Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 7-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | NSTG | |
Entity Registrant Name | NANOSTRING TECHNOLOGIES INC | |
Entity Central Index Key | 1401708 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,410,020 |
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 | $14,348 | $17,223 |
Short-term investments | 41,160 | 55,002 |
Accounts receivable, net | 10,465 | 12,436 |
Inventory | 7,887 | 5,444 |
Prepaid expenses and other | 5,402 | 5,242 |
Total current assets | 79,262 | 95,347 |
Restricted cash | 143 | 143 |
Property and equipment, net | 6,875 | 6,366 |
Other assets | 857 | 892 |
Total assets | 87,137 | 102,748 |
Current liabilities: | ||
Accounts payable | 4,553 | 3,380 |
Accrued liabilities | 6,598 | 10,403 |
Deferred revenue, current portion | 4,001 | 4,627 |
Deferred rent, current portion | 424 | 147 |
Long-term debt, current portion | 271 | 251 |
Total current liabilities | 15,847 | 18,808 |
Deferred revenue, net of current portion | 7,098 | 7,135 |
Deferred rent, net of current portion | 1,350 | 1,317 |
Long-term debt, net of current portion | 30,903 | 30,675 |
Total liabilities | 55,198 | 57,935 |
Commitment and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value, 15,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.0001 par value, 150,000 shares authorized; 18,392 and 18,272 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 2 | 2 |
Additional paid-in-capital | 223,720 | 221,724 |
Accumulated other comprehensive loss | -19 | -43 |
Accumulated deficit | -191,764 | -176,870 |
Total stockholders' equity | 31,939 | 44,813 |
Total liabilities and stockholders' equity | $87,137 | $102,748 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 15,000 | 15,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 18,392 | 18,272 |
Common stock, shares outstanding | 18,392 | 18,272 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue: | ||
Product and service | $10,832 | $8,751 |
Collaboration | 761 | 0 |
Total revenue | 11,593 | 8,751 |
Costs and expenses: | ||
Cost of product and service revenue | 5,340 | 4,325 |
Research and development | 5,916 | 4,732 |
Selling, general and administrative | 14,125 | 10,674 |
Total costs and expenses | 25,381 | 19,731 |
Loss from operations | -13,788 | -10,980 |
Other income (expense): | ||
Interest income | 67 | 64 |
Interest expense | -984 | -536 |
Other income (expense) | -189 | 30 |
Total other income (expense), net | -1,106 | -442 |
Net loss | ($14,894) | ($11,422) |
Net loss per share - basic and diluted | ($0.81) | ($0.68) |
Weighted average shares used in computing basic and diluted net loss per share | 18,310 | 16,917 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net loss | ($14,894) | ($11,422) |
Change in unrealized gain (loss) on short-term investments | 25 | -13 |
Comprehensive loss | ($14,869) | ($11,435) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net loss | ($14,894) | ($11,422) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 485 | 396 |
Stock-based compensation expense | 1,252 | 1,039 |
Net amortization of premium on short-term investments | 88 | -173 |
Amortization of debt discount | 0 | 51 |
Interest accrued on long-term notes | 0 | 88 |
Accrued interest converted to principal balance of term loan | 267 | 0 |
Gain on sale of investments | 0 | -2 |
Changes in operating assets and liabilities | ||
Accounts receivable, net | 1,966 | 902 |
Inventory | -2,690 | -772 |
Prepaid expenses and other | -226 | -568 |
Other assets | 35 | 136 |
Accounts payable | 1,097 | -735 |
Accrued liabilities | -3,747 | -1,651 |
Deferred revenue | -663 | -217 |
Deferred rent | 310 | -130 |
Net cash used in operating activities | -16,720 | -13,058 |
Investing activities | ||
Purchases of property and equipment | -632 | -446 |
Decrease in restricted cash | 0 | 59 |
Proceeds from sale of short-term investments | 3,000 | 5,671 |
Proceeds from maturity of short-term investments | 22,679 | 0 |
Purchases of short-term investments | -11,900 | -29,631 |
Net cash provided by (used) in investing activities | 13,147 | -24,347 |
Financing activities | ||
Repayment of long-term debt | -68 | -1,129 |
Proceeds from public offering | 0 | 57,016 |
Proceeds from issuance of common stock for employee stock purchase plan | 664 | 442 |
Proceeds from exercise of stock options | 82 | 108 |
Net cash provided by financing activities | 678 | 56,437 |
Net (decrease) increase in cash and cash equivalents | -2,895 | 19,032 |
Effect of exchange rate changes on cash and cash equivalents | 20 | 0 |
Cash and cash equivalents | ||
Beginning of period | 17,223 | 9,941 |
End of period | $14,348 | $28,973 |
Description_of_Business
Description of Business | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
Description of Business | 1 | Description of Business |
NanoString Technologies, Inc. (the “Company”) was incorporated in the state of Delaware on June 20, 2003. The Company’s headquarters are located in Seattle, Washington. The Company’s technology enables direct detection, identification and quantification of individual target molecules in a biological sample by attaching a unique color coded fluorescent reporter to each target molecule of interest. The Company markets its proprietary nCounter Analysis System, consisting of instruments and consumables, including its Prosigna Breast Cancer Assay, to academic, government, biopharmaceutical and clinical laboratory customers. | ||
The Company has incurred losses to date and expects to incur additional losses in the foreseeable future. The Company continues to devote the majority of its resources to the growth of its business in accordance with its business plan. The Company’s activities have been financed primarily through the sale of equity securities, incurrence of indebtedness and, to a lesser extent, capital leases and other borrowings. |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
Basis of Presentation and Summary of Significant Accounting Policies | 2 | Basis of Presentation and Summary of Significant Accounting Policies |
Basis of Presentation | ||
The accompanying unaudited condensed consolidated financial statements reflect the accounts of the Company and its wholly-owned subsidiaries. The unaudited condensed consolidated 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 disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for annual financial statements. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP for unaudited condensed consolidated financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and results of its operations, as of and for the periods presented. | ||
Unless indicated otherwise, all amounts presented in financial tables are presented in thousands, except for per share and par value amounts. | ||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The results of the Company’s operations for the three month period ended March 31, 2015 are not necessarily indicative of the results to be expected for the full year or for any other period. | ||
Revenue Recognition | ||
The Company recognizes revenue when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the price to the customer is fixed or determinable and (4) collectability is reasonably assured. The Company generates the majority of its revenue from the sale of products and services. The Company’s products consist of its proprietary nCounter Analysis System and related consumables. Services consist of extended warranties and service fees for assay processing. A delivered product or service is considered to be a separate unit of accounting when it has value to the customer on a stand-alone basis. Products or services have value on a stand-alone basis if they are sold separately by any vendor or the customer could resell the delivered product. | ||
Instruments, consumables and in vitro diagnostic kits are considered to be separate units of accounting as they are sold separately and revenue is recognized upon transfer of ownership, which is generally upon shipment. Instrument revenue related to installation and calibration services is recognized when services are rendered by the Company. Such services can also be provided by the Company’s distribution partners and other third parties. For instruments sold for use primarily to run Prosigna assays, training must be provided prior to instrument revenue recognition. Instrument revenue from leased instruments is recognized ratably over the lease term. | ||
Service revenue is recognized when earned, which is generally upon the rendering of the related services. Service agreements and service fees for assay processing are each considered separate units of accounting as they are sold separately. The Company offers service agreements on its nCounter Analysis System for periods ranging from 12 to 36 months after the end of the standard 12-month warranty period. Service agreements are generally separately priced. Revenue from service agreements is deferred and recognized in income on a straight-line basis over the service period. | ||
For arrangements with multiple deliverables, the Company allocates the agreement consideration at the inception of the agreement to the deliverables based upon their relative selling prices. To date, selling prices have been established by reference to vendor specific objective evidence based on stand-alone sales transactions for each deliverable. Vendor specific objective evidence is considered to have been established when a substantial majority of individual sales transactions within the previous 12 month period fall within a reasonably narrow range, which the Company has defined to be plus or minus 15% of the median sales price of actual stand-alone sales transactions. The Company uses its best estimate of selling price for individual deliverables when vendor specific objective evidence or third-party evidence is unavailable. Allocated revenue is only recognized for each deliverable when the revenue recognition criteria have been met. | ||
The Company enters into collaborative agreements that may generate upfront fees with subsequent milestone payments that may be earned upon completion of development-related milestones. The Company is able to estimate the total cost of services under the arrangements and recognizes collaboration revenue using a proportional performance model. Costs incurred to date compared to total expected costs are used to determine proportional performance, as this is considered to be representative of the delivery of outputs under the arrangements. Revenue recognized at any point in time is limited to cash received and amounts contractually due. Changes in estimates of total expected costs are accounted for prospectively as a change in estimate. From period to period, collaboration revenue can fluctuate substantially based on the achievement of development-related milestones. | ||
Recent Accounting Pronouncements | ||
As an “emerging growth company,” the Jumpstart Our Business Startups Act allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. | ||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update entitled “ASU 2014-09, Revenue from Contracts with Customers.” The standard requires entities to recognize revenue through the application of a five step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue as the entity satisfies the performance obligations. The standard will become effective for the Company beginning January 1, 2018. The Company is currently evaluating the guidance to determine the potential impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. | ||
In June 2014, FASB issued an accounting standards update entitled “ASU 2014-12, Compensation – Stock Compensation.” The standard requires entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The standard will become effective for the Company beginning January 1, 2016. The Company is currently evaluating the guidance to determine the potential impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. | ||
In August 2014, FASB issued an accounting standards update entitled “ASU 2014-15, Presentation of Financial Statements – Going Concern.” The standard requires entities to evaluate for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). The standard will become effective for the Company beginning January 1, 2017. | ||
In February 2015, FASB issued an accounting standards update entitled “ASU 2015-02, Amendments to the Consolidation Analysis.” The standard requires entities to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The standard will become effective for the Company beginning after December 15, 2017. The Company is currently evaluating the guidance to determine the potential impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. | ||
On April 7, 2015, FASB issued an accounting standards update entitled “ASU 2015-03, Interest- Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs.” The standard requires entities to present debt issuance costs on the balance sheets as a direct deduction from the related debt liability rather than as an asset, and the amortization is reported as interest expense. The standard will become effective for the Company beginning after December 15, 2015. The Company is currently evaluating the guidance to determine the potential impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. |
Net_Loss_Per_Share
Net Loss Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Net Loss Per Share | 3 | Net Loss Per Share | |||||||
Net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Any outstanding stock options and warrants have not been included in the calculation of the diluted net loss per share because to do so would be anti-dilutive. Accordingly, the numerator and the denominator used in computing both basic and diluted net loss per share for each period are the same. | |||||||||
The following outstanding options and warrants were excluded from the computation of basic and diluted net loss per share for the periods presented because their effect would have been anti-dilutive (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Options to purchase common stock | 3,980 | 3,169 | |||||||
Common stock warrants | 572 | 618 |
Concentration_of_Risks
Concentration of Risks | 3 Months Ended | |
Mar. 31, 2015 | ||
Risks and Uncertainties [Abstract] | ||
Concentration of Risks | 4 | Concentration of Risks |
Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term investments and accounts receivable. Cash is invested in accordance with the Company’s investment policy, which includes guidelines intended to minimize and diversify credit risk. Most of the Company’s investments are not federally insured. The Company has credit risk related to the collectability of its accounts receivable. The Company performs initial and ongoing evaluations of its customers’ credit history or financial position and generally extends credit on account without collateral. The Company has not experienced any significant credit losses to date as a result of credit risk concentration. | ||
The Company had no customers that individually represented more than 10% of total revenue during the three months ended March 31, 2015 and one during the three months ended March 31, 2014. The Company had one customer that represented more than 10% of total accounts receivable as of March 31, 2015 and one customer that represented more than 10% of total accounts receivable as of December 31, 2014. | ||
The Company is also subject to supply chain risks related to the outsourcing of the manufacturing and production of its instruments to sole suppliers. Although there are a limited number of manufacturers for instruments of this type, the Company believes that other suppliers could provide similar products on comparable terms. Similarly, the Company sources certain raw materials used in the manufacture of consumables from certain sole suppliers. A change in suppliers could cause a delay in manufacturing and a possible loss of sales, which would adversely affect operating results. |
Shortterm_Investments
Short-term Investments | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Short-term Investments | 5 | Short-term Investments | |||||||||||||||||||||||
Short-term investments consisted of available-for-sale securities as follows (in thousands): | |||||||||||||||||||||||||
Type of security as of March 31, 2015 | Amortized | Gross | Gross | Fair value | |||||||||||||||||||||
cost | unrealized | unrealized | |||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||
Corporate debt securities | $ | 38,759 | $ | 1 | $ | (18 | ) | $ | 38,742 | ||||||||||||||||
Asset-backed securities | 2,419 | — | (1 | ) | 2,418 | ||||||||||||||||||||
Total available-for-sale securities | $ | 41,178 | $ | 1 | $ | (19 | ) | $ | 41,160 | ||||||||||||||||
Type of security as of December 31, 2014 | Amortized | Gross | Gross | Fair value | |||||||||||||||||||||
cost | unrealized | unrealized | |||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||
U.S. government-related debt securities | $ | 4,502 | $ | — | $ | (4 | ) | $ | 4,498 | ||||||||||||||||
Corporate debt securities | 47,345 | 2 | (40 | ) | 47,307 | ||||||||||||||||||||
Asset-backed securities | 3,198 | — | (1 | ) | 3,197 | ||||||||||||||||||||
Total available-for-sale securities | $ | 55,045 | $ | 2 | $ | (45 | ) | $ | 55,002 | ||||||||||||||||
The fair values of available-for-sale securities by contractual maturity were as follows (in thousands): | |||||||||||||||||||||||||
Contractual maturity | March 31, | December 31, | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Maturing in one year or less | $ | 38,612 | $ | 51,235 | |||||||||||||||||||||
Maturing in one to three years | 2,548 | 3,767 | |||||||||||||||||||||||
Total available-for-sale securities | $ | 41,160 | $ | 55,002 | |||||||||||||||||||||
The following table summarizes investments that have been in a continuous unrealized loss position for less than 12 months and a continuous unrealized loss position for more than 12 months as of March 31, 2015 (in thousands): | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
value | unrealized | value | unrealized | value | unrealized | ||||||||||||||||||||
losses | losses | losses | |||||||||||||||||||||||
Corporate debt securities | $ | 28,340 | $ | (17 | ) | $ | 1,999 | $ | (1 | ) | $ | 30,339 | $ | (18 | ) | ||||||||||
Asset-backed securities | 2,418 | (1 | ) | — | — | 2,418 | (1 | ) | |||||||||||||||||
Total | $ | 30,758 | $ | (18 | ) | $ | 1,999 | $ | (1 | ) | $ | 32,757 | $ | (19 | ) | ||||||||||
The Company invests in securities that are rated investment grade or better. The unrealized losses on investments as of March 31, 2015 and December 31, 2014 were primarily caused by interest rate increases. | |||||||||||||||||||||||||
The Company reviews the individual securities in its portfolio to determine whether a decline in a security’s fair value below the amortized cost basis is other-than-temporary. The Company determined that as of March 31, 2015, there were no investments in its portfolio that were other-than-temporarily impaired. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | 6 | Fair Value Measurements | |||||||||||||||
The Company establishes the fair value of its assets and liabilities using the price that would be received to sell an asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is used to measure fair value. The three levels of the fair value hierarchy are as follows: | |||||||||||||||||
Level 1: | Quoted prices in active markets for identical assets and liabilities. | ||||||||||||||||
Level 2: | Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. | ||||||||||||||||
Level 3: | Valuations derived from valuation techniques in which one or more significant inputs and significant value drivers are unobservable. | ||||||||||||||||
The recorded amounts of certain financial instruments, including cash, accounts receivable, prepaid expenses and other, accounts payable and accrued liabilities, approximate fair value due to their relatively short-term maturities. The recorded amount of the Company’s long-term debt approximates fair value because the related interest rates approximate rates currently available to the Company. | |||||||||||||||||
The Company’s available-for-sale securities by level within the fair value hierarchy were as follows (in thousands): | |||||||||||||||||
As of March 31, 2015 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market fund | $ | 12,722 | $ | — | $ | — | $ | 12,722 | |||||||||
Short-term investments: | |||||||||||||||||
Corporate debt securities | — | 38,742 | — | 38,742 | |||||||||||||
Asset-backed securities | — | 2,418 | — | 2,418 | |||||||||||||
Total | $ | 12,722 | $ | 41,160 | $ | — | $ | 53,882 | |||||||||
As of December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market fund | $ | 13,426 | $ | — | $ | — | $ | 13,426 | |||||||||
Short-term investments: | |||||||||||||||||
U.S. government-related debt securities | — | 4,498 | — | 4,498 | |||||||||||||
Corporate debt securities | — | 47,307 | — | 47,307 | |||||||||||||
Asset-backed securities | — | 3,197 | — | 3,197 | |||||||||||||
Total | $ | 13,426 | $ | 55,002 | $ | — | $ | 68,428 | |||||||||
Inventory
Inventory | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventory | 7 | Inventory | |||||||
Inventory consisted of the following as of the date indicated (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 2,260 | $ | 1,299 | |||||
Work in process | 2,509 | 2,157 | |||||||
Finished goods | 3,118 | 1,988 | |||||||
$ | 7,887 | $ | 5,444 | ||||||
Reserve_for_Product_Warranties
Reserve for Product Warranties | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Guarantees [Abstract] | |||||
Reserve for Product Warranties | 8 | Reserve for Product Warranties | |||
The Company generally provides a one-year warranty on its nCounter Analysis Systems and establishes an accrual based on historical product repair rates and actual warranty costs incurred. Warranty expense is recorded as a component of cost of product and service revenue in the condensed consolidated statements of operations. | |||||
The following information reconciles changes in the Company’s warranty reserve and related costs (in thousands): | |||||
Warranty reserve, December 31, 2014 | $ | 503 | |||
Cost of warranty claims | (90 | ) | |||
Warranty accrual | 60 | ||||
Warranty reserve, March 31, 2015 | $ | 473 | |||
Longterm_Debt_and_Obligations
Long-term Debt and Obligations | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-term Debt and Obligations | 9 | Long-term Debt and Obligations | |||||||
In April 2014, the Company entered into a term loan agreement under which it may borrow up to $45.0 million, or up to an aggregate of approximately $51.0 million if the Company elects to exercise in full an option to defer payment of a portion of the interest that would accrue on the borrowing under the term loan agreement. Upon initial closing, the Company borrowed $20.0 million, the proceeds of which were primarily used to repay the outstanding balance under a previous credit facility plus a related $1.0 million end of term payment, a $0.3 million make-whole premium, and interest accrued. The Company incurred and recorded a total charge to interest expense of $1.4 million related to the repayment of its previous credit facility including a loss on extinguishment of debt of $0.6 million in the second quarter of 2014. | |||||||||
In October 2014, the Company borrowed an additional $10.0 million under the term loan agreement. The Company may borrow up to an additional $15.0 million under the agreement no later than May 2015, subject to a revenue requirement. All borrowings under the term loan agreement accrue interest at 12.5% annually, payable quarterly, of which 3.5% can be deferred during the first four years of the term at the Company’s option and paid together with the principal. During 2014, the Company exercised its option to defer payment of the 3.5% accrued interest and is required to pay only interest for the first five years of the term. Principal payments are due in four equal installments during the sixth year of the term. The Company has the option to prepay the term loans, in whole or in part, at any time subject to payment of a redemption fee of up to 4%, which declines over the term. The term loan agreement contains customary conditions to borrowings, events of default and negative covenants, including covenants that could limit the Company’s ability to, among other things, incur additional indebtedness, liens or other encumbrances, make dividends or other distributions; buy, sell or transfer assets; engage in any new line of business; and enter into certain transactions with affiliates. The term loan agreement also includes liquidity and revenue-based financial covenants. The Company must satisfy certain minimum annual revenue requirements, specifically $55.0 million for 2015 with annual increases of $15.0 million for each fiscal year thereafter. If the Company’s actual revenues are below the minimum annual revenue requirement for any given year, the Company may avoid a related default by generating proceeds from an equity or subordinated debt issuance equal to the shortfall between its actual revenues and the minimum revenue requirement. The Company was in compliance with its covenants as of March 31, 2015. The Company’s obligations under the term loan agreement are collateralized by substantially all of its assets. | |||||||||
Borrowings, including current portion, consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Term loans payable | $ | 30,687 | $ | 30,420 | |||||
Capital leases | 487 | 506 | |||||||
31,174 | 30,926 | ||||||||
Less: Current portion | (271 | ) | (251 | ) | |||||
Non-current portion | $ | 30,903 | $ | 30,675 | |||||
Scheduled future principal payments under outstanding debt obligations were as follows at March 31, 2015 (in thousands): | |||||||||
2015 | $ | 203 | |||||||
2016 | 226 | ||||||||
2017 | 58 | ||||||||
2018 | — | ||||||||
2019 | 23,015 | ||||||||
Thereafter | 7,672 | ||||||||
$ | 31,174 | ||||||||
Collaboration_Agreement
Collaboration Agreement | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaboration Agreement | 10. Collaboration Agreement |
In March 2014, the Company entered into a collaboration agreement with Celgene Corporation (“Celgene”) to develop, seek regulatory approval for, and commercialize a companion diagnostic assay for use in screening patients with Diffuse Large B-Cell Lymphoma. The Company received an upfront payment of $5.8 million upon its delivery of certain information to Celgene, and is eligible to receive up to $17.0 million in success-based milestone payments related to development and regulatory milestones. The Company will retain all commercial rights to the diagnostic test developed under this collaboration, subject to certain backup rights granted to Celgene to commercialize the diagnostic test in a particular country if the Company elects to cease distribution or elect not to distribute the diagnostic in such country. Assuming success in the clinical trial process, and subject to regulatory approval, the Company will market and sell the diagnostic assay and Celgene has agreed to make certain potential commercial payments to the Company in the event sales of the assay do not exceed certain pre-specified minimum annual revenues during the first three years following regulatory approval. | |
The Company achieved and was paid for milestones totaling $6.0 million during 2014. The process of successfully developing a product candidate, obtaining regulatory approval and ultimately commercializing a product candidate is highly uncertain and the attainment of any additional milestones is therefore uncertain and difficult to predict. In addition, certain milestones are outside the Company’s control and are dependent on the performance of Celgene and the outcome of a clinical trial and related regulatory processes. Accordingly, the Company is not able to reasonably estimate when, if at all, any additional milestone payments may be payable to the Company by Celgene. | |
The Company uses a proportional performance model to recognize revenue over the Company’s performance period for the related agreement. Costs incurred to date compared to total expected costs are used to determine proportional performance, as this is considered to be representative of the delivery of outputs under the arrangement. Revenue recognized at any point in time is limited to cash received and amounts contractually due. Changes in estimates of total expected costs are accounted for prospectively as a change in estimate. All amounts received or due are classified as collaboration revenue as they are earned. | |
For the three months ended March 31, 2015, the Company recognized collaboration revenue related to the Celgene agreement of $0.7 million. No such amount was recorded for the three months ended March 31, 2014. At March 31, 2015, the Company had recorded $8.1 million of deferred revenue related to the collaboration, of which $2.0 million is estimated to be recognized as revenue within one year. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Mar. 31, 2015 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | 11 | Commitments and Contingencies |
From time to time, the Company may become involved in litigation relating to claims arising from the ordinary course of business. Management believes that there are no claims or actions pending against the Company currently, the ultimate disposition of which would have a material adverse effect on the Company’s consolidated results of operation, financial condition or cash flows. |
Information_about_Geographic_A
Information about Geographic Areas | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Information about Geographic Areas | 12 | Information about Geographic Areas | |||||||
The Company operates as a single reportable segment and primarily enables customers to perform both research and clinical testing on its nCounter Analysis System. The Company has one sales force that sells these systems to both research and clinical testing labs, and has launched its first product, nCounter Elements reagents, that can be used for both research and diagnostic testing. In addition, the Company’s Prosigna Breast Cancer Assay is marketed to clinical laboratories. The Company has also entered into a companion diagnostic collaboration with Celgene. | |||||||||
The following table of total revenue is based on the geographic location of the Company’s customers, distributors and collaborators. For sales to distributors, their geographic location may be different from the geographic locations of the ultimate end user. Total revenue by geography was as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
North America | $ | 7,523 | $ | 5,989 | |||||
Europe, Middle East & Africa | 2,943 | 1,763 | |||||||
Asia Pacific | 1,127 | 999 | |||||||
Total revenue | $ | 11,593 | $ | 8,751 | |||||
Total revenue in the United States was $7.2 million and $5.3 million for the three month periods ended March 31, 2015 and 2014, respectively. | |||||||||
The Company’s assets are primarily located in the United States and not allocated to any specific geographic region. Substantially all of the Company’s long-lived assets are located in the United States. |
Subsequent_Events
Subsequent Events | 3 Months Ended | |
Mar. 31, 2015 | ||
Subsequent Events [Abstract] | ||
Subsequent Events | 13 | Subsequent Events |
On April 16, 2015, the Company was granted an extension of six months, to November 2015, under its term loan agreement, to borrow an additional $15.0 million available under the term loan agreement. |
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Basis of Presentation | Basis of Presentation | ||||||||||||||||
The accompanying unaudited condensed consolidated financial statements reflect the accounts of the Company and its wholly-owned subsidiaries. The unaudited condensed consolidated 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 disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for annual financial statements. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP for unaudited condensed consolidated financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and results of its operations, as of and for the periods presented. | |||||||||||||||||
Unless indicated otherwise, all amounts presented in financial tables are presented in thousands, except for per share and par value amounts. | |||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The results of the Company’s operations for the three month period ended March 31, 2015 are not necessarily indicative of the results to be expected for the full year or for any other period. | |||||||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||||||
The Company recognizes revenue when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the price to the customer is fixed or determinable and (4) collectability is reasonably assured. The Company generates the majority of its revenue from the sale of products and services. The Company’s products consist of its proprietary nCounter Analysis System and related consumables. Services consist of extended warranties and service fees for assay processing. A delivered product or service is considered to be a separate unit of accounting when it has value to the customer on a stand-alone basis. Products or services have value on a stand-alone basis if they are sold separately by any vendor or the customer could resell the delivered product. | |||||||||||||||||
Instruments, consumables and in vitro diagnostic kits are considered to be separate units of accounting as they are sold separately and revenue is recognized upon transfer of ownership, which is generally upon shipment. Instrument revenue related to installation and calibration services is recognized when services are rendered by the Company. Such services can also be provided by the Company’s distribution partners and other third parties. For instruments sold for use primarily to run Prosigna assays, training must be provided prior to instrument revenue recognition. Instrument revenue from leased instruments is recognized ratably over the lease term. | |||||||||||||||||
Service revenue is recognized when earned, which is generally upon the rendering of the related services. Service agreements and service fees for assay processing are each considered separate units of accounting as they are sold separately. The Company offers service agreements on its nCounter Analysis System for periods ranging from 12 to 36 months after the end of the standard 12-month warranty period. Service agreements are generally separately priced. Revenue from service agreements is deferred and recognized in income on a straight-line basis over the service period. | |||||||||||||||||
For arrangements with multiple deliverables, the Company allocates the agreement consideration at the inception of the agreement to the deliverables based upon their relative selling prices. To date, selling prices have been established by reference to vendor specific objective evidence based on stand-alone sales transactions for each deliverable. Vendor specific objective evidence is considered to have been established when a substantial majority of individual sales transactions within the previous 12 month period fall within a reasonably narrow range, which the Company has defined to be plus or minus 15% of the median sales price of actual stand-alone sales transactions. The Company uses its best estimate of selling price for individual deliverables when vendor specific objective evidence or third-party evidence is unavailable. Allocated revenue is only recognized for each deliverable when the revenue recognition criteria have been met. | |||||||||||||||||
The Company enters into collaborative agreements that may generate upfront fees with subsequent milestone payments that may be earned upon completion of development-related milestones. The Company is able to estimate the total cost of services under the arrangements and recognizes collaboration revenue using a proportional performance model. Costs incurred to date compared to total expected costs are used to determine proportional performance, as this is considered to be representative of the delivery of outputs under the arrangements. Revenue recognized at any point in time is limited to cash received and amounts contractually due. Changes in estimates of total expected costs are accounted for prospectively as a change in estimate. From period to period, collaboration revenue can fluctuate substantially based on the achievement of development-related milestones. | |||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||||||
As an “emerging growth company,” the Jumpstart Our Business Startups Act allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. | |||||||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update entitled “ASU 2014-09, Revenue from Contracts with Customers.” The standard requires entities to recognize revenue through the application of a five step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue as the entity satisfies the performance obligations. The standard will become effective for the Company beginning January 1, 2018. The Company is currently evaluating the guidance to determine the potential impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. | |||||||||||||||||
In June 2014, FASB issued an accounting standards update entitled “ASU 2014-12, Compensation – Stock Compensation.” The standard requires entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The standard will become effective for the Company beginning January 1, 2016. The Company is currently evaluating the guidance to determine the potential impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. | |||||||||||||||||
In August 2014, FASB issued an accounting standards update entitled “ASU 2014-15, Presentation of Financial Statements – Going Concern.” The standard requires entities to evaluate for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). The standard will become effective for the Company beginning January 1, 2017. | |||||||||||||||||
In February 2015, FASB issued an accounting standards update entitled “ASU 2015-02, Amendments to the Consolidation Analysis.” The standard requires entities to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The standard will become effective for the Company beginning after December 15, 2017. The Company is currently evaluating the guidance to determine the potential impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. | |||||||||||||||||
On April 7, 2015, FASB issued an accounting standards update entitled “ASU 2015-03, Interest- Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs.” The standard requires entities to present debt issuance costs on the balance sheets as a direct deduction from the related debt liability rather than as an asset, and the amortization is reported as interest expense. The standard will become effective for the Company beginning after December 15, 2015. The Company is currently evaluating the guidance to determine the potential impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. | |||||||||||||||||
Net Loss Per Share | Net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Any outstanding stock options and warrants have not been included in the calculation of the diluted net loss per share because to do so would be anti-dilutive. Accordingly, the numerator and the denominator used in computing both basic and diluted net loss per share for each period are the same. | ||||||||||||||||
Fair Value Measurements | The Company establishes the fair value of its assets and liabilities using the price that would be received to sell an asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is used to measure fair value. The three levels of the fair value hierarchy are as follows: | ||||||||||||||||
Level 1: | Quoted prices in active markets for identical assets and liabilities. | ||||||||||||||||
Level 2: | Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. | ||||||||||||||||
Level 3: | Valuations derived from valuation techniques in which one or more significant inputs and significant value drivers are unobservable. | ||||||||||||||||
The recorded amounts of certain financial instruments, including cash, accounts receivable, prepaid expenses and other, accounts payable and accrued liabilities, approximate fair value due to their relatively short-term maturities. The recorded amount of the Company’s long-term debt approximates fair value because the related interest rates approximate rates currently available to the Company. | |||||||||||||||||
The Company’s available-for-sale securities by level within the fair value hierarchy were as follows (in thousands): | |||||||||||||||||
As of March 31, 2015 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market fund | $ | 12,722 | $ | — | $ | — | $ | 12,722 | |||||||||
Short-term investments: | |||||||||||||||||
Corporate debt securities | — | 38,742 | — | 38,742 | |||||||||||||
Asset-backed securities | — | 2,418 | — | 2,418 | |||||||||||||
Total | $ | 12,722 | $ | 41,160 | $ | — | $ | 53,882 | |||||||||
As of December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market fund | $ | 13,426 | $ | — | $ | — | $ | 13,426 | |||||||||
Short-term investments: | |||||||||||||||||
U.S. government-related debt securities | — | 4,498 | — | 4,498 | |||||||||||||
Corporate debt securities | — | 47,307 | — | 47,307 | |||||||||||||
Asset-backed securities | — | 3,197 | — | 3,197 | |||||||||||||
Total | $ | 13,426 | $ | 55,002 | $ | — | $ | 68,428 | |||||||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Outstanding Options and Warrants were Excluded from Computation of Basic and Diluted Net Loss Per Share | The following outstanding options and warrants were excluded from the computation of basic and diluted net loss per share for the periods presented because their effect would have been anti-dilutive (in thousands): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Options to purchase common stock | 3,980 | 3,169 | |||||||
Common stock warrants | 572 | 618 |
Shortterm_Investments_Tables
Short-term Investments (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Short-Term Investments Available-for-Sale Securities | Short-term investments consisted of available-for-sale securities as follows (in thousands): | ||||||||||||||||||||||||
Type of security as of March 31, 2015 | Amortized | Gross | Gross | Fair value | |||||||||||||||||||||
cost | unrealized | unrealized | |||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||
Corporate debt securities | $ | 38,759 | $ | 1 | $ | (18 | ) | $ | 38,742 | ||||||||||||||||
Asset-backed securities | 2,419 | — | (1 | ) | 2,418 | ||||||||||||||||||||
Total available-for-sale securities | $ | 41,178 | $ | 1 | $ | (19 | ) | $ | 41,160 | ||||||||||||||||
Type of security as of December 31, 2014 | Amortized | Gross | Gross | Fair value | |||||||||||||||||||||
cost | unrealized | unrealized | |||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||
U.S. government-related debt securities | $ | 4,502 | $ | — | $ | (4 | ) | $ | 4,498 | ||||||||||||||||
Corporate debt securities | 47,345 | 2 | (40 | ) | 47,307 | ||||||||||||||||||||
Asset-backed securities | 3,198 | — | (1 | ) | 3,197 | ||||||||||||||||||||
Total available-for-sale securities | $ | 55,045 | $ | 2 | $ | (45 | ) | $ | 55,002 | ||||||||||||||||
Fair Values of Available-for-Sale Securities by Contractual Maturity | The fair values of available-for-sale securities by contractual maturity were as follows (in thousands): | ||||||||||||||||||||||||
Contractual maturity | March 31, | December 31, | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Maturing in one year or less | $ | 38,612 | $ | 51,235 | |||||||||||||||||||||
Maturing in one to three years | 2,548 | 3,767 | |||||||||||||||||||||||
Total available-for-sale securities | $ | 41,160 | $ | 55,002 | |||||||||||||||||||||
Summary of Investments in Continuous Unrealized Loss Position for Less Than 12 Months | The following table summarizes investments that have been in a continuous unrealized loss position for less than 12 months and a continuous unrealized loss position for more than 12 months as of March 31, 2015 (in thousands): | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
value | unrealized | value | unrealized | value | unrealized | ||||||||||||||||||||
losses | losses | losses | |||||||||||||||||||||||
Corporate debt securities | $ | 28,340 | $ | (17 | ) | $ | 1,999 | $ | (1 | ) | $ | 30,339 | $ | (18 | ) | ||||||||||
Asset-backed securities | 2,418 | (1 | ) | — | — | 2,418 | (1 | ) | |||||||||||||||||
Total | $ | 30,758 | $ | (18 | ) | $ | 1,999 | $ | (1 | ) | $ | 32,757 | $ | (19 | ) | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Company's Available-for-Sale Securities by Level within Fair Value Hierarchy | The Company’s available-for-sale securities by level within the fair value hierarchy were as follows (in thousands): | ||||||||||||||||
As of March 31, 2015 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market fund | $ | 12,722 | $ | — | $ | — | $ | 12,722 | |||||||||
Short-term investments: | |||||||||||||||||
Corporate debt securities | — | 38,742 | — | 38,742 | |||||||||||||
Asset-backed securities | — | 2,418 | — | 2,418 | |||||||||||||
Total | $ | 12,722 | $ | 41,160 | $ | — | $ | 53,882 | |||||||||
As of December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market fund | $ | 13,426 | $ | — | $ | — | $ | 13,426 | |||||||||
Short-term investments: | |||||||||||||||||
U.S. government-related debt securities | — | 4,498 | — | 4,498 | |||||||||||||
Corporate debt securities | — | 47,307 | — | 47,307 | |||||||||||||
Asset-backed securities | — | 3,197 | — | 3,197 | |||||||||||||
Total | $ | 13,426 | $ | 55,002 | $ | — | $ | 68,428 | |||||||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventory | Inventory consisted of the following as of the date indicated (in thousands): | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 2,260 | $ | 1,299 | |||||
Work in process | 2,509 | 2,157 | |||||||
Finished goods | 3,118 | 1,988 | |||||||
$ | 7,887 | $ | 5,444 | ||||||
Reserve_for_Product_Warranties1
Reserve for Product Warranties (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Guarantees [Abstract] | |||||
Schedule of Changes in Company's Warranty Reserve and Related Costs | The following information reconciles changes in the Company’s warranty reserve and related costs (in thousands): | ||||
Warranty reserve, December 31, 2014 | $ | 503 | |||
Cost of warranty claims | (90 | ) | |||
Warranty accrual | 60 | ||||
Warranty reserve, March 31, 2015 | $ | 473 | |||
Longterm_Debt_and_Obligations_
Long-term Debt and Obligations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Components of Borrowings, Including Current Portion | Borrowings, including current portion, consisted of the following (in thousands): | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Term loans payable | $ | 30,687 | $ | 30,420 | |||||
Capital leases | 487 | 506 | |||||||
31,174 | 30,926 | ||||||||
Less: Current portion | (271 | ) | (251 | ) | |||||
Non-current portion | $ | 30,903 | $ | 30,675 | |||||
Scheduled Future Principal Payments under Outstanding Debt Obligations | Scheduled future principal payments under outstanding debt obligations were as follows at March 31, 2015 (in thousands): | ||||||||
2015 | $ | 203 | |||||||
2016 | 226 | ||||||||
2017 | 58 | ||||||||
2018 | — | ||||||||
2019 | 23,015 | ||||||||
Thereafter | 7,672 | ||||||||
$ | 31,174 | ||||||||
Information_about_Geographic_A1
Information about Geographic Areas (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Classification of Revenue by Geography | The following table of total revenue is based on the geographic location of the Company’s customers, distributors and collaborators. For sales to distributors, their geographic location may be different from the geographic locations of the ultimate end user. Total revenue by geography was as follows (in thousands): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
North America | $ | 7,523 | $ | 5,989 | |||||
Europe, Middle East & Africa | 2,943 | 1,763 | |||||||
Asia Pacific | 1,127 | 999 | |||||||
Total revenue | $ | 11,593 | $ | 8,751 | |||||
Description_of_Business_Additi
Description of Business - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Place of incorporation | Delaware |
Date of incorporation | 20-Jun-03 |
Basis_of_Presentation_and_Summ2
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Significant Accounting Policies [Line Items] | |
Extended warranties description | The Company offers service agreements on its nCounter Analysis System for periods ranging from 12 to 36 months after the end of the standard 12-month warranty period. |
Standard warranty period | 12 months |
Percentage used to determine discount for stand-alone sales | 15.00% |
Minimum [Member] | |
Significant Accounting Policies [Line Items] | |
Extended warranty period | 12 months |
Maximum [Member] | |
Significant Accounting Policies [Line Items] | |
Extended warranty period | 36 months |
Net_Loss_Per_Share_Outstanding
Net Loss Per Share - Outstanding Options and Warrants were Excluded from Computation of Basic and Diluted Net Loss Per Share (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Options to purchase common stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share | 3,980 | 3,169 |
Warrants [Member] | Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share | 572 | 618 |
Concentration_of_Risks_Additio
Concentration of Risks - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Customer | Customer | Customer | |
Customer Concentration Risk [Member] | Total revenue [Member] | |||
Concentration Risk [Line Items] | |||
Number of customer that individually represented more than 10% of total revenue and accounts receivable | 0 | 1 | |
Customer Concentration Risk [Member] | Total revenue [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% | |
Credit Concentration Risk [Member] | Total accounts receivable [Member] | |||
Concentration Risk [Line Items] | |||
Number of customer that individually represented more than 10% of total revenue and accounts receivable | 1 | 1 | |
Credit Concentration Risk [Member] | Total accounts receivable [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% |
ShortTerm_Investments_ShortTer
Short-Term Investments - Short-Term Investments Available-for-Sale Securities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $41,178 | $55,045 |
Gross unrealized gains | 1 | 2 |
Gross unrealized losses | -19 | -45 |
Fair value | 41,160 | 55,002 |
U.S. government-related debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 4,502 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | -4 | |
Fair value | 4,498 | |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 38,759 | 47,345 |
Gross unrealized gains | 1 | 2 |
Gross unrealized losses | -18 | -40 |
Fair value | 38,742 | 47,307 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 2,419 | 3,198 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | -1 | -1 |
Fair value | $2,418 | $3,197 |
ShortTerm_Investments_Fair_Val
Short-Term Investments - Fair Values of Available-for-Sale Securities by Contractual Maturity (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Maturing in one year or less | $38,612 | $51,235 |
Maturing in one to three years | 2,548 | 3,767 |
Total available-for-sale securities | $41,160 | $55,002 |
Shortterm_Investments_Summary_
Short-term Investments - Summary of Investments in Continuous Unrealized Loss Position for Less Than 12 Months (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
Less Than 12 Months, Fair value | $30,758 |
Less Than 12 Months, Gross unrealized losses | -18 |
12 Months or Greater, Fair value | 1,999 |
12 Months or Greater, Gross unrealized losses | -1 |
Total, Fair value | 32,757 |
Total, Gross unrealized losses | -19 |
Corporate debt securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less Than 12 Months, Fair value | 28,340 |
Less Than 12 Months, Gross unrealized losses | -17 |
12 Months or Greater, Fair value | 1,999 |
12 Months or Greater, Gross unrealized losses | -1 |
Total, Fair value | 30,339 |
Total, Gross unrealized losses | -18 |
Asset-backed securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less Than 12 Months, Fair value | 2,418 |
Less Than 12 Months, Gross unrealized losses | -1 |
12 Months or Greater, Fair value | 0 |
12 Months or Greater, Gross unrealized losses | 0 |
Total, Fair value | 2,418 |
Total, Gross unrealized losses | ($1) |
Shortterm_Investments_Addition
Short-term Investments - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments that were other-than-temporarily impaired | $0 |
Fair_Value_Measurements_Compan
Fair Value Measurements - Company's Available-for-Sale Securities by Level within Fair Value Hierarchy (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $41,160 | $55,002 |
Total | 53,882 | 68,428 |
Money market fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 12,722 | 13,426 |
U.S. government-related debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 4,498 | |
Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 38,742 | 47,307 |
Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 2,418 | 3,197 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 12,722 | 13,426 |
Level 1 [Member] | Money market fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 12,722 | 13,426 |
Level 1 [Member] | U.S. government-related debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Level 1 [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 1 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 41,160 | 55,002 |
Level 2 [Member] | Money market fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 2 [Member] | U.S. government-related debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 4,498 | |
Level 2 [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 38,742 | 47,307 |
Level 2 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 2,418 | 3,197 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 3 [Member] | Money market fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 3 [Member] | U.S. government-related debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Level 3 [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 3 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $0 | $0 |
Inventory_Schedule_of_Inventor
Inventory - Schedule of Inventory (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $2,260 | $1,299 |
Work in process | 2,509 | 2,157 |
Finished goods | 3,118 | 1,988 |
Inventory, net | $7,887 | $5,444 |
Reserve_for_Product_Warranties2
Reserve for Product Warranties - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |
Product warranty accrual period | 1 year |
Reserve_for_Product_Warranties3
Reserve for Product Warranties - Schedule of Changes in Company's Warranty Reserve and Related Costs (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Product Warranties Disclosures [Abstract] | |
Warranty reserve, Beginning balance | $503 |
Cost of warranty claims | -90 |
Warranty accrual | 60 |
Warranty reserve, Ending balance | $473 |
Longterm_Debt_and_Obligations_1
Long-term Debt and Obligations - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2014 | Mar. 31, 2015 | Apr. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | |||||
Percentage of redemption fee | 4.00% | ||||
Principal and interest payment frequency | The Company exercised its option to defer payment of the 3.5% accrued interest and is required to pay only interest for the first five years of the term. Principal payments are due in four equal installments during the sixth year of the term. | ||||
Annual revenue requirements | $55,000,000 | ||||
Increase in annual revenue in fiscal years | 15,000,000 | ||||
Annual revenue recognize description | The term loan agreement also includes liquidity and revenue-based financial covenants. The Company must satisfy certain minimum annual revenue requirements, specifically $55.0 million for 2015 with annual increases of $15.0 million for each fiscal year thereafter. | ||||
Term Loan Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility, borrowing capacity | 45,000,000 | ||||
Credit facility, borrowing capacity | 51,000,000 | ||||
Credit facility, Outstanding | 20,000,000 | ||||
End of term payment | 1,000,000 | ||||
Amount of make-whole premium payment | 300,000 | ||||
Total incurred and recorded repayment | 1,400,000 | ||||
Percentage of accrue interest | 12.50% | ||||
Percentage of deferred payment | 3.50% | 3.50% | |||
End of deferred payment term | First four years term | ||||
Loss on extinguishment of debt | 600,000 | ||||
Credit facility, additional borrowing capacity | 15,000,000 | ||||
Term Loan Facility [Member] | October 2014 [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility, additional borrowing capacity | $10,000,000 |
Longterm_Debt_and_Obligations_2
Long-term Debt and Obligations - Components of Borrowings, Including Current Portion (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Term loans payable | $30,687 | $30,420 |
Capital leases | 487 | 506 |
Long-term debt | 31,174 | 30,926 |
Less: Current portion | -271 | -251 |
Non-current portion | 30,903 | 30,675 |
Long-term debt | $31,174 | $30,926 |
Longterm_Debt_and_Obligations_3
Long-term Debt and Obligations - Scheduled Future Principal Payments under Outstanding Debt Obligations (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 | $203 | |
2016 | 226 | |
2017 | 58 | |
2018 | 0 | |
2019 | 23,015 | |
Thereafter | 7,672 | |
Long-term debt | $31,174 | $30,926 |
Collaboration_Agreement_Additi
Collaboration Agreement - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||
Oct. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Maximum success-based milestone payments | $55,000,000 | ||||
Amount of certain milestones achieved in account receivable | 10,465,000 | 12,436,000 | |||
Revenue recognized under collaboration agreement | 761,000 | 0 | |||
Collaborative Arrangement [Member] | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Amount of certain milestones achieved in account receivable | 6,000,000 | ||||
Revenue recognized under collaboration agreement | 700,000 | 0 | |||
Deferred revenue recorded under collaboration agreement | 8,100,000 | ||||
Upfront Payment Arrangement [Member] | Collaborative Arrangement [Member] | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Collaboration agreement upfront payment | 5,800,000 | ||||
Scenario, Forecast [Member] | Collaborative Arrangement [Member] | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Revenue recognized under collaboration agreement | 2,000,000 | ||||
Maximum [Member] | Scenario, Forecast [Member] | Collaborative Arrangement [Member] | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Maximum success-based milestone payments | $17,000,000 |
Information_about_Geographic_A2
Information about Geographic Areas - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of reportable segment | 1 | |
Total revenue | $11,593 | $8,751 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $7,200 | $5,300 |
Information_about_Geographic_A3
Information about Geographic Areas - Classification of Revenue by Geography (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $11,593 | $8,751 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 7,523 | 5,989 |
Europe, Middle East & Africa [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 2,943 | 1,763 |
Asia Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $1,127 | $999 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Term Loan Facility [Member], USD $) | 3 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Apr. 16, 2015 | Oct. 31, 2014 |
Subsequent Event [Line Items] | |||
Credit facility, additional borrowing capacity | $15 | ||
Credit facility, maturity date | 2015-11 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Credit facility, additional borrowing capacity | $15 | ||
Credit facility, expiration period | 6 months |