Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 02, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CELLULAR DYNAMICS INTERNATIONAL, INC. | ||
Entity Central Index Key | 1482080 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 15,814,008 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $197,400 |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $34,408 | $62,029 |
Accounts receivable | 4,291 | 3,318 |
Inventories | 4,456 | 3,884 |
Prepaid expenses and other assets | 1,046 | 964 |
Total current assets | 44,201 | 70,195 |
Property and equipment, net | 3,832 | 2,052 |
Goodwill | 6,817 | 6,817 |
Intangible assets, net | 3,813 | 4,122 |
Debt issuance costs, net | 150 | 199 |
Other assets | 17 | 10 |
Total | 58,830 | 83,395 |
Current liabilities: | ||
Accounts payable | 1,815 | 1,811 |
Accrued liabilities | 3,150 | 3,361 |
Deferred revenue | 3,918 | 1,439 |
Current maturities of long-term debt | 4,541 | 18 |
Total current liabilities | 13,424 | 6,629 |
Long-term debt, less current portion | 7,590 | 11,879 |
Commitments and contingencies (Note 10) | ||
Shareholders' equity: | ||
Convertible preferred stock | 0 | 0 |
Common stock, $0.0001 par value — authorized, 100,000,000 shares at December 31, 2013 and December 31, 2014; issued and outstanding, 15,757,725 shares at December 31, 2013 and 15,814,008 at December 31, 2014 | 2 | 2 |
Additional paid-in capital | 175,433 | 171,907 |
Accumulated deficit | 137,619 | 107,022 |
Total shareholders' equity | 37,816 | 64,887 |
Total | $58,830 | $83,395 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred Stock Par Value (in dollars per share) | $0.01 | $0.01 |
Authorized Preferred Stock (in shares) | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock Outstanding (in shares) | 0 | 0 |
Common Stock Par Value (in dollars per share) | $0.00 | $0.00 |
Common Stock Authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock Issued (in shares) | 15,814,008 | 15,757,725 |
Common Stock Outstanding (in shares) | 15,814,008 | 15,757,725 |
Statement_of_Operations
Statement of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Product sales | $8,077 | $7,998 | $5,178 |
Collaborations, partnerships and other revenues | 8,615 | 3,886 | 1,404 |
Total revenues | 16,692 | 11,884 | 6,582 |
Costs and expenses: | |||
Cost of product sales | 2,436 | 2,302 | 2,089 |
Research and development | 22,435 | 16,622 | 14,301 |
Sales and marketing | 8,324 | 6,516 | 4,398 |
General and administrative | 12,750 | 10,707 | 8,024 |
Total costs and expenses | 45,945 | 36,147 | 28,812 |
Loss from operations | -29,253 | -24,263 | -22,230 |
Other (expense) income: | |||
Interest expense | -1,345 | -716 | -34 |
Other income | 1 | 21 | 0 |
Total other expense | -1,344 | -695 | -34 |
Net loss | ($30,597) | ($24,958) | ($22,264) |
Net loss per share of common stock, basic and diluted | ($1.94) | ($3.17) | ($12.89) |
Weighted average number of shares used in computing net loss per share of common stock, basic and diluted | 15,774,814 | 7,878,060 | 1,727,086 |
Shareholders_Equity_Statement
Shareholders' Equity Statement (USD $) | Total | Preferred Series A [Member] | Preferred Series B [Member] | Common [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2011 | $47,022 | $28,191 | $70,428 | $0 | $8,203 | ($59,800) |
Beginning Balance (in shares) at Dec. 31, 2011 | 2,914,187 | 5,572,000 | 1,713,355 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of Stock (in shares) | 1,660,092 | |||||
Issuance of stock | 20,985 | 20,985 | ||||
Exercise of stock options (in shares) | 20,296 | 20,296 | ||||
Exercise of stock options | 151 | 151 | ||||
Stock-based compensation | 1,097 | 1,097 | ||||
Net loss | -22,264 | -22,264 | ||||
Ending Balance at Dec. 31, 2012 | 46,991 | 28,191 | 91,413 | 0 | 9,451 | -82,064 |
Ending Balance (in shares) at Dec. 31, 2012 | 2,914,187 | 7,232,092 | 1,733,651 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of Stock (in shares) | 3,846,000 | |||||
Issuance of stock | 40,772 | 1 | 40,771 | |||
Conversion of Preferred Stock (in shares) | -2,914,187 | -7,232,092 | 10,146,279 | |||
Conversion of Preferred Stock | 0 | -28,191 | -91,413 | 1 | 119,603 | |
Issuance of stock options for intangible assets | 70 | 70 | ||||
Warrants issued with long-term debt | 241 | 241 | ||||
Exercise of warrants (in shares) | 8,208 | |||||
Exercise of warrants | 1 | 1 | ||||
Exercise of stock options (in shares) | 23,587 | 23,587 | ||||
Exercise of stock options | 155 | 155 | ||||
Stock-based compensation | 1,615 | 1,615 | ||||
Net loss | -24,958 | -24,958 | ||||
Ending Balance at Dec. 31, 2013 | 64,887 | 0 | 0 | 2 | 171,907 | -107,022 |
Ending Balance (in shares) at Dec. 31, 2013 | 0 | 0 | 15,757,725 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of stock options for intangible assets | 120 | 120 | ||||
Exercise of stock options (in shares) | 56,283 | 56,283 | ||||
Exercise of stock options | 345 | 345 | ||||
Stock-based compensation | 3,061 | 3,061 | ||||
Net loss | -30,597 | -30,597 | ||||
Ending Balance at Dec. 31, 2014 | $37,816 | $0 | $0 | $2 | $175,433 | ($137,619) |
Ending Balance (in shares) at Dec. 31, 2014 | 0 | 0 | 15,814,008 |
Statement_of_Cash_Flows
Statement of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net loss | ($30,597) | ($24,958) | ($22,264) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 1,103 | 800 | 1,086 |
Amortization of licenses, patents and other agreements | 584 | 522 | 347 |
Amortization of debt issuance costs and debt discount | 107 | 50 | 0 |
Stock-based compensation | 3,061 | 1,615 | 1,097 |
Other | -1 | -20 | 6 |
Changes in operating assets and liabilities: | |||
Accounts receivable | -973 | -660 | -1,735 |
Inventories | -572 | -1,503 | 344 |
Prepaid expenses and other current assets | -89 | -302 | -322 |
Accounts payable | 41 | 614 | -87 |
Accrued liabilities | -250 | 1,558 | 288 |
Accrued interest | 194 | 115 | 0 |
Deferred revenue | 2,479 | 869 | 236 |
Net cash used in operating activities | -24,913 | -21,300 | -21,004 |
Cash flows from investing activities: | |||
Purchases of property and equipment | -2,907 | -1,817 | -132 |
Proceeds from Sale of Property, Plant, and Equipment | 12 | 0 | 0 |
Payments to acquire licenses | -140 | -404 | -2,395 |
Net cash used in investing activities | -3,035 | -2,221 | -2,527 |
Cash flows from financing activities: | |||
Repayments of debt | -18 | -1,055 | -434 |
Proceeds from debt | 0 | 12,000 | 0 |
Payments of debt issuance costs | 0 | -222 | 0 |
Proceeds from exercise of stock options | 345 | 155 | 151 |
Proceeds from issuance of preferred stock | 0 | 0 | 20,985 |
Proceeds from issuance of common stock, net of offering costs | 0 | 40,772 | 0 |
Net cash provided by financing activities | 327 | 51,650 | 20,702 |
Net increase (decrease) in cash and cash equivalents | -27,621 | 28,129 | -2,829 |
Cash and cash equivalents — Beginning of period | 62,029 | 33,900 | 36,729 |
Cash and cash equivalents — End of period | 34,408 | 62,029 | 33,900 |
Supplemental disclosure of cash flow information — | |||
Cash paid for interest | 949 | 545 | 36 |
Supplemental information on noncash activities: | |||
Issuance of stock options for intangible assets | 120 | 70 | 0 |
Warrants issued with long-term debt | 0 | 261 | 0 |
Property and equipment not yet paid | 149 | 162 | 0 |
Licenses not yet paid | 15 | 25 | 0 |
Accrued interest converted to principal | $0 | $0 | $66 |
Description_of_business
Description of business | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Description of business | ||
1 | Description of business | |
Cellular Dynamics International, Inc. (the Company), was incorporated in Wisconsin in late 2007 under the name iPS Cells, Inc. (iPS). In July 2008, the Company acquired two companies—Cellular Dynamics International, Inc. (CDI) and Stem Cell Products, Inc. (SCP)—in a common stock merger transaction. Subsequent to the acquisitions, the combined entity was renamed Cellular Dynamics International, Inc. | ||
The Company develops and produces fully functioning human cells in industrial quantities to precise specifications. Its proprietary products include true human cells in multiple cell types (iCell products), human induced pluripotent stem cells (iPSCs) and custom iPSCs and iCell products (MyCell products). Its products provide standardized, easy-to-use, cost-effective access to the human cell, the smallest fully functioning operating unit of human biology. Customers use the Company's products, among other purposes, for drug discovery and screening; to test the safety and efficacy of their small molecule and biologic drug candidates; for stem cell banking; and in the research and development of cellular therapeutics. | ||
On June 27, 2013, the Company’s Board of Directors authorized a 1 for 9.75 reverse split of its Series A preferred stock, Series B preferred stock and common stock which was effective July 9, 2013. These financial statements give retroactive effect to the stock split. |
Basis_of_presentation_and_use_
Basis of presentation and use of estimates (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Text Block [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. Basis of presentation and use of estimates |
Basis of presentation and use of estimates – The accompanying financial statements have been presented in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions include primarily those required in the valuation of inventory, patents, licenses, goodwill, intangible assets, and property and equipment; the timing of revenue recognition; and the calculation of stock-based compensation. Management bases its estimates on certain assumptions, which it believes are reasonable in the circumstances, and while actual results could differ from those estimates, management does not believe that any change in those assumptions in the near term would have a significant effect on the Company’s financial position, results of operations or cash flows. |
Significant_accounting_policie
Significant accounting policies and supplemental financial information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Significant accounting policies and supplemental financial information | 3. Significant accounting policies and supplemental financial information | ||||||||||||
Cash and cash equivalents – The Company considers all highly liquid, short-term investments with original maturities of three months or less to be cash and cash equivalents. | |||||||||||||
Accounts receivable – The Company establishes an allowance for doubtful accounts based on a customer's ability and likelihood to pay. There was no allowance at either December 31, 2013 or December 31, 2014. | |||||||||||||
The Company does not accrue interest on past due amounts. Past due accounts are determined based on customer terms, the policy for write-offs and collection efforts is based upon individual account circumstances. | |||||||||||||
Inventories – Inventories are valued at the lower of cost or market using the weighted-average cost method. The weighted-average method examines total production volume and total labor and overhead over an appropriate historical period and establishes a weighted-average value of materials, overhead and labor to be assigned to each unit of finished goods inventory. | |||||||||||||
Inventory includes finished goods that may be used by the Company’s research and development, technical services and marketing groups. When such products are consumed internally they are expensed at their inventoried cost to the appropriate department. | |||||||||||||
Provisions, when required, for slow moving, excess and obsolete inventories are recorded to reduce inventory values from cost to their estimated net realizable values, based on product life cycle, development plans, product expiration and quality issues. | |||||||||||||
Inventories at December 31, 2013 and December 31, 2014, consisted of the following: | |||||||||||||
(Dollars in thousands) | December 31, | December 31, | |||||||||||
2013 | 2014 | ||||||||||||
Raw materials | $ | 1,658 | $ | 1,598 | |||||||||
Work in process | 547 | 436 | |||||||||||
Finished goods | 1,679 | 2,422 | |||||||||||
Total | $ | 3,884 | $ | 4,456 | |||||||||
Prepaid expenses and other current assets – Prepaid expenses and other current assets consist of insurance premiums, annual maintenance contracts and other miscellaneous payments and deposits. | |||||||||||||
Property and equipment – Property and equipment are recorded at cost and are depreciated using the straight-line method over the useful life of the assets, which is three to seven years. Leasehold improvements are depreciated over the shorter of their estimated useful life or the lease term. | |||||||||||||
Property and equipment at December 31, 2013 and December 31, 2014, consisted of the following: | |||||||||||||
(Dollars in thousands) | December 31, | December 31, | |||||||||||
2013 | 2014 | ||||||||||||
Leasehold improvements | $ | 451 | $ | 835 | |||||||||
Production and lab equipment | 4,815 | 7,274 | |||||||||||
Office and computer equipment | 546 | 1,354 | |||||||||||
Construction-in-progress | 932 | 162 | |||||||||||
6,744 | 9,625 | ||||||||||||
Less accumulated depreciation and amortization | (4,692 | ) | (5,793 | ) | |||||||||
Total | $ | 2,052 | $ | 3,832 | |||||||||
Impairment of long-lived assets – The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset may not be fully recoverable. An impairment loss would be recognized when the estimated future cash flows from the use of the asset are less than the carrying amount of that asset. No impairment losses were recorded in either 2013 or 2014. | |||||||||||||
Goodwill – The entire balance of goodwill resulted from the 2008 acquisition of two companies and represents the purchase price in excess of identifiable assets and in-process research and development acquired in that transaction. Goodwill is not amortized. The Company has a single reporting unit and all goodwill relates to that unit. | |||||||||||||
Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of net assets acquired. Goodwill is reviewed for impairment at least annually during the fourth quarter, or more frequently if an event occurs indicating the potential for impairment. The Company conducts an assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is more likely than not that the fair value of its reporting unit is less than its carrying amount, it then conducts a two-part test for impairment of goodwill. The qualitative factors which the Company may assess during the qualitative approach include, but are not limited to, macroeconomic conditions, industry and market considerations, the overall financial performance of the Company, and the excess of prior year estimates of fair value compared to carrying value. Based on this qualitative assessment, management concluded that as of the 2014 annual impairment test date, it was more likely than not that the fair value of the reporting unit was greater than its carrying value, and no further testing was performed. | |||||||||||||
The Company performed its annual assessment for goodwill impairment in the fourth quarters of 2013 and 2014, noting no impairment in either year. The Company has not recorded any impairment of goodwill since the amount was recorded in 2008. | |||||||||||||
Intangible assets – Intangible assets consist of licenses, patents, trade name and a noncompetition agreement with a scientific founder. | |||||||||||||
The Company expenses patent related costs as incurred because, even though the Company believes the patents and underlying processes have continuing value, the amount of future benefits to be derived therefrom is uncertain. Purchased patents and licenses are capitalized and amortized on a straight-line basis over the useful life of the patent or license, which range from one to twenty years. When patents reach a mature stage, any associated legal, defense and maintenance costs are expensed as incurred. | |||||||||||||
Accrued liabilities – Accrued expenses include accrued payroll, accrued vacation, accrued incentive compensation, accrued royalties, sales and use taxes payable and other various unpaid expenses. | |||||||||||||
Accrued liabilities at December 31, 2013 and December 31, 2014, consisted of the following: | |||||||||||||
(Dollars in thousands) | December 31, | December 31, | |||||||||||
2013 | 2014 | ||||||||||||
Accrued payroll, vacation and employee-related expenses | $ | 1,024 | $ | 1,173 | |||||||||
Accrued incentive compensation | 1,229 | 612 | |||||||||||
Accrued royalties | 584 | 721 | |||||||||||
Accrued incentives for sales staff | 202 | 224 | |||||||||||
Other | 322 | 420 | |||||||||||
Total | $ | 3,361 | $ | 3,150 | |||||||||
Deferred revenue – Deferred revenue represents payments received, but not yet earned. | |||||||||||||
Deferred revenue at December 31, 2013 and December 31, 2014, consisted of the following: | |||||||||||||
(Dollars in thousands) | 31-Dec-13 | 31-Dec-14 | |||||||||||
CIRM | $ | 924 | $ | 3,142 | |||||||||
Coriell | — | 189 | |||||||||||
Lilly | 280 | 258 | |||||||||||
Other | 235 | 329 | |||||||||||
Total | $ | 1,439 | $ | 3,918 | |||||||||
Debt discounts – The Company recorded the fair value of the warrants issued in connection with the Credit Agreement, see Note 5, as a debt discount. The debt discount is amortized to interest expense over a period ending on the earlier of the maturity date of the notes or the date on which the notes are repaid. | |||||||||||||
Revenue recognition – The Company recognizes revenue in accordance with Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 104, Revenue Recognition, and Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 605, Revenue Recognition. | |||||||||||||
Product sales – The Company recognizes product sales revenue when the following four basic revenue criteria are met: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the fee is fixed or determinable; and (iv) collectability is reasonably assured. Product returns and replacements historically have not been material and are not expected to be material. | |||||||||||||
In June 2012, the Company finalized a supply and distribution agreement with Life Technologies Corporation whereby they will manufacture certain cell media for the Company and serve as its sole distributor of these products to third parties. The Company is recognizing this revenue in accordance with ASC 605-45—Revenue Recognition—Principal Agent Consideration. ASC 605-45 specifies various indicators that support the reporting of revenue on a gross basis, including inventory risk, changes to the product and discretion in changing the supplier. The Company does not believe that this agreement includes these characteristics and therefore is recognizing the revenue on a net basis. | |||||||||||||
Collaborations, partnerships and other revenues—The Company recognizes revenue from collaborations, services and other arrangements when its contractual services are performed, provided collectability is reasonably assured. Collaborations may include upfront non-refundable payments, development milestone payments and research and development funding. Principal costs under these agreements include the Company’s personnel conducting research and development, supplies consumed in that process and allocated overhead. | |||||||||||||
The Company recognizes revenues from non-refundable up-front license fees received under collaboration agreements ratably over the estimated performance period of the collaboration agreement. The estimated performance period is typically based upon detailed project plans completed by the project managers, who establish in regular discussion and collaboration with a counterpart at the customer, key project activities, milestones and resources. If the estimated performance period is subsequently modified, the Company will modify the period over which the up-front license fee is recognized on a prospective basis. | |||||||||||||
The Company recognizes revenue from milestone payments received under collaboration agreements when earned, provided that the milestone event is substantive, its achievability was not reasonably assured at the inception of the agreement, the Company has no further performance obligations relating to the event and collectability is reasonably assured. If these criteria are not met, the Company recognizes milestone payments ratably over the remaining period of its performance obligations under the collaboration agreement. | |||||||||||||
For a milestone to be considered substantive, the payment associated with its achievement must have all of the following characteristics: | |||||||||||||
• | relate solely to past performance; | ||||||||||||
• | be reasonable, relative to all of the elements and payment terms in the arrangement; and | ||||||||||||
• | be commensurate with either the Company’s effort required to achieve the milestone or the enhanced value of the delivered item(s) as a result of the milestone achievement. | ||||||||||||
As of December 31, 2014, the Company has recognized $350,000 of milestone related revenue in association with its contract with Lilly - see Multiple-element arrangements section below. In 2012, the Company sent invoices of $125,000 for milestones achieved. Of the achieved milestones, $25,000 was recognized as revenue in 2012 under the milestone method, while the remaining $100,000, which related to milestones that were not considered substantive, was deferred and accounted for ratably over the remaining period of the Company’s performance obligations under the contract. In 2013 and 2014 the Company recognized $100,000 and $225,000, respectively, of revenue under the milestone method. | |||||||||||||
Payments, such as grants or awards, received for the reimbursement of expenses for research and development activities are recorded as revenue at the gross amount of the reimbursement. Costs associated with these reimbursements are reflected as a component of research and development expenses. | |||||||||||||
In November, 2013, the Company announced that it had received a Notice of Grant Award (NGA) for $16 million from CIRM to create a human induced pluripotent stem cell biobank from 3,000 individuals. The agreement runs through October 31, 2016. Related to the CIRM grant, in December 2013, the Company announced that it had entered into a four year $6.3 million agreement with Coriell to produce distribution cell banks from the iPSCs produced for CIRM. In accounting for revenue for the agreements mentioned above, the Company will use the Proportional Performance Method whereby revenue will be recognized in proportion to the level of service, as measured by labor and materials cost, provided on a systematic and rational basis. As of December 31, 2014, the Company has received payments totaling $5.8 million from CIRM and has recognized $2.7 million as revenue, resulting in deferred revenue of $3.1 million. As of December 31, 2014, the Company has invoiced Coriell for $651,000 of which $462,000 was recognized as revenue. | |||||||||||||
Multiple-element arrangements – Arrangements with customers may include multiple deliverables, including collaborations or agreements that combine products, research and development, participation in joint steering committees and other deliverables. For the Company’s multiple-element arrangements, deliverables are separated into more than one unit of accounting when (i) the delivered element(s) have value to the customer on a stand-alone basis and (ii) delivery of the undelivered element(s) is probable and substantially in the control of the Company. Revenue is then allocated to each unit of accounting based on the relative selling price of each unit of accounting based first on Vendor Specific Objective Evidence (“VSOE”) if it exists, based next on Third Party Evidence (“TPE”) if VSOE does not exist, and, finally, if both VSOE and TPE do not exist, based on Best Estimated Selling Price (“BESP”). | |||||||||||||
VSOE—In many instances, products are sold separately in stand-alone arrangements. The Company determines VSOE based on its normal pricing and discounting practices for the specific product when sold separately. | |||||||||||||
TPE—When VSOE does not exist, the Company attempts to determine TPE based on competitor prices for similar deliverables when sold separately. Given the novel nature and early stage of the Company’s products, it is difficult to obtain the pricing of similar products with similar functionality sold by other companies on a stand-alone basis. Therefore, the Company is typically not able to determine TPE. | |||||||||||||
BESP—The objective of BESP is to determine the price at which the Company would transact a sale if the deliverable were sold on a stand-alone basis. When both VSOE and TPE do not exist, typically in the case of research and development and joint steering committee elements, the Company determines BESP by considering the cost of the activities required by the agreement and the rights of the Company and its customers to the resulting technology. | |||||||||||||
After separating the elements of an arrangement into the appropriate units of accounting, revenue is recognized for each separate unit of accounting based on the nature of the revenue as described above. | |||||||||||||
In accounting for the multiple-element arrangements, revenue is limited to the lesser of 1) the cumulative amount of payments received or invoiced; or 2) the cumulative amount of revenue earned, as determined using the pro-rata allocation and delivery status or progress of each element. | |||||||||||||
In June 2012, the Company finalized a $5 million multiple-element agreement with Lilly that was scheduled to run through December 2014. Under the terms of the agreement, Lilly would order a minimum number of units of iCell products each quarter through the fourth quarter of 2014 at a predetermined price for each year. If Lilly failed to order the minimum number of units, the Company could choose a commercial iCell type for the shortfall and invoice Lilly for the same. In addition, through December 31, 2014, the Company also reprogramed a specified number of donor samples provided by Lilly, and invoiced Lilly for these MyCell products according to predetermined pricing tiers. The agreement also included both periodic and milestone payments related to meetings and decisions of a joint steering committee and the custom development of two different cell types. | |||||||||||||
In December 2012, the Company finalized a one year $1.3 million multiple-element agreement with AstraZeneca UK Limited (AstraZeneca). Under the terms of the agreement, AstraZeneca agreed to order a minimum number of units of commercial iCell products, at a predetermined price, prior to December 31, 2013. During the term, the Company was to reprogram donor samples and invoice AstraZeneca for any such MyCell products. The last of the Company's obligations under this agreement were substantially completed in early 2014. In addition, AstraZeneca agreed to provide the Company with payments upon the achievement of certain milestones related to its attempts to develop, manufacture and commercially release a custom cell type. | |||||||||||||
Changes in judgments and estimates regarding application of these revenue recognition guidelines as well as changes in facts and circumstances could result in a change in the timing or amount of revenue recognized in future periods. During 2012, 2013 and 2014, the Company did not have any significant changes in estimates related to the agreements discussed above. | |||||||||||||
Research and development – Research and development costs are expensed as incurred. Research and development costs primarily consist of salaries and other personnel costs, supplies, amortization of patents and licenses, minimum royalties and royalty payments related to Collaborations, partnerships and other revenues and miscellaneous other expenses for facilities and occupancy costs. Other research and development expenses include fees paid to consultants and outside service providers and finished goods used in research and development. | |||||||||||||
Advertising costs – The Company expenses advertising costs as incurred. The Company incurred advertising costs of $110,000 in 2012, $220,000 in 2013 and $212,000 in 2014. | |||||||||||||
Stock-based compensation – All share-based payment awards made to employees, consultants (including science advisors) and directors are measured and recognized based on estimated fair values. | |||||||||||||
Net loss per share of common stock – The Company’s basic net loss per share of common stock is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share of common stock is computed by dividing the net loss by the weighted-average number of potential common shares outstanding for the period determined using the treasury-stock method. For purposes of this calculation, the following potential common shares were excluded because including them would have been anti-dilutive: | |||||||||||||
December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Preferred series A | 2,914,187 | — | — | ||||||||||
Preferred series B | 7,232,092 | — | — | ||||||||||
Common stock warrants | 8,208 | 28,406 | 28,406 | ||||||||||
Common stock options | 1,617,875 | 2,388,394 | 2,759,770 | ||||||||||
11,772,362 | 2,416,800 | 2,788,176 | |||||||||||
Comprehensive loss – Comprehensive loss is equal to net loss as presented in the accompanying statements of operations. | |||||||||||||
Segment reporting – ASC 280, “Segment Reporting” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. The Company determined it has one operating segment. Disaggregation of the Company’s operating results is impracticable, because the Company’s research and development activities and its assets overlap, and management reviews its business as a single operating segment. Thus, discrete financial information is not available by more than one operating segment. | |||||||||||||
Product information – The following table provides Product sales revenue by product: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
(Dollars in thousands) | 2012 | 2013 | 2014 | ||||||||||
iCell Cardiomyocytes | $2,610 | $4,787 | $3,175 | ||||||||||
iCell Neurons | 2,256 | 2,428 | 3,317 | ||||||||||
MyCell | — | 222 | 857 | ||||||||||
Other | 312 | 561 | 728 | ||||||||||
Total | $5,178 | $7,998 | $8,077 | ||||||||||
Collaborations, partnerships and other revenue information - The following table provides Collaborations, partnerships and other revenues by significant agreement or type: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
(Dollars in thousands) | 2012 | 2013 | 2014 | ||||||||||
CIRM/Coriell | $ | — | $ | 182 | $ | 3,008 | |||||||
MCOW | 440 | 533 | 1,144 | ||||||||||
Collaborative cell development | 728 | 1,857 | 1,287 | ||||||||||
iCell Hepatocytes | 127 | 808 | 1,796 | ||||||||||
Prototype cells | — | 381 | 777 | ||||||||||
Other | 109 | 125 | 603 | ||||||||||
Total | $ | 1,404 | $ | 3,886 | $ | 8,615 | |||||||
Geographical information – The following table provides percentage of total revenues by region, based on shipping locations or, in the case of CIRM, the customer location: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
United States of America | 66 | % | 56 | % | 67 | % | |||||||
Europe | 24 | % | 38 | % | 28 | % | |||||||
Japan | 5 | % | 5 | % | 4 | % | |||||||
Other | 5 | % | 1 | % | 1 | % | |||||||
Total | 100 | % | 100 | % | 100 | % | |||||||
In 2012 outside of the United States of America, no country accounted for over 10% of revenues. In 2013, sales to customers in the United Kingdom accounted for 12% of total revenue, while sales to customers in Switzerland accounted for 11% of total revenue. In 2014, sales to customers in Switzerland accounted for 15% of total revenue. | |||||||||||||
Major customers – During 2012, 2013 and 2014, the Company had several large biopharmaceutical customers that individually accounted for greater than 10% of its total revenue in one or more of the periods. Lilly accounted for 18% and 18% of total revenue for both 2012 and 2013. GlaxoSmithKline plc accounted for 11% of total revenue in 2012. AstraZeneca accounted for 15% of total revenue in 2013. Hoffman-La Roche Inc. (Roche) and CIRM accounted for 10% and 15%, respectively, of total revenue in 2014. | |||||||||||||
As of December 31, 2013, receivables from Lilly, AstraZeneca and Roche accounted for 21%, 17% and 11%, respectively, of total accounts receivable. As of December 31, 2014, receivables from Lilly, Roche and the Medical College of Wisconsin (MCOW) accounted for 16%, 15% and 13%, respectively, of total accounts receivable. | |||||||||||||
Concentration of credit risk and other risks and uncertainties – As of December 31, 2014 the Company had $24.6 million invested in a 100% U.S. Treasury Securities Money Market Fund and $1.9 million in a U.S. Government Money Market Fund. An investment in a money market fund is not insured or guaranteed. The Company's remaining cash was deposited with one major financial institution. These deposits exceed federally insured limits. The Company has not experienced any losses in such accounts and believes that the Company is not exposed to any significant risk on these balances. | |||||||||||||
The Company is currently not profitable and no assurance can be provided that it will ever be profitable. The Company is subject to risks common to companies in the biotechnology industry including, but not limited to, new technological innovations, dependence on key personnel, dependence on key suppliers, protection of proprietary technology, the validity of and continued access to its owned and licensed intellectual property, compliance with government regulations, uncertainty of widespread market acceptance of products and the need to obtain additional financing. The Company's products include materials subject to rapid technological change. Certain materials used in manufacturing have relatively few alternative sources of supply and establishing additional or replacement suppliers for such materials cannot be accomplished quickly. While the Company has ongoing programs to minimize the adverse effect of such uncertainty, and the Company considers technological change in estimating allowances, uncertainty continues to exist. | |||||||||||||
The Company believes its cash balance is sufficient to meet its needs in 2015. However, it may need to raise additional capital to expand the commercialization of its products, fund its operations and further its research and development activities. | |||||||||||||
Fair value of financial instruments – The carrying amounts of financial instruments, which include cash and cash equivalents, accounts receivable and accounts payable, approximate their respective fair values due to the relatively short-term nature of these instruments. The Company believes the carrying value of long-term debt as of December 31, 2014 is also approximately equal to its fair value. | |||||||||||||
ASC Topic 820, Fair Value Measurement, establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include Level 1, defined as observable inputs, such as quoted market prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions. The Company uses the market approach and Level 1 inputs to value its cash equivalents. | |||||||||||||
Recent accounting pronouncements – In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entities Ability to Continue as a Going Concern "ASU No. 2014-15", which is included in Accounting Standards Codification 205, Presentation of Financial Statements. ASU No. 2014-15 requires management to assess an entity's ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. ASU No. 2014-15 will be effective for the Company starting in the first quarter of fiscal year 2017. Early application is permitted. The Company is currently evaluating the impact the adoption of ASU No. 2014-15 will have on its financial statements. | |||||||||||||
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers "ASU No. 2014-09", which supersedes nearly all accounting standards for revenue recognition. ASU No. 2014-09 requires that an entity recognize revenue upon transferring promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 will be effective for the Company starting in the first quarter of fiscal year 2017. Early application is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact the adoption of ASU No. 2014-09 will have on its financial statements. |
Intangible_assets
Intangible assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||||||
Intangible assets | ||||||||
4 | Intangible assets | |||||||
Intangible assets and accumulated amortization balances at December 31, 2013 and December 31, 2014, are as follows: | ||||||||
(dollars in thousands) | December 31, | December 31, | ||||||
2013 | 2014 | |||||||
Trade name | $ | 13 | $ | 13 | ||||
Licenses and patents | 4,578 | 4,722 | ||||||
Non-competition agreements | 641 | 761 | ||||||
5,232 | 5,496 | |||||||
Less accumulated amortization: | ||||||||
Trade name | (13 | ) | (13 | ) | ||||
Licenses and patents | (746 | ) | (1,152 | ) | ||||
Non-competition agreements | (351 | ) | (518 | ) | ||||
(1,110 | ) | (1,683 | ) | |||||
Total, net | $ | 4,122 | $ | 3,813 | ||||
As of December 31, 2013 and 2014, the trade name was fully amortized. The remaining weighted-average useful lives of the other intangible assets as of December 31, 2014 are as follows: | ||||||||
Licenses and patents | 11.8 years | |||||||
Non-competition agreements | 5.2 years | |||||||
The future amortization of intangible assets recorded as of December 31, 2014 is as follows: | ||||||||
(Dollars in thousands) | ||||||||
Years ending December 31, | Amount | |||||||
2015 | $ | 564 | ||||||
2016 | 428 | |||||||
2017 | 385 | |||||||
2018 | 333 | |||||||
2019 | 330 | |||||||
Thereafter | 1,773 | |||||||
$ | 3,813 | |||||||
Amortization expense was $347,000, $522,000 and $584,000 for 2012, 2013 and 2014, respectively. | ||||||||
A portion of the July 30, 2013 stock option grant to a scientific founder of the Company was issued in exchange for extending his non-competition agreement from December of 2015 to July of 2016. As of the grant date, the Company increased the value of the non-competition agreement by $70,000 and began amortizing that amount through July of 2016. A portion of a March 2014 stock option grant made to the same scientific founder of the Company was issued in exchange for extending his non-competition agreement from July 2016 to July 2017. As of the grant date, the Company increased the value of the non-competition agreement by $120,000 and began amortizing that amount through July 2017. |
Longterm_debt
Long-term debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-term debt | ||||||||
5 | Long-term debt | |||||||
Long-term debt at December 31, 2013 and 2014, consists of the following: | ||||||||
(Dollars in thousands) | December 31, | December 31, | ||||||
2013 | 2014 | |||||||
Term loan credit agreement, net of debt discount | $ | 11,879 | $ | 12,131 | ||||
License agreements | 18 | — | ||||||
11,897 | 12,131 | |||||||
Less current portion | (18 | ) | (4,541 | ) | ||||
Total | $ | 11,879 | $ | 7,590 | ||||
On June 27, 2013, the Company entered into a term loan credit agreement (the “Credit Agreement”) with Sixth Floor Investors LP ("Sixth Floor"), as administrative agent, and the other lenders party thereto (the “Lenders”). Under the Credit Agreement, on June 28, 2013, the Company borrowed $12.0 million. | ||||||||
The term of the Credit Agreement is four years. Outstanding balances bear interest at 6.5% per annum plus the greater of 2% or one-month LIBOR. Interest payments are made monthly in arrears. Principal will be payable in 30 monthly installments, beginning in February 2015. The Credit Agreement provides for an exit fee of 5.0% of the total amount borrowed under the facility, due upon final repayment; a 0.5% facility fee, which was paid upon execution of the Credit Agreement; a quarterly administrative fee of $2,500; and the reimbursement of certain fees and expenses of the Lenders. In the event of prepayment, other than regularly scheduled installments and mandatory prepayments, a premium of 1.0% to 2.0% of the then-outstanding balance, dependent upon the timing of the prepayment, would be incurred. | ||||||||
The Credit Agreement does not allow the Company to incur or permit to exist additional debt, except for liabilities arising with respect to customary indemnification contracts entered into in the ordinary course of business. The Company used a portion of the proceeds of the loan to repay the remaining balances due to the Wisconsin Economic Development Corporation under two promissory notes. | ||||||||
The Credit Agreement contains customary affirmative and negative covenants and events of default, but does not include financial covenants. The Credit Agreement restricts the Company’s ability to, among other things, sell certain assets, engage in a merger or change in control transaction, incur debt, pay cash dividends, enter into transactions with affiliates and make investments. The Credit Agreement also contains events of default that are customary for credit facilities of this type, including payment defaults, covenant defaults, defaults related to insolvency and events of default relating to liens, judgments, material misrepresentations and the occurrence of certain material adverse events. | ||||||||
In connection with the loan, the Lenders were issued detachable warrants to purchase shares of our Series B preferred stock. The warrants have since been converted to warrants to purchase shares of common stock, see Note 6. A total of 28,406 warrants were issued in respect of the loan, each with an exercise price per share equal to the initial public offering ("IPO") price per share in the Company's initial public offering or $12.68 if an offering was not completed before August 1, 2013. As of the date of our IPO, the strike price on these warrants was established at the IPO price per share of $12.00. | ||||||||
The warrants have a 10 year term. The warrants contain no mandatory redemption features and no repurchase obligations requiring the transferring of assets and, once issued, will relate to a fixed number of shares, except for customary anti-dilution adjustments. | ||||||||
At the time of issuance, the relative fair value of the warrants was estimated at $261,000 using the Black- Scholes method and recorded as a debt discount against the notes. The warrants had a strike price that would have been adjusted if the Company had not completed its initial public offering prior to August 1, 2013. Due to this initial variability in exercise price, the warrants were accounted for as a liability when issued. As of the IPO date, when the exercise price was no longer variable, the Company revalued the warrants and reclassified the remaining value to equity. The revaluation resulted in a $20,000 gain that was recorded to Other income in the statements of operations. |
Shareholders_equity
Shareholders' equity | 12 Months Ended | |
Dec. 31, 2014 | ||
Equity [Abstract] | ||
Stockholders' equity | ||
6 | Shareholders' equity | |
On July 30, 2013, the Company closed its IPO of 3,846,000 shares of its common stock. The public offering price of the shares sold in the offering was $12.00 per share. The total gross proceeds from the offering to the Company were $46.2 million. After deducting underwriting discounts and commissions and offering expenses payable by the Company, the aggregate net proceeds received by the Company totaled approximately $40.8 million. | ||
Immediately prior to the consummation of the IPO, all outstanding shares of Series A and Series B preferred stock were converted into shares of common stock on a one-for-one basis, and warrants to purchase Series B preferred stock were converted into warrants to purchase shares of common stock on a one-for-one basis. In addition, in connection with the IPO, warrants to purchase 8,208 shares of common stock were exercised at a strike price of $0.10 per share. | ||
In connection with the IPO, the Company amended and restated its articles of incorporation to authorize 100,000,000 shares of common stock and 10,000,000 shares of preferred stock. As of December 31, 2014, no shares of preferred stock have been issued. |
Stock_options_and_restricted_c
Stock options and restricted common stock | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stock options and restricted common stock | 7. Stock options and restricted common stock | ||||||||
The Company's board of directors adopted and its shareholders approved the 2013 Equity Incentive Plan (the “2013 Plan”), under which the Company approved option grants to its directors and executive officers. The 2013 Plan and these option grants became effective on the closing of the IPO. As of that same date, the Company discontinued the granting of options under the 2008 Equity Incentive Plan (the "2008 Plan"). | |||||||||
The options are contingent on the participants' continued employment or other service and are subject to forfeiture if employment terminates for any reason. To date, the Company has granted both incentive stock options and non-qualified stock options. The 2008 Plan and 2013 Plan also provide certain employees accelerated vesting in the event of changes in control. | |||||||||
The Company utilizes the Black-Scholes option-pricing model to determine the fair value of option grants. When the option grants have the characteristics of a "plain-vanilla" grant the expected term is based on the simplified method as prescribed by Staff Accounting Bulletin ("SAB") No. 107 and SAB No. 110. In the event that the options do not have such characteristics the Company bases the expected term on items such as expiration dates and other factors unique to the grantee. The risk-free interest rate assumptions are based on the U.S. Treasury bond rates appropriate for the expected term in effect at the time of grant. The expected volatility is based on calculated enterprise value volatilities for publicly traded companies in the same industry and general stage of development. The forfeiture rates are based on historical experience for similar classes of employees. The dividend yield is based on expected dividends at the time of grant. Prior to the Company's IPO, the determinations of fair values were based on, among other things, valuation analyses, review of historical financial results, business milestones, financial forecasts and business outlook as of the grant dates. Total enterprise value ranges and the total equity value ranges were estimated utilizing both the income approach and the market approach guidelines. Upon completion of the IPO the common stock was valued by reference to the Company's publicly traded price. | |||||||||
Assumptions used to value the most recent option grants were as follows: | |||||||||
2012 | 2013 | 2014 | |||||||
Estimated expected term | 6 years | 6 to 8 years | 1 to 8 years | ||||||
Risk-free interest rate | 0.98 | % | 1.70% to 2.22% | 0.18% to 2.38% | |||||
Expected volatility assumption | 66 | % | 64% to 68% | 43% to 66% | |||||
Forfeiture rate | 0% to 7% | 0% to 7% | 0% to 6% | ||||||
Dividend yield assumption | — | % | — | % | — | % | |||
Option awards to consultants, advisors or other independent contractors have been granted with an exercise price equal to the market price of the Company’s stock at the date of the grant, with 10-year contractual terms and vesting dependent upon whether the individual continues to provide services to the Company. The value of stock options to these parties is measured at the then-current market value as of financial reporting dates and compensation cost is recognized for the net change in the fair value of the options for the reporting period, until vesting terms are met. In determining the fair value of options granted to consultants, advisors and other independent contractors, the Company uses the Black-Scholes valuation model in a manner consistent with its use in determining the fair value of options granted to employees and directors. The options that vest are adjusted, for the last time, to the then-current fair value and compensation cost is recognized accordingly. | |||||||||
The number of shares available for grant under the Company's Equity Incentive Plans, as amended (the "Plans") were as follows: | |||||||||
2008 Plan | 2013 Plan | Total | |||||||
Available for grant — January 1, 2012 | 243,665 | — | 243,665 | ||||||
Plan amendment | 262,256 | — | 262,256 | ||||||
Grants | (99,187 | ) | — | (99,187 | ) | ||||
Forfeitures | 6,954 | — | 6,954 | ||||||
Available for grant — December 31, 2012 | 413,688 | — | 413,688 | ||||||
Plan adjustments and amendments | (421,371 | ) | 831,659 | 410,288 | |||||
Grants | — | (812,116 | ) | (812,116 | ) | ||||
Forfeitures | 7,683 | 10,327 | 18,010 | ||||||
Available for grant — December 31, 2013 | — | 29,870 | 29,870 | ||||||
Plan adjustments and amendments | (84,494 | ) | 630,309 | 545,815 | |||||
Grants | — | (599,311 | ) | (599,311 | ) | ||||
Forfeitures | 84,494 | 87,158 | 171,652 | ||||||
Available for grant — December 31, 2014 | — | 148,026 | 148,026 | ||||||
A summary of option activity under the Plans as of December 31, 2014 and changes during the period then ended were as follows: | |||||||||
Options | Weighted- | Weighted- | |||||||
average | average | ||||||||
exercise | remaining | ||||||||
price | contractual | ||||||||
term | |||||||||
Outstanding — January 1, 2012 | 1,545,938 | $ | 8.09 | 8.42 | |||||
Granted | 99,187 | 12.68 | |||||||
Exercised | (20,296 | ) | 7.41 | ||||||
Forfeited | (6,954 | ) | 12.19 | ||||||
Outstanding — December 31, 2012 | 1,617,875 | 8.39 | 7.63 | ||||||
Granted | 812,116 | 12.31 | |||||||
Exercised | (23,587 | ) | 6.55 | ||||||
Forfeited | (18,010 | ) | 11.34 | ||||||
Outstanding — December 31, 2013 | 2,388,394 | 9.7 | 7.63 | ||||||
Granted | 599,311 | 14.54 | |||||||
Exercised | (56,283 | ) | 6.14 | ||||||
Forfeited | (171,652 | ) | 11.33 | ||||||
Outstanding — December 31, 2014 | 2,759,770 | $ | 10.72 | 7.14 | |||||
Vested as of December 31, 2014 | 1,641,991 | $ | 8.86 | 6.14 | |||||
Vested or expected to vest as of December 31, 2014 | 2,746,571 | $ | 10.71 | 7.13 | |||||
Exercisable as of December 31, 2014 | 1,779,870 | $ | 9.16 | 6.23 | |||||
Under the terms of the 2008 Plan, option grants are immediately exercisable. If a participant exercises unvested options, the shares received from the exercise are considered restricted shares and the participant's rights thereto remain subject to the original vesting schedule of the options. At December, 31, 2012, 2013 and 2014 there were no such restricted shares. Under the terms of the 2013 Plan, options are not exercisable until vested. | |||||||||
The weighted-average grant-date fair value of stock options granted during 2012, 2013 and 2014 was $4.10, $8.31 and $9.65 per share, respectively. The aggregate intrinsic value of outstanding stock options was $70,000 as of December 31, 2014. At December 31, 2014 total compensation cost not yet recognized that related to nonvested awards was $7.1 million, which was expected to be recognized over a weighted-average period of 2.77 years. That amount excludes options issued in exchange for and accounted as intangible assets. See Note 4. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Taxes | Income Taxes | ||||||||
The Company recognizes deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carryforwards. Deferred tax balances primarily relate to net operating losses. The Company also established a valuation allowance to reflect the likelihood of realization of deferred tax assets. Realization of deferred tax assets, including those related to the U.S. net operating loss carryforwards, are dependent upon future earnings, if any, of which the timing and amount are uncertain. | |||||||||
As of December 31, 2014, the Company has net operating loss carryforwards for tax purposes of approximately $130.0 million for federal and $97.0 million for state. These federal net operating losses begin to expire in 2024 and the state net operating losses begin to expire in 2019. The carryforwards are subject to the Internal Revenue Code Section 382, which places a limitation on the amount of taxable income that can be offset by net operating losses after a change in ownership. In addition, the Company has federal tax credit carryforwards of $3.3 million and state tax credits of $4.5 million. The credits begin to expire in 2025 and 2016, respectively. | |||||||||
The components of the net deferred tax asset with the approximate income tax effect of each type of carryforward, credit and temporary differences are as follows. | |||||||||
(Dollars in thousands) | 31-Dec-13 | 31-Dec-14 | |||||||
Deferred tax assets | |||||||||
Operating loss carryforwards | $ | 41,141 | $ | 50,387 | |||||
Tax credit carryforwards | 5,529 | 6,290 | |||||||
Other temporary differences | 2,327 | 3,599 | |||||||
Tax assets before valuation allowance | 48,997 | 60,276 | |||||||
Less: valuation allowance | (48,997 | ) | (60,276 | ) | |||||
Net deferred taxes | $ | — | $ | — | |||||
A valuation allowance to reduce the deferred tax assets is reported if, based on the weight of the evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has incurred significant losses since its inception and due to the uncertainty of the amount and timing of future taxable income, management has determined that a $49.0 million and $60.3 million valuation allowance at December 31, 2013 and 2014, respectively, is necessary to reduce the tax assets to the amount that is more likely than not to be realized. | |||||||||
The effective tax rate differs from the statutory tax rate due to the following: | |||||||||
Year ended December 31, | |||||||||
2012 | 2013 | 2014 | |||||||
U.S. Federal statutory rate | 35 | % | 35 | % | 35 | % | |||
State taxes | 5 | 5 | 1.3 | ||||||
Research credits | — | 13.3 | 2.5 | ||||||
Stock-based compensation | (0.5 | ) | (0.5 | ) | (0.1 | ) | |||
Other | (0.2 | ) | (0.1 | ) | (0.2 | ) | |||
Valuation allowance | (39.3 | ) | (52.7 | ) | (38.5 | ) | |||
— | % | — | % | — | % | ||||
The Company has evaluated uncertain tax positions as of December 31, 2013 and 2014 and determined a reserve for such positions and any associated interest and penalties is not necessary. | |||||||||
All of the Company's tax years are subject to examination by the U.S. and state tax authorities due to the carryforward of unutilized net operating losses. | |||||||||
The Company does not expect there will be a change in the unrecognized tax benefits within the 12 months following December 31, 2014. |
401k_savings_plan_401k_savings
401(k) savings plan 401(k) savings plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
401(k) savings plan | 9. 401(k) savings plan |
The Company has established a defined contribution savings plan under Section 401(k) of the Internal Revenue Code (the plan). The plan covers substantially all employees. Under the plan, employees may make elective salary deferrals. In 2012, 2013 and 2014 the Company matched $48,000, $53,000 and $63,000, respectively, of employee contributions. |
Commitments_and_contingencies
Commitments and contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and contingencies | Commitments and contingencies | |||
Operating leases – The Company leases corporate office space, office equipment and production facilities under operating leases. Total rent payments were $577,000 for 2012, $823,000 for 2013 and $949,000 for 2014. | ||||
Future minimum lease payments at December 31, 2014, under operating leases with initial or remaining terms in excess of one year were as follows: | ||||
(Dollars in thousands) | ||||
Years ending December 31, | ||||
2015 | $ | 942 | ||
2016 | 932 | |||
2017 | 841 | |||
2018 | 512 | |||
2019 | 16 | |||
Thereafter | — | |||
$ | 3,243 | |||
Contingencies – From time to time, the Company may be subject to various legal proceedings and claims arising in the ordinary course of business. The Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in its financial statements. An estimated loss contingency is accrued in the financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. No such amounts were accrued at December 31, 2013 or December 31, 2014. |
Relatedparty_transactions
Related-party transactions | 12 Months Ended | |
Dec. 31, 2014 | ||
Related Party Transactions [Abstract] | ||
Related-party transactions | ||
11 | Related-party transactions | |
The Company has consulting agreements with scientific advisors who are also shareholders. The total expense recorded to general and administrative expenses for these agreements was $302,000 for 2012, 2013 and 2014. | ||
In July 2013 and in March 2014, the Company granted stock options in exchange for future services and amendments to consulting and non-competition agreements with a scientific founder of the Company who also serves on the board of directors. See Note 4 for additional information. |
Significant_accounting_policie1
Significant accounting policies and supplemental financial information (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Presentation and use of estimates | Basis of presentation and use of estimates – The accompanying financial statements have been presented in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions include primarily those required in the valuation of inventory, patents, licenses, goodwill, intangible assets, and property and equipment; the timing of revenue recognition; and the calculation of stock-based compensation. Management bases its estimates on certain assumptions, which it believes are reasonable in the circumstances, and while actual results could differ from those estimates, management does not believe that any change in those assumptions in the near term would have a significant effect on the Company’s financial position, results of operations or cash flows. | |
Cash and cash equivalents | Cash and cash equivalents – The Company considers all highly liquid, short-term investments with original maturities of three months or less to be cash and cash equivalents. | |
Accounts receivable | Accounts receivable – The Company establishes an allowance for doubtful accounts based on a customer's ability and likelihood to pay. There was no allowance at either December 31, 2013 or December 31, 2014. | |
The Company does not accrue interest on past due amounts. Past due accounts are determined based on customer terms, the policy for write-offs and collection efforts is based upon individual account circumstances. | ||
Inventories | Inventories – Inventories are valued at the lower of cost or market using the weighted-average cost method. The weighted-average method examines total production volume and total labor and overhead over an appropriate historical period and establishes a weighted-average value of materials, overhead and labor to be assigned to each unit of finished goods inventory. | |
Inventory includes finished goods that may be used by the Company’s research and development, technical services and marketing groups. When such products are consumed internally they are expensed at their inventoried cost to the appropriate department. | ||
Provisions, when required, for slow moving, excess and obsolete inventories are recorded to reduce inventory values from cost to their estimated net realizable values, based on product life cycle, development plans, product expiration and quality issues. | ||
Prepaid expenses and other current assets | Prepaid expenses and other current assets – Prepaid expenses and other current assets consist of insurance premiums, annual maintenance contracts and other miscellaneous payments and deposits. | |
Property and equipment | Property and equipment – Property and equipment are recorded at cost and are depreciated using the straight-line method over the useful life of the assets, which is three to seven years. Leasehold improvements are depreciated over the shorter of their estimated useful life or the lease term. | |
Impairment of long-lived assets | Impairment of long-lived assets – The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset may not be fully recoverable. An impairment loss would be recognized when the estimated future cash flows from the use of the asset are less than the carrying amount of that asset. No impairment losses were recorded in either 2013 or 2014. | |
Goodwill | Goodwill – The entire balance of goodwill resulted from the 2008 acquisition of two companies and represents the purchase price in excess of identifiable assets and in-process research and development acquired in that transaction. Goodwill is not amortized. The Company has a single reporting unit and all goodwill relates to that unit. | |
Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of net assets acquired. Goodwill is reviewed for impairment at least annually during the fourth quarter, or more frequently if an event occurs indicating the potential for impairment. The Company conducts an assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is more likely than not that the fair value of its reporting unit is less than its carrying amount, it then conducts a two-part test for impairment of goodwill. The qualitative factors which the Company may assess during the qualitative approach include, but are not limited to, macroeconomic conditions, industry and market considerations, the overall financial performance of the Company, and the excess of prior year estimates of fair value compared to carrying value. Based on this qualitative assessment, management concluded that as of the 2014 annual impairment test date, it was more likely than not that the fair value of the reporting unit was greater than its carrying value, and no further testing was performed. | ||
Intangible assets | Intangible assets – Intangible assets consist of licenses, patents, trade name and a noncompetition agreement with a scientific founder. | |
The Company expenses patent related costs as incurred because, even though the Company believes the patents and underlying processes have continuing value, the amount of future benefits to be derived therefrom is uncertain. Purchased patents and licenses are capitalized and amortized on a straight-line basis over the useful life of the patent or license, which range from one to twenty years. When patents reach a mature stage, any associated legal, defense and maintenance costs are expensed as incurred. | ||
Accrued liabilities | Accrued liabilities – Accrued expenses include accrued payroll, accrued vacation, accrued incentive compensation, accrued royalties, sales and use taxes payable and other various unpaid expenses. | |
Deferred revenue | Deferred revenue – Deferred revenue represents payments received, but not yet earned. | |
Debt Discounts | Debt discounts – The Company recorded the fair value of the warrants issued in connection with the Credit Agreement, see Note 5, as a debt discount. The debt discount is amortized to interest expense over a period ending on the earlier of the maturity date of the notes or the date on which the notes are repaid. | |
Revenue recognition | Revenue recognition – The Company recognizes revenue in accordance with Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 104, Revenue Recognition, and Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 605, Revenue Recognition. | |
Product sales – The Company recognizes product sales revenue when the following four basic revenue criteria are met: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the fee is fixed or determinable; and (iv) collectability is reasonably assured. Product returns and replacements historically have not been material and are not expected to be material. | ||
In June 2012, the Company finalized a supply and distribution agreement with Life Technologies Corporation whereby they will manufacture certain cell media for the Company and serve as its sole distributor of these products to third parties. The Company is recognizing this revenue in accordance with ASC 605-45—Revenue Recognition—Principal Agent Consideration. ASC 605-45 specifies various indicators that support the reporting of revenue on a gross basis, including inventory risk, changes to the product and discretion in changing the supplier. The Company does not believe that this agreement includes these characteristics and therefore is recognizing the revenue on a net basis. | ||
Collaborations, partnerships and other revenues—The Company recognizes revenue from collaborations, services and other arrangements when its contractual services are performed, provided collectability is reasonably assured. Collaborations may include upfront non-refundable payments, development milestone payments and research and development funding. Principal costs under these agreements include the Company’s personnel conducting research and development, supplies consumed in that process and allocated overhead. | ||
The Company recognizes revenues from non-refundable up-front license fees received under collaboration agreements ratably over the estimated performance period of the collaboration agreement. The estimated performance period is typically based upon detailed project plans completed by the project managers, who establish in regular discussion and collaboration with a counterpart at the customer, key project activities, milestones and resources. If the estimated performance period is subsequently modified, the Company will modify the period over which the up-front license fee is recognized on a prospective basis. | ||
The Company recognizes revenue from milestone payments received under collaboration agreements when earned, provided that the milestone event is substantive, its achievability was not reasonably assured at the inception of the agreement, the Company has no further performance obligations relating to the event and collectability is reasonably assured. If these criteria are not met, the Company recognizes milestone payments ratably over the remaining period of its performance obligations under the collaboration agreement. | ||
For a milestone to be considered substantive, the payment associated with its achievement must have all of the following characteristics: | ||
• | relate solely to past performance; | |
• | be reasonable, relative to all of the elements and payment terms in the arrangement; and | |
• | be commensurate with either the Company’s effort required to achieve the milestone or the enhanced value of the delivered item(s) as a result of the milestone achievement. | |
As of December 31, 2014, the Company has recognized $350,000 of milestone related revenue in association with its contract with Lilly - see Multiple-element arrangements section below. In 2012, the Company sent invoices of $125,000 for milestones achieved. Of the achieved milestones, $25,000 was recognized as revenue in 2012 under the milestone method, while the remaining $100,000, which related to milestones that were not considered substantive, was deferred and accounted for ratably over the remaining period of the Company’s performance obligations under the contract. In 2013 and 2014 the Company recognized $100,000 and $225,000, respectively, of revenue under the milestone method. | ||
Payments, such as grants or awards, received for the reimbursement of expenses for research and development activities are recorded as revenue at the gross amount of the reimbursement. Costs associated with these reimbursements are reflected as a component of research and development expenses. | ||
In November, 2013, the Company announced that it had received a Notice of Grant Award (NGA) for $16 million from CIRM to create a human induced pluripotent stem cell biobank from 3,000 individuals. The agreement runs through October 31, 2016. Related to the CIRM grant, in December 2013, the Company announced that it had entered into a four year $6.3 million agreement with Coriell to produce distribution cell banks from the iPSCs produced for CIRM. In accounting for revenue for the agreements mentioned above, the Company will use the Proportional Performance Method whereby revenue will be recognized in proportion to the level of service, as measured by labor and materials cost, provided on a systematic and rational basis. As of December 31, 2014, the Company has received payments totaling $5.8 million from CIRM and has recognized $2.7 million as revenue, resulting in deferred revenue of $3.1 million. As of December 31, 2014, the Company has invoiced Coriell for $651,000 of which $462,000 was recognized as revenue. | ||
Multiple-element arrangements – Arrangements with customers may include multiple deliverables, including collaborations or agreements that combine products, research and development, participation in joint steering committees and other deliverables. For the Company’s multiple-element arrangements, deliverables are separated into more than one unit of accounting when (i) the delivered element(s) have value to the customer on a stand-alone basis and (ii) delivery of the undelivered element(s) is probable and substantially in the control of the Company. Revenue is then allocated to each unit of accounting based on the relative selling price of each unit of accounting based first on Vendor Specific Objective Evidence (“VSOE”) if it exists, based next on Third Party Evidence (“TPE”) if VSOE does not exist, and, finally, if both VSOE and TPE do not exist, based on Best Estimated Selling Price (“BESP”). | ||
VSOE—In many instances, products are sold separately in stand-alone arrangements. The Company determines VSOE based on its normal pricing and discounting practices for the specific product when sold separately. | ||
TPE—When VSOE does not exist, the Company attempts to determine TPE based on competitor prices for similar deliverables when sold separately. Given the novel nature and early stage of the Company’s products, it is difficult to obtain the pricing of similar products with similar functionality sold by other companies on a stand-alone basis. Therefore, the Company is typically not able to determine TPE. | ||
BESP—The objective of BESP is to determine the price at which the Company would transact a sale if the deliverable were sold on a stand-alone basis. When both VSOE and TPE do not exist, typically in the case of research and development and joint steering committee elements, the Company determines BESP by considering the cost of the activities required by the agreement and the rights of the Company and its customers to the resulting technology. | ||
After separating the elements of an arrangement into the appropriate units of accounting, revenue is recognized for each separate unit of accounting based on the nature of the revenue as described above. | ||
In accounting for the multiple-element arrangements, revenue is limited to the lesser of 1) the cumulative amount of payments received or invoiced; or 2) the cumulative amount of revenue earned, as determined using the pro-rata allocation and delivery status or progress of each element. | ||
In June 2012, the Company finalized a $5 million multiple-element agreement with Lilly that was scheduled to run through December 2014. Under the terms of the agreement, Lilly would order a minimum number of units of iCell products each quarter through the fourth quarter of 2014 at a predetermined price for each year. If Lilly failed to order the minimum number of units, the Company could choose a commercial iCell type for the shortfall and invoice Lilly for the same. In addition, through December 31, 2014, the Company also reprogramed a specified number of donor samples provided by Lilly, and invoiced Lilly for these MyCell products according to predetermined pricing tiers. The agreement also included both periodic and milestone payments related to meetings and decisions of a joint steering committee and the custom development of two different cell types. | ||
In December 2012, the Company finalized a one year $1.3 million multiple-element agreement with AstraZeneca UK Limited (AstraZeneca). Under the terms of the agreement, AstraZeneca agreed to order a minimum number of units of commercial iCell products, at a predetermined price, prior to December 31, 2013. During the term, the Company was to reprogram donor samples and invoice AstraZeneca for any such MyCell products. The last of the Company's obligations under this agreement were substantially completed in early 2014. In addition, AstraZeneca agreed to provide the Company with payments upon the achievement of certain milestones related to its attempts to develop, manufacture and commercially release a custom cell type. | ||
Changes in judgments and estimates regarding application of these revenue recognition guidelines as well as changes in facts and circumstances could result in a change in the timing or amount of revenue recognized in future periods. During 2012, 2013 and 2014, the Company did not have any significant changes in estimates related to the agreements discussed above. | ||
Research and development | Research and development – Research and development costs are expensed as incurred. Research and development costs primarily consist of salaries and other personnel costs, supplies, amortization of patents and licenses, minimum royalties and royalty payments related to Collaborations, partnerships and other revenues and miscellaneous other expenses for facilities and occupancy costs. Other research and development expenses include fees paid to consultants and outside service providers and finished goods used in research and development. | |
Advertising costs | Advertising costs – The Company expenses advertising costs as incurred. | |
Stock-based compensation | Stock-based compensation – All share-based payment awards made to employees, consultants (including science advisors) and directors are measured and recognized based on estimated fair values. | |
Net loss per share of common stock | Net loss per share of common stock – The Company’s basic net loss per share of common stock is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share of common stock is computed by dividing the net loss by the weighted-average number of potential common shares outstanding for the period determined using the treasury-stock method. | |
Comprehensive loss | Comprehensive loss – Comprehensive loss is equal to net loss as presented in the accompanying statements of operations. | |
Segment reporting | Segment reporting – ASC 280, “Segment Reporting” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. The Company determined it has one operating segment. Disaggregation of the Company’s operating results is impracticable, because the Company’s research and development activities and its assets overlap, and management reviews its business as a single operating segment. Thus, discrete financial information is not available by more than one operating segment. | |
Concentration of credit risk and other risks and uncertainties | Concentration of credit risk and other risks and uncertainties – As of December 31, 2014 the Company had $24.6 million invested in a 100% U.S. Treasury Securities Money Market Fund and $1.9 million in a U.S. Government Money Market Fund. An investment in a money market fund is not insured or guaranteed. The Company's remaining cash was deposited with one major financial institution. These deposits exceed federally insured limits. The Company has not experienced any losses in such accounts and believes that the Company is not exposed to any significant risk on these balances. | |
The Company is currently not profitable and no assurance can be provided that it will ever be profitable. The Company is subject to risks common to companies in the biotechnology industry including, but not limited to, new technological innovations, dependence on key personnel, dependence on key suppliers, protection of proprietary technology, the validity of and continued access to its owned and licensed intellectual property, compliance with government regulations, uncertainty of widespread market acceptance of products and the need to obtain additional financing. The Company's products include materials subject to rapid technological change. Certain materials used in manufacturing have relatively few alternative sources of supply and establishing additional or replacement suppliers for such materials cannot be accomplished quickly. While the Company has ongoing programs to minimize the adverse effect of such uncertainty, and the Company considers technological change in estimating allowances, uncertainty continues to exist. | ||
Fair value of financial instruments | Fair value of financial instruments – The carrying amounts of financial instruments, which include cash and cash equivalents, accounts receivable and accounts payable, approximate their respective fair values due to the relatively short-term nature of these instruments. The Company believes the carrying value of long-term debt as of December 31, 2014 is also approximately equal to its fair value. | |
ASC Topic 820, Fair Value Measurement, establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include Level 1, defined as observable inputs, such as quoted market prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions. The Company uses the market approach and Level 1 inputs to value its cash equivalents. | ||
Recent accounting pronouncements | Recent accounting pronouncements – In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entities Ability to Continue as a Going Concern "ASU No. 2014-15", which is included in Accounting Standards Codification 205, Presentation of Financial Statements. ASU No. 2014-15 requires management to assess an entity's ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. ASU No. 2014-15 will be effective for the Company starting in the first quarter of fiscal year 2017. Early application is permitted. The Company is currently evaluating the impact the adoption of ASU No. 2014-15 will have on its financial statements. | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers "ASU No. 2014-09", which supersedes nearly all accounting standards for revenue recognition. ASU No. 2014-09 requires that an entity recognize revenue upon transferring promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 will be effective for the Company starting in the first quarter of fiscal year 2017. Early application is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact the adoption of ASU No. 2014-09 will have on its financial statements. |
Significant_accounting_policie2
Significant accounting policies and supplemental financial information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of Inventory | Inventories at December 31, 2013 and December 31, 2014, consisted of the following: | ||||||||||||
(Dollars in thousands) | December 31, | December 31, | |||||||||||
2013 | 2014 | ||||||||||||
Raw materials | $ | 1,658 | $ | 1,598 | |||||||||
Work in process | 547 | 436 | |||||||||||
Finished goods | 1,679 | 2,422 | |||||||||||
Total | $ | 3,884 | $ | 4,456 | |||||||||
Schedule of Property and equipment | Property and equipment at December 31, 2013 and December 31, 2014, consisted of the following: | ||||||||||||
(Dollars in thousands) | December 31, | December 31, | |||||||||||
2013 | 2014 | ||||||||||||
Leasehold improvements | $ | 451 | $ | 835 | |||||||||
Production and lab equipment | 4,815 | 7,274 | |||||||||||
Office and computer equipment | 546 | 1,354 | |||||||||||
Construction-in-progress | 932 | 162 | |||||||||||
6,744 | 9,625 | ||||||||||||
Less accumulated depreciation and amortization | (4,692 | ) | (5,793 | ) | |||||||||
Total | $ | 2,052 | $ | 3,832 | |||||||||
Schedule of Accrued liabilities | Accrued liabilities at December 31, 2013 and December 31, 2014, consisted of the following: | ||||||||||||
(Dollars in thousands) | December 31, | December 31, | |||||||||||
2013 | 2014 | ||||||||||||
Accrued payroll, vacation and employee-related expenses | $ | 1,024 | $ | 1,173 | |||||||||
Accrued incentive compensation | 1,229 | 612 | |||||||||||
Accrued royalties | 584 | 721 | |||||||||||
Accrued incentives for sales staff | 202 | 224 | |||||||||||
Other | 322 | 420 | |||||||||||
Total | $ | 3,361 | $ | 3,150 | |||||||||
Schedule of Deferred Revenue | Deferred revenue at December 31, 2013 and December 31, 2014, consisted of the following: | ||||||||||||
(Dollars in thousands) | 31-Dec-13 | 31-Dec-14 | |||||||||||
CIRM | $ | 924 | $ | 3,142 | |||||||||
Coriell | — | 189 | |||||||||||
Lilly | 280 | 258 | |||||||||||
Other | 235 | 329 | |||||||||||
Total | $ | 1,439 | $ | 3,918 | |||||||||
Schedule of common shares that were excluded from diluted net loss per share | the following potential common shares were excluded because including them would have been anti-dilutive: | ||||||||||||
December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Preferred series A | 2,914,187 | — | — | ||||||||||
Preferred series B | 7,232,092 | — | — | ||||||||||
Common stock warrants | 8,208 | 28,406 | 28,406 | ||||||||||
Common stock options | 1,617,875 | 2,388,394 | 2,759,770 | ||||||||||
11,772,362 | 2,416,800 | 2,788,176 | |||||||||||
Schedule of revenue by product | Product information – The following table provides Product sales revenue by product: | ||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
(Dollars in thousands) | 2012 | 2013 | 2014 | ||||||||||
iCell Cardiomyocytes | $2,610 | $4,787 | $3,175 | ||||||||||
iCell Neurons | 2,256 | 2,428 | 3,317 | ||||||||||
MyCell | — | 222 | 857 | ||||||||||
Other | 312 | 561 | 728 | ||||||||||
Total | $5,178 | $7,998 | $8,077 | ||||||||||
Collaborations, partnerships and other revenue information - The following table provides Collaborations, partnerships and other revenues by significant agreement or type: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
(Dollars in thousands) | 2012 | 2013 | 2014 | ||||||||||
CIRM/Coriell | $ | — | $ | 182 | $ | 3,008 | |||||||
MCOW | 440 | 533 | 1,144 | ||||||||||
Collaborative cell development | 728 | 1,857 | 1,287 | ||||||||||
iCell Hepatocytes | 127 | 808 | 1,796 | ||||||||||
Prototype cells | — | 381 | 777 | ||||||||||
Other | 109 | 125 | 603 | ||||||||||
Total | $ | 1,404 | $ | 3,886 | $ | 8,615 | |||||||
Schedule of revenue by geographic region | Geographical information – The following table provides percentage of total revenues by region, based on shipping locations or, in the case of CIRM, the customer location: | ||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
United States of America | 66 | % | 56 | % | 67 | % | |||||||
Europe | 24 | % | 38 | % | 28 | % | |||||||
Japan | 5 | % | 5 | % | 4 | % | |||||||
Other | 5 | % | 1 | % | 1 | % | |||||||
Total | 100 | % | 100 | % | 100 | % |
Intangible_assets_Tables
Intangible assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||||||
Schedule of Intangible Assets | Intangible assets and accumulated amortization balances at December 31, 2013 and December 31, 2014, are as follows: | |||||||
(dollars in thousands) | December 31, | December 31, | ||||||
2013 | 2014 | |||||||
Trade name | $ | 13 | $ | 13 | ||||
Licenses and patents | 4,578 | 4,722 | ||||||
Non-competition agreements | 641 | 761 | ||||||
5,232 | 5,496 | |||||||
Less accumulated amortization: | ||||||||
Trade name | (13 | ) | (13 | ) | ||||
Licenses and patents | (746 | ) | (1,152 | ) | ||||
Non-competition agreements | (351 | ) | (518 | ) | ||||
(1,110 | ) | (1,683 | ) | |||||
Total, net | $ | 4,122 | $ | 3,813 | ||||
As of December 31, 2013 and 2014, the trade name was fully amortized. The remaining weighted-average useful lives of the other intangible assets as of December 31, 2014 are as follows: | ||||||||
Licenses and patents | 11.8 years | |||||||
Non-competition agreements | 5.2 years | |||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The future amortization of intangible assets recorded as of December 31, 2014 is as follows: | |||||||
(Dollars in thousands) | ||||||||
Years ending December 31, | Amount | |||||||
2015 | $ | 564 | ||||||
2016 | 428 | |||||||
2017 | 385 | |||||||
2018 | 333 | |||||||
2019 | 330 | |||||||
Thereafter | 1,773 | |||||||
$ | 3,813 | |||||||
Longterm_debt_Tables
Long-term debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Long-term Debt | Long-term debt at December 31, 2013 and 2014, consists of the following: | |||||||
(Dollars in thousands) | December 31, | December 31, | ||||||
2013 | 2014 | |||||||
Term loan credit agreement, net of debt discount | $ | 11,879 | $ | 12,131 | ||||
License agreements | 18 | — | ||||||
11,897 | 12,131 | |||||||
Less current portion | (18 | ) | (4,541 | ) | ||||
Total | $ | 11,879 | $ | 7,590 | ||||
Stock_options_and_restricted_c1
Stock options and restricted common stock (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Assumptions used to value the most recent option grants were as follows: | ||||||||
2012 | 2013 | 2014 | |||||||
Estimated expected term | 6 years | 6 to 8 years | 1 to 8 years | ||||||
Risk-free interest rate | 0.98 | % | 1.70% to 2.22% | 0.18% to 2.38% | |||||
Expected volatility assumption | 66 | % | 64% to 68% | 43% to 66% | |||||
Forfeiture rate | 0% to 7% | 0% to 7% | 0% to 6% | ||||||
Dividend yield assumption | — | % | — | % | — | % | |||
Number of Shares Available for Grant | The number of shares available for grant under the Company's Equity Incentive Plans, as amended (the "Plans") were as follows: | ||||||||
2008 Plan | 2013 Plan | Total | |||||||
Available for grant — January 1, 2012 | 243,665 | — | 243,665 | ||||||
Plan amendment | 262,256 | — | 262,256 | ||||||
Grants | (99,187 | ) | — | (99,187 | ) | ||||
Forfeitures | 6,954 | — | 6,954 | ||||||
Available for grant — December 31, 2012 | 413,688 | — | 413,688 | ||||||
Plan adjustments and amendments | (421,371 | ) | 831,659 | 410,288 | |||||
Grants | — | (812,116 | ) | (812,116 | ) | ||||
Forfeitures | 7,683 | 10,327 | 18,010 | ||||||
Available for grant — December 31, 2013 | — | 29,870 | 29,870 | ||||||
Plan adjustments and amendments | (84,494 | ) | 630,309 | 545,815 | |||||
Grants | — | (599,311 | ) | (599,311 | ) | ||||
Forfeitures | 84,494 | 87,158 | 171,652 | ||||||
Available for grant — December 31, 2014 | — | 148,026 | 148,026 | ||||||
Summary of Option Activity | A summary of option activity under the Plans as of December 31, 2014 and changes during the period then ended were as follows: | ||||||||
Options | Weighted- | Weighted- | |||||||
average | average | ||||||||
exercise | remaining | ||||||||
price | contractual | ||||||||
term | |||||||||
Outstanding — January 1, 2012 | 1,545,938 | $ | 8.09 | 8.42 | |||||
Granted | 99,187 | 12.68 | |||||||
Exercised | (20,296 | ) | 7.41 | ||||||
Forfeited | (6,954 | ) | 12.19 | ||||||
Outstanding — December 31, 2012 | 1,617,875 | 8.39 | 7.63 | ||||||
Granted | 812,116 | 12.31 | |||||||
Exercised | (23,587 | ) | 6.55 | ||||||
Forfeited | (18,010 | ) | 11.34 | ||||||
Outstanding — December 31, 2013 | 2,388,394 | 9.7 | 7.63 | ||||||
Granted | 599,311 | 14.54 | |||||||
Exercised | (56,283 | ) | 6.14 | ||||||
Forfeited | (171,652 | ) | 11.33 | ||||||
Outstanding — December 31, 2014 | 2,759,770 | $ | 10.72 | 7.14 | |||||
Vested as of December 31, 2014 | 1,641,991 | $ | 8.86 | 6.14 | |||||
Vested or expected to vest as of December 31, 2014 | 2,746,571 | $ | 10.71 | 7.13 | |||||
Exercisable as of December 31, 2014 | 1,779,870 | $ | 9.16 | 6.23 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Schedule of Deferred Tax Assets | The components of the net deferred tax asset with the approximate income tax effect of each type of carryforward, credit and temporary differences are as follows. | ||||||||
(Dollars in thousands) | 31-Dec-13 | 31-Dec-14 | |||||||
Deferred tax assets | |||||||||
Operating loss carryforwards | $ | 41,141 | $ | 50,387 | |||||
Tax credit carryforwards | 5,529 | 6,290 | |||||||
Other temporary differences | 2,327 | 3,599 | |||||||
Tax assets before valuation allowance | 48,997 | 60,276 | |||||||
Less: valuation allowance | (48,997 | ) | (60,276 | ) | |||||
Net deferred taxes | $ | — | $ | — | |||||
Schedule of Effective Tax Rate | The effective tax rate differs from the statutory tax rate due to the following: | ||||||||
Year ended December 31, | |||||||||
2012 | 2013 | 2014 | |||||||
U.S. Federal statutory rate | 35 | % | 35 | % | 35 | % | |||
State taxes | 5 | 5 | 1.3 | ||||||
Research credits | — | 13.3 | 2.5 | ||||||
Stock-based compensation | (0.5 | ) | (0.5 | ) | (0.1 | ) | |||
Other | (0.2 | ) | (0.1 | ) | (0.2 | ) | |||
Valuation allowance | (39.3 | ) | (52.7 | ) | (38.5 | ) | |||
— | % | — | % | — | % |
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Future Minimum Payments for Operating Leases | Future minimum lease payments at December 31, 2014, under operating leases with initial or remaining terms in excess of one year were as follows: | |||
(Dollars in thousands) | ||||
Years ending December 31, | ||||
2015 | $ | 942 | ||
2016 | 932 | |||
2017 | 841 | |||
2018 | 512 | |||
2019 | 16 | |||
Thereafter | — | |||
$ | 3,243 | |||
Description_of_business_Detail
Description of business - (Details) | 12 Months Ended | 1 Months Ended | 0 Months Ended |
Dec. 31, 2008 | Jul. 31, 2008 | Jun. 27, 2013 | |
Business | Business | ||
Equity, Class of Treasury Stock [Line Items] | |||
Companies acquired | 2 | ||
Cellular Dynamics International, Inc. and Stem Cell Products, Inc. [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Companies acquired | 2 | ||
Series A Preferred Stock [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Reverse stock split ratio, conversion ratio | 9.75 | ||
Series B Preferred Stock [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Reverse stock split ratio, conversion ratio | 9.75 | ||
Common Class B [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Reverse stock split ratio, conversion ratio | 9.75 |
Significant_accounting_policie3
Significant accounting policies and supplemental financial information - Textual (Details) (USD $) | 1 Months Ended | 12 Months Ended | 36 Months Ended | 1 Months Ended | 0 Months Ended | ||||
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2008 | Dec. 31, 2014 | Jun. 30, 2012 | Dec. 31, 2013 | Nov. 30, 2013 | |
Business | Donor | ||||||||
Supplemental Financial Information [Line Items] | |||||||||
Allowance for Doubtful Accounts Receivable, Current | $0 | $0 | $0 | $0 | |||||
Companies acquired | 2 | ||||||||
Deferred revenue | 3,918,000 | 1,439,000 | 3,918,000 | 1,439,000 | |||||
Revenues | 16,692,000 | 11,884,000 | 6,582,000 | ||||||
Deferred revenue amount | 2,479,000 | 869,000 | 236,000 | ||||||
Product Stem Cells, Types of Cell, Number | 2 | ||||||||
Revenue Recognition, Milestone Method, Term of Agreement | 1 year | ||||||||
Advertising Expense | 212,000 | 220,000 | 110,000 | ||||||
US Treasury Securities [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Investment amount | 24,600,000 | 24,600,000 | |||||||
Money Market Funds [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Investment amount | 1,900,000 | 1,900,000 | |||||||
Sales [Member] | Geographic Concentration Risk [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | ||||||
Sales Revenue, Net [Member] | Lilly [Member] | Customer Concentration Risk [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk, percentage | 18.00% | 18.00% | |||||||
Sales Revenue, Net [Member] | Hoffmann-La Roche Inc. [Member] | Customer Concentration Risk [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk, percentage | 10.00% | ||||||||
Sales Revenue, Net [Member] | GlaxoSmithKline plc [Member] | Customer Concentration Risk [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk, percentage | 11.00% | ||||||||
Sales Revenue, Net [Member] | AstraZeneca [Member] | Customer Concentration Risk [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk, percentage | 15.00% | ||||||||
Sales Revenue, Net [Member] | CIRM [Member] | Customer Concentration Risk [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk, percentage | 15.00% | ||||||||
Accounts Receivable [Member] | Lilly [Member] | Customer Concentration Risk [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk, percentage | 16.00% | 21.00% | |||||||
Accounts Receivable [Member] | Hoffmann-La Roche Inc. [Member] | Customer Concentration Risk [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk, percentage | 15.00% | 11.00% | |||||||
Accounts Receivable [Member] | AstraZeneca [Member] | Customer Concentration Risk [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk, percentage | 17.00% | ||||||||
UNITED KINGDOM | Sales [Member] | Geographic Concentration Risk [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk, percentage | 12.00% | ||||||||
SWITZERLAND | Sales [Member] | Geographic Concentration Risk [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Concentration risk, percentage | 11.00% | ||||||||
Collaborative Agreement with ELI Lilly and Company [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Revenue Recognition, Milestone Method, Revenue Recognized | 225,000 | 100,000 | 25,000 | 350,000 | |||||
Revenue Recognition, Milestone Method, Revenue Invoiced | 125,000 | ||||||||
Deferred revenue | 100,000 | 100,000 | |||||||
Notice of Grant Award to Fund Human Induced Pluripotent Stem Cell Biobank [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Number of Donors | 3,000 | ||||||||
Multiple-Element Agreement with Eli Lilly and Company [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Revenue Recognition, Milestone Method, Amount of Agreement | 5,000,000 | ||||||||
AstraZeneca UK Limited [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Revenue Recognition, Milestone Method, Amount of Agreement | 1,300,000 | ||||||||
California Institute of Regenerative Medicine [Member] | Notice of Grant Award to Fund Human Induced Pluripotent Stem Cell Biobank [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Grants Receivable | 16,000,000 | ||||||||
Proceeds from (Payments for) Other Financing Activities | 5,800,000 | ||||||||
Revenues | 2,700,000 | ||||||||
Deferred revenue amount | 3,100,000 | ||||||||
Coriell [Member] | Notice of Definitive Agreement [Member] [Domain] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Revenue Recognition, Milestone Method, Revenue Invoiced | 651,000 | ||||||||
Revenues | 462,000 | ||||||||
Revenue Recognition, Milestone Method, Amount of Agreement | $6,300,000 | ||||||||
Minimum [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Property, plant and equipment, useful life | 3 years | ||||||||
Minimum [Member] | Patents [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Patent, useful life | 1 year | ||||||||
Maximum [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Property, plant and equipment, useful life | 7 years | ||||||||
Maximum [Member] | Patents [Member] | |||||||||
Supplemental Financial Information [Line Items] | |||||||||
Patent, useful life | 20 years |
Significant_accounting_policie4
Significant accounting policies and supplemental financial information - Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Raw materials | $1,598 | $1,658 |
Work in process | 436 | 547 |
Finished goods | 2,422 | 1,679 |
Total | $4,456 | $3,884 |
Significant_accounting_policie5
Significant accounting policies and supplemental financial information - Property Plant and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Leasehold improvements | $835 | $451 |
Production and lab equipment | 7,274 | 4,815 |
Office and computer equipment | 1,354 | 546 |
Construction-in-progress | 162 | 932 |
Property, Plant and Equipment, Gross | 9,625 | 6,744 |
Less accumulated depreciation and amortization | -5,793 | -4,692 |
Total | $3,832 | $2,052 |
Significant_accounting_policie6
Significant accounting policies and supplemental financial information - Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Accrued payroll, vacation and employee-related expenses | $1,173 | $1,024 |
Accrued incentive compensation | 612 | 1,229 |
Accrued royalties | 721 | 584 |
Accrued incentives for sales staff | 224 | 202 |
Other | 420 | 322 |
Total | $3,150 | $3,361 |
Significant_accounting_policie7
Significant accounting policies and supplemental financial information - Deferred Revenue (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue | $3,918,000 | $1,439,000 |
CIRM [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue | 3,142,000 | 924,000 |
Coriell [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue | 189,000 | 0 |
Lilly [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue | 258,000 | 280,000 |
Other Customer [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue | $329,000 | $235,000 |
Significant_accounting_policie8
Significant accounting policies and supplemental financial information - Earnings Per Share (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from the computation of net loss per share | 2,788,176 | 2,416,800 | 11,772,362 |
Series A Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from the computation of net loss per share | 0 | 0 | 2,914,187 |
Series B Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from the computation of net loss per share | 0 | 0 | 7,232,092 |
Common Stock Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from the computation of net loss per share | 28,406 | 28,406 | 8,208 |
Equity Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from the computation of net loss per share | 2,759,770 | 2,388,394 | 1,617,875 |
Significant_accounting_policie9
Significant accounting policies and supplemental financial information - Product and Geographical Information (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | |||
Revenues | $16,692,000 | $11,884,000 | $6,582,000 |
Collaborations, partnerships and other revenues | 8,615,000 | 3,886,000 | 1,404,000 |
iCell Cardiomyocytes [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,175,000 | 4,787,000 | 2,610,000 |
iCell Neurons [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,317,000 | 2,428,000 | 2,256,000 |
MyCell [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 857,000 | 222,000 | 0 |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 728,000 | 561,000 | 312,000 |
Total [Domain] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 8,077,000 | 7,998,000 | 5,178,000 |
Geographic Concentration Risk [Member] | Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% |
Geographic Concentration Risk [Member] | Sales [Member] | UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 67.00% | 56.00% | 66.00% |
Geographic Concentration Risk [Member] | Sales [Member] | Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 28.00% | 38.00% | 24.00% |
Geographic Concentration Risk [Member] | Sales [Member] | JAPAN | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 4.00% | 5.00% | 5.00% |
Geographic Concentration Risk [Member] | Sales [Member] | Countries Other than US, Japan, and Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 1.00% | 1.00% | 5.00% |
CIRM/Coriell [Member] | |||
Segment Reporting Information [Line Items] | |||
Collaborations, partnerships and other revenues | 3,008,000 | 182,000 | 0 |
Medical College of Wisconsin [Member] | |||
Segment Reporting Information [Line Items] | |||
Collaborations, partnerships and other revenues | 1,144,000 | 533,000 | 440,000 |
Lilly research components [Member] | |||
Segment Reporting Information [Line Items] | |||
Collaborations, partnerships and other revenues | 1,287,000 | 1,857,000 | 728,000 |
iCell Hepatocytes [Member] | |||
Segment Reporting Information [Line Items] | |||
Collaborations, partnerships and other revenues | 1,796,000 | 808,000 | 127,000 |
Prototype Cells [Member] | |||
Segment Reporting Information [Line Items] | |||
Collaborations, partnerships and other revenues | 777,000 | 381,000 | 0 |
Other Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Collaborations, partnerships and other revenues | $603,000 | $125,000 | $109,000 |
Medical College of Wisconsin [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 13.00% |
Intangible_assets_Textual_Deta
Intangible assets - Textual (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||
Amortization of Intangible Assets | $584,000 | $522,000 | $347,000 | |
Increase in intangible due to non-compete agreement | $120,000 | $70,000 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $5,496 | $5,232 |
Finite-Lived Intangible Assets, Accumulated Amortization | -1,683 | -1,110 |
Total, net | 3,813 | 4,122 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 13 | 13 |
Finite-Lived Intangible Assets, Accumulated Amortization | -13 | -13 |
Licenses and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 4,722 | 4,578 |
Finite-Lived Intangible Assets, Accumulated Amortization | -1,152 | -746 |
Weighted average useful life of intangible assets | 11 years 10 months 2 days | |
Non-competition agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 761 | 641 |
Finite-Lived Intangible Assets, Accumulated Amortization | ($518) | ($351) |
Weighted average useful life of intangible assets | 5 years 2 months 6 days |
Intangible_assets_Expected_Amo
Intangible assets Expected Amortization (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 | $564 | |
2016 | 428 | |
2017 | 385 | |
2018 | 333 | |
2019 | 330 | |
Thereafter | 1,773 | |
Total, net | $3,813 | $4,122 |
Longterm_debt_Summary_of_Curre
Long-term debt - Summary of Current and Noncurrent Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $12,131 | $11,897 |
Less current portion | -4,541 | -18 |
Total | 7,590 | 11,879 |
Term loan credit agreement, net of debt discount | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 12,131 | 11,879 |
Licensing Agreements [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $0 | $18 |
Longterm_debt_Textual_Details
Long-term debt - Textual (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2013 | Jun. 28, 2013 | Jun. 27, 2013 | |
Other Income [Member] | ||||
Debt Instrument [Line Items] | ||||
Gain (Loss) from Initial Public Offering after Revaluation of Exercise Price | $20,000 | |||
Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount borrowed under term loan credit agreement | 12,000,000 | |||
Term of the credit agreement (in years) | 4 years | |||
Variable rate, reference rate on the credit agreement, percentage | 6.50% | |||
Variable rate, minimum basis spread on the reference rate, percentage | 2.00% | |||
Number of monthly installments under the credit agreement | 30 months | |||
Credit agreement, terms, exit fee on the total amount borrowed, percentage | 5.00% | |||
Credit agreement, terms, facility fee due upon execution of the agreement, percentage | 0.50% | |||
Credit agreement, terms, quarterly administrative fee, amount | 2,500 | |||
Credit agreement, terms, prepayment premium minimum percentage | 1.00% | |||
Credit agreement, terms, prepayment premium maximum percentage | 2.00% | |||
Warrants issued in relation to the credit agreement, tranche 1 | 28,406 | |||
Term of warrants issued in relation to credit agreement (in years) | 10 years | |||
Fair value of the warrants | $261,000 | |||
Line of Credit [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Warrant, Anticipated Price of Warrant | 12.68 | |||
Line of Credit [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Warrant, Anticipated Price of Warrant | 12 | |||
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable rate, maximum basis spread on the reference rate, interest rate index, period | 1 month |
Shareholders_equity_Details
Shareholders' equity (Details) (USD $) | 0 Months Ended | ||
Jul. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Issuance of Stock (in shares) | 3,846,000 | ||
Share price of IPO (in dollars per share) | $12 | ||
Gross proceeds form IPO | $46,200,000 | ||
Net proceeds from IPO | 40,800,000 | ||
Debt Instrument, Convertible, Conversion Ratio | 1 | ||
IPO triggered automatic exercise of warrants, number of warrants | $8,208 | ||
Automatic exercise of warrants, strike price of each warrant (in dollars per warrant) | $0.10 | ||
Common Stock Authorized (in shares) | 100,000,000 | 100,000,000 | |
Authorized Preferred Stock (in shares) | 10,000,000 | 10,000,000 | |
Preferred Stock, Shares Issued | 0 | 0 |
Stock_options_and_restricted_c2
Stock options and restricted common stock - Assumptions used to value the most recent option grants (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated expected term | 6 years | ||
Risk free interest Rate | 0.98% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 43.00% | 66.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 66.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 66.00% | 68.00% | |
Dividend yield assumption | 0.00% | 0.00% | 0.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated expected term | 1 year | 6 years | |
Risk free interest Rate | 0.18% | 1.70% | |
Forfeiture rate | 0.00% | 0.00% | 0.00% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated expected term | 8 years | 8 years | |
Risk free interest Rate | 2.38% | 2.22% | |
Forfeiture rate | 6.00% | 7.00% | 7.00% |
Stock_options_and_restricted_c3
Stock options and restricted common stock - Number of shares available grant (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Available for Grant [Roll Forward] | |||
Grants | -599,311 | -812,116 | -99,187 |
Forfeitures | 171,652 | 18,010 | 6,954 |
2008 and 2013 Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Available for Grant [Roll Forward] | |||
Available for grant — Beginning | 29,870 | 413,688 | 243,665 |
Plan amendment | 262,256 | ||
Plan adjustments and amendments | 545,815 | 410,288 | |
Grants | -599,311 | -812,116 | -99,187 |
Forfeitures | 171,652 | 18,010 | 6,954 |
Available for grant — Ending | 148,026 | 29,870 | 413,688 |
2008 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Available for Grant [Roll Forward] | |||
Available for grant — Beginning | 0 | 413,688 | 243,665 |
Plan amendment | 262,256 | ||
Plan adjustments and amendments | -84,494 | -421,371 | |
Grants | 0 | 0 | -99,187 |
Forfeitures | 84,494 | 7,683 | 6,954 |
Available for grant — Ending | 0 | 0 | 413,688 |
2013 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Available for Grant [Roll Forward] | |||
Available for grant — Beginning | 29,870 | 0 | 0 |
Plan amendment | 0 | ||
Plan adjustments and amendments | 630,309 | 831,659 | |
Grants | -599,311 | -812,116 | 0 |
Forfeitures | 87,158 | 10,327 | 0 |
Available for grant — Ending | 148,026 | 29,870 | 0 |
Stock_options_and_restricted_c4
Stock options and restricted common stock - Stock Option Activity (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options Outstanding - Beginning Balance (in shares) | 2,388,394 | 1,617,875 | 1,545,938 | |
Options Granted (in shares) | 599,311 | 812,116 | 99,187 | |
Options Exercised (in shares) | -56,283 | -23,587 | -20,296 | |
Options Forfeited (in shares) | -171,652 | -18,010 | -6,954 | |
Options Outstanding - Ending Balance (in shares) | 2,759,770 | 2,388,394 | 1,617,875 | 1,545,938 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Options Outstanding - Beginning Balance - Weighted average exercise price (in dollars per share) | $0 | $8.39 | $8.09 | |
Options Granted - Weighted average exercise price (in dollars per share) | $14.54 | $12.31 | $12.68 | |
Options Exercised - Weighted average exercise price (in dollars per share) | $6.14 | $6.55 | $7.41 | |
Options Forfeited - Weighted average exercise price (in dollars per share) | $11.33 | $11.34 | $12.19 | |
Options Outstanding - Ending Balance - Weighted average exercise price (in dollars per share) | $10.72 | $0 | $8.39 | $8.09 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Options Outstanding - Weighted average remaining contractual term | 7 years 1 month 20 days | 7 years 7 months 16 days | 7 years 7 months 16 days | 8 years 5 months 2 days |
Options Vested (in shares) | 1,641,991 | |||
Options Vested or expected to vest (in shares) | 2,746,571 | |||
Options Exercisable (in shares) | 1,779,870 | |||
Options Vested - Weighted Average Grant Date Fair Value (in dollars per share) | $8.86 | |||
Options Vested or expected to vest - Weighted Average Exercise Price (in dollars per share) | $10.71 | |||
Options Exercisable - Weighted Average Exercise Price (in dollars per share) | $9.16 | |||
Options Vested - Weighted Average Remaining Contractual Term | 6 years 1 month 20 days | |||
Options Vested or expected to vest - Weighted Average Remaining Contractual Term | 7 years 1 month 17 days | |||
Options Exercisable - Average Remaining Contractual Term | 6 years 2 months 22 days |
Stock_options_and_restricted_c5
Stock options and restricted common stock - Textual (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Contractual Term | 10 years | ||
Weighted-average grant-date fair value of stock options granted | $9.65 | $8.31 | $4.10 |
Aggregate intrinsic value of outstanding stock options | $70,000 | ||
Compensation costs not yet recognized related to nonvested awards | $7,100,000 | ||
Compensation costs not yet recognized related to nonvested awards, period for recognition | 2 years 9 months 8 days |
Income_Taxes_Textual_Details
Income Taxes - Textual (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $130 |
Tax credit carryforward | 3.3 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 97 |
Tax credit carryforward | $4.50 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ||
Operating loss carryforwards | $50,387 | $41,141 |
Tax credit carryforwards | 6,290 | 5,529 |
Other temporary differences | 3,599 | 2,327 |
Tax assets before valuation allowance | 60,276 | 48,997 |
Less: valuation allowance | -60,276 | -48,997 |
Net deferred taxes | $0 | $0 |
Income_Taxes_Rate_Reconciliati
Income Taxes - Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal statutory rate | 35.00% | 35.00% | 35.00% |
State taxes | 1.30% | 5.00% | 5.00% |
Research credits | 2.50% | 13.30% | 0.00% |
Stock-based compensation | -0.10% | -0.50% | -0.50% |
Other | -0.20% | -0.10% | -0.20% |
Valuation allowance | -38.50% | -52.70% | -39.30% |
Effective Income Tax Rate | 0.00% | 0.00% | 0.00% |
401k_savings_plan_Details
401(k) savings plan (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | |||
Contributions to 401(k) | $63,000 | $53,000 | $48,000 |
Commitments_and_contingencies_1
Commitments and contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating leases, rent expense | $949,000 | $823,000 | $577,000 |
2015 | 942,000 | ||
2016 | 932,000 | ||
2017 | 841,000 | ||
2018 | 512,000 | ||
2019 | 16,000 | ||
Thereafter | 0 | ||
Total | $3,243,000 |
Relatedparty_transactions_Deta
Related-party transactions (Details) (Consulting Agreement [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | |||
Related party consulting agreement, general and administrative expense | $302,000 | ||
Scientific Advisor [Member] | |||
Related Party Transaction [Line Items] | |||
Related party consulting agreement, general and administrative expense | $302,000 | $302,000 |