Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2015 | Nov. 02, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MBII | |
Entity Registrant Name | MARRONE BIO INNOVATIONS INC | |
Entity Central Index Key | 1,441,693 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 24,464,582 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 22,352 | $ 35,324 |
Restricted cash, current portion | 1,856 | 1,856 |
Accounts receivable | 2,170 | 1,787 |
Inventories, net | 11,775 | 12,644 |
Deferred cost of product revenues, including deferred cost of product revenues to related parties of $251 and $333 as of March 31, 2015 and December 31, 2014, respectively | 1,939 | 1,797 |
Prepaid expenses and other current assets | 1,008 | 1,315 |
Total current assets | 41,100 | 54,723 |
Property, plant and equipment, net | 20,072 | 20,166 |
Restricted cash, less current portion | 1,560 | 1,560 |
Other assets | 711 | 733 |
Total assets | 63,443 | 77,182 |
Current liabilities: | ||
Accounts payable | 4,060 | 5,841 |
Accrued liabilities | 5,646 | 6,321 |
Deferred revenue, current portion | 3,259 | 2,861 |
Deferred revenue from related parties | 461 | 660 |
Customer refund liabilities | 1,044 | 1,044 |
Capital lease obligations, current portion | 1,475 | 1,839 |
Debt, current portion | 12,704 | 12,636 |
Total current liabilities | 28,649 | 31,202 |
Deferred revenue, less current portion | 1,967 | 2,050 |
Capital lease obligations, less current portion | 57 | 185 |
Debt, less current portion | 9,566 | 9,667 |
Other liabilities | 797 | 847 |
Total liabilities | $ 41,036 | $ 43,951 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Common stock: $0.00001 par value; 250,000 shares authorized, 24,465 shares issued and outstanding as of March 31, 2015 and December 31, 2014 | $ 0 | $ 0 |
Additional paid in capital | 194,169 | 193,079 |
Accumulated deficit | (171,762) | (159,848) |
Total stockholders' equity | 22,407 | 33,231 |
Total liabilities and stockholders' equity | $ 63,443 | $ 77,182 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Deferred cost of product revenues to related parties | $ 251 | $ 333 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 24,465,000 | 24,465,000 |
Common stock, shares outstanding | 24,465,000 | 24,465,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues: | ||
Product | $ 1,774 | $ 2,054 |
License | 83 | 45 |
Related party | 199 | 605 |
Total revenues | 2,056 | 2,704 |
Cost of product revenues, including cost of product revenues to related parties of $82 and $161 for the three months ended March 31, 2015 and 2014, respectively | 1,998 | 1,793 |
Gross profit | 58 | 911 |
Operating Expenses: | ||
Research, development and patent | 3,422 | 4,297 |
Selling, general and administrative | 7,887 | 6,324 |
Total operating expenses | 11,309 | 10,621 |
Loss from operations | (11,251) | (9,710) |
Other income (expense): | ||
Interest income | 9 | 10 |
Interest expense | (669) | (606) |
Other expense, net | (3) | (9) |
Total other expense, net | (663) | (605) |
Loss before income taxes | (11,914) | (10,315) |
Income taxes | 0 | 0 |
Net loss | $ (11,914) | $ (10,315) |
Basic and diluted net loss per common share | $ (0.49) | $ (0.53) |
Weighted-average shares outstanding used in computing net loss per common share | 24,465 | 19,518 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | ||
Cost of product revenues to related parties | $ 82 | $ 161 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (11,914) | $ (10,315) |
Other comprehensive loss | 0 | 0 |
Comprehensive loss | $ (11,914) | $ (10,315) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities | ||
Net loss | $ (11,914) | $ (10,315) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 833 | 488 |
Loss on disposal of equipment | 4 | 0 |
Share-based compensation | 1,090 | 1,522 |
Non-cash interest expense | 133 | 265 |
Amortization of investment securities premiums/discounts, net | 0 | 9 |
Net changes in operating assets and liabilities: | ||
Accounts receivable | (383) | (1,460) |
Accounts receivable from related parties | 0 | (327) |
Inventories | 869 | (874) |
Deferred cost of product revenues | (142) | (46) |
Prepaid expenses and other assets | 277 | (298) |
Accounts payable | (1,638) | 2,737 |
Accrued and other liabilities | (605) | (1,548) |
Deferred revenue | 315 | 246 |
Deferred revenue from related parties | (199) | (281) |
Net cash used in operating activities | (11,360) | (9,882) |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (1,030) | (5,044) |
Sale of property and equipment | 7 | 0 |
Purchase of short-term investments | 0 | (49) |
Maturities of short-term investments | 0 | 11,053 |
Net cash provided by (used in) investing activities | (1,023) | 5,960 |
Cash flows from financing activities | ||
Repayment of debt | (97) | (67) |
Repayment of capital leases | (492) | (69) |
Proceeds from exercise of stock options | 0 | 851 |
Proceeds from exercise of common stock warrants | 0 | 50 |
Net cash provided by (used in) financing activities | (589) | 765 |
Net decrease in cash and cash equivalents | (12,972) | (3,157) |
Cash and cash equivalents, beginning of period | 35,324 | 24,455 |
Cash and cash equivalents, end of period | 22,352 | 21,298 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest, net of capitalized interest of $4 and $469 for the three months ended March 31, 2015 and 2014, respectively | 536 | 341 |
Supplemental disclosure of non-cash investing and financing activities | ||
Property, plant and equipment included in accounts payable and accrued liabilities | 132 | 2,040 |
Equipment acquired under capital leases | $ 0 | $ 453 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Statement of Cash Flows [Abstract] | ||
Cash paid for interest, net of capitalized interest | $ 4 | $ 469 |
Summary of Business, and Liquid
Summary of Business, and Liquidity | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Business, and Liquidity | 1. Summary of Business, and Liquidity Marrone Bio Innovations, Inc. (“Company”), formerly Marrone Organic Innovations, Inc., was incorporated under the laws of the State of Delaware on June 15, 2006, and is located in Davis, California. In July 2012, the Company formed a wholly-owned subsidiary, Marrone Michigan Manufacturing LLC (“MMM LLC”), which holds the assets of a manufacturing plant the Company purchased in July 2012. The Company makes bio-based pest management and plant health products. The Company targets the major markets that use conventional chemical pesticides, including certain agricultural and water markets where its bio-based products are used as alternatives for, or mixed with, conventional chemical pesticides. The Company also targets new markets for which there are no available conventional chemical pesticides, the use of conventional chemical pesticides may not be desirable or permissible because of health and environmental concerns (including organically certified crops) or because the development of pest resistance has reduced the efficacy of conventional chemical pesticides. The Company delivers EPA-approved and registered biopesticide products and other bio-based products that address the global demand for effective, safe and environmentally responsible products. The Company is an early stage company with a limited operating history and has a limited number of commercialized products. As of March 31, 2015, the Company had an accumulated deficit of $171,762,000, has incurred significant losses since inception and expects to continue to incur losses for the foreseeable future. Until the completion of the initial public offering (“IPO”) in August 2013, the Company had funded operations primarily with the net proceeds from private placements of convertible preferred stock, convertible notes, promissory notes and term loans, as well as with the proceeds from the sale of its products and payments under strategic collaboration agreements and government grants. The Company will need to generate significant revenue growth to achieve and maintain profitability. As of March 31, 2015, the Company had working capital of $12,451,000, including cash and cash equivalents of $22,352,000. In addition, as of March 31, 2015, the Company had debt totaling $22,270,000 for which the underlying debt agreements contain various financial and non-financial covenants, as well as certain material adverse change clauses. If the Company breaches any of the covenants contained within the debt agreements or if the material adverse change clauses are triggered, the entire unpaid principal and interest balance would be due and payable upon demand. The Company believes that currently available resources combined with the additional $40,000,000 in proceeds raised from the issuance of senior secured promissory notes in August 2015 (see Note 10) will be sufficient to fund the Company’s cash requirements through at least March 31, 2016. The Company participates in a heavily regulated and highly competitive crop protection industry and believes that adverse changes in any of the following areas could have a material effect on the Company’s future financial position, results of operations or cash flows: inability to obtain regulatory approvals, increased competition in the pesticide market, market acceptance of the Company’s products, weather and other seasonal factors beyond the Company’s control, litigation or claims against the Company related to intellectual property, patents, products or governmental regulation, and the Company’s ability to support increased growth. Although the Company recognizes that it will likely need to raise additional funds in the future, there can be no assurance that such efforts will be successful or that, in the event that they are successful, the terms and conditions of such financing will not be unfavorable. Any future equity financing may result in dilution to existing shareholders and any debt financing may include additional restrictive covenants. Any failure to obtain additional financing or not to achieve the revenue growth necessary to fund the Company with cash flows from operations will have a material adverse effect upon the Company and will likely result in a substantial reduction in the scope of the Company’s operations and impact the Company’s ability to achieve its planned business objectives. In addition, any future breach of covenants included in the Company’s debt agreements which could result in the lender demanding payment of the unpaid principal and interest balances will have a material adverse effect upon the Company and would likely require the Company to seek to renegotiate these debt arrangements with the lenders. If such negotiations are unsuccessful, the Company may be required to seek protection from creditors through bankruptcy proceedings. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying financial information as of March 31, 2015, and for the three months ended March 31, 2015 and 2014, has been prepared by the Company, without audit, in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such SEC rules and regulations and accounting principles applicable for interim periods. However, the Company believes that the disclosures are adequate to make the information presented not misleading. The information included in this Quarterly Report on Form 10-Q should be read in connection with the consolidated financial statements and accompanying notes included in the Company’s Annual Report filed on Form 10-K for the fiscal year ended December 31, 2014. In the opinion of management, the condensed consolidated financial statements as of March 31, 2015, and for the three months ended March 31, 2015 and 2014, reflect all adjustments, which are normal recurring adjustments, necessary to present a fair statement of financial position, results of operations, comprehensive loss and cash flows. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the operating results for the full fiscal year or any future periods. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. Cash and cash equivalents consists of cash on deposit, money market funds and certificates of deposit accounts with United States (“U.S.”) financial institutions. The Company is exposed to credit risk in the event of default by financial institutions to the extent that cash and cash equivalents balances with financial institutions are in excess of amounts that are insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses on these deposits. Restricted Cash The Company’s restricted cash consists of cash that the Company is contractually obligated to maintain on deposit at a bank in accordance with the promissory note entered into in June 2014. See Note 6 for further discussion. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, accounts receivable and debt. The Company deposits its cash and cash equivalents with high credit quality domestic financial institutions with locations in the U.S. Such deposits may exceed federal deposit insurance limits. The Company believes the financial risks associated with these financial instruments are minimal. The Company’s customer base is dispersed across many different geographic areas, and currently most customers are pest management distributors in the U.S. Generally, receivables are due up to 120 days from the invoice date and are considered past due after this date, although the Company may offer extended terms from time to time. For the three months ended March 31, 2015 and 2014, 2% and 17%, respectively, of the Company’s revenues were generated from international customers. The Company’s principal sources of revenues are its Regalia and Grandevo product lines. For the three months ended March 31, 2015 and 2014, these two product lines accounted for 97% and 86%, respectively, of the Company’s total revenues. Customers to which 10% or more of the Company’s total revenues are attributable for any one of the periods presented consist of the following: CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER (1) CUSTOMER (1) CUSTOMER F For the three months ended March 31, 2015 24 % 17 % 14 % 10 % * * 2014 6 % 25 % 14 % 10 % 12 % 11 % (1) Represents revenues from related parties. See Note 9 for further discussion. * Represents less than 1% of total revenues. Customers to which 10% or more of the Company’s outstanding accounts receivable are attributable as of either March 31, 2015 or December 31, 2014 consist of the following: CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER D CUSTOMER E March 31, 2015 35 % 22 % 10 % * * December 31, 2014 10 % 9 % 1 % 37 % 23 % * Represents less than 1% of outstanding accounts receivable. Concentrations of Supplier Dependence The active ingredient in the Company’s Regalia product line is derived from the giant knotweed plant, which the Company obtains from China. The Company’s single supplier acquires raw knotweed from numerous regional sources and performs an extraction process on this plant, creating a dried extract that is shipped to the Company’s manufacturing plant. A disruption at this supplier’s manufacturing site or a disruption in trade between the U.S. and China could negatively impact sales of Regalia. The Company currently uses one supplier and does not have a long-term supply contract with this supplier. Although the Company has identified additional sources of raw knotweed, there can be no assurance that the Company will continue to be able to obtain dried extract from China at a competitive price. Inventories Inventories are stated at the lower of cost or market value (net realizable value or replacement cost) and include the cost of material and external and internal labor and manufacturing costs. Cost is determined on the first-in, first-out basis. The Company provides for inventory reserves when conditions indicate that the selling price may be less than cost due to physical deterioration, obsolescence, changes in price levels or other factors. Additionally, the Company provides reserves for excess and slow-moving inventory on hand that is not expected to be sold to reduce the carrying amount of excess and slow-moving inventory to its estimated net realizable value. The reserves are based upon estimates about future demand from the Company’s customers and distributors and market conditions. Deferred Cost of Product Revenues Deferred cost of product revenues are stated at the lower of cost or net realizable value and include product sold where title has transferred but the criteria for revenue recognition have not been met. As of March 31, 2015 and December 31, 2014, the Company recorded deferred cost of product revenues of $1,939,000 and $1,797,000, respectively, including deferred cost of product revenues to related parties of $251,000 and $333,000, respectively. Revenue Recognition The Company recognizes revenues when persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. If contractual obligations, acceptance provisions or other contingencies exist which indicate that the price is not fixed or determinable, revenue is recognized after such obligations or provisions are fulfilled or expire. Product revenues consist of revenues generated from sales of the Company’s products to distributors and direct customers, net of rebates and cash discounts. For sales of products made to distributors, the Company recognizes revenue either on a sell-in or sell-through basis depending on the specific facts and circumstances of the transaction(s) with the distributor. Factors considered include, but are not limited to, whether the payment terms offered to the distributor are structured to correspond to when product is resold, the distributor history of adhering to the terms of its contractual arrangements with the Company, whether the Company has a pattern of granting concessions for the benefit of the distributor and whether there are other conditions that may indicate that the sale to the distributor is not substantive. In some cases, the Company recognizes distributor revenue as title and risk of loss passes, provided all other revenue recognition criteria have been satisfied (the “sell-in” method). For certain sales to certain distributors, the revenue recognition criteria for distributor sales are not satisfied at the time title and risk of loss passes to the distributor; specifically, in instances where “inventory protection” arrangements were offered to distributors that would permit these distributors to return to the Company certain unsold products, the Company considers the arrangement not to be fixed or determinable, and accordingly, revenue is deferred until products are resold to customers of the distributor (the “sell-through” method). As of March 31, 2015 and December 31, 2014, the Company recorded current deferred product revenues of $3,389,000 and $3,190,000, respectively, including current deferred product revenues from related parties of $461,000 and $660,000, respectively. The cost of product revenues associated with such deferral are also deferred and classified as deferred cost of product revenues in the condensed consolidated balance sheets. Cash received from customers related to delivered product that may not represent a true sale is classified as customer refund liabilities in the condensed consolidated balance sheets and the related cost of inventory remains in inventory in the condensed consolidated balance sheets until the product is returned or is resold to customers of the distributor and revenue is recognized. For the three months ended March 31, 2015 and 2014, 32% and 52%, respectively, of total revenues were recognized on a sell-through basis. From time to time, the Company offers certain product rebates to its distributors and growers, which are estimated and recorded as reductions to product revenues, and an accrued liability is recorded at the later of when the revenues are recorded or the rebate is being offered. The Company recognizes license revenues pursuant to strategic collaboration and distribution agreements under which the Company receives payments for the achievement of testing validation, regulatory progress and commercialization events. As these activities and payments are associated with exclusive rights that the Company provides in connection with strategic collaboration and distribution agreements over the term of the agreements, revenues related to the payments received are deferred and recognized over the term of the exclusive distribution period of the respective agreement. For the three months ended March 31, 2015, the Company received payments totaling $750,000 under these agreements. No payments were received under these agreements for the three months ended March 31, 2014. For the three months ended March 31, 2015 and 2014, the Company recognized $83,000 and $45,000, respectively, as license revenues, excluding related party revenues. The Company has a strategic collaboration and distribution agreement with Syngenta, an affiliate of a former 5% stockholder, Syngenta Ventures Pte. LTD (Syngenta Ventures). In connection with the Company’s secondary offering in June 2014, Syngenta Ventures sold 600,000 shares of the Company’s common stock, reducing its ownership percentage below 5%. Accordingly, revenue recognized under this agreement subsequent to June 2014 has not been included in related party revenues. For the three months ended March 31, 2014, the Company recognized $324,000 of related party revenues under this agreement prior to Syngenta Ventures reducing its ownership stake. As of March 31, 2015, the Company recorded current and non-current deferred revenues of $331,000 and $1,967,000, respectively, related to payments received under these agreements. As of December 31, 2014, the Company recorded current and non-current deferred revenues of $331,000 and $2,050,000, respectively, related to payments received under these agreements. Research, Development and Patent Expenses Research and development expenses include payroll-related expenses, field trial costs, toxicology costs, regulatory costs, consulting costs and lab costs. Patent expenses include legal costs relating to the patents and patent filing costs. These costs are expensed to operations as incurred. For the three months ended March 31, 2015 and 2014, research and development expenses totaled $3,115,000 and $4,000,000, respectively, and patent expenses totaled $307,000 and $297,000, respectively. Net Loss per Share Net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding for the period. The calculation of basic and diluted net loss per share is the same for all periods presented as the effect of the potential common stock equivalents, which consist of stock options and warrants to purchase common stock, are anti-dilutive due to the Company’s net loss position. Anti-dilutive common stock equivalents are excluded from diluted net loss per share. The anti-dilutive stock options that were not included in diluted net loss per share were 2,663,000 and 2,974,000 as of March 31, 2015 and 2014, respectively. The anti-dilutive warrants to purchase common stock that were not included in diluted net loss per share were 145,000 as of both March 31, 2015 and 2014. Recently Issued Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest—Imputation of Interest (Topic 835-30): Simplifying the Presentation of Debt Issuance Costs In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Accounting Standards Codification (“ASC”) 820, Fair Value Measurements ASC 820 requires that the valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 establishes a three tier value hierarchy, which prioritizes inputs that may be used to measure fair value as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. The following table presents the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014 (in thousands): MARCH 31, 2015 TOTAL LEVEL 1 LEVEL 2 LEVEL 3 Assets Money market funds $ 8,748 $ 8,748 $ — $ — DECEMBER 31, 2014 TOTAL LEVEL 1 LEVEL 2 LEVEL 3 Assets Money market funds $ 14,746 $ 14,746 $ — $ — The Company’s money market funds are held at registered investment companies and as of March 31, 2015 and December 31, 2014 were in active markets and, therefore, are measured based on the Level 1 valuation hierarchy. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories, net consist of the following (in thousands): MARCH 31, DECEMBER 31, Raw materials $ 5,717 $ 5,692 Work in progress 792 1,150 Finished goods 4,842 5,378 Finished goods held at customers 424 424 $ 11,775 $ 12,644 As of each of March 31, 2015 and December 31, 2014, the Company had $668,000 in reserves against its inventories. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 5. Accrued Liabilities Accrued liabilities consist of the following (in thousands): MARCH 31, DECEMBER 31, Accrued compensation $ 1,393 $ 1,348 Accrued expenses 3,995 4,771 Accrued warranty costs 258 202 $ 5,646 $ 6,321 The Company warrants the specifications and/or performance of its products through implied product warranties and has extended product warranties to qualifying customers on a contractual basis. The Company estimates the costs that may be incurred during the warranty period and records a liability in the amount of such costs at the time product is shipped. The Company’s estimate is based on historical experience and estimates of future warranty costs as a result of increasing usage of the Company’s products. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Changes in the Company’s accrued warranty costs during the period are as follows (in thousands): Balance as of December 31, 2014 $ 202 Warranties issued during the period 65 Settlements made during the period (9 ) Balance as of March 31, 2015 $ 258 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt Debt consists of the following (in thousands): MARCH 31, DECEMBER 31, Term Loan (“Term Loan”) bearing interest at 7.00% per annum, which is payable monthly through April 2016, collateralized by all of the Company’s inventories, chattel paper, accounts receivable, equipment and general intangibles (excluding certain financed equipment and intellectual property) pledged as collateral under the Term Loan, subordinated $ 150 $ 183 Secured promissory notes (“October 2012 and April 2013 Secured Promissory Notes”) bearing interest at 12.00% per annum, which are payable monthly through October 2015, collateralized by substantially all of the Company’s assets, net of unamortized debt discount as of March 31, 2015 and December 31, 2014 of $139 and $203, respectively 12,311 12,247 Secured promissory note (“June 2014 Secured Promissory Note”) bearing interest at prime plus 2% (5.25% as of March 31, 2015) per annum, which is payable monthly through June 2036, collateralized by all of the Company’s deposit accounts and MMM LLC’s inventories, chattel paper, accounts, equipment and general intangibles 9,809 9,873 Debt 22,270 22,303 Less current portion (12,704 ) (12,636 ) $ 9,566 $ 9,667 The fair value of the Company’s outstanding debt obligations as of March 31, 2015 and December 31, 2014 was $22,466,000 and $22,587,000, respectively, which was estimated based on a discounted cash flow model using an estimated market rate of interest of 11.25% for the fixed rate debt and 5.25% for the variable rate debt, and is classified as Level 3 within the fair value hierarchy. Term Loan In March 2009, October 2010 and October 2011, the Company and Five Star Bank agreed to modify the terms of its existing revolving line of credit (“Revolver”). Under the modified terms of the Revolver, the Company’s borrowings under the Revolver were limited to 75% of qualifying accounts receivable with a maximum borrowing limit of $500,000. In March 2012, the Company entered into a change in terms agreement with the bank under which the existing Revolver was replaced by the Term Loan in the amount of $500,000 with a rate of 7% per annum, maturing April 1, 2016. The Company’s inventories, chattel paper, accounts receivable, equipment and general intangibles (excluding certain financed equipment and intellectual property) have been pledged as collateral under the Term Loan. The Term Loan provides for various events of default including breach of any term, obligation, covenant or condition under any other agreement between the Company and Five Star Bank. As of March 31, 2015, the Company was in breach of its covenants under the Term Loan as the Company was in breach of its covenants under its June 2014 Secured Promissory Note. However, this breach was cured in November 2015 as a result of the Company obtaining a waiver of certain of the Company’s covenants with respect to the June 2014 Secured Promissory Note as discussed below. The Term Loan was fully paid off in August 2015. Secured Promissory Notes On October 2, 2012, the Company borrowed $7,500,000 pursuant to senior notes (“October 2012 Secured Promissory Notes”) with a group of lenders. The October 2012 Secured Promissory Notes have an initial term of three years and can be extended for an additional two years in one year increments at the option of the Company. During the initial three-year term, the October 2012 Secured Promissory Notes bear interest at 12% per annum. If the term of the October 2012 Secured Promissory Notes is extended an additional year, the interest rate is 13% during the fourth year. If the term of the October 2012 Secured Promissory Notes is extended for an additional two years, the interest rate is 14% during the fifth year. Interest on the October 2012 Secured Promissory Notes is payable monthly through the initial maturity date of the loan, which is October 2, 2015, or through any extension period. The principal and all unpaid interest are due on the maturity date, as may be extended. As part of the terms of the October 2012 Secured Promissory Notes, the Company is required to pay a fee of 5% of the funded principal amount to the agent that facilitated the borrowing and provides management of the relationship with the group of lenders (“Agent Fee”). This Agent Fee is payable within 30 days after all interest and principal have been paid. For each year the Company extends the maturity date of the October 2012 Secured Promissory Notes beyond the initial term, the agent will receive an additional 1% fee based on the funded principal amount. The present value of the unpaid Agent Fee, based on 5% of the funded principal amount, or $261,000, as of the closing date of the October 2012 Secured Promissory Notes was recorded as both deferred financing costs as a component of current and non-current other assets and non-current other liabilities. The amortization of the deferred financing costs and the accretion of the Agent Fee are recorded to interest expense over the term of the arrangement. As of March 31, 2015, $586,000 of the Agent Fee, including the amounts relating to the additional funds received from the issuance of the April 2013 Secured Promissory Notes discussed below, was recorded under accrued liabilities. In addition, the Company incurred an additional $66,000 in financing-related costs, primarily legal fees. These costs were recorded as deferred financing costs as a component of current and non-current other assets and are being amortized to interest expense over the term of the arrangement. The October 2012 Secured Promissory Notes are secured by the Company’s ownership interest in MMM LLC, a security interest in the assets of the Company’s manufacturing plant and all of the Company’s other assets, subject to certain permitted liens. This security interest was subordinate to the security interest held by the holder of a previously outstanding promissory note issued in April 2012 and repaid in January 2013 (“April 2012 Note”), which also had a security interest in MMM LLC. The Company also issued warrants (“Common Stock Warrants”) to the group of lenders to purchase a number of shares of common stock equal to 15% of the funded principal amount of the October 2012 Secured Promissory Notes divided by 70% of the value of common stock in a sale of the Company or a Qualified IPO, with such Common Stock Warrants having an exercise price of 70% of the value of common stock in a sale of the Company or a Qualified IPO. The Common Stock Warrants would be automatically exercised immediately prior to expiration on the earlier to occur of a Qualified IPO or a sale of the Company or the maturity of the October 2012 Secured Promissory Notes. The October 2012 Secured Promissory Notes could be prepaid six months after the initial funding date or earlier if a Qualified IPO or a sale of the Company occurs. As the predominant settlement feature of the Common Stock Warrants is to settle a fixed monetary amount in a variable number of shares, the Common Stock Warrants were accounted for under ASC 480, Distinguishing Liabilities from Equity The October 2012 Secured Promissory Notes contain certain covenant requirements, which include a requirement to maintain a minimum cash balance of the lesser of the April 2012 Note indebtedness described above or $5,000,000. As the April 2012 Note was fully paid off in January 2013, the Company no longer has a minimum cash balance requirement under the October 2012 Secured Promissory Notes. The Company is also precluded from adding additional debt without lender approval but allowance is made if such debt is subordinated to the October 2012 Secured Promissory Notes or if such additional debt is not more than $2,000,000 in the aggregate. In the event of default on the October 2012 Secured Promissory Notes, the lenders may declare the entire unpaid principal and interest immediately due and payable. On April 10, 2013 (“Conversion Date”), the Company entered an amendment to increase, by up to $5,000,000, the amount available under the terms of the loan agreement with respect to the October 2012 Secured Promissory Notes. Under this amendment, an additional $4,950,000 was issued in partial consideration for $3,700,000 in cash received and in partial conversion for the cancellation of $1,250,000 of the total principal balance of the October 2012 Subordinated Convertible Note described below (collectively, “April 2013 Secured Promissory Notes”). The total amount borrowed under the amended loan agreement for the October 2012 Secured Promissory Notes and the April 2013 Secured Promissory Notes increased from $7,500,000 to $12,450,000 as of the Conversion Date. The accrued interest of $74,000 for the partially converted October 2012 Subordinated Convertible Note as of the Conversion Date shall be repaid or converted on the applicable maturity date of the October 2012 Subordinated Convertible Note. In connection with the issuance of the April 2013 Secured Promissory Notes, the Company issued additional warrants (“Additional Common Stock Warrants”) to purchase a number of shares of common stock equal to 20% of the funded principal amount of the April 2013 Secured Promissory Notes divided by 70% of the value of common stock in a sale of the Company or a Qualified IPO, with such Additional Common Stock Warrants to have an exercise price of 70% of the value of common stock in a sale of the Company or a Qualified IPO. As the predominant settlement feature of the Additional Common Stock Warrants was to settle a fixed monetary amount in a variable number of shares, the Additional Common Stock Warrants were accounted for under ASC 480. Accordingly, the Additional Common Stock Warrants were recorded at estimated fair value on their issuance date and were adjusted to their estimated fair value as of each reporting date with the change in estimated fair value recorded as a component of change in estimated fair value of financial instruments in the Company’s condensed consolidated statements of operations. The fair value of the Additional Common Stock Warrants at the date of issuance was estimated to be $465,000. The Company estimated the fair value of the Additional Common Stock Warrants using a PWERM valuation based on unobservable inputs and, therefore, the Additional Common Stock Warrants were classified as Level 3 liabilities in the fair value hierarchy. Upon closing of the IPO, the exercise price of the Additional Common Stock Warrants was determined to be $8.40 per share and the number of shares to be issued upon exercise of the warrants was no longer variable. As a result of the IPO, the Additional Common Stock Warrants were considered to be indexed to the Company’s stock, and accordingly, the common stock warrants liability was reclassified and included in stockholders’ equity (deficit) during the year ended December 31, 2013. The debt holder who converted $1,250,000 principal balance of the October 2012 Subordinated Convertible Note (with a fair value of $1,360,000 on the date of conversion) also loaned an additional $2,500,000 in cash as part of the April 2013 Secured Promissory Notes (collectively, the “$3,750,000 Notes”). The Company accounted for the conversion as an extinguishment of debt in accordance with ASC 470-50-40, Modifications and Extinguishments The following table shows the consideration received, fair values of the notes and common stock warrants issued and calculation of the gain on extinguishment of debt for the $3,750,000 Notes (in thousands): Consideration received Fair value of October 2012 Subordinated Convertible Note $ 1,360 Cash 2,500 Total consideration received (a) $ 3,860 Notes and warrants issued Principal balance of notes issued $ 3,750 Debt discount (1) (291 ) Fair value of notes issued 3,459 Fair value of Additional Common Stock Warrants issued 352 Total fair value of notes and warrants issued (b) $ 3,811 Gain on extinguishment of debt (a-b) $ 49 (1) The amortization of this account is being recorded in interest expense in the condensed consolidated statements of operations over the term of the arrangement. The remaining fair value of the Additional Common Stock Warrants of $113,000, net of the fair value of the Additional Common Stock Warrants issued of $352,000 related to the $3,750,000 Notes discussed above, was recorded as a debt discount to the April 2013 Secured Promissory Notes and is being amortized to interest expense over the term of the arrangement. As a result of the amendment described above, the Company is also required to pay the Agent Fee, 5% of the $3,700,000 in cash received from the April 2013 Secured Promissory Notes, under the same terms as the October 2012 Secured Promissory Notes. In addition, the portion of the Agent Fee relating to the converted October 2012 Subordinated Convertible Note that would be due under the terms of the October 2012 Subordinated Convertible Note will be paid under the terms of the October 2012 and April 2013 Secured Promissory Notes. The present value of the unpaid Agent Fee of $172,000, based on 5% of the funded principal amount of $4,950,000, as of the closing date of the April 2013 Secured Promissory Notes was recorded as both deferred financing costs as a component of current and non-current other assets and non-current other liabilities. The amortization of the deferred financing costs and the accretion of the Agent Fee are being amortized to interest expense over the term of the arrangement. In addition, the Company incurred an additional $24,000 in financing-related costs, primarily legal fees. These costs were recorded as deferred financing costs as a component of current and non-current other assets and are being amortized to interest expense over the term of the arrangement. The amendment to the loan agreement also amended the interest provision applicable to the October 2012 and April 2013 Secured Promissory Notes to allow any holder of the October 2012 and April 2013 Secured Promissory Notes to request the Company to defer all interest due monthly to the applicable maturity date, and the optional prepayment provision applicable to the October 2012 and April 2013 Secured Promissory Notes to allow the Company to repay the outstanding amount of the October 2012 and April 2013 Secured Promissory Notes either (i) with the written consent of the lender or the agent on such lenders’ behalf or (ii) without such consent provided that the Company pays the interest that would have been due from the prepayment date to the initial maturity date. Activity related to the October 2012 and April 2013 Secured Promissory Notes from December 31, 2014 through March 31, 2015 consisted of the following (in thousands): DECEMBER 31, ADDITIONS AMORTIZATION PRINCIPAL MARCH 31, Principal $ 12,450 $ — $ — $ — $ 12,450 Debt discount related to the issuance of common stock warrants (1) (106 ) — 35 — (71 ) Discount related to the $3,750,000 Notes (1) (97 ) — 29 — (68 ) $ 12,247 $ — $ 64 $ — $ 12,311 (1) The amortization of this account is included in interest expense in the condensed consolidated statements of operations and as non-cash interest expense in the condensed consolidated statements of cash flows. As of March 31, 2015 and December 31, 2014, the Company was in breach of its covenants under the October 2012 and April 2013 Secured Promissory Notes as a result of its failure to provide annual financial statements in a timely manner and as the Company was in breach of certain of its covenants under its June 2014 Secured Promissory Note as described below. However, in November 2015, the Company received an extension from the lending agent with respect to compliance with the requirements to deliver annual financial statements to the earlier of (i) November 15, 2015 or (ii) such time such financial statements are filed with the SEC. Further, the covenant breach was cured in November 2015 as a result of obtaining this extension and the waiver of certain of the Company’s covenants with respect to the June 2014 Secured Promissory Note as described below. In August 2015, the terms of the notes were amended, resulting in an increase in the interest rate to 18% effective September 1, 2015 for the remaining term of the notes. The Company also provided a written notice in September 2015 to extend the maturity date to October 2, 2017. Credit Facility On June 14, 2013, the Company entered into a credit facility agreement (“June 2013 Credit Facility”) with a group of lenders that are, or that are affiliated with, existing investors in the Company. Under the June 2013 Credit Facility, the lenders have committed to permit the Company to draw an aggregate of up to $5,000,000, and, subject to the Company’s obtaining additional commitments from lenders, such amount may be increased to up to $7,000,000. The June 2013 Credit Facility expired on June 30, 2014 without having been drawn upon. During the term of the June 2013 Credit Facility, the Company could request from the lenders up to four advances, with each advance equal to one-quarter of each lender’s aggregate commitment amount. The Company would issue a promissory note in the principal amount of each such advance that would accrue interest at a rate of 10% per annum. The principal and all unpaid interest under the promissory notes would be due on the maturity date, and the Company could not prepay the promissory notes prior to the maturity date without consent of at least a majority in interest of the aggregate principal amount of the promissory notes then outstanding under the June 2013 Credit Facility. In connection with the June 2013 Credit Facility, the Company agreed to pay a fee of 2% of the total commitment amount to the lenders. In addition, the Company incurred an additional $10,000 in financing-related costs, primarily legal fees. These costs were recorded as deferred financing costs as a component of current other assets and were fully amortized to interest expense as of December 31, 2014. In connection with the June 2013 Credit Facility, the Company issued warrants (“June 2013 Warrants”) to purchase a number of shares of common stock equal to 10% of the total committed amount of the June 2013 Credit Facility divided by 70% of the value of common stock in a sale of the Company or a Qualified IPO, with such June 2013 Warrants to have an exercise price of 70% of the value of common stock in a sale of the Company or a Qualified IPO. The June 2013 Warrants expire upon the earlier of June 14, 2023 or the sale of the Company. As the predominant settlement feature of the June 2013 Warrants was to settle a fixed monetary amount in a variable number of shares, the June 2013 Warrants were accounted for under ASC 480. Accordingly, the June 2013 Warrants were recorded at estimated fair value on their issuance date and were adjusted to their estimated fair value as of each reporting date with the change in estimated fair value recorded as a component of change in estimated fair value of financial instruments in the Company’s condensed consolidated statements of operations. The fair value of the June 2013 Warrants at the date of issuance of $435,000 was recorded as a deferred financing cost as a current other asset and was being amortized to interest expense over the term of the arrangement. Until the effective date of the IPO, the Company estimated the fair value of the June 2013 Warrants using a PWERM valuation based on unobservable inputs and, therefore, the June 2013 Warrants were classified as Level 3 liabilities in the fair value hierarchy. Upon closing of the IPO, the exercise price of the June 2013 Warrants was determined to be $8.40 per share and the number of shares to be issued upon exercise of the warrants was no longer variable. As a result of the IPO, the June 2013 Warrants were considered to be indexed to the Company’s stock, and accordingly, the common stock warrants liability was reclassified and included in stockholders’ equity (deficit) during the year ended December 31, 2013. Secured Promissory Note On April 11, 2014, the Company entered into a $3,000,000 promissory note with Five Star Bank. On April 14, 2014, the Company entered into an agreement with the bank to modify the terms of the promissory note from a single payment loan to a revolving line of credit, which allowed the Company to borrow up to $3,000,000. On April 28, 2014, the Company entered into an agreement to modify the terms of the revolving line of credit to increase the borrowing limit up to $5,000,000. In June 2014, the $4,687,000 balance on the revolving line of credit was paid off and the line was closed when the Company borrowed $10,000,000 pursuant to a business loan agreement and promissory note (“June 2014 Secured Promissory Note”) with the bank (“Lender”) which bears interest at prime rate (3.25% as of March 31, 2015) plus 2.00% per annum. The interest rate is subject to change from time to time to reflect changes in the prime rate; however, the interest rate shall not be less than 5.25% or more than the maximum rate allowed by applicable law. If the interest rate increases, the Lender, may, at its option, increase the amount of each monthly payment to ensure that the note would be paid in full by the maturity date, increase the amount of each monthly payment to reflect the change in interest rate, increase the number of monthly payments or keep the monthly payments the same and increase the final payment amount. The June 2014 Secured Promissory Note is repayable in monthly payments of $64,390 commencing in July 2014, with the final payment due in June 2036. Certain of the Company’s deposit accounts and MMM, LLC’s inventories, chattel paper, accounts, equipment and general intangibles have been pledged as collateral for the promissory note. The Company is required to maintain a deposit balance with the Lender of $1,560,000, which is recorded as restricted cash included in non-current assets. In addition, until the Company provides documentation that the proceeds were used for construction of the Company’s manufacturing plant, proceeds from the loan will be maintained in a restricted deposit account. As of March 31, 2015, the Company had $1,856,000 remaining in this restricted deposit account, which was recorded as restricted cash included in current assets. In addition, the Company incurred an additional $304,000 in financing-related costs, including USDA guarantee fees. These costs were recorded as deferred financing costs as a component of current and non-current other assets on the date of issuance and are being amortized to interest expense over the term of the arrangement. The Company may prepay 20% of the outstanding principal loan balance each year without penalty. A prepayment fee of 10% will be charged if prepayments exceed 20% in the first year, and the prepayment fee will decrease by 1% each year for the first ten years of the loan. The Company is required to maintain a current ratio of not less than 1.25-to-1.0, a debt-to-worth ratio of no greater than 4.0-to-1.0 and a loan-to-value ratio of no greater than 70% as determined by the lender. The Company is also required to comply with certain affirmative and negative covenants under the loan agreement discussed above. In the event of default on the debt, the lender may declare the entire unpaid principal and interest immediately due and payable. As of March 31, 2015 and December 31, 2014, the Company was in breach of certain of its covenants under the loan agreement as a result of its annual and quarterly reports not being filed within the prescribed time period and its being in breach of covenants on the October 2012 and April 2013 Secured Promissory Notes described above. Effective September 30, 2015, the Company’s debt-to-worth ratio was greater than 4.0-to-1.0 as a result of the issuance of $40,000,000 in promissory notes in August 2015 as described in Note 10, which increased the Company’s debt while the Company continued to incur net losses, which decreased stockholders’ equity. However, in November 2015, the Company received a waiver from the Lender with respect to compliance with the requirements to (i) deliver annual financial statements (extended to November 15, 2015), (ii) maintain a current ratio greater than 1.25-to-1.0 (extended to December 31, 2015) and (iii) maintain a debt-to-worth ratio less than 4.0-to-1.0 (extended to December 31, 2016). The receipt of this waiver and the extension to provide financial statements under the October 2012 and April 2013 Secured Promissory Notes cured the Company of being in breach of the covenants under the loan agreement. |
Share-Based Plans
Share-Based Plans | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Plans | 7. Share-Based Plans As of March 31, 2015, there were 2,663,000 options outstanding and 2,113,000 share-based awards available for grant under the outstanding equity incentive plans. For the three months ended March 31, 2015 and 2014, the Company recognized share-based compensation of $1,090,000 and $1,522,000, respectively. During the three months ended March 31, 2015, the Company did not grant any options and no options were exercised. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Operating Leases The Company has a non-cancelable lease for an aggregate of approximately 24,500 square feet of non-contiguous office space in an office complex in Davis, California under which a portion of the covered space terminated beginning in February 2014. The remaining portion of the space will terminate by October 2016. The lease includes negotiated annual increases in the monthly rental payments. In September 2013 and then amended in April 2014, the Company entered into a lease agreement for approximately 27,300 square feet of office and laboratory space located in Davis, California. The initial term of the lease is for a period of 60 months and commenced in August 2014. The monthly base rent is $44,000 per month for the first 12 months with a 3% increase each year thereafter. Concurrent with this amendment, in April 2014, the Company entered into a lease agreement with an affiliate of the landlord to lease approximately 17,400 square feet of office and laboratory space in the same building complex in Davis, California. The initial term of the lease is for a period of 60 months and commenced in August 2014. The monthly base rent is $28,000 with a 3% increase each year thereafter. Litigation On September 5, 2014, September 8, 2014, September 11, 2014, September 15, 2014 and November 3, 2014, the Company, along with certain of its current and former officers and directors and others were named as defendants in putative securities class action lawsuits filed in the U.S. District Court for the Eastern District of California. On February 13, 2015, these actions were consolidated as Special Situations Fund III QP, L.P. et al v. Marrone Bio Innovations, Inc. et al On September 9, 2014 and November 25, 2014, shareholder derivative actions were filed in the Superior Court of California, County of Yolo (Case No. CV14-1481) and the U.S. District Court for the Eastern District of California (Case No. 1:14-cv-02779-JAM-CKD), purportedly on the Company’s behalf, against certain current and former officers and members of its board of directors (the “2014 Derivative Actions”). The plaintiffs in the 2014 Derivative Actions allege that the defendants breached their fiduciary duties, committed waste, were unjustly enriched and aided and abetted breaches of fiduciary duty by causing the Company to issue allegedly false and misleading statements. The issues in the 2014 Derivative Actions overlap substantially with those at issue in the Class Action described above. The plaintiffs in the 2014 Derivative Actions seek, purportedly on behalf of the Company, an unspecified award of damages including, but not limited to, various corporate governance reforms, an award of restitution, an award of reasonable costs and expenses, including attorneys’ fees, and other further relief as the Court may deem just and proper. The Courts have granted the parties’ stipulations to defer litigation activity, subject to certain conditions and pending certain developments in the Class Action. On October 14, 2015, a shareholder derivative action was filed in the Superior Court of California, County of Yolo (Case No. CV15-1423), purportedly on the Company’s behalf, against certain current and former officers and members of the Company’s board of directors and the Company’s independent registered public accounting firm (the “2015 Derivative Action,” and with the 2014 Derivative Actions, the “Derivative Actions”). The plaintiff in the 2015 Derivative Action alleges that the director and officer defendants breached their fiduciary duties, committed waste and were unjustly enriched by causing the Company to issue allegedly false and misleading statements. The plaintiff in the 2015 Derivative Action also alleges that the Company’s independent registered public accounting firm committed professional negligence and malpractice. The issues in the 2015 Derivative Action overlap substantially with those at issue in the 2014 Derivative Actions and the Class Action described above. The parties are negotiating a date by which the defendants’ response to the newly filed complaint will be due. Given the preliminary nature of the Derivative Actions, the Company is not in a position to express any opinion regarding the outcome in these matters. The Company is currently unable to estimate a range of reasonably possible loss for the litigation because these matters involve significant uncertainties. Those uncertainties include the legal theory or the nature of the claims, the complexity of the facts, the results of any investigation or litigation and the timing of resolution of the investigations or litigation. Although the Company cannot estimate a reasonable range of loss based on currently available information, the resolution of these matters could have a material adverse effect on its financial position, results of operations or cash flows. SEC Investigation The Company advised the staff of the Division of Enforcement of the SEC in September 2014 that the Audit Committee of the Company’s board of directors had commenced an internal investigation. The SEC commenced a formal investigation of these matters, with which the Company is cooperating. Though the investigation continues, the Company has engaged in discussions with the Division of Enforcement staff concerning the resolution of any enforcement action that it may recommend. In accordance with ASC 450, Contingencies Publicity surrounding the foregoing or any enforcement action as a result of the Division of Enforcement’s investigation, even if ultimately resolved favorably, could have an adverse impact on the Company’s reputation, business, financial position, results of operations or cash flows. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions Les Lyman, a member of the Company’s board of directors, is the chairman and significant indirect shareholder of The Tremont Group, Inc. For the three months ended March 31, 2015 and 2014, revenue of $199,000 and $277,000, respectively, was recognized on a sell-through basis relating to product purchased by The Tremont Group, Inc. that was resold by the Tremont Group, Inc. during the period. As of March 31, 2015 and December 31, 2014, the Company had no outstanding accounts receivable due from The Tremont Group, Inc. As of March 31, 2015 and December 31, 2014, the Company recorded deferred cost of product revenues of $251,000 and $333,000, respectively, and current deferred product revenues of $461,000 and $660,000, respectively, relating to product sold to The Tremont Group, Inc. where title has transferred but the criteria for revenue recognition have not been met. Although the Company anticipates sales of its products to The Tremont Group, Inc. to continue through 2015, the Company cannot estimate the amount of those sales. The Company has a strategic collaboration and distribution agreement with Syngenta, an affiliate of a former 5% stockholder, Syngenta Ventures. In connection with the Company’s secondary offering in June 2014, Syngenta Ventures sold 600,000 shares of the Company’s common stock, reducing its ownership percentage below 5%. Accordingly, revenue recognized under this agreement subsequent to June 2014 has not been included in related party revenues. For the three months ended March 31, 2014, the Company recognized $324,000 of related party revenues under this agreement prior to Syngenta Ventures reducing its ownership stake. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events Sale of Notes and Warrants On August 20, 2015, the Company issued and sold to entities affiliated with Waddell & Reed Financial, Inc., one of its 5% stockholders, senior secured promissory notes in the aggregate principal amount of $40,000,000 and warrants to purchase up to 4,000,000 shares of common stock of the Company for aggregate consideration of $40,000,000, pursuant to a purchase agreement dated August 20, 2015. The notes will bear interest at a rate of 8% per annum payable semi-annually on June 30 or December 31 of each year, commencing on December 31, 2015, with $10,000,000 payable three years from the closing, $10,000,000 payable four years from the closing and $20,000,000 payable five years from the closing. The notes contain customary covenants, in addition to the obligation to maintain cash and cash equivalents of at least $15,000,000. The notes provide for various events of default, including, among others, default in payment of principal or interest, breach of any representation or warranty by the Company or any subsidiary under any agreement or document delivered in connection with the notes, a continued breach of any other condition or obligation under any loan document, certain bankruptcy, liquidation, reorganization or change of control events, the acquisition by any person or persons acting as group, other than the lenders, of beneficial ownership of 40% or more of the outstanding voting stock of the Company and certain events in which Pamela G. Marrone Ph.D. ceases to serve as the Company’s Chief Executive Officer. As of September 30, 2015, the Company was in breach of its covenants under the August 2015 Senior Secured Promissory Notes as the Company was in breach of its covenants under its October 2012 and April 2013 Secured Promissory Notes and June 2014 Secured Promissory Note. However, this covenant breach was cured in November 2015 as a result of the Company obtaining an extension to deliver its annual financial statements with respect to the October 2012 and April 2013 Secured Promissory Notes and the waiver of certain of the Company’s covenants with respect to the June 2014 Secured Promissory Note. See Note 6 for further discussion. The notes are secured by substantially all the Company’s personal property assets. The agent, acting behalf of the lenders, shall be entitled to have a first priority lien on the Company’s intellectual property assets, pursuant to intercreditor arrangements with certain of the Company’s existing lenders. The warrants are immediately exercisable at an exercise price of $1.91 per share (subject to adjustments) and may be exercised at a holder’s option at any time on or before August 20, 2023 (subject to certain exceptions). Proceeds from the sale of the notes and warrants will be allocated to the notes and warrants based on the relative fair value. In connection with the above transaction, on August 19, 2015, the Company amended the October 2012 and April 2013 Secured Promissory Notes. As a result of the amendment, interest on loans was accrued at a rate of 12% per annum until September 1, 2015, and thereafter is accrued at a rate of 18% per annum, and the Company is permitted to prepay the outstanding indebtedness under the agreement without penalty at any time. In addition, in September 2015, the Company provided a written notice exercising its right to extend the maturity through October 2, 2017. The amendments will be accounted for as a modification of the loan agreement with the effective interest rate adjusted prospectively from the amendment date. Separation Agreement On January 14, 2015, James Iademarco was appointed as the Company’s President and Chief Operating Officer, effective January 14, 2015. On August 20, 2015, the Company entered into a separation agreement with James Iademarco whereby he resigned effective August 31, 2015, but agreed to remain available to advise the Company in a consulting capacity for an additional period of up to 90 days to assist with the transition of various pending matters. Pursuant to the separation agreement, Mr. Iademarco is entitled to receive, among other things, an amount equal to one-twelfth of his prior base salary of $290,000 on or before the 15th day of each of the twelve months following August 31, 2015 and certain premium payments for health and vision insurance coverage, in partial consideration for Mr. Iademarco granting the Company a general release of liability and claims. |
Significant Accounting Polici19
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying financial information as of March 31, 2015, and for the three months ended March 31, 2015 and 2014, has been prepared by the Company, without audit, in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such SEC rules and regulations and accounting principles applicable for interim periods. However, the Company believes that the disclosures are adequate to make the information presented not misleading. The information included in this Quarterly Report on Form 10-Q should be read in connection with the consolidated financial statements and accompanying notes included in the Company’s Annual Report filed on Form 10-K for the fiscal year ended December 31, 2014. In the opinion of management, the condensed consolidated financial statements as of March 31, 2015, and for the three months ended March 31, 2015 and 2014, reflect all adjustments, which are normal recurring adjustments, necessary to present a fair statement of financial position, results of operations, comprehensive loss and cash flows. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. Cash and cash equivalents consists of cash on deposit, money market funds and certificates of deposit accounts with United States (“U.S.”) financial institutions. The Company is exposed to credit risk in the event of default by financial institutions to the extent that cash and cash equivalents balances with financial institutions are in excess of amounts that are insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses on these deposits. |
Restricted Cash | Restricted Cash The Company’s restricted cash consists of cash that the Company is contractually obligated to maintain on deposit at a bank in accordance with the promissory note entered into in June 2014. See Note 6 for further discussion. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, accounts receivable and debt. The Company deposits its cash and cash equivalents with high credit quality domestic financial institutions with locations in the U.S. Such deposits may exceed federal deposit insurance limits. The Company believes the financial risks associated with these financial instruments are minimal. The Company’s customer base is dispersed across many different geographic areas, and currently most customers are pest management distributors in the U.S. Generally, receivables are due up to 120 days from the invoice date and are considered past due after this date, although the Company may offer extended terms from time to time. For the three months ended March 31, 2015 and 2014, 2% and 17%, respectively, of the Company’s revenues were generated from international customers. The Company’s principal sources of revenues are its Regalia and Grandevo product lines. For the three months ended March 31, 2015 and 2014, these two product lines accounted for 97% and 86%, respectively, of the Company’s total revenues. Customers to which 10% or more of the Company’s total revenues are attributable for any one of the periods presented consist of the following: CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER (1) CUSTOMER (1) CUSTOMER F For the three months ended March 31, 2015 24 % 17 % 14 % 10 % * * 2014 6 % 25 % 14 % 10 % 12 % 11 % (1) Represents revenues from related parties. See Note 9 for further discussion. * Represents less than 1% of total revenues. Customers to which 10% or more of the Company’s outstanding accounts receivable are attributable as of either March 31, 2015 or December 31, 2014 consist of the following: CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER D CUSTOMER E March 31, 2015 35 % 22 % 10 % * * December 31, 2014 10 % 9 % 1 % 37 % 23 % * Represents less than 1% of outstanding accounts receivable. |
Concentrations of Supplier Dependence | Concentrations of Supplier Dependence The active ingredient in the Company’s Regalia product line is derived from the giant knotweed plant, which the Company obtains from China. The Company’s single supplier acquires raw knotweed from numerous regional sources and performs an extraction process on this plant, creating a dried extract that is shipped to the Company’s manufacturing plant. A disruption at this supplier’s manufacturing site or a disruption in trade between the U.S. and China could negatively impact sales of Regalia. The Company currently uses one supplier and does not have a long-term supply contract with this supplier. Although the Company has identified additional sources of raw knotweed, there can be no assurance that the Company will continue to be able to obtain dried extract from China at a competitive price. |
Inventories | Inventories Inventories are stated at the lower of cost or market value (net realizable value or replacement cost) and include the cost of material and external and internal labor and manufacturing costs. Cost is determined on the first-in, first-out basis. The Company provides for inventory reserves when conditions indicate that the selling price may be less than cost due to physical deterioration, obsolescence, changes in price levels or other factors. Additionally, the Company provides reserves for excess and slow-moving inventory on hand that is not expected to be sold to reduce the carrying amount of excess and slow-moving inventory to its estimated net realizable value. The reserves are based upon estimates about future demand from the Company’s customers and distributors and market conditions. |
Deferred Cost of Product Revenues | Deferred Cost of Product Revenues Deferred cost of product revenues are stated at the lower of cost or net realizable value and include product sold where title has transferred but the criteria for revenue recognition have not been met. As of March 31, 2015 and December 31, 2014, the Company recorded deferred cost of product revenues of $1,939,000 and $1,797,000, respectively, including deferred cost of product revenues to related parties of $251,000 and $333,000, respectively. |
Revenue Recognition | Revenue Recognition The Company recognizes revenues when persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. If contractual obligations, acceptance provisions or other contingencies exist which indicate that the price is not fixed or determinable, revenue is recognized after such obligations or provisions are fulfilled or expire. Product revenues consist of revenues generated from sales of the Company’s products to distributors and direct customers, net of rebates and cash discounts. For sales of products made to distributors, the Company recognizes revenue either on a sell-in or sell-through basis depending on the specific facts and circumstances of the transaction(s) with the distributor. Factors considered include, but are not limited to, whether the payment terms offered to the distributor are structured to correspond to when product is resold, the distributor history of adhering to the terms of its contractual arrangements with the Company, whether the Company has a pattern of granting concessions for the benefit of the distributor and whether there are other conditions that may indicate that the sale to the distributor is not substantive. In some cases, the Company recognizes distributor revenue as title and risk of loss passes, provided all other revenue recognition criteria have been satisfied (the “sell-in” method). For certain sales to certain distributors, the revenue recognition criteria for distributor sales are not satisfied at the time title and risk of loss passes to the distributor; specifically, in instances where “inventory protection” arrangements were offered to distributors that would permit these distributors to return to the Company certain unsold products, the Company considers the arrangement not to be fixed or determinable, and accordingly, revenue is deferred until products are resold to customers of the distributor (the “sell-through” method). As of March 31, 2015 and December 31, 2014, the Company recorded current deferred product revenues of $3,389,000 and $3,190,000, respectively, including current deferred product revenues from related parties of $461,000 and $660,000, respectively. The cost of product revenues associated with such deferral are also deferred and classified as deferred cost of product revenues in the condensed consolidated balance sheets. Cash received from customers related to delivered product that may not represent a true sale is classified as customer refund liabilities in the condensed consolidated balance sheets and the related cost of inventory remains in inventory in the condensed consolidated balance sheets until the product is returned or is resold to customers of the distributor and revenue is recognized. For the three months ended March 31, 2015 and 2014, 32% and 52%, respectively, of total revenues were recognized on a sell-through basis. From time to time, the Company offers certain product rebates to its distributors and growers, which are estimated and recorded as reductions to product revenues, and an accrued liability is recorded at the later of when the revenues are recorded or the rebate is being offered. The Company recognizes license revenues pursuant to strategic collaboration and distribution agreements under which the Company receives payments for the achievement of testing validation, regulatory progress and commercialization events. As these activities and payments are associated with exclusive rights that the Company provides in connection with strategic collaboration and distribution agreements over the term of the agreements, revenues related to the payments received are deferred and recognized over the term of the exclusive distribution period of the respective agreement. For the three months ended March 31, 2015, the Company received payments totaling $750,000 under these agreements. No payments were received under these agreements for the three months ended March 31, 2014. For the three months ended March 31, 2015 and 2014, the Company recognized $83,000 and $45,000, respectively, as license revenues, excluding related party revenues. The Company has a strategic collaboration and distribution agreement with Syngenta, an affiliate of a former 5% stockholder, Syngenta Ventures Pte. LTD (Syngenta Ventures). In connection with the Company’s secondary offering in June 2014, Syngenta Ventures sold 600,000 shares of the Company’s common stock, reducing its ownership percentage below 5%. Accordingly, revenue recognized under this agreement subsequent to June 2014 has not been included in related party revenues. For the three months ended March 31, 2014, the Company recognized $324,000 of related party revenues under this agreement prior to Syngenta Ventures reducing its ownership stake. As of March 31, 2015, the Company recorded current and non-current deferred revenues of $331,000 and $1,967,000, respectively, related to payments received under these agreements. As of December 31, 2014, the Company recorded current and non-current deferred revenues of $331,000 and $2,050,000, respectively, related to payments received under these agreements. |
Research, Development and Patent Expenses | Research, Development and Patent Expenses Research and development expenses include payroll-related expenses, field trial costs, toxicology costs, regulatory costs, consulting costs and lab costs. Patent expenses include legal costs relating to the patents and patent filing costs. These costs are expensed to operations as incurred. For the three months ended March 31, 2015 and 2014, research and development expenses totaled $3,115,000 and $4,000,000, respectively, and patent expenses totaled $307,000 and $297,000, respectively. |
Net Loss per Share | Net Loss per Share Net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding for the period. The calculation of basic and diluted net loss per share is the same for all periods presented as the effect of the potential common stock equivalents, which consist of stock options and warrants to purchase common stock, are anti-dilutive due to the Company’s net loss position. Anti-dilutive common stock equivalents are excluded from diluted net loss per share. The anti-dilutive stock options that were not included in diluted net loss per share were 2,663,000 and 2,974,000 as of March 31, 2015 and 2014, respectively. The anti-dilutive warrants to purchase common stock that were not included in diluted net loss per share were 145,000 as of both March 31, 2015 and 2014. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest—Imputation of Interest (Topic 835-30): Simplifying the Presentation of Debt Issuance Costs In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Significant Accounting Polici20
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Concentrations of Credit Risk Percentage | Customers to which 10% or more of the Company’s total revenues are attributable for any one of the periods presented consist of the following: CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER (1) CUSTOMER (1) CUSTOMER F For the three months ended March 31, 2015 24 % 17 % 14 % 10 % * * 2014 6 % 25 % 14 % 10 % 12 % 11 % (1) Represents revenues from related parties. See Note 9 for further discussion. * Represents less than 1% of total revenues. Customers to which 10% or more of the Company’s outstanding accounts receivable are attributable as of either March 31, 2015 or December 31, 2014 consist of the following: CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER D CUSTOMER E March 31, 2015 35 % 22 % 10 % * * December 31, 2014 10 % 9 % 1 % 37 % 23 % * Represents less than 1% of outstanding accounts receivable. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | The following table presents the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014 (in thousands): MARCH 31, 2015 TOTAL LEVEL 1 LEVEL 2 LEVEL 3 Assets Money market funds $ 8,748 $ 8,748 $ — $ — DECEMBER 31, 2014 TOTAL LEVEL 1 LEVEL 2 LEVEL 3 Assets Money market funds $ 14,746 $ 14,746 $ — $ — |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net consist of the following (in thousands): MARCH 31, DECEMBER 31, Raw materials $ 5,717 $ 5,692 Work in progress 792 1,150 Finished goods 4,842 5,378 Finished goods held at customers 424 424 $ 11,775 $ 12,644 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): MARCH 31, DECEMBER 31, Accrued compensation $ 1,393 $ 1,348 Accrued expenses 3,995 4,771 Accrued warranty costs 258 202 $ 5,646 $ 6,321 |
Schedule of Changes in Accrued Warranty Costs | Changes in the Company’s accrued warranty costs during the period are as follows (in thousands): Balance as of December 31, 2014 $ 202 Warranties issued during the period 65 Settlements made during the period (9 ) Balance as of March 31, 2015 $ 258 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of the following (in thousands): MARCH 31, DECEMBER 31, Term Loan (“Term Loan”) bearing interest at 7.00% per annum, which is payable monthly through April 2016, collateralized by all of the Company’s inventories, chattel paper, accounts receivable, equipment and general intangibles (excluding certain financed equipment and intellectual property) pledged as collateral under the Term Loan, subordinated $ 150 $ 183 Secured promissory notes (“October 2012 and April 2013 Secured Promissory Notes”) bearing interest at 12.00% per annum, which are payable monthly through October 2015, collateralized by substantially all of the Company’s assets, net of unamortized debt discount as of March 31, 2015 and December 31, 2014 of $139 and $203, respectively 12,311 12,247 Secured promissory note (“June 2014 Secured Promissory Note”) bearing interest at prime plus 2% (5.25% as of March 31, 2015) per annum, which is payable monthly through June 2036, collateralized by all of the Company’s deposit accounts and MMM LLC’s inventories, chattel paper, accounts, equipment and general intangibles 9,809 9,873 Debt 22,270 22,303 Less current portion (12,704 ) (12,636 ) $ 9,566 $ 9,667 |
Consideration Received, Fair Values of Notes, Common Stock Warrants Issued and Calculation of Gain on Extinguishment of Debt | The following table shows the consideration received, fair values of the notes and common stock warrants issued and calculation of the gain on extinguishment of debt for the $3,750,000 Notes (in thousands): Consideration received Fair value of October 2012 Subordinated Convertible Note $ 1,360 Cash 2,500 Total consideration received (a) $ 3,860 Notes and warrants issued Principal balance of notes issued $ 3,750 Debt discount (1) (291 ) Fair value of notes issued 3,459 Fair value of Additional Common Stock Warrants issued 352 Total fair value of notes and warrants issued (b) $ 3,811 Gain on extinguishment of debt (a-b) $ 49 (1) The amortization of this account is being recorded in interest expense in the condensed consolidated statements of operations over the term of the arrangement. |
Schedule of Activity Related to Secured Promissory Notes | Activity related to the October 2012 and April 2013 Secured Promissory Notes from December 31, 2014 through March 31, 2015 consisted of the following (in thousands): DECEMBER 31, ADDITIONS AMORTIZATION PRINCIPAL MARCH 31, Principal $ 12,450 $ — $ — $ — $ 12,450 Debt discount related to the issuance of common stock warrants (1) (106 ) — 35 — (71 ) Discount related to the $3,750,000 Notes (1) (97 ) — 29 — (68 ) $ 12,247 $ — $ 64 $ — $ 12,311 (1) The amortization of this account is included in interest expense in the condensed consolidated statements of operations and as non-cash interest expense in the condensed consolidated statements of cash flows. |
Summary of Business, and Liqu25
Summary of Business, and Liquidity - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Aug. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Description Of Business [Line Items] | |||||
Date of incorporation | Jun. 15, 2006 | ||||
Accumulated deficit | $ (171,762,000) | $ (159,848,000) | |||
Working capital | 12,451,000 | ||||
Cash and cash equivalents | $ 22,352,000 | 35,324,000 | $ 21,298,000 | $ 24,455,000 | |
Debt agreements financial and non-financial covenants | as of March 31, 2015, the Company had debt totaling $22,270,000 for which the underlying debt agreements contain various financial and non-financial covenants, as well as certain material adverse change clauses. If the Company breaches any of the covenants contained within the debt agreements or if the material adverse change clauses are triggered, the entire unpaid principal and interest balance would be due and payable upon demand. The Company believes that currently available resources combined with the additional $40,000,000 in proceeds raised from the issuance of senior secured promissory notes in August 2015 (see Note 10) will be sufficient to fund the Company’s cash requirements through at least March 31, 2016. | ||||
Debt outstanding | $ 22,270,000 | $ 22,303,000 | |||
Senior Secured Promissory Note Bearing Interest Rate at 8% [Member] | Subsequent Event [Member] | |||||
Schedule Of Description Of Business [Line Items] | |||||
Proceeds raised from issuance of senior secured promissory notes | $ 40,000,000 |
Significant Accounting Polici26
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | |
Significant Accounting Policies [Line Items] | ||||
Concentration risk supplier | The active ingredient in the Company’s Regalia product line is derived from the giant knotweed plant, which the Company obtains from China. The Company’s single supplier acquires raw knotweed from numerous regional sources and performs an extraction process on this plant, creating a dried extract that is shipped to the Company’s manufacturing plant. A disruption at this supplier’s manufacturing site or a disruption in trade between the U.S. and China could negatively impact sales of Regalia. The Company currently uses one supplier and does not have a long-term supply contract with this supplier. Although the Company has identified additional sources of raw knotweed, there can be no assurance that the Company will continue to be able to obtain dried extract from China at a competitive price. | |||
Deferred cost of product revenues | $ 1,939,000 | $ 1,797,000 | ||
Deferred cost of product revenues to related parties | 251,000 | 333,000 | ||
Current deferred product revenues | 3,389,000 | 3,190,000 | ||
Current deferred product revenues from related parties | $ 461,000 | 660,000 | ||
Percentage of total revenue recognized on sell-through basis | 32.00% | 52.00% | ||
Deferred payments received | $ 750,000 | $ 0 | ||
Recognized license revenues | 83,000 | 45,000 | ||
Related party revenues | 199,000 | 605,000 | ||
Current deferred product revenues | 3,259,000 | 2,861,000 | ||
Non-current deferred revenues | 1,967,000 | 2,050,000 | ||
Research and development expenses | 3,115,000 | 4,000,000 | ||
Patent expenses | 307,000 | $ 297,000 | ||
Strategic collaboration and distribution agreements [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Current deferred product revenues | 331,000 | 331,000 | ||
Non-current deferred revenues | $ 1,967,000 | $ 2,050,000 | ||
Stock options outstanding [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Anti-dilutive securities excluded from computation of earning per share | 2,663,000 | 2,974,000 | ||
Warrants to purchase common stock [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Anti-dilutive securities excluded from computation of earning per share | 145,000 | 145,000 | ||
Syngenta Ventures [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Recognized license revenues | $ 324,000 | |||
Affiliate revenues percent | 5.00% | |||
Number of common shares sold | 600,000 | |||
Related party revenues | $ 324,000 | |||
Sales revenue, net [Member] | Customer concentration risk [Member] | International [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Customers accounted for percentage of company's total revenues and accounts receivable | 2.00% | 17.00% | ||
Sales revenue, net [Member] | Product concentration risk [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Customers accounted for percentage of company's total revenues and accounts receivable | 97.00% | 86.00% | ||
Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Receivables due period | 120 days | |||
Maximum [Member] | Sales revenue, net [Member] | Customer concentration risk [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Customers accounted for percentage of company's total revenues and accounts receivable | 1.00% |
Significant Accounting Polici27
Significant Accounting Policies - Schedule of Concentrations of Credit Risk Percentage (Detail) - Customer concentration risk [Member] | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Customer A [Member] | Sales revenue, net [Member] | |||
Concentration Risk [Line Items] | |||
Customers accounted for percentage of company's total revenues and accounts receivable | 24.00% | 6.00% | |
Customer A [Member] | Accounts receivable [Member] | |||
Concentration Risk [Line Items] | |||
Customers accounted for percentage of company's total revenues and accounts receivable | 35.00% | 10.00% | |
Customer B [Member] | Sales revenue, net [Member] | |||
Concentration Risk [Line Items] | |||
Customers accounted for percentage of company's total revenues and accounts receivable | 17.00% | 25.00% | |
Customer B [Member] | Accounts receivable [Member] | |||
Concentration Risk [Line Items] | |||
Customers accounted for percentage of company's total revenues and accounts receivable | 22.00% | 9.00% | |
Customer C [Member] | Sales revenue, net [Member] | |||
Concentration Risk [Line Items] | |||
Customers accounted for percentage of company's total revenues and accounts receivable | 14.00% | 14.00% | |
Customer C [Member] | Accounts receivable [Member] | |||
Concentration Risk [Line Items] | |||
Customers accounted for percentage of company's total revenues and accounts receivable | 10.00% | 1.00% | |
Customer D [Member] | Sales revenue, net [Member] | |||
Concentration Risk [Line Items] | |||
Customers accounted for percentage of company's total revenues and accounts receivable | 10.00% | 10.00% | |
Customer D [Member] | Accounts receivable [Member] | |||
Concentration Risk [Line Items] | |||
Customers accounted for percentage of company's total revenues and accounts receivable | 37.00% | ||
Customer E [Member] | Sales revenue, net [Member] | |||
Concentration Risk [Line Items] | |||
Customers accounted for percentage of company's total revenues and accounts receivable | 12.00% | ||
Customer E [Member] | Accounts receivable [Member] | |||
Concentration Risk [Line Items] | |||
Customers accounted for percentage of company's total revenues and accounts receivable | 23.00% | ||
Customer F [Member] | Sales revenue, net [Member] | |||
Concentration Risk [Line Items] | |||
Customers accounted for percentage of company's total revenues and accounts receivable | 11.00% |
Significant Accounting Polici28
Significant Accounting Policies - Schedule of Concentrations of Credit Risk Percentage (Parenthetical) (Detail) - Maximum [Member] - Customer concentration risk [Member] | 3 Months Ended |
Mar. 31, 2015 | |
Sales revenue, net [Member] | |
Concentration Risk [Line Items] | |
Customers accounted for percentage of company's total revenues and accounts receivable | 1.00% |
Accounts receivable [Member] | |
Concentration Risk [Line Items] | |
Customers accounted for percentage of company's total revenues and accounts receivable | 1.00% |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Detail) - Money market funds [Member] - USD ($) $ in Thousands | Mar. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Assets at fair value | $ 8,748 | $ 14,746 |
Level 1 [Member] | ||
Assets | ||
Assets at fair value | 8,748 | 14,746 |
Level 2 [Member] | ||
Assets | ||
Assets at fair value | 0 | 0 |
Level 3 [Member] | ||
Assets | ||
Assets at fair value | $ 0 | $ 0 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Raw materials | $ 5,717 | $ 5,692 |
Work in progress | 792 | 1,150 |
Finished goods | 4,842 | 5,378 |
Inventories, total | 11,775 | 12,644 |
Customers [Member] | ||
Inventory [Line Items] | ||
Finished goods | $ 424 | $ 424 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) | Mar. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Reserves against inventories | $ 668,000 | $ 668,000 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 1,393 | $ 1,348 |
Accrued expenses | 3,995 | 4,771 |
Accrued warranty costs | 258 | 202 |
Accrued liabilities, total | $ 5,646 | $ 6,321 |
Accrued Liabilities - Schedul33
Accrued Liabilities - Schedule of Changes in Accrued Warranty Costs (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Payables and Accruals [Abstract] | |
Beginning Balance | $ 202 |
Warranties issued during the period | 65 |
Settlements made during the period | (9) |
Ending Balance | $ 258 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Debt | $ 22,270 | $ 22,303 |
Less current portion | (12,704) | (12,636) |
Debt, less current portion | 9,566 | 9,667 |
Secured Debt [Member] | April 2016 Term loan bearing interest at 7.00% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 150 | 183 |
Secured Debt [Member] | October 2012 and April 2013 Secured Promissory Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 12,311 | 12,247 |
Secured Debt [Member] | June 2014 Secured Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 9,809 | $ 9,873 |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Detail) - Secured Debt [Member] - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |
April 2016 Term loan bearing interest at 7.00% [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 7.00% | 7.00% | |
Debt instrument, payment terms | Payable monthly through April 2016 | ||
October 2012 and April 2013 Secured Promissory Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 12.00% | 12.00% | |
Debt instrument, payment terms | Payable monthly through October 2015 | ||
Unamortized debt discount | $ 139 | $ 203 | |
June 2014 Secured Promissory Note [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, prime rate | 2.00% | 2.00% | |
Debt instrument, interest rate | 5.25% | ||
Debt instrument, payment terms | Payable monthly through June 2036 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Mar. 31, 2015 | Dec. 31, 2014 | Apr. 10, 2013 | Oct. 02, 2012 | Sep. 30, 2015 | Aug. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Apr. 30, 2013 | Oct. 31, 2011 | Mar. 31, 2015 | Aug. 20, 2015 | Apr. 28, 2014 | Apr. 14, 2014 | Oct. 31, 2012 | Mar. 31, 2012 |
Debt Instrument [Line Items] | ||||||||||||||||
Agent fee percentage | 5.00% | |||||||||||||||
Additional credit facility financing-related costs and primarily legal fees | $ 304,000 | $ 24,000 | $ 304,000 | |||||||||||||
Exercise price of the Common Stock Warrants | $ 8.40 | $ 8.40 | ||||||||||||||
Accrued interest on promissory notes | 74,000 | |||||||||||||||
Warrants exercise price percentage | 70.00% | 70.00% | ||||||||||||||
Exercise price of warrants as percentage of common stock | 70.00% | |||||||||||||||
Common stock warrants issued to purchase common stock percentage | 20.00% | |||||||||||||||
Fair value of common stock warrants on issuance | 465,000 | |||||||||||||||
Gain on extinguishment of debt | $ 49,000 | $ 49,000 | ||||||||||||||
Funds borrowed | $ 3,700,000 | 3,700,000 | ||||||||||||||
Fair value of the Warrants at the date of issuance as deferred financing cost | $ 435,000 | |||||||||||||||
Repayment of line of credit | $ 4,687,000 | |||||||||||||||
Required deposit balance | 1,560,000 | $ 1,560,000 | 1,560,000 | |||||||||||||
Restricted cash, current portion | $ 1,856,000 | 1,856,000 | 1,856,000 | $ 1,856,000 | ||||||||||||
Prepay percentage of outstanding principal loan | 20.00% | |||||||||||||||
Prepayment fee percentage | 10.00% | |||||||||||||||
Exceed percentage of principal payment | 20.00% | |||||||||||||||
Decrease percentage of prepayment fee | 1.00% | |||||||||||||||
Loan term for repayment | 10 years | |||||||||||||||
Current ratio | 125.00% | |||||||||||||||
Debt to worth ratio | 4.00% | |||||||||||||||
Percentage of loan to value ratio | 70.00% | 70.00% | ||||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Exercise price of the Common Stock Warrants | $ 1.91 | |||||||||||||||
Level 3 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Fair value of debt | $ 22,466,000 | $ 22,587,000 | $ 22,466,000 | |||||||||||||
Level 3 [Member] | Fixed rate debt [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Estimated market rate of interest | 11.25% | 11.25% | ||||||||||||||
Level 3 [Member] | Variable rate debt [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Estimated market rate of interest | 5.25% | 5.25% | ||||||||||||||
June 2013 credit facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of credit facility maximum borrowing limit | $ 7,000,000 | 7,000,000 | ||||||||||||||
Additional credit facility financing-related costs and primarily legal fees | 10,000 | $ 10,000 | ||||||||||||||
Credit facility expiry date | Jun. 30, 2014 | |||||||||||||||
Credit facility accrued interest | 10.00% | |||||||||||||||
Credit facility fee paid | 2.00% | |||||||||||||||
Revolving line of credit [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Percentage of borrowings limited to qualifying accounts receivable | 75.00% | |||||||||||||||
Line of credit facility maximum borrowing limit | $ 500,000 | $ 5,000,000 | $ 3,000,000 | |||||||||||||
Maximum [Member] | June 2013 credit facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Amount permit to draw | $ 5,000,000 | $ 5,000,000 | ||||||||||||||
Common stock warrants [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt discount | 113,000 | |||||||||||||||
June 2013 warrants [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Value of common stock in a sale of the Company or a qualified initial public offering | 70.00% | 70.00% | ||||||||||||||
Exercise price of the Common Stock Warrants | $ 8.40 | $ 8.40 | ||||||||||||||
Warrants expire date | Jun. 14, 2023 | |||||||||||||||
June 2013 warrants [Member] | Common stock warrants [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Common stock warrants issued to purchase common stock percentage | 10.00% | |||||||||||||||
Senior Secured Promissory Note Bearing Interest Rate at 8% [Member] | Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument borrowing amount | $ 40,000,000 | |||||||||||||||
Debt instrument issued, principal amount | $ 40,000,000 | |||||||||||||||
October 2012 and April 2013 Secured Promissory Notes [Member] | Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 18.00% | |||||||||||||||
Debt instrument maturity date | Oct. 2, 2017 | |||||||||||||||
April 2016 Term loan bearing interest at 7.00% [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of credit facility maximum borrowing limit | $ 500,000 | |||||||||||||||
Debt instrument, interest rate | 7.00% | |||||||||||||||
Debt instrument maturity date | Apr. 1, 2016 | |||||||||||||||
Secured Debt [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt issued in partial consideration, cash | 3,700,000 | |||||||||||||||
Secured Debt [Member] | October 2012 Secured Promissory Notes [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument borrowing amount | $ 7,500,000 | |||||||||||||||
Debt instrument borrowing terms | The October 2012 Secured Promissory Notes have an initial term of three years and can be extended for an additional two years in one year increments at the option of the Company. During the initial three-year term, the October 2012 Secured Promissory Notes bear interest at 12% per annum. If the term of the October 2012 Secured Promissory Notes is extended an additional year, the interest rate is 13% during the fourth year. If the term of the October 2012 Secured Promissory Notes is extended for an additional two years, the interest rate is 14% during the fifth year. Interest on the October 2012 Secured Promissory Notes is payable monthly through the initial maturity date of the loan, which is October 2, 2015, or through any extension period. The principal and all unpaid interest are due on the maturity date, as may be extended. | |||||||||||||||
Agent fee percentage | 5.00% | |||||||||||||||
Additional fee percentage | 1.00% | |||||||||||||||
Unpaid Agent Fee | $ 261,000 | $ 261,000 | ||||||||||||||
Warrants issued to purchase common stock funded principal percentage | 15.00% | |||||||||||||||
Value of common stock in a sale of the Company or a qualified initial public offering | 70.00% | 70.00% | ||||||||||||||
Fair value of Common Stock Warrants | $ 282,000 | $ 282,000 | ||||||||||||||
Exercise price of the Common Stock Warrants | $ 8.40 | $ 8.40 | ||||||||||||||
Covenant requirements minimum cash balance | $ 5,000,000 | |||||||||||||||
Secured Debt [Member] | October 2012 Secured Promissory Notes [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Additional debt cash balance | $ 2,000,000 | $ 2,000,000 | ||||||||||||||
Increase in amount available under loan agreement | 5,000,000 | |||||||||||||||
Secured Debt [Member] | October 2012 Secured Promissory Notes [Member] | Debt instrument maturity period year three [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 12.00% | 12.00% | ||||||||||||||
Secured Debt [Member] | October 2012 Secured Promissory Notes [Member] | Extended fourth year [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 13.00% | 13.00% | ||||||||||||||
Secured Debt [Member] | October 2012 Secured Promissory Notes [Member] | Extended fifth year [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 14.00% | 14.00% | ||||||||||||||
Secured Debt [Member] | April 2013 secured promissory note [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Unpaid Agent Fee | $ 172,000 | $ 172,000 | ||||||||||||||
Fees amount | 586,000 | 586,000 | ||||||||||||||
Additional credit facility financing-related costs and primarily legal fees | 66,000 | 66,000 | ||||||||||||||
Additional debt issued under amendment | 4,950,000 | |||||||||||||||
Debt issued in cash consideration and in partial conversion for cancellation of principal balance | 1,250,000 | |||||||||||||||
Amount borrowed under amended loan agreement | 12,450,000 | |||||||||||||||
Convertible debt, fair value | 3,459,000 | |||||||||||||||
Debt instrument, additional borrowings | 2,500,000 | |||||||||||||||
Promissory notes issued | 3,750,000 | |||||||||||||||
Fair value of Additional Common Stock Warrants issued | 352,000 | 352,000 | ||||||||||||||
Funds borrowed | $ 4,950,000 | $ 4,950,000 | ||||||||||||||
Secured Debt [Member] | October 2012 subordinated convertible note [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Convertible debt instrument, face value | 1,250,000 | |||||||||||||||
Convertible debt, fair value | $ 1,360,000 | $ 1,360,000 | ||||||||||||||
Secured Debt [Member] | June 2014 Secured Promissory Note [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 5.25% | 5.25% | ||||||||||||||
Debt instrument maturity date | Jun. 30, 2036 | |||||||||||||||
Debt instrument borrowing amount | $ 10,000,000 | |||||||||||||||
Prime rate | 3.25% | |||||||||||||||
Debt instrument, prime rate | 2.00% | 2.00% | ||||||||||||||
Debt instrument description | Promissory note ("June 2014 Secured Promissory Note") with the bank ("Lender") which bears interest at prime rate (3.25% as of March 31, 2015) plus 2.00% per annum. | |||||||||||||||
Increase in the interest rate | 5.25% | |||||||||||||||
Debt instrument monthly payment | $ 64,390 | |||||||||||||||
Debt instrument date of payment | Jul. 30, 2014 | |||||||||||||||
Required deposit balance | $ 1,560,000 |
Debt - Consideration Received,
Debt - Consideration Received, Fair Values of Notes, Common Stock Warrants Issued and Calculation of Gain on Extinguishment of Debt (Detail) - USD ($) | Apr. 10, 2013 | Apr. 30, 2013 | Mar. 31, 2015 |
Consideration received | |||
Total consideration received | $ 3,860,000 | ||
Notes and warrants issued | |||
Total fair value of notes and warrants issued | 3,811,000 | ||
Gain on extinguishment of debt | 49,000 | $ 49,000 | |
Secured Debt [Member] | October 2012 subordinated convertible note [Member] | |||
Consideration received | |||
Fair value of notes | $ 1,360,000 | 1,360,000 | |
Notes and warrants issued | |||
Fair value of notes | 1,360,000 | 1,360,000 | |
Secured Debt [Member] | April 2013 secured promissory note [Member] | |||
Consideration received | |||
Fair value of notes | 3,459,000 | ||
Cash | 2,500,000 | ||
Notes and warrants issued | |||
Principal balance of notes issued | 3,750,000 | ||
Debt discount | (291,000) | ||
Fair value of notes | 3,459,000 | ||
Fair value of Additional Common Stock Warrants issued | $ 352,000 | $ 352,000 |
Debt - Schedule of Activity Rel
Debt - Schedule of Activity Related to Secured Promissory Notes (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |
Debt, beginning balance | $ 22,303 |
Debt, ending balance | 22,270 |
October 2012 and April 2013 Secured Promissory Notes [Member] | |
Debt Instrument [Line Items] | |
Debt, beginning balance | 12,247 |
Additions | 0 |
Amortization of debt discount | 64 |
Debt, ending balance | 12,311 |
Principal payments | 0 |
October 2012 and April 2013 Secured Promissory Notes [Member] | Principal [Member] | |
Debt Instrument [Line Items] | |
Debt, beginning balance | 12,450 |
Additions | 0 |
Amortization of debt discount | 0 |
Debt, ending balance | 12,450 |
Principal payments | 0 |
October 2012 and April 2013 Secured Promissory Notes [Member] | Discount Related To Issuance Of Common Stock Warrants [Member] | |
Debt Instrument [Line Items] | |
Debt, beginning balance | (106) |
Additions | 0 |
Amortization of debt discount | 35 |
Debt, ending balance | (71) |
Principal payments | 0 |
October 2012 and April 2013 Secured Promissory Notes [Member] | Discount Related to the $3,750,000 Notes [Member] | |
Debt Instrument [Line Items] | |
Debt, beginning balance | (97) |
Additions | 0 |
Amortization of debt discount | 29 |
Debt, ending balance | (68) |
Principal payments | $ 0 |
Debt - Schedule of Activity R39
Debt - Schedule of Activity Related to Secured Promissory Notes (Parenthetical) (Detail) | Mar. 31, 2015USD ($) |
October 2012 and April 2013 Secured Promissory Notes [Member] | |
Debt Instrument [Line Items] | |
Promissory notes, issued | $ 3,750,000 |
Share-Based Plans - Additional
Share-Based Plans - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock options outstanding | 2,663,000 | |
Share-based awards available for grant | 2,113,000 | |
Share-based compensation expense | $ 1,090 | $ 1,522 |
Number of options granted | 0 | |
Number of options exercised | 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2014USD ($)ft² | Mar. 31, 2015USD ($)ft² | Dec. 31, 2014USD ($) | |
Operating Leased Assets [Line Items] | |||
Accrued commitment and contingencies | $ 1,750,000 | $ 1,750,000 | |
Estimated range of reasonably possible loss, minimum | 1,750,000 | 1,750,000 | |
Estimated range of reasonably possible loss, maximum | $ 4,000,000 | $ 4,000,000 | |
Non-contiguous office space [Member] | |||
Operating Leased Assets [Line Items] | |||
Office facility lease agreement | ft² | 24,500 | ||
Non-contiguous office space [Member] | Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Leased office facilities expiration period | Feb. 28, 2014 | ||
Non-contiguous office space [Member] | Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Leased office facilities expiration period | Oct. 31, 2016 | ||
Office and laboratory space one [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease agreement date | 2013-09 | ||
Office and laboratory space one [Member] | Amendment [Member] | |||
Operating Leased Assets [Line Items] | |||
Office facility lease agreement | ft² | 27,300 | ||
Lease agreement period | 60 months | ||
Monthly base rent | $ 44,000 | ||
Initial base rent term | 12 months | ||
Percentage of annual increase in base rent | 3.00% | ||
Lease commenced date | 2014-08 | ||
Office and laboratory space two [Member] | |||
Operating Leased Assets [Line Items] | |||
Office facility lease agreement | ft² | 17,400 | ||
Lease agreement period | 60 months | ||
Monthly base rent | $ 28,000 | ||
Percentage of annual increase in base rent | 3.00% | ||
Lease commenced date | 2014-08 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jun. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||||
Revenue recognized on sell-through basis relating to product purchased | $ 199,000 | $ 605,000 | ||
Deferred cost of product revenues to related parties | 251,000 | $ 333,000 | ||
Current deferred product revenues from related parties | 461,000 | 660,000 | ||
Recognized license revenues | 83,000 | 45,000 | ||
Syngenta Ventures [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue recognized on sell-through basis relating to product purchased | 324,000 | |||
Affiliate revenues percent | 5.00% | |||
Common shares sold | 600,000 | |||
Recognized license revenues | 324,000 | |||
Tremont Group, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue recognized on sell-through basis relating to product purchased | 199,000 | $ 277,000 | ||
Deferred cost of product revenues to related parties | 251,000 | 333,000 | ||
Current deferred product revenues from related parties | $ 461,000 | $ 660,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Sep. 02, 2015 | Aug. 31, 2015 | Aug. 20, 2015 | Sep. 30, 2015 | Aug. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | |||||||
Restricted cash and cash equivalents under covenants | $ 1,560,000 | $ 1,560,000 | |||||
Warrants exercise price | $ 8.40 | ||||||
Entities Affiliated with Waddell & Reed Financial, Inc. [Member] | Senior Secured Promissory Note Bearing Interest Rate at 8% [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Debt instrument, frequency of periodic payment of interest | Semi-annually | ||||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Warrants exercise price | $ 1.91 | ||||||
Warrants exercisable date | Aug. 20, 2023 | Oct. 2, 2017 | |||||
Loan agreement amendment date | Aug. 19, 2015 | ||||||
Subsequent Event [Member] | Senior Secured Promissory Note Bearing Interest Rate at 8% [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Consideration received under purchase agreement | $ 40,000,000 | ||||||
Subsequent Event [Member] | Entities Affiliated with Waddell & Reed Financial, Inc. [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Consideration received under purchase agreement | $ 40,000,000 | ||||||
Ownership percentage of outstanding common stock | 5.00% | ||||||
Subsequent Event [Member] | Entities Affiliated with Waddell & Reed Financial, Inc. [Member] | Senior Secured Promissory Note Bearing Interest Rate at 8% [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Debt instrument to be issued, principal amount | $ 40,000,000 | ||||||
Debt instrument, interest rate | 8.00% | ||||||
Debt instrument principal amount, payable three years | $ 10,000,000 | ||||||
Debt instrument principal amount, payable four years | 10,000,000 | ||||||
Debt instrument principal amount, payable five years | $ 20,000,000 | ||||||
Minimum percentage of acquisition of beneficial ownership considered as event of default | 40.00% | ||||||
Subsequent Event [Member] | James Iademarco [Member] | |||||||
Subsequent Event [Line Items] | |||||||
One-twelfth of prior base salary | $ 290,000 | ||||||
Salary rate entitlement | 8.3333% | ||||||
Subsequent Event [Member] | Loan [Member] | October 2012 and April 2013 Secured Promissory Notes [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Loan accrual interest rate | 18.00% | 12.00% | |||||
Maximum [Member] | Subsequent Event [Member] | Entities Affiliated with Waddell & Reed Financial, Inc. [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Number of common shares to be purchased from warrants | 4,000,000 | ||||||
Minimum [Member] | Subsequent Event [Member] | Entities Affiliated with Waddell & Reed Financial, Inc. [Member] | Senior Secured Promissory Note Bearing Interest Rate at 8% [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Restricted cash and cash equivalents under covenants | $ 15,000,000 |