Company paid BioForceRX LLC, a professional recruiting and consulting firm, approximately $129,500 in 2015 for various recruiting services, primarily involving the Company's sales force, pursuant to a Contingency Recruitment Services and Fee Agreement, dated 2014 (the "Recruitment Agreement"). The owner of BioForceRX LLC was Kathleen Czworka, the spouse of Frank Czworka, the Company's former Vice President and General Manager of Wound Care from August 2011 to February 2016. Mr. Czworka also served as the Company's Chief Operating Officer from February 2, 2016 until March 6, 2016 when the Chief Operating Officer position was eliminated. The parties agreed to terminate the Recruitment Agreement by a letter agreement, dated July 7, 2016, under which the Company paid $32,000 as full payment for all outstanding fees and expenses. Peter Friedli. In connection with the restatement of the Company's 2014 financial statements included in the Amendment to its Annual Report on Form 10-K for the year ended December 31, 2014, the Audit Committee evaluated certain issues related to director expense reimbursements. On the basis of that review, the Audit Committee determined that certain requests for reimbursement submitted between 2012 and 2015 by the Company's Chairman of the Board to the Company's former Chief Financial Officer should not have been paid. In December 2016, the Chairman returned to the Company $216 thousand representing the full amount that the Audit Committee determined should not have been paid. The $216 thousand was recorded in prepaid and other current assets as of December 31, 2015. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes | |
Income Taxes | 12. Income Taxes The benefit and expense for income taxes consisted of the following: Year ended December 31, (in $000's) 2017 2016 2015 Current: Federal $ ) $ — $ ) State ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current provision ) Deferred: Federal — ) — State — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred (benefit) expense — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax (benefit) expense $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ A reconciliation of the federal statutory rate to the effective income tax rate is as follows: Year ended December 31, 2017 2016 2015 Federal income tax rate % % % State income taxes % % % Nondeductible expenses )% )% )% Stock-based compensation )% )% )% Domestic manufacturing deduction — — % Valuation allowance % )% % Credits % % )% Change in tax rate )% )% % Other )% % )% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective tax rate % )% )% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The components of our net deferred tax assets and liabilities at December 31 are as follows: December 31, (in $000's) 2017 2016 2015 Deferred tax assets arising from: Net operating losses and credits $ $ $ Inventory adjustments Accrued expenses and reserves Property and equipment Stock compensation Deferred rent Deferred revenue — Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax assets Less: valuation allowance ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets Deferred tax liabilities arising from: Insurance receivable ) ) ) Other — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset (liability) $ — $ — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2017, 2016 and 2015, our net income tax receivable was $2.6 million, $2.3 million and $2.0 million, respectively, which were recorded in prepaid expenses and other current assets on the consolidated balance sheets. Also, the Company had an AMT credit carryforward that is now refundable under the Tax Act of approximately $1.5 million that is recorded in other assets on the consolidated balance sheet as of December 31, 2017. As of December 31, 2017, we had federal operating loss carryforwards and credits of approximately $0.4 million expiring beginning in 2025, and state operating loss carryforwards and credits of approximately $131 thousand, net of federal benefit, expiring beginning in 2035. The Tax Act, reduced the U.S. corporate income tax rate from a maximum of 35% to 21%. As a result of the reduction in the U.S. corporate income tax rate from 35% to 21% under the Tax Act, the Company re-measured its ending net deferred tax assets at December 31, 2017 and recorded a provisional tax expense of $4.8 million that was offset by the release of valuation allowance in the same amount. Our ability to realize our deferred tax assets depends primarily upon the generation of sufficient future taxable income to allow for the utilization of the deductible temporary differences and upon tax planning strategies. Realization of net deferred tax assets is dependent on our ability to generate future taxable income, which is uncertain. We have recorded valuation allowances of $10.2 million, $17.3 million and $16.7 million, against our net deferred tax assets as of December 31, 2017, 2016 and 2015, respectively, as we believe it is more likely than not that the assets will not be realized. Utilization of the net operating losses and credit carryforwards may be subject to an annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. We have not performed a detailed analysis to determine whether an ownership change under Section 382 of the Internal Revenue Code occurred. The effect of an ownership change would be the imposition of an annual limitation on the use of credits attributable to periods before the change and could result in a reduction in the total credits available. The Company has filed previous tax returns whereby a carryforward for orphan drug credits were included. Through December 31, 2017, the Company has still not utilized such credits. As of the filing date of this Annual Report on Form 10-K, the Company was in the process of obtaining documentation and support for these credits. The Company has not included these orphan drug credits in the table above that details out our net deferred tax assets and liabilities due to the lack of support. If and when this documentation or support of the orphan drug tax credit is obtained, we may have the ability to offset future income taxes of up to $71.3 million. This deferred tax asset, had it been recorded, would have had a full valuation allowance against it. We are subject to income taxes in the United States and several states. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. We had tax net operating losses and credit carryforwards that are subject to examination for a number of years beyond the year in which they are generated for tax purposes. Since a portion of these carryforwards may be utilized in the future, many of these attribute carryforwards remain subject to examination. Our policy is to recognize interest and penalties related to income tax matters in income tax expense. Interest and penalties related to uncertain tax positions of $34 thousand, $31 thousand and $112 thousand were recognized during the years ended December 31, 2017, 2016 and 2015, respectively related to state tax nexus issues. As of December 31, 2017, 2016 and 2015, accrued interest and penalties were $176 thousand, $142 thousand, and $112 thousand, respectively, and are recorded as other long term liabilities on the consolidated balance sheets. As of December 31, 2017, our total unrecognized tax benefits would favorably affect our effective tax rate if recognized. We do not believe it is reasonably possible that the amount of unrecognized tax benefits will materially change within the next 12 months. We file income tax returns in the United States and various state and local jurisdictions and remain subject to examinations by these jurisdictions for years 2005-2017. The aggregate change in the balance of unrecognized tax benefits, (which includes the $71.3 million orphan drug credits on our tax returns as discussed above for all periods), and which excludes interest and penalties is as follows: Year ended 2017 2016 2015 Balance, beginning of year $ $ $ — Increase in current year position — Decrease in prior year position — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, end of year $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies | |
Commitments and Contingencies | 13. Commitments and Contingencies Leases We lease facilities and equipment under various non-cancellable operating lease agreements expiring through 2023. Rent expense was $1.4 million, $1.4 million and $1.5 million for the years ended December 31, 2017, 2016 and 2015, respectively. At December 31, 2017, the Company's minimum obligations under non-cancellable operating leases are as follows: (in $000's) 2018 $ 2019 2020 2021 2022 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Legal The Company is party to outstanding legal proceedings, investigations and claims as described below. The Company cannot predict with any certainty the final outcome of any legal proceedings, investigations (including any settlement discussions with the government seeking to resolve such investigations) or claims made against it as described in the paragraphs below, and there can be no assurance that the ultimate resolution of any such matter will not have a material adverse impact on the Company's consolidated financial position, results of operations, or cash flows. The Company records accruals for certain outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred and the amount of the loss can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal proceedings, investigations and claims that could affect the amount of any accrual, as well as any developments that would make a loss contingency both probable and reasonably estimable. When a loss contingency is not both probable and reasonably estimable, the Company does not accrue the loss. However, if the loss (or an additional loss in excess of the accrual) is at least a reasonable possibility and material, then the Company discloses a reasonable estimate of the possible loss or range of loss, if such reasonable estimate can be made. If the Company cannot make a reasonable estimate of the possible loss, or range of loss, then that is disclosed. The assessments of whether a loss is probable or a reasonable possibility, and whether the loss or range of loss is reasonably estimable, often involve a series of complex judgments about future events. Among the factors that the Company considers in this assessment are the nature of existing legal proceedings, investigations and claims, the asserted or possible damages or loss contingency (if reasonably estimable), the progress of the matter, existing law and precedent, the opinions or views of legal counsel and other advisers, the involvement of the U.S. Government and its agencies in such proceedings, the Company's experience in similar matters and the experience of other companies, the facts available to the Company at the time of assessment, and how the Company intends to respond, or has responded, to the proceeding, investigation or claim. The Company's assessment of these factors may change over time as individual proceedings, investigations or claims progress. For matters where the Company is not currently able to reasonably estimate the range of reasonably possible loss, the factors that have contributed to this determination include the following: (i) the damages sought are indeterminate, or an investigation has not manifested itself in a filed civil or criminal complaint, (ii) the matters are in the early stages, (iii) the matters involve novel or unsettled legal theories or a large or uncertain number of actual or potential cases or parties, and/or (iv) discussions with the government or other parties in matters that may be expected ultimately to be resolved through negotiation and settlement have not reached the point where the Company believes a reasonable estimate of loss, or range of loss, can be made. In such instances, the Company believes that there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss, fine, penalty or business impact, if any. In addition, the Company does not accrue for estimated legal fees and other directly related costs as they are expensed as incurred. In addition to the matters described in the paragraphs below, in the normal course of its business, the Company is involved in various lawsuits from time to time and may be subject to certain other contingencies, none of which we believe to be material. Based on our analysis and assessment as described above, including consultation with our legal counsel, management believes there are no matters that are probable or reasonably possible that require accrual or disclosure, except for the matters described below. Securities Class Action On November 23, 2015, a putative class action lawsuit was filed in the United States District Court for the District of Maryland by a single plaintiff, individually and on behalf of other persons similarly situated, against the Company and three current or former executive officers of the Company. The action, captioned Kiran Kumar Nallagonda v. Osiris Therapeutics, Inc. et al. , Case 1:15-cv-03562 (the "Nallagonda Action"), alleges, among other things, that the defendants made materially false or misleading statements and material omissions in the Company's SEC filings in violation of the federal securities laws. The complaint seeks certification as a class action, unspecified damages and reimbursement of attorneys' fees. On March 21, 2016, the court entered an order appointing Dr. Raffy Mirzayan as lead plaintiff and the firm of Hagens Berman Sobol Shapiro LLP as lead counsel. On January 17, 2018, the Court entered an order providing that the lead plaintiff shall have 45 days to file an amended complaint. On March 11, 2018, we entered into a memorandum of understanding to settle the Nallagonda Action. A memorandum of understanding is not a definitive settlement agreement. By the terms of the memorandum, the Company agreed in principle to a total payment of $18.5 million in cash. The Company recorded the $18.5 million shareholder settlement in Settlement of SEC and shareholders actions, net of the $4.8 million estimated insurance recovery in the consolidated statement of comprehensive income (loss) in the fourth quarter of 2015, which is the period in which the lawsuits were originally filed. The $18.5 million shareholder settlement liability was recorded in Accrued shareholder litigation in the Company's consolidated balance sheets as of December 31, 2015, 2016, and 2017. The $18.5 million shareholder settlement liability was recorded as a long-term liability in the Company's consolidated balance sheets as of December 31, 2015 and 2016 and as a current liability as of December 31, 2017 since the Company expects to pay the full $18.5 million settlement in 2018. The Company had a $5.0 million executive and corporate securities liability insurance policy in place at the time of the allegations. The Company expects to recover the remaining $4.8 million of unused policy coverage for the shareholder settlement in 2018. The $4.8 million insurance recovery was recorded as an offset to the $18.5 million shareholder settlement in the Company's consolidated statement of comprehensive income (loss) for the fourth quarter of 2015. The $4.8 million insurance receivable was recorded in Insurance receivable in the Company's consolidated balance sheets as of December 31, 2015, 2016, and 2017. The $4.8 million insurance receivable was recorded as a long-term asset in the Company's consolidated balance sheets as of December 31, 2015 and 2016 and as a current asset as of December 31, 2017 since the Company expects to receive the full $4.8 million insurance receivable in 2018. Shareholder Derivative Actions On March 2, 2016, a shareholder derivative complaint was filed in the Circuit Court for Howard County in the State of Maryland (Case No. 13C16106811) by a single plaintiff, derivatively and on behalf of the Company, against certain current and former directors and certain former executive officers. This action, captioned Kevin Connelley v. Lode Debrabandere et al ., alleges that each of the individual directors and officers named as defendants (i) violated their fiduciary duties to the Company's shareholders; (ii) abused their ability to control and influence the Company; (iii) engaged in gross mismanagement of the assets and business of the Company; and (iv) was unjustly enriched at the expense of, and to the detriment of, the Company. The alleged claims generally relate to the matters that are the subject of the Nallagonda Action. The plaintiff seeks, among other things, unspecified monetary damages, reimbursement of attorneys' fees and shareholder votes on amendments to the Company's Articles of Incorporation and Bylaws with respect to various corporate governance policies. On June 2, 2016, the Court entered an order that, subject to certain qualifications, stayed the action until 30 days after the entry of an order either: (1) denying all motions to dismiss in the Nallagonda Action, or (2) finally dismissing the Nallagonda Action with prejudice. On February 9, 2017, a shareholder derivative complaint was filed in the United States District Court for the District of Maryland (Case No. 1:17-cv-00381-JKB) by a single plaintiff, derivatively and on behalf of the Company, against certain current and former directors. This action, captioned Recupero v. Friedli et al., alleges, among other things, that each of the individual directors named as defendants (i) violated their fiduciary duties to the Company's shareholders, including that such violations constituted constructive fraud; (ii) engaged in gross mismanagement of the assets and business of the Company; and (iii) was unjustly enriched at the expense of, and to the detriment of, the Company. The plaintiff seeks, among other things, unspecified monetary damages, reimbursement of attorneys', accountants' and experts' fees, and that the Company take all necessary actions to improve and comply with corporate governance, internal procedures and existing laws. On March 28, 2017, the Court entered an order that stays the action until: (1) the Nallagonda Action is dismissed with prejudice and all appeals relating thereto have been exhausted; (2) all motions to dismiss the Nallagonda Action are denied; or (3) either party provides 30 days' notice that they no longer consent to a stay. On May 11, 2017, a shareholder derivative complaint was filed in the Circuit Court for Howard County in the State of Maryland, (Case No. 13C17111441) by a single plaintiff, derivatively on behalf of the Company, against certain former executive officers and certain current and former directors. The action, captioned Brian Lee v. Peter Friedli, et. al. , alleges that each of the individual defendants violated their fiduciary duties by allegedly failing to adopt and implement adequate accounting and financial reporting systems and for allegedly causing the Company to make false and misleading statements regarding its financial condition. The alleged claims generally relate to the matters that are the subject of the Nallagonda Action and seek substantially similar relief. On September 5, 2017, the defendants moved to either stay or dismiss the plaintiffs' complaint. That motion was subsequently withdrawn. On February 14, 2018, the plaintiff filed an amended derivative complaint. No defendant has yet responded to that pleading. On December 21, 2017, a shareholder derivative action was filed in the United States District Court for the District of Maryland (Case No. 1:17-cv-03777) by a single plaintiff, derivatively and on behalf of the Company, against certain former executive officers and certain current and former directors. The action, captioned Todd Salley v. Lode Debrabandere, et. al., alleges that each of the individual defendants violated their fiduciary duties by failing to maintain adequate internal controls and by causing the Company to make false and misleading statements regarding the Company's financial condition. The alleged claims generally relate to the matters that are the subject of the Nallagonda Action and seek substantially similar relief. No defendant has yet responded to the complaint. The Company has reached an agreement in principle with the plaintiffs in the shareholder derivative actions to resolve the derivative matters by adopting certain governance changes. We expect that the plaintiffs will seek recovery of attorney's fees and we cannot currently predict the amount of such attorney's fees that we may be required to pay, if any. We can provide no assurance that we will be able to reach a definitive global settlement with the derivate plaintiffs or that any such settlement will be approved by the courts. While we believe it is reasonably possible that we will incur losses associated with the shareholder derivative actions, it is not possible to estimate the amount of loss, if any, that might result from any settlements or other resolution. The Company will continue to evaluate information as it becomes known and will record an estimate for losses at the time or times when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable. Government Investigations On November 2, 2017, the Company announced the resolution of an investigation by the SEC into the Company's historical accounting practices. The Company agreed to settle with the SEC, without admitting or denying the allegations of the SEC, by consenting to the entry of a final judgment, subject to court approval, that permanently restrains and enjoins the Company from violating certain provisions of the federal securities laws. As part of the settlement, the Company paid a civil penalty in the amount of $1.5 million on November 9, 2017. This $1.5 million settlement was expensed by the Company in the fourth quarter of 2015. The $1.5 million settlement was included in other long-term liabilities and accrued liabilities in the consolidated balance sheets as of December 31, 2015 and 2016, respectively, and in settlement of SEC and shareholders actions in the consolidated statements of comprehensive income (loss) for the year ended December 31, 2015. On November 7, 2017, this settlement was approved by the United States District Court for the District of Maryland, through entry of a final judgment, resolving as to the Company the matters alleged by the SEC in the civil complaint against the Company. The SEC civil case is continuing against four former Company officers. The Company previously announced that a criminal investigation was being conducted by the U.S. Attorney's Office for the Southern District of New York ("SDNY") relating to matters that were also being investigated by the SEC. The SDNY investigation resulted in a former chief financial officer of the Company entering into a guilty plea with the government. As previously disclosed, based on communications the Company has had with the SDNY since that time and given that sentencing of the former company officer has now occurred, the Company believes that, subject to any newly discovered information, the SDNY has concluded the criminal investigation with respect to Company-related matters. The Company believes that both the previously disclosed SEC and SDNY investigations are concluded with respect to the Company. |
Significant Distributors
Significant Distributors | 12 Months Ended |
Dec. 31, 2017 | |
Significant Distributors | |
Significant Customers | 14. Significant Distributors We have historically provided credit in the normal course of business to contract counterparties and to the distributors of our products. Trade receivables in the accompanying consolidated balance sheets consist primarily of amounts due from distributors and end-user customers of our products. The concentration of the Company's business with a relatively small number of distributors may expose it to a material adverse effect if one or more of these large distributors were to experience financial difficulty or were to cease being a distributor for non-financial related issues. The Company's revenue concentrations through distributors of 10% or greater are as follows: Percentage of Distributor 2017 2016 2015 A % % % B % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company's accounts receivable concentrations of 10% or greater are as follows: Percentage of December 31, Distributor 2017 2016 2015 A % % % |
Selected Quarterly Data (Unaudi
Selected Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Selected Quarterly Data (Unaudited) | |
Selected Quarterly Data (Unaudited) | 15. Selected Quarterly Data (Unaudited) The following tables include the Company's condensed consolidated balance sheets, condensed consolidated statements of comprehensive income (loss), and condensed consolidated statements of cash flows for each quarter of the years ended December 31, 2017, 2016 and 2015. EPS is computed independently for each quarter presented, therefore, the sum of the quarterly EPS may not equal the total EPS for the year. Condensed Consolidated Balance Sheets (in thousands, except per share data) Unaudited March 31, June 30, September 30, Assets Current Assets Cash and cash equivalents $ $ $ Short-term investments Trade receivables, net Inventory, net Insurance receivable Prepaid expenses and other current assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets Property and equipment, net Other assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Equity Current liabilities Accounts payable $ $ $ Accrued liabilities Accrued shareholder litigation Other current liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities Other long-term liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity Common stock Additional paid-in capital Accumulated other comprehensive income (loss) ) ) Accumulated deficit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities equity $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands, except per share data) Unaudited 2017 Quarter Quarter Six Months Quarter Nine Months Quarter Revenue $ $ $ $ $ $ Cost of revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Research and development Sales and marketing General and administrative ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations ) ) ) ) ) Other income (expense) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes from continuing operations ) ) ) ) Income tax benefit (expense) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) from continuing operations ) ) ) ) Discontinued operations, net of tax — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) Other comprehensive income (loss) Unrealized gain (loss) on investments ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income (loss) $ ) $ $ ) $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share from continuing operations: Basic $ ) $ $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted $ ) $ $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share from discontinued operations: Basic $ — $ — $ — $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted $ — $ — $ — $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) per share: Basic $ ) $ $ ) $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted $ ) $ $ ) $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding: Basic ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidated Statements of Cash Flows in thousands) Unaudited 2017 Three Months Six Months Nine Months CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ ) $ ) $ Adjustments to reconcile net income (loss) to net cash used in operating activities: Receipt of Mesoblast common stock — — ) Loss on disposal of fixed assets — Realized loss on investments Depreciation Stock-based compensation expense Changes in operating assets and liabilities Accounts receivable, net ) Inventory, net ) ) Prepaid expenses, and other current assets ) ) ) Accounts payable, accrued expenses, and other liabilities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in operating activities ) ) ) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment, net ) ) ) Proceeds from sale of investments Purchases of investments ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the exercise of options to purchase common stock ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ) ) Cash and cash equivalents, beginning of period ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL INFORMATION Cash paid during the period for: Income tax $ $ $ Condensed Consolidated Balance Sheets in thousands, except per share data) Unaudited March 31, June 30, September 30, Assets Current Assets Cash and cash equivalents $ $ $ Short-term investments Trade receivables, net Inventory, net Prepaid expenses and other current assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets Property and equipment, net Insurance receivable Other assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Equity Current liabilities Accounts payable $ $ $ Accrued liabilities Other current liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities Accrued shareholder litigation Other long-term liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities Equity Common stock Additional paid-in capital Accumulated other comprehensive income Accumulated deficit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and equity $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidated Statements of Comprehensive Income (Loss) in thousands, except per share data) Unaudited 2016 Quarter Quarter Six Months Quarter Nine Months Quarter Revenue $ $ $ $ $ $ Cost of revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Research and development Sales and marketing General and administrative ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from operations ) ) ) ) ) Other income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) ) ) ) ) Income tax (expense) benefit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ) ) Other comprehensive income (loss) Unrealized gain (loss) on investments ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income (loss) $ ) $ ) $ ) $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic and diluted net loss per share: Basic and diluted $ ) $ ) $ ) $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding: Basic Diluted Condensed Consolidated Statements of Cash Flows ( in thousands) Unaudited 2016 Three Months Six Months Nine Months CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ ) $ ) $ ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Loss on disposal of fixed assets Realized gain on investments — — ) Depreciation Stock-based compensation expense (benefit) ) ) ) Changes in operating assets and liabilities Accounts receivable, net ) ) ) Inventory, net ) ) ) Prepaid expenses, and other current assets ) Accounts payable, accrued expenses, and other liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in operating activities ) ) ) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment, net ) ) ) Proceeds from sale of investments Purchases of investments ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in investing activities ) ) ) CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on capital lease obligations ) ) ) Repurchases of common stock ) ) ) Proceeds from the exercise of options to purchase common stock — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in financing activities ) ) ) NET DECREASE IN CASH AND CASH EQUIVALENTS ) ) ) Cash and cash equivalents, beginning of period ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL INFORMATION Cash paid during the period for: Income taxes $ $ $ Restatement of the 2015 Unaudited Quarterly Financial Statements As previously described in our Current Reports on Form 8-K filed on November 20, 2015 and on March 14, 2016, the Audit Committee of the Board of Directors (the "Audit Committee"), in consultation with management, concluded that our unaudited interim financial statements previously issued for the quarterly and year-to-date periods ended March 31, 2015, June 30, 2015 and September 30, 2015 should not be relied upon due to errors identified in such financial statements related to the timing of revenue recognition under contracts with distributors. The corrections contained in the below restated unaudited quarterly financial statements were prepared following an independent review by the Audit Committee into certain accounting matters (the "Independent Review") as described below, and a review by management of other accounting matters not specifically addressed by the Independent Review. The unaudited quarterly information for the quarter ended December 31, 2015 is presented below for the first time. Impact of this Restatement Based on the Independent Review and management's additional review procedures, the Audit Committee concluded, among other things, that there were both material and immaterial misstatements in the financial statements filed in the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2015, June 30, 2015 and September 30, 2015 and our financial statements previously filed in the Company's Quarterly Reports on Form 10-Q for said quarters that require restatement (the "2015 Quarterly Restatement"). The following summarizes the material errors corrected in the 2015 Quarterly Restatement. Recognition of revenue under distributor sales arrangements Based on the Audit Committee's Independent Review, the Company determined that it had erred in its application of GAAP with respect to the recognition of revenue arising from the certain distributor sales arrangements described below: The Company provided unusually long payment terms to a distributor that was affiliated with another distributor. Granting a customer unusually long payment terms can cause the related sales transactions to fail the "fixed or determinable" criteria required under GAAP to recognize revenue. Because the Company does not have reliable information about when the distributor sold the products to the end-use customers, the revenue has been restated such that it is now recorded on cash basis, net of commission expense. In addition, for another distributor, the price was not fixed or determinable. Therefore, revenue arising from these two distributors did not meet the criteria for recognizing revenue under GAAP in the originally filed financial statements. The restated financial statements now account for revenue associated with these two distributors on a cash basis. The Company utilizes a government contracting agent through which it sells to facilities of the United States Department of Veterans Affairs and the United States Department of Defense under the agent's GSA Federal Supply Schedule (the "VA agent"). It became evident that the VA agent's financial condition was weak, and collectability of the receivable was not reasonably assured at the time of shipment (which is a required criterion for recognizing revenue). The restated financial statements now account for revenue associated with this distributor on a cash basis. The Company also erred in reporting revenue from the VA agent net of the VA agent's fees. The Company's accounting policy requires that revenue arising from contractual arrangements of this type be reported at the gross price paid by the end user, and that the related fees be reported as a sales expense. The restated financial statements now account for revenue associated with this distributor on a gross basis. The Company improperly recognized revenue from bill and hold transactions with one distributor as they did not meet the requirements for revenue recognition under GAAP with respect to bill and hold sales. The restated financial statements now account for revenue associated with this distributor when the title and risk of loss transfer to the end customer. The Company inappropriately recognized revenue related to sales transactions through one distributor upon shipment at the Company's list price instead of the actual price the distributor sold to the end customer. The restated financial statements now account for revenue associated with this distributor when the title and risk of loss transfer to the end customer at the price obtained by distributor. The Company entered into arrangements with two distributors to sell products in specific countries. The Company prematurely recognized revenue as the distributors have the right to return the product if regulatory approval is not achieved. The distributors were unable to obtain regulatory approval and title and risk of loss never passed to the distributors. The upfront payment received was deferred until the agreement was terminated. The restated financial statements do not reflect any product revenue associated with these distributors. Consistent with corrections in the Company's revenue recognition, the Company subsequently recognized cost of goods sold and commission expense in the period that revenue was recognized. For unrecoverable costs (revenue never recognized), the Company expensed the cost of goods sold in the period upon notification of usage and expensed the commissions in the period they were paid. The product costs arising from the distributor sales transactions for which revenue has been reversed due to the "fixed or determinable" criteria have also been reversed and added back into inventory. Similarly, sales commission expenses incurred during 2015 in connection with those specific sales transactions for which revenue has been reversed have also been reversed. For revenue that was reversed due to the collectability of the transaction not being reasonably assured, the inventory was expensed when title and risk of loss related to the product sale transferred to the customer. Agent fees for those transactions were expensed when paid, which was generally upon the collection of the revenue. Valuation of inventory and accounting for consigned inventory quantities Management determined that there were errors in the valuation of the Company's finished goods inventory resulting from computational errors, failure to update and apply current cost information in the calculation of unit costs, and non-timely identification and write-off of products that were no longer salable as determined by the Company's quality assurance procedures. In addition, management determined the need to establish a reserve for consigned finished goods inventory as the Company had not adequately monitored the ultimate disposition of consigned goods whereby some were returned, or scrapped, or used by the consignee. Lastly, management determined the need to establish a reserve for work-in-process inventory which largely consists of product in quarantine pending the outcome of the Company's quality assurance procedures. This process results in a reasonably consistent identification of product that is unsalable. Collection of invoiced fees Management determined that it did not correctly assess the collectability of accounts receivable and had not determined an appropriate allowance for doubtful accounts as of March 31, 2015, June 30, 2015 and September 30, 2015. Upon further analysis, it was determined that certain previously recognized receivables were not collected due to issues other than the inability of the customer to pay. The Company concluded that customer non-payment for these reasons should be considered adjustments to revenue for the related transactions. Classification of costs and expenses to income statement captions Management determined that errors had been made in classification of costs and expenses to condensed consolidated statements of comprehensive income (loss) captions. Other adjustments In addition to the error corrections mentioned above, adjustments were made to the financial statements for various immaterial errors identified by management and the Audit Committee during the 2015 Quarterly Restatement process. Tax effect of Restatement adjustments The Company adjusted income tax expense for each quarter and year to date periods to account for the impact of the adjustments in the 2015 Quarterly Restatement described above. Condensed Balance Sheets (in thousands) Unaudited March 31, 2015 Previously Adjustments Restated Assets Current Assets Cash and cash equivalents $ $ $ Short- term investments ) Trading securities — Trade receivables, net ) Inventory, net ) Prepaid expenses and other current assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property and equipment, net Other assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Equity Current liabilities Accounts payable $ $ $ Accrued liabilities Other current liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities Other long-term liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity Common stock — Additional paid-in capital ) Accumulated other comprehensive loss ) ) Accumulated deficit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and equity $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (A) Previously reported balances are from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. Condensed Balance Sheets (in thousands) Unaudited June 30, 2015 Previously Adjustments Restated Assets Current Assets Cash and cash equivalents $ $ $ Short- term investments ) Trading securities — Trade receivables, net ) Inventory, net ) Prepaid expenses and other current assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property and equipment, net Other assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Equity Current liabilities Accounts payable $ $ ) $ Accrued liabilities Other current liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities Other long-term liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity Common stock — Additional paid-in capital ) Accumulated other comprehensive loss ) ) Accumulated deficit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and equity $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (A) Previously reported balances are from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. Condensed Balance Sheets (in thousands) Unaudited September 30, 2015 Previously Adjustments Restated Assets Current Assets Cash and cash equivalents $ $ $ Short- term investments ) Trading securities — Trade accounts receivable, net of reserves ) Inventory, net ) Prepaid expenses and other current assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property and equipment, net ) Other assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Equity Current liabilities Accounts payable $ $ ) $ Accrued liabilities Dividends payable — Other current liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities Other long-term liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity Common stock — Additional paid-in capital ) Accumulated other comprehensive loss ) — ) Accumulated deficit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and equity $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (A) Previously reported balances are from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. Condensed Consolidated Statements of Comprehensive income (loss) (in thousands, except per share data) Unaudited Previously Reported(A) 2015 Quarter Quarter Six Months Quarter Nine Months Quarter Revenue $ $ $ $ $ (B) Cost of revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Research and development Sales and marketing(C) General and administrative — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from operations Other income (expense) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) Income tax (expense) benefit ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) Other comprehensive income (loss) Unrealized gain (loss) on investments ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income (loss) $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic and diluted net income (loss) per share: Basic and diluted $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (A) Previously reported balances are from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. (B) Fourth quarter 2015 information is being presented for the first time. (C) Sales and marketing, as previously reported, also included general and administrative expense of $3,482, $6,278, and $5,463 for the quarters ended March 31, June 30 and September 30, respectively. These balances have been reclassified to conform to the current year presentation. Condensed Consolidated Statements of Comprehensive income (loss) (in thousands, except per share data) Unaudited Adjustments 2015 Quarter Quarter Six Months Quarter Nine Months Quarter Revenue $ ) $ ) $ ) $ ) $ ) (A) Cost of revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Research and development ) ) ) ) ) Sales and marketing General and administrative ) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss from operations ) ) ) ) ) Other income (expense) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) ) ) ) ) Income tax (expense) benefit ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ) ) Other comprehensive loss Unrealized gain (loss) on investments — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income (loss) $ ) $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (A) Fourth quarter 2015 information is being presented for the first time. Condensed Consolidated Statements of Comprehensive income (loss) (in thousands, except per share data) Unaudited Restated 2015 Quarter Quarter Six Months Quarter Nine Months Quarter Revenue $ $ $ $ $ $ Cost of revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses Research and development Sales and marketing General and administrative Settlement of SEC and shareholder actions — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss from operations ) ) ) ) ) ) Other income (expense) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss before income taxes ) ) ) ) ) ) Income tax (expense) benefit ) ) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Loss ) ) ) ) ) ) Other comprehensive income (loss) Unrealized gain (loss) on investments ) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income Loss $ ) $ ) $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic and diluted net income (loss) per share: Basic and diluted $ ) $ ) $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding: Basic and diluted Impact of Prior Period Errors Subsequent to the filing of the Amendment to its Annual Report on Form 10-K for the year ended December 31, 2014, the Company identified errors that existed in its financial statements as of December 31, 2014. These items have been recorded in the first quarter of 2015 in the foregoing condensed consolidated statements of comprehensive income (loss). Had these items been properly recorded in their proper period in 2014, net loss would have decreased by approximately $1.1 million for the three-month period ended March 31, 2015, the six-month period ended June 30, 2015, the nine-month period ended September 30, 2015 and the year ended December 31, 2015. Condensed Statements of Cash Flows ( in thousands, except per share data) Unaudited Three Months Ended March 31, 2015 Previously Adjustments Restated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ $ ) $ ) Adjustments to reconcile net income (loss) to net cash used in operating activities: (Gain) loss on disposal of fixed assets — ) ) Realized loss on investments — Depreciation ) Stock-based compensation expense (benefit) ) Changes in operating assets and liabilities Accounts receivable, net ) ) Inventory, net ) Prepaid expenses, and other assets ) Accounts payable, accrued expenses, and other liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in operating activities ) ) ) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment, net ) ) Proceeds from sale of investments Purchases of investments ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on capital lease obligations ) — ) Proceeds from the exercise of options to purchase common stock — Windfall tax benefit from stock-based compensation ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by financing activities ) NET INCREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents, beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL INFORMATION Cash paid during the period for: Income taxes $ $ $ (A) Previously reported balances are from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. Condensed Statements of Cash Flows ( in thousands, except per share data) Unaudited Six Months Ended June 30, 2015 Previously Adjustments Restated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ $ ) $ ) Adjustments to reconcile net income (loss) to net cash used in operating activities: (Gain) loss on disposal of fixed assets — ) ) Realized and unrealized loss on investments Depreciation ) Stock-based compensation expense (benefit) ) Guaranteed payments related to trading securities ) — Changes in operating assets and liabilities Accounts receivable, net ) ) Inventory, net ) Prepaid expenses, and other current assets ) Accounts payable, accrued expenses, and other liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in operating activities ) ) ) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment, net ) ) Proceeds from sale of investments Purchases of investments ) ) Proceeds from guaranteed payment — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities ) CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on capital lease obligations ) ) ) Proceeds from the exercise of options to purchase common stock ) Windfall tax benefit from stock-based compensation ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by financing activities ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ) Cash and cash equivalents, beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL INFORMATION Cash paid during the period for: Income taxes $ — $ (A) Previously reported balances are from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. Condensed Statements of Cash Flows ( in thousands, except per share data) Unaudited Nine Months Ended September 30, 2015 Previously Adjustments Restated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ $ ) $ ) Adjustments to reconcile net income (loss) to net cash used in operating activities: (Gain) loss on disposal of fixed assets — ) ) Realized and unrealized loss on investments Depreciation ) Stock-based compensation expense (benefit) ) Changes in operating assets and liabilities Accounts receivable, net ) ) Inventory, net ) Prepaid expenses, and other current assets ) Accounts payable, accrued expenses, and other liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in operating activities ) ) ) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment, net ) ) Proceeds from sale of investments ) Purchases of investments ) ) Proceeds from Mesoblast payment — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on capital lease obligations ) ) ) Proceeds from the exercise of options to purchase common stock Repurchases of common stock — ) ) Windfall tax benefit from stock-based compensation ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by financing activities ) NET INCREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents, beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL INFORMATION Cash paid during the period for: Income taxes $ $ — $ NON-CASH FINANCING TRANSACTIONS Cash dividends declared $ $ $ (A) Previously reported balances are from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | (in 000's) Balance at Additions Deductions Balance at Inventory Reserve: 2017 $ $ $ $ 2016 2015 Net Deferred Tax Asset Valuation Allowance: 2017 $ $ — $ ) 2016 — 2015 — |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies | |
Principles of consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Osiris Therapeutics International GmbH, which was formed in 2016. All intercompany transactions have been eliminated in consolidation. Osiris Therapeutics International GmbH does not have any operations. |
Use of Estimates | Use of Estimates We make certain estimates and assumptions in preparing our consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). These estimates and assumptions affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statement and the reported amounts of revenue and expenses for the period presented. Actual results may differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents includes all financial instruments purchased with an initial maturity of three months or less when purchased. |
Investments | Investments All of the Company's investments are classified as "available-for-sale" and are carried at fair value, with the exception of the Mesoblast Limited common stock, which was classified as a trading security (see Note 4). Securities which have been classified as Level 1 are measured using quoted market prices in active markets for identical assets or liabilities while those which have been classified as Level 2 are measured using quoted prices for identical assets and liabilities in markets that are not active (see Note 4). The Company's policy is to classify all investments with contractual maturities within one year as current. Investment income is recognized when earned and reported net of investment expenses. Net unrealized holding gains or losses are excluded from earnings and are reported as "Accumulated other comprehensive income (loss)" in the accompanying consolidated balance sheets and consolidated statements of comprehensive income (loss) until realized, unless the losses are deemed to be other-than-temporary. Realized gains or losses, including any provision for other-than-temporary declines in value, are included in "Other income (expense)" in the accompanying consolidated statements of comprehensive income (loss). If a debt security is in an unrealized loss position and the Company has the intent to sell the debt security, or it is more likely than not that the Company will have to sell the debt security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to other-than-temporary impairment losses recognized in income in the consolidated statements of comprehensive income (loss). For impaired debt securities that the Company does not intend to sell or it is more likely than not that the Company will not have to sell such securities, but the Company expects that it will not fully recover the amortized cost basis, the credit component of the other-than-temporary impairment is recognized in other-than-temporary impairment losses recognized in income in the consolidated statements of comprehensive income (loss) and the non-credit component of the other-than-temporary impairment is recognized in other comprehensive income (loss). The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the debt security. The net present value is calculated by discounting the best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Cash flow estimates are driven by assumptions regarding probability of default, including changes in credit ratings, and estimates regarding timing and amount of recoveries associated with a default. Furthermore, unrealized losses entirely caused by non-credit related factors related to debt securities for which the Company expects to fully recover the amortized cost basis continue to be recognized in accumulated other comprehensive income (loss). As of December 31, 2015, 2016 and 2017, there were no unrealized losses that the Company believed to be other-than-temporary. |
Trade Receivable, net | Trade Receivables, net Trade receivables, net are reported net of an allowance for doubtful accounts. We consider receivables outstanding longer than the time specified in the respective customer's contract to be past due. In making the determination of the appropriate allowance for doubtful accounts, management considers prior experience with customers, analysis of accounts receivable aging reports, changes in customer payment patterns, and historical write-offs. |
Inventory, net | Inventory, net Inventory, net consists of raw materials, products in process, finished goods available for sale and products held by customers under consignment sales arrangements. We determine our inventory values using the first-in, first-out method. The Company periodically reviews its quantities of inventories on hand and compares these amounts to the expected usage of each particular product. The Company records as a charge to Cost of revenue any amounts required to reduce the carrying value of inventories to net realizable value. Inventory excludes units that we anticipate distributing for clinical evaluation. |
Property and Equipment, net | Property and Equipment, net Property and equipment, net are valued at cost less accumulated depreciation. Depreciation is recognized on a straight-line basis over the estimated useful lives of the related assets and is allocated between cost of sales and selling, general and administrative expenses. Maintenance and repairs, which do not improve or extend the life of the respective assets, are charged to expense as incurred. Assets recorded under capital leases are included in property and equipment and are amortized using the straight-line method over the shorter of the estimated useful lives of the assets or the lease term and is recorded in depreciation expense in the consolidated statements of comprehensive income (loss). We review long-lived assets, which consist solely of property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable based on the criteria for accounting for the impairment or disposal of long-lived assets under Accounting Standard Code ("ASC") Topic 360, Property, Plant and Equipment . These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans, or changes in anticipated future cash flows. If an impairment indicator is present, we evaluate recoverability by a comparison of the carrying amount of the assets group to future undiscounted net cash flows expected to be generated by the assets group. Assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of the cash flows generated by other asset groups. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, an impairment loss is recognized for the difference between the fair value and carrying value of assets within the group. Fair value is generally determined by estimates of discounted cash flows. The discount rate used in any estimate of discounted cash flows would be the rate required for a similar investment of like risk. There were no impairment losses recognized during the years ended December 31, 2017, 2016 or 2015. |
Accrued Liabilities | Accrued liabilities As of December 31, 2017, 2016 and 2015, accrued liabilities consisted of: December 31, (in $000's) 2017 2016 2015 Payroll and related $ $ $ Commissions Accounting and audit fees Lease liabilities SEC action(1) — — Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Included as a long-term liability as of December 31, 2015. (See Note 13). |
Revenue Recognition | Revenue Recognition We recognize revenue from sales of our products when title and the risk of loss pass to the customer, persuasive evidence of an arrangement exists, sales amounts are fixed or determinable and collectability is reasonably assured. In situations where collection of receivables is not reasonably assured, we recognize revenue upon the receipt of cash. Our policy is to recognize revenue when title to the product, ownership and risk of loss transfer to the customer, which is either the date of receipt by the customer or when we receive appropriate notification that the product has been used or implanted. A provision for estimated returns, discounts, rebates and other incentives is recorded as a reduction of revenues in the same period that the revenue is recognized. We sell our products through our internal direct sales force and our distributor network. Our distributors typically act as our selling agents, selling our products to end-use (clinical provider) customers in exchange for earning sales commissions and administrative support fees. Revenue from sales to distributors who act as agents to Osiris is recorded at the sales price to the end-use customer, and the commission expense and administrative support fees paid to the distributor are recorded as sales and marketing expenses. At times, we enter into revenue arrangements that include multiple elements, including exclusivity provisions, participation in joint steering committees, as well as sales of our products and provisioning of various other services. We evaluate each deliverable to determine whether it represents a separate unit of accounting based on the following criteria: (i) if the delivered item has value to the customer on a standalone basis, and (ii) if the contract includes a general right of return relative to the delivered item, and delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the vendor. Revenue is then allocated to the units of accounting based on an estimate of each unit's relative selling price and is recognized based on the underlying characteristics of each element. In December 2014, we entered into exclusive distribution agreements with a subsidiary of Stryker Corporation for the marketing and distribution of BIO 4 , previously branded by the Company as OvationOS, our viable bone matrix allograft. Pursuant to the agreement, Stryker has been granted worldwide distribution rights to the product and any improvements, for all surgical applications. We are responsible for supply, manufacturing, inventory management, shipments to customers, continued research and product improvement activities. We maintain all inventory and collection risk. Stryker never takes possession of the product. We recognize revenue as principal in the arrangement, for the amounts charged to end-use customers for the allografts. Commissions and administrative support fees paid to Stryker are accounted for as selling expenses, as Stryker is acting as an outside sales and marketing agent for the Company. We received an up-front payment of $5.0 million from Stryker in 2015, related to its initial exclusivity, and are entitled to additional fees upon any exercise by Stryker of its right to extend the initial term, whether on an exclusive or non-exclusive basis. The exclusivity fee is recognized as a reduction of commission expense over the four-year term of the agreement. At December 31, 2017, 2016 and 2015, we had remaining balances of $1.4 million, $2.5 million, and $3.8 million, respectively, related to the exclusivity payment of which $1.25 million was classified as other current liabilities in the consolidated balance sheets at the end of each year. The long-term portion of the exclusivity payment is included in other long-term liabilities in the consolidated balance sheets at the end of each year. In October 2014, we entered into an exclusive marketing and sales representative agreement for our cartilage product, Cartiform, with Arthrex. The agreement provides Arthrex with exclusive commercial distribution rights to Cartiform beginning in 2015. We are responsible for manufacturing, continued research and product improvement activities. Pursuant to the agreement, Arthrex is entitled to a certain commission on Cartiform sales. We maintain all inventory and collection risk. We recognize revenue as principal in the agreement, for the amounts charged to end-use customers for the allografts. We account for the commission payment to Arthrex as sales and marketing expense, as Arthrex is acting as outside sales and marketing agent for the Company. |
Research and Development Costs | Research and Development Costs R&D expenditures are charged to expense as incurred. R&D expenses include the costs of certain personnel, preclinical studies, clinical trials, regulatory affairs, biostatistical data analysis, and manufacturing costs for development of drug materials for use in clinical trials. We accrue R&D expenses for activity as incurred during the fiscal year and prior to receiving invoices from clinical sites and third party clinical research organizations. |
Share-Based Compensation | Share-Based Compensation We account for share-based employee compensation under the fair value recognition and measurement provisions in accordance with applicable accounting standards, which require all share-based payments to employees, including grants of stock options, to be measured based on the grant date fair value of the awards, with the resulting expense generally recognized on an accelerated basis over the period during which the employee is required to perform service in exchange for the award. |
Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted. The measurement of a deferred tax asset is reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. We use a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. We recognize interest and penalties accrued on any unrecognized tax exposures as a component of income tax expense. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted into law and the new legislation contains certain key tax provisions that affected the Company, including a reduction of the corporate income tax rate to 21% effective January 1, 2018, the repeal of Alternative Minimum Tax ("AMT") (and changes to the utilization of AMT credit carryforwards that exist at December 31, 2017), among others. We are required to recognize the effect of the tax law changes in the period of enactment, such as re-measuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities. In December 2017, the Securities and Exchange Commission (the "SEC") issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the Tax Act was passed late in the fourth quarter of 2017, and ongoing guidance and accounting interpretation is expected over the next 12 months, we consider the deferred tax re-measurements and other items to be incomplete due to the forthcoming guidance and our ongoing analysis of final year-end data and tax positions. We expect to complete our analysis within the measurement period in accordance with SEC Staff Accounting Bulletin No. 118, although we do not expect there to be any adjustment to the income tax expense on our statements of operations during the measurement period. See Note 12 for additional information. |
Concentration of Risk | Concentration of Risk We maintain cash with high credit quality financial institutions and do not believe we are exposed to a significant credit risk, although such balances exceed federally insured limits. We also invest excess cash in investment-grade securities, generally with average maturities of approximately two years. |
Accounting Pronouncements | Accounting Pronouncements Adopted In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-15, " Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" ("ASU 2014-15"), that requires management to evaluate whether there are conditions and events that raise substantial doubt about the Company's ability to continue as a going concern within one year after the financial statements are issued or available to be issued on both an interim and annual basis. Management is required to provide certain footnote disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the Company's ability to continue as a going concern. ASU 2014-15 was effective for all entities for the annual period ending after December 15, 2016, and for annual and interim periods thereafter, with early adoption permitted. We adopted ASU 2014-15 as of the annual period ended December 31, 2016, and its adoption did not have any significant impact on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory . This standard replaces the lower of cost or market test with a lower of cost or net realizable value test when cost is determined on a first-in, first-out or average cost basis. We adopted this standard in the first quarter of 2017 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes . The new guidance requires that all deferred taxes be presented as noncurrent, rather than separated into current and noncurrent amounts. We adopted this guidance in the first quarter of fiscal year 2015 on a prospective basis. The adoption of this standard did not have a material impact on our financial position. In March 2016, the FASB issued ASU 2016-09, " Compensation—Stock Compensation Topic 718: Improvements to Employee Share-Based Payment Accounting" , which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. We adopted this guidance as of January 1, 2017. From January 1, 2017 onward, in accordance with the new guidance, no excess tax benefits or tax deficiencies will be recognized in additional paid in capital. We presented the impact of classifying excess tax benefits as an operating activity in the consolidated statement of cash flows beginning in 2017 and prior periods were not adjusted. We will continue to estimate forfeitures and recognize expense, net of estimated forfeitures. The adoption of the remaining amendments did not have a material impact on our consolidated financial statements. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, " Revenue from Contracts with Customers (Topic 606)". The ASU outlines a single set of comprehensive principles for recognizing revenue under U.S. GAAP and supersedes existing revenue recognition guidance. The main principle of the ASU is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company will apply the ASU and its related updates on a modified retrospective basis as of January 1, 2018. The Company has completed a comprehensive assessment of customer contracts and evaluated the effect the ASU will have on the Company's financial statements and related disclosures. The Company has concluded that the adoption of the ASU will not have a material impact on the consolidated financial statements. As such, no cumulative catch-up adjustment will be recorded. The primary impact of adoption will be expanded disclosures that will enable users to better understand the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. Additionally, the Company has made appropriate revisions to its accounting policies, procedures, and the design of our internal controls, which took effect starting January 1, 2018, to comply with the effective date of the standard. In January 2016, the FASB issued ASU 2016-01, " Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, " which requires various changes to the measurement and disclosure of equity investments. Among a number of changes, ASU 2016-01 will eliminate the available-for-sale classification for equity securities with readily determinable fair values, and any changes in fair value of those equity securities will be included as an adjustment to earnings, rather than other comprehensive income (loss). The ASU will be adopted by the Company in the first quarter of 2018. As the Company does not hold any equity securities at December 31, 2017, the ASU will not have any impact upon adoption. In February 2016, the FASB issued ASU No. 2016-02, " Leases (Topic 842)". The ASU requires, among other things, a lessee to recognize assets and liabilities associated with the rights and obligations attributable to most leases but also recognize expenses similar to current lease accounting. The ASU also requires certain qualitative and quantitative disclosures designed to assess the amount, timing and uncertainty of cash flows arising from leases, along with additional key information about leasing arrangements. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The new guidance must be adopted using a modified retrospective transition and provides for certain practical expedients. The Company is in the process of analyzing initial data gathered to evaluate the impact of adopting the ASU on its consolidated financial statements, the related systems required to capture the increased reporting and disclosures associated with the ASU, and its use of practical expedients. The Company will apply the ASU and its related updates on a modified retrospective basis as of January 1, 2019. The adoption of the guidance will likely have a material effect on the consolidated balance sheets, resulting in the recording of an operating lease asset and liability. In June 2016, the FASB issued ASU 2016-13, " Financial Instruments—Credit Losses Topic 326" . The guidance eliminates the probable initial recognition threshold that was previously required prior to recognizing a credit loss on financial instruments. The credit loss estimate can now reflect an entity's current estimate of all future expected credit losses. Under the previous guidance, an entity only considered past events and current conditions. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of certain amendments of this guidance must be applied on a modified retrospective basis and the adoption of the remaining amendments must be applied on a prospective basis. We currently expect that the adoption of this guidance will likely change the way we assess the collectability of our receivables and recoverability of other financial instruments. We have not yet begun to evaluate the specific impacts of this guidance nor have we determined the manner in which we will adopt this guidance. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 203)" . The ASU addresses eight specific cash flow issues and clarifies their presentation and classification in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017 and is to be applied retrospectively. The Company concluded that the adoption of the ASU will not have a material impact on the consolidated financial statements and will apply the ASU and its related updates beginning in the first quarter of 2018. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies | |
Schedule of accrued liabilities | December 31, (in $000's) 2017 2016 2015 Payroll and related $ $ $ Commissions Accounting and audit fees Lease liabilities SEC action(1) — — Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Included as a long-term liability as of December 31, 2015. (See Note 13). |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments. | |
Schedule of investments | December 31, 2017 (in $000's) Amortized Gross Gross Estimated U.S. government agencies $ $ — $ ) $ Obligations of government sponsored enterprises(1) — ) Corporate debt securities ) Foreign government bonds — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes investments in notes issued by the Federal Home Loan Bank and the Federal Farm Credit Bank. December 31, 2016 (in $000's) Amortized Gross Gross Estimated U.S. government agencies $ $ $ ) $ Obligations of government sponsored enterprises(1) — ) Corporate debt securities ) Foreign government bonds ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes investments in notes issued by the Federal Home Loan Bank and the Federal Farm Credit Bank. December 31, 2015 (in $000's) Amortized Gross Gross Estimated U.S. government agencies $ $ — $ ) $ Obligations of government sponsored enterprises(1) — ) Corporate debt securities ) Foreign government bonds ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes investments in notes issued by the Federal Home Loan Bank and the Federal Farm Credit Bank. |
Summary of securities with unrealized losses | December 31, 2017 Less than 12 Months 12 Months or More Total (in $000's) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. government agencies $ $ ) $ $ ) $ $ ) Obligations of government sponsored enterprises(1) ) ) ) Corporate debt securities ) ) ) Foreign government bonds ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes investments in notes issued by the Federal Home Loan Bank and the Federal Farm Credit Bank. December 31, 2016 Less than 12 Months 12 Months or More Total (in $000's) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. government agencies $ $ — $ $ ) $ $ ) Obligations of government sponsored enterprises(1) — — ) ) Corporate debt securities — Foreign government bonds ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes investments in notes issued by the Federal Home Loan Bank and the Federal Farm Credit Bank. December 31, 2015 Less than 12 Months 12 Months or More Total (in $000's) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. government agencies $ $ ) $ $ ) $ $ ) Obligations of government sponsored enterprises(1) — — ) ) Corporate debt securities ) ) ) Foreign government bonds — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes investments in notes issued by the Federal Home Loan Bank and the Federal Farm Credit Bank. |
Schedule of maturities of investments available for sale | December 31, 2017 (in $000's) Cost Fair Value Maturities: Within 1 year $ $ After 1 year through 5 years ​ ​ ​ ​ ​ ​ ​ ​ Total investments available for sale $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Inventory, net (Tables)
Inventory, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory, net. | |
Schedule of inventory, net | December 31, (in $000's) 2017 2016 2015 Raw materials and supplies $ $ $ Work-in-process Finished goods ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reserve for excess and obsolete inventory ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inventory, net $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property and Equipment, net | |
Schedule of property and equipment, net | December 31, Depreciable Life (in $000's) 2017 2016 2015 Laboratory and manufacturing equipment 3-7 $ $ $ Computer hardware, furniture and fixtures 3-7 Leasehold improvements (A) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated depreciation and amortization ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property and equipment, net $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (A) Shorter of economic life or lease term. |
Share Based Compensation and 28
Share Based Compensation and Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-Based Compensation and Employee Benefit Plans | |
Summary of stock option activity | Number of Weighted Weighted Average Aggregate Outstanding at January 1, 2015 $ Granted Exercised ) Forfeited or cancelled ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2015 Granted Exercised ) Forfeited or cancelled ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding December 31, 2016 Granted Exercised ) Forfeited or cancelled ) Expired ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2017 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested at December 31, 2017 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested and expected to vest at December 31, 2017 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) The aggregate intrinsic value is based upon the difference between the Company's closing stock price at the date of the Consolidated Balance Sheet and the exercise price of the stock option for in-the-money stock options. The intrinsic value of outstanding stock options fluctuates based upon the trading value of the Company's Common stock. |
Summary of stock options outstanding by price range | Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted Average Weighted Number Weighted $4.01-$7.25 $ $ $7.26-$12.75 $12.76-$16.00 $16.01-$19.36 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of assumptions used to estimate fair value of stock options granted | Year ended 2017 2016 2015 Interest rate % % % Dividend yield % % % Term (in years) Volatility % % % |
Schedule of share-based compensation expense (benefit) | Year ended December 31, (in $000's) 2017 2016 2015 Cost of product revenue $ $ $ Sales and marketing ) ) Research and development General and administrative ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Financial Instruments and Fai29
Financial Instruments and Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments and Fair Value | |
Schedule of assets and liabilities measured at fair value on a recurring basis | December 31, 2017 (in $000's) Level 1 Level 2 Level 3 Total Assets Investments: Available for Sale Securities U.S. government agencies $ — $ $ — Obligations of government sponsored enterprises — — Corporate debt securities — — Foreign government bonds — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total investments $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2016 (in $000's) Level 1 Level 2 Level 3 Total Assets Investments: Available for Sale Securities U.S. government agencies $ — $ $ — $ Obligations of government sponsored enterprises — — Corporate debt securities — — Foreign government bonds — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total investments $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015 (in $000's) Level 1 Level 2 Level 3 Total Assets Investments: Available for Sale Securities U.S. government agencies $ — $ $ — $ Obligations of government sponsored enterprises — — Corporate debt securities — — Foreign government bonds — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total investments $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes | |
Schedule of benefit and expense for income taxes | Year ended December 31, (in $000's) 2017 2016 2015 Current: Federal $ ) $ — $ ) State ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current provision ) Deferred: Federal — ) — State — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred (benefit) expense — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax (benefit) expense $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of reconciliation of the federal statutory rate to the effective income tax rate | Year ended December 31, 2017 2016 2015 Federal income tax rate % % % State income taxes % % % Nondeductible expenses )% )% )% Stock-based compensation )% )% )% Domestic manufacturing deduction — — % Valuation allowance % )% % Credits % % )% Change in tax rate )% )% % Other )% % )% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective tax rate % )% )% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of components of net deferred tax assets and liabilities | December 31, (in $000's) 2017 2016 2015 Deferred tax assets arising from: Net operating losses and credits $ $ $ Inventory adjustments Accrued expenses and reserves Property and equipment Stock compensation Deferred rent Deferred revenue — Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax assets Less: valuation allowance ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets Deferred tax liabilities arising from: Insurance receivable ) ) ) Other — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset (liability) $ — $ — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of aggregate change in the balance of unrecognized tax benefits | Year ended 2017 2016 2015 Balance, beginning of year $ $ $ Increase in current year position — Decrease in prior year position — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, end of year $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies | |
Schedule of minimum obligations under non-cancellable operating leases | (in $000's) 2018 $ 2019 2020 2021 2022 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Significant Distributors (Table
Significant Distributors (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Revenue | |
Significant Customers | |
Schedule of concentration risk | Percentage of Distributor 2017 2016 2015 A % % % B % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Accounts Receivable | |
Significant Customers | |
Schedule of concentration risk | Percentage of December 31, Distributor 2017 2016 2015 A % % % |
Selected Quarterly Data (Unau33
Selected Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Selected Quarterly Data (Unaudited) | |
Schedule of unaudited quarterly results | Unaudited March 31, June 30, September 30, Assets Current Assets Cash and cash equivalents $ $ $ Short-term investments Trade receivables, net Inventory, net Insurance receivable Prepaid expenses and other current assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets Property and equipment, net Other assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Equity Current liabilities Accounts payable $ $ $ Accrued liabilities Accrued shareholder litigation Other current liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities Other long-term liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity Common stock Additional paid-in capital Accumulated other comprehensive income (loss) ) ) Accumulated deficit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities equity $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unaudited 2017 Quarter Quarter Six Months Quarter Nine Months Quarter Revenue $ $ $ $ $ $ Cost of revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Research and development Sales and marketing General and administrative ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations ) ) ) ) ) Other income (expense) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes from continuing operations ) ) ) ) Income tax benefit (expense) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) from continuing operations ) ) ) ) Discontinued operations, net of tax — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) Other comprehensive income (loss) Unrealized gain (loss) on investments ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income (loss) $ ) $ $ ) $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share from continuing operations: Basic $ ) $ $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted $ ) $ $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share from discontinued operations: Basic $ — $ — $ — $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted $ — $ — $ — $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) per share: Basic $ ) $ $ ) $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted $ ) $ $ ) $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding: Basic ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unaudited 2017 Three Months Six Months Nine Months CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ ) $ ) $ Adjustments to reconcile net income (loss) to net cash used in operating activities: Receipt of Mesoblast common stock — — ) Loss on disposal of fixed assets — Realized loss on investments Depreciation Stock-based compensation expense Changes in operating assets and liabilities Accounts receivable, net ) Inventory, net ) ) Prepaid expenses, and other current assets ) ) ) Accounts payable, accrued expenses, and other liabilities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in operating activities ) ) ) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment, net ) ) ) Proceeds from sale of investments Purchases of investments ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the exercise of options to purchase common stock ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ) ) Cash and cash equivalents, beginning of period ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL INFORMATION Cash paid during the period for: Income tax $ $ $ Unaudited March 31, June 30, September 30, Assets Current Assets Cash and cash equivalents $ $ $ Short-term investments Trade receivables, net Inventory, net Prepaid expenses and other current assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets Property and equipment, net Insurance receivable Other assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Equity Current liabilities Accounts payable $ $ $ Accrued liabilities Other current liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities Accrued shareholder litigation Other long-term liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities Equity Common stock Additional paid-in capital Accumulated other comprehensive income Accumulated deficit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and equity $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unaudited 2016 Quarter Quarter Six Months Quarter Nine Months Quarter Revenue $ $ $ $ $ $ Cost of revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Research and development Sales and marketing General and administrative ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from operations ) ) ) ) ) Other income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) ) ) ) ) Income tax (expense) benefit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ) ) Other comprehensive income (loss) Unrealized gain (loss) on investments ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income (loss) $ ) $ ) $ ) $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic and diluted net loss per share: Basic and diluted $ ) $ ) $ ) $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding: Basic Diluted Unaudited 2016 Three Months Six Months Nine Months CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ ) $ ) $ ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Loss on disposal of fixed assets Realized gain on investments — — ) Depreciation Stock-based compensation expense (benefit) ) ) ) Changes in operating assets and liabilities Accounts receivable, net ) ) ) Inventory, net ) ) ) Prepaid expenses, and other current assets ) Accounts payable, accrued expenses, and other liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in operating activities ) ) ) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment, net ) ) ) Proceeds from sale of investments Purchases of investments ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in investing activities ) ) ) CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on capital lease obligations ) ) ) Repurchases of common stock ) ) ) Proceeds from the exercise of options to purchase common stock — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in financing activities ) ) ) NET DECREASE IN CASH AND CASH EQUIVALENTS ) ) ) Cash and cash equivalents, beginning of period ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL INFORMATION Cash paid during the period for: Income taxes $ $ $ |
Schedule of effects of restatement | Unaudited March 31, 2015 Previously Adjustments Restated Assets Current Assets Cash and cash equivalents $ $ $ Short- term investments ) Trading securities — Trade receivables, net ) Inventory, net ) Prepaid expenses and other current assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property and equipment, net Other assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Equity Current liabilities Accounts payable $ $ $ Accrued liabilities Other current liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities Other long-term liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity Common stock — Additional paid-in capital ) Accumulated other comprehensive loss ) ) Accumulated deficit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and equity $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (A) Previously reported balances are from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. Unaudited June 30, 2015 Previously Adjustments Restated Assets Current Assets Cash and cash equivalents $ $ $ Short- term investments ) Trading securities — Trade receivables, net ) Inventory, net ) Prepaid expenses and other current assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property and equipment, net Other assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Equity Current liabilities Accounts payable $ $ ) $ Accrued liabilities Other current liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities Other long-term liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity Common stock — Additional paid-in capital ) Accumulated other comprehensive loss ) ) Accumulated deficit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and equity $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (A) Previously reported balances are from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. Unaudited September 30, 2015 Previously Adjustments Restated Assets Current Assets Cash and cash equivalents $ $ $ Short- term investments ) Trading securities — Trade accounts receivable, net of reserves ) Inventory, net ) Prepaid expenses and other current assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property and equipment, net ) Other assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Equity Current liabilities Accounts payable $ $ ) $ Accrued liabilities Dividends payable — Other current liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities Other long-term liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity Common stock — Additional paid-in capital ) Accumulated other comprehensive loss ) — ) Accumulated deficit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and equity $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (A) Previously reported balances are from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. Unaudited Previously Reported(A) 2015 Quarter Quarter Six Months Quarter Nine Months Quarter Revenue $ $ $ $ $ (B) Cost of revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Research and development Sales and marketing(C) General and administrative — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from operations Other income (expense) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) Income tax (expense) benefit ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) Other comprehensive income (loss) Unrealized gain (loss) on investments ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income (loss) $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic and diluted net income (loss) per share: Basic and diluted $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (A) Previously reported balances are from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. (B) Fourth quarter 2015 information is being presented for the first time. (C) Sales and marketing, as previously reported, also included general and administrative expense of $3,482, $6,278, and $5,463 for the quarters ended March 31, June 30 and September 30, respectively. These balances have been reclassified to conform to the current year presentation. Unaudited Adjustments 2015 Quarter Quarter Six Months Quarter Nine Months Quarter Revenue $ ) $ ) $ ) $ ) $ ) (A) Cost of revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Research and development ) ) ) ) ) Sales and marketing General and administrative ) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss from operations ) ) ) ) ) Other income (expense) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) ) ) ) ) Income tax (expense) benefit ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ) ) Other comprehensive loss Unrealized gain (loss) on investments — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income (loss) $ ) $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (A) Fourth quarter 2015 information is being presented for the first time. Unaudited Restated 2015 Quarter Quarter Six Months Quarter Nine Months Quarter Revenue $ $ $ $ $ $ Cost of revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses Research and development Sales and marketing General and administrative Settlement of SEC and shareholder actions — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss from operations ) ) ) ) ) ) Other income (expense) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss before income taxes ) ) ) ) ) ) Income tax (expense) benefit ) ) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Loss ) ) ) ) ) ) Other comprehensive income (loss) Unrealized gain (loss) on investments ) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income Loss $ ) $ ) $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic and diluted net income (loss) per share: Basic and diluted $ ) $ ) $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding: Basic and diluted Unaudited Three Months Ended March 31, 2015 Previously Adjustments Restated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ $ ) $ ) Adjustments to reconcile net income (loss) to net cash used in operating activities: (Gain) loss on disposal of fixed assets — ) ) Realized loss on investments — Depreciation ) Stock-based compensation expense (benefit) ) Changes in operating assets and liabilities Accounts receivable, net ) ) Inventory, net ) Prepaid expenses, and other assets ) Accounts payable, accrued expenses, and other liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in operating activities ) ) ) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment, net ) ) Proceeds from sale of investments Purchases of investments ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on capital lease obligations ) — ) Proceeds from the exercise of options to purchase common stock — Windfall tax benefit from stock-based compensation ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by financing activities ) NET INCREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents, beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL INFORMATION Cash paid during the period for: Income taxes $ $ $ (A) Previously reported balances are from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. Unaudited Six Months Ended June 30, 2015 Previously Adjustments Restated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ $ ) $ ) Adjustments to reconcile net income (loss) to net cash used in operating activities: (Gain) loss on disposal of fixed assets — ) ) Realized and unrealized loss on investments Depreciation ) Stock-based compensation expense (benefit) ) Guaranteed payments related to trading securities ) — Changes in operating assets and liabilities Accounts receivable, net ) ) Inventory, net ) Prepaid expenses, and other current assets ) Accounts payable, accrued expenses, and other liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in operating activities ) ) ) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment, net ) ) Proceeds from sale of investments Purchases of investments ) ) Proceeds from guaranteed payment — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities ) CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on capital lease obligations ) ) ) Proceeds from the exercise of options to purchase common stock ) Windfall tax benefit from stock-based compensation ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by financing activities ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ) Cash and cash equivalents, beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL INFORMATION Cash paid during the period for: Income taxes $ — $ (A) Previously reported balances are from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. Unaudited Nine Months Ended September 30, 2015 Previously Adjustments Restated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ $ ) $ ) Adjustments to reconcile net income (loss) to net cash used in operating activities: (Gain) loss on disposal of fixed assets — ) ) Realized and unrealized loss on investments Depreciation ) Stock-based compensation expense (benefit) ) Changes in operating assets and liabilities Accounts receivable, net ) ) Inventory, net ) Prepaid expenses, and other current assets ) Accounts payable, accrued expenses, and other liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in operating activities ) ) ) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment, net ) ) Proceeds from sale of investments ) Purchases of investments ) ) Proceeds from Mesoblast payment — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on capital lease obligations ) ) ) Proceeds from the exercise of options to purchase common stock Repurchases of common stock — ) ) Windfall tax benefit from stock-based compensation ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by financing activities ) NET INCREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents, beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL INFORMATION Cash paid during the period for: Income taxes $ $ — $ NON-CASH FINANCING TRANSACTIONS Cash dividends declared $ $ $ (A) Previously reported balances are from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. |
Description of Business (Detail
Description of Business (Details) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2017agreement | Dec. 31, 2017segment | |
Description of Business | ||
Number of operating segments | segment | 1 | |
Number of new exclusive distribution agreements | agreement | 2 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Trade receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OTTI investment losses | |||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation of Long-lived Assets | |||
Impairment losses | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Accrued liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 |
Payables and Accruals | ||||||||||||
Payroll and related | $ 1,980 | $ 2,170 | $ 1,811 | |||||||||
Commissions | 5,651 | 4,614 | 3,754 | |||||||||
Accounting and audit fees | 905 | 1,277 | 281 | |||||||||
Lease liabilities | 120 | 67 | 62 | |||||||||
SEC action | 1,500 | |||||||||||
Other | 743 | 1,373 | 1,413 | |||||||||
Total | $ 9,399 | $ 9,991 | $ 10,352 | $ 9,766 | $ 11,001 | $ 9,303 | $ 10,508 | $ 9,454 | $ 7,321 | $ 8,370 | $ 7,547 | $ 5,787 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Dec. 31, 2015 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | |
Revenue Recognition | ||||||||||||
Period of agreement over which revenue is recognized | 4 years | |||||||||||
Other current liabilities | $ 1,934 | $ 1,791 | $ 2,066 | $ 1,878 | $ 1,960 | $ 1,816 | $ 1,850 | $ 1,650 | $ 1,663 | $ 1,517 | $ 1,618 | $ 1,398 |
Stryker | ||||||||||||
Revenue Recognition | ||||||||||||
Other Liabilities | 1,400 | 3,800 | 2,500 | |||||||||
Other current liabilities | $ 1,250 | 1,250 | $ 1,250 | |||||||||
Up-front payment | Stryker | ||||||||||||
Revenue Recognition | ||||||||||||
Initial exclusivity fee Stryker | $ 5,000 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Income Taxes (Details) | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income per Common Share | ||||
Federal income tax rate (as a percent) | 35.00% | 35.00% | 35.00% | |
Forecast | ||||
Income per Common Share | ||||
Federal income tax rate (as a percent) | 21.00% |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Concentration of Risk (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies | |
Average maturities of investment-grade-securities | 2 years |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Investments available for sale | |||
Amortized cost | $ 24,982 | $ 23,884 | $ 24,952 |
Gross unrealized gains | 21 | 40 | 3 |
Gross unrealized losses | (196) | (95) | (146) |
Estimated fair value | 24,807 | 23,829 | 24,809 |
U.S. government agencies | |||
Investments available for sale | |||
Amortized cost | 6,077 | 5,124 | 6,613 |
Gross unrealized gains | 3 | ||
Gross unrealized losses | (73) | (32) | (12) |
Estimated fair value | 6,004 | 5,095 | 6,601 |
Obligations of government sponsored enterprises | |||
Investments available for sale | |||
Amortized cost | 3,737 | 2,601 | 2,559 |
Gross unrealized losses | (31) | (25) | (35) |
Estimated fair value | 3,706 | 2,576 | 2,524 |
Corporate debt securities | |||
Investments available for sale | |||
Amortized cost | 12,479 | 11,983 | 11,641 |
Gross unrealized gains | 21 | 29 | 1 |
Gross unrealized losses | (66) | (27) | (82) |
Estimated fair value | 12,434 | 11,985 | 11,560 |
Foreign government bonds | |||
Investments available for sale | |||
Amortized cost | 2,689 | 4,176 | 4,139 |
Gross unrealized gains | 8 | 2 | |
Gross unrealized losses | (26) | (11) | (17) |
Estimated fair value | $ 2,663 | $ 4,173 | $ 4,124 |
Investments - Unrealized Losses
Investments - Unrealized Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value | |||
Less than 12 Months | $ 4,888 | $ 4,358 | $ 5,603 |
12 Months or more | 19,919 | 19,471 | 19,206 |
Total | 24,807 | 23,829 | 24,809 |
Unrealized Gain (Loss), net | |||
Less than 12 Months | (15) | (9) | |
Less than 12 Months Gain | (10) | ||
12 Months or more | (160) | (65) | (134) |
Total | (175) | (55) | (143) |
U.S. government agencies | |||
Fair Value | |||
Less than 12 Months | 1,073 | 400 | 4,174 |
12 Months or more | 4,931 | 4,695 | 2,427 |
Total | 6,004 | 5,095 | 6,601 |
Unrealized Gain (Loss), net | |||
Less than 12 Months | (3) | (4) | |
12 Months or more | (70) | (30) | (7) |
Total | (73) | (30) | (11) |
Obligations of government sponsored enterprises | |||
Fair Value | |||
Less than 12 Months | 1,298 | ||
12 Months or more | 2,408 | 2,576 | 2,524 |
Total | 3,706 | 2,576 | 2,524 |
Unrealized Gain (Loss), net | |||
Less than 12 Months | (6) | ||
12 Months or more | (25) | (25) | (35) |
Total | (31) | (25) | (35) |
Corporate debt securities | |||
Fair Value | |||
Less than 12 Months | 1,920 | 1,516 | 1,429 |
12 Months or more | 10,514 | 10,470 | 10,132 |
Total | 12,434 | 11,986 | 11,561 |
Unrealized Gain (Loss), net | |||
Less than 12 Months | (3) | (5) | |
Less than 12 Months Gain | 3 | ||
12 Months or more | (43) | (76) | |
Total | (46) | (81) | |
Total gain | 3 | ||
Foreign government bonds | |||
Fair Value | |||
Less than 12 Months | 597 | 2,442 | |
12 Months or more | 2,066 | 1,730 | 4,123 |
Total | 2,663 | 4,172 | 4,123 |
Unrealized Gain (Loss), net | |||
Less than 12 Months | (3) | ||
Less than 12 Months Gain | 7 | ||
12 Months or more | (22) | (10) | (16) |
Total | $ (25) | $ (3) | $ (16) |
Investments - Maturities (Detai
Investments - Maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cost | |||
Maturities Within 1 year | $ 4,904 | ||
After 1 year through 5 years | 20,078 | ||
Cost of investments available for sale | 24,982 | ||
Fair Value | |||
Maturities Within 1 year | 4,889 | ||
After 1 year through 5 years | 19,918 | ||
Fair value of investments available for sale | 24,807 | $ 23,829 | $ 24,809 |
Realized losses, net of investment income | (2) | $ (8) | (2,500) |
Realized losses | $ 1,900 | $ 2,600 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jul. 31, 2017 | May 31, 2015 | Dec. 31, 2017 | Sep. 30, 2017 | Apr. 30, 2014 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2015 | Oct. 31, 2013 | |
Discontinued operations, net of tax | $ 210 | $ 9,811 | $ 9,811 | $ 10,021 | |||||
Income tax expense on discontinued operations | 300 | ||||||||
Trading securities, Realized loss | 1,900 | $ 2,600 | |||||||
Therapeutics segment | |||||||||
Value of common stock received for achievement of milestones, net of tax | $ 10,000 | ||||||||
Cash received for achievement of milestones, net of tax | $ 350 | ||||||||
Therapeutics segment | Other Income | |||||||||
Trading securities, Realized loss | $ 1,900 | ||||||||
Purchase Agreement with Mesoblast | Therapeutics segment | |||||||||
Initial consideration | $ 50,000 | ||||||||
Contingent Consideration | $ 50,000 | ||||||||
Total initial consideration paid in cash | $ 35,000 | ||||||||
Initial consideration paid in ordinary shares | $ 15,000 | ||||||||
Amount of cash received for the difference between the market value and the agreed upon amount receivable for release of restricted shares | $ 6,200 | ||||||||
Proceeds from sale | 6,800 | ||||||||
Purchase Agreement with Mesoblast | Therapeutics segment | Other Income | |||||||||
Trading securities, Realized loss | $ 2,600 |
Inventory, net (Details)
Inventory, net (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 |
Inventory, net | ||||||||||||
Raw materials and supplies | $ 1,330 | $ 1,406 | $ 1,054 | |||||||||
Work-in-process | 5,605 | 6,880 | 4,104 | |||||||||
Finished goods | 6,350 | 5,524 | 7,022 | |||||||||
Total gross inventory | 13,285 | 13,810 | 12,180 | |||||||||
Reserve for excess and obsolete inventory | (2,007) | (2,444) | (2,603) | |||||||||
Inventory, net | 11,278 | $ 12,414 | $ 11,633 | $ 11,199 | 11,366 | $ 10,344 | $ 9,785 | $ 10,371 | 9,577 | $ 9,472 | $ 9,350 | $ 9,267 |
Consigned Inventory | ||||||||||||
Inventory, net | ||||||||||||
Finished goods | 1,500 | 1,800 | 1,700 | |||||||||
Reserve for excess and obsolete inventory | $ (600) | $ (1,200) | $ (1,000) |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | |
Property and Equipment, net | ||||||||||||
Property and equipment, gross | $ 10,561 | $ 8,676 | $ 7,541 | |||||||||
Accumulated depreciation and amortization | (6,974) | (6,286) | (5,464) | |||||||||
Property and equipment, net | 3,587 | 2,390 | 2,077 | $ 2,467 | $ 2,242 | $ 2,281 | $ 2,478 | $ 2,066 | $ 2,113 | $ 2,070 | $ 2,141 | $ 2,176 |
Depreciation, Depletion and Amortization | 700 | 1,000 | 1,000 | |||||||||
Laboratory and manufacturing equipment | ||||||||||||
Property and Equipment, net | ||||||||||||
Property and equipment, gross | 3,083 | 2,451 | 1,709 | |||||||||
Computer hardware, furniture and fixtures | ||||||||||||
Property and Equipment, net | ||||||||||||
Property and equipment, gross | 1,134 | 1,121 | 1,076 | |||||||||
Leasehold improvements | ||||||||||||
Property and Equipment, net | ||||||||||||
Property and equipment, gross | $ 6,344 | $ 5,104 | $ 4,756 | |||||||||
Minimum | Laboratory and manufacturing equipment | ||||||||||||
Property and Equipment, net | ||||||||||||
Estimated useful lives | 3 years | |||||||||||
Minimum | Computer hardware, furniture and fixtures | ||||||||||||
Property and Equipment, net | ||||||||||||
Estimated useful lives | 3 years | |||||||||||
Maximum | Laboratory and manufacturing equipment | ||||||||||||
Property and Equipment, net | ||||||||||||
Estimated useful lives | 7 years | |||||||||||
Maximum | Computer hardware, furniture and fixtures | ||||||||||||
Property and Equipment, net | ||||||||||||
Estimated useful lives | 7 years |
Dividend (Details)
Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 30, 2015 | Sep. 16, 2015 | Dec. 31, 2015 |
Dividend | |||
Dividend declared per common share | $ 0.20 | ||
Dividend paid on common shares | $ 6,900 | ||
Dividend recorded as reduction in APIC | $ 6,900 | $ (6,891) |
Share Based Compensation and 48
Share Based Compensation and Employee Benefit Plans (Details) | Dec. 31, 2017shares |
Amended and Restated 2006 Omnibus Plan | |
Share-Based Compensation and Employee Benefit Plans | |
Common stock reserved for issuance (in shares) | 3,000,000 |
Shares available for future issuance | 1,431,209 |
Amended and Restated 1994 Stock Incentive Plan | |
Share-Based Compensation and Employee Benefit Plans | |
Common stock reserved for issuance (in shares) | 736,378 |
Shares available for future issuance | 0 |
Share Based Compensation and 49
Share Based Compensation and Employee Benefit Plans - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares | |||
Outstanding at the beginning of the period (in shares) | 840 | 1,515 | 1,609 |
Granted (in shares) | 109 | 55 | 234 |
Exercised (in shares) | (25) | (30) | (179) |
Forfeited or cancelled (in shares) | (258) | (700) | (149) |
Expired (in shares) | (43) | ||
Outstanding at the end of the period (in shares) | 623 | 840 | 1,515 |
Vested at the end of the period (in shares) | 419 | ||
Vested and expected to vest at the end of the period (in shares) | 528 | ||
Weighted Average Exercise Price Per Share | |||
Outstanding at the beginning of the period (in dollars per share) | $ 12.33 | $ 13.20 | $ 12.01 |
Granted (in dollars per share) | 6.77 | 5.48 | 17.68 |
Exercised (in dollars per share) | 5.14 | 5.09 | 7.46 |
Cancelled (in dollars per share) | 13.13 | 13.99 | 14.30 |
Expired (in dollars per share) | 7.83 | ||
Outstanding at the end of the period (in dollars per share) | 11.63 | 12.33 | 13.20 |
Vested at the end of the period (in dollars per share) | 12.02 | ||
Vested and expected to vest at the end of the period (in dollar per share) | $ 12.23 | ||
Weighted Average Remaining Term Contractual Life | |||
Weighted average remaining contractual life | 6 years 4 months 24 days | ||
Vested at the end of the period (in years) | 5 years 6 months | ||
Vested and expected to vest at the end of the period (in years) | 6 years 2 months 12 days | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the period (in dollars) | $ 34 | ||
Vested at the end of the period (in dollars) | 34 | ||
Vested and expected to vest at the end of the period (in dollars) | $ 34 | ||
Weighted average fair value of options granted (in dollars per share) | $ 4.42 | $ 2.48 | $ 11.31 |
Total fair value of shares vested | $ 1,000 | $ 1,900 | $ 2,100 |
Share Based Compensation and 50
Share Based Compensation and Employee Benefit Plans - Stock Options by price range (Details) - Stock options shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Options Outstanding | |
Number Outstanding (in shares) | shares | 623 |
Weighted Average Remaining Contractual Life | 6 years 4 months 24 days |
Weighted-Average Exercise Price (in dollars per share) | $ 11.63 |
Options Exercisable | |
Number Exercisable (in shares) | shares | 419 |
Weighted-Average Exercise Price (in dollars per share) | $ 12.02 |
$4.01 to $7.25 | |
Outstanding and exercisable options | |
Exercise price, lower range limit (in dollars per share) | 4.01 |
Exercise price, upper range limit (in dollars per share) | $ 7.25 |
Options Outstanding | |
Number Outstanding (in shares) | shares | 185 |
Weighted Average Remaining Contractual Life | 7 years 2 months 12 days |
Weighted-Average Exercise Price (in dollars per share) | $ 6.46 |
Options Exercisable | |
Number Exercisable (in shares) | shares | 76 |
Weighted-Average Exercise Price (in dollars per share) | $ 6.03 |
$7.26 to $12.75 | |
Outstanding and exercisable options | |
Exercise price, lower range limit (in dollars per share) | 7.26 |
Exercise price, upper range limit (in dollars per share) | $ 12.75 |
Options Outstanding | |
Number Outstanding (in shares) | shares | 112 |
Weighted Average Remaining Contractual Life | 5 years |
Weighted-Average Exercise Price (in dollars per share) | $ 9.20 |
Options Exercisable | |
Number Exercisable (in shares) | shares | 107 |
Weighted-Average Exercise Price (in dollars per share) | $ 9.03 |
$12.76 to $16.00 | |
Outstanding and exercisable options | |
Exercise price, lower range limit (in dollars per share) | 12.76 |
Exercise price, upper range limit (in dollars per share) | $ 16 |
Options Outstanding | |
Number Outstanding (in shares) | shares | 176 |
Weighted Average Remaining Contractual Life | 6 years 6 months |
Weighted-Average Exercise Price (in dollars per share) | $ 14.13 |
Options Exercisable | |
Number Exercisable (in shares) | shares | 129 |
Weighted-Average Exercise Price (in dollars per share) | $ 14.10 |
$16.01 to $19.36 | |
Outstanding and exercisable options | |
Exercise price, lower range limit (in dollars per share) | 16.01 |
Exercise price, upper range limit (in dollars per share) | $ 19.36 |
Options Outstanding | |
Number Outstanding (in shares) | shares | 150 |
Weighted Average Remaining Contractual Life | 6 years 2 months 12 days |
Weighted-Average Exercise Price (in dollars per share) | $ 16.89 |
Options Exercisable | |
Number Exercisable (in shares) | shares | 107 |
Weighted-Average Exercise Price (in dollars per share) | $ 16.77 |
Share Based Compensation and 51
Share Based Compensation and Employee Benefit Plans - Weighted-average Assumptions (Details) - Stock options | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-Based Compensation and Employee Benefit Plans | |||
Vesting period | 4 years | ||
Contractual life | 10 years | ||
Assumptions to estimate the fair value of stock options granted | |||
Interest rate | 2.00% | 1.00% | 1.80% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Term | 6 years 2 months 12 days | 3 years 8 months 12 days | 6 years 2 months 12 days |
Volatility | 71.90% | 67.40% | 69.40% |
Share Based Compensation and 52
Share Based Compensation and Employee Benefit Plans - Expense (benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based compensation expense (benefit) | |||
Share-based compensation expense (benefit) | $ 99 | $ (341) | $ 2,814 |
Unrecognized compensation expense | $ 200 | ||
Weighted-average period (in years) | 1 year 4 months 24 days | ||
401(k) Plan | |||
Employer matching contribution | $ 400 | 400 | 25 |
Employer discretionary contribution | 0 | 0 | 0 |
Cost of product revenue | |||
Share-based compensation expense (benefit) | |||
Share-based compensation expense (benefit) | 51 | 109 | 187 |
Sales and marketing | |||
Share-based compensation expense (benefit) | |||
Share-based compensation expense (benefit) | (17) | (6) | 1,383 |
Research and development | |||
Share-based compensation expense (benefit) | |||
Share-based compensation expense (benefit) | 123 | 150 | 218 |
General and administrative | |||
Share-based compensation expense (benefit) | |||
Share-based compensation expense (benefit) | $ (58) | $ (594) | $ 1,026 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share | |||
Anti-dilutive securities excluded from the computation of diluted earnings per share | 0.7 | 0.8 | 1.5 |
Anti-dilutive securities excluded from the computation of diluted EPS from discontinued operations | 0.7 |
Financial Instruments and Fai54
Financial Instruments and Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||
Estimated fair value | $ 24,807 | $ 23,829 | $ 24,809 |
Recurring | |||
Assets | |||
Estimated fair value | 24,807 | 23,829 | 24,809 |
Recurring | Level 2 | |||
Assets | |||
Estimated fair value | 24,807 | 23,829 | 24,809 |
Recurring | U.S. government agencies | |||
Assets | |||
Estimated fair value | 6,004 | 5,095 | 6,601 |
Recurring | U.S. government agencies | Level 2 | |||
Assets | |||
Estimated fair value | 6,004 | 5,095 | 6,601 |
Recurring | Obligations of government sponsored enterprises | |||
Assets | |||
Estimated fair value | 3,706 | 2,576 | 2,524 |
Recurring | Obligations of government sponsored enterprises | Level 2 | |||
Assets | |||
Estimated fair value | 3,706 | 2,576 | 2,524 |
Recurring | Corporate debt securities | |||
Assets | |||
Estimated fair value | 12,434 | 11,985 | 11,560 |
Recurring | Corporate debt securities | Level 2 | |||
Assets | |||
Estimated fair value | 12,434 | 11,985 | 11,560 |
Recurring | Foreign government bonds | |||
Assets | |||
Estimated fair value | 2,663 | 4,173 | 4,124 |
Recurring | Foreign government bonds | Level 2 | |||
Assets | |||
Estimated fair value | $ 2,663 | $ 4,173 | $ 4,124 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Jul. 07, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transactions | |||
Prepaid director expenses | $ 216,000 | ||
BioForceRX LLC | |||
Related Party Transactions | |||
Professional fee paid | $ 129,500 | ||
Outstanding fees and expenses paid | $ 32,000 | ||
Chairman of Board of Directors | |||
Related Party Transactions | |||
Amount of director expense reimbursement returned by chairman of the board | $ 216,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||||||||||||||||||||
Federal | $ (1,526) | $ (3) | |||||||||||||||||||
State | 128 | $ 104 | 547 | ||||||||||||||||||
Total current provision | (1,398) | 104 | 544 | ||||||||||||||||||
Deferred: | |||||||||||||||||||||
Federal | (31) | ||||||||||||||||||||
State | (3) | ||||||||||||||||||||
Total deferred (benefit) expense | (34) | ||||||||||||||||||||
Income tax (benefit) expense | $ (1,264) | $ (198) | $ 32 | $ 32 | $ 84 | $ 60 | $ (95) | $ 21 | $ 2 | $ 25 | $ 24 | $ 493 | $ 64 | $ (74) | $ 517 | $ (134) | $ (14) | $ 542 | $ (1,398) | $ 70 | $ 544 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of the federal statutory rate to the effective income tax rate | |||
Federal income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
State income taxes (as a percent) | 0.90% | 0.20% | 2.70% |
Nondeductible expenses (as a percent) | (16.20%) | (13.90%) | (2.60%) |
Stock-based compensation (as a percent) | (2.70%) | (12.00%) | (1.70%) |
Domestic manufacturing deduction (as a percent) | 0.90% | ||
Valuation allowance (as a percent) | 220.20% | (17.60%) | 167.00% |
Credits (as a percent) | 2.10% | 6.20% | (202.40%) |
Change in tax rate (as a percent) | (184.80%) | (1.10%) | 0.10% |
Other (as a percent) | (1.40%) | 1.30% | (0.60%) |
Effective tax rate (as a percent) | 53.10% | (1.90%) | (1.60%) |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets arising from: | |||
Net operating losses and credits | $ 528 | $ 2,933 | $ 2,034 |
Inventory adjustments | 2,114 | 3,334 | 5,407 |
Accrued expenses and reserves | 7,449 | 10,217 | 9,113 |
Property and equipment | 488 | 1,140 | 983 |
Stock compensation | 64 | 132 | 725 |
Deferred rent | 265 | 261 | 94 |
Deferred revenue | 316 | 954 | |
Other | 197 | 215 | 238 |
Deferred tax assets | 11,421 | 19,186 | 18,594 |
Less: valuation allowance | (10,212) | (17,308) | (16,662) |
Net deferred tax assets | 1,209 | 1,878 | 1,932 |
Deferred tax liabilities arising from: | |||
Insurance receivable | $ (1,209) | (1,827) | (1,831) |
Other | $ (51) | $ (101) |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carry Forwards (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Taxes | ||||
Income tax receivable | $ 2,600 | $ 2,300 | $ 2,000 | |
Federal income tax rate (as a percent) | 35.00% | 35.00% | 35.00% | |
Provisional tax expense | $ 4,800 | |||
Valuation allowance offset to provisional tax expense | 4,900 | |||
Valuation allowances | 10,212 | $ 17,308 | $ 16,662 | |
Maximum | ||||
Income Taxes | ||||
Offset future income taxes | 71,300 | |||
Forecast | ||||
Income Taxes | ||||
Federal income tax rate (as a percent) | 21.00% | |||
Alternative minimum tax credit carryforward | ||||
Income Taxes | ||||
Tax credit carryforward | 1,500 | |||
Federal | ||||
Income Taxes | ||||
Operating loss carryforwards | 400 | |||
State | ||||
Income Taxes | ||||
Operating loss carryforwards | $ 131 |
Income Taxes - Unrecognized tax
Income Taxes - Unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes | ||||||
Interest and penalties related to uncertain tax positions | $ 34 | $ 31 | $ 112 | |||
Accrued interest and penalties related to income tax matters | $ 176 | $ 142 | $ 112 | |||
Amount of orphan drug credits included in unrecognized tax benefits | 71,300 | 71,300 | 71,300 | |||
Reconciliation of Unrecognized Tax Benefits, excluding interest and penalties | ||||||
Balance, beginning of year | 71,665 | 71,665 | 71,279 | |||
Increase in current year position | 89 | 386 | ||||
Balance, end of year | $ 71,665 | $ 71,665 | $ 71,279 | $ 71,754 | $ 71,665 | $ 71,665 |
Commitments and Contingencies61
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies | |||
Rent expense | $ 1,400 | $ 1,400 | $ 1,500 |
Future rental commitments | |||
2,018 | 1,139 | ||
2,019 | 1,270 | ||
2,020 | 1,282 | ||
2,021 | 1,288 | ||
2,022 | 1,312 | ||
Thereafter | 1,117 | ||
Total rental commitments | $ 7,408 |
Commitments and Contingencies -
Commitments and Contingencies -Litigation Settlements (Details) $ in Thousands | Nov. 09, 2017USD ($) | Nov. 02, 2017item | Jun. 02, 2016 | Jan. 10, 2016 | Nov. 23, 2015item | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Mar. 11, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) |
Litigation Settlements | ||||||||||||||||
Accrued shareholder litigation, non-current | $ 18,500 | $ 18,500 | $ 18,500 | $ 18,500 | $ 18,500 | $ 18,500 | ||||||||||
Accrued shareholder litigation, current | $ 18,500 | $ 18,500 | $ 18,500 | $ 18,500 | ||||||||||||
Insurance receivable, non-current | 4,788 | 4,788 | 4,788 | $ 4,788 | $ 4,788 | $ 4,788 | ||||||||||
Insurance receivable, current | 4,788 | $ 4,788 | $ 4,788 | $ 4,788 | ||||||||||||
Settlement accrual | 1,500 | |||||||||||||||
Securities Class Actions | ||||||||||||||||
Litigation Settlements | ||||||||||||||||
Number of former Company officers in continuing civil action | item | 3 | |||||||||||||||
Number of days permitted to file an amended complaint | 45 days | |||||||||||||||
Accrued shareholder litigation, non-current | 18,500 | 18,500 | 18,500 | |||||||||||||
Accrued shareholder litigation, current | 18,500 | |||||||||||||||
Executive and corporate securities liability insurance policy | 5,000 | |||||||||||||||
Insurance receivable, non-current | 4,800 | 4,800 | 4,800 | |||||||||||||
Insurance receivable, current | $ 4,800 | |||||||||||||||
Shareholder Derivative Complaints | ||||||||||||||||
Litigation Settlements | ||||||||||||||||
Period for stay order subject to certain qualification | 30 days | |||||||||||||||
Government Investigations | ||||||||||||||||
Litigation Settlements | ||||||||||||||||
Amount of litigation settlement paid | $ 1,500 | |||||||||||||||
Number of former Company officers in continuing civil action | item | 4 | |||||||||||||||
Settlement expensed | 1,500 | |||||||||||||||
Settlement Of SEC and Shareholders Actions | Securities Class Actions | ||||||||||||||||
Litigation Settlements | ||||||||||||||||
Settlement expensed | 18,500 | |||||||||||||||
Settlement Of SEC and Shareholders Actions | Government Investigations | ||||||||||||||||
Litigation Settlements | ||||||||||||||||
Settlement expensed | 1,500 | |||||||||||||||
Other long-term liabilities | Government Investigations | ||||||||||||||||
Litigation Settlements | ||||||||||||||||
Settlement accrual | $ 1,500 | $ 1,500 | ||||||||||||||
Accrued liabilities | Government Investigations | ||||||||||||||||
Litigation Settlements | ||||||||||||||||
Settlement accrual | $ 1,500 | |||||||||||||||
Forecast | Securities Class Actions | ||||||||||||||||
Litigation Settlements | ||||||||||||||||
Commitment agreed to pay | $ 18,500 |
Significant Distributors (Detai
Significant Distributors (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | |||
Significant Customers | |||
Concentration of risk (as a percent) | 29.00% | 33.00% | 28.00% |
Distributor A | Revenue | |||
Significant Customers | |||
Concentration of risk (as a percent) | 21.00% | 18.00% | 12.00% |
Distributor A | Accounts Receivable | |||
Significant Customers | |||
Concentration of risk (as a percent) | 24.00% | 18.00% | 19.00% |
Distributor B | Revenue | |||
Significant Customers | |||
Concentration of risk (as a percent) | 8.00% | 15.00% | 16.00% |
Selected Quarterly Data (Unau64
Selected Quarterly Data (Unaudited) - Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Current Assets | |||||||||||||
Cash and cash equivalents | $ 3,081 | $ 3,234 | $ 1,625 | $ 1,161 | $ 2,833 | $ 3,287 | $ 3,551 | $ 5,516 | $ 9,144 | $ 17,765 | $ 2,241 | $ 3,800 | $ 2,208 |
Short-term investments | 24,807 | 28,540 | 20,538 | 21,427 | 23,829 | 25,999 | 26,662 | 26,583 | 24,809 | 22,517 | 36,420 | 35,257 | |
Trading securities | 3,090 | 8,300 | 8,162 | ||||||||||
Trade receivables, net | 26,053 | 22,028 | 23,414 | 23,014 | 23,248 | 20,928 | 20,125 | 18,850 | 18,799 | 17,901 | 16,190 | 13,690 | |
Inventory, net | 11,278 | 12,414 | 11,633 | 11,199 | 11,366 | 10,344 | 9,785 | 10,371 | 9,577 | 9,472 | 9,350 | 9,267 | |
Insurance receivable | 4,788 | 4,788 | 4,788 | 4,788 | |||||||||
Prepaid expenses and other current assets | 2,920 | 3,542 | 3,735 | 3,568 | 3,221 | 4,206 | 4,036 | 4,219 | 4,321 | 5,312 | 5,467 | 11,289 | |
Total current assets | 72,927 | 74,546 | 65,733 | 65,157 | 64,497 | 64,764 | 64,159 | 65,539 | 66,650 | 76,057 | 77,968 | 81,465 | |
Property and equipment, net | 3,587 | 2,467 | 2,242 | 2,281 | 2,390 | 2,478 | 2,066 | 2,113 | 2,077 | 2,070 | 2,141 | 2,176 | |
Insurance receivable | 4,788 | 4,788 | 4,788 | 4,788 | 4,788 | ||||||||
Other assets | 1,608 | 103 | 137 | 137 | 142 | 164 | 152 | 152 | 151 | 95 | 95 | 95 | |
Total assets | 78,122 | 77,116 | 68,112 | 67,575 | 71,817 | 72,194 | 71,165 | 72,592 | 73,666 | 78,222 | 80,204 | 83,736 | |
Current liabilities | |||||||||||||
Accounts payable | 5,269 | 5,014 | 3,713 | 3,936 | 5,559 | 5,977 | 5,543 | 4,515 | 4,749 | 4,224 | 2,575 | 4,437 | |
Accrued liabilities | 9,399 | 9,991 | 10,352 | 9,766 | 11,001 | 9,303 | 10,508 | 9,454 | 7,321 | 8,370 | 7,547 | 5,787 | |
Accrued shareholder litigation | 18,500 | 18,500 | 18,500 | 18,500 | |||||||||
Other current liabilities | 1,934 | 2,066 | 1,878 | 1,960 | 1,816 | 1,850 | 1,650 | 1,663 | 1,791 | 1,517 | 1,618 | 1,398 | |
Total current liabilities | 35,102 | 35,571 | 34,443 | 34,162 | 18,376 | 17,130 | 17,701 | 15,632 | 13,861 | 21,001 | 11,740 | 11,622 | |
Accrued shareholder litigation | 18,500 | 18,500 | 18,500 | 18,500 | 18,500 | ||||||||
Dividends payable | 6,890 | ||||||||||||
Other long-term liabilities | 1,626 | 1,953 | 1,817 | 2,134 | 2,440 | 2,751 | 2,623 | 2,940 | 4,763 | 3,588 | 3,910 | 4,228 | |
Total liabilities | 36,728 | 37,524 | 36,260 | 36,296 | 39,316 | 38,381 | 38,824 | 37,072 | 37,124 | 24,589 | 15,650 | 15,850 | |
Equity | |||||||||||||
Common stock | 35 | 35 | 35 | 35 | 35 | 35 | 35 | 35 | 35 | 35 | 35 | 35 | |
Additional paid-in-capital | 283,905 | 283,856 | 283,854 | 283,895 | 283,678 | 283,515 | 283,340 | 283,320 | 284,024 | 283,049 | 289,426 | 288,336 | |
Accumulated other comprehensive income (loss) | (208) | (55) | (35) | 109 | (89) | 163 | 192 | 83 | (143) | (94) | (201) | (143) | |
Accumulated deficit | (242,338) | (244,244) | (252,002) | (252,760) | (251,123) | (249,900) | (251,226) | (247,918) | (247,374) | (229,357) | (224,706) | (220,342) | |
Total equity | 41,394 | 39,592 | 31,852 | 31,279 | 32,501 | 33,813 | 32,341 | 35,520 | 36,542 | 53,633 | 64,554 | 67,886 | $ 75,681 |
Total liabilities and equity | $ 78,122 | $ 77,116 | $ 68,112 | $ 67,575 | $ 71,817 | $ 72,194 | $ 71,165 | $ 72,592 | $ 73,666 | $ 78,222 | $ 80,204 | $ 83,736 |
Selected Quarterly Data (Unau65
Selected Quarterly Data (Unaudited) - Condensed Consolidated Statements of Comprehensive Income (Loss) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Selected Quarterly Data (Unaudited) | |||||||||||||||||||||
Revenue | $ 32,576 | $ 29,806 | $ 29,151 | $ 26,981 | $ 29,090 | $ 29,506 | $ 27,327 | $ 23,451 | $ 24,806 | $ 23,562 | $ 19,077 | $ 12,262 | $ 56,132 | $ 50,778 | $ 31,339 | $ 85,938 | $ 80,284 | $ 54,901 | $ 118,514 | $ 109,374 | $ 79,707 |
Cost of revenue | 9,276 | 7,926 | 7,668 | 7,811 | 8,192 | 7,740 | 8,284 | 6,517 | 8,048 | 7,901 | 5,438 | 5,633 | 15,479 | 14,801 | 11,071 | 23,405 | 22,541 | 18,972 | 32,681 | 30,733 | 27,020 |
Gross profit | 23,300 | 21,880 | 21,483 | 19,170 | 20,898 | 21,766 | 19,043 | 16,934 | 16,758 | 15,661 | 13,639 | 6,629 | 40,653 | 35,977 | 20,268 | 62,533 | 57,743 | 35,929 | 85,833 | 78,641 | 52,687 |
Operating expenses: | |||||||||||||||||||||
Research and development | 1,086 | 909 | 924 | 1,219 | 1,452 | 1,853 | 1,524 | 1,495 | 1,530 | 1,237 | 1,097 | 1,003 | 2,143 | 3,019 | 2,100 | 3,052 | 4,872 | 3,337 | 4,138 | 6,324 | 4,867 |
Sales and marketing | 17,289 | 14,825 | 14,698 | 14,733 | 15,394 | 15,346 | 14,742 | 13,575 | 14,547 | 15,451 | 14,243 | 12,386 | 29,431 | 28,317 | 26,629 | 44,256 | 43,663 | 42,080 | 61,545 | 59,057 | 56,627 |
General and administrative | 5,219 | 6,634 | 5,427 | 4,859 | 5,385 | 3,264 | 6,254 | 2,453 | 2,362 | 2,424 | 2,481 | 2,231 | 10,286 | 8,707 | 4,712 | 16,920 | 11,971 | 7,136 | 22,139 | 17,356 | 9,498 |
Total operating expenses | 23,594 | 22,368 | 21,049 | 20,811 | 22,231 | 20,463 | 22,520 | 17,523 | 33,651 | 19,112 | 17,821 | 15,620 | 41,860 | 40,043 | 33,441 | 64,228 | 60,506 | 52,553 | 87,822 | 82,737 | 86,204 |
Income (loss) from continuing operations | (294) | (488) | 434 | (1,641) | (1,333) | 1,303 | (3,477) | (589) | (16,893) | (3,451) | (4,182) | (8,991) | (1,207) | (4,066) | (13,173) | (1,695) | (2,763) | (16,624) | (1,989) | (4,096) | (33,517) |
Other income (expense) | 726 | (1,763) | 356 | 36 | 194 | 83 | 74 | 66 | (18,015) | (4,626) | (4,340) | (8,229) | 392 | 140 | (12,569) | (1,371) | 223 | (17,195) | (645) | 417 | (1,693) |
Income (loss) before income taxes from continuing operations | 432 | (2,251) | 790 | (1,605) | (1,139) | 1,386 | (3,403) | (523) | (815) | (3,926) | (3,066) | (2,540) | (2,634) | (3,679) | (35,210) | ||||||
Income tax benefit (expense) | 1,264 | 198 | (32) | (32) | (84) | (60) | 95 | (21) | (2) | (25) | (24) | (493) | (64) | 74 | (517) | 134 | 14 | (542) | 1,398 | (70) | (544) |
Net income (loss) | 1,906 | 7,758 | 758 | (1,637) | (1,223) | 1,326 | (3,308) | (544) | (18,017) | (4,651) | (4,364) | (8,722) | (879) | (3,852) | (13,086) | 6,879 | (2,526) | (17,737) | 8,785 | (3,749) | (35,754) |
Other comprehensive income (loss) | |||||||||||||||||||||
Unrealized (loss) gain on investments | (152) | (21) | (144) | 198 | (252) | (29) | 109 | 226 | (49) | 107 | (58) | (89) | 54 | 335 | (147) | 33 | 306 | (40) | (119) | 54 | (89) |
Comprehensive income (loss) | $ 1,754 | $ 7,737 | $ 614 | $ (1,439) | $ (1,475) | $ 1,297 | $ (3,199) | $ (318) | $ (18,066) | $ (4,544) | $ (4,422) | $ (8,811) | $ (825) | $ (3,517) | $ (13,233) | $ 6,912 | $ (2,220) | $ (17,777) | $ 8,666 | $ (3,695) | $ (35,843) |
Net income per share from continuing operations: | |||||||||||||||||||||
Continuing operations basic (in dollars per share) | $ 0.05 | $ (0.06) | $ 0.02 | $ (0.05) | $ (0.03) | $ (0.08) | $ (0.04) | $ (0.11) | $ (1.04) | ||||||||||||
Continuing operations diluted (in dollars per share) | 0.05 | (0.06) | 0.02 | (0.05) | (0.03) | (0.08) | (0.04) | (0.11) | (1.04) | ||||||||||||
Net income per share from discontinued operations: | |||||||||||||||||||||
Discontinued operations basic (in dollars per share) | 0.01 | 0.28 | 0.28 | 0.29 | |||||||||||||||||
Discontinued operations diluted (in dollars per share) | 0.01 | 0.28 | 0.28 | 0.29 | |||||||||||||||||
Basic and diluted net loss per share: | |||||||||||||||||||||
Basic (in dollars per share) | 0.06 | 0.22 | 0.02 | (0.05) | (0.03) | 0.20 | 0.25 | (0.11) | (1.04) | ||||||||||||
Diluted (in dollars per share) | $ 0.06 | $ 0.22 | $ 0.02 | $ (0.05) | $ (0.03) | $ 0.20 | $ 0.25 | $ (0.11) | $ (1.04) | ||||||||||||
Basic and diluted (in dollars per share) | $ (0.04) | $ 0.04 | $ (0.10) | $ (0.02) | $ (0.52) | $ (0.14) | $ (0.13) | $ (0.25) | $ (0.11) | $ (0.38) | $ (0.07) | $ (0.52) | |||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||
Basic (in shares) | 34,526 | 34,526 | 34,526 | 34,520 | 34,501 | 34,501 | 34,500 | 34,495 | 34,523 | 34,498 | 34,524 | 34,499 | 34,524 | 34,499 | 34,422 | ||||||
Diluted (in shares) | 34,501 | 34,501 | 34,500 | 34,495 | 34,498 | 34,499 | 34,525 | 34,499 | 34,422 |
Selected Quarterly Data (Unau66
Selected Quarterly Data (Unaudited) - Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net income (loss) | $ (1,637) | $ (544) | $ (8,722) | $ (879) | $ (3,852) | $ (13,086) | $ 6,879 | $ (2,526) | $ (17,737) | $ 8,785 | $ (3,749) | $ (35,754) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||
Receipt of Mesoblast common stock | (10,000) | (10,000) | ||||||||||
Loss on disposal of fixed assets | 44 | (159) | 3 | 44 | (150) | 123 | 44 | (134) | 123 | 44 | (106) | |
Realized loss on investments | 158 | 19 | 152 | 362 | 2,102 | (1) | 1,607 | 2,028 | 8 | 2,502 | ||
Depreciation | 176 | 281 | 232 | 345 | 577 | 485 | 518 | 807 | 754 | 688 | 993 | 1,035 |
Stock-based compensation expense (benefit) | 88 | (701) | 688 | 47 | (678) | 1,392 | 49 | (504) | 2,112 | 99 | (341) | 2,814 |
Changes in operating assets and liabilities | ||||||||||||
Accounts receivable, net | 234 | (51) | (317) | (166) | (1,326) | (2,817) | 1,220 | (2,129) | (4,528) | (2,805) | (4,449) | (5,426) |
Inventory, net | 167 | (794) | 557 | (267) | (208) | 474 | (1,048) | (767) | 352 | 88 | (1,789) | 247 |
Prepaid expenses, and other current assets | (406) | 29 | 3,932 | (797) | 140 | 2,743 | (651) | (113) | 2,951 | (1,641) | 782 | 4,095 |
Accounts payable, accrued expenses, and other liabilities | (3,020) | 1 | 3,092 | (3,056) | 1,754 | 2,904 | (1,791) | 1,328 | 4,964 | (1,088) | 2,263 | 4,402 |
Net cash used in operating activities | (4,240) | (1,735) | (678) | (4,618) | (3,549) | (7,693) | (2,599) | (3,861) | (9,659) | (5,223) | (6,238) | (10,979) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Purchase of property and equipment, net | (67) | (361) | (170) | (200) | (610) | (397) | (718) | (1,252) | (611) | (2,008) | (1,350) | (927) |
Proceeds from sale of investments | 5,758 | 4,902 | 22,332 | 8,238 | 5,004 | 53,809 | 23,250 | 6,972 | 104,010 | 32,857 | 14,485 | 120,203 |
Purchases of investments | (3,251) | (6,380) | (20,209) | (4,756) | (6,380) | (52,575) | (19,660) | (7,641) | (84,854) | (25,506) | (13,133) | (101,384) |
Net cash provided by (used in) investing activities | 2,440 | (1,839) | 1,953 | 3,282 | (1,986) | 7,035 | 2,872 | (1,921) | 24,743 | 5,343 | 2 | 24,072 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Principal payments on capital lease obligations | (53) | (11) | (54) | (23) | (71) | (35) | ||||||
Repurchases of common stock | (1) | (32) | (32) | (206) | (32) | (206) | ||||||
Proceeds from the exercise of options to purchase common stock | 128 | 328 | 128 | 28 | 714 | 128 | 28 | 714 | 128 | 27 | 987 | |
Net cash provided by (used in) financing activities | 128 | (54) | 317 | 128 | (58) | 691 | 128 | (75) | 473 | 128 | (75) | (6,157) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,672) | (3,628) | 1,592 | (1,208) | (5,593) | 33 | 401 | (5,857) | 15,557 | 248 | (6,311) | 6,936 |
Cash and cash equivalents, beginning of period | 2,833 | 9,144 | 2,208 | 2,833 | 9,144 | 2,208 | 2,833 | 9,144 | 2,208 | 2,833 | 9,144 | 2,208 |
Cash and cash equivalents, end of period | 1,161 | 5,516 | 3,800 | 1,625 | 3,551 | 2,241 | 3,234 | 3,287 | 17,765 | 3,081 | 2,833 | 9,144 |
Cash paid during the period for: | ||||||||||||
Income taxes | $ 63 | $ 9 | $ 922 | $ 65 | $ 69 | $ 1,994 | $ 75 | $ 85 | $ 2,424 | $ 134 | $ 93 | $ 2,453 |
Selected Quarterly Data (Unau67
Selected Quarterly Data (Unaudited) - Restatement of the 2015 Quarterly Financial Statements - Condensed Balance Sheets (Details) $ in Thousands | 12 Months Ended | ||||||||||||
Dec. 31, 2015USD ($)Distributor | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Restatement of the 2015 Quarterly Financial Statements | |||||||||||||
Number of distributors with revenue accounted for on a cash basis in restated financial statements | Distributor | 2 | ||||||||||||
Number of distributors with improperly recognized revenue from bill and hold transactions | Distributor | 1 | ||||||||||||
Number of distributors with inappropriately recognized revenue related to shipment list price rather than end price | Distributor | 1 | ||||||||||||
Number of distributors under arrangements to sell products in specific countries | Distributor | 2 | ||||||||||||
Current Assets | |||||||||||||
Cash and cash equivalents | $ 9,144 | $ 3,081 | $ 3,234 | $ 1,625 | $ 1,161 | $ 2,833 | $ 3,287 | $ 3,551 | $ 5,516 | $ 17,765 | $ 2,241 | $ 3,800 | $ 2,208 |
Short-term investments | 24,809 | 24,807 | 28,540 | 20,538 | 21,427 | 23,829 | 25,999 | 26,662 | 26,583 | 22,517 | 36,420 | 35,257 | |
Trading securities | 3,090 | 8,300 | 8,162 | ||||||||||
Trade receivables, net | 18,799 | 26,053 | 22,028 | 23,414 | 23,014 | 23,248 | 20,928 | 20,125 | 18,850 | 17,901 | 16,190 | 13,690 | |
Inventory, net | 9,577 | 11,278 | 12,414 | 11,633 | 11,199 | 11,366 | 10,344 | 9,785 | 10,371 | 9,472 | 9,350 | 9,267 | |
Prepaid expenses and other current assets | 4,321 | 2,920 | 3,542 | 3,735 | 3,568 | 3,221 | 4,206 | 4,036 | 4,219 | 5,312 | 5,467 | 11,289 | |
Total current assets | 66,650 | 72,927 | 74,546 | 65,733 | 65,157 | 64,497 | 64,764 | 64,159 | 65,539 | 76,057 | 77,968 | 81,465 | |
Property and equipment, net | 2,077 | 3,587 | 2,467 | 2,242 | 2,281 | 2,390 | 2,478 | 2,066 | 2,113 | 2,070 | 2,141 | 2,176 | |
Other assets | 151 | 1,608 | 103 | 137 | 137 | 142 | 164 | 152 | 152 | 95 | 95 | 95 | |
Total assets | 73,666 | 78,122 | 77,116 | 68,112 | 67,575 | 71,817 | 72,194 | 71,165 | 72,592 | 78,222 | 80,204 | 83,736 | |
Current liabilities | |||||||||||||
Accounts payable | 4,749 | 5,269 | 5,014 | 3,713 | 3,936 | 5,559 | 5,977 | 5,543 | 4,515 | 4,224 | 2,575 | 4,437 | |
Accrued liabilities | 7,321 | 9,399 | 9,991 | 10,352 | 9,766 | 11,001 | 9,303 | 10,508 | 9,454 | 8,370 | 7,547 | 5,787 | |
Accrued shareholder litigation | 18,500 | 18,500 | 18,500 | 18,500 | |||||||||
Dividends payable | 6,890 | ||||||||||||
Other current liabilities | 1,791 | 1,934 | 2,066 | 1,878 | 1,960 | 1,816 | 1,850 | 1,650 | 1,663 | 1,517 | 1,618 | 1,398 | |
Total current liabilities | 13,861 | 35,102 | 35,571 | 34,443 | 34,162 | 18,376 | 17,130 | 17,701 | 15,632 | 21,001 | 11,740 | 11,622 | |
Other long-term liabilities | 4,763 | 1,626 | 1,953 | 1,817 | 2,134 | 2,440 | 2,751 | 2,623 | 2,940 | 3,588 | 3,910 | 4,228 | |
Total liabilities | 37,124 | 36,728 | 37,524 | 36,260 | 36,296 | 39,316 | 38,381 | 38,824 | 37,072 | 24,589 | 15,650 | 15,850 | |
Equity | |||||||||||||
Common stock | 35 | 35 | 35 | 35 | 35 | 35 | 35 | 35 | 35 | 35 | 35 | 35 | |
Additional paid-in-capital | 284,024 | 283,905 | 283,856 | 283,854 | 283,895 | 283,678 | 283,515 | 283,340 | 283,320 | 283,049 | 289,426 | 288,336 | |
Accumulated other comprehensive loss | (143) | (208) | (55) | (35) | 109 | (89) | 163 | 192 | 83 | (94) | (201) | (143) | |
Accumulated deficit | (247,374) | (242,338) | (244,244) | (252,002) | (252,760) | (251,123) | (249,900) | (251,226) | (247,918) | (229,357) | (224,706) | (220,342) | |
Total equity | 36,542 | 41,394 | 39,592 | 31,852 | 31,279 | 32,501 | 33,813 | 32,341 | 35,520 | 53,633 | 64,554 | 67,886 | 75,681 |
Total liabilities and equity | $ 73,666 | $ 78,122 | $ 77,116 | $ 68,112 | $ 67,575 | $ 71,817 | $ 72,194 | $ 71,165 | $ 72,592 | 78,222 | 80,204 | 83,736 | |
Previously Reported | |||||||||||||
Current Assets | |||||||||||||
Cash and cash equivalents | 15,799 | 1,563 | 3,704 | $ 2,208 | |||||||||
Short-term investments | 24,452 | 37,083 | 35,367 | ||||||||||
Trading securities | 3,090 | 8,300 | 8,162 | ||||||||||
Trade receivables, net | 37,857 | 34,781 | 29,162 | ||||||||||
Inventory, net | 15,818 | 13,903 | 12,494 | ||||||||||
Prepaid expenses and other current assets | 1,729 | 1,943 | 8,158 | ||||||||||
Total current assets | 98,745 | 97,573 | 97,047 | ||||||||||
Property and equipment, net | 2,180 | 2,077 | 2,165 | ||||||||||
Other assets | 95 | 95 | 95 | ||||||||||
Total assets | 101,020 | 99,745 | 99,307 | ||||||||||
Current liabilities | |||||||||||||
Accounts payable | 4,326 | 2,680 | 4,040 | ||||||||||
Accrued liabilities | 5,298 | 5,417 | 5,258 | ||||||||||
Dividends payable | 6,890 | ||||||||||||
Other current liabilities | 1,667 | 1,667 | 1,667 | ||||||||||
Total current liabilities | 18,181 | 9,764 | 10,965 | ||||||||||
Other long-term liabilities | 2,995 | 3,256 | 3,586 | ||||||||||
Total liabilities | 21,176 | 13,020 | 14,551 | ||||||||||
Equity | |||||||||||||
Common stock | 35 | 35 | 35 | ||||||||||
Additional paid-in-capital | 283,964 | 289,991 | 288,759 | ||||||||||
Accumulated other comprehensive loss | (94) | (202) | (144) | ||||||||||
Accumulated deficit | (204,061) | (203,099) | (203,894) | ||||||||||
Total equity | 79,844 | 86,725 | 84,756 | ||||||||||
Total liabilities and equity | 101,020 | 99,745 | 99,307 | ||||||||||
Adjustments | |||||||||||||
Current Assets | |||||||||||||
Cash and cash equivalents | 1,966 | 678 | 96 | ||||||||||
Short-term investments | (1,935) | (663) | (110) | ||||||||||
Trade receivables, net | (19,956) | (18,591) | (15,472) | ||||||||||
Inventory, net | (6,346) | (4,553) | (3,227) | ||||||||||
Prepaid expenses and other current assets | 3,583 | 3,524 | 3,131 | ||||||||||
Total current assets | (22,688) | (19,605) | (15,582) | ||||||||||
Property and equipment, net | (110) | 64 | 11 | ||||||||||
Total assets | (22,798) | (19,541) | (15,571) | ||||||||||
Current liabilities | |||||||||||||
Accounts payable | (102) | (105) | 397 | ||||||||||
Accrued liabilities | 3,072 | 2,130 | 529 | ||||||||||
Other current liabilities | (150) | (49) | (269) | ||||||||||
Total current liabilities | 2,820 | 1,976 | 657 | ||||||||||
Other long-term liabilities | 593 | 654 | 642 | ||||||||||
Total liabilities | 3,413 | 2,630 | 1,299 | ||||||||||
Equity | |||||||||||||
Additional paid-in-capital | (915) | (565) | (423) | ||||||||||
Accumulated other comprehensive loss | 1 | 1 | |||||||||||
Accumulated deficit | (25,296) | (21,607) | (16,448) | ||||||||||
Total equity | (26,211) | (22,171) | (16,870) | ||||||||||
Total liabilities and equity | $ (22,798) | $ (19,541) | $ (15,571) |
Selected Quarterly Data (Unau68
Selected Quarterly Data (Unaudited) - Restatement of the 2015 Quarterly Financial Statements - Condensed Consolidated Statements of Comprehensive Loss (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||
Mar. 31, 2015 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restatement of the 2015 Quarterly Financial Statements | ||||||||||||||||||||||
Revenue | $ 32,576 | $ 29,806 | $ 29,151 | $ 26,981 | $ 29,090 | $ 29,506 | $ 27,327 | $ 23,451 | $ 24,806 | $ 23,562 | $ 19,077 | $ 12,262 | $ 56,132 | $ 50,778 | $ 31,339 | $ 85,938 | $ 80,284 | $ 54,901 | $ 118,514 | $ 109,374 | $ 79,707 | |
Cost of revenue | 9,276 | 7,926 | 7,668 | 7,811 | 8,192 | 7,740 | 8,284 | 6,517 | 8,048 | 7,901 | 5,438 | 5,633 | 15,479 | 14,801 | 11,071 | 23,405 | 22,541 | 18,972 | 32,681 | 30,733 | 27,020 | |
Gross profit | 23,300 | 21,880 | 21,483 | 19,170 | 20,898 | 21,766 | 19,043 | 16,934 | 16,758 | 15,661 | 13,639 | 6,629 | 40,653 | 35,977 | 20,268 | 62,533 | 57,743 | 35,929 | 85,833 | 78,641 | 52,687 | |
Operating expenses: | ||||||||||||||||||||||
Research and development | 1,086 | 909 | 924 | 1,219 | 1,452 | 1,853 | 1,524 | 1,495 | 1,530 | 1,237 | 1,097 | 1,003 | 2,143 | 3,019 | 2,100 | 3,052 | 4,872 | 3,337 | 4,138 | 6,324 | 4,867 | |
Sales and marketing | 17,289 | 14,825 | 14,698 | 14,733 | 15,394 | 15,346 | 14,742 | 13,575 | 14,547 | 15,451 | 14,243 | 12,386 | 29,431 | 28,317 | 26,629 | 44,256 | 43,663 | 42,080 | 61,545 | 59,057 | 56,627 | |
General and administrative | 5,219 | 6,634 | 5,427 | 4,859 | 5,385 | 3,264 | 6,254 | 2,453 | 2,362 | 2,424 | 2,481 | 2,231 | 10,286 | 8,707 | 4,712 | 16,920 | 11,971 | 7,136 | 22,139 | 17,356 | 9,498 | |
Settlement of SEC and shareholder actions | 15,212 | 15,212 | ||||||||||||||||||||
Total operating expenses | 23,594 | 22,368 | 21,049 | 20,811 | 22,231 | 20,463 | 22,520 | 17,523 | 33,651 | 19,112 | 17,821 | 15,620 | 41,860 | 40,043 | 33,441 | 64,228 | 60,506 | 52,553 | 87,822 | 82,737 | 86,204 | |
Income (loss) from continuing operations | (294) | (488) | 434 | (1,641) | (1,333) | 1,303 | (3,477) | (589) | (16,893) | (3,451) | (4,182) | (8,991) | (1,207) | (4,066) | (13,173) | (1,695) | (2,763) | (16,624) | (1,989) | (4,096) | (33,517) | |
Mesoblast settlement income (expense) | (1,122) | (1,175) | (158) | 762 | 604 | (571) | ||||||||||||||||
Other income (expense), net | 726 | (1,763) | 356 | 36 | 194 | 83 | 74 | 66 | (18,015) | (4,626) | (4,340) | (8,229) | 392 | 140 | (12,569) | (1,371) | 223 | (17,195) | (645) | 417 | (1,693) | |
Income (loss) before income taxes from continuing operations | 432 | (2,251) | 790 | (1,605) | (1,139) | 1,386 | (3,403) | (523) | (815) | (3,926) | (3,066) | (2,540) | (2,634) | (3,679) | (35,210) | |||||||
Income tax (expense) benefit | 1,264 | 198 | (32) | (32) | (84) | (60) | 95 | (21) | (2) | (25) | (24) | (493) | (64) | 74 | (517) | 134 | 14 | (542) | 1,398 | (70) | (544) | |
Net loss from continuing operations | 1,696 | (2,053) | 758 | (1,637) | (879) | (2,932) | (1,236) | (3,749) | (35,754) | |||||||||||||
Discontinued operations, net of tax | 210 | 9,811 | 9,811 | 10,021 | ||||||||||||||||||
Net income (loss) | 1,906 | 7,758 | 758 | (1,637) | (1,223) | 1,326 | (3,308) | (544) | (18,017) | (4,651) | (4,364) | (8,722) | (879) | (3,852) | (13,086) | 6,879 | (2,526) | (17,737) | 8,785 | (3,749) | (35,754) | |
Other comprehensive income (loss) | ||||||||||||||||||||||
Unrealized (loss) gain on investments | (152) | (21) | (144) | 198 | (252) | (29) | 109 | 226 | (49) | 107 | (58) | (89) | 54 | 335 | (147) | 33 | 306 | (40) | (119) | 54 | (89) | |
Comprehensive income (loss) | $ 1,754 | $ 7,737 | $ 614 | $ (1,439) | $ (1,475) | $ 1,297 | $ (3,199) | $ (318) | $ (18,066) | $ (4,544) | $ (4,422) | $ (8,811) | $ (825) | $ (3,517) | $ (13,233) | $ 6,912 | $ (2,220) | $ (17,777) | $ 8,666 | $ (3,695) | $ (35,843) | |
Net income (loss) per share: | ||||||||||||||||||||||
Basic (in dollars per share) | $ 0.06 | $ 0.22 | $ 0.02 | $ (0.05) | $ (0.03) | $ 0.20 | $ 0.25 | $ (0.11) | $ (1.04) | |||||||||||||
Diluted (in dollars per share) | $ 0.06 | $ 0.22 | $ 0.02 | $ (0.05) | $ (0.03) | $ 0.20 | $ 0.25 | $ (0.11) | $ (1.04) | |||||||||||||
Basic and diluted net loss per share (in dollars per share) | $ (0.04) | $ 0.04 | $ (0.10) | $ (0.02) | $ (0.52) | $ (0.14) | $ (0.13) | $ (0.25) | $ (0.11) | $ (0.38) | $ (0.07) | $ (0.52) | ||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||
Basic and diluted (in shares) | 34,472 | 34,444 | 34,411 | 34,358 | 34,384 | 34,404 | ||||||||||||||||
Previously Reported | ||||||||||||||||||||||
Restatement of the 2015 Quarterly Financial Statements | ||||||||||||||||||||||
Revenue | $ 25,331 | $ 22,731 | $ 19,215 | $ 41,946 | $ 67,277 | |||||||||||||||||
Cost of revenue | 5,390 | 5,142 | 4,290 | 9,432 | 14,822 | |||||||||||||||||
Gross profit | 19,941 | 17,589 | 14,925 | 32,514 | 52,455 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Research and development | 2,306 | 2,287 | 1,640 | 3,927 | 6,233 | |||||||||||||||||
Sales and marketing | 17,325 | 14,029 | 12,736 | 26,765 | 44,090 | |||||||||||||||||
General and administrative | 5,463 | 6,278 | 3,482 | |||||||||||||||||||
Total operating expenses | 19,631 | 16,316 | 14,376 | 30,692 | 50,323 | |||||||||||||||||
Income (loss) from continuing operations | 310 | 1,273 | 549 | 1,822 | 2,132 | |||||||||||||||||
Other income (expense), net | (1,100) | (202) | 146 | (56) | (1,156) | |||||||||||||||||
Income (loss) before income taxes from continuing operations | (790) | 1,071 | 695 | 1,766 | 976 | |||||||||||||||||
Income tax (expense) benefit | 132 | (276) | (210) | (486) | (354) | |||||||||||||||||
Net income (loss) | (658) | 795 | 485 | 1,280 | 622 | |||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||
Unrealized (loss) gain on investments | 108 | (58) | (90) | (148) | (40) | |||||||||||||||||
Comprehensive income (loss) | $ (550) | $ 737 | $ 395 | $ 1,132 | $ 582 | |||||||||||||||||
Net income (loss) per share: | ||||||||||||||||||||||
Basic and diluted net loss per share (in dollars per share) | $ (0.02) | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.02 | |||||||||||||||||
Adjustments | ||||||||||||||||||||||
Restatement of the 2015 Quarterly Financial Statements | ||||||||||||||||||||||
Revenue | $ (1,769) | $ (3,654) | $ (6,953) | $ (10,607) | $ (12,376) | |||||||||||||||||
Cost of revenue | 2,511 | 296 | 1,343 | 1,639 | 4,150 | |||||||||||||||||
Gross profit | (4,280) | (3,950) | (8,296) | (12,246) | (16,526) | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Research and development | (1,069) | (1,190) | (637) | (1,827) | (2,896) | |||||||||||||||||
Sales and marketing | 3,589 | 6,492 | 3,132 | 9,624 | 13,213 | |||||||||||||||||
General and administrative | (3,039) | (3,797) | (1,251) | (5,048) | (8,087) | |||||||||||||||||
Total operating expenses | (519) | 1,505 | 1,244 | 2,749 | 2,230 | |||||||||||||||||
Income (loss) from continuing operations | (3,761) | (5,455) | (9,540) | (14,995) | (18,756) | |||||||||||||||||
Other income (expense), net | (75) | 44 | 616 | 660 | 585 | |||||||||||||||||
Income (loss) before income taxes from continuing operations | (3,836) | (5,411) | (8,924) | (14,335) | (18,171) | |||||||||||||||||
Income tax (expense) benefit | (157) | 252 | (283) | (31) | (188) | |||||||||||||||||
Net income (loss) | (3,993) | (5,159) | (9,207) | (14,366) | (18,359) | |||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||
Unrealized (loss) gain on investments | (1) | 1 | 1 | |||||||||||||||||||
Comprehensive income (loss) | $ (3,994) | $ (5,159) | $ (9,206) | (14,365) | (18,359) | |||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||
Amount of increase to net loss in the period due to correction of prior year errors in the first quarter | $ 1,100 | $ 1,100 | $ 1,100 | $ 1,100 |
Selected Quarterly Data (Unau69
Selected Quarterly Data (Unaudited) - Restatement of the 2015 Quarterly Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net income (loss) | $ (1,637) | $ (544) | $ (8,722) | $ (879) | $ (3,852) | $ (13,086) | $ 6,879 | $ (2,526) | $ (17,737) | $ 8,785 | $ (3,749) | $ (35,754) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||
Loss (gain) on disposal of fixed assets | 44 | (159) | 3 | 44 | (150) | 123 | 44 | (134) | 123 | 44 | (106) | |
Realized and unrealized loss on investments | 158 | 19 | 152 | 362 | 2,102 | (1) | 1,607 | 2,028 | 8 | 2,502 | ||
Depreciation | 176 | 281 | 232 | 345 | 577 | 485 | 518 | 807 | 754 | 688 | 993 | 1,035 |
Non cash share-based expense (benefit) | 88 | (701) | 688 | 47 | (678) | 1,392 | 49 | (504) | 2,112 | 99 | (341) | 2,814 |
Changes in operating assets and liabilities | ||||||||||||
Accounts receivable, net | 234 | (51) | (317) | (166) | (1,326) | (2,817) | 1,220 | (2,129) | (4,528) | (2,805) | (4,449) | (5,426) |
Inventory, net | 167 | (794) | 557 | (267) | (208) | 474 | (1,048) | (767) | 352 | 88 | (1,789) | 247 |
Prepaid expenses, and other assets | (406) | 29 | 3,932 | (797) | 140 | 2,743 | (651) | (113) | 2,951 | (1,641) | 782 | 4,095 |
Accounts payable, accrued expenses, and other liabilities | (3,020) | 1 | 3,092 | (3,056) | 1,754 | 2,904 | (1,791) | 1,328 | 4,964 | (1,088) | 2,263 | 4,402 |
Net cash used in operating activities | (4,240) | (1,735) | (678) | (4,618) | (3,549) | (7,693) | (2,599) | (3,861) | (9,659) | (5,223) | (6,238) | (10,979) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Purchase of property and equipment, net | (67) | (361) | (170) | (200) | (610) | (397) | (718) | (1,252) | (611) | (2,008) | (1,350) | (927) |
Proceeds from sale of investments | 5,758 | 4,902 | 22,332 | 8,238 | 5,004 | 53,809 | 23,250 | 6,972 | 104,010 | 32,857 | 14,485 | 120,203 |
Purchases of investments | (3,251) | (6,380) | (20,209) | (4,756) | (6,380) | (52,575) | (19,660) | (7,641) | (84,854) | (25,506) | (13,133) | (101,384) |
Proceeds from Mesoblast guaranteed payment | 6,198 | 6,198 | 6,180 | |||||||||
Net cash provided by (used in) investing activities | 2,440 | (1,839) | 1,953 | 3,282 | (1,986) | 7,035 | 2,872 | (1,921) | 24,743 | 5,343 | 2 | 24,072 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Principal payments on capital lease obligations | (53) | (11) | (54) | (23) | (71) | (35) | ||||||
Proceeds from the exercise of options to purchase common stock | 128 | 328 | 128 | 28 | 714 | 128 | 28 | 714 | 128 | 27 | 987 | |
Repurchases of common stock | (1) | (32) | (32) | (206) | (32) | (206) | ||||||
Net cash provided by (used in) financing activities | 128 | (54) | 317 | 128 | (58) | 691 | 128 | (75) | 473 | 128 | (75) | (6,157) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,672) | (3,628) | 1,592 | (1,208) | (5,593) | 33 | 401 | (5,857) | 15,557 | 248 | (6,311) | 6,936 |
Cash and cash equivalents, beginning of period | 2,833 | 9,144 | 2,208 | 2,833 | 9,144 | 2,208 | 2,833 | 9,144 | 2,208 | 2,833 | 9,144 | 2,208 |
Cash and cash equivalents, end of period | 1,161 | 5,516 | 3,800 | 1,625 | 3,551 | 2,241 | 3,234 | 3,287 | 17,765 | 3,081 | 2,833 | 9,144 |
Cash paid during the period for: | ||||||||||||
Income taxes | $ 63 | $ 9 | 922 | $ 65 | $ 69 | 1,994 | $ 75 | $ 85 | 2,424 | $ 134 | $ 93 | 2,453 |
Supplemental disclosure of cash flow information: | ||||||||||||
Cash dividends declared | 6,891 | |||||||||||
Previously Reported | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net income (loss) | 485 | 1,280 | 622 | |||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||
Realized and unrealized loss on investments | 19 | 350 | 1,548 | |||||||||
Depreciation | 267 | 547 | 850 | |||||||||
Non cash share-based expense (benefit) | 852 | 1,631 | 2,381 | |||||||||
Guaranteed payments related to trading securities | 6,198 | |||||||||||
Changes in operating assets and liabilities | ||||||||||||
Accounts receivable, net | (5,927) | (11,546) | (14,622) | |||||||||
Inventory, net | (1,334) | (2,743) | (4,658) | |||||||||
Prepaid expenses, and other assets | 4,872 | 4,492 | 4,463 | |||||||||
Accounts payable, accrued expenses, and other liabilities | 407 | (1,113) | 165 | |||||||||
Net cash used in operating activities | (359) | (904) | (9,251) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Purchase of property and equipment, net | (345) | (537) | (943) | |||||||||
Proceeds from sale of investments | 22,221 | 52,902 | 146,958 | |||||||||
Purchases of investments | (20,392) | (52,919) | (129,981) | |||||||||
Proceeds from Mesoblast guaranteed payment | 6,198 | |||||||||||
Net cash provided by (used in) investing activities | 1,484 | (554) | 22,232 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Principal payments on capital lease obligations | (11) | (22) | (34) | |||||||||
Proceeds from the exercise of options to purchase common stock | 328 | 716 | 507 | |||||||||
Windfall tax benefit from stock-based compensation | 54 | 119 | 137 | |||||||||
Net cash provided by (used in) financing activities | 371 | 813 | 610 | |||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,496 | (645) | 13,591 | |||||||||
Cash and cash equivalents, beginning of period | 2,208 | 2,208 | 2,208 | $ 2,208 | ||||||||
Cash and cash equivalents, end of period | 3,704 | 1,563 | 15,799 | |||||||||
Cash paid during the period for: | ||||||||||||
Income taxes | 422 | 1,994 | 2,424 | |||||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash dividends declared | 6,890 | |||||||||||
Adjustments | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net income (loss) | (9,207) | (14,366) | (18,359) | |||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||
Loss (gain) on disposal of fixed assets | (159) | (150) | (134) | |||||||||
Realized and unrealized loss on investments | 12 | 59 | ||||||||||
Depreciation | (35) | (62) | (96) | |||||||||
Non cash share-based expense (benefit) | (164) | (239) | (269) | |||||||||
Guaranteed payments related to trading securities | (6,198) | |||||||||||
Changes in operating assets and liabilities | ||||||||||||
Accounts receivable, net | 5,610 | 8,729 | 10,094 | |||||||||
Inventory, net | 1,891 | 3,217 | 5,010 | |||||||||
Prepaid expenses, and other assets | (940) | (1,749) | (1,512) | |||||||||
Accounts payable, accrued expenses, and other liabilities | 2,685 | 4,017 | 4,799 | |||||||||
Net cash used in operating activities | (319) | (6,789) | (408) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Purchase of property and equipment, net | 175 | 140 | 332 | |||||||||
Proceeds from sale of investments | 111 | 907 | (42,948) | |||||||||
Purchases of investments | 183 | 344 | 45,127 | |||||||||
Proceeds from Mesoblast guaranteed payment | 6,198 | |||||||||||
Net cash provided by (used in) investing activities | 469 | 7,589 | 2,511 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Principal payments on capital lease obligations | (1) | (1) | ||||||||||
Proceeds from the exercise of options to purchase common stock | (2) | 207 | ||||||||||
Repurchases of common stock | (206) | |||||||||||
Windfall tax benefit from stock-based compensation | (54) | (119) | (137) | |||||||||
Net cash provided by (used in) financing activities | (54) | (122) | (137) | |||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 96 | 678 | 1,966 | |||||||||
Cash and cash equivalents, end of period | 96 | $ 678 | 1,966 | |||||||||
Cash paid during the period for: | ||||||||||||
Income taxes | $ 500 | |||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash dividends declared | $ 1 |
SCHEDULE II-VALUATION AND QUA70
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory Reserve: | |||
Valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 2,444 | $ 2,603 | $ 692 |
Additions | 3,555 | 4,208 | 3,570 |
Deductions | (3,992) | (4,367) | (1,659) |
Balance at End of Year | 2,007 | 2,444 | 2,603 |
Net Deferred Tax Asset Valuation Allowance: | |||
Valuation and qualifying accounts | |||
Balance at Beginning of Year | 17,308 | 16,662 | 4,332 |
Additions | 646 | 12,330 | |
Deductions | (7,096) | ||
Balance at End of Year | $ 10,212 | $ 17,308 | $ 16,662 |