Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36189 | |
Entity Registrant Name | Tandem Diabetes Care, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-4327508 | |
Entity Address, Address Line One | 11075 Roselle Street | |
Entity Address, Postal Zip Code | 92121 | |
Entity Address, City or Town | San Diego, | |
Entity Address, State or Province | CA | |
City Area Code | 858 | |
Local Phone Number | 366-6900 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | TNDM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 62,194,609 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001438133 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 129,481 | $ 51,175 |
Short-term investments | 335,041 | 125,283 |
Accounts receivable, net | 52,104 | 46,585 |
Inventories | 70,644 | 49,073 |
Prepaid and other current assets | 5,023 | 4,025 |
Total current assets | 592,293 | 276,141 |
Property and equipment, net | 49,320 | 32,923 |
Operating lease right-of-use assets | 21,325 | 15,561 |
Other long-term assets | 10,050 | 1,485 |
Total assets | 672,988 | 326,110 |
Current liabilities: | ||
Accounts payable | 20,499 | 17,745 |
Accrued expenses | 6,349 | 8,014 |
Employee-related liabilities | 30,526 | 28,320 |
Deferred revenue | 5,210 | 3,869 |
Common stock warrants | 17,404 | 23,509 |
Operating lease liabilities | 9,365 | 6,320 |
Other current liabilities | 16,153 | 11,619 |
Total current liabilities | 105,506 | 99,396 |
Convertible senior notes, net - long-term | 199,120 | 0 |
Operating lease liabilities - long-term | 17,893 | 14,063 |
Other long-term liabilities | 23,925 | 17,672 |
Total liabilities | 346,444 | 131,131 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 200,000 shares authorized, 62,116 and 59,396 shares issued and outstanding at September 30, 2020 (unaudited) and December 31, 2019, respectively. | 62 | 59 |
Additional paid-in capital | 1,002,502 | 819,626 |
Accumulated other comprehensive income | 190 | 122 |
Accumulated deficit | (676,210) | (624,828) |
Total stockholders’ equity | 326,544 | 194,979 |
Total liabilities and stockholders’ equity | $ 672,988 | $ 326,110 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 62,116,000 | 59,396,000 |
Common stock, shares outstanding (in shares) | 62,116,000 | 59,396,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Sales | $ 123,603 | $ 94,657 | $ 330,765 | $ 253,907 |
Cost of sales | 58,290 | 43,974 | 160,801 | 119,967 |
Gross profit | 65,313 | 50,683 | 169,964 | 133,940 |
Operating expenses: | ||||
Selling, general and administrative | 50,228 | 44,649 | 150,385 | 120,173 |
Research and development | 16,094 | 12,038 | 46,198 | 32,632 |
Total operating expenses | 66,322 | 56,687 | 196,583 | 152,805 |
Operating loss | (1,009) | (6,004) | (26,619) | (18,865) |
Other income (expense), net: | ||||
Interest income and other, net | 143 | 854 | 1,235 | 2,381 |
Interest expense | (4,855) | 0 | (8,030) | 0 |
Change in fair value of common stock warrants | (3,648) | 2,321 | (19,906) | (10,849) |
Total other income (expense), net | (8,360) | 3,175 | (26,701) | (8,468) |
Loss before income taxes | (9,369) | (2,829) | (53,320) | (27,333) |
Income tax expense (benefit) | 39 | 72 | (1,938) | 72 |
Net loss | (9,408) | (2,901) | (51,382) | (27,405) |
Other comprehensive loss: | ||||
Unrealized gain (loss) on short-term investments | (69) | (60) | 78 | 91 |
Foreign currency translation gain (loss) | 216 | (11) | (10) | 13 |
Comprehensive loss | $ (9,261) | $ (2,972) | $ (51,314) | $ (27,301) |
Net loss per share, basic (usd per share) | $ (0.15) | $ (0.05) | $ (0.85) | $ (0.47) |
Net loss per share, diluted (usd per share) | $ (0.15) | $ (0.09) | $ (0.85) | $ (0.47) |
Weighted average shares used to compute basic net loss per share (in shares) | 61,529 | 58,801 | 60,568 | 58,268 |
Weighted average shares used to compute diluted net loss per share (in shares) | 61,529 | 59,196 | 60,568 | 58,268 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2018 | 57,554 | ||||
Beginning balance at Dec. 31, 2018 | $ 131,275 | $ 57 | $ 731,306 | $ (13) | $ (600,075) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 1,214 | ||||
Exercise of stock options | 14,512 | $ 2 | 14,510 | ||
Issuance of common stock for Employee Stock Purchase Plan (in shares) | 168 | ||||
Issuance of common stock for Employee Stock Purchase Plan | 2,951 | 2,951 | |||
Exercise of common stock warrants (in shares) | 93 | ||||
Exercise of common stock warrants | 326 | 326 | |||
Fair value of common stock warrants at time of exercise | 5,492 | 5,492 | |||
Stock-based compensation | 39,739 | 39,739 | |||
Unrealized gain (loss) on short-term investments | 91 | 91 | |||
Foreign currency translation adjustments | 13 | 13 | |||
Net loss | (27,405) | (27,405) | |||
Ending balance (in shares) at Sep. 30, 2019 | 59,029 | ||||
Ending balance at Sep. 30, 2019 | 166,994 | $ 59 | 794,324 | 91 | (627,480) |
Beginning balance (in shares) at Jun. 30, 2019 | 58,589 | ||||
Beginning balance at Jun. 30, 2019 | 145,345 | $ 58 | 769,704 | 162 | (624,579) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 440 | ||||
Exercise of stock options | 7,034 | $ 1 | 7,033 | ||
Fair value of common stock warrants at time of exercise | 13 | 13 | |||
Stock-based compensation | 17,574 | 17,574 | |||
Unrealized gain (loss) on short-term investments | (60) | (60) | |||
Foreign currency translation adjustments | (11) | (11) | |||
Net loss | (2,901) | (2,901) | |||
Ending balance (in shares) at Sep. 30, 2019 | 59,029 | ||||
Ending balance at Sep. 30, 2019 | 166,994 | $ 59 | 794,324 | 91 | (627,480) |
Beginning balance (in shares) at Dec. 31, 2019 | 59,396 | ||||
Beginning balance at Dec. 31, 2019 | 194,979 | $ 59 | 819,626 | 122 | (624,828) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 2,199 | ||||
Exercise of stock options | 52,762 | $ 3 | 52,759 | ||
Issuance of common stock for Employee Stock Purchase Plan (in shares) | 229 | ||||
Issuance of common stock for Employee Stock Purchase Plan | 4,916 | 4,916 | |||
Exercise of common stock warrants (in shares) | 292 | ||||
Exercise of common stock warrants | 2,935 | 2,935 | |||
Fair value of common stock warrants at time of exercise | 26,011 | 26,011 | |||
Equity component of convertible note issuance, net of issuance cost | 85,803 | 85,803 | |||
Purchase of capped call options related to convertible notes | (34,069) | (34,069) | |||
Stock-based compensation | 44,521 | 44,521 | |||
Unrealized gain (loss) on short-term investments | 78 | 78 | |||
Foreign currency translation adjustments | (10) | (10) | |||
Net loss | (51,382) | (51,382) | |||
Ending balance (in shares) at Sep. 30, 2020 | 62,116 | ||||
Ending balance at Sep. 30, 2020 | 326,544 | $ 62 | 1,002,502 | 190 | (676,210) |
Beginning balance (in shares) at Jun. 30, 2020 | 60,787 | ||||
Beginning balance at Jun. 30, 2020 | 267,704 | $ 61 | 934,402 | 43 | (666,802) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 1,072 | ||||
Exercise of stock options | 29,031 | $ 1 | 29,030 | ||
Exercise of common stock warrants (in shares) | 257 | ||||
Exercise of common stock warrants | 899 | 899 | |||
Fair value of common stock warrants at time of exercise | 25,870 | 25,870 | |||
Stock-based compensation | 12,301 | 12,301 | |||
Unrealized gain (loss) on short-term investments | (69) | (69) | |||
Foreign currency translation adjustments | 216 | 216 | |||
Net loss | (9,408) | (9,408) | |||
Ending balance (in shares) at Sep. 30, 2020 | 62,116 | ||||
Ending balance at Sep. 30, 2020 | $ 326,544 | $ 62 | $ 1,002,502 | $ 190 | $ (676,210) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Activities | ||
Net loss | $ (51,382) | $ (27,405) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization expense | 7,024 | 4,430 |
Amortization of debt discount and debt issuance costs | 6,233 | 0 |
Provision for expected credit losses | 2,181 | 1,468 |
Provision (recovery) for inventory obsolescence | (109) | 1,508 |
Change in fair value of common stock warrants | 19,906 | 10,849 |
Amortization of discount on short-term investments | (1,446) | (302) |
Benefit for deferred income taxes | (2,126) | 0 |
Stock-based compensation expense | 45,123 | 39,386 |
Other | 37 | 42 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (7,820) | (11,588) |
Inventories | (22,052) | (21,990) |
Prepaid and other current assets | (1,082) | (17) |
Other long-term assets | 33 | (387) |
Accounts payable | 3,268 | 7,131 |
Accrued expenses | (1,679) | 4,045 |
Employee-related liabilities | 1,704 | 4,173 |
Deferred revenue | 4,215 | 3,587 |
Other current liabilities | 5,023 | 2,335 |
Other long-term liabilities | 2,381 | 5,198 |
Net cash provided by operating activities | 9,432 | 22,463 |
Investing Activities | ||
Purchases of short-term investments | (331,968) | (126,307) |
Proceeds from maturities of short-term investments | 82,709 | 96,495 |
Proceeds from sales of short-term investments | 41,027 | 6,550 |
Purchases of property and equipment | (23,312) | (12,792) |
Acquisition of intangible assets | (4,886) | 0 |
Net cash used in investing activities | (236,430) | (36,054) |
Financing Activities | ||
Proceeds from issuance of convertible senior notes, net of $8,809 debt issuance costs | 278,691 | 0 |
Purchase of capped call options related to convertible senior notes | (34,069) | 0 |
Proceeds from issuance of common stock under Company stock plans | 57,677 | 327 |
Proceeds from exercise of common stock warrants | 2,935 | 17,462 |
Net cash provided by financing activities | 305,234 | 17,789 |
Effect of foreign exchange rate changes on cash | 70 | 36 |
Net increase in cash and cash equivalents | 78,306 | 4,234 |
Cash and cash equivalents at beginning of period | 51,175 | 41,826 |
Cash and cash equivalents at end of period | 129,481 | 46,060 |
Supplemental disclosures of cash flow information | ||
Income taxes paid | 192 | 67 |
Supplemental schedule of non-cash investing and financing activities | ||
Right-of-use assets obtained in exchange for operating lease obligations | 11,022 | 11,445 |
Property and equipment included in accounts payable | 1,618 | 2,484 |
Intangible costs in accounts payable and other long-term liabilities | $ 2,348 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | Sep. 30, 2020USD ($) |
Statement of Cash Flows [Abstract] | |
Debt issuance costs, net | $ 8,809 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation The Company Tandem Diabetes Care, Inc. is a medical device company with an innovative approach to the design, development and commercialization of products for people with insulin-dependent diabetes. The Company is incorporated in the state of Delaware. Unless the context requires otherwise, the terms the “Company” or “Tandem” refer to Tandem Diabetes Care, Inc., together with its wholly-owned subsidiaries in the U.S. and Canada. The Company manufactures, sells and supports insulin pump products that are designed to address the evolving needs and preferences of differentiated segments of the insulin-dependent diabetes market. The Company’s manufacturing, sales and support activities principally focus on the t:slim X2 Insulin Delivery System (t:slim X2), the Company’s flagship pump platform which is capable of remote feature updates and is designed to display continuous glucose monitoring (CGM) sensor information directly on the pump home screen. The Company’s insulin pump products are compatible with the t:connect cloud-based data management application (t:connect) and the Tandem Device Updater, a Mac and PC-compatible tool for the remote update of the Company’s insulin pump software. The Company’s insulin pump products are generally considered durable medical equipment and have an expected lifespan of at least four years. In addition to insulin pumps, the Company sells disposable products that are used together with the pumps and are replaced every few days, including cartridges for storing and delivering insulin, and infusion sets that connect the insulin pump to a user’s body. The Company has commercially launched seven insulin pumps in the United States since 2012 and three pumps outside the United States since 2018. Four of the insulin pumps have featured integration with CGM technology, of which two have also featured an automated insulin delivery (AID) algorithm. In June 2018, the t:slim X2 was the first insulin pump designated as compatible with integrated CGM (iCGM) devices; in February 2019, the t:slim X2 was the first insulin pump in a new device category called Alternate Controller Enabled Infusion Pumps (ACE pumps); and in December 2019, Control-IQ technology for the t:slim X2 insulin pump was the first automated insulin dosing software in a new interoperable automated glycemic controller category. The Company believes that the three new classifications by the United States Food and Drug Administration (FDA) for the interoperability of devices for AID will help support continued rapid innovation by streamlining the regulatory pathway for integrated products in the United States. As of September 30, 2020, the Company had $464.5 million in cash and cash equivalents and short-term investments. The Company has incurred operating losses since its inception and had an accumulated deficit of $676.2 million as of September 30, 2020, which included a net loss of $51.4 million for the nine months ended September 30, 2020. Management believes that the cash, cash equivalents and short-term investments on hand will be sufficient to satisfy the Company’s liquidity requirements for at least the next 12 months from the date of this filing. The Company’s ability to execute on its business strategy, meet its future liquidity requirements, and achieve and maintain profitable operations, is dependent on a number of factors, including its ability to continue to gain market acceptance of its products and achieve a level of revenues adequate to support its cost structure, achieve renewal pump sales objectives, develop and launch new products, expand the commercialization of products into new international markets, maximize manufacturing efficiencies, satisfy increasing production requirements, leverage the investments made in its sales, clinical, marketing and customer support organizations, and operate its business and manufacture and sell products without infringing on third-party intellectual property rights. The Company has funded its operations primarily through cash collected from product sales, private and public offerings of equity securities, and debt financing. The Company may in the future seek additional capital from public or private offerings of equity or debt securities, or it may elect to borrow capital under new credit arrangements or from other sources. If the Company issues equity or debt securities to raise additional funds, its existing stockholders may experience dilution, it may incur significant financing or debt service costs, and the new equity or debt securities may have rights, preferences and privileges senior to those of its existing stockholders. There can be no assurance that equity or debt financing will be available on acceptable terms, or at all. Basis of Presentation and Principles of Consolidation The Company has prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments which are of a normal and recurring nature, considered necessary for a fair presentation of the financial information contained herein, have been included. Interim financial results are not necessarily indicative of results anticipated for the full year or any other period(s). These unaudited condensed consolidated financial statements 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, 2019 (Annual Report), from which the balance sheet information herein was derived. The condensed consolidated financial statements include the accounts of Tandem Diabetes Care, Inc. and its wholly-owned subsidiaries in the U.S. and Canada. All significant intercompany balances and transactions have been eliminated in consolidation. The functional currency of the Company’s foreign subsidiary is the local currency. The Company translates the financial statements of its foreign subsidiary into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for each period for revenue, costs and expenses. Translation related adjustments are included in comprehensive loss and in accumulated other comprehensive income (loss) in the stockholders’ equity section of the Company’s condensed consolidated balance sheets. Foreign exchange gains or losses resulting from balances denominated in a currency other than the functional currency are recognized in interest income and other, net in the Company’s condensed consolidated statements of operations. Reclassification Prior year amounts related to the presentation of other income (expense), net on the Company’s condensed consolidated statement of operations and comprehensive loss, have been reclassified to conform to the current year presentation. Starting with the third quarter of 2020, the first full quarter in which the Company’s convertible senior notes were outstanding, the Company began to present non-operating expenses unrelated to the convertible senior notes with interest income and other, net. In prior periods, other non-operating expenses were combined with interest expense and reported as interest and other expense. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies There have been no material changes to the Company’s significant accounting policies during the nine months ended September 30, 2020, as compared to those disclosed in the Annual Report, with the exception of policies put in place with regards to its convertible senior notes issued in May 2020. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes as of the date of the consolidated financial statements. Some of those judgments can be subjective and complex, and therefore, actual results could differ materially from those estimates under different assumptions or conditions. Segment Reporting Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the chief operating decision-maker (CODM) in making decisions regarding resource allocation and assessing performance. The Company is organized based on its current product portfolio, which consists primarily of insulin pumps, disposable cartridges and infusion sets for the storage and delivery of insulin. The Company views its operations and manages its business as one segment because key operating decisions and resource allocations are made by the CODM using consolidated financial data. Accounts Receivable The Company grants credit to various customers in the ordinary course of business and is paid directly by customers who use the products, distributors and third-party insurance payors. The Company maintains an allowance for its current estimate of expected credit losses. Provisions for expected credit losses are estimated based on historical experience, assessment of specific risk, review of outstanding invoices, forecasts about the future, and various assumptions and estimates that are believed to be reasonable under the circumstances, which included the Company’s estimates of credit risks as a result of the novel coronavirus pandemic (COVID-19 global pandemic). Uncollectible accounts are written off against the allowance after appropriate collection efforts have been exhausted and when it is deemed that a balance is uncollectible. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and employee-related liabilities are reasonable estimates of their fair values because of the short-term nature of these assets and liabilities. Short-term investments are carried at fair value. The Company determined the fair value of its convertible senior notes at September 30, 2020 to be $367.2 million, based on Level 2 quoted market prices as of that date (see Note 7, “Convertible Senior Notes”). The estimated fair value of certain of the Company’s common stock warrants was determined using the Black-Scholes pricing model as of September 30, 2020 and December 31, 2019 (see Note 5, “Fair Value Measurements”). Operating Lease Right-of-Use Assets and Liabilities In February 2016, the FASB issued ASU No. 2016-02 Leases . The new standard and its related amendments (collectively referred to as ASC 842) require lessees to recognize right-of-use assets and corresponding lease liabilities for all leases with lease terms of greater than 12 months. The new standard was effective for the Company starting in the first quarter of 2019. The Company adopted the new standard using the modified retrospective approach and recognized right-of-use leased assets and corresponding operating lease liabilities of $12.4 million on the consolidated balance sheet as of January 1, 2019. The Company did not restate prior periods. Deferred rent of $1.0 million and $3.8 million as of January 1, 2019 was reclassified from other current liabilities and deferred rent long-term, respectively, to a reduction of the right-of-use leased assets in connection with the adoption of the standard. Lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent their obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized when the Company takes possession of the leased property (the Commencement Date) based on the present value of lease payments over the lease term. Rent expense on noncancelable leases containing known future scheduled rent increases is recorded on a straight-line basis over the term of the respective leases beginning on the Commencement Date. The difference between rent expense and rent paid is accounted for as a component of operating lease right-of-use assets on the Company’s consolidated balance sheet. Landlord improvement allowances and other similar lease incentives are recorded as property and equipment and as a reduction of the right-of-use leased assets, and are amortized on a straight-line basis as a reduction to operating lease costs. Leases with an initial term of 12 months or less are expensed as incurred and are not recorded as right-of-use assets on the consolidated balance sheets (see Note 6, “Leases”). Intangible Assets Subject to Amortization Intangible assets subject to amortization consist of developed technology and patents purchased or licensed that are related to the Company’s commercialized products, and are included in other long-term assets on the consolidated balance sheets. On June 24, 2020, the Company acquired Sugarmate, Inc. (Sugarmate), the developer of a popular mobile app for people with diabetes who use insulin, which is designed to help people with diabetes visualize diabetes therapy data in innovative ways. The Sugarmate acquisition was accounted for as an acquisition of assets in accordance with (ASU) No. 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business. Substantially all of the purchase price was allocated to a technology-based intangible asset, which is being amortized on a straight-line basis over an estimated useful life of five years. The Company’s results of operations for the three and nine months ended September 30, 2020 included the operating results of Sugarmate since the date of acquisition, the amounts of which were not material. Convertible Senior Notes In accounting for the issuance of the convertible senior notes, the Company separated the notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar debt instruments that do not have associated convertible features. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the respective notes. The equity component is not remeasured as long as it continues to meet the condition for equity classification. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the notes. The Company allocated the issuance costs incurred to the liability and equity components of the notes based on their relative fair values. Issuance costs attributable to the liability component were recorded as a reduction to the liability portion of the notes and are being amortized to interest expense over the term of the notes. Issuance costs attributable to the equity component, representing the conversion option, were netted with the equity component in stockholders' equity. Revenue Recognition Revenue is generated primarily from sales of insulin pumps, disposable cartridges and infusion sets to individual customers and third-party distributors that resell the products to insulin-dependent diabetes customers. The Company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue Recognition for Arrangements with Multiple Deliverables The Company considers the individual deliverables in its product offering as separate performance obligations. The transaction price is determined based on the consideration expected to be received, based either on the stated value in contractual arrangements or the estimated cash to be collected in non-contracted arrangements. The Company allocates the consideration to the individual performance obligations and recognizes the consideration based on when the performance obligation is satisfied, considering whether or not this occurs at a point in time or over time. Generally, insulin pumps, cartridges, infusion sets and accessories are deemed performance obligations that are satisfied at a point in time when the customer obtains control of the promised good, which is upon delivery. Complementary products, such as t:connect and the Tandem Device Updater, are considered performance obligations that are satisfied over time, as access and support for these products is provided throughout the typical four-year warranty period of the insulin pumps. Accordingly, revenue related to the complementary products is deferred and recognized ratably over a four-year period. When there is no standalone value for the complementary product, the Company determines their value by applying the expected cost plus a margin approach and then allocates the residual to the insulin pumps. Deferred revenue related to these performance obligations that are satisfied over time was included in the following consolidated balance sheet accounts in the amounts shown as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Deferred revenue $ 4,608 $ 3,465 Other long-term liabilities 8,499 5,656 Total $ 13,107 $ 9,121 Sales Returns The Company offers a 30-day right of return to customers in the U.S. and Canada from the date of shipment of its insulin pumps, provided a physician’s confirmation of the medical reason for the return is received. Estimated allowances for sales returns are based on historical returned quantities as compared to pump shipments in those same periods of return, adjusted for known or expected changes in the marketplace when appropriate. The amount recorded in deferred revenue on the Company’s consolidated balance sheets for allowances for sales returns was $0.6 million and $0.4 million at September 30, 2020 and December 31, 2019, respectively. Actual product returns have not differed materially from estimated amounts recorded in the accompanying condensed consolidated financial statements. Warranty Reserve The Company generally provides a four-year warranty on its insulin pumps to end-user customers and may replace any pumps that do not function in accordance with the product specifications. Insulin pumps returned to the Company may be refurbished and redeployed. Additionally, the Company offers a six-month warranty on disposable cartridges and infusion sets. Estimated warranty costs are recorded at the time of shipment. The Company evaluates the reserve quarterly. Warranty costs are primarily estimated based on the current expected product replacement cost and expected replacement rates utilizing historical experience. Recently released versions of the pump may not incur warranty costs in a manner similar to previously released pumps, on which the Company initially bases its warranty estimate of newer pumps. The Company may make further adjustments to the warranty reserve when deemed appropriate, giving additional consideration to length of time the pump version has been in the field and future expectations of performance based on new features and capabilities that may become available through Tandem Device Updater. The following table provides a reconciliation of the change in product warranty liabilities from December 31, 2019 through September 30, 2020 (in thousands): Balance at December 31, 2019 $ 16,724 Provision for warranties issued during the period 14,588 Settlements made during the period (10,217) Decreases in warranty estimates (2,902) Balance at September 30, 2020 $ 18,193 As of September 30, 2020 and December 31, 2019, total product warranty reserves of $18.2 million and $16.7 million, respectively, were included in the following consolidated balance sheet accounts (in thousands): September 30, 2020 December 31, 2019 Other current liabilities $ 6,964 $ 4,707 Other long-term liabilities 11,229 12,017 Total warranty reserve $ 18,193 $ 16,724 Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the estimated fair value of the award, and the portion that is ultimately expected to vest is recognized as compensation expense over the requisite service period on a straight-line basis. The Company estimates the fair value of stock options issued under the Company’s Amended and Restated 2013 Stock Incentive Plan (2013 Plan), and the fair value of the employees’ purchase rights under the Company’s 2013 Employee Stock Purchase Plan (ESPP), using the Black-Scholes option-pricing model on the date of grant. The Black-Scholes option-pricing model requires the use of assumptions about a number of variables, including stock price volatility, expected term, dividend yield and risk-free interest rate (see Note 8, “Stockholders’ Equity”). The fair value of restricted stock unit (RSU) awards issued under the Company’s 2013 Plan that vest solely based on service is estimated based on the fair market value of the underlying stock on the date of grant. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares that were outstanding for the period, without consideration for common stock equivalents. Diluted loss per share reflects the potential dilution that would occur if securities exercisable for or convertible into common stock were exercised for or converted into common stock. Dilutive common share equivalents are comprised of warrants, stock options outstanding under the Company’s equity incentive plans, unvested RSUs, and potential awards granted pursuant to the ESPP, each calculated using the treasury stock method; and shares issuable upon conversion of the senior convertible notes using the if-converted method. For warrants that are recorded as a liability in the accompanying condensed consolidated balance sheets, the calculation of diluted loss per share requires that, to the extent the average market price of the underlying shares for the reporting period exceeds the exercise price of the warrants and the presumed exercise of the warrants is dilutive to loss per share for the period, an adjustment is made to net loss used in the calculation to remove the change in fair value of the warrants from the numerator for the period. Likewise, an adjustment to the denominator is required to reflect the related dilutive shares, if any, under the treasury stock method. For all periods presented other than the three months ended September 30, 2019, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position. For the three months ended September 30, 2019, the net loss used in the calculation of diluted net loss per share was increased by $2.3 million to remove the decrease in fair value of common stock warrants based on the dilutive effect of assumed exercise, and the denominator was increased by 394,433 shares calculated under the treasury stock method. Potentially dilutive securities outstanding and not included in the calculation of diluted net loss per share (because inclusion would be anti-dilutive) are as follows (in thousands, in common stock equivalent shares): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Warrants to purchase common stock 383 293 383 710 Options to purchase common stock 5,548 6,234 5,128 5,868 Unvested restricted stock units 134 N/A 61 N/A Awards granted under the ESPP 42 134 21 45 Convertible senior notes (if-converted) 2,554 N/A 1,286 N/A 8,661 6,661 6,879 6,623 Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which modifies the measurement and recognition of credit losses for most financial assets and certain other instruments. The new standard requires the use of forward-looking expected credit loss models based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount, which may result in earlier recognition of credit losses under the new standard. The new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income (loss) rather than reducing the carrying amount under the prior, other-than-temporary-impairment model. The new standard must be adopted using the modified retrospective approach and was effective for the Company starting in the first quarter of 2020. The Company determined there was no cumulative-effect transition adjustment to the opening balance of accumulated deficit for recognition of additional credit losses upon adoption of this standard as of January 1, 2020 based on its outstanding accounts receivable, the composition and credit quality of its short-term investments, and current economic conditions as of that date. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement , which adds and modifies certain disclosure requirements for fair value measurements. Under the new guidance, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, or valuation processes for Level 3 fair value measurements. However, public companies will be required to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and related changes in unrealized gains and losses included in other comprehensive income. The updated guidance was effective for the Company starting in the first quarter of 2020. As a result, the Company modified certain fair value measurement disclosures primarily related to its Level 3 liabilities (see Note 5, “Fair Value Measurements”). In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes , which is intended to simplify various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. ASU 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, and early adoption is permitted. The Company early adopted the new guidance in the second quarter of 2020. As a result, the Company recognized, on a prospective basis, $13,000 of income tax expense in the second quarter of 2020 upon the reversal of tax benefits recorded in the first quarter of 2020 related to unrealized gains on short-term investments. In June 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which is intended to simplify the accounting for convertible instruments. This new guidance eliminates certain models that require separate accounting for embedded conversion features, and eliminates certain of the conditions for equity classification for contracts in an entity’s own equity. Accordingly, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The new guidance can be adopted through either a modified retrospective method of transition or a fully retrospective method of transition. ASU 2020-06 is effective for public business entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is in the process of determining the impact of the adoption of the standard on its consolidated financial statements as well as whether to early adopt the new standard. |
Short-Term Investments
Short-Term Investments | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term Investments | Short-Term Investments The Company invests in marketable securities consisting of debt instruments of the U.S. Government, and financial institutions and corporations with strong credit ratings. The following represents a summary of the estimated fair value of short-term investments as of September 30, 2020 and December 31, 2019 (in thousands): At September 30, 2020 Maturity Amortized Gross Unrealized Gross Unrealized Estimated Available-for-sale securities: Commercial paper Less than 1 $ 94,076 $ 9 $ (1) $ 94,084 U.S. Government-sponsored enterprise Less than 2 32,157 23 (1) 32,179 U.S. Treasury securities Less than 1 105,779 36 — 105,815 Corporate debt securities Less than 2 102,862 107 (6) 102,963 Total $ 334,874 $ 175 $ (8) $ 335,041 At December 31, 2019 Maturity Amortized Gross Unrealized Gross Unrealized Estimated Available-for-sale securities: Commercial paper Less than 1 $ 24,147 $ 10 $ — $ 24,157 U.S. Government-sponsored enterprise Less than 2 33,073 26 — 33,099 U.S. Treasury securities Less than 2 17,963 17 (1) 17,979 Corporate debt securities Less than 2 50,011 42 (5) 50,048 Total $ 125,194 $ 95 $ (6) $ 125,283 The Company has classified all marketable securities, regardless of maturity, as short-term investments based upon the Company’s ability and intent to use any of those marketable securities to satisfy the Company’s liquidity requirements. |
Accounts Receivable and Invento
Accounts Receivable and Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Accounts Receivable And Inventories Disclosure [Abstract] | |
Accounts Receivable and Inventories | Accounts Receivable and Inventories Accounts Receivable Accounts receivable consisted of the following (in thousands): September 30, December 31, 2020 2019 Accounts receivable $ 55,568 $ 49,889 Less: allowance for credit losses (3,464) (3,304) Accounts receivable, net $ 52,104 $ 46,585 Allowance for Credit Losses The following table provides a reconciliation of the change in the estimated allowance for expected accounts receivable credit losses for the three and nine month periods ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Balance at beginning of the period $ 3,139 $ 2,194 $ 3,304 $ 1,837 Provision for expected credit losses 653 671 2,181 1,468 Write-offs and adjustments, net of recoveries (328) (173) (2,021) (613) Balance at end of the period $ 3,464 $ 2,692 $ 3,464 $ 2,692 Inventories Inventories consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Raw materials $ 36,111 $ 20,699 Work-in-process 14,316 16,532 Finished goods 20,217 11,842 Total Inventories $ 70,644 $ 49,073 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Authoritative guidance on fair value measurements defines fair value, and provides a consistent framework for measuring fair value and for disclosures of each major asset and liability category measured at fair value on either a recurring or a nonrecurring basis. Fair value is intended to reflect an assumed exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the authoritative guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 3: Unobservable inputs in which there is little or no market data and that are significant to the fair value of the assets or liabilities, which require the reporting entity to develop its own valuation techniques that require input assumptions. The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands): Fair Value Measurements at September 30, 2020 (Level 1) (Level 2) (Level 3) Assets Cash equivalents (1) $ 127,732 $ 127,732 $ — $ — Commercial paper 94,084 — 94,084 — U.S. Government-sponsored enterprise 32,179 — 32,179 — U.S. Treasury securities 105,815 105,815 — — Corporate debt securities 102,963 — 102,963 — Total assets $ 462,773 $ 233,547 $ 229,226 $ — Liabilities Common stock warrants $ 17,404 $ — $ — $ 17,404 Total liabilities $ 17,404 $ — $ — $ 17,404 Fair Value Measurements at December 31, 2019 (Level 1) (Level 2) (Level 3) Assets Cash equivalents (1) $ 33,844 $ 33,844 $ — $ — Commercial paper 24,157 — 24,157 — U.S. Government-sponsored enterprise 33,099 — 33,099 — U.S. Treasury securities 17,979 17,979 — — Corporate debt securities 50,048 — 50,048 — Total assets $ 159,127 $ 51,823 $ 107,304 $ — Liabilities Common stock warrants $ 23,509 $ — $ — $ 23,509 Total liabilities $ 23,509 $ — $ — $ 23,509 (1) Generally, cash equivalents include money market funds and investments with a maturity of three months or less from the date of purchase. The Company’s Level 2 financial instruments are valued using market prices on less active markets with observable valuation inputs such as interest rates and yield curves. The Company obtains the fair value of Level 2 financial instruments from quoted market prices, calculated prices or quotes from third-party pricing services. The Company validates these prices through independent valuation testing and review of portfolio valuations provided by the Company’s investment managers. The Company’s Level 3 liabilities at September 30, 2020 and December 31, 2019 include the remaining Series A warrants issued by the Company in connection with the public offering of common stock in October 2017. The Series A warrants, which expire in October 2022, initially provided holders the right to purchase 4,630,000 shares of the Company’s common stock at an exercise price of $3.50 per share. The Series A warrants were initially valued in the aggregate amount of $5.2 million on the date of issuance utilizing a Black-Scholes pricing model. During the nine months ended September 30, 2020 and 2019, the Company issued 259,115 shares and 93,470 shares of common stock, respectively, upon the exercise of Series A warrants. As of September 30, 2020 and 2019, there were Series A warrants outstanding to purchase 158,200 shares and 417,315 shares, respectively, of the Company’s common stock (see Note 8, “Stockholders’ Equity”). The Company reassesses the fair value of the outstanding Series A warrants at each reporting date utilizing a Black-Scholes pricing model. Variables used in the pricing model include the closing market price of the Company’s common stock at the balance sheet date, and estimates of stock price volatility, dividend yield, expected warrant term and risk-free interest rate. The Company develops its estimates based on publicly available historical data. A significant increase (decrease) in any of these inputs in isolation, particularly the market price of the Company’s common stock, would have resulted in a significantly higher (lower) fair value measurement. The assumptions used to estimate the fair values of the outstanding Series A warrants at September 30, 2020 and December 31, 2019 are presented below: September 30, 2020 December 31, 2019 Risk-free interest rate 0.1 % 1.6 % Expected dividend yield 0.0 % 0.0 % Expected volatility 64.1 % 77.2 % Expected term (in years) 2.0 2.8 The following table presents a summary of changes in the fair value of the Company’s Level 3 financial liabilities for the nine months ended September 30, 2020 and 2019: Nine Months Ended September 30, 2020 2019 Balance at beginning of the period $ 23,509 $ 17,926 Loss recognized from the change in fair value of common stock warrants 19,906 10,849 Decrease in fair value from warrants exercised during the period (26,011) (5,492) Balance at end of the period $ 17,404 $ 23,283 Of the loss recognized from the change in fair value of common stock warrants for the nine months ended September 30, 2020 and 2019, $8.5 million and $8.6 million, respectively, was attributable to warrants outstanding as of September 30, 2020 and 2019. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company’s leases consist of operating leases for general office space, laboratory, manufacturing and warehouse facilities, and equipment. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Because the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at the lease Commencement Date in determining the present value of future lease payments. The Company used the incremental borrowing rate on January 1, 2019 for operating leases that commenced prior to that date. For lease agreements entered into or reassessed after the adoption of ASC 842, the Company combines lease and non-lease components. Certain leases include an option to renew, with renewal terms that can extend the lease term for additional periods. The exercise of lease renewal options is at the Company’s sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option that is reasonably certain to be exercised. In January 2019, the Company entered into a lease agreement for approximately 25,332 square feet of additional general administrative office space (Initial Premises) located on Vista Sorrento Parkway, in San Diego, California (Vista Sorrento Lease). The lease term for the Initial Premises commenced in March 2019 and expires in September 2022. In May 2019, the Company entered into a First Amendment to the Vista Sorrento Lease (First Amendment) to expand the leased premises by adding approximately 33,681 square feet of additional general administrative office space (Expansion Space), and to extend the lease term for the Initial Premises through January 2023. The lease term for the Expansion Space commenced in May 2019 and expires in January 2023. The Company has a one-time option to extend the term of the Vista Sorrento Lease, covering both the Initial Premises and the Expansion Space, for a period of four years. The Company recognized right-of-use leased assets and corresponding operating lease liabilities of $3.1 million on the consolidated balance sheet in the first quarter of 2019 related to the Initial Premises, and $4.7 million related to the First Amendment. In March 2019, the Company entered into a lease agreement for approximately 40,490 square feet of space located on Marindustry Place, San Diego, California to house additional operations functions, including warehousing and shipping (Marindustry Place Lease). The lease term commenced in May 2019 and expires in April 2026. The Company has a one-time option to extend the term of the Marindustry Place Lease for a period of no less than three years and no more than five years. The Company recognized right-of-use leased assets and corresponding operating lease liabilities of $3.4 million on the consolidated balance sheet on the Commencement Date in the second quarter of 2019. In November 2019, the Company entered into a lease agreement for approximately 94,562 square feet of additional general office space located on Shoreline Drive, in Boise, Idaho (Shoreline Lease). The lease term commenced on July 1, 2020, and expires in June 2027. The Company has a one-time option to extend the term of the Shoreline Lease for a period of three years. The Company recognized right-of-use leased assets and corresponding operating lease liabilities of approximately $6.5 million on the consolidated balance sheet on the Commencement Date in the first quarter of 2020. In January 2020, the Company entered into a sub-lease agreement for approximately 30,703 square feet of general office space located on High Bluff Drive, in San Diego, California. The lease term began in April 2020 and expires in March 2022. The Company recognized right-of-use leased assets and corresponding operating lease liabilities of approximately $2.3 million on the consolidated balance sheet on the Commencement Date in the first quarter of 2020. In September 2020, the Company amended certain leases covering approximately 77,000 square feet of general office and laboratory space located on Roselle Street in San Diego, California (Roselle Street Leases). The lease amendments extended the term of each lease for an additional period of one year, and included a rent increase during the additional lease term. The Roselle Street Leases, which would have expired in May 2022, are now scheduled to expire in May 2023. The Company recognized additional right-of-use leased assets and corresponding operating lease liabilities of $2.2 million on the consolidated balance sheet in the third quarter of 2020 related to the amendment of the Roselle Street Leases. The Company’s lease cost recorded in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Operating lease cost $ 1,914 $ 1,372 $ 5,569 $ 3,208 Short-term lease cost 63 39 198 84 Total lease cost $ 1,977 $ 1,411 $ 5,767 $ 3,292 Maturities of operating lease liabilities at September 30, 2020 were as follows (in thousands): Years Ending December 31, 2020 (remaining) $ 2,314 2021 9,421 2022 8,710 2023 4,386 2024 1,881 Thereafter 3,975 Total undiscounted lease payments 30,687 Less: amount representing interest (3,429) Present value of operating lease liabilities 27,258 Less: current portion of operating lease liabilities (9,365) Operating lease liabilities - long-term $ 17,893 The weighted-average remaining lease term and weighted-average discount rate for operating leases were as follows: September 30, December 31, Weighted-average remaining lease term (in years) 3.9 3.6 Weighted-average discount rate used to determine operating lease liabilities 5.9 % 6.6 % Cash paid for amounts included in the measurement of lease liabilities, representing operating cash flows from operating leases, was $5.9 million and $3.1 million for the nine months ended September 30, 2020 and 2019, respectively. |
Convertible Senior Notes
Convertible Senior Notes | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In May 2020, the Company entered into a purchase agreement with certain counterparties for the sale of an aggregate of $250.0 million principal amount of 1.50% Convertible Senior Notes due 2025 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The notes consisted of a $250.0 million initial placement (Base Notes) and an over-allotment option that provided the initial purchasers of the Base Notes with the option to purchase an additional $37.5 million aggregate principal amount of notes (together with the Base Notes, the Notes), which was fully exercised. The Notes were issued pursuant to an Indenture, dated May 15, 2020, between the Company and U.S. Bank National Association, as trustee (Indenture). The net proceeds from the issuance of the Notes were $244.6 million, net of debt issuance costs and cash used to purchase the capped call transactions (Capped Call Transactions) discussed below. The Notes are the Company’s senior unsecured obligations. Interest is payable in cash semi-annually in arrears beginning on November 1, 2020 at a rate of 1.50% per year. The Notes mature on May 1, 2025 unless repurchased, redeemed, or converted in accordance with their terms prior to the maturity date. The Notes are convertible into cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Company’s election, at an initial conversion rate of 8.8836 shares of common stock per $1,000 principal amount of the Notes, which is equivalent to an initial conversion price of approximately $112.57 (Conversion Price) per share of the Company’s common stock. The conversion rate is subject to customary adjustments for certain events as described in the Indenture. The Company may not redeem the Notes prior to May 6, 2023. The Company has the option to redeem for cash all or any portion of the Notes on or after May 6, 2023 if the last reported sale price of the Company’s common stock has been at least 130% of the Conversion Price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides notice of redemption, during any 30 consecutive trading day period, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest. No sinking fund is provided for the Notes. Holders of the Notes may convert all or a portion of their Notes at their option prior to November 1, 2024, in multiples of $1,000 principal amounts, only under the following circumstances: • if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable conversion price of the Notes on each such trading day; • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of the Company’s common stock and the applicable conversion rate of the Notes on such trading day; • if the Company calls any or all of the Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or • on the occurrence of specified corporate events. On or after November 1, 2024, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances. Holders of the Notes who convert in connection with a make-whole fundamental change, as defined in the Indenture, or in connection with a redemption are entitled to an increase in the conversion rate. Additionally, in the event of a fundamental change, as defined in the Indenture, holders of the Notes may require us to repurchase all or a portion of the Notes at a price equal to 100% of the principal amount of the Notes, plus any accrued and unpaid interest. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar debt instruments, which do not have an associated convertible feature. The carrying amount of the equity component representing the conversion option for the Notes was $85.8 million and was recorded as a debt discount, which is amortized to interest expense at an effective interest rate of 9.9%. The Company allocated $2.7 million of debt issuance costs to the equity component and the remaining debt issuance costs of $6.1 million were allocated to the liability component, which are amortized to interest expense under the effective interest rate method. The equity component of the Notes will not be remeasured as long as it continues to meet the conditions for equity classification. It is the Company’s intent and policy to settle conversions through combination settlement, which essentially involves payment in cash equal to the principal portion and delivery of shares of common stock for the excess of the conversion value over the principal portion. The Notes consisted of the following (in thousands): As of Liability: Principal $ 287,500 Unamortized debt discount and debt issuance costs (88,380) Net carrying amount $ 199,120 Carrying amount of the equity component $ 85,803 As of September 30, 2020, the debt discount and debt issuance costs associated with the Notes will be amortized over the remaining period of approximately 4.6 years. The following table details interest expense recognized related to the Notes for the three and nine months ended September 30, 2020 (in thousands): Three Months Ended Nine Months Ended Contractual interest expense $ 1,078 $ 1,797 Amortization of debt issuance costs 244 403 Amortization of debt discount 3,533 5,830 Total interest expense $ 4,855 $ 8,030 The notes will have a dilutive effect to the extent the average market price per share of common stock for a given reporting period exceeds the conversion price of $112.57. As of September 30, 2020, the “if-converted value” did not exceed the principal amount of the Notes. Capped Call Transactions In connection with the issuance of the Notes, the Company entered into Capped Call Transactions with certain counterparties at a net cost of $34.1 million. The Capped Call Transactions are intended to reduce potential dilution to holders of the Company’s common stock beyond the conversion price of $112.57, up to a conversion price of $173.18 on any conversion of the Notes, or to offset any cash payments the Company is required to make in excess of the principal amount of such converted Notes, as the case may be, with such reduction or offset subject to a cap. The cap price of the Capped Call Transactions is initially $173.18 per share of the Company’s common stock, representing a premium of 100% above the last reported sale price of $86.59 per share of the Company’s common stock on May 12, 2020, and is subject to certain adjustments under the terms of the Capped Call Transactions. Conditions that cause adjustments to the initial strike price of the Capped Call Transactions mirror conditions that result in corresponding adjustments for the Notes. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Notes. As these transactions meet certain criteria under the applicable accounting guidance, the Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. The cost of the Capped Call Transactions was recorded as a reduction of the Company’s additional paid-in capital in the Company’s consolidated balance sheet and will not be remeasured. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Shares Reserved for Future Issuance The following shares of the Company’s common stock were reserved for future issuance as of September 30, 2020 (in thousands): Shares underlying outstanding warrants 383 Shares underlying outstanding stock options 5,866 Shares underlying unvested restricted stock units 135 Shares authorized for future equity award grants 2,117 Shares authorized for issuance pursuant to awards granted under the ESPP 1,462 9,963 Common Stock Warrants Warrants outstanding to purchase shares of the Company's common stock as of September 30, 2020 were as follows: Issue Date Exercise Price Per Share Warrants Outstanding Expiration Date October 2017 $3.50 158,200 October 2022 March 2017 $23.50 193,788 March 2027 August 2011 - August 2012 $73.73 31,166 August 2021 - August 2022 383,154 Each warrant allows the holder to purchase one share of the Company's common stock at the exercise price per share of the respective warrant. The Company issued 257,000 and 291,894 shares of its common stock upon the exercise of warrants during the three and nine months ended September 30, 2020, and 200 and 93,470 shares of its common stock upon the exercise of warrants during the three and nine months ended September 30, 2019. Stock Plans The Company issued 1,072,499 and 2,198,986 shares, respectively, of its common stock upon the exercise of stock options during the three and nine months ended September 30, 2020. The Company issued 439,646 and 1,213,428 shares, respectively, of its common stock upon the exercise of stock options during the three and nine months ended September 30, 2019. The ESPP enables eligible employees to purchase shares of the Company’s common stock using their after-tax payroll deductions, subject to certain conditions. Generally, offerings under the ESPP consist of a two-year offering period with four six-month purchase periods which begin in May and November of each year. During the nine months ended September 30, 2020 and 2019, 229,320 and 168,165 shares of the Company’s common stock, respectively, were purchased under the ESPP for proceeds of $4.9 million and $3.0 million, respectively. Stock-Based Compensation The Company granted options to purchase 1,010,996 shares of common stock under the 2013 Plan during the nine months ended September 30, 2020. During the nine months ended September 30, 2019, the Company granted options to purchase 2,916,906 shares of common stock under the 2013 Plan, of which 1,644,715 were originally awarded between February 2019 and June 2019, subject to and conditioned upon the approval by its stockholders of an increase in the number of shares of common stock reserved for issuance under the 2013 Plan. Stock-based compensation expense was not recognized for these contingent stock option grants prior to the approval by the Company’s stockholders of the increase in the number of shares of common stock reserved for issuance under the 2013 Plan, which occurred in June 2019. These options have an exercise price equal to the closing price of the Company’s common stock on the applicable award date, and generally vest as to 25% of the underlying shares on the first anniversary of the award, with the balance of the options vesting monthly over the following three years. The Company also granted 2,846 and 134,694 restricted stock units (RSUs), respectively, during the three and nine months ended September 30, 2020. These RSUs have a grant price equal to the closing price of the Company’s common stock on the award date, and vest based only on service as to 25% of the underlying shares on the first anniversary of the award, with the balance of the RSUs vesting quarterly over the following three years, except for 17,857 RSUs which vest in annual installments over a period of one The assumptions used in the Black-Scholes option-pricing model are as follows: Stock Options Three Months Ended Nine Months Ended 2020 2019 2020 2019 Weighted average grant date fair value (per share) $67.64 $38.74 $52.83 $39.08 Risk-free interest rate 0.4 % 1.7 % 0.6 % 2.1 % Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % Expected volatility 75.3 % 71.8 % 74.5 % 71.8 % Expected term (in years) 6.1 6.1 6.1 6.0 ESPP Nine Months Ended 2020 2019 Weighted average grant date fair value (per share) $36.18 $33.49 Risk-free interest rate 0.2 % 2.3 % Expected dividend yield 0.0 % 0.0 % Expected volatility 65.7 % 75.9 % Expected term (in years) 1.3 1.3 The Company records stock-based compensation expense associated with the ESPP using the Black-Scholes option-pricing model. Valuations are performed on the grant date at the beginning of the purchase period, which generally occurs in May and November of each year. The following table summarizes the allocation of stock-based compensation expense included in the consolidated statement of operations (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Cost of sales $ 2,138 $ 1,751 $ 6,464 $ 4,178 Selling, general & administrative 8,866 13,110 32,077 29,060 Research and development 1,833 2,369 6,582 6,148 Total $ 12,837 $ 17,230 $ 45,123 $ 39,386 The total stock-based compensation expense capitalized as part of the cost of the Company’s inventories was $0.7 million and $1.3 million as of September 30, 2020 and December 31, 2019, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesFor the three and nine months ended September 30, 2020 and 2019, the Company’s income tax expense was primarily attributable to state and foreign income tax expense as a result of current taxable income in those jurisdictions. The nine months ended September 30, 2020 also included a benefit associated with release of valuation allowance related to the acquisition of Sugarmate during the second quarter of 2020. The Company used the year-to-date effective tax rate method to determine its interim income tax expense for federal and state jurisdictions where a reliable estimate of the annual effective tax rate could not be made. The Company maintains a full valuation allowance against its net deferred tax assets as of September 30, 2020 based on the current assessment that it is not more likely than not these future benefits will be realized before expiration. On March 27, 2020, the United States enacted the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The CARES Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the United States economy and fund a nationwide effort to curtail the effect of the COVID-19 global pandemic. While the CARES Act provides sweeping tax changes in response to the COVID-19 global pandemic, some of the more significant provisions which are expected to impact the Company’s financial statements include removal of certain limitations on utilization of net operating losses, increasing the loss carryback period for certain losses to five years, and increasing the ability to deduct interest expense, as well as amending certain provisions of the previously enacted Tax Cuts and Jobs Act. Due to the recent enactment of the CARES Act, the Company is unable to quantify the impact, if any, that the CARES Act will have on its financial position, results of operations or cash flows but it is not anticipated to be significant. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal and Regulatory Matters From time to time, the Company may be subject to legal proceedings or regulatory matters arising in the ordinary course of business, including actions with respect to intellectual property, data privacy, employment, regulatory, product liability and contractual matters. In connection with these proceedings or matters, the Company regularly assesses the probability and amount (or range) of possible losses based on the developments in these proceedings or matters. A liability is recorded in the consolidated financial statements if it is determined that it is probable that a loss has been incurred, and that the amount (or range) of the loss can be reasonably estimated. Because of the uncertainties related to any pending proceedings or matters, the Company is currently unable to predict their ultimate outcome and, with respect to any legal proceeding or regulatory matter where no liability has been accrued, to make a reasonable estimate of the possible loss (or range of loss) that could result from an adverse outcome. As of September 30, 2020 and December 31, 2019, there were no legal proceedings, regulatory matters, or other disputes or claims for which a material loss was considered probable or for which the amount (or range) of loss was deemed to be reasonably estimable. However, regardless of the outcome, legal proceedings, regulatory matters, and other disputes and claims can have an adverse impact on the Company because of legal costs, diversion of management time and resources, and other factors. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Principles of Consolidation The Company has prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments which are of a normal and recurring nature, considered necessary for a fair presentation of the financial information contained herein, have been included. Interim financial results are not necessarily indicative of results anticipated for the full year or any other period(s). These unaudited condensed consolidated financial statements 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, 2019 (Annual Report), from which the balance sheet information herein was derived. The condensed consolidated financial statements include the accounts of Tandem Diabetes Care, Inc. and its wholly-owned subsidiaries in the U.S. and Canada. All significant intercompany balances and transactions have been eliminated in consolidation. The functional currency of the Company’s foreign subsidiary is the local currency. The Company translates the financial statements of its foreign subsidiary into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for each period for revenue, costs and expenses. Translation related adjustments are included in comprehensive loss and in accumulated other comprehensive income (loss) in the stockholders’ equity section of the Company’s condensed consolidated balance sheets. Foreign exchange gains or losses resulting from balances denominated in a currency other than the functional currency are recognized in interest income and other, net in the Company’s condensed consolidated statements of operations. |
Reclassification | Reclassification Prior year amounts related to the presentation of other income (expense), net on the Company’s condensed consolidated statement of operations and comprehensive loss, have been reclassified to conform to the current year presentation. Starting with the third quarter of 2020, the first full quarter in which the Company’s convertible senior notes were outstanding, the Company began to present non-operating expenses unrelated to the convertible senior notes with interest income and other, net. In prior periods, other non-operating expenses were combined with interest expense and reported as interest and other expense. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes as of the date of the consolidated financial statements. Some of those judgments can be subjective and complex, and therefore, actual results could differ materially from those estimates under different assumptions or conditions. |
Segment Reporting | Segment Reporting Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the chief operating decision-maker (CODM) in making decisions regarding resource allocation and assessing performance. The Company is organized based on its current product portfolio, which consists primarily of insulin pumps, disposable cartridges and infusion sets for the storage and delivery of insulin. The Company views its operations and manages its business as one segment because key operating decisions and resource allocations are made by the CODM using consolidated financial data. |
Accounts Receivable | Accounts Receivable The Company grants credit to various customers in the ordinary course of business and is paid directly by customers who use the products, distributors and third-party insurance payors. The Company maintains an allowance for its current estimate of expected credit losses. Provisions for expected credit losses are estimated based on historical experience, assessment of specific risk, review of outstanding invoices, forecasts about the future, and various assumptions and estimates that are believed to be reasonable under the circumstances, which included the Company’s estimates of credit risks as a result of the novel coronavirus pandemic (COVID-19 global pandemic). Uncollectible accounts are written off against the allowance after appropriate collection efforts have been exhausted and when it is deemed that a balance is uncollectible. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and employee-related liabilities are reasonable estimates of their fair values because of the short-term nature of these assets and liabilities. Short-term investments are carried at fair value. The Company determined the fair value of its convertible senior notes at September 30, 2020 to be $367.2 million, based on Level 2 quoted market prices as of that date (see Note 7, “Convertible Senior Notes”). The estimated fair value of certain of the Company’s common stock warrants was determined using the Black-Scholes pricing model as of September 30, 2020 and December 31, 2019 (see Note 5, “Fair Value Measurements”). |
Operating Lease Right-of-Use Assets and Liabilities | Operating Lease Right-of-Use Assets and Liabilities In February 2016, the FASB issued ASU No. 2016-02 Leases . The new standard and its related amendments (collectively referred to as ASC 842) require lessees to recognize right-of-use assets and corresponding lease liabilities for all leases with lease terms of greater than 12 months. The new standard was effective for the Company starting in the first quarter of 2019. The Company adopted the new standard using the modified retrospective approach and recognized right-of-use leased assets and corresponding operating lease liabilities of $12.4 million on the consolidated balance sheet as of January 1, 2019. The Company did not restate prior periods. Deferred rent of $1.0 million and $3.8 million as of January 1, 2019 was reclassified from other current liabilities and deferred rent long-term, respectively, to a reduction of the right-of-use leased assets in connection with the adoption of the standard. Lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent their obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized when the Company takes possession of the leased property (the Commencement Date) based on the present value of lease payments over the lease term. Rent expense on noncancelable leases containing known future scheduled rent increases is recorded on a straight-line basis over the term of the respective leases beginning on the Commencement Date. The difference between rent expense and rent paid is accounted for as a component of operating lease right-of-use assets on the Company’s consolidated balance sheet. Landlord improvement allowances and other similar lease incentives are recorded as property and equipment and as a reduction of the right-of-use leased assets, and are amortized on a straight-line basis as a reduction to operating lease costs. Leases with an initial term of 12 months or less are expensed as incurred and are not recorded as right-of-use assets on the consolidated balance sheets (see Note 6, “Leases”). |
Intangible Assets Subject to Amortization | Intangible Assets Subject to Amortization Intangible assets subject to amortization consist of developed technology and patents purchased or licensed that are related to the Company’s commercialized products, and are included in other long-term assets on the consolidated balance sheets. |
Convertible Senior Notes | Convertible Senior Notes In accounting for the issuance of the convertible senior notes, the Company separated the notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar debt instruments that do not have associated convertible features. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the respective notes. The equity component is not remeasured as long as it continues to meet the condition for equity classification. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the notes. The Company allocated the issuance costs incurred to the liability and equity components of the notes based on their relative fair values. Issuance costs attributable to the liability component were recorded as a reduction to the liability portion of the notes and are being amortized to interest expense over the term of the notes. Issuance costs attributable to the equity component, representing the conversion option, were netted with the equity component in stockholders' equity. |
Revenue Recognition | Revenue Recognition Revenue is generated primarily from sales of insulin pumps, disposable cartridges and infusion sets to individual customers and third-party distributors that resell the products to insulin-dependent diabetes customers. The Company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue Recognition for Arrangements with Multiple Deliverables The Company considers the individual deliverables in its product offering as separate performance obligations. The transaction price is determined based on the consideration expected to be received, based either on the stated value in contractual arrangements or the estimated cash to be collected in non-contracted arrangements. The Company allocates the consideration to the individual performance obligations and recognizes the consideration based on when the performance obligation is satisfied, considering whether or not this occurs at a point in time or over time. Generally, insulin pumps, cartridges, infusion sets and accessories are deemed performance obligations that are satisfied at a point in time when the customer obtains control of the promised good, which is upon delivery. Complementary products, such as t:connect and the Tandem Device Updater, are considered performance obligations that are satisfied over time, as access and support for these products is provided throughout the typical four-year warranty period of the insulin pumps. Accordingly, revenue related to the complementary products is deferred and recognized ratably over a four-year period. When there is no standalone value for the complementary product, the Company determines their value by applying the expected cost plus a margin approach and then allocates the residual to the insulin pumps. Deferred revenue related to these performance obligations that are satisfied over time was included in the following consolidated balance sheet accounts in the amounts shown as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Deferred revenue $ 4,608 $ 3,465 Other long-term liabilities 8,499 5,656 Total $ 13,107 $ 9,121 Sales Returns The Company offers a 30-day right of return to customers in the U.S. and Canada from the date of shipment of its insulin pumps, provided a physician’s confirmation of the medical reason for the return is received. Estimated allowances for sales returns are based on historical returned quantities as compared to pump shipments in those same periods of return, adjusted for known or expected changes in the marketplace when appropriate. The amount recorded in deferred revenue on the Company’s consolidated balance sheets for allowances for sales returns was $0.6 million and $0.4 million at September 30, 2020 and December 31, 2019, respectively. Actual product returns have not differed materially from estimated amounts recorded in the accompanying condensed consolidated financial statements. |
Warranty Reserve | Warranty Reserve The Company generally provides a four-year warranty on its insulin pumps to end-user customers and may replace any pumps that do not function in accordance with the product specifications. Insulin pumps returned to the Company may be refurbished and redeployed. Additionally, the Company offers a six-month warranty on disposable cartridges and infusion sets. Estimated warranty costs are recorded at the time of shipment. The Company evaluates the reserve quarterly. Warranty costs are primarily estimated based on the current expected product replacement cost and expected replacement rates utilizing historical experience. Recently released versions of the pump may not incur warranty costs in a manner similar to previously released pumps, on which the Company initially bases its warranty estimate of newer pumps. The Company may make further adjustments to the warranty reserve when deemed appropriate, giving additional consideration to length of time the pump version has been in the field and future expectations of performance based on new features and capabilities that may become available through Tandem Device Updater. |
Stock-Based Compensation | Stock-Based CompensationStock-based compensation cost is measured at the grant date based on the estimated fair value of the award, and the portion that is ultimately expected to vest is recognized as compensation expense over the requisite service period on a straight-line basis. The Company estimates the fair value of stock options issued under the Company’s Amended and Restated 2013 Stock Incentive Plan (2013 Plan), and the fair value of the employees’ purchase rights under the Company’s 2013 Employee Stock Purchase Plan (ESPP), using the Black-Scholes option-pricing model on the date of grant. The Black-Scholes option-pricing model requires the use of assumptions about a number of variables, including stock price volatility, expected term, dividend yield and risk-free interest rate (see Note 8, “Stockholders’ Equity”). The fair value of restricted stock unit (RSU) awards issued under the Company’s 2013 Plan that vest solely based on service is estimated based on the fair market value of the underlying stock on the date of grant. |
Net Loss Per Share | Net Loss Per ShareBasic net loss per share is calculated by dividing the net loss by the weighted average number of common shares that were outstanding for the period, without consideration for common stock equivalents. Diluted loss per share reflects the potential dilution that would occur if securities exercisable for or convertible into common stock were exercised for or converted into common stock. Dilutive common share equivalents are comprised of warrants, stock options outstanding under the Company’s equity incentive plans, unvested RSUs, and potential awards granted pursuant to the ESPP, each calculated using the treasury stock method; and shares issuable upon conversion of the senior convertible notes using the if-converted method. For warrants that are recorded as a liability in the accompanying condensed consolidated balance sheets, the calculation of diluted loss per share requires that, to the extent the average market price of the underlying shares for the reporting period exceeds the exercise price of the warrants and the presumed exercise of the warrants is dilutive to loss per share for the period, an adjustment is made to net loss used in the calculation to remove the change in fair value of the warrants from the numerator for the period. Likewise, an adjustment to the denominator is required to reflect the related dilutive shares, if any, under the treasury stock method. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which modifies the measurement and recognition of credit losses for most financial assets and certain other instruments. The new standard requires the use of forward-looking expected credit loss models based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount, which may result in earlier recognition of credit losses under the new standard. The new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income (loss) rather than reducing the carrying amount under the prior, other-than-temporary-impairment model. The new standard must be adopted using the modified retrospective approach and was effective for the Company starting in the first quarter of 2020. The Company determined there was no cumulative-effect transition adjustment to the opening balance of accumulated deficit for recognition of additional credit losses upon adoption of this standard as of January 1, 2020 based on its outstanding accounts receivable, the composition and credit quality of its short-term investments, and current economic conditions as of that date. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement , which adds and modifies certain disclosure requirements for fair value measurements. Under the new guidance, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, or valuation processes for Level 3 fair value measurements. However, public companies will be required to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and related changes in unrealized gains and losses included in other comprehensive income. The updated guidance was effective for the Company starting in the first quarter of 2020. As a result, the Company modified certain fair value measurement disclosures primarily related to its Level 3 liabilities (see Note 5, “Fair Value Measurements”). In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes , which is intended to simplify various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. ASU 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, and early adoption is permitted. The Company early adopted the new guidance in the second quarter of 2020. As a result, the Company recognized, on a prospective basis, $13,000 of income tax expense in the second quarter of 2020 upon the reversal of tax benefits recorded in the first quarter of 2020 related to unrealized gains on short-term investments. In June 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which is intended to simplify the accounting for convertible instruments. This new guidance eliminates certain models that require separate accounting for embedded conversion features, and eliminates certain of the conditions for equity classification for contracts in an entity’s own equity. Accordingly, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The new guidance can be adopted through either a modified retrospective method of transition or a fully retrospective method of transition. ASU 2020-06 is effective for public business entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is in the process of determining the impact of the adoption of the standard on its consolidated financial statements as well as whether to early adopt the new standard. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Contract with Customer, Asset and Liability | Deferred revenue related to these performance obligations that are satisfied over time was included in the following consolidated balance sheet accounts in the amounts shown as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Deferred revenue $ 4,608 $ 3,465 Other long-term liabilities 8,499 5,656 Total $ 13,107 $ 9,121 |
Schedule of Reconciliation of Change in Product Warranty Liabilities | The following table provides a reconciliation of the change in product warranty liabilities from December 31, 2019 through September 30, 2020 (in thousands): Balance at December 31, 2019 $ 16,724 Provision for warranties issued during the period 14,588 Settlements made during the period (10,217) Decreases in warranty estimates (2,902) Balance at September 30, 2020 $ 18,193 As of September 30, 2020 and December 31, 2019, total product warranty reserves of $18.2 million and $16.7 million, respectively, were included in the following consolidated balance sheet accounts (in thousands): September 30, 2020 December 31, 2019 Other current liabilities $ 6,964 $ 4,707 Other long-term liabilities 11,229 12,017 Total warranty reserve $ 18,193 $ 16,724 |
Schedule of Anti-Dilutive Securities | Potentially dilutive securities outstanding and not included in the calculation of diluted net loss per share (because inclusion would be anti-dilutive) are as follows (in thousands, in common stock equivalent shares): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Warrants to purchase common stock 383 293 383 710 Options to purchase common stock 5,548 6,234 5,128 5,868 Unvested restricted stock units 134 N/A 61 N/A Awards granted under the ESPP 42 134 21 45 Convertible senior notes (if-converted) 2,554 N/A 1,286 N/A 8,661 6,661 6,879 6,623 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Estimated Fair Value of Short-Term Investments | The following represents a summary of the estimated fair value of short-term investments as of September 30, 2020 and December 31, 2019 (in thousands): At September 30, 2020 Maturity Amortized Gross Unrealized Gross Unrealized Estimated Available-for-sale securities: Commercial paper Less than 1 $ 94,076 $ 9 $ (1) $ 94,084 U.S. Government-sponsored enterprise Less than 2 32,157 23 (1) 32,179 U.S. Treasury securities Less than 1 105,779 36 — 105,815 Corporate debt securities Less than 2 102,862 107 (6) 102,963 Total $ 334,874 $ 175 $ (8) $ 335,041 At December 31, 2019 Maturity Amortized Gross Unrealized Gross Unrealized Estimated Available-for-sale securities: Commercial paper Less than 1 $ 24,147 $ 10 $ — $ 24,157 U.S. Government-sponsored enterprise Less than 2 33,073 26 — 33,099 U.S. Treasury securities Less than 2 17,963 17 (1) 17,979 Corporate debt securities Less than 2 50,011 42 (5) 50,048 Total $ 125,194 $ 95 $ (6) $ 125,283 |
Accounts Receivable and Inven_2
Accounts Receivable and Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounts Receivable And Inventories Disclosure [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consisted of the following (in thousands): September 30, December 31, 2020 2019 Accounts receivable $ 55,568 $ 49,889 Less: allowance for credit losses (3,464) (3,304) Accounts receivable, net $ 52,104 $ 46,585 |
Schedule of Accounts Receivable, Allowance for Credit Loss | The following table provides a reconciliation of the change in the estimated allowance for expected accounts receivable credit losses for the three and nine month periods ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Balance at beginning of the period $ 3,139 $ 2,194 $ 3,304 $ 1,837 Provision for expected credit losses 653 671 2,181 1,468 Write-offs and adjustments, net of recoveries (328) (173) (2,021) (613) Balance at end of the period $ 3,464 $ 2,692 $ 3,464 $ 2,692 |
Schedule of Inventories | Inventories consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Raw materials $ 36,111 $ 20,699 Work-in-process 14,316 16,532 Finished goods 20,217 11,842 Total Inventories $ 70,644 $ 49,073 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands): Fair Value Measurements at September 30, 2020 (Level 1) (Level 2) (Level 3) Assets Cash equivalents (1) $ 127,732 $ 127,732 $ — $ — Commercial paper 94,084 — 94,084 — U.S. Government-sponsored enterprise 32,179 — 32,179 — U.S. Treasury securities 105,815 105,815 — — Corporate debt securities 102,963 — 102,963 — Total assets $ 462,773 $ 233,547 $ 229,226 $ — Liabilities Common stock warrants $ 17,404 $ — $ — $ 17,404 Total liabilities $ 17,404 $ — $ — $ 17,404 Fair Value Measurements at December 31, 2019 (Level 1) (Level 2) (Level 3) Assets Cash equivalents (1) $ 33,844 $ 33,844 $ — $ — Commercial paper 24,157 — 24,157 — U.S. Government-sponsored enterprise 33,099 — 33,099 — U.S. Treasury securities 17,979 17,979 — — Corporate debt securities 50,048 — 50,048 — Total assets $ 159,127 $ 51,823 $ 107,304 $ — Liabilities Common stock warrants $ 23,509 $ — $ — $ 23,509 Total liabilities $ 23,509 $ — $ — $ 23,509 (1) Generally, cash equivalents include money market funds and investments with a maturity of three months or less from the date of purchase. |
Schedule of Assumptions Used to Estimate Fair Values of Common Stock Warrants | The assumptions used to estimate the fair values of the outstanding Series A warrants at September 30, 2020 and December 31, 2019 are presented below: September 30, 2020 December 31, 2019 Risk-free interest rate 0.1 % 1.6 % Expected dividend yield 0.0 % 0.0 % Expected volatility 64.1 % 77.2 % Expected term (in years) 2.0 2.8 |
Schedule of Changes in Fair Value of Total Level 3 Financial Assets | The following table presents a summary of changes in the fair value of the Company’s Level 3 financial liabilities for the nine months ended September 30, 2020 and 2019: Nine Months Ended September 30, 2020 2019 Balance at beginning of the period $ 23,509 $ 17,926 Loss recognized from the change in fair value of common stock warrants 19,906 10,849 Decrease in fair value from warrants exercised during the period (26,011) (5,492) Balance at end of the period $ 17,404 $ 23,283 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Lease Cost | The Company’s lease cost recorded in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Operating lease cost $ 1,914 $ 1,372 $ 5,569 $ 3,208 Short-term lease cost 63 39 198 84 Total lease cost $ 1,977 $ 1,411 $ 5,767 $ 3,292 The weighted-average remaining lease term and weighted-average discount rate for operating leases were as follows: September 30, December 31, Weighted-average remaining lease term (in years) 3.9 3.6 Weighted-average discount rate used to determine operating lease liabilities 5.9 % 6.6 % |
Schedule of Future Minimum Payments Under Non-cancellable Operating Leases | Maturities of operating lease liabilities at September 30, 2020 were as follows (in thousands): Years Ending December 31, 2020 (remaining) $ 2,314 2021 9,421 2022 8,710 2023 4,386 2024 1,881 Thereafter 3,975 Total undiscounted lease payments 30,687 Less: amount representing interest (3,429) Present value of operating lease liabilities 27,258 Less: current portion of operating lease liabilities (9,365) Operating lease liabilities - long-term $ 17,893 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes | The Notes consisted of the following (in thousands): As of Liability: Principal $ 287,500 Unamortized debt discount and debt issuance costs (88,380) Net carrying amount $ 199,120 Carrying amount of the equity component $ 85,803 |
Schedule of Interest Expense Recognized | The following table details interest expense recognized related to the Notes for the three and nine months ended September 30, 2020 (in thousands): Three Months Ended Nine Months Ended Contractual interest expense $ 1,078 $ 1,797 Amortization of debt issuance costs 244 403 Amortization of debt discount 3,533 5,830 Total interest expense $ 4,855 $ 8,030 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Shares of Common Stock Reserved for Future Issuance | The following shares of the Company’s common stock were reserved for future issuance as of September 30, 2020 (in thousands): Shares underlying outstanding warrants 383 Shares underlying outstanding stock options 5,866 Shares underlying unvested restricted stock units 135 Shares authorized for future equity award grants 2,117 Shares authorized for issuance pursuant to awards granted under the ESPP 1,462 9,963 |
Schedule of Stockholders' Equity Common Stock Warrants | Warrants outstanding to purchase shares of the Company's common stock as of September 30, 2020 were as follows: Issue Date Exercise Price Per Share Warrants Outstanding Expiration Date October 2017 $3.50 158,200 October 2022 March 2017 $23.50 193,788 March 2027 August 2011 - August 2012 $73.73 31,166 August 2021 - August 2022 383,154 |
Schedule of Assumptions Used in Black-Scholes Option-Pricing Model | The assumptions used in the Black-Scholes option-pricing model are as follows: Stock Options Three Months Ended Nine Months Ended 2020 2019 2020 2019 Weighted average grant date fair value (per share) $67.64 $38.74 $52.83 $39.08 Risk-free interest rate 0.4 % 1.7 % 0.6 % 2.1 % Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % Expected volatility 75.3 % 71.8 % 74.5 % 71.8 % Expected term (in years) 6.1 6.1 6.1 6.0 ESPP Nine Months Ended 2020 2019 Weighted average grant date fair value (per share) $36.18 $33.49 Risk-free interest rate 0.2 % 2.3 % Expected dividend yield 0.0 % 0.0 % Expected volatility 65.7 % 75.9 % Expected term (in years) 1.3 1.3 |
Schedule for Allocation of Stock-Based Compensation Expense | The following table summarizes the allocation of stock-based compensation expense included in the consolidated statement of operations (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Cost of sales $ 2,138 $ 1,751 $ 6,464 $ 4,178 Selling, general & administrative 8,866 13,110 32,077 29,060 Research and development 1,833 2,369 6,582 6,148 Total $ 12,837 $ 17,230 $ 45,123 $ 39,386 |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)numberOfPumps | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)numberOfPumps | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Organization And Basis Of Presentation [Line Items] | |||||
Cash and cash equivalents and short-term investments | $ 464,500 | $ 464,500 | |||
Accumulated deficit | 676,210 | 676,210 | $ 624,828 | ||
Net loss | $ 9,408 | $ 2,901 | $ 51,382 | $ 27,405 | |
UNITED STATES | |||||
Organization And Basis Of Presentation [Line Items] | |||||
Number of insulin pumps | numberOfPumps | 7 | 7 | |||
Non-US | |||||
Organization And Basis Of Presentation [Line Items] | |||||
Number of insulin pumps | numberOfPumps | 3 | 3 | |||
Insulin Pump | Minimum | |||||
Organization And Basis Of Presentation [Line Items] | |||||
Expected life span term | 4 years |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($)shares | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of operating segments | segment | 1 | ||||||
Operating lease, liability | $ 27,258 | $ 27,258 | |||||
Operating lease right-of-use assets | 21,325 | $ 21,325 | $ 15,561 | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201912Member | us-gaap:AccountingStandardsUpdate201601Member | |||||
Offered period for sales return | 30 days | ||||||
Allowance for product returns | 600 | $ 600 | 400 | ||||
Warranty period offered | 4 years | ||||||
Warranty reserve | 18,193 | $ 18,193 | $ 16,724 | ||||
Increase in loss used for dilutive calculation | $ 2,300 | ||||||
Increase in denominator shares (in shares) | shares | 394,433 | ||||||
Income tax expense | 39 | $ 72 | $ (1,938) | $ 72 | |||
Complementary products | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Warranty period offered | 4 years | ||||||
Tandem Pump | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Warranty period offered | 4 years | ||||||
Slim cartridges and infusion sets | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Warranty period offered | 6 months | ||||||
Technology-Based Intangible Assets | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Estimated useful life (in years) | 5 years | ||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Operating lease, liability | $ 12,400 | ||||||
Operating lease right-of-use assets | 12,400 | ||||||
Deferred rent—long-term | 3,800 | ||||||
Income tax expense | $ 13 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Other Current Liabilities | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Deferred rent, current | $ 1,000 | ||||||
Convertible senior notes | Level 2 | Convertible debt | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Convertible senior notes, fair value | $ 367,200 | $ 367,200 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Deferred Revenue Related to Performance Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 5,210 | $ 3,869 |
Transferred over Time | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | 4,608 | 3,465 |
Other long-term liabilities | 8,499 | 5,656 |
Total | $ 13,107 | $ 9,121 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Reconciliation of Change in Product Warranty Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Beginning balance | $ 16,724 | ||
Provision for warranties issued during the period | 14,588 | ||
Settlements made during the period | (10,217) | ||
Decreases in warranty estimates | (2,902) | ||
Ending balance | 18,193 | ||
Other current liabilities | $ 6,964 | $ 4,707 | |
Other long-term liabilities | 11,229 | 12,017 | |
Total warranty reserve | $ 18,193 | $ 18,193 | $ 16,724 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Anti-Dilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 8,661 | 6,661 | 6,879 | 6,623 |
Awards granted under the ESPP | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 42 | 134 | 21 | 45 |
Warrants to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 383 | 293 | 383 | 710 |
Options to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 5,548 | 6,234 | 5,128 | 5,868 |
Unvested restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 134 | 61 | ||
Convertible senior notes (if-converted) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 2,554 | 1,286 |
Short-Term Investments - Summar
Short-Term Investments - Summary of Estimated Fair Value of Short-Term Investments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Cash Cash Equivalents And Short Term Investments [Line Items] | ||
Amortized Cost | $ 334,874 | $ 125,194 |
Gross Unrealized Gain | 175 | 95 |
Gross Unrealized Loss | (8) | (6) |
Estimated Fair Value | 335,041 | 125,283 |
Commercial paper | ||
Cash Cash Equivalents And Short Term Investments [Line Items] | ||
Amortized Cost | 94,076 | 24,147 |
Gross Unrealized Gain | 9 | 10 |
Gross Unrealized Loss | (1) | 0 |
Estimated Fair Value | $ 94,084 | $ 24,157 |
Commercial paper | Maximum | ||
Cash Cash Equivalents And Short Term Investments [Line Items] | ||
Available-for-sale securities, maturity (in years) | 1 year | 1 year |
U.S. Government-sponsored enterprise | ||
Cash Cash Equivalents And Short Term Investments [Line Items] | ||
Amortized Cost | $ 32,157 | $ 33,073 |
Gross Unrealized Gain | 23 | 26 |
Gross Unrealized Loss | (1) | 0 |
Estimated Fair Value | $ 32,179 | $ 33,099 |
U.S. Government-sponsored enterprise | Maximum | ||
Cash Cash Equivalents And Short Term Investments [Line Items] | ||
Available-for-sale securities, maturity (in years) | 2 years | 2 years |
U.S. Treasury securities | ||
Cash Cash Equivalents And Short Term Investments [Line Items] | ||
Amortized Cost | $ 105,779 | $ 17,963 |
Gross Unrealized Gain | 36 | 17 |
Gross Unrealized Loss | 0 | (1) |
Estimated Fair Value | $ 105,815 | $ 17,979 |
U.S. Treasury securities | Maximum | ||
Cash Cash Equivalents And Short Term Investments [Line Items] | ||
Available-for-sale securities, maturity (in years) | 1 year | 2 years |
Corporate debt securities | ||
Cash Cash Equivalents And Short Term Investments [Line Items] | ||
Amortized Cost | $ 102,862 | $ 50,011 |
Gross Unrealized Gain | 107 | 42 |
Gross Unrealized Loss | (6) | (5) |
Estimated Fair Value | $ 102,963 | $ 50,048 |
Corporate debt securities | Maximum | ||
Cash Cash Equivalents And Short Term Investments [Line Items] | ||
Available-for-sale securities, maturity (in years) | 2 years | 2 years |
Accounts Receivable and Inven_3
Accounts Receivable and Inventories - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts Receivable And Inventories Disclosure [Abstract] | ||||||
Accounts receivable | $ 55,568 | $ 49,889 | ||||
Less: allowance for credit losses | (3,464) | $ (3,139) | (3,304) | $ (2,692) | $ (2,194) | $ (1,837) |
Accounts receivable, net | $ 52,104 | $ 46,585 |
Accounts Receivable and Inven_4
Accounts Receivable and Inventories - Allowance For Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of the period | $ 3,139 | $ 2,194 | $ 3,304 | $ 1,837 |
Provision for expected credit losses | 653 | 671 | 2,181 | 1,468 |
Write-offs and adjustments, net of recoveries | (328) | (173) | (2,021) | (613) |
Balance at end of the period | $ 3,464 | $ 2,692 | $ 3,464 | $ 2,692 |
Accounts Receivable and Inven_5
Accounts Receivable and Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts Receivable And Inventories Disclosure [Abstract] | ||
Raw materials | $ 36,111 | $ 20,699 |
Work-in-process | 14,316 | 16,532 |
Finished goods | 20,217 | 11,842 |
Total Inventories | $ 70,644 | $ 49,073 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | $ 335,041 | $ 125,283 |
Fair Value, Measurements, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 462,773 | 159,127 |
Total liabilities | 17,404 | 23,509 |
Fair Value, Measurements, Recurring | (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 233,547 | 51,823 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 229,226 | 107,304 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 17,404 | 23,509 |
Fair Value, Measurements, Recurring | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 127,732 | 33,844 |
Fair Value, Measurements, Recurring | Cash equivalents | (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 127,732 | 33,844 |
Fair Value, Measurements, Recurring | Cash equivalents | (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Cash equivalents | (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 94,084 | 24,157 |
Fair Value, Measurements, Recurring | Commercial paper | (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Commercial paper | (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 94,084 | 24,157 |
Fair Value, Measurements, Recurring | Commercial paper | (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored enterprise | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 32,179 | 33,099 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored enterprise | (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored enterprise | (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 32,179 | 33,099 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored enterprise | (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 105,815 | 17,979 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 105,815 | 17,979 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 102,963 | 50,048 |
Fair Value, Measurements, Recurring | Corporate debt securities | (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate debt securities | (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 102,963 | 50,048 |
Fair Value, Measurements, Recurring | Corporate debt securities | (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Common stock warrants | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Common stock warrants | 17,404 | 23,509 |
Fair Value, Measurements, Recurring | Common stock warrants | (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Common stock warrants | 0 | 0 |
Fair Value, Measurements, Recurring | Common stock warrants | (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Common stock warrants | 0 | 0 |
Fair Value, Measurements, Recurring | Common stock warrants | (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Common stock warrants | $ 17,404 | $ 23,509 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis Footnote (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Maximum | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Cash equivalents maturity term | 3 months |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Oct. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Outstanding warrants (in shares) | 383,154 | ||
Loss recognized from change in fair value of common stock warrants | $ 19,906 | $ 10,849 | |
Series A warrants | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Warrants issue to purchase common stock (in shares) | 259,115 | 93,470 | |
Warrants exercise price (usd per share) | $ 3.50 | ||
Warrants initial value | $ 5,200 | ||
Outstanding warrants (in shares) | 158,200 | 417,315 | |
Loss recognized from change in fair value of common stock warrants | $ 8,500 | $ 8,600 | |
Series A warrants | Secondary Public Offering | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Warrants issue to purchase common stock (in shares) | 4,630,000 | ||
Warrants exercise price (usd per share) | $ 3.50 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Assumptions Used to Estimate Fair Values of Common Stock Warrants (Details) - Series A warrants | Sep. 30, 2020 | Dec. 31, 2019 |
Risk-free interest rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assumptions used to estimate fair value of common stock warrants | 0.001 | 0.016 |
Expected dividend yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assumptions used to estimate fair value of common stock warrants | 0 | 0 |
Expected volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assumptions used to estimate fair value of common stock warrants | 0.641 | 0.772 |
Expected Term | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected term (in years) | 2 years | 2 years 9 months 18 days |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Total Level 3 Financial Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | ||
Balance at beginning of the period | $ 23,509 | $ 17,926 |
Loss recognized from the change in fair value of common stock warrants | 19,906 | 10,849 |
Decrease in fair value from warrants exercised during the period | (26,011) | (5,492) |
Balance at end of the period | $ 17,404 | $ 23,283 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 9 Months Ended | |||||||||
Sep. 30, 2020USD ($)ft² | Sep. 30, 2019USD ($) | Mar. 31, 2020USD ($) | Jan. 31, 2020ft² | Dec. 31, 2019USD ($) | Nov. 30, 2019ft²numberOfExtensions | Jun. 30, 2019USD ($) | May 31, 2019ft²numberOfExtensions | Mar. 31, 2019USD ($)ft² | Jan. 31, 2019ft² | |
Lessee, Lease, Description [Line Items] | ||||||||||
Operating lease, liability | $ 27,258 | |||||||||
Operating lease right-of-use assets | 21,325 | $ 15,561 | ||||||||
Operating lease, payments | $ 5,900 | $ 3,100 | ||||||||
10935 Vista Sorrento Parkway, San Diego, California | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Area of office space leased | ft² | 33,681 | 25,332 | ||||||||
Operating lease, number of options to extend | numberOfExtensions | 1 | |||||||||
Operating lease, liability | $ 3,100 | |||||||||
Operating lease right-of-use assets | $ 3,100 | |||||||||
Marindustry place lease | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Area of office space leased | ft² | 40,490 | |||||||||
Operating lease, liability | $ 3,400 | |||||||||
Operating lease right-of-use assets | $ 3,400 | |||||||||
Shoreline Drive, Boise, Idaho | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Area of office space leased | ft² | 94,562 | |||||||||
Operating lease, number of options to extend | numberOfExtensions | 1 | |||||||||
Operating lease extension period | 3 years | |||||||||
Operating lease, liability | $ 6,500 | |||||||||
Operating lease right-of-use assets | 6,500 | |||||||||
High Bluff Drive, San Diego, California | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Area of office space leased | ft² | 30,703 | |||||||||
Operating lease, liability | 2,300 | |||||||||
Operating lease right-of-use assets | $ 2,300 | |||||||||
Roselle Street, San Diego, California | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Area of office space leased | ft² | 77,000 | |||||||||
Operating lease, liability | $ 2,200 | |||||||||
Operating lease right-of-use assets | $ 2,200 | |||||||||
Vista Sorrento Original Lease | 10935 Vista Sorrento Parkway, San Diego, California | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Operating lease, liability | $ 4,700 | |||||||||
Operating lease right-of-use assets | $ 4,700 | |||||||||
Minimum | Marindustry place lease | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Operating lease extension period | 3 years | |||||||||
Maximum | 10935 Vista Sorrento Parkway, San Diego, California | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Operating lease extension period | 4 years | |||||||||
Maximum | Marindustry place lease | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Operating lease extension period | 5 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost, Lease Term Discount Rate ,Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
Operating lease cost | $ 1,914 | $ 1,372 | $ 5,569 | $ 3,208 | |
Short-term lease cost | 63 | 39 | 198 | 84 | |
Total lease cost | $ 1,977 | $ 1,411 | $ 5,767 | $ 3,292 | |
Weighted-average remaining lease term (in years) | 3 years 10 months 24 days | 3 years 10 months 24 days | 3 years 7 months 6 days | ||
Weighted-average discount rate used to determine operating lease liabilities | 5.90% | 5.90% | 6.60% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments Under Non-cancellable Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 (remaining) | $ 2,314 | |
2021 | 9,421 | |
2022 | 8,710 | |
2023 | 4,386 | |
2024 | 1,881 | |
Thereafter | 3,975 | |
Total undiscounted lease payments | 30,687 | |
Less: amount representing interest | (3,429) | |
Present value of operating lease liabilities | 27,258 | |
Less: current portion of operating lease liabilities | (9,365) | $ (6,320) |
Operating lease liabilities - long-term | $ 17,893 | $ 14,063 |
Convertible Senior Notes - Narr
Convertible Senior Notes - Narrative (Details) | 1 Months Ended | 9 Months Ended | |
May 31, 2020USD ($)days$ / shares | Sep. 30, 2020USD ($)$ / shares | May 12, 2020$ / shares | |
Debt Instrument [Line Items] | |||
Carrying amount of the equity component | $ 85,803,000 | ||
Capped call transactions net cost | 34,069,000 | ||
Convertible senior notes | Convertible debt | |||
Debt Instrument [Line Items] | |||
Principal | $ 250,000,000 | $ 287,500,000 | |
Interest rate | 1.50% | ||
Debt instrument, additional principal amount | $ 37,500,000 | ||
Net proceeds from issuance of convertible notes | $ 244,600,000 | ||
Debt instrument, convertible, conversion ratio | 0.0088836 | ||
Conversion price (usd per share) | $ / shares | $ 112.57 | ||
Debt instrument, convertible, threshold trading days | days | 20 | ||
Debt instrument, convertible, threshold trading days consecutive trading days | days | 30 | ||
Redemption price percentage | 100.00% | ||
Carrying amount of the equity component | $ 85,800,000 | ||
Effective interest rate | 9.90% | ||
Debt issuance costs related to equity component | $ 2,700,000 | ||
Debt issuance costs related to liability component | 6,100,000 | ||
Discount amortization period | 4 years 7 months 6 days | ||
Capped call transactions net cost | $ 34,100,000 | ||
Debt instrument, initial cap price per share (usd per share) | $ / shares | $ 173.18 | ||
Sale price (usd per share) | $ / shares | $ 86.59 | ||
Convertible senior notes | Convertible debt | Conversion Instance, 130% | |||
Debt Instrument [Line Items] | |||
Debt instrument, convertible, threshold trading days | days | 20 | ||
Debt instrument, convertible, threshold trading days consecutive trading days | days | 30 | ||
Convertible senior notes | Convertible debt | Conversion Instance, 98% | |||
Debt Instrument [Line Items] | |||
Debt instrument, convertible, threshold trading days | days | 5 | ||
Debt instrument, convertible, threshold trading days consecutive trading days | days | 5 | ||
Convertible senior notes | Convertible debt | Minimum | |||
Debt Instrument [Line Items] | |||
Conversion price (usd per share) | $ / shares | $ 112.57 | ||
Debt instrument, convertible, threshold percentage of stock price trigger | 130.00% | ||
Convertible senior notes | Convertible debt | Minimum | Conversion Instance, 130% | |||
Debt Instrument [Line Items] | |||
Debt instrument, convertible, threshold percentage of stock price trigger | 130.00% | ||
Convertible senior notes | Convertible debt | Minimum | Conversion Instance, 98% | |||
Debt Instrument [Line Items] | |||
Debt instrument, convertible, threshold percentage of stock price trigger | 98.00% | ||
Convertible senior notes | Convertible debt | Maximum | |||
Debt Instrument [Line Items] | |||
Conversion price (usd per share) | $ / shares | $ 173.18 |
Convertible Senior Notes - Conv
Convertible Senior Notes - Convertible Notes (Details) - USD ($) | Sep. 30, 2020 | May 31, 2020 |
Debt Instrument [Line Items] | ||
Carrying amount of the equity component | $ 85,803,000 | |
Convertible debt | Convertible senior notes | ||
Debt Instrument [Line Items] | ||
Principal | 287,500,000 | $ 250,000,000 |
Unamortized debt discount and debt issuance costs | (88,380,000) | |
Net carrying amount | $ 199,120,000 | |
Carrying amount of the equity component | $ 85,800,000 |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest Expense Recognized (Details) - Convertible senior notes - Convertible senior notes - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 1,078 | $ 1,797 |
Amortization of debt issuance costs | 244 | 403 |
Amortization of debt discount | 3,533 | 5,830 |
Total interest expense | $ 4,855 | $ 8,030 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Shares of Common Stock Reserved for Future Issuance (Details) shares in Thousands | Sep. 30, 2020shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 9,963 |
Shares underlying outstanding warrants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 383 |
Shares underlying outstanding stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 5,866 |
Shares underlying unvested restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 135 |
Shares authorized for future equity award grants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 2,117 |
Shares authorized for issuance pursuant to awards granted under the ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 1,462 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Common Stock Warrants (Details) - $ / shares | Sep. 30, 2020 | Sep. 30, 2019 |
Class of Warrant or Right [Line Items] | ||
Outstanding warrants (in shares) | 383,154 | |
Common Stock Warrant Expiring October 2022 | ||
Class of Warrant or Right [Line Items] | ||
Warrants exercise price (usd per share) | $ 3.50 | |
Outstanding warrants (in shares) | 158,200 | 417,315 |
Common Stock Warrant Expiring March 2027 | ||
Class of Warrant or Right [Line Items] | ||
Warrants exercise price (usd per share) | $ 23.50 | |
Outstanding warrants (in shares) | 193,788 | |
Common Stock Warrant Expiring Between August 2021 and August 2022 | ||
Class of Warrant or Right [Line Items] | ||
Warrants exercise price (usd per share) | $ 73.73 | |
Outstanding warrants (in shares) | 31,166 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020shares | Sep. 30, 2019shares | Sep. 30, 2020USD ($)numberOfPurchasePeriodsshares | Sep. 30, 2019USD ($)shares | Dec. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding warrants (in shares) | 383,154 | 383,154 | |||
Total stock-based compensation expense capitalized as part of cost of inventory | $ | $ 0.7 | $ 1.3 | |||
ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Offering period | 2 years | ||||
Number of purchase periods | numberOfPurchasePeriods | 4 | ||||
Purchase period | six | ||||
Purchase of common stock under ESPP (in shares) | 229,320 | 168,165 | |||
Proceeds from stock plans | $ | $ 4.9 | $ 3 | |||
Options to purchase common stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock shares issued upon option exercises (in shares) | 1,072,499 | 439,646 | 2,198,986 | 1,213,428 | |
Options to purchase common stock | 2013 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 1,010,996 | 2,916,906 | |||
Options to purchase common stock | 2013 Plan | First anniversary | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 25.00% | ||||
Options to purchase common stock | 2013 Plan | Monthly vesting over following 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 75.00% | ||||
Vesting period | 3 years | ||||
Contingent stock options | 2013 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 1,644,715 | ||||
Restricted Stock Units (RSU) | 2013 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 2,846 | 134,694 | |||
Restricted Stock Units (RSU) | 2013 Plan | First anniversary | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 25.00% | ||||
Restricted Stock Units (RSU) | 2013 Plan | Monthly vesting over following 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 75.00% | ||||
Vesting period | 3 years | ||||
Restricted Stock Units (RSU) | 2013 Plan | Vest annually over one to three years | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 17,857 | ||||
Restricted Stock Units (RSU) | 2013 Plan | Vest annually over one to three years | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Restricted Stock Units (RSU) | 2013 Plan | Vest annually over one to three years | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Common stock warrants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding warrants (in shares) | 1 | 1 | |||
Common stock issued upon exercise of warrants (in shares) | 257,000 | 200 | 291,894 | 93,470 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Assumptions Used in Black-Scholes Option-Pricing Model (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value (in usd per share) | $ 67.64 | $ 38.74 | $ 52.83 | $ 39.08 |
Risk-free interest rate | 0.40% | 1.70% | 0.60% | 2.10% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected volatility | 75.30% | 71.80% | 74.50% | 71.80% |
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value (in usd per share) | $ 36.18 | $ 33.49 | ||
Risk-free interest rate | 0.20% | 2.30% | ||
Expected dividend yield | 0.00% | 0.00% | ||
Expected volatility | 65.70% | 75.90% | ||
Expected term (in years) | 1 year 3 months 18 days | 1 year 3 months 18 days |
Stockholders' Equity - Summary
Stockholders' Equity - Summary for Allocation of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 12,837 | $ 17,230 | $ 45,123 | $ 39,386 |
Cost of sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | 2,138 | 1,751 | 6,464 | 4,178 |
Selling, general & administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | 8,866 | 13,110 | 32,077 | 29,060 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 1,833 | $ 2,369 | $ 6,582 | $ 6,148 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - legal_matter | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of legal proceedings, regulatory matters, or other, disputes or claims | 0 | 0 |