Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 15, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MIMEDX GROUP, INC. | |
Entity Central Index Key | 1376339 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 108,630,057 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $38,696 | $46,582 |
Short term investments | 6,000 | 5,750 |
Accounts receivable, net | 31,001 | 26,672 |
Inventory, net | 4,248 | 5,133 |
Prepaid expenses and other current assets | 2,341 | 1,540 |
Total current assets | 82,286 | 85,677 |
Investments | 2,500 | 3,250 |
Property and equipment, net of accumulated depreciation | 6,440 | 5,447 |
Goodwill | 4,040 | 4,040 |
Intangible assets, net of accumulated amortization | 10,813 | 10,845 |
Other assets | 26 | 0 |
Total assets | 106,105 | 109,259 |
Current liabilities: | ||
Accounts payable | 5,379 | 3,661 |
Accrued compensation | 8,720 | 11,523 |
Accrued expenses | 3,615 | 2,504 |
Other current liabilities | 746 | 716 |
Total current liabilities | 18,460 | 18,404 |
Other liabilities | 1,244 | 1,526 |
Total liabilities | 19,704 | 19,930 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Preferred stock; $.001 par value; 5,000,000 shares authorized and 0 shares issued and outstanding | 0 | 0 |
Common stock; $.001 par value; 130,000,000 shares authorized; 109,468,759 issued and 108,491,478 outstanding at March 31, 2015 and 108,776,247 issued and 107,789,611 outstanding at December 31, 2014 | 109 | 108 |
Additional paid-in capital | 158,401 | 162,433 |
Treasury stock at cost: 977,281 shares at March 31, 2015 and 986,636 shares at December 31, 2014 | -8,621 | -5,637 |
Accumulated deficit | -63,488 | -67,575 |
Total stockholders' equity | 86,401 | 89,329 |
Total liabilities and stockholders' equity | $106,105 | $109,259 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net sales | $40,767 | $19,559 |
Cost of sales | 5,148 | 2,977 |
Gross margin | 35,619 | 16,582 |
Operating expenses: | ||
Research and development expenses | 1,831 | 1,390 |
Selling, general and administrative expenses | 29,308 | 15,852 |
Amortization of intangible assets | 233 | 231 |
Operating income (loss) | 4,247 | -891 |
Other income (expense), net | ||
Interest expense, net | -14 | -21 |
Income (loss) before income tax provision | 4,233 | -912 |
Income tax provision | -146 | -10 |
Net Income (loss) | $4,087 | ($922) |
Net income (loss) per common share - basic | $0.04 | ($0.01) |
Net income (loss) per common share - diluted | $0.04 | ($0.01) |
Weighted average shares outstanding - basic | 105,820,335 | 105,358,694 |
Weighted average shares outstanding - diluted | 113,638,551 | 105,358,694 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 130,000,000 | 130,000,000 |
Common stock, shares issued (in shares) | 109,468,759 | 108,776,247 |
Common stock, shares outstanding (in shares) | 108,491,478 | 107,789,611 |
Treasury stock, shares (in shares) | 977,281 | 986,636 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) (USD $) | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit |
In Thousands, except Share data, unless otherwise specified | |||||
Balance at Dec. 31, 2014 | $89,329 | $108 | $162,433 | ($5,637) | ($67,575) |
Balance (in shares) at Dec. 31, 2014 | 108,776,247 | 986,636 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense | 3,933 | 3,933 | |||
Exercise of stock options | 1,276 | 1 | 222 | 1,053 | |
Exercise of stock options (in shares) | 760,156 | 647,656 | -112,500 | ||
Exercise of warrants | 0 | ||||
Exercise of warrants (in shares) | 0 | 0 | |||
Issuance of restricted stock | 0 | -8,258 | 8,258 | ||
Restricted stock shares cancelled/forfeited (in shares) | -715 | ||||
Issuance of restricted stock (in shares) | 34,250 | -1,256,608 | |||
Shares issued for services performed | 71 | 71 | |||
Shares issued for services performed (in shares) | 11,321 | 11,321 | |||
Stock repurchase | -12,295 | -12,295 | |||
Stock repurchase (in shares) | 1,359,753 | 1,359,753 | |||
Net income (loss) | 4,087 | 4,087 | |||
Balance at Mar. 31, 2015 | $86,401 | $109 | $158,401 | ($8,621) | ($63,488) |
Balance (in shares) at Mar. 31, 2015 | 109,468,759 | 977,281 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $4,087 | ($922) |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||
Depreciation | 354 | 263 |
Amortization of intangible assets | 233 | 231 |
Share-based compensation | 3,933 | 2,372 |
Increase (decrease) in cash resulting from changes in: | ||
Accounts receivable | -4,329 | -2,874 |
Inventory | 885 | 242 |
Prepaid expenses and other current assets | -801 | -942 |
Other assets | -26 | 0 |
Accounts payable | 1,789 | 128 |
Accrued compensation | -2,803 | -175 |
Accrued expenses | 1,111 | -37 |
Other liabilities | -223 | 102 |
Net cash flows from operating activities | 4,210 | -1,612 |
Cash flows from investing activities: | ||
Purchases of equipment | -1,347 | -466 |
Proceeds from Sale and Maturity of Held-to-maturity Securities | 500 | 0 |
Patent application costs | -201 | -168 |
Net cash flows from investing activities | -1,048 | -634 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 1,276 | 445 |
Proceeds from exercise of warrants | 0 | 775 |
Stock repurchase | -12,295 | 0 |
Payments under capital lease obligations | -29 | -33 |
Net cash flows from financing activities | -11,048 | 1,187 |
Net change in cash | -7,886 | -1,059 |
Cash and cash equivalents, beginning of period | 46,582 | 44,078 |
Cash and cash equivalents, end of period | $38,696 | $43,019 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) from interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU’’) to the FASB’s Accounting Standards Codification (“ASC”). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included. Operating results for the three months ended March 31, 2015 and 2014, are not necessarily indicative of the results that may be expected for the fiscal year. The balance sheet at December 31, 2014, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. | |
You should read these condensed consolidated financial statements together with the historical consolidated financial statements of the Company for the year ended December 31, 2014, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on March 13, 2015. | |
The Company operates in one business segment, Regenerative Biomaterials, which includes the design, manufacture, and marketing of products and tissue processing services for the Wound Care, Surgical, Sports Medicine, Ophthalmic and Dental market categories. The Company's biomaterial platform technologies include tissue technologies, AmnioFix® and EpiFix®, and device technology, CollaFix™, which the Company has yet to commercialize. |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies |
Please see Note 2 to the Company's Consolidated Financial Statements included in the Company’s Form 10-K for the fiscal year ended December 31, 2014, for a description of all significant accounting policies. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |
Accounts Receivable | |
Accounts receivable represent amounts due from customers for which revenue has been recognized. Generally, the Company does not require collateral or any other security to support its receivables. | |
The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing receivables. The Company determines the allowance based on factors such as historical collection experience, customers' current creditworthiness, customer concentrations, age of accounts receivable balance and general economic conditions that may affect the customers' ability to pay. | |
Inventories | |
Inventory is valued at standard cost, which approximates actual cost computed on a first-in, first-out basis, not in excess of market value. The Company assesses the valuation of its inventory on a periodic basis and makes adjustments to the value for estimated excess and obsolete inventory based on estimates about future demand. The excess balance determined by this analysis becomes the basis for the Company's excess inventory charge. The Company's excess inventory review process includes analysis of sales forecasts, managing product rollovers and working with operations to maximize recovery of excess inventory. | |
Revenue Recognition | |
The Company sells its products through a combination of a direct sales force and independent stocking distributors and representatives in the U.S. and independent distributors in international markets. The Company recognizes revenue when title to the goods transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. In cases where the Company utilizes distributors or ships product directly to the end user, it recognizes revenue upon shipment provided all other revenue recognition criteria have been met. A portion of the Company's revenue is generated from inventory maintained at hospitals or with the field representatives. For these products, revenue is recognized at the time the product has been used or implanted. The Company records estimated sales returns, discounts and allowances as a reduction of net sales in the same period revenue is recognized. | |
Patent Costs | |
The Company incurs certain legal and related costs in connection with patent applications for tissue-based products and processes. The Company capitalizes such costs to be amortized over the expected life of the patent to the extent that an economic benefit is anticipated from the resulting patent or alternative future use is available to the Company and are included in Intangible Assets in the Condensed Consolidated Balance Sheets. The Company capitalized approximately $201,000 of patent costs during the first three months of 2015. The Company capitalized approximately $168,000 of patent costs during the first three months of 2014. | |
Treasury Stock | |
The Company accounts for the purchase of treasury stock under the cost method. Treasury stock which is reissued for the exercise of option grants and the issuance of restricted stock grants is accounted for on a first - in first - out (FIFO) basis. | |
Recent Accounting Pronouncements | |
The Company considers the applicability and impact of all ASUs issued effective and not yet effective. In May 2014, the Financial Accounting Standards Board issued ASU 2014-09, “Revenue Recognition - Revenue from Contracts with Customers” (ASU 2014-09) that requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service. This update is effective for annual reporting periods beginning on or after December 15, 2016 and interim periods therein and requires expanded disclosures. We are currently assessing the impact the adoption of ASU 2014-09 will have on our condensed consolidated financial statements. All other ASUs issued effective and not yet effective for the three months ended March 31, 2015, and through the date of this report, were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's financial position or results of operations. |
Liquidity_and_Managements_Plan
Liquidity and Management's Plans | 3 Months Ended |
Mar. 31, 2015 | |
Liquidity and management's plans [Abstract] | |
Liquidity and Management's Plans | Liquidity and Management’s Plans |
As of March 31, 2015, the Company had approximately $38,696,000 of cash and cash equivalents. The Company reported total current assets of approximately $82,286,000 and current liabilities of approximately $18,460,000 as of March 31, 2015. The Company believes that its anticipated cash from operating and financing activities, and existing cash and cash equivalents will enable the Company to meet its operational liquidity needs and fund its planned investing activities for the next twelve months. |
Short_Term_Investments
Short Term Investments | 3 Months Ended |
Mar. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Short Term Investments | Short Term Investments |
Short term investments consist of approximately $6,000,000 of FDIC insured certificates of deposit held with various financial institutions as of March 31, 2015. Short term investments consisted of approximately $5,750,000 of FDIC insured certificates of deposit at December 31, 2014. The cost of these instruments approximates their fair market value at March 31, 2015 |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consisted of the following items as of March 31, 2015, and December 31, 2014 (in thousands): | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Raw materials | $ | 251 | $ | 255 | ||||
Work in process | 2,632 | 3,419 | ||||||
Finished goods | 1,917 | 1,986 | ||||||
Inventory, gross | 4,800 | 5,660 | ||||||
Reserve for obsolescence | (552 | ) | (527 | ) | ||||
Inventory, net | $ | 4,248 | $ | 5,133 | ||||
Investments
Investments | 3 Months Ended |
Mar. 31, 2015 | |
Investments, All Other Investments [Abstract] | |
Investments | Investments |
Investments consist of FDIC insured certificates of deposit with various U.S. financial institutions that mature in May 2016. The balances as of March 31, 2015, and December 31, 2014 were approximately $2,500,000 and $3,250,000, respectively and the cost approximates fair market value. |
Property_and_Equipment
Property and Equipment | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | Property and Equipment | |||||||
Property and equipment consist of the following as of March 31, 2015, and December 31, 2014 (in thousands): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Leasehold improvements | $ | 2,589 | $ | 2,559 | ||||
Lab and clean room equipment | 3,176 | 3,040 | ||||||
Furniture and office equipment | 2,600 | 2,398 | ||||||
Construction in progress | 1,928 | 949 | ||||||
Property and equipment, gross | 10,293 | 8,946 | ||||||
Less accumulated depreciation | (3,853 | ) | (3,499 | ) | ||||
Property and equipment, net | $ | 6,440 | $ | 5,447 | ||||
Included in net property and equipment is approximately $427,000 of equipment covered under capital leases. The corresponding liability of approximately $221,000 is included in other liabilities in the accompanying Condensed Consolidated Balance Sheets. Interest rates for these leases range from approximately 3% to 12% with maturity dates from September 2016 to January 2018. | ||||||||
Also included is approximately $1.0 million in leasehold improvements paid for by the landlord of the Company's main facility with a corresponding liability included in other liabilities which is amortized over the term of the lease. | ||||||||
Depreciation expense for the three months ended March 31, 2015 and 2014, was approximately $354,000 and $263,000, respectively. |
Intangible_Assets_and_Royalty_
Intangible Assets and Royalty Agreement | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||
Intangible Assets and Royalty Agreement | Intangible Assets and Royalty Agreement | |||||||||
Intangible assets are summarized as follows (in thousands): | ||||||||||
Weighted | 31-Mar-15 | 31-Dec-14 | ||||||||
Average | ||||||||||
Amortization | ||||||||||
Lives | ||||||||||
Cost | Cost | |||||||||
Licenses (a) (b) | 10 years | $ | 1,009 | $ | 1,009 | |||||
Patents & Know How (b) | 17 years | 7,893 | 7,891 | |||||||
Customer & Supplier Relationships (b) | 14 years | 3,761 | 3,761 | |||||||
Tradenames & Trademarks (b) | indefinite | 1,008 | 1,008 | |||||||
In Process Research & Development (b) | n/a | 25 | 25 | |||||||
Patents in Process (c) | n/a | 1,281 | 1,082 | |||||||
Total | 14,977 | 14,776 | ||||||||
Less Accumulated amortization | (4,164 | ) | (3,931 | ) | ||||||
Net | $ | 10,813 | $ | 10,845 | ||||||
(a) | On January 29, 2007, the Company acquired a license from Shriners Hospitals for Children and University of South Florida Research Foundation, Inc. in the amount of $996,000. Within 30 days after the receipt by the Company of approval by the FDA allowing the sale of the first licensed product, the Company is required to pay an additional $200,000 to the licensor. Due to its contingent nature, this amount is not recorded as a liability. The Company will also be required to pay a royalty of 3% on all commercial sales revenue from the licensed products. The Company is also obligated to pay a $50,000 minimum annual royalty payment over the life of the license. As of March 31, 2015, this license had a remaining net book value of approximately $184,000. | |||||||||
(b) | On January 5, 2011, the Company acquired Surgical Biologics, LLC. As a result, the Company recorded intangible assets for Customer & Supplier Relationships of $3,761,000, Patents & Know-How of $7,690,000, Licenses of $13,000, Trade Names & Trademarks of $1,008,000 and In-Process Research & Development of $25,000. For the three months ended March 31, 2015 an additional $2,333 of costs associated with patents granted during the period were capitalized and included in Patents & Know-How subject to amortization. | |||||||||
(c) | Patents in Process consist of capitalized external legal and other registration costs in connection with internally developed tissue-based patents that are pending. Once issued, the costs associated with a given patent will be included in Patents & Know-How under intangible assets subject to amortization. | |||||||||
Amortization expense for the three months ended March 31, 2015 and 2014, was approximately $233,000, and $231,000, respectively. | ||||||||||
Expected future amortization of intangible assets as of March 31, 2015, is as follows (in thousands): | ||||||||||
Year ending December 31, | Estimated | |||||||||
Amortization | ||||||||||
Expense | ||||||||||
2015 (a) | $ | 697 | ||||||||
2016 | 929 | |||||||||
2017 | 840 | |||||||||
2018 | 830 | |||||||||
2019 | 830 | |||||||||
Thereafter | 5,679 | |||||||||
$ | 9,805 | |||||||||
(a) Estimated amortization expense for the year ending December 31, 2015, includes only amortization to be recorded after March 31, 2015. |
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Net Income (Loss) Per Share | Net Income (Loss) Per Share | |||||||
Basic net income (loss) per common share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per common share is computed using the weighted-average number of common and dilutive common equivalent shares from stock options, restricted stock, and warrants using the treasury stock method. | ||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands except share data): | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Net income (loss) | $ | 4,087 | $ | (922 | ) | |||
Denominator for basic earnings per share - weighted average shares | 105,820,335 | 105,358,694 | ||||||
Effect of dilutive securities: Stock options, restricted stock, and warrants outstanding(a) | 7,818,216 | — | ||||||
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities | 113,638,551 | 105,358,694 | ||||||
Income (loss) per common share - basic | $ | 0.04 | $ | (0.01 | ) | |||
Income (loss) per common share - diluted | $ | 0.04 | $ | (0.01 | ) | |||
(a) Securities outstanding that are included in the computation above, utilizing the treasury stock method for the three months ended March 31, 2015, are as follows: | ||||||||
Outstanding Stock Options | 7,392,355 | |||||||
Outstanding Warrants | 42,400 | |||||||
Restricted Stock Awards | 383,461 | |||||||
7,818,216 | ||||||||
Securities outstanding for the three months ended March 31, 2014 were excluded from the computation of diluted earnings per share because they would have been anti-dilutive. |
Equity
Equity | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Equity | Equity | |||||||||||||||
Stock Incentive Plans | ||||||||||||||||
The Company has three share-based compensation plans: the MiMedx Group, Inc. Assumed 2006 Stock Incentive Plan (the “2006 Plan”), the MiMedx Inc. 2007 Assumed Stock Plan (the “Assumed 2007 Plan”) and the MiMedx Group Inc. Amended and Restated Assumed 2005 Stock Plan (the “Assumed 2005 Plan”) which provide for the granting of qualified incentive and non-qualified stock options, stock appreciation awards and restricted stock awards to employees, directors, consultants and advisors. The awards are subject to a vesting schedule as set forth in each individual agreement. The Company intends to use only the 2006 Plan to make future grants. The number of assumed options under the Assumed 2005 Plan and Assumed 2007 Plan outstanding at March 31, 2015 totaled 195,000. On July 28, 2014, the Company's shareholders approved 4,000,000 additional shares to be made available under the 2006 Plan, bringing the maximum number of shares of common stock that can be issued under the 2006 Plan to 26,500,000 at March 31, 2015. | ||||||||||||||||
Activity with respect to the stock options is summarized as follows: | ||||||||||||||||
Number | Weighted- | Weighted-Average | Aggregate | |||||||||||||
of | Average | Remaining | Intrinsic | |||||||||||||
Shares | Exercise | Contractual Term | Value | |||||||||||||
Price | (in years) | |||||||||||||||
Outstanding at January 1, 2015 | 16,474,227 | $ | 3.43 | |||||||||||||
Granted | 57,600 | 9.55 | ||||||||||||||
Exercised | (760,156 | ) | 1.68 | |||||||||||||
Unvested options forfeited | (140,996 | ) | 6.43 | |||||||||||||
Outstanding at March 31, 2015 | 15,630,675 | 3.51 | 7.1 | $ | 107,655,519 | |||||||||||
Vested at March 31, 2015 | 10,940,415 | 2.51 | 6.6 | $ | 86,267,905 | |||||||||||
Vested or expected to vest at March 31, 2015 (a) | 15,419,100 | $ | 3.47 | 7.1 | $ | 106,858,970 | ||||||||||
(a) | Includes forfeiture adjusted unvested shares. | |||||||||||||||
The intrinsic value of the options exercised during the three months ended March 31, 2015, was approximately $6,402,516. | ||||||||||||||||
Following is a summary of stock options outstanding and exercisable at March 31, 2015: | ||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number outstanding | Weighted-Average | Weighted- | Number Exercisable | Weighted- | |||||||||||
Remaining | Average | Average | ||||||||||||||
Contractual Term | Exercise | Exercise Price | ||||||||||||||
(in years) | Price | |||||||||||||||
$0.50 - $0.76 | 441,429 | 4.1 | $ | 0.72 | 441,429 | $ | 0.72 | |||||||||
$0.87 - $1.35 | 5,544,494 | 6.4 | 1.2 | 5,519,492 | 1.2 | |||||||||||
$1.40 - $2.29 | 1,361,717 | 4.7 | 1.64 | 1,240,048 | 1.65 | |||||||||||
$2.33 - $3.75 | 1,668,922 | 7.4 | 2.77 | 1,015,730 | 2.78 | |||||||||||
$3.95 - $5.99 | 3,246,711 | 8.1 | 5.18 | 1,790,263 | 5.1 | |||||||||||
$6.02 - $9.13 | 3,184,802 | 8.5 | 7.06 | 933,453 | 7.07 | |||||||||||
$9.22- $10.99 | 182,600 | 9.7 | 10.13 | — | — | |||||||||||
15,630,675 | 7.1 | $ | 3.51 | 10,940,415 | $ | 2.51 | ||||||||||
Total unrecognized compensation expense related to granted stock options at March 31, 2015, was approximately $12,426,694 and will be charged to expense ratably through February 2018. | ||||||||||||||||
The fair value of options granted by the Company is estimated on the date of grant using the Black-Scholes-Merton option-pricing model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. Expected volatilities are based on historical volatility of peer companies and other factors estimated over the expected term of the options. The term of employee options granted is derived using the “simplified method,” which computes expected term as the mid point between the weighted average time to vesting and the contractual maturity. The simplified method was used due to the Company's lack of sufficient historical data to provide a reasonable basis upon which to estimate the expected term due to the limited period of time its equity shares have been publicly traded. The term for non-employee options is generally based upon the contractual term of the option. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term or contractual term as described. | ||||||||||||||||
The assumptions used in calculating the fair value of options using the Black-Scholes-Merton option-pricing model are set forth in the following table: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Expected volatility | 56.8- 58.1% | 64.1 - 64.5% | ||||||||||||||
Expected life (in years) | 6 | 6 | ||||||||||||||
Expected dividend yield | — | — | ||||||||||||||
Risk-free interest rate | 1.57% - 1.66% | 1.69% - 1.96% | ||||||||||||||
The weighted-average grant date fair value for options granted during the three months ended March 31, 2015, was approximately $5.13. | ||||||||||||||||
Restricted Stock Awards | ||||||||||||||||
Activity with respect to restricted stock awards is summarized as follows: | ||||||||||||||||
Number | Weighted-Average Grant Date | |||||||||||||||
of | Fair Value | |||||||||||||||
Shares | ||||||||||||||||
Unvested at January 1, 2015 | 1,228,898 | $7.16 | ||||||||||||||
Granted | 1,290,858 | 9.52 | ||||||||||||||
Vested | (232,691 | ) | 6.54 | |||||||||||||
Forfeited | (715 | ) | 7.24 | |||||||||||||
Unvested at March 31, 2015 | 2,286,350 | $8.56 | ||||||||||||||
As of March 31, 2015, there was approximately $17,989,017 of total unrecognized stock-based compensation related to time-based, nonvested restricted stock. That expense is expected to be recognized on a straight-line basis over a weighted-average period of 2.6 years, which approximates the remaining vesting period of these grants. All shares noted above as unvested are considered issued and outstanding at March 31, 2015. | ||||||||||||||||
For the three months ended March 31, 2015 and 2014, the Company recognized stock-based compensation as follows (in thousands): | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Cost of sales | $ | 95 | $ | 97 | ||||||||||||
Research and development | 186 | 160 | ||||||||||||||
Selling, general and administrative | 3,652 | 2,115 | ||||||||||||||
$ | 3,933 | $ | 2,372 | |||||||||||||
Warrants | ||||||||||||||||
As of March 31, 2015, the Company had 42,400 common stock warrants with an exercise price of $1.09 outstanding representing compensation to consultants and advisors in connection with previous debt offerings. The warrants expire in December 2016 and are classified as equity. | ||||||||||||||||
Treasury Stock | ||||||||||||||||
On May 12, 2014, the Company announced that its Board of Directors had authorized the repurchase of up to $10,000,000 of its common stock from time to time, through December 31, 2014. On December 12, 2014, the Board extended this program until December 31, 2015. On January 5, 2015, the Board increased the authorization under the program to $20,000,000. The timing and amount of future repurchases, if any, will depend upon the Company's stock price, economic and market conditions, regulatory requirements, and other corporate considerations. The Company may initiate, suspend or discontinue purchases under the stock repurchase program at any time. | ||||||||||||||||
For the three months ended March 31, 2015, the Company purchased 1,359,753 shares of its common stock for an aggregate purchase price of approximately $12,254,000 before brokerage commissions of approximately $41,000. As of March 31, 2015, the Company had approximately $2,162,000 remaining under the repurchase program. | ||||||||||||||||
Additionally, for the three months ended March 31, 2015, the Company reissued 1,369,108 shares from the Treasury for restricted stock grants and stock option exercises with an aggregate carrying value of $9,310,268. |
Income_taxes
Income taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes |
The effective tax rates for continuing operations of 3.4% and (1.1%), respectively, for the three months ended March 31, 2015 and March 31, 2014, were determined using an estimated annual effective tax rate and after considering any discrete items for such periods. Due to a valuation allowance against the Company's U.S. deferred tax assets, the effective tax rate for the three months ended March 31, 2015, does not include the expense of the current period U.S. taxable income. A valuation allowance is recorded to reduce the deferred tax assets reported if, based on the weight of the evidence, it is more likely than not that a portion or none of the deferred tax assets will be realized. After consideration of all the evidence, including reversal of deferred tax liabilities, future taxable income and other factors, management has determined that a full valuation allowance is necessary as of March 31, 2015. As a result, income tax expense for the three months ended March 31, 2015, is primarily due to income tax expense in certain state jurisdictions. | |
As a result of anticipated profitability for the year and positive trends in the foreseeable future, the Company may release all or a portion of this valuation allowance by the end of 2015. However, the exact timing and amount of the valuation allowance released are subject to change based on the level of profitability that the Company is able to actually achieve for the year and its visibility into future period results. The potential release of this valuation allowance during 2015 would have a material impact on the Company's recorded tax expense in the period of reversal. The Company will release this valuation allowance when management determines that it is more likely than not that its deferred tax asset will be realized. |
Supplemental_disclosure_of_cas
Supplemental disclosure of cash flow and non-cash investing and financing activities | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||
Supplemental disclosure of cash flow and non-cash investing and financing activities | Supplemental disclosure of cash flow and non-cash investing and financing activities: | |||||||
Selected cash payments, receipts, and noncash activities are as follows (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Cash paid for interest | $ | 14 | $ | 21 | ||||
Income taxes paid | 363 | 7 | ||||||
Stock issuance of 11,321 shares in exchange for services performed | 71 | — | ||||||
Contractual_Commitments_and_Co
Contractual Commitments and Contingencies | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Contractual Commitments and Contingencies | Contractual Commitments and Contingencies | |||
Contractual Commitments | ||||
In addition to the Capital Leases noted above in Note 7, the Company has entered into operating lease agreements for facility space and equipment. These leases expire over the next four years and generally contain renewal options. The Company anticipates that most of these leases will be renewed or replaced upon expiration. The Company also has commitments for meeting space and to various charitable organizations. The estimated annual lease payments, meeting space and charitable organization commitments are as follows (in thousands): | ||||
12-month period ended March 31 | ||||
2016 | $ | 2,326 | ||
2017 | 1,502 | |||
2018 | 1,520 | |||
2019 | 1,192 | |||
Thereafter | — | |||
$ | 6,540 | |||
Rent expense for the three months ended March 31, 2015 and 2014, was approximately $284,000 and $282,000, respectively, and is allocated among cost of sales, research and development, and selling, general and administrative expenses. | ||||
Letters of Credit | ||||
As a condition of the lease for the Company's main facility, the Company is obligated under standby letters of credit in the amount of approximately $500,000. These obligations are reduced at various times over the life of the lease. | ||||
FDA Untitled Letter and Related Litigation | ||||
Initially, MiMedx processed its tissue allografts in only one form, which was a sheet form. In 2011, MiMedx introduced a micronized form of its sheet allografts. | ||||
The FDA has specific regulations governing human cells, tissues and cellular and tissue-based products, or HCT/Ps. An HCT/P is a product containing or consisting of human cells or tissue intended for transplantation into a human patient. If an HCT/P meets the criteria for regulation solely under Section 361 of the Public Health Service Act (so-called “361 HCT/Ps”), no FDA review for safety and effectiveness under a drug, device, or biological product marketing application is required. | ||||
MiMedx believes that all of its tissue products qualify as 361 HCT/Ps. On August 28, 2013, however, the FDA issued an Untitled Letter alleging that the Company’s micronized allografts do not meet the criteria for regulation solely under Section 361 of the Public Health Service Act and that, as a result, MiMedx would need a biologics license to lawfully market the micronized products. | ||||
In November 2013, the FDA clarified the basis for its position regarding the micronized products. Specifically, the FDA explained its belief that “[c]ryo-milling cut, dehydrated amniotic/chorionic membrane results in a micron-sized powder and the loss of the tensile strength and elasticity that are essential characteristics of the original amniotic/chorionic tissue relating to its utility to function as a ‘physical membrane’ (i.e. covering, barrier).” The Company responded to the FDA that while it does not agree with the FDA’s position, it understands the FDA’s interest in further regulating this emerging technology. Accordingly, the Company proposed to the FDA that it would pursue the Investigational New Drug (“IND”) and Biologics License Application (“BLA”) process for certain micronized products, and, in parallel, also proposed to enter into negotiations with the FDA on a plan to transition the micronized products to licensed biological products and continue to market the micronized products under specific conditions. | ||||
On July 22, 2014, the Company filed its first IND application with the FDA. The application was allowed, paving the way for a Phase IIB clinical trial of its micronized product for a specified indication of use in anticipation of a BLA, which the Company expects to submit at a future date. The clinical trial is expected to enroll approximately 150 patients in 10 - 20 clinical sites in the U.S. The Company initiated the trial in March of 2015. | ||||
The Company also requested a transition agreement to allow it to continue to market its current micronized products for certain specified uses while pursuing one or more BLAs. The Agency continues to assert that the current form of the Company’s micronized products are more than minimally manipulated and therefore are not eligible for marketing solely under Section 361 of the Public Health Service Act. The Company has conducted tests and has engaged independent laboratories to conduct tests that confirm that tensile strength and modulus of elasticity are not diminished by the process used by the Company to create its micronized products. | ||||
On December 22, 2014, the FDA issued for comment “Draft Guidance for Industry: Minimal Manipulation of Human Cells, Tissues, and Cellular and Tissue-Based Products.” Essentially the draft guidance takes the same position with respect to micronized amniotic tissue that it took in the Untitled Letter to MiMedx 16 months earlier. | ||||
The period for submitting comments on the Draft Guidance expired on February 23, 2015. The Company has submitted comments to the Draft Guidance asserting that the Draft Guidance represents agency action that goes far beyond FDA’s statutory authority, is inconsistent with existing HCT/ P regulations and FDA’s prior positions, and is internally inconsistent and is scientifically unsound. Additionally, the Company asked the FDA to allow MiMedx to continue to market its micronized products until the guidance or regulations as the case may be have been fully vetted through a process of notice and comment rule making. Preliminarily, FDA has indicated that it intends to issue for comment Draft Guidance on homologous use later this year and that industry and other interested parties will have an opportunity to comment on both guidance documents as a whole at that time. | ||||
If the FDA does allow the Company to continue to market a micronized form of its sheet allografts either prior to or after finalization of the Draft Guidance, it may impose conditions, such as labeling restrictions and compliance with Current Good Manufacturing Practices (“cGMP”). It is also possible that the FDA will not allow the Company to market any form of a micronized product without a biologics license even prior to finalization of the Draft Guidance and could even require the Company to recall its micronized products. Revenues from micronized products comprised approximately 14% of the Company's revenues in 2014. | ||||
Following the publication of the Untitled Letter from the FDA regarding the Company’s micronized products in September 2013, the trading price of the Company’s stock dropped sharply and several purported class action lawsuits were filed against the Company and certain of its executive officers asserting violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 with respect to various statements and alleged omissions related to the Company’s belief that its products were 361 HCT/Ps, including its micronized products. These cases have now all been removed to, and consolidated in, the United States District Court for the Northern District of Georgia. By order dated December 9, 2013, the Court approved the appointment of a lead plaintiff and a lead counsel. A Consolidated Amended Class Action Complaint, containing substantially the same causes of action and claims for relief as the initial complaints, was filed on January 27, 2014. The case is currently in the discovery phase. The Company currently believes that the outcome of this litigation will not have a material adverse impact on the Company's financial position or results of operations. | ||||
OIG Subpoena And Other Shareholder Litigation | ||||
In the fourth quarter of 2014, the Company received a subpoena from the Office of Inspector General, U.S. Department of Health and Human Services, or OIG, in connection with a civil investigation into matters primarily related to the Company's sales and marketing activities. In March 2015, the Company received notice from the Department of Justice that it declined at that time to intervene in the qui tam action that gave rise to the issuance of a subpoena. While it is still possible that the qui tam action could be brought privately by the relator and the government could opt to intervene in the qui tam action at a later date, the Company currently believes that the outcome of this litigation will not have a material adverse impact on the Company's financial condition or results of operations. | ||||
On February 19, 2015, a separate purported class action lawsuit was filed against the Company and certain of its executive officers in the United States District Court for the Southern District of New York. The suit alleged violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 with respect to various statements and alleged omissions related to the Company’s receipt of the subpoena discussed above. On April 22, 2015, the plaintiffs voluntarily dismissed this purported class action lawsuit against the Company. | ||||
Patent Litigation | ||||
On April 22, 2014, the Company filed a patent infringement lawsuit against Liventa Bioscience, Inc. ("Liventa"), Medline Industries, Inc. ("Medline") and Musculoskeletal Transplant Foundation, Inc. ("MTF") for permanent injunctive relief and unspecified damages. In addition to the allegations of infringement of certain of MiMedx's patents, the lawsuit asserts that Liventa and Medline knowingly and willfully made false and misleading representations about their respective products to providers, patients, and in some cases, prospective investors. The suit was filed in the United States District Court for the Northern District of Georgia. In the suit, MiMedx asserts that Liventa (formerly known as AFCell Medical, Inc.), Medline and MTF infringed and continue to infringe certain of the Company’s patents relating to the MiMedx dehydrated human amnion/chorion membrane ("dHACM") allografts. MTF is the processor and Liventa and Medline are the distributors of the allegedly infringing products. On May 30, 2014, the defendants filed answers to the Complaint, denying the allegations in the Complaint. They also raised affirmative defenses of non-infringement, invalidity, laches and estoppel. MTF and Medline also filed counterclaims seeking declaratory judgments of non-infringement and invalidity. On May 16, 2014, the Company also filed a patent infringement lawsuit against Transplant Technology, Inc. d/b/a Bone Bank Allografts (“Bone Bank”) and Texas Human Biologics, Ltd. (“Biologics”) for permanent injunctive relief and unspecified damages. The lawsuit was filed in the United States District Court for the Western District of Texas. This lawsuit similarly asserts that Bone Bank and Biologics infringed certain of the Company’s patents through the manufacturing and sale of tissue graft products. The defendants have denied the allegations in the Complaint. They also have raised affirmative defenses of non-infringement and invalidity and filed counterclaims seeking declaratory judgments of non-infringement and invalidity. The lawsuits currently are in the discovery and claim construction phases. In addition to defending the pending district court litigations, to avoid the high burden of proof required to prove invalidity of the Company's patent claims in the district court litigation, the defendants have filed several requests for inter-partes review by the Patent Trial and Appeal Board seeking to invalidate some of the Company's patent claims. | ||||
On March 2, 2015, the Company filed a patent infringement lawsuit against Nutech Medical, Inc. (“Nutech”) and DCI Donor Services, Inc. (“DCI”) for permanent injunctive relief and unspecified damages. This lawsuit has been filed in the United States District Court for the Northern District of Alabama. The lawsuit alleges that Nutech and DCI have infringed and continue to infringe MiMedx’s patents through the manufacture, use, sale, and/or offering of their tissue graft product. The lawsuit also asserts that Nutech knowingly and willfully made false and misleading representations about its products to customers and/or prospective customers. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
On April 27, 2015, the Company's Board of Directors increased the authorization under the share repurchase program from $20,000,000 to $30,000,000. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||
Schedule II - Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts | |||||||||||||
MIMEDX GROUP, INC. AND SUBSIDIARIES | ||||||||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||
Three Months Ended March 31, 2015 and 2014 (in thousands) | ||||||||||||||
Balance at | Additions charged to Expense or Revenue | Deductions | Balance at | |||||||||||
Beginning of Period | and write-offs | End of Period | ||||||||||||
For the Quarter ended March 31, 2015 | ||||||||||||||
Allowance for doubtful accounts | $ | 1,750 | $ | 260 | $ | — | $ | 2,010 | ||||||
Allowance for product returns | 841 | 709 | (606 | ) | 944 | |||||||||
Allowance for obsolescence | 527 | 130 | (105 | ) | 552 | |||||||||
For the Quarter ended March 31, 2014 | ||||||||||||||
Allowance for doubtful accounts | $ | 407 | $ | 125 | $ | (6 | ) | $ | 526 | |||||
Allowance for product returns | 215 | 201 | (111 | ) | 305 | |||||||||
Allowance for obsolescence | 322 | 24 | (23 | ) | 323 | |||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of estimates | Use of Estimates |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |
Accounts Receivable | Accounts Receivable |
Accounts receivable represent amounts due from customers for which revenue has been recognized. Generally, the Company does not require collateral or any other security to support its receivables. | |
The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing receivables. The Company determines the allowance based on factors such as historical collection experience, customers' current creditworthiness, customer concentrations, age of accounts receivable balance and general economic conditions that may affect the customers' ability to pay. | |
Inventories | Inventories |
Inventory is valued at standard cost, which approximates actual cost computed on a first-in, first-out basis, not in excess of market value. The Company assesses the valuation of its inventory on a periodic basis and makes adjustments to the value for estimated excess and obsolete inventory based on estimates about future demand. The excess balance determined by this analysis becomes the basis for the Company's excess inventory charge. The Company's excess inventory review process includes analysis of sales forecasts, managing product rollovers and working with operations to maximize recovery of excess inventory. | |
Revenue Recognition | Revenue Recognition |
The Company sells its products through a combination of a direct sales force and independent stocking distributors and representatives in the U.S. and independent distributors in international markets. The Company recognizes revenue when title to the goods transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. In cases where the Company utilizes distributors or ships product directly to the end user, it recognizes revenue upon shipment provided all other revenue recognition criteria have been met. A portion of the Company's revenue is generated from inventory maintained at hospitals or with the field representatives. For these products, revenue is recognized at the time the product has been used or implanted. The Company records estimated sales returns, discounts and allowances as a reduction of net sales in the same period revenue is recognized. | |
Patent Costs | Patent Costs |
The Company incurs certain legal and related costs in connection with patent applications for tissue-based products and processes. The Company capitalizes such costs to be amortized over the expected life of the patent to the extent that an economic benefit is anticipated from the resulting patent or alternative future use is available to the Company and are included in Intangible Assets in the Condensed Consolidated Balance Sheets. The Company capitalized approximately $201,000 of patent costs during the first three months of 2015. The Company capitalized approximately $168,000 of patent costs during the first three months of 2014. | |
Treasury Stock | Treasury Stock |
The Company accounts for the purchase of treasury stock under the cost method. Treasury stock which is reissued for the exercise of option grants and the issuance of restricted stock grants is accounted for on a first - in first - out (FIFO) basis. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
The Company considers the applicability and impact of all ASUs issued effective and not yet effective. In May 2014, the Financial Accounting Standards Board issued ASU 2014-09, “Revenue Recognition - Revenue from Contracts with Customers” (ASU 2014-09) that requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service. This update is effective for annual reporting periods beginning on or after December 15, 2016 and interim periods therein and requires expanded disclosures. We are currently assessing the impact the adoption of ASU 2014-09 will have on our condensed consolidated financial statements. All other ASUs issued effective and not yet effective for the three months ended March 31, 2015, and through the date of this report, were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's financial position or results of operations. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory | Inventories consisted of the following items as of March 31, 2015, and December 31, 2014 (in thousands): | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Raw materials | $ | 251 | $ | 255 | ||||
Work in process | 2,632 | 3,419 | ||||||
Finished goods | 1,917 | 1,986 | ||||||
Inventory, gross | 4,800 | 5,660 | ||||||
Reserve for obsolescence | (552 | ) | (527 | ) | ||||
Inventory, net | $ | 4,248 | $ | 5,133 | ||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | Property and equipment consist of the following as of March 31, 2015, and December 31, 2014 (in thousands): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Leasehold improvements | $ | 2,589 | $ | 2,559 | ||||
Lab and clean room equipment | 3,176 | 3,040 | ||||||
Furniture and office equipment | 2,600 | 2,398 | ||||||
Construction in progress | 1,928 | 949 | ||||||
Property and equipment, gross | 10,293 | 8,946 | ||||||
Less accumulated depreciation | (3,853 | ) | (3,499 | ) | ||||
Property and equipment, net | $ | 6,440 | $ | 5,447 | ||||
Intangible_Assets_and_Royalty_1
Intangible Assets and Royalty Agreement (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||
Intangible assets activity summary | Intangible assets are summarized as follows (in thousands): | |||||||||
Weighted | 31-Mar-15 | 31-Dec-14 | ||||||||
Average | ||||||||||
Amortization | ||||||||||
Lives | ||||||||||
Cost | Cost | |||||||||
Licenses (a) (b) | 10 years | $ | 1,009 | $ | 1,009 | |||||
Patents & Know How (b) | 17 years | 7,893 | 7,891 | |||||||
Customer & Supplier Relationships (b) | 14 years | 3,761 | 3,761 | |||||||
Tradenames & Trademarks (b) | indefinite | 1,008 | 1,008 | |||||||
In Process Research & Development (b) | n/a | 25 | 25 | |||||||
Patents in Process (c) | n/a | 1,281 | 1,082 | |||||||
Total | 14,977 | 14,776 | ||||||||
Less Accumulated amortization | (4,164 | ) | (3,931 | ) | ||||||
Net | $ | 10,813 | $ | 10,845 | ||||||
(a) | On January 29, 2007, the Company acquired a license from Shriners Hospitals for Children and University of South Florida Research Foundation, Inc. in the amount of $996,000. Within 30 days after the receipt by the Company of approval by the FDA allowing the sale of the first licensed product, the Company is required to pay an additional $200,000 to the licensor. Due to its contingent nature, this amount is not recorded as a liability. The Company will also be required to pay a royalty of 3% on all commercial sales revenue from the licensed products. The Company is also obligated to pay a $50,000 minimum annual royalty payment over the life of the license. As of March 31, 2015, this license had a remaining net book value of approximately $184,000. | |||||||||
(b) | On January 5, 2011, the Company acquired Surgical Biologics, LLC. As a result, the Company recorded intangible assets for Customer & Supplier Relationships of $3,761,000, Patents & Know-How of $7,690,000, Licenses of $13,000, Trade Names & Trademarks of $1,008,000 and In-Process Research & Development of $25,000. For the three months ended March 31, 2015 an additional $2,333 of costs associated with patents granted during the period were capitalized and included in Patents & Know-How subject to amortization. | |||||||||
(c) | Patents in Process consist of capitalized external legal and other registration costs in connection with internally developed tissue-based patents that are pending. Once issued, the costs associated with a given patent will be included in Patents & Know-How under intangible assets subject to amortization. | |||||||||
Estimated future amortization expense for intangible assets | Expected future amortization of intangible assets as of March 31, 2015, is as follows (in thousands): | |||||||||
Year ending December 31, | Estimated | |||||||||
Amortization | ||||||||||
Expense | ||||||||||
2015 (a) | $ | 697 | ||||||||
2016 | 929 | |||||||||
2017 | 840 | |||||||||
2018 | 830 | |||||||||
2019 | 830 | |||||||||
Thereafter | 5,679 | |||||||||
$ | 9,805 | |||||||||
(a) Estimated amortization expense for the year ending December 31, 2015, includes only amortization to be recorded after March 31, 2015. |
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Computation of Basic and Diluted Net Loss per Share | The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands except share data): | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Net income (loss) | $ | 4,087 | $ | (922 | ) | |||
Denominator for basic earnings per share - weighted average shares | 105,820,335 | 105,358,694 | ||||||
Effect of dilutive securities: Stock options, restricted stock, and warrants outstanding(a) | 7,818,216 | — | ||||||
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities | 113,638,551 | 105,358,694 | ||||||
Income (loss) per common share - basic | $ | 0.04 | $ | (0.01 | ) | |||
Income (loss) per common share - diluted | $ | 0.04 | $ | (0.01 | ) | |||
(a) Securities outstanding that are included in the computation above, utilizing the treasury stock method for the three months ended March 31, 2015, are as follows: | ||||||||
Outstanding Stock Options | 7,392,355 | |||||||
Outstanding Warrants | 42,400 | |||||||
Restricted Stock Awards | 383,461 | |||||||
7,818,216 | ||||||||
Securities outstanding for the three months ended March 31, 2014 were excluded from the computation of diluted earnings per share because they would have been anti-dilutive. |
Equity_Tables
Equity (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Stock Options Activity | Activity with respect to the stock options is summarized as follows: | |||||||||||||||
Number | Weighted- | Weighted-Average | Aggregate | |||||||||||||
of | Average | Remaining | Intrinsic | |||||||||||||
Shares | Exercise | Contractual Term | Value | |||||||||||||
Price | (in years) | |||||||||||||||
Outstanding at January 1, 2015 | 16,474,227 | $ | 3.43 | |||||||||||||
Granted | 57,600 | 9.55 | ||||||||||||||
Exercised | (760,156 | ) | 1.68 | |||||||||||||
Unvested options forfeited | (140,996 | ) | 6.43 | |||||||||||||
Outstanding at March 31, 2015 | 15,630,675 | 3.51 | 7.1 | $ | 107,655,519 | |||||||||||
Vested at March 31, 2015 | 10,940,415 | 2.51 | 6.6 | $ | 86,267,905 | |||||||||||
Vested or expected to vest at March 31, 2015 (a) | 15,419,100 | $ | 3.47 | 7.1 | $ | 106,858,970 | ||||||||||
(a) | Includes forfeiture adjusted unvested shares. | |||||||||||||||
Stock Options Outstanding and Exercisable | Following is a summary of stock options outstanding and exercisable at March 31, 2015: | |||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number outstanding | Weighted-Average | Weighted- | Number Exercisable | Weighted- | |||||||||||
Remaining | Average | Average | ||||||||||||||
Contractual Term | Exercise | Exercise Price | ||||||||||||||
(in years) | Price | |||||||||||||||
$0.50 - $0.76 | 441,429 | 4.1 | $ | 0.72 | 441,429 | $ | 0.72 | |||||||||
$0.87 - $1.35 | 5,544,494 | 6.4 | 1.2 | 5,519,492 | 1.2 | |||||||||||
$1.40 - $2.29 | 1,361,717 | 4.7 | 1.64 | 1,240,048 | 1.65 | |||||||||||
$2.33 - $3.75 | 1,668,922 | 7.4 | 2.77 | 1,015,730 | 2.78 | |||||||||||
$3.95 - $5.99 | 3,246,711 | 8.1 | 5.18 | 1,790,263 | 5.1 | |||||||||||
$6.02 - $9.13 | 3,184,802 | 8.5 | 7.06 | 933,453 | 7.07 | |||||||||||
$9.22- $10.99 | 182,600 | 9.7 | 10.13 | — | — | |||||||||||
15,630,675 | 7.1 | $ | 3.51 | 10,940,415 | $ | 2.51 | ||||||||||
Fair Value of Options, Valuation Assumptions | The assumptions used in calculating the fair value of options using the Black-Scholes-Merton option-pricing model are set forth in the following table: | |||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Expected volatility | 56.8- 58.1% | 64.1 - 64.5% | ||||||||||||||
Expected life (in years) | 6 | 6 | ||||||||||||||
Expected dividend yield | — | — | ||||||||||||||
Risk-free interest rate | 1.57% - 1.66% | 1.69% - 1.96% | ||||||||||||||
Restricted Stock Awards Roll Forward | Activity with respect to restricted stock awards is summarized as follows: | |||||||||||||||
Number | Weighted-Average Grant Date | |||||||||||||||
of | Fair Value | |||||||||||||||
Shares | ||||||||||||||||
Unvested at January 1, 2015 | 1,228,898 | $7.16 | ||||||||||||||
Granted | 1,290,858 | 9.52 | ||||||||||||||
Vested | (232,691 | ) | 6.54 | |||||||||||||
Forfeited | (715 | ) | 7.24 | |||||||||||||
Unvested at March 31, 2015 | 2,286,350 | $8.56 | ||||||||||||||
Allocation of Share-based Compensation | For the three months ended March 31, 2015 and 2014, the Company recognized stock-based compensation as follows (in thousands): | |||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Cost of sales | $ | 95 | $ | 97 | ||||||||||||
Research and development | 186 | 160 | ||||||||||||||
Selling, general and administrative | 3,652 | 2,115 | ||||||||||||||
$ | 3,933 | $ | 2,372 | |||||||||||||
Supplemental_disclosure_of_cas1
Supplemental disclosure of cash flow and non-cash investing and financing activities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||
Supplemental Disclosure of Cash Flow and Non-cash Investing and Financing Activities | Selected cash payments, receipts, and noncash activities are as follows (in thousands): | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Cash paid for interest | $ | 14 | $ | 21 | ||||
Income taxes paid | 363 | 7 | ||||||
Stock issuance of 11,321 shares in exchange for services performed | 71 | — | ||||||
Contractual_Commitments_and_Co1
Contractual Commitments and Contingencies (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Estimated Annual Lease, Royalty and Employment Agreement Expenses | In addition to the Capital Leases noted above in Note 7, the Company has entered into operating lease agreements for facility space and equipment. These leases expire over the next four years and generally contain renewal options. The Company anticipates that most of these leases will be renewed or replaced upon expiration. The Company also has commitments for meeting space and to various charitable organizations. The estimated annual lease payments, meeting space and charitable organization commitments are as follows (in thousands): | |||
12-month period ended March 31 | ||||
2016 | $ | 2,326 | ||
2017 | 1,502 | |||
2018 | 1,520 | |||
2019 | 1,192 | |||
Thereafter | — | |||
$ | 6,540 | |||
Basis_of_Presentation_Details
Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2015 | |
segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | 1 |
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (Patents [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net of accumulated amortization | $201 | $168 |
Liquidity_and_Managements_Plan1
Liquidity and Management's Plans (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Liquidity and management's plans [Abstract] | ||||
Cash and cash equivalents | $38,696 | $46,582 | $43,019 | $44,078 |
Total current assets | 82,286 | 85,677 | ||
Total current liabilities | $18,460 | $18,404 |
Short_Term_Investments_Details
Short Term Investments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Investment [Line Items] | ||||
Cash and cash equivalents | $38,696 | $46,582 | $43,019 | $44,078 |
Short term investments | 6,000 | 5,750 | ||
Certificates of Deposit | ||||
Investment [Line Items] | ||||
Short term investments | $6,000 | $5,750 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $251 | $255 |
Work in process | 2,632 | 3,419 |
Finished goods | 1,917 | 1,986 |
Inventory, gross | 4,800 | 5,660 |
Reserve for obsolescence | -552 | -527 |
Inventory, net | $4,248 | $5,133 |
Investments_Details
Investments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Investments, All Other Investments [Abstract] | ||
Investments | $2,500 | $3,250 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Property and equipment [Line Items] | |||
Property and equipment, gross | $10,293 | $8,946 | |
Less accumulated depreciation | -3,853 | -3,499 | |
Property and equipment, net | 6,440 | 5,447 | |
Other liabilities | 1,244 | 1,526 | |
Capital Leases Interest Rate Effective Percentage Minimum | 3.00% | ||
Capital Leases Interest Rate Effective Percentage Maximum | 12.00% | ||
Depreciation | 354 | 263 | |
Leasehold improvements | |||
Property and equipment [Line Items] | |||
Property and equipment, gross | 2,589 | 2,559 | |
Lab and clean room equipment | |||
Property and equipment [Line Items] | |||
Property and equipment, gross | 3,176 | 3,040 | |
Furniture and office equipment | |||
Property and equipment [Line Items] | |||
Property and equipment, gross | 2,600 | 2,398 | |
Construction in progress | |||
Property and equipment [Line Items] | |||
Property and equipment, gross | 1,928 | 949 | |
Assets Held under Capital Leases | |||
Property and equipment [Line Items] | |||
Property and equipment, net | 427 | ||
Other liabilities | 221 | ||
Leasehold Improvements Paid by Others | |||
Property and equipment [Line Items] | |||
Property and equipment, net | $1,000 |
Intangible_Assets_and_Royalty_2
Intangible Assets and Royalty Agreement (Details) (USD $) | 3 Months Ended | 0 Months Ended | |||||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 29, 2007 | Dec. 31, 2014 | Jan. 05, 2011 | |||
Finite-Lived Intangible Assets [Line Items] | |||||||
Total | $14,977,000 | $14,776,000 | |||||
Less Accumulated amortization | -4,164,000 | -3,931,000 | |||||
Net | 10,813,000 | 10,845,000 | |||||
Net book value | 9,805,000 | ||||||
Amortization of intangible assets | 233,000 | 231,000 | |||||
Estimated future amortization expense [Abstract] | |||||||
2015 | 697,000 | [1] | |||||
2016 | 929,000 | ||||||
2017 | 840,000 | ||||||
2018 | 830,000 | ||||||
2019 | 830,000 | ||||||
Thereafter | 5,679,000 | ||||||
Net book value | 9,805,000 | ||||||
Licenses | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Weighted Average Amortization Lives | 10 years | [2],[3] | |||||
Gross Carrying Value | 1,009,000 | [2],[3] | 1,009,000 | [2],[3] | |||
Licenses | Shriners Hospitals for Children and University of South Florida Research Foundation, Inc. | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Acquisition price | 996,000 | ||||||
Maximum time of approval | 30 days | ||||||
Contingent payments to licensor | 200,000 | ||||||
Contingent royalty to be paid to licensor (in hundredths) | 3.00% | ||||||
Annual royalty payment | 50,000 | ||||||
Net book value | 184,000 | ||||||
Estimated future amortization expense [Abstract] | |||||||
Net book value | 184,000 | ||||||
Licenses | Surgical Biologics, LLC | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross Carrying Value | 13,000 | ||||||
Patents & Know How | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Weighted Average Amortization Lives | 17 years | [2] | |||||
Gross Carrying Value | 7,893,000 | [2] | 7,891,000 | [2] | |||
Patents & Know How | Surgical Biologics, LLC | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross Carrying Value | 7,690,000 | ||||||
Finite-Lived Intangible Assets, Costs | 2,333 | ||||||
Customer & Supplier Relationships | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Weighted Average Amortization Lives | 14 years | [2] | |||||
Gross Carrying Value | 3,761,000 | [2] | 3,761,000 | [2] | |||
Customer & Supplier Relationships | Surgical Biologics, LLC | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross Carrying Value | 3,761,000 | ||||||
Tradenames & Trademarks | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross Carrying Value, Indefinite Lived | 1,008,000 | [2] | 1,008,000 | [2] | |||
Tradenames & Trademarks | Surgical Biologics, LLC | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross Carrying Value, Indefinite Lived | 1,008,000 | ||||||
In Process Research & Development | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross Carrying Value, Indefinite Lived | 25,000 | [2] | 25,000 | [2] | |||
In Process Research & Development | Surgical Biologics, LLC | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross Carrying Value, Indefinite Lived | 25,000 | ||||||
Patents in Process | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross Carrying Value, Indefinite Lived | $1,281,000 | [4] | $1,082,000 | [4] | |||
[1] | Estimated amortization expense for the year ending December 31, 2015, includes only amortization to be recorded after March 31, 2015. | ||||||
[2] | On January 5, 2011, the Company acquired Surgical Biologics, LLC. As a result, the Company recorded intangible assets for Customer & Supplier Relationships of $3,761,000, Patents & Know-How of $7,690,000, Licenses of $13,000, Trade Names & Trademarks of $1,008,000 and In-Process Research & Development of $25,000. For the three months ended March 31, 2015 an additional $2,333 of costs associated with patents granted during the period were capitalized and included in Patents & Know-How subject to amortization. | ||||||
[3] | On January 29, 2007, the Company acquired a license from Shriners Hospitals for Children and University of South Florida Research Foundation, Inc. in the amount of $996,000. Within 30 days after the receipt by the Company of approval by the FDA allowing the sale of the first licensed product, the Company is required to pay an additional $200,000 to the licensor. Due to its contingent nature, this amount is not recorded as a liability. The Company will also be required to pay a royalty of 3% on all commercial sales revenue from the licensed products. The Company is also obligated to pay a $50,000 minimum annual royalty payment over the life of the license. As of March 31, 2015, this license had a remaining net book value of approximately $184,000 | ||||||
[4] | Patents in Process consist of capitalized external legal and other registration costs in connection with internally developed tissue-based patents that are pending. Once issued, the costs associated with a given patent will be included in Patents & Know-How under intangible assets subject to amortization. |
Net_Income_Loss_Per_Share_Deta
Net Income (Loss) Per Share (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Computation of basic and diluted net loss per share [Abstract] | ||||
Net income | $4,087 | ($922) | ||
Denominator for basic earnings per share - weighted average shares | 105,820,335 | 105,358,694 | ||
Effect of dilutive securities: Stock options and warrants outstanding and convertible debt (in shares) | 7,818,216 | [1] | 0 | [1] |
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities | 113,638,551 | 105,358,694 | ||
Income (loss) per common share - basic | $0.04 | ($0.01) | ||
Income (loss) per common share - diluted | $0.04 | ($0.01) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 7,818,216 | |||
Outstanding Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 7,392,355 | |||
Outstanding Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 42,400 | |||
Restricted Stock Awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 383,461 | |||
[1] | Securities outstanding that are included in the computation above, utilizing the treasury stock method for the three months ended March 31, 2015, are as follows:Outstanding Stock Options7,392,355Outstanding Warrants42,400Restricted Stock Awards383,461B 7,818,216Securities outstanding for the three months ended March 31, 2014 were excluded from the computation of diluted earnings per share because they would have been anti-dilutive. |
Equity_Details
Equity (Details) (USD $) | 3 Months Ended | 8 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Jan. 04, 2015 | |||
plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of share-based compensation plans | 3 | |||||
Outstanding assumed options (in shares) | 195,000 | 195,000 | ||||
Additional shares authorized by Board of Directors (in shares) | 4,000,000 | |||||
Shares authorized (in shares) | 26,500,000 | 26,500,000 | ||||
Total unrecognized compensation expense | $12,426,694 | $12,426,694 | ||||
Number of shares [Roll forward] | ||||||
Outstanding, beginning of period (in shares) | 16,474,227 | |||||
Granted (in shares) | 57,600 | |||||
Exercised (in shares) | -760,156 | |||||
Unvested options forfeited (in shares) | -140,996 | |||||
Outstanding, end of period (in shares) | 15,630,675 | 15,630,675 | ||||
Vested at end of period (in shares) | 10,940,415 | 10,940,415 | ||||
Exercisable options, vested and expected to vest (in shares) | 15,419,100 | [1] | 15,419,100 | [1] | ||
Weighted-Average Exercise Price [Roll forward] | ||||||
Outstanding, weighted average exercise price, beginning of period (in dollars per share) | $3.43 | |||||
Granted, weighted average exercise price (in dollars per share) | $9.55 | |||||
Exercised, weighted average exercise price (in dollars per share) | $1.68 | |||||
Unvested options forfeited weighted-average exercise price (in dollars per share) | $6.43 | |||||
Outstanding, weighted average exercise price, end of period (in dollars per share) | $3.51 | $3.51 | ||||
Vested at end of period weighted average exercise price (in dollars per share) | $2.51 | $2.51 | ||||
Vested and expected to vest, weighted average exercise price (in dollars per share) | $3.47 | [1] | $3.47 | [1] | ||
Stock options, additional disclosures [Abstract] | ||||||
Vested at end of period weighted average remaining contractual term | 6 years 7 months 6 days | |||||
Vested and expected to vest, weighted average remaining contractual term | 7 years 1 month 6 days | [1] | ||||
Outstanding intrinsic value | 107,655,519 | 107,655,519 | ||||
Vested at end of period aggregate intrinsic value | 86,267,905 | 86,267,905 | ||||
Vested and expected to vest, aggregate intrinsic value | 106,858,970 | [1] | 106,858,970 | [1] | ||
Exercised options, intrinsic value | 6,402,516 | |||||
Number of outstanding options (in shares) | 15,630,675 | 15,630,675 | ||||
Outstanding Options, weighted average remaining contractual term | 7 years 1 month 6 days | |||||
Outstanding Options, weighted average exercise price (in dollars per share) | $3.51 | $3.51 | ||||
Number of exercisable options (in shares) | 10,940,415 | 10,940,415 | ||||
Exercisable Options, weighted average exercise price (in dollars per share) | $2.51 | $2.51 | ||||
Fair value options valuation assumptions [Abstract] | ||||||
Expected volatility Minimum | 56.80% | 64.10% | ||||
Expected volatility Maximum | 58.10% | 64.50% | ||||
Expected life (in years) | 6 years | 6 years | ||||
Expected dividend yield | 0.00% | 0.00% | ||||
Risk-free interest rate Minimum | 1.57% | 1.69% | ||||
Risk-free interest rate Maximum | 1.66% | 1.96% | ||||
Share-based Compensation [Abstract] | ||||||
Share-based compensation expense | 3,933,000 | 2,372,000 | ||||
Weighted-average grant date fair value for options granted during the period (in dollars per share) | $5.13 | |||||
Weighted- Average Grant Date Fair Value | ||||||
Authorized share amount for repurchase | 20,000,000 | 10,000,000 | ||||
Stock repurchase (in shares) | 1,359,753 | |||||
Shares repurchased, value | 12,254,000 | |||||
Brokerage commissions | 41,000 | |||||
Remaining authorizations under the repurchase program | 2,162,000 | |||||
Shares reissued from the treasury | 1,369,108 | |||||
Shares reissued from the treasury, value | 9,310,268 | |||||
Warrants | ||||||
Weighted- Average Grant Date Fair Value | ||||||
Warrants outstanding (in shares) | 42,400 | 42,400 | ||||
Warrants outstanding (in dollars per share) | 1.09 | 1.09 | ||||
Cost of Products Sold | ||||||
Share-based Compensation [Abstract] | ||||||
Share-based compensation expense | 95,000 | 97,000 | ||||
Research and Development | ||||||
Share-based Compensation [Abstract] | ||||||
Share-based compensation expense | 186,000 | 160,000 | ||||
Selling, General and Administrative | ||||||
Share-based Compensation [Abstract] | ||||||
Share-based compensation expense | 3,652,000 | 2,115,000 | ||||
$0.50 - $0.76 | ||||||
Stock options, additional disclosures [Abstract] | ||||||
Exercise Price Range, lower range limit (in dollars per share) | $0.50 | |||||
Exercise Price Range, upper range limit (in dollars per share) | $0.76 | |||||
Number of outstanding options (in shares) | 441,429 | 441,429 | ||||
Outstanding Options, weighted average remaining contractual term | 4 years 1 month 6 days | |||||
Outstanding Options, weighted average exercise price (in dollars per share) | $0.72 | $0.72 | ||||
Number of exercisable options (in shares) | 441,429 | 441,429 | ||||
Exercisable Options, weighted average exercise price (in dollars per share) | $0.72 | $0.72 | ||||
$0.87 - $1.35 | ||||||
Stock options, additional disclosures [Abstract] | ||||||
Exercise Price Range, lower range limit (in dollars per share) | $0.87 | |||||
Exercise Price Range, upper range limit (in dollars per share) | $1.35 | |||||
Number of outstanding options (in shares) | 5,544,494 | 5,544,494 | ||||
Outstanding Options, weighted average remaining contractual term | 6 years 4 months 24 days | |||||
Outstanding Options, weighted average exercise price (in dollars per share) | $1.20 | $1.20 | ||||
Number of exercisable options (in shares) | 5,519,492 | 5,519,492 | ||||
Exercisable Options, weighted average exercise price (in dollars per share) | $1.20 | $1.20 | ||||
$1.40 - $2.29 | ||||||
Stock options, additional disclosures [Abstract] | ||||||
Exercise Price Range, lower range limit (in dollars per share) | $1.40 | |||||
Exercise Price Range, upper range limit (in dollars per share) | $2.29 | |||||
Number of outstanding options (in shares) | 1,361,717 | 1,361,717 | ||||
Outstanding Options, weighted average remaining contractual term | 4 years 8 months 12 days | |||||
Outstanding Options, weighted average exercise price (in dollars per share) | $1.64 | $1.64 | ||||
Number of exercisable options (in shares) | 1,240,048 | 1,240,048 | ||||
Exercisable Options, weighted average exercise price (in dollars per share) | $1.65 | $1.65 | ||||
$2.33 - $3.75 | ||||||
Stock options, additional disclosures [Abstract] | ||||||
Exercise Price Range, lower range limit (in dollars per share) | $2.33 | |||||
Exercise Price Range, upper range limit (in dollars per share) | $3.75 | |||||
Number of outstanding options (in shares) | 1,668,922 | 1,668,922 | ||||
Outstanding Options, weighted average remaining contractual term | 7 years 4 months 24 days | |||||
Outstanding Options, weighted average exercise price (in dollars per share) | $2.77 | $2.77 | ||||
Number of exercisable options (in shares) | 1,015,730 | 1,015,730 | ||||
Exercisable Options, weighted average exercise price (in dollars per share) | $2.78 | $2.78 | ||||
$3.95 - $5.99 | ||||||
Stock options, additional disclosures [Abstract] | ||||||
Exercise Price Range, lower range limit (in dollars per share) | $3.95 | |||||
Exercise Price Range, upper range limit (in dollars per share) | $5.99 | |||||
Number of outstanding options (in shares) | 3,246,711 | 3,246,711 | ||||
Outstanding Options, weighted average remaining contractual term | 8 years 1 month 6 days | |||||
Outstanding Options, weighted average exercise price (in dollars per share) | $5.18 | $5.18 | ||||
Number of exercisable options (in shares) | 1,790,263 | 1,790,263 | ||||
Exercisable Options, weighted average exercise price (in dollars per share) | $5.10 | $5.10 | ||||
$6.02 - $9.13 | ||||||
Stock options, additional disclosures [Abstract] | ||||||
Exercise Price Range, lower range limit (in dollars per share) | $6.02 | |||||
Exercise Price Range, upper range limit (in dollars per share) | $9.13 | |||||
Number of outstanding options (in shares) | 3,184,802 | 3,184,802 | ||||
Outstanding Options, weighted average remaining contractual term | 8 years 6 months | |||||
Outstanding Options, weighted average exercise price (in dollars per share) | $7.06 | $7.06 | ||||
Number of exercisable options (in shares) | 933,453 | 933,453 | ||||
Exercisable Options, weighted average exercise price (in dollars per share) | $7.07 | $7.07 | ||||
$9.22- $10.99 | ||||||
Stock options, additional disclosures [Abstract] | ||||||
Exercise Price Range, lower range limit (in dollars per share) | $9.22 | |||||
Exercise Price Range, upper range limit (in dollars per share) | $10.99 | |||||
Number of outstanding options (in shares) | 182,600 | 182,600 | ||||
Outstanding Options, weighted average remaining contractual term | 9 years 8 months 12 days | |||||
Outstanding Options, weighted average exercise price (in dollars per share) | $10.13 | $10.13 | ||||
Number of exercisable options (in shares) | 0 | 0 | ||||
Exercisable Options, weighted average exercise price (in dollars per share) | $0 | $0 | ||||
Restricted Stock Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expenses expected to be recognized over a weighted-average period | 2 years 7 months 6 days | |||||
Total unrecognized stock-based compensation related to time-based, nonvested restricted stock | $17,989,017 | $17,989,017 | ||||
Number of Shares | ||||||
Beginning Balance | 1,228,898 | |||||
Granted | 1,290,858 | |||||
Vested | -232,691 | |||||
Forfeited | -715 | |||||
Ending Balance | 2,286,350 | 2,286,350 | ||||
Weighted- Average Grant Date Fair Value | ||||||
Beginning Balance (in dollars per share) | $7.16 | |||||
Granted (in dollars per share) | $9.52 | |||||
Vested (in dollars per share) | $6.54 | |||||
Forfeited (in dollars per share) | $7.24 | |||||
Beginning Balance (in dollars per share) | $8.56 | $8.56 | ||||
[1] | Includes forfeiture adjusted unvested shares. |
Income_taxes_Details
Income taxes (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (as a percentage) | 3.40% | 1.10% |
Supplemental_disclosure_of_cas2
Supplemental disclosure of cash flow and non-cash investing and financing activities (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Supplemental disclosure of cash flow and non-cash investing and financing activities [Abstract] | ||
Cash paid for interest | $14 | $21 |
Income taxes paid | 363 | 7 |
Stock issuance of 11,321 shares in exchange for services performed | $71 | $0 |
Shares issued for services performed (in shares) | 11,321 | 0 |
Contractual_Commitments_and_Co2
Contractual Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
patient | |||
Loss Contingencies [Line Items] | |||
Lease expiration period | 4 years | ||
Rent expense | $284,000 | $282,000 | |
Number of patients | 150 | ||
Estimated annual lease, royalty, and employment agreement expenses [Abstract] | |||
2016 | 2,326,000 | ||
2017 | 1,502,000 | ||
2018 | 1,520,000 | ||
2019 | 1,192,000 | ||
2020 | 0 | ||
Total Contractual commitments | 6,540,000 | ||
Sales Revenue, Net | Product Concentration Risk | |||
Loss Contingencies [Line Items] | |||
Percentage of revenue | 14.00% | ||
Standby Letters of Credit | |||
Loss Contingencies [Line Items] | |||
Standby letters of credit | $500,000 | ||
Minimum | |||
Loss Contingencies [Line Items] | |||
Number of clinical sites | 10 | ||
Maximum | |||
Loss Contingencies [Line Items] | |||
Number of clinical sites | 20 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 8 Months Ended | 0 Months Ended |
Mar. 31, 2015 | Jan. 04, 2015 | Apr. 27, 2015 | |
Subsequent Event [Line Items] | |||
Authorized share amount for repurchase | $20,000,000 | $10,000,000 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Authorized share amount for repurchase | $30,000,000 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Allowance for doubtful accounts | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance at Beginning of Period | $1,750 | $407 |
Additions charged to Expense or Revenue | 260 | 125 |
Deductions and write-offs | 0 | -6 |
Balance at End of Period | 2,010 | 526 |
Allowance for product returns | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance at Beginning of Period | 841 | 215 |
Additions charged to Expense or Revenue | 709 | 201 |
Deductions and write-offs | -606 | -111 |
Balance at End of Period | 944 | 305 |
Allowance for obsolescence | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance at Beginning of Period | 527 | 322 |
Additions charged to Expense or Revenue | 130 | 24 |
Deductions and write-offs | -105 | -23 |
Balance at End of Period | $552 | $323 |