Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 24, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | GenMark Diagnostics, Inc. | ||
Entity Central Index Key | 1,487,371 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 47,051,202 | ||
Entity Public Float | $ 350,814 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 15,959 | $ 35,385 |
Marketable securities | 25,607 | 10,080 |
Accounts receivable, net of allowances of $2,727 and $2,702, respectively | 9,048 | 6,847 |
Inventories | 6,633 | 3,054 |
Prepaid expenses and other current assets | 1,202 | 591 |
Total current assets | 58,449 | 55,957 |
Property and equipment, net | 18,268 | 11,396 |
Intangible assets, net | 2,670 | 2,376 |
Restricted cash | 758 | 758 |
Other long-term assets | 179 | 180 |
Total assets | 80,324 | 70,667 |
Current liabilities | ||
Accounts payable | 8,703 | 4,376 |
Accrued compensation | 5,650 | 3,861 |
Loan payable | 7,935 | (373) |
Other current liabilities | 4,133 | 2,725 |
Total current liabilities | 26,421 | 10,589 |
Long-term liabilities | ||
Deferred rent | 3,652 | 1,257 |
Long-term Debt, Excluding Current Maturities | 11,880 | 9,890 |
Other non-current liabilities | 220 | 334 |
Total liabilities | 42,173 | 22,070 |
Commitments and contingencies—See note 7 | ||
Stockholders’ equity | ||
Preferred stock, $0.0001 par value; 5,000 authorized, none issued | 0 | 0 |
Common stock, $0.0001 par value; 100,000 authorized; 42,551 and 41,859 shares issued and outstanding as of December 31, 2015 and December 31, 2014, respectively | 4 | 4 |
Additional paid-in capital | 393,322 | 353,233 |
Accumulated deficit | (355,270) | (304,669) |
Accumulated other comprehensive income (loss) | 95 | 29 |
Total stockholders’ equity | 38,151 | 48,597 |
Total liabilities and stockholders’ equity | $ 80,324 | $ 70,667 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable - net of allowance | $ 2,740 | $ 2,727 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 46,554,000 | 42,551,000 |
Common stock, outstanding | 46,554,000 | 42,551,000 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Comprehensive Income (Loss), Net of Tax | $ (50,535) | $ (42,158) | $ (38,283) |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 77 | 36 | 0 |
Revenue | |||
Product revenue | 48,914 | 39,029 | 30,328 |
License and other revenue | 360 | 382 | 266 |
Total revenue | 49,274 | 39,411 | 30,594 |
Cost of revenue | 19,700 | 15,317 | 13,127 |
Gross profit | 29,574 | 24,094 | 17,467 |
Operating expenses | |||
Sales and marketing | 14,734 | 14,385 | 12,629 |
General and administrative | 14,363 | 13,772 | 12,069 |
Research and development | 49,458 | 37,472 | 31,823 |
Total operating expenses | 78,555 | 65,629 | 56,521 |
Loss from operations | (48,981) | (41,535) | (39,054) |
Other income (expense) | |||
Interest income | 176 | 125 | 244 |
Interest expense | (1,536) | (880) | (20) |
Other income (expense) | (160) | 133 | (6) |
Total other income (expense) | (1,520) | (622) | 218 |
Loss before provision for income taxes | (50,501) | (42,157) | (38,836) |
Income tax expense (benefit) | 100 | 40 | (573) |
Net loss | $ (50,601) | $ (42,197) | $ (38,263) |
Net loss per share, basic and diluted | $ (1.15) | $ (1) | $ (0.93) |
Weighted average number of shares outstanding | 44,100 | 42,157 | 41,346 |
Other comprehensive loss | |||
Net loss | $ (50,601) | $ (42,197) | $ (38,263) |
Net unrealized losses on marketable securities, net of tax | $ (11) | $ 3 | $ (20) |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands | Total | Common Stock | Additional paid-in capital | Accumulated other comprehensive loss | Accumulated deficit |
Beginning balance at Dec. 31, 2013 | $ 109,168,000 | $ 4,000 | $ 333,363,000 | $ 10,000 | $ (224,209,000) |
Beginning Balance, Shares at Dec. 31, 2013 | 41,520 | ||||
Stock-based compensation expense | 5,796,000 | 5,796,000 | |||
Employee purchases | $ 812,000 | 812,000 | |||
Shares issued | 89 | ||||
Shares issued under stock-based compensation plans, net of cancellations | $ 531,000 | 531,000 | |||
Shares issued under stock-based compensation plans, net of cancellations, Shares | 101 | ||||
Net loss | (38,263,000) | (38,263,000) | |||
Net unrealized losses on marketable securities, net of tax | (20,000) | (20,000) | |||
Ending Balance at Dec. 31, 2014 | 78,024,000 | $ 4,000 | 340,502,000 | (10,000) | (262,472,000) |
Ending Balance, Shares at Dec. 31, 2014 | 41,859 | ||||
Issuance of stock in lieu of accrued bonuses | 863,000 | ||||
Issuance of stock in lieu of accrued bonuses, Shares | 105 | ||||
Stock-based compensation expense | 9,995,000 | ||||
Employee purchases | 884,000 | ||||
Shares issued | 122 | ||||
Restricted stock awards issued, net of cancellations, Shares | 284 | ||||
Shares issued under stock-based compensation plans, net of cancellations | 989,000 | ||||
Shares issued under stock-based compensation plans, net of cancellations, Shares | 181 | ||||
Net loss | (42,197,000) | (42,197,000) | |||
Temporary Equity, Foreign Currency Translation Adjustments | 36,000 | ||||
Net unrealized losses on marketable securities, net of tax | 3,000 | ||||
Ending Balance at Dec. 31, 2015 | 48,597,000 | $ 4,000 | 353,233,000 | 29,000 | (304,669,000) |
Ending Balance, Shares at Dec. 31, 2015 | 42,551 | ||||
Issuance of stock in lieu of accrued bonuses | $ 364,000 | ||||
Issuance of stock in lieu of accrued bonuses, Shares | 28 | ||||
Stock-based compensation expense | $ 9,236,000 | 9,236,000 | |||
Employee purchases | 921,000 | 921,000 | |||
Shares issued | 138 | ||||
Restricted stock awards issued, net of cancellations | 0 | 0 | |||
Restricted stock awards issued, net of cancellations, Shares | 421 | ||||
Issuance of common stock, net of offering expenses | 28,856,000 | ||||
Issuance of common stock, net of offering expenses, Shares | 3,317 | ||||
Shares issued under stock-based compensation plans, net of cancellations | 712,000 | 712,000 | |||
Shares issued under stock-based compensation plans, net of cancellations, Shares | 99 | ||||
Net loss | (50,601,000) | (50,601,000) | |||
Temporary Equity, Foreign Currency Translation Adjustments | 77,000 | ||||
Net unrealized losses on marketable securities, net of tax | (11,000) | (11,000) | |||
Ending Balance at Dec. 31, 2016 | $ 38,151,000 | $ 4,000 | $ 393,322,000 | $ 95,000 | $ (355,270,000) |
Ending Balance, Shares at Dec. 31, 2016 | 46,554 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net loss | $ (50,601) | $ (42,197) | $ (38,263) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 3,916 | 3,405 | 2,656 |
Accretion (Amortization) of Discounts and Premiums, Investments | 89 | 180 | 702 |
Amortization of premiums on investments | 388 | 285 | 0 |
Stock-based compensation | 9,236 | 9,995 | 5,796 |
Provision for bad debt | 13 | 25 | 0 |
Non-cash inventory adjustments | 134 | 594 | 450 |
Gain on sale of investment in preferred stock | (9) | (223) | 0 |
Other non-cash adjustments | 145 | 186 | 185 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,250) | (1,983) | (2,030) |
Inventories | (3,450) | (1,286) | (229) |
Prepaid expenses and other assets | (613) | (36) | (184) |
Accounts payable | 4,105 | (757) | 85 |
Accrued compensation | 2,172 | (458) | 1,797 |
Other liabilities | 1,088 | 355 | (537) |
Net cash used in operating activities | (35,637) | (31,915) | (29,572) |
Investing activities | |||
Payments for intellectual property licenses | (1,500) | (550) | (350) |
Purchases of property and equipment | (7,000) | (3,756) | (5,726) |
Purchases of available-for-sale securities | (33,688) | (22,646) | (28,054) |
Proceeds from sales of marketable securities | 8,015 | 223 | 7,497 |
Maturities of marketable securities | 10,050 | 46,050 | 56,050 |
Net cash provided by (used in) investing activities | (24,123) | 19,321 | 29,417 |
Financing activities | |||
Proceeds from issuance of common stock | 30,920 | 884 | 812 |
Costs incurred in conjunction with public offering | (1,143) | 0 | 0 |
Principal repayment of borrowings | (40) | (22) | (56) |
Payments of Debt Issuance Costs | (90) | (718) | 0 |
Proceeds from borrowings | 10,000 | 10,000 | 0 |
Proceeds from stock option exercises | 712 | 989 | 531 |
Net cash provided by financing activities | 40,359 | 11,133 | 1,287 |
Effect of Exchange Rate on Cash and Cash Equivalents | (25) | (9) | 0 |
Net increase (decrease) in cash and cash equivalents | (19,426) | (1,470) | 1,132 |
Cash and cash equivalents at beginning of year | 35,385 | 36,855 | |
Cash and cash equivalents at end of year | 15,959 | 35,385 | 36,855 |
Non-cash investing and financing activities: | |||
Transfer of systems from property and equipment into inventory | 263 | 225 | 256 |
Property and equipment costs incurred but not paid included in accounts payable | 1,159 | 146 | 124 |
Intellectual property acquisition included in accrued expenses | 0 | 800 | 550 |
Supplemental cash flow information: | |||
Cash paid for interest | 1,130 | 572 | 20 |
Cash received for interest | 266 | 305 | 244 |
Cash paid for income taxes, net | $ 65 | $ 10 | $ 24 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and basis of presentation | Organization and basis of presentation Organization GenMark Diagnostics, Inc., the Company or GenMark, was formed by Osmetech plc, or Osmetech, as a Delaware corporation in February 2010, and had no operations prior to its initial public offering, or the IPO, which was completed in June 2010. Immediately prior to the closing of the IPO, GenMark acquired all of the outstanding ordinary shares of Osmetech in a reorganization, accounted for in a manner similar to a pooling-of-interests, under the applicable laws of the United Kingdom. As a result of the reorganization, all of the issued ordinary shares in Osmetech were cancelled in consideration of (i) the issuance of common stock of GenMark to the former shareholders of Osmetech and (ii) the issuance of new shares in Osmetech to GenMark. Following the reorganization, Osmetech became a subsidiary controlled by GenMark, and the former shareholders of Osmetech received shares of GenMark. Any historical discussion of GenMark relates to Osmetech and its consolidated subsidiaries prior to the reorganization. In September 2012, GenMark placed Osmetech into liquidation to simplify its corporate structure. The liquidation of Osmetech was completed in the fourth quarter of 2013. Segment Reporting The Company currently operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is the chief executive officer, in deciding how to allocate resources and assessing performance. The Company’s business operates in one operating segment because the Company’s chief operating decision maker evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or U.S. GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the notes thereto. The Company’s significant estimates included in the preparation of the financial statements are related to accounts receivable, inventories, property and equipment, intangible assets, employee related compensation accruals, warranty liabilities, tax valuation accounts and stock-based compensation. Actual results could differ from those estimates. Basis of Presentation The accompanying financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net losses from operations since its inception and has an accumulated deficit of $355,270,000 at December 31, 2016 . Management expects operating losses to continue through the foreseeable future. The Company's ability to transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support its cost structure through expanding its product offerings and consequently increasing its product revenues. Cash, cash equivalents, restricted cash, and investments at December 31, 2016 totaled $41,566,000 . The Company has prepared cash flow forecasts which indicate, based on the Company’s current cash resources available, that the Company will have sufficient resources to fund its business for at least the next 12 months from the date of this filing. The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and applicable regulations of the Securities and Exchange Commission, or the SEC. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of Significant Accounting Policies and Significant Accounts Cash and Cash Equivalents and Marketable Securities Cash and cash equivalents consist of cash on deposit with banks, money market instruments and certificates of deposit with original maturities of three months or less at the date of purchase. Marketable securities consist of certificates of deposits that mature in greater than three months . Marketable securities are accounted for as "available-for-sale" with the carrying amounts reported in the balance sheets stated at cost, which approximates their fair market value, with unrealized gains and losses, if any, reported as a separate component of stockholders' equity and included in comprehensive loss. Restricted Cash Restricted cash represents amounts designated for uses other than current operations and includes $758,000 at December 31, 2016 held as security for the Company’s letter of credit with Banc of California. Fair Value of Financial Instruments The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of financial instruments such as accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued liabilities approximate the related fair values due to the short-term maturities of these instruments. Receivables Accounts receivable consist of amounts due to the Company for sales to customers and are recorded net of an allowance for doubtful accounts. The allowance for doubtful accounts is determined based on an assessment of the collectability of specific customer accounts, the aging of accounts receivable, and a reserve for unknown items based upon the Company’s historical experience. The allowance for doubtful accounts as of December 31, 2016 , is as follows (in thousands): Allowance for doubtful accounts Balance December 31, 2014 $ 2,702 Provision for doubtful accounts 25 Balance December 31, 2015 $ 2,727 Provision for doubtful accounts 13 Balance December 31, 2016 $ 2,740 The Company has included $2,702,000 in the allowance for doubtful accounts as of December 31, 2016 and 2015 for past due amounts from its former customer, Natural Molecular Testing Corporation. Inventories Inventories are stated at the lower of cost (first-in, first-out) or net realizable value and include direct labor, materials, and manufacturing overhead. The Company periodically reviews inventory for evidence of slow-moving or obsolete parts, and writes inventory down to net realizable value, as needed. This write-down is based on management’s review of inventories on hand, compared to estimated future usage and sales, shelf-life assumptions, and assumptions about the likelihood of obsolescence. If actual market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Inventory impairment charges establish a new cost basis for inventory and charges are not reversed subsequently to income, even if circumstances later suggest that increased carrying amounts are recoverable. Property and Equipment-net Property, equipment and leasehold improvements are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which are: Machinery and laboratory equipment 3 – 5 years Instruments 4 – 5 years Office equipment 3 – 7 years Leasehold improvements over the shorter of the remaining life of the lease or the useful economic life of the asset Property and equipment includes diagnostic instruments used for sales demonstrations or placed with customers under several types of arrangements, including performance evaluation programs, or PEPs, and reagent rental agreements. PEPs are placed with customers for evaluation periods of up to three months and the Company retains title to the instruments under these arrangements. Maintenance and repair costs are expensed as incurred. Intangible Assets Intangible assets are comprised of licenses or sublicenses to technology covered by patents owned by third parties, and are amortized on a straight-line basis over the expected useful lives of these assets, which is generally 10 years. Amortization of licenses typically begins upon the Company obtaining access to the licensed technology and is recorded in cost of revenues for licenses supporting commercialized products. The amortization of licenses to technology supporting products in development is recorded in research and development expenses. Impairment of Long-Lived Assets The Company assesses the recoverability of long-lived assets, including intangible assets, by periodically evaluating the carrying value whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If impairment is indicated, the Company writes down the carrying value of the asset to its estimated fair value. This fair value is primarily determined based on estimated discounted cash flows. The Company did not recognize any impairment charges during the years ended December 31, 2016 and 2015. Revenue Recognition The Company recognizes revenue from product sales and contract arrangements, net of discounts and sales related taxes. The Company recognizes revenue from product sales when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed or determinable and collectability is reasonably assured. The Company offers customers the choice to either purchase a system outright or to receive a system free of charge in exchange for an annual minimum purchase commitment for diagnostic test cartridges. When a system is sold, the Company generally recognizes revenue upon shipment of the unit, however, if the end user already has the instrument being purchased installed at its location, revenue is recognized when the revenue recognition terms other than delivery have been satisfied. When a system is placed free of charge under a “reagent rental” agreement, the Company retains title to the equipment and it remains capitalized on the balance sheet under property and equipment. Under reagent rental agreements, the Company’s customers pay an additional system rental fee for each test cartridge purchased which varies based on the monthly volume of test cartridges purchased. The system rental fee and diagnostic test cartridges are recognized as contingent rental payments and are included in product revenue in the Company’s consolidated financial statements. The Company has not had significant product returns and is not contractually obligated to accept returns unless such returns are related to warranty provisions. The Company generally does not accept reagent product returns, mainly due to FDA regulations, and does not offer volume rebates or provide price protection. The Company enters into PEP agreements pursuant to which an instrument is installed on the premises of a pre-qualified customer for the purpose of allowing the customer to evaluate the instrument’s functionality over an extended trial period. The customer is generally required to purchase a minimum quantity of reagents and, at the end of the evaluation period, must purchase or return the instrument or sign a reagent rental agreement. Revenues related to royalties received from licenses are recognized evenly over the contractual period to which the license relates. In those cases where the Company bills shipping and handling costs to customers, the amounts billed are included in product revenue. In 2016 and 2015, Laboratory Corporation of America, Inc. represented 27% and 17% , respectively, of the Company's total revenue. In 2014, no single customer represented more than 10% of the Company's total revenue. Product Warranties The Company generally offers a one -year warranty for its instruments sold to customers and up to a sixty day warranty for reagents and provides for the estimated cost of the product warranty at the time the system sale is recognized. Factors that affect the Company’s warranty reserves include the number of units sold, historical and anticipated rates of warranty repairs and the cost per repair. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. Product warranty reserve activity for the years ended December 31, 2016 , 2015 and 2014 is as follows (in thousands): 2016 2015 2014 Beginning balance $ 118 $ 195 $ 226 Warranty expenses incurred (421 ) (430 ) (608 ) Provisions 522 353 577 Ending balance $ 219 $ 118 $ 195 Research and Development Costs The Company expenses all research and development costs in the periods in which they are incurred unless there is alternative future use that supports the capitalization of an asset. Income Taxes Current income tax expense is the amount of income taxes expected to be payable for the current year. A deferred income tax liability or asset is established for the expected future tax consequences resulting from the differences in financial reporting and tax bases of assets and liabilities. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized. A full valuation allowance has been recorded against the Company’s net deferred tax assets due to the uncertainty surrounding the Company’s ability to utilize these assets in the future. The Company provides for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement standards prescribed by the authoritative guidance on income taxes. Amounts for uncertain tax positions are adjusted in periods when new information becomes available or when positions are effectively settled. The Company recognizes accrued interest related to uncertain tax positions as a component of income tax expense. A tax position that is more likely than not to be realized is measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with the taxing authority that has full knowledge of all relevant information. Measurement of a tax position that meets the more likely than not threshold considers the amounts and probabilities of the outcomes that could be realized upon settlement using the facts, circumstances and information available at the reporting date. Stock-Based Compensation The Company recognizes stock-based compensation expense related to stock options, shares purchased under the Company's ESPP, restricted stock awards, restricted stock units and market-based stock units granted to employees and directors in exchange for services. The compensation expense is based on the fair value of the applicable award utilizing various assumptions regarding the underlying attributes of the award. The stock-based compensation expense is recorded in cost of revenues, sales and marketing, research and development, and/or general and administrative expenses based on the employee's respective function. The estimated fair value of stock granted, net of forfeitures expected to occur during the vesting period, is amortized as compensation expense that approximates straight-line expense to reflect vesting as it occurs. The stock option expense is derived from the Black-Scholes Option Pricing Model that uses several judgment-based variables to calculate the expense. The market-based stock expense is derived from the Monte Carlo Simulation Valuation. The inputs utilized in the valuation of the stock-based awards include the following factors: • Expected Term. Expected term represents the period that the stock-based awards are expected to be outstanding and is determined by using the simplified method. • Expected Volatility . Expected volatility represents the expected volatility in the Company’s stock price over the expected term of the option or market-based award and is determined by review of the Company’s and similar companies’ historical experience. • Expected Dividend . The valuation methods required a single expected dividend yield as an input. The Company assumed no dividends as it has never paid dividends and has no current plans to do so. • Risk-Free Interest Rate. The risk-free interest rate is based on published U.S. Treasury rates in effect at the time of grant for periods corresponding with the expected term of the option or market-based award. The compensation expense related to the grant of restricted stock awards or units is calculated as the fair market value of the stock on the grant date as further adjusted to reflect expected forfeitures. Foreign Currency Translation During 2015, the Company established foreign subsidiaries with currencies other than the U.S. Dollar. The assets and liabilities of the Company's entities outside the U.S. are translated into U.S. Dollars based on the foreign currency exchange rates at the end of each period, while revenues and expenses are translated at weighted average exchange rates during the applicable period. Gains or losses resulting from these foreign currency translations of the Company's assets and liabilities are recorded in accumulated comprehensive loss in the consolidated balance sheets. Foreign currency translation impacts recorded in accumulated other comprehensive loss for the year ended December 31, 2016 and 2015 was $77,000 and $36,000 , respectively. Transactions in foreign currencies were recognized using the rate of exchange prevailing at the date of the transaction. Foreign exchange losses, which are included in the accompanying consolidated statements of operations, totaled $169,000 , $91,000 and $9,000 for the years ended December 31, 2016 , 2015 and 2014 , respectively, and relate primarily to transactions denominated in Euros. Net Loss per Common Share Basic net loss per share is calculated by dividing loss available to stockholders of our common stock (the numerator) by the weighted average number of shares of the Company's common stock outstanding during the period (the denominator). Shares issued during the period and shares reacquired during the period are weighted for the portion of the period that they were outstanding. Diluted loss per share is calculated in a similar way to basic loss per share except that the denominator is increased to include the number of additional shares that would have been outstanding if the dilutive potential shares had been issued unless the effect would be anti-dilutive. The calculations of diluted net loss per share for the years ended December 31, 2016 , 2015 and 2014 did not include the effects of the following stock options or other unvested equity awards which were outstanding as of the end of each year because the inclusion of these securities would have been anti-dilutive (in thousands). Year Ended December 31, 2016 2015 2014 Options outstanding to purchase common stock 2,570 3,004 2,479 Other unvested equity awards 2,000 1,267 948 Total 4,570 4,271 3,427 Concentration of Risk Financial instruments which potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investment securities, and accounts receivable. We limit our exposure to credit loss by placing our cash with high credit quality financial institutions. We have established guidelines relative to diversification of our cash and investment securities and their maturities that are intended to secure safety and liquidity. The following table summarizes customers who accounted for 10% or more of net accounts receivable: December 31, 2016 2015 Laboratory Corporation of America, Inc. 33 % 35 % Comprehensive Loss The Company has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The Company’s comprehensive loss comprises net losses, unrealized gains and losses on available for sale securities, and foreign currency translation. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board, or the FASB, or other standard setting bodies that the Company adopts as of the specified effective date. The Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In March 2016, the FASB issued Accounting Standards Update, or ASU, 2016-09, Improvements to Employee Share-Based Payment Accounting. This guidance simplifies how several aspects of share-based payments are accounted for and presented in the financial statements. This guidance is effective for the Company beginning January 1, 2017 and the Company will adopt this ASU in the first quarter of 2017. The Company has excess tax benefits for which a benefit could not be previously recognized of approximately $1,979,000 . Upon adoption, the balance of the unrecognized excess tax benefits will be reversed with the impact recorded to retained earnings, including any change to the valuation allowance as a result of adoption. Due to the full valuation allowance on the Company's U.S. deferred tax assets, the Company does not expect any impact to the financial statements as a result of this adoption. In February 2016, the FASB issued ASU 2016-02, Leases. This ASU outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new guidance must be adopted using the modified retrospective approach and will be effective for the Company starting in the first quarter of 2019, with early adoption permitted. The Company is evaluating the effects adoption will have on its consolidated financial statements. The Company expects this adoption will result in a material increase in the assets and liabilities on our consolidated balance sheets and will likely have an immaterial impact on our consolidated statements of comprehensive loss. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, an updated standard on revenue recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported by companies while also improving comparability in the financial statements of companies reporting using International Financial Reporting Standards or U.S. GAAP. The main purpose of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures of revenue, provide guidance for transactions that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December l5, 2017, with early adoption permitted but not earlier than the original effective date. Accordingly, the updated standard is effective for the Company in the first quarter of fiscal 2018. The Company is currently evaluating the overall impact this standard will have on our consolidated financial statements, as well as the expected timing and method of adoption. Based on our preliminary assessment, the Company does not anticipate a material impact on its financial statements. The Company is continuing this assessment, which may identify other impacts. |
Intangible Assets, net
Intangible Assets, net | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net | Intangible Assets, net Intangible assets as of December 31, 2016 and 2015 consisted of the following (in thousands): December 31, 2016 December 31, 2015 Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Licensed intellectual property $ 4,250 $ (1,580 ) $ 2,670 $ 3,550 $ (1,174 ) $ 2,376 In March 2012, the Company entered into a license agreement with Caliper Life Sciences Inc., or Caliper, pursuant to which the Company obtained a non-exclusive license under Caliper’s microfluidics patent portfolio. In consideration for the license, the Company agreed to pay Caliper $400,000 in up-front payments recorded as an intangible asset on the Company’s balance sheet plus certain sales-based milestone payments, as well as a royalty on the sale of certain products. As part of the agreement, the Company obtained an unconditional release from any and all claims based upon any alleged infringement of the licensed patents prior to the effective date of the agreement. The Company met sales-based milestones in March 2013, March 2014 and August 2015 triggering the payment of $450,000 , $550,000 , and $800,000 , respectively, which were made after the fiscal year during which the respective milestone was achieved. In July 2012, the Company entered into a development collaboration and license agreement with Advanced Liquid Logic, Inc., or ALL, which was acquired by Illumina, Inc. in July 2013. Under the terms of the agreement, the Company established a collaborative program to develop in-vitro diagnostic products incorporating ALL’s proprietary electrowetting technology in conjunction with the Company’s electrochemical detection technology. The Company paid ALL an upfront license payment of $250,000 and agreed to pay up to $1,750,000 in potential additional milestone payments. Pursuant to the agreement, as amended, the Company will be obligated to pay to ALL a royalty consisting of a low- to mid-single digit percent of net sales of designated licensed products containing ALL components. The Company met certain milestones in August 2013, June 2014 and September 2016 resulting in the payment of $200,000 , $350,000 and $700,000 , respectively, to ALL. Intellectual property licenses had a weighted average remaining amortization period of 5.40 years as of December 31, 2016 . Amortization expense for intangible assets amounted to $406,000 , $294,000 and $227,000 for the years ended December 31, 2016 , 2015 and 2014 , respectively. Estimated future amortization expense for these licenses is as follows (in thousands): Years Ending December 31, Future Amortization Expense 2017 $ 497 2018 497 2019 497 2020 497 2021 497 Thereafter 185 Total $ 2,670 |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity On June 14, 2016, the Company entered into an Equity Distribution Agreement, or the Distribution Agreement, with Canaccord Genuity Inc., as sales agent, or Canaccord, pursuant to which the Company could, at its discretion, offer and sell, from time to time, through Canaccord shares of its common stock having an aggregate offering price of up to $30,000,000 . Under the Distribution Agreement, Canaccord could sell shares by any method deemed to be an “at-the-market” offering as defined in Rule 415 under the Securities Act or any other method permitted by law, including in privately negotiated transactions. The Company began sales under the Distribution Agreement in August 2016 pursuant to an effective shelf registration statement on Form S-3 previously filed with the SEC. During the three months ended September 30, 2016, the Company sold 3.3 million shares of common stock, at an average per share price of $9.04 , for aggregate gross proceeds of $30,000,000 . The Company incurred $1,143,000 in related transaction costs, comprising commissions paid to Canaccord of 3.0% of the aggregate gross proceeds from each sale of shares occurring pursuant to the Distribution Agreement, or $900,000 , and $243,000 in additional miscellaneous expenses. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Compensation Related Costs [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In 2010, the Company adopted the 2010 Equity Incentive Plan, or the 2010 Plan, which provides for the grant of incentive and nonstatutory stock options, restricted stock, stock appreciation rights, restricted stock units, restricted stock bonuses and other stock-based awards. Employee participation in the 2010 Plan is at the discretion of the compensation committee of the board of directors of the Company. All stock options granted under the 2010 Plan are exercisable at a price equal to the closing quoted market price of the Company’s shares on the NASDAQ Global Market on the date of grant and generally vest over a period of between one and four years. The Company estimates potential forfeitures of stock-based award grants and adjusts compensation cost recorded accordingly. The estimate of forfeitures is based on historical forfeiture experience and is adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of evaluation and will also impact the amount of stock compensation expense to be recognized in future periods. Stock options are generally exercisable for a period up to 10 years after grant and are forfeited if employment is terminated before the options vest. As of December 31, 2016 , there were 79,455 shares available for future grant of awards under the 2010 Plan. The following table summarizes stock option activity during the year ended December 31, 2016 : Number of shares Weighted average exercise price Outstanding at December 31, 2015 3,004,011 $ 9.74 Granted 5,000 $ 4.70 Exercised (98,941 ) $ 7.20 Forfeitures (340,520 ) $ 11.96 Outstanding at December 31, 2016 2,569,550 $ 9.53 Vested and expected to vest at December 31, 2016 2,490,256 $ 9.45 Exercisable at December 31, 2016 1,937,739 $ 8.75 The weighted average fair value of options granted during the years ended December 31, 2016 , 2015 and 2014 was $2.27 , $6.02 and $7.45 per share, respectively. Options that were exercisable as of December 31, 2016 had a remaining weighted average contractual term of 5.67 years and an aggregate intrinsic value of $7,036,000 . As of December 31, 2016 , there was $3,323,000 of unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted average period of 1.57 years. The intrinsic value of options exercised during the years ended December 31, 2016 , 2015 and 2014 was $896,000 , $938,000 and $584,000 , respectively. As of December 31, 2016 , there were 2,569,550 stock options outstanding, which had a remaining weighted average contractual term of 6.20 years and an aggregate intrinsic value of $7,532,000 . Valuation of Stock-Based Awards The assumptions used in the valuation of stock-based awards for the years ended December 31, 2016 , 2015 and 2014 , are summarized in the following table: Years Ended December 31, 2016 2015 2014 Expected volatility (%) 51 % 49 % 69 % Expected life (years) 5.90 6.06 6.08 Risk free rate (%) 1.35 % 1.67 % 1.82 % Expected dividend yield (%) — % — % — % Restricted Stock Awards and Units In March 2013, the Company transitioned to granting restricted stock units under the 2010 Plan in lieu of granting restricted stock awards. The Company’s restricted stock activity for the year ended December 31, 2016 was as follows: Restricted Stock Awards Restricted Stock Units Number of shares Weighted Average Grant Date Fair Value Number of shares Weighted Average Grant Date Fair Value Unvested at December 31, 2015 32,837 $ 5.00 934,977 $ 12.66 Granted — $ — 1,580,273 $ 5.80 Vested (32,369 ) $ 4.91 (444,365 ) $ 11.79 Forfeitures (312 ) $ 11.19 (304,762 ) $ 7.65 Unvested at December 31, 2016 156 $ 11.19 1,766,123 $ 7.18 Restricted stock awards or units may be granted at the discretion of the compensation committee of the board of directors under the 2010 Plan in connection with the hiring or retention of personnel and are subject to certain conditions. Restrictions expire at certain dates after the grant date in accordance with specific provisions in the applicable award agreement. As of December 31, 2016 , there was $1,000 of unrecognized compensation cost related to restricted stock awards, which is expected to be recognized over a weighted average-period of 0.04 years. The total fair value of restricted stock awards that vested during the years ended December 31, 2016 , 2015 and 2014 was $190,000 , $580,000 and $3,466,000 , respectively. As of December 31, 2016 , there was $8,509,000 of unrecognized compensation cost related to restricted stock units, which is expected to be recognized over a weighted average period of 2.80 years. The total fair value of restricted stock units that vested during the years ended December 31, 2016 , 2015 and 2014 was $3,192,000 , $ 4,457,000 and $2,121,000 , respectively. The Company issued market-based stock units in February 2015 and February 2016, which may result in the recipient receiving shares of stock equal to up to 200% of the target number of units granted. The vesting and issuance of Company stock depends on the Company's stock performance as compared to the NASDAQ Composite Index over the three-year period following the grant. As of December 31, 2016 , there was $781,000 of unrecognized stock-based compensation expense related to these awards, which is expected to be recognized over a weighted average period of 1.75 years. The total fair value of market-stock units that vested during the years ended December 31, 2016 and 2015 was $ 2,433,000 and $29,000 , respectively. The Company’s market-based stock unit activity for the year ended December 31, 2016 was as follows: Market-Based Stock Units Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2015 136,730 18.07 Units granted 335,253 4.94 Vested (192,941 ) 8.01 Cancelled (56,269) 9.81 Unvested at December 31, 2016 222,773 7.34 The fair value of these market-based stock units was estimated on the date of grant using the Monte Carlo Simulation Valuation Model, which estimates the potential outcome of achieving the market condition based on simulated future stock prices, with the following assumptions for the year ended December 31, 2016 : 2016 2015 Expected volatility 49 % 45 % Risk-free interest rate 0.90 % 1.10 % Expected dividend — % — % Weighted average fair value $ 4.94 $ 18.07 The Company granted 43,200 performance-based restricted stock units in March 2014 with a grant date fair value of $12.30 per share. The vesting and issuance of Company stock pursuant to these awards depends on obtaining regulatory clearance of a designated number of ePlex products within a defined time. Stock-based compensation expense for performance-based awards is recognized when it is probable that the applicable performance criteria will be satisfied. The probability of achieving the relevant performance criteria is evaluated on a quarterly basis. On December 31, 2014 , 10,800 units were earned and vested with a total fair value of $147,000 . On each of December 31, 2016 and 2015 , 10,800 units were forfeited and cancelled as the related performance metrics were not achieved by such dates. As of December 31, 2016 , there was $133,000 in unrecognized stock-based compensation expense related to the remaining unvested awards. Employee Stock Purchase Plan Following the adoption of the ESPP by the Company’s board of directors in March 2013, the Company's stockholders approved the ESPP in May 2013 at the Company's Annual Meeting of Stockholders. A total of 650,000 shares of the Company’s common stock are reserved for issuance under the ESPP, which permits eligible employees to purchase common stock at a discount through payroll deductions. The price at which stock is purchased under the ESPP is equal to 85% of the fair market value of the common stock on the first or the last day of the offering period, whichever is lower. Generally, each offering under the ESPP will be for a period of six months as determined by the Company's board of directors; provided that no offering period may exceed 27 months . Employees may invest up to 10% of their gross compensation through payroll deductions. In no event may an employee purchase more than 1,500 shares of common stock during any six-month offering period. As of December 31, 2016 , there were 267,839 shares of common stock available for issuance under the ESPP. The ESPP is a compensatory plan as defined by the authoritative guidance for stock compensation. As a result, stock-based compensation expense related to the ESPP, calculated using the Black-Scholes model at the beginning of each six-month offering period, has been recorded during the year ended December 31, 2016 . A summary of ESPP activity for the years ended December 31, 2016 and 2015 is as follows (in thousands, except share, and per share data): Year Ended December 31, 2016 2015 Shares issued 138,058 122,245 Weighted average fair value of shares issued $ 6.67 $ 7.22 Employee purchases $ 921 $ 884 Stock-Based Compensation Expense Recognition Stock-based compensation was recognized in the consolidated statements of comprehensive loss as follows (in thousands): Years Ended December 31, 2016 2015 2014 Cost of revenue $ 258 $ 209 $ 73 Sales and marketing 2,329 3,050 1,848 Research and development 2,482 2,498 1,194 General and administrative 4,167 4,238 2,681 Stock-based compensation expense $ 9,236 $ 9,995 $ 5,796 No stock-based compensation was capitalized during the periods presented, and there was no unrecognized tax benefit related to stock-based compensation for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's income (loss) before provision (benefit) for income taxes for the years ended December 31, 2016, 2015, and 2014, respectively, was generated in the following jurisdictions (in thousands): Years Ended December 31, 2016 2015 2014 Domestic $ (50,651 ) $ (42,221 ) $ (37,766 ) Foreign 150 64 (1,070 ) Worldwide Income (Loss) $ (50,501 ) $ (42,157 ) $ (38,836 ) The components of income tax expense (benefit) were as follows for the years ended December 31, 2016 , 2015 , and 2014 , respectively (in thousands): Years Ended December 31, 2016 2015 2014 Current expense: U.S. federal $ (10 ) $ — $ — State 31 25 (573 ) Foreign (non-U.S. entities) 70 20 — Total current expense (benefit) $ 91 $ 45 $ (573 ) Deferred expense (benefit): U.S. Federal $ 4 $ — $ — State 1 — — Total deferred expense (benefit) $ 5 $ — $ — The components of net deferred income taxes consisted of the following at December 31, 2016 and 2015 , respectively (in thousands): As of December 31, 2016 2015 Deferred income tax assets: NOL and credit carryforwards $ 74,375 $ 59,907 Compensation accruals 4,660 3,952 Accruals and reserves 3,437 2,201 State tax provision 8 8 Inventory adjustments 996 559 Intangible assets 645 361 Other 144 5 Subtotal: deferred tax assets 84,265 66,993 Valuation allowance (82,481 ) (66,211 ) Total deferred tax assets 1,784 782 Deferred income tax liabilities: Depreciation (1,784 ) (782 ) Subtotal: deferred tax liabilities (1,784 ) (782 ) Net deferred tax assets $ — $ — A reconciliation of income tax expense to the amount computed by applying the statutory federal income tax rate to the loss from operations is summarized for the years ended December 31, 2016 , 2015 , and 2014 , respectively, as follows: Years Ended December 31, 2016 2015 2014 U.S. Federal statutory income tax rate 34.0 % 34.0 % 34.0 % Permanent differences (0.3 )% (0.1 )% (0.3 )% State taxes 2.3 % 2.4 % 2.6 % Executive compensation limitation (0.1 )% (0.8 )% (0.7 )% Stock-based compensation (3.5 )% (1.4 )% (1.5 )% Other (0.4 )% 2.1 % 0.3 % Valuation allowance (32.2 )% (36.9 )% (32.9 )% Total tax provision (0.2 )% (0.7 )% 1.5 % The Company had federal net operating loss (NOL) carryforwards available of approximately $206,900,000 as of December 31, 2016 after consideration of limitations under Section 382 of the Internal Revenue Code, or Section 382, as further described below. Additionally, the Company had state NOL carryforwards available of $165,000,000 as of December 31, 2016 . These federal and state NOLs may be used to offset future taxable income and will begin to expire in 2025 and 2017, respectively. Of the $206,900,000 and $165,000,000 of federal and state NOL carryforwards at December 31, 2016 , $5,402,000 represents excess tax benefits related to equity compensation which will result in an increase in equity if and when such excess benefits are ultimately realized. The future utilization of the Company’s NOL carryforwards to offset future taxable income may be subject to a substantial annual limitation as a result of changes in ownership by stockholders that hold 5% or more of the Company’s common stock . An assessment of such ownership changes under Section 382 was completed through December 31, 2016. As a result of this assessment, the Company determined that it experienced multiple ownership changes through 2016 which will limit the future utilization of NOL carryforwards. The Company has reduced its deferred tax assets related to NOL carryovers that are anticipated to expire unused as a result of ownership changes. These tax attributes have been excluded from deferred tax assets with a corresponding reduction of the valuation allowance with no net effect on income tax expense or the effective tax rate. Additionally, future ownership changes may further impact the utilization of existing NOLs. The Company has established a full valuation allowance for its deferred tax assets due to uncertainties that preclude it from determining that it is more likely than not that the Company will be able to generate sufficient taxable income to realize such assets. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three year period ended December 31, 2016 . Such objective evidence limits the ability to consider other subjective evidence such as the Company's projections for future growth. Based on this evaluation, as of December 31, 2016 , a valuation allowance of $82,481,000 has been recorded in order to measure only the portion of the deferred tax asset that more likely than not will be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence, such as estimates of future taxable income during carryforward periods and the Company's projections for growth. The Company applies the two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount, which is more than 50% likely of being realized upon ultimate settlement. Income tax positions must meet a more likely than not recognition threshold at the effective date to be recognized upon the adoption of ASC 740 and in subsequent periods. This interpretation also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The following table summarizes the changes to unrecognized tax benefits for the years ended December 31, 2016 , 2015 and 2014 , respectively (in thousands): Years Ended December 31, 2016 2015 2014 Beginning balance of unrecognized tax benefits $ — $ — $ 382 Lapses in the statute of limitations — — (382 ) Ending balance of unrecognized tax benefits $ — $ — $ — At December 31, 2016 and December 31, 2015 , the Company had not accrued any interest or penalties related to uncertain tax positions. The Company does not anticipate that there will be a significant change in the amount of unrecognized tax benefits over the next twelve months. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. The Company is subject to taxation in the United States and various state and foreign jurisdictions. The Company's Federal and state returns since inception are subject to examination due to the carryover of net operating losses. As of December 31, 2016 , the Company’s tax years from 2011 through 2012 are subject to examination by the United Kingdom tax authorities. The statute of limitations for the assessment and collection of income taxes related to other foreign tax returns varies by country. In the foreign countries where the Company has operations, these time periods generally range from three to five years after the year for which the tax return is due or the tax is assessed. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company has lease agreements for its office, manufacturing, warehousing and laboratory space and for office equipment. Rent and operating expenses charged were $1,871,000 , $1,233,000 and $1,147,000 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Pursuant to the Company’s lease agreements, a portion of the monthly rent has been deferred. The balance deferred at December 31, 2016 and 2015 was $4,097,000 and $1,445,000 , respectively. Annual future minimum obligations for leases as of December 31, 2016 are as follows (in thousands): Years Ending December 31, Amount 2017 $ 1,644 2018 1,792 2019 1,913 2020 1,972 2021 1,372 Thereafter 1,365 Total minimum lease payments $ 10,058 Legal Proceedings From time to time, the Company is party to litigation and other legal proceedings in the ordinary course, and incidental to the conduct of its business. While the results of any litigation or other legal proceedings are uncertain, the Company does not believe the ultimate resolution of any pending legal matters is likely to have a material effect on its financial position or results of operations. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory on hand as of December 31, 2016 and 2015 comprised the following (in thousands): December 31, 2016 2015 Raw materials $ 2,171 $ 1,147 Work-in-process 1,488 693 Finished goods 2,974 1,214 $ 6,633 $ 3,054 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment comprised the following as of December 31, 2016 and 2015 (in thousands): December 31, 2016 2015 Property and equipment—at cost: Plant and machinery $ 10,145 $ 7,728 Instruments 9,869 8,195 Office equipment 1,714 1,526 Leasehold improvements 10,100 4,311 Total property and equipment—at cost 31,828 21,760 Less accumulated depreciation (13,560 ) (10,364 ) Property and equipment, net $ 18,268 $ 11,396 Depreciation expense was $3,510,000 , $3,112,000 and $2,429,000 for the years ended December 31, 2016 , 2015 and 2014 , respectively. During the years ended December 31, 2016 , 2015 and 2014 , the Company disposed of certain assets no longer in use with a net book value of $76,000 , $153,000 , and $102,000 , respectively, recorded to cost of revenue, sales and marketing, research and development, or general and administrative expenses based on the asset's respective use. |
Loan payable
Loan payable | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Loan payable | Loan payable As of December 31, 2016 and 2015 , long-term debt consisted of the following (in thousands): December 31, 2016 December 31, 2015 Term Loans Term Loan A - 6.9% principal $ 10,000 $ 10,000 Term Loan B - 6.9% principal 10,000 — Final fee obligation 400 400 Unamortized issuance costs (585 ) (883 ) Total debt, net 19,815 9,517 Current portion of long-term debt (7,935 ) 373 Long-term debt $ 11,880 $ 9,890 Term Loans In January 2015, the Company entered into a Loan and Security Agreement, or the LSA, with Solar Capital Partners (as successor-in-interest to General Electric Capital Corporation), and certain other financial institutions party thereto, as lenders, pursuant to which the Company obtained (a) up to $35,000,000 in a series of term loans and (b) a revolving loan in the maximum amount of $5,000,000 . Under the terms of the LSA, the Company may, subject to certain conditions, borrow: • $10,000,000 on or before March 31, 2015, or Term Loan A; • an additional $10,000,000 , or Term Loan B, subject to the Company’s satisfaction of regulatory requirements necessary to CE Mark its ePlex system in Europe by a specified date; and • an additional $15,000,000 , or Term Loan C, and together with Term Loan A and Term Loan B, the Term Loans, subject to the Company’s satisfaction of FDA 510(k) market clearance for the sale of the Company’s ePlex system in the United States by a specified date. The Company borrowed $10,000,000 on each of March 27, 2015 and June 10, 2016 pursuant to Term Loan A and Term Loan B, respectively. The Term Loans will accrue interest at a rate equal to ( a) the greater of 1.00% or the 3-year treasury rate in effect at the time of funding, plus (b) an applicable margin between 4.95% and 5.90% per annum. The Company is only required to make interest payments on amounts borrowed pursuant to the Term Loans from the applicable funding date until March 1, 2017 , or the Interest Only Period. Following the Interest Only Period, monthly installments of principal and interest under the Term Loans will be due until the original principal amount and applicable interest is fully repaid by January 12, 2019 , or the Maturity Date. Interest expense recognized on the Term Loans for the years ended December 31, 2016 and 2015 totaled $1,184,000 and $611,000 , respectively, for the stated interest and final fee accrual. In July 2016, the Company entered into an amendment to the LSA pursuant to which the lenders reallocated certain funding commitments under the LSA between the lenders, and the parties extended the date by which the future funding requirements in respect of Term Loan C must be satisfied. Under the LSA, the Company is required to comply with certain affirmative and negative covenants, including, without limitation, delivering reports and notices relating to the Company’s financial condition and certain regulatory events and intellectual property matters, as well as limiting the creation of liens, the incurrence of indebtedness, and the making of certain investments, payments and acquisitions, other than as specifically permitted by the LSA. As of December 31, 2016 , the Company was in compliance with all covenants under the LSA. Revolving Loan Pursuant to the LSA, the Company may borrow up to $5,000,000 under the revolving loan facility. Borrowings under the revolving loan will accrue interest at a rate equal to (a) the greater of 1.25% per annum or a base rate as determined by a three-month LIBOR-based formula, plus (b) an applicable margin between 2.95% and 3.95% based on certain criteria as set forth in the LSA. All principal and interest outstanding under the revolving loan is due and payable on the Maturity Date. Following the funding of Term Loan A, the Company is required to pay a commitment fee equal to 0.75% per annum of the amounts made available but unborrowed under the revolving loan. As of December 31, 2016 , the Company had not borrowed any amounts pursuant the revolving loan facility. Interest expense recognized for the unused revolving loan facility fee for the years ended December 31, 2016 and 2015 was $42,000 and $34,000 , respectively. Debt Issuance Costs As of December 31, 2016 and December 31, 2015, the Company had $585,000 and $883,000 , respectively, of unamortized debt issuance discount, which is offset against borrowings in long-term and short-term debt. For the twelve months ended December 31, 2016 and 2015 , amortization of debt issuance costs was $298,000 and $208,000 , respectively, which was included in interest expense in the Company's unaudited condensed consolidated statements of comprehensive loss for the periods presented. Letter of Credit In September 2012, the Company provided a $758,000 letter of credit issued by Banc of California to the landlord of its executive office facility in Carlsbad, California. This letter of credit was secured with $758,000 of restricted cash as of December 31, 2016 . |
Employee benefit plan
Employee benefit plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee benefit plan | Employee benefit plan The Company has a 401(k) tax-deferred savings plan, whereby eligible employees may contribute a percentage of their eligible compensation. The Company may make matching contributions under the 401(k) plan; however, the Company has not made any such contributions to date. |
Other current liabilities
Other current liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Current Assets and Liabilities and Other Noncurrent Liabilities [Abstract] | |
Other current liabilities | Other current liabilities Other current liabilities as of December 31, 2016 and 2015 consisted of the following (in thousands): December 31, 2016 2015 Accrued royalties $ 949 $ 1,608 Accrued warranties 219 118 Accrued tenant improvements 789 — Deferred revenue 658 267 Other accrued liabilities 1,518 732 Total $ 4,133 $ 2,725 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair value of financial instruments The following table presents the financial instruments measured at fair value on a recurring basis on the financial statements of the Company and the valuation approach applied to each class of financial instruments at December 31, 2016 and 2015 , respectively, (in thousands): December 31, 2016 Quotes Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Money market funds (cash equivalents) $ 556 $ — $ — $ 556 Corporate notes and bonds — 18,821 — 18,821 U.S. government and agency securities — 3,503 — 3,503 Commercial paper — 3,283 — 3,283 $ 556 $ 25,607 $ — $ 26,163 December 31, 2015 Quotes Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Money market funds (cash equivalents) $ 22,128 $ — $ — $ 22,128 Corporate notes and bonds — 8,483 — 8,483 U.S. government and agency securities — 799 — 799 Commercial paper — 798 — 798 $ 22,128 $ 10,080 $ — $ 32,208 At December 31, 2016 , the carrying value of the financial instruments measured and classified within Level 1 was based on quoted prices and marked to market. Level 2 inputs for the valuations are limited to quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability. |
Investments (Notes)
Investments (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The following table summarizes the Company’s available-for-sale investments at December 31, 2016 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 18,846 $ — $ (25 ) $ 18,821 U.S. government and agency securities 3,506 — (3 ) 3,503 Commercial Paper 3,283 — — 3,283 Total $ 25,635 $ — $ (28 ) $ 25,607 During 2013, the Company sold its preferred stock investment in ALL in connection with ALL's acquisition by Illumina, Inc., resulting in a $1,392,000 realized gain. Additionally, in 2016 and 2015 the Company received an additional $9,000 and $223,000 , respectively, related to the release of escrowed proceeds. The following table summarizes the maturities of the Company’s available-for-sale securities at December 31, 2016 (in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 25,635 $ 25,607 Due after one year through two years — — Total $ 25,635 $ 25,607 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial data (unaudited) | uarterly financial data (unaudited) Year Ended December 31, 2016 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Total revenue $ 11,064 $ 12,512 $ 10,813 $ 14,885 Gross profit $ 6,689 $ 7,792 $ 6,451 $ 8,642 Loss from operations $ (12,708 ) $ (12,588 ) $ (11,627 ) $ (12,058 ) Net loss $ (12,958 ) $ (12,907 ) $ (12,058 ) $ (12,678 ) Per share data: Net loss per common share—basic and diluted $ (0.30 ) $ (0.30 ) $ (0.27 ) $ (0.27 ) Year Ended December 31, 2015 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Total revenue $ 10,107 $ 7,646 $ 8,472 $ 13,186 Gross profit $ 6,116 $ 4,360 $ 5,120 $ 8,498 Loss from operations $ (10,027 ) $ (11,930 ) $ (11,117 ) $ (8,461 ) Net loss $ (9,869 ) $ (12,152 ) $ (11,394 ) $ (8,782 ) Per share data: Net loss per common share—basic and diluted $ (0.24 ) $ (0.29 ) $ (0.27 ) $ (0.21 ) |
Subsequent Evens (Notes)
Subsequent Evens (Notes) | 2 Months Ended |
Feb. 28, 2017 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | 16. Subsequent events The Company has completed an evaluation of all subsequent events through the issuance date of these consolidated financial statements and the following represents subsequent events for disclosure. On February 27, 2017 the Company entered into a second amendment to the LSA with Solar Capital Partners and certain other financial institutions party thereto, as lenders, pursuant to which the parties extended the date by which the future funding requirements in respect of Term Loan C must be satisfied. In addition, the parties agreed to extend the Interest-Only Period in respect of amounts already borrowed under Term Loan A and Term Loan B, and the amount, if any, borrowed pursuant to Term Loan C, until June 1, 2017 . The parties also agreed that the Company has the option to further extend the Interest-Only Period until August 1, 2017 , and subsequently to March 1, 2018 , subject in each case to the satisfaction of certain conditions. |
Organization and Basis of Pre23
Organization and Basis of Presentation Reclassification (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Accounting Changes and Error Corrections [Text Block] | he consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||
Organization and basis of presentation | GenMark Diagnostics, Inc., the Company or GenMark, was formed by Osmetech plc, or Osmetech, as a Delaware corporation in February 2010, and had no operations prior to its initial public offering, or the IPO, which was completed in June 2010. Immediately prior to the closing of the IPO, GenMark acquired all of the outstanding ordinary shares of Osmetech in a reorganization, accounted for in a manner similar to a pooling-of-interests, under the applicable laws of the United Kingdom. As a result of the reorganization, all of the issued ordinary shares in Osmetech were cancelled in consideration of (i) the issuance of common stock of GenMark to the former shareholders of Osmetech and (ii) the issuance of new shares in Osmetech to GenMark. Following the reorganization, Osmetech became a subsidiary controlled by GenMark, and the former shareholders of Osmetech received shares of GenMark. Any historical discussion of GenMark relates to Osmetech and its consolidated subsidiaries prior to the reorganization. In September 2012, GenMark placed Osmetech into liquidation to simplify its corporate structure. The liquidation of Osmetech was completed in the fourth quarter of 2013. Segment Reporting The Company currently operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is the chief executive officer, in deciding how to allocate resources and assessing performance. The Company’s business operates in one operating segment because the Company’s chief operating decision maker evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or U.S. GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the notes thereto. The Company’s significant estimates included in the preparation of the financial statements are related to accounts receivable, inventories, property and equipment, intangible assets, employee related compensation accruals, warranty liabilities, tax valuation accounts and stock-based compensation. Actual results could differ from those estimates. Basis of Presentation The accompanying financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net losses from operations since its inception and has an accumulated deficit of $355,270,000 at December 31, 2016 . Management expects operating losses to continue through the foreseeable future. The Company's ability to transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support its cost structure through expanding its product offerings and consequently increasing its product revenues. Cash, cash equivalents, restricted cash, and investments at December 31, 2016 totaled $41,566,000 . The Company has prepared cash flow forecasts which indicate, based on the Company’s current cash resources available, that the Company will have sufficient resources to fund its business for at least the next 12 months from the date of this filing. The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and applicable regulations of the Securities and Exchange Commission, or the SEC. | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |
Cash and Cash Equivalents and Short-Term Investments | Cash and Cash Equivalents and Marketable Securities Cash and cash equivalents consist of cash on deposit with banks, money market instruments and certificates of deposit with original maturities of three months or less at the date of purchase. Marketable securities consist of certificates of deposits that mature in greater than three months . Marketable securities are accounted for as "available-for-sale" with the carrying amounts reported in the balance sheets stated at cost, which approximates their fair market value, with unrealized gains and losses, if any, reported as a separate component of stockholders' equity and included in comprehensive loss. | |
Restricted Cash | Restricted Cash Restricted cash represents amounts designated for uses other than current operations and includes $758,000 at December 31, 2016 held as security for the Company’s letter of credit with Banc of California. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of financial instruments such as accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued liabilities approximate the related fair values due to the short-term maturities of these instruments. | |
Receivables | Receivables Accounts receivable consist of amounts due to the Company for sales to customers and are recorded net of an allowance for doubtful accounts. The allowance for doubtful accounts is determined based on an assessment of the collectability of specific customer accounts, the aging of accounts receivable, and a reserve for unknown items based upon the Company’s historical experience. | |
Inventories | Inventories Inventories are stated at the lower of cost (first-in, first-out) or net realizable value and include direct labor, materials, and manufacturing overhead. The Company periodically reviews inventory for evidence of slow-moving or obsolete parts, and writes inventory down to net realizable value, as needed. This write-down is based on management’s review of inventories on hand, compared to estimated future usage and sales, shelf-life assumptions, and assumptions about the likelihood of obsolescence. If actual market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Inventory impairment charges establish a new cost basis for inventory and charges are not reversed subsequently to income, even if circumstances later suggest that increased carrying amounts are recoverable. | |
Property and Equipment-net | Property and Equipment-net Property, equipment and leasehold improvements are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which are: Machinery and laboratory equipment 3 – 5 years Instruments 4 – 5 years Office equipment 3 – 7 years Leasehold improvements over the shorter of the remaining life of the lease or the useful economic life of the asset Property and equipment includes diagnostic instruments used for sales demonstrations or placed with customers under several types of arrangements, including performance evaluation programs, or PEPs, and reagent rental agreements. PEPs are placed with customers for evaluation periods of up to three months and the Company retains title to the instruments under these arrangements. | |
Intangible Assets | Intangible Assets Intangible assets are comprised of licenses or sublicenses to technology covered by patents owned by third parties, and are amortized on a straight-line basis over the expected useful lives of these assets, which is generally 10 years. Amortization of licenses typically begins upon the Company obtaining access to the licensed technology and is recorded in cost of revenues for licenses supporting commercialized products. The amortization of licenses to technology supporting products in development is recorded in research and development expenses. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company assesses the recoverability of long-lived assets, including intangible assets, by periodically evaluating the carrying value whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If impairment is indicated, the Company writes down the carrying value of the asset to its estimated fair value. This fair value is primarily determined based on estimated discounted cash flows. The Company did not recognize any impairment charges during the years ended December 31, 2016 and 2015. | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or U.S. GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the notes thereto. The Company’s significant estimates included in the preparation of the financial statements are related to accounts receivable, inventories, property and equipment, intangible assets, employee related compensation accruals, warranty liabilities, tax valuation accounts and stock-based compensation. Actual results could differ from those estimates. | |
Segment Reporting | Segment Reporting The Company currently operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is the chief executive officer, in deciding how to allocate resources and assessing performance. The Company’s business operates in one operating segment because the Company’s chief operating decision maker evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from product sales and contract arrangements, net of discounts and sales related taxes. The Company recognizes revenue from product sales when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed or determinable and collectability is reasonably assured. The Company offers customers the choice to either purchase a system outright or to receive a system free of charge in exchange for an annual minimum purchase commitment for diagnostic test cartridges. When a system is sold, the Company generally recognizes revenue upon shipment of the unit, however, if the end user already has the instrument being purchased installed at its location, revenue is recognized when the revenue recognition terms other than delivery have been satisfied. When a system is placed free of charge under a “reagent rental” agreement, the Company retains title to the equipment and it remains capitalized on the balance sheet under property and equipment. Under reagent rental agreements, the Company’s customers pay an additional system rental fee for each test cartridge purchased which varies based on the monthly volume of test cartridges purchased. The system rental fee and diagnostic test cartridges are recognized as contingent rental payments and are included in product revenue in the Company’s consolidated financial statements. The Company has not had significant product returns and is not contractually obligated to accept returns unless such returns are related to warranty provisions. The Company generally does not accept reagent product returns, mainly due to FDA regulations, and does not offer volume rebates or provide price protection. The Company enters into PEP agreements pursuant to which an instrument is installed on the premises of a pre-qualified customer for the purpose of allowing the customer to evaluate the instrument’s functionality over an extended trial period. The customer is generally required to purchase a minimum quantity of reagents and, at the end of the evaluation period, must purchase or return the instrument or sign a reagent rental agreement. Revenues related to royalties received from licenses are recognized evenly over the contractual period to which the license relates. In those cases where the Company bills shipping and handling costs to customers, the amounts billed are included in product revenue | |
Product Warranties | Product Warranties The Company generally offers a one -year warranty for its instruments sold to customers and up to a sixty day warranty for reagents and provides for the estimated cost of the product warranty at the time the system sale is recognized. Factors that affect the Company’s warranty reserves include the number of units sold, historical and anticipated rates of warranty repairs and the cost per repair. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. Product warranty reserve activity for the years ended December 31, 2016 , 2015 and 2014 is as follows (in thousands): 2016 2015 2014 Beginning balance $ 118 $ 195 $ 226 Warranty expenses incurred (421 ) (430 ) (608 ) Provisions 522 353 577 Ending balance $ 219 $ 118 $ 195 | |
Research and Development Costs | Research and Development Costs The Company expenses all research and development costs in the periods in which they are incurred unless there is alternative future use that supports the capitalization of an asset. | |
Income Taxes | Income Taxes Current income tax expense is the amount of income taxes expected to be payable for the current year. A deferred income tax liability or asset is established for the expected future tax consequences resulting from the differences in financial reporting and tax bases of assets and liabilities. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized. A full valuation allowance has been recorded against the Company’s net deferred tax assets due to the uncertainty surrounding the Company’s ability to utilize these assets in the future. The Company provides for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement standards prescribed by the authoritative guidance on income taxes. Amounts for uncertain tax positions are adjusted in periods when new information becomes available or when positions are effectively settled. The Company recognizes accrued interest related to uncertain tax positions as a component of income tax expense. A tax position that is more likely than not to be realized is measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with the taxing authority that has full knowledge of all relevant information. Measurement of a tax position that meets the more likely than not threshold considers the amounts and probabilities of the outcomes that could be realized upon settlement using the facts, circumstances and information available at the reporting date. | |
Share-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense related to stock options, shares purchased under the Company's ESPP, restricted stock awards, restricted stock units and market-based stock units granted to employees and directors in exchange for services. The compensation expense is based on the fair value of the applicable award utilizing various assumptions regarding the underlying attributes of the award. The stock-based compensation expense is recorded in cost of revenues, sales and marketing, research and development, and/or general and administrative expenses based on the employee's respective function. The estimated fair value of stock granted, net of forfeitures expected to occur during the vesting period, is amortized as compensation expense that approximates straight-line expense to reflect vesting as it occurs. The stock option expense is derived from the Black-Scholes Option Pricing Model that uses several judgment-based variables to calculate the expense. The market-based stock expense is derived from the Monte Carlo Simulation Valuation. The inputs utilized in the valuation of the stock-based awards include the following factors: • Expected Term. Expected term represents the period that the stock-based awards are expected to be outstanding and is determined by using the simplified method. • Expected Volatility . Expected volatility represents the expected volatility in the Company’s stock price over the expected term of the option or market-based award and is determined by review of the Company’s and similar companies’ historical experience. • Expected Dividend . The valuation methods required a single expected dividend yield as an input. The Company assumed no dividends as it has never paid dividends and has no current plans to do so. • Risk-Free Interest Rate. The risk-free interest rate is based on published U.S. Treasury rates in effect at the time of grant for periods corresponding with the expected term of the option or market-based award. The compensation expense related to the grant of restricted stock awards or units is calculated as the fair market value of the stock on the grant date as further adjusted to reflect expected forfeitures. | |
Foreign Currency Translation | Foreign Currency Translation During 2015, the Company established foreign subsidiaries with currencies other than the U.S. Dollar. The assets and liabilities of the Company's entities outside the U.S. are translated into U.S. Dollars based on the foreign currency exchange rates at the end of each period, while revenues and expenses are translated at weighted average exchange rates during the applicable period. Gains or losses resulting from these foreign currency translations of the Company's assets and liabilities are recorded in accumulated comprehensive loss in the consolidated balance sheets. Foreign currency translation impacts recorded in accumulated other comprehensive loss for the year ended December 31, 2016 and 2015 was $77,000 and $36,000 , respectively. Transactions in foreign currencies were recognized using the rate of exchange prevailing at the date of the transaction. Foreign exchange losses, which are included in the accompanying consolidated statements of operations, totaled $169,000 , $91,000 and $9,000 for the years ended December 31, 2016 , 2015 and 2014 , respectively, and relate primarily to transactions denominated in Euros. | |
Net Loss per Common Share | Net Loss per Common Share Basic net loss per share is calculated by dividing loss available to stockholders of our common stock (the numerator) by the weighted average number of shares of the Company's common stock outstanding during the period (the denominator). Shares issued during the period and shares reacquired during the period are weighted for the portion of the period that they were outstanding. Diluted loss per share is calculated in a similar way to basic loss per share except that the denominator is increased to include the number of additional shares that would have been outstanding if the dilutive potential shares had been issued unless the effect would be anti-dilutive. The calculations of diluted net loss per share for the years ended December 31, 2016 , 2015 and 2014 did not include the effects of the following stock options or other unvested equity awards which were outstanding as of the end of each year because the inclusion of these securities would have been anti-dilutive (in thousands). Year Ended December 31, 2016 2015 2014 Options outstanding to purchase common stock 2,570 3,004 2,479 Other unvested equity awards 2,000 1,267 948 Total 4,570 4,271 3,427 | |
Concentration of Risk | Concentration of Risk Financial instruments which potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investment securities, and accounts receivable. We limit our exposure to credit loss by placing our cash with high credit quality financial institutions. We have established guidelines relative to diversification of our cash and investment securities and their maturities that are intended to secure safety and liquidity. The following table summarizes customers who accounted for 10% or more of net accounts receivable: December 31, 2016 2015 Laboratory Corporation of America, Inc. 33 % 35 % | 0.35 |
Comprehensive Loss | Comprehensive Loss The Company has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The Company’s comprehensive loss comprises net losses, unrealized gains and losses on available for sale securities, and foreign currency translation. | |
Recent Accounting Pronouncements | From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board, or the FASB, or other standard setting bodies that the Company adopts as of the specified effective date. The Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In March 2016, the FASB issued Accounting Standards Update, or ASU, 2016-09, Improvements to Employee Share-Based Payment Accounting. This guidance simplifies how several aspects of share-based payments are accounted for and presented in the financial statements. This guidance is effective for the Company beginning January 1, 2017 and the Company will adopt this ASU in the first quarter of 2017. The Company has excess tax benefits for which a benefit could not be previously recognized of approximately $1,979,000 . Upon adoption, the balance of the unrecognized excess tax benefits will be reversed with the impact recorded to retained earnings, including any change to the valuation allowance as a result of adoption. Due to the full valuation allowance on the Company's U.S. deferred tax assets, the Company does not expect any impact to the financial statements as a result of this adoption. In February 2016, the FASB issued ASU 2016-02, Leases. This ASU outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new guidance must be adopted using the modified retrospective approach and will be effective for the Company starting in the first quarter of 2019, with early adoption permitted. The Company is evaluating the effects adoption will have on its consolidated financial statements. The Company expects this adoption will result in a material increase in the assets and liabilities on our consolidated balance sheets and will likely have an immaterial impact on our consolidated statements of comprehensive loss. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, an updated standard on revenue recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported by companies while also improving comparability in the financial statements of companies reporting using International Financial Reporting Standards or U.S. GAAP. The main purpose of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures of revenue, provide guidance for transactions that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December l5, 2017, with early adoption permitted but not earlier than the original effective date. Accordingly, the updated standard is effective for the Company in the first quarter of fiscal 2018. The Company is currently evaluating the overall impact this standard will have on our consolidated financial statements, as well as the expected timing and method of adoption. Based on our preliminary assessment, the Company does not anticipate a material impact on its financial statements. The Company is continuing this assessment, which may identify other impacts. |
Income Taxes Schedule of Compon
Income Taxes Schedule of Components of Net Income (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss)Foreign and Domestic [Table Text Block] | Years Ended December 31, 2016 2015 2014 Domestic $ (50,651 ) $ (42,221 ) $ (37,766 ) Foreign 150 64 (1,070 ) Worldwide Income (Loss) $ (50,501 ) $ (42,157 ) $ (38,836 ) |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Accounts receivable and the allowance for doubtful accounts | he allowance for doubtful accounts as of December 31, 2016 , is as follows (in thousands): Allowance for doubtful accounts Balance December 31, 2014 $ 2,702 Provision for doubtful accounts 25 Balance December 31, 2015 $ 2,727 Provision for doubtful accounts 13 Balance December 31, 2016 $ 2,740 |
Estimated useful lives of property and equipment | Property, equipment and leasehold improvements are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which are: Machinery and laboratory equipment 3 – 5 years Instruments 4 – 5 years Office equipment 3 – 7 years Leasehold improvements over the shorter of the remaining life of the lease or the useful economic life of the asset |
Product warranty reserve activity | Product warranty reserve activity for the years ended December 31, 2016 , 2015 and 2014 is as follows (in thousands): 2016 2015 2014 Beginning balance $ 118 $ 195 $ 226 Warranty expenses incurred (421 ) (430 ) (608 ) Provisions 522 353 577 Ending balance $ 219 $ 118 $ 195 |
Computations of diluted net loss per share | The calculations of diluted net loss per share for the years ended December 31, 2016 , 2015 and 2014 did not include the effects of the following stock options or other unvested equity awards which were outstanding as of the end of each year because the inclusion of these securities would have been anti-dilutive (in thousands). Year Ended December 31, 2016 2015 2014 Options outstanding to purchase common stock 2,570 3,004 2,479 Other unvested equity awards 2,000 1,267 948 Total 4,570 4,271 3,427 |
Company sales to individual customers representing greater than 10% of the total | December 31, 2016 2015 Laboratory Corporation of America, Inc. 33 % 35 % |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | Intangible assets as of December 31, 2016 and 2015 consisted of the following (in thousands): December 31, 2016 December 31, 2015 Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Licensed intellectual property $ 4,250 $ (1,580 ) $ 2,670 $ 3,550 $ (1,174 ) $ 2,376 |
Summary of estimated future amortization expense | stimated future amortization expense for these licenses is as follows (in thousands): Years Ending December 31, Future Amortization Expense 2017 $ 497 2018 497 2019 497 2020 497 2021 497 Thereafter 185 Total $ 2,670 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation Related Costs [Abstract] | |
Schedule of stock option activity | The following table summarizes stock option activity during the year ended December 31, 2016 : Number of shares Weighted average exercise price Outstanding at December 31, 2015 3,004,011 $ 9.74 Granted 5,000 $ 4.70 Exercised (98,941 ) $ 7.20 Forfeitures (340,520 ) $ 11.96 Outstanding at December 31, 2016 2,569,550 $ 9.53 Vested and expected to vest at December 31, 2016 2,490,256 $ 9.45 Exercisable at December 31, 2016 1,937,739 $ 8.75 |
Fair value of stock options granted | Years Ended December 31, 2016 2015 2014 Expected volatility (%) 51 % 49 % 69 % Expected life (years) 5.90 6.06 6.08 Risk free rate (%) 1.35 % 1.67 % 1.82 % Expected dividend yield (%) — % — % — % |
Summary of non-vested restricted share award ("RSA") activity | The Company’s restricted stock activity for the year ended December 31, 2016 was as follows: Restricted Stock Awards Restricted Stock Units Number of shares Weighted Average Grant Date Fair Value Number of shares Weighted Average Grant Date Fair Value Unvested at December 31, 2015 32,837 $ 5.00 934,977 $ 12.66 Granted — $ — 1,580,273 $ 5.80 Vested (32,369 ) $ 4.91 (444,365 ) $ 11.79 Forfeitures (312 ) $ 11.19 (304,762 ) $ 7.65 Unvested at December 31, 2016 156 $ 11.19 1,766,123 $ 7.18 |
Summary of share-based compensation expense | |
Summary of ESPP activity | A summary of ESPP activity for the years ended December 31, 2016 and 2015 is as follows (in thousands, except share, and per share data): Year Ended December 31, 2016 2015 Shares issued 138,058 122,245 Weighted average fair value of shares issued $ 6.67 $ 7.22 Employee purchases $ 921 $ 884 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense (benefit) for continuing operations | The components of income tax expense (benefit) were as follows for the years ended December 31, 2016 , 2015 , and 2014 , respectively (in thousands): Years Ended December 31, 2016 2015 2014 Current expense: U.S. federal $ (10 ) $ — $ — State 31 25 (573 ) Foreign (non-U.S. entities) 70 20 — Total current expense (benefit) $ 91 $ 45 $ (573 ) Deferred expense (benefit): U.S. Federal $ 4 $ — $ — State 1 — — Total deferred expense (benefit) $ 5 $ — $ — |
Net deferred income taxes | The components of net deferred income taxes consisted of the following at December 31, 2016 and 2015 , respectively (in thousands): As of December 31, 2016 2015 Deferred income tax assets: NOL and credit carryforwards $ 74,375 $ 59,907 Compensation accruals 4,660 3,952 Accruals and reserves 3,437 2,201 State tax provision 8 8 Inventory adjustments 996 559 Intangible assets 645 361 Other 144 5 Subtotal: deferred tax assets 84,265 66,993 Valuation allowance (82,481 ) (66,211 ) Total deferred tax assets 1,784 782 Deferred income tax liabilities: Depreciation (1,784 ) (782 ) Subtotal: deferred tax liabilities (1,784 ) (782 ) Net deferred tax assets $ — $ — |
Reconciliation of income tax (expense) | A reconciliation of income tax expense to the amount computed by applying the statutory federal income tax rate to the loss from operations is summarized for the years ended December 31, 2016 , 2015 , and 2014 , respectively, as follows: Years Ended December 31, 2016 2015 2014 U.S. Federal statutory income tax rate 34.0 % 34.0 % 34.0 % Permanent differences (0.3 )% (0.1 )% (0.3 )% State taxes 2.3 % 2.4 % 2.6 % Executive compensation limitation (0.1 )% (0.8 )% (0.7 )% Stock-based compensation (3.5 )% (1.4 )% (1.5 )% Other (0.4 )% 2.1 % 0.3 % Valuation allowance (32.2 )% (36.9 )% (32.9 )% Total tax provision (0.2 )% (0.7 )% 1.5 % |
Unrecognized Tax Benefits | The following table summarizes the changes to unrecognized tax benefits for the years ended December 31, 2016 , 2015 and 2014 , respectively (in thousands): Years Ended December 31, 2016 2015 2014 Beginning balance of unrecognized tax benefits $ — $ — $ 382 Lapses in the statute of limitations — — (382 ) Ending balance of unrecognized tax benefits $ — $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Annual future minimum obligations for operating leases | Annual future minimum obligations for leases as of December 31, 2016 are as follows (in thousands): Years Ending December 31, Amount 2017 $ 1,644 2018 1,792 2019 1,913 2020 1,972 2021 1,372 Thereafter 1,365 Total minimum lease payments $ 10,058 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Summary of inventory on hand | Inventory on hand as of December 31, 2016 and 2015 comprised the following (in thousands): December 31, 2016 2015 Raw materials $ 2,171 $ 1,147 Work-in-process 1,488 693 Finished goods 2,974 1,214 $ 6,633 $ 3,054 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and equipment, net | Property and equipment comprised the following as of December 31, 2016 and 2015 (in thousands): December 31, 2016 2015 Property and equipment—at cost: Plant and machinery $ 10,145 $ 7,728 Instruments 9,869 8,195 Office equipment 1,714 1,526 Leasehold improvements 10,100 4,311 Total property and equipment—at cost 31,828 21,760 Less accumulated depreciation (13,560 ) (10,364 ) Property and equipment, net $ 18,268 $ 11,396 |
Loan payable Outstanding Debt (
Loan payable Outstanding Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, 2016 December 31, 2015 Term Loans Term Loan A - 6.9% principal $ 10,000 $ 10,000 Term Loan B - 6.9% principal 10,000 — Final fee obligation 400 400 Unamortized issuance costs (585 ) (883 ) Total debt, net 19,815 9,517 Current portion of long-term debt (7,935 ) 373 Long-term debt $ 11,880 $ 9,890 |
Other current liabilities (Tabl
Other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Current Assets and Liabilities and Other Noncurrent Liabilities [Abstract] | |
Other current liabilities | Other current liabilities as of December 31, 2016 and 2015 consisted of the following (in thousands): December 31, 2016 2015 Accrued royalties $ 949 $ 1,608 Accrued warranties 219 118 Accrued tenant improvements 789 — Deferred revenue 658 267 Other accrued liabilities 1,518 732 Total $ 4,133 $ 2,725 |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets measured at fair value on a recurring basis | The following table presents the financial instruments measured at fair value on a recurring basis on the financial statements of the Company and the valuation approach applied to each class of financial instruments at December 31, 2016 and 2015 , respectively, (in thousands): December 31, 2016 Quotes Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Money market funds (cash equivalents) $ 556 $ — $ — $ 556 Corporate notes and bonds — 18,821 — 18,821 U.S. government and agency securities — 3,503 — 3,503 Commercial paper — 3,283 — 3,283 $ 556 $ 25,607 $ — $ 26,163 December 31, 2015 Quotes Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Money market funds (cash equivalents) $ 22,128 $ — $ — $ 22,128 Corporate notes and bonds — 8,483 — 8,483 U.S. government and agency securities — 799 — 799 Commercial paper — 798 — 798 $ 22,128 $ 10,080 $ — $ 32,208 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of available-for-sale investments | The following table summarizes the Company’s available-for-sale investments at December 31, 2016 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 18,846 $ — $ (25 ) $ 18,821 U.S. government and agency securities 3,506 — (3 ) 3,503 Commercial Paper 3,283 — — 3,283 Total $ 25,635 $ — $ (28 ) $ 25,607 |
Summary of the maturities of available-for-sale securities | The following table summarizes the maturities of the Company’s available-for-sale securities at December 31, 2016 (in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 25,635 $ 25,607 Due after one year through two years — — Total $ 25,635 $ 25,607 |
Selected Quarterly Financial 37
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | Year Ended December 31, 2016 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Total revenue $ 11,064 $ 12,512 $ 10,813 $ 14,885 Gross profit $ 6,689 $ 7,792 $ 6,451 $ 8,642 Loss from operations $ (12,708 ) $ (12,588 ) $ (11,627 ) $ (12,058 ) Net loss $ (12,958 ) $ (12,907 ) $ (12,058 ) $ (12,678 ) Per share data: Net loss per common share—basic and diluted $ (0.30 ) $ (0.30 ) $ (0.27 ) $ (0.27 ) Year Ended December 31, 2015 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Total revenue $ 10,107 $ 7,646 $ 8,472 $ 13,186 Gross profit $ 6,116 $ 4,360 $ 5,120 $ 8,498 Loss from operations $ (10,027 ) $ (11,930 ) $ (11,117 ) $ (8,461 ) Net loss $ (9,869 ) $ (12,152 ) $ (11,394 ) $ (8,782 ) Per share data: Net loss per common share—basic and diluted $ (0.24 ) $ (0.29 ) $ (0.27 ) $ (0.21 ) |
Organization and Basis of Pre38
Organization and Basis of Presentation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash and cash equivalents | $ 41,566 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Segment Reporting, Disclosure of Major Customers | 0.27 | 0.17 | no single customer |
Accumulated deficit | $ (355,270) | $ (304,669) |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $ 2,727 | $ 2,702 | |
Provision for doubtful accounts | 13 | 25 | $ 0 |
Ending balance | 2,727 | $ 2,702 | |
Natural Molecular Testing Corporation [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | 2,702 | ||
Ending balance | $ 2,740 | $ 2,702 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details 1) | 12 Months Ended |
Dec. 31, 2016 | |
Maximum [Member] | |
Estimated useful lives of Property, equipment and leasehold improvements | |
Expected useful lives of these assets | 10 years |
Machinery and laboratory equipment [Member] | Maximum [Member] | |
Estimated useful lives of Property, equipment and leasehold improvements | |
Expected useful lives of these assets | 5 years |
Machinery and laboratory equipment [Member] | Minimum [Member] | |
Estimated useful lives of Property, equipment and leasehold improvements | |
Expected useful lives of these assets | 3 years |
Instruments [Member] | Maximum [Member] | |
Estimated useful lives of Property, equipment and leasehold improvements | |
Expected useful lives of these assets | 5 years |
Instruments [Member] | Minimum [Member] | |
Estimated useful lives of Property, equipment and leasehold improvements | |
Expected useful lives of these assets | 4 years |
Office equipment [Member] | Maximum [Member] | |
Estimated useful lives of Property, equipment and leasehold improvements | |
Expected useful lives of these assets | 7 years |
Office equipment [Member] | Minimum [Member] | |
Estimated useful lives of Property, equipment and leasehold improvements | |
Expected useful lives of these assets | 3 years |
Leasehold improvements [Member] | |
Estimated useful lives of Property, equipment and leasehold improvements | |
Leasehold improvements | over the shorter of the remaining life of the lease or the useful economic life of the asset |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Product warranty reserve activity | |||
Beginning balance | $ 118 | $ 195 | $ 226 |
Warranty expenses incurred | (421) | (430) | (608) |
Provisions | 522 | 353 | 577 |
Ending balance | $ 219 | $ 118 | $ 195 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Details 3) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Computations of diluted net loss per share | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 4,570 | 4,271 | 3,427 |
Share options [Member] | |||
Computations of diluted net loss per share | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 2,570 | 3,004 | 2,479 |
Restricted stock-unvested [Member] | |||
Computations of diluted net loss per share | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 2,000 | 1,267 | 948 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Details 4) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||
Segment Reporting, Disclosure of Major Customers | 0.27 | 0.17 | no single customer |
Concentration Risk, Customer | 0.33 | ||
Company sales to individual customers representing greater than 10% of the total | |||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Risk Financial instruments which potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investment securities, and accounts receivable. We limit our exposure to credit loss by placing our cash with high credit quality financial institutions. We have established guidelines relative to diversification of our cash and investment securities and their maturities that are intended to secure safety and liquidity. The following table summarizes customers who accounted for 10% or more of net accounts receivable: December 31, 2016 2015 Laboratory Corporation of America, Inc. 33 % 35 % | 0.35 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Gain (Loss) on Sale of Equity Investments | $ 9,000 | $ 223,000 | $ 0 |
Segment Reporting, Disclosure of Major Customers | 0.27 | 0.17 | no single customer |
Temporary Equity, Foreign Currency Translation Adjustments | $ 77,000 | $ 36,000 | |
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Impairment charge included in depreciation expense | $ 76,000 | 153,000 | $ 102,000 |
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | |||
Minimum maturity for cash and cash equivalents at the date of purchase | 3 months | ||
Maximum maturity for cash and cash equivalents at the date of purchase | 3 months | ||
Periods of performance evaluation period programs (PEPs) | 3 months | ||
Restricted cash | $ 758,000 | 758,000 | |
Impairment charges | 0 | 0 | 0 |
Foreign exchange gain (loss) | $ 169,000 | $ 91,000 | $ 9,000 |
Concentration Risk, Customer | 0.33 | ||
Systems [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Products warranty period | 1 year | ||
Reagents [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Products warranty period | 60 days | ||
Maximum [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Expected useful lives of these assets | 10 years | ||
Minimum [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Income tax benefit | 50.00% | ||
Instruments [Member] | Maximum [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Expected useful lives of these assets | 5 years | ||
Instruments [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Expected useful lives of these assets | 4 years | ||
Office equipment [Member] | Maximum [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Expected useful lives of these assets | 7 years | ||
Office equipment [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Expected useful lives of these assets | 3 years |
Intangible Assets, net (Details
Intangible Assets, net (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of intangible assets | ||
Net carrying amount | $ 2,670 | |
Licensed intellectual property [Member] | ||
Summary of intangible assets | ||
Gross carrying amount | 4,250 | $ 3,550 |
Accumulated amortization | (1,580) | (1,174) |
Net carrying amount | $ 2,670 | $ 2,376 |
Intangible Assets, net (Detai46
Intangible Assets, net (Details 1) $ in Thousands | Dec. 31, 2016USD ($) |
Summary of estimated future amortization expense | |
2,015 | $ 497 |
2,016 | 497 |
2,017 | 497 |
2,018 | 497 |
2,019 | 497 |
Thereafter | 185 |
Net carrying amount | $ 2,670 |
Intangible Assets, net (Detai47
Intangible Assets, net (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Aug. 31, 2015 | Mar. 31, 2014 | Aug. 31, 2013 | Mar. 31, 2013 | Jul. 31, 2012 | Mar. 31, 2012 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Indefinite-lived Intangible Assets [Line Items] | ||||||||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years 4 months 24 days | |||||||||
Amortization expense for intangible assets | $ 406,000 | $ 294,000 | $ 227,000 | |||||||
Caliper Life Sciences Inc [Member] | ||||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||||
License agreement payments | $ 800,000 | $ 550,000 | $ 450,000 | $ 400,000 | ||||||
Advanced Liquid Logic, Inc. [Member] | Collaborative Arrangement [Member] | ||||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||||
License agreement payments | $ 200,000 | $ 250,000 | $ 700,000 | $ 350,000 | ||||||
Potential additional milestone payments | $ 1,750,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | |||||
Shares of stock issued in public follow-on stock offering | 3 | ||||
Proceeds from issuance of common stock | $ 30,920,000 | $ 884,000 | $ 812,000 | ||
TotalIssuanceCosts [Member] | |||||
Class of Stock [Line Items] | |||||
Fees and Commissions | $ 1,143,000 | ||||
CommissionFee [Member] | |||||
Class of Stock [Line Items] | |||||
Fees and Commissions | 900,000 | ||||
CommissionPercentage | 3.00% | ||||
OtherOfferingFees [Member] | |||||
Class of Stock [Line Items] | |||||
Fees and Commissions | $ 243,000 |
Stockholders' Equity Offering (
Stockholders' Equity Offering (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | |
Equity Offering [Line Items] | |||
MaximumATMOffering | $ 30,000,000 | ||
Issuance of common stock, net of offering expenses, Shares | 3 | ||
Sale of Stock, Price Per Share | $ 9.04 | $ 9.04 | |
Stock Issued During Period, Value, New Issues | $ 30,000,000 | ||
TotalIssuanceCosts [Member] | |||
Equity Offering [Line Items] | |||
Fees and Commissions | $ 1,143,000 | ||
CommissionFee [Member] | |||
Equity Offering [Line Items] | |||
Fees and Commissions | 900,000 | ||
CommissionPercentage | 3.00% | ||
OtherOfferingFees [Member] | |||
Equity Offering [Line Items] | |||
Fees and Commissions | $ 243,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Compensation Related Costs [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 2,490,256 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares | $ 9.45 |
Schedule of stock option activity | |
Number of Share options Outstanding, Beginning Balance | shares | 3,004,011 |
Number of Share options, Granted | shares | 5,000 |
Number of Share options, Exercised | shares | (98,941) |
Number of Share options, Cancelled | shares | (340,520) |
Number of Share options Outstanding, Ending Balance | shares | 2,569,550 |
Number of Share options, Exercisable | shares | 1,937,739 |
Weighted average exercise price Outstanding, Beginning Balance | $ / shares | $ 9.74 |
Weighted average exercise price, Granted | $ / shares | 4.70 |
Weighted average exercise price, Exercised | $ / shares | 7.20 |
Weighted average exercise price, Cancelled | $ / shares | 11.96 |
Weighted average exercise price Outstanding, Ending Balance | $ / shares | 9.53 |
Weighted average exercise price, Exercisable | $ / shares | $ 8.75 |
Stock-Based Compensation (Det51
Stock-Based Compensation (Details1) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair value of stock options granted | |||
Expected volatility (%) | 51.00% | 49.00% | 69.00% |
Expected life (years) | 5 years 10 months 25 days | 6 years 22 days | 6 years 29 days |
Risk free rate (%) | 1.35% | 1.67% | 1.82% |
Expected dividend yield (%) | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation (Det52
Stock-Based Compensation (Details 2) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Restricted Stock Awards [Member] | |
Summary of non-vested restricted share award ("RSA") activity | |
Non-vested, Number of shares, Beginning balance | shares | 32,837 |
Number of shares, Vested | shares | (32,369) |
Number of shares, Cancelled or expired | shares | (312) |
Non-vested, Number of shares, Ending balance | shares | 156 |
Non-vested, Weighted average Grant Date Fair Value, Beginning balance | $ 5 |
Weighted average Grant Date Fair Value, Granted | 0 |
Weighted average Grant Date Fair Value, Vested | 4.91 |
Weighted average Grant Date Fair Value, Cancelled or expired | 11.19 |
Non-vested, Weighted average Grant Date Fair Value, Ending balance | $ 11.19 |
Restricted Stock Units [Member] | |
Summary of non-vested restricted share award ("RSA") activity | |
Non-vested, Number of shares, Beginning balance | shares | 934,977 |
Number of shares, Vested | shares | (444,365) |
Number of shares, Cancelled or expired | shares | (304,762) |
Non-vested, Number of shares, Ending balance | shares | 1,766,123 |
Non-vested, Weighted average Grant Date Fair Value, Beginning balance | $ 12.66 |
Weighted average Grant Date Fair Value, Granted | 5.80 |
Weighted average Grant Date Fair Value, Vested | 11.79 |
Weighted average Grant Date Fair Value, Cancelled or expired | 7.65 |
Non-vested, Weighted average Grant Date Fair Value, Ending balance | $ 7.18 |
Stock-Based Compensation (Det53
Stock-Based Compensation (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | $ 9,236 | $ 9,995 | $ 5,796 |
Cost of Sales [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 258 | 209 | 73 |
Sales [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 2,329 | 3,050 | 1,848 |
Research and Development Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 2,482 | 2,498 | 1,194 |
General and Administrative Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | $ 4,167 | $ 4,238 | $ 2,681 |
Stock-Based Compensation (Det54
Stock-Based Compensation (Details 4) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued | 89,000 | ||
Weighted average fair value of shares issued | $ 2.27 | $ 6.02 | $ 7.45 |
Employee purchases | $ 921 | $ 812 | |
Market Share Unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 9.81 | 18.07 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 8.01 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 4.94 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 7.34 | $ 18.07 | |
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued | 138,058 | 122,245 | |
Weighted average fair value of shares issued | $ 6.7 | $ 7.2 | |
Employee purchases | $ 921 | $ 884 |
Stock-Based Compensation (Det55
Stock-Based Compensation (Details Textual) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | |
Share-based compensation (Textual) [Abstract] | |||||
Vesting period | 10 years | ||||
Future grant of awards under the Plan | 79,455 | ||||
Weighted average fair value of shares issued | $ 2.27 | $ 6.02 | $ 7.45 | ||
Weighted average contractual term of options exercisable | 5 years 7 months 30 days | ||||
Aggregate intrinsic value of options exercisable | $ 7,036,000 | ||||
Aggregate intrinsic value of options exercised | $ 896,000 | $ 938,000 | $ 584,000 | ||
Options exercised | 98,941 | ||||
Options outstanding | 2,569,550 | 3,004,011 | |||
Options outstanding, weighted average remaining contractual term | 6 years 2 months 12 days | ||||
Option intrinsic value | $ 7,532,000 | ||||
Unrecognized compensation cost | $ 3,323,000 | ||||
Weighted average-period, cost is expected to be recognized | 1 year 6 months 25 days | ||||
Maximum MSU Payout Percentage | 200.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 51.00% | 49.00% | 69.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.35% | 1.67% | 1.82% | ||
Capitalized share-based compensation | $ 0 | $ 0 | $ 0 | ||
Unrecognized tax benefit related to share-based compensation | 0 | 0 | 0 | ||
Restricted Stock Awards [Member] | |||||
Share-based compensation (Textual) [Abstract] | |||||
Unrecognized compensation cost | $ 1,000 | ||||
Weighted average-period, cost is expected to be recognized | 16 days | ||||
Total fair value of restricted stock vested | $ 190,000 | 580,000 | 3,466,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 32,369 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 312 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 4.91 | ||||
Restricted Stock Units [Member] | |||||
Share-based compensation (Textual) [Abstract] | |||||
Unrecognized compensation cost | $ 8,509,000 | ||||
Weighted average-period, cost is expected to be recognized | 2 years 9 months 20 days | ||||
Total fair value of restricted stock vested | $ 3,192,000 | 4,457,000 | 2,121,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,580,273 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 5.80 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 444,365 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 304,762 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 11.79 | ||||
Market Share Unit [Member] | |||||
Share-based compensation (Textual) [Abstract] | |||||
Unrecognized compensation cost | $ 781,000 | ||||
Weighted average-period, cost is expected to be recognized | 1 year 8 months 30 days | ||||
Total fair value of restricted stock vested | $ 2,433,000 | $ 29,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 335,253 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.94 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 49.00% | 45.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.90% | 1.10% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 192,941 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 56,269 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 8.01 | ||||
Performance Shares [Member] | |||||
Share-based compensation (Textual) [Abstract] | |||||
Unrecognized compensation cost | $ 133,000 | ||||
Total fair value of restricted stock vested | $ 147,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 43,200 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 10,800 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 10,800 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 12.30 | ||||
Employee Stock [Member] | |||||
Share-based compensation (Textual) [Abstract] | |||||
Future grant of awards under the Plan | 267,839 | ||||
Weighted average fair value of shares issued | $ 6.7 | $ 7.2 | |||
2010 Equity Incentive Plan [Member] | Minimum [Member] | |||||
Share-based compensation (Textual) [Abstract] | |||||
Vesting period | 1 year | ||||
2010 Equity Incentive Plan [Member] | Maximum [Member] | |||||
Share-based compensation (Textual) [Abstract] | |||||
Vesting period | 4 years | ||||
2013 ESPP [Member] | Employee Stock [Member] | |||||
Share-based compensation (Textual) [Abstract] | |||||
Common stock reserved for future issuance | 650,000 | ||||
Purchase price of common stock as a percentage of fair value | 85.00% | ||||
Offering period | 6 months | ||||
Maximum employee investment as a percentage of gross compensation | 10.00% | ||||
Maximum number of shares per employee | 1,500 | ||||
2013 ESPP [Member] | Employee Stock [Member] | Maximum [Member] | |||||
Share-based compensation (Textual) [Abstract] | |||||
Offering period | 27 months |
Stock-Based Compensation Detail
Stock-Based Compensation Details 5 (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 51.00% | 49.00% | 69.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.35% | 1.67% | 1.82% |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 0.00% | 0.00% | 0.00% |
Market Share Unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 49.00% | 45.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.90% | 1.10% | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 222,773 | 136,730 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 335,253 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 0.00% | 0.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.94 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (192,941) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 8.01 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (56,269) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 9.81 | $ 18.07 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current expense: | |||
U.S. provision | $ (10) | $ 0 | $ 0 |
State | 31 | 25 | (573) |
Foreign (non-U.S. entities) | 70 | 20 | 0 |
Total current expense | 91 | 45 | (573) |
Deferred Income Tax Expense (Benefit) | 4 | 0 | 0 |
Deferred State and Local Income Tax Expense (Benefit) | 1 | 0 | 0 |
Deferred Income Tax Expense (Benefit) | $ 5 | $ 0 | $ 0 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Income (Loss)Foreign and Domestic [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ (50,651) | $ (42,221) | $ (37,766) |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (50,501) | (42,157) | (38,836) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 150 | 64 | $ (1,070) |
Deferred income tax assets (liabilities): | |||
NOL and credit carryforwards | 74,375 | 59,907 | |
Compensation accruals | 4,660 | 3,952 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals | 3,437 | 2,201 | |
State tax provision | 8 | 8 | |
Inventory adjustments | 996 | 559 | |
Intangible Assets | 645 | 361 | |
Deferred Tax Assets, Other | 144 | 5 | |
Subtotal: Deferred Tax Assets | 84,265 | 66,993 | |
Depreciation | (1,784) | (782) | |
Deferred Tax Liabilities, Net | (1,784) | (782) | |
Valuation allowance | (82,481) | (66,211) | |
Deferred Tax Assets, Net | 1,784 | 782 | |
Net deferred income taxes | $ 0 | $ 0 |
Income Taxes (Details 2)
Income Taxes (Details 2) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of income tax (expense) | |||
U.S. Federal statutory income tax rate | 34.00% | 34.00% | 34.00% |
Permanent differences | (0.30%) | (0.10%) | (0.30%) |
State taxes | 2.30% | 2.40% | 2.60% |
Executive compensation limitation | (0.10%) | (0.80%) | (0.70%) |
Stock-based compensation | (3.50%) | (1.40%) | (1.50%) |
Other | (0.40%) | 2.10% | 0.30% |
Valuation allowance | (32.20%) | (36.90%) | (32.90%) |
Total tax provision | (0.20%) | (0.70%) | 1.50% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes (Textual) [Abstract] | ||||
Net operating loss carryforwards related to excess tax benefits from share-based compensation | $ 5,400 | |||
Unrecognized Tax Benefits | $ 0 | $ 0 | $ 0 | $ 382 |
Income Taxes (Additional Textual) [Abstract] | ||||
Changes in ownership | stockholders that hold 5% or more of the Company’s common stock | |||
Valuation allowance | $ 82,481 | 66,211 | ||
Probability of realization of income tax upon settlement | 50.00% | |||
Domestic (U.S. Entities) | ||||
Income Taxes (Textual) [Abstract] | ||||
Net operating loss (NOL) | $ 206,900 | |||
State and Local Jurisdiction [Member] | ||||
Income Taxes (Textual) [Abstract] | ||||
Net operating loss (NOL) | $ 165,000 | |||
Foreign (non U.S. Entities) | ||||
Income Taxes (Textual) [Abstract] | ||||
Net operating loss (NOL) | $ 0 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits | $ 0 | $ 0 | $ 382 |
Lapses in the statute of limitations | 0 | 0 | (382) |
Unrecognized Tax Benefits | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies62
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Annual future minimum obligations for operating leases | |
2,015 | $ 1,644 |
2,016 | 1,792 |
2,017 | 1,913 |
2,018 | 1,972 |
2,019 | 1,372 |
Thereafter | 1,365 |
Total minimum lease payments | $ 10,058 |
Commitments and Contingencies63
Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent and operating expenses | $ 1,871 | $ 1,233 | $ 1,147 |
Deferred balance | $ 4,097 | $ 1,445 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of inventory on hand | ||
Raw materials | $ 2,171 | $ 1,147 |
Work-in-process | 1,488 | 693 |
Finished goods | 2,974 | 1,214 |
Total inventory | $ 6,633 | $ 3,054 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property and equipment-at cost: | ||
Total property and equipment-at cost | $ 31,828 | $ 21,760 |
Less accumulated depreciation | (13,560) | (10,364) |
Net property and equipment | 18,268 | 11,396 |
Plant and machinery [Member] | ||
Property and equipment-at cost: | ||
Total property and equipment-at cost | 10,145 | 7,728 |
Instruments [Member] | ||
Property and equipment-at cost: | ||
Total property and equipment-at cost | 9,869 | 8,195 |
Office equipment [Member] | ||
Property and equipment-at cost: | ||
Total property and equipment-at cost | 1,714 | 1,526 |
Leasehold improvements [Member] | ||
Property and equipment-at cost: | ||
Total property and equipment-at cost | $ 10,100 | $ 4,311 |
Property and Equipment, net (66
Property and Equipment, net (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property and Equipment, net (Textual) [Abstract] | |||
Depreciation expense | $ 3,510,000 | $ 3,112,000 | $ 2,429,000 |
Property, Plant and Equipment [Line Items] | |||
Impairment charge included in depreciation expense | $ 76,000 | $ 153,000 | $ 102,000 |
Loan payable (Details)
Loan payable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Interest Rate Description | (a) the greater of 1.25% per annum or a base rate as determined by a three-month LIBOR-based formula, plus (b) an applicable margin between 2.95% and 3.95% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.75% | |
Debt Instrument, Unused Borrowing Capacity, Fee | $ 42,000 | $ 34,000 |
Interest Expense, Long-term Debt | 1,184,000 | 611,000 |
Loan Payable and Line of Credit (Textual) [Abstract] | ||
Restricted cash | $ 758,000 | 758,000 |
Debt Instrument, Interest Rate Terms | a) the greater of 1.00% or the 3-year treasury rate in effect at the time of funding, plus (b) an applicable margin between 4.95% and 5.90% per annum. | |
Debt Interest only Period End | Mar. 1, 2017 | |
Debt Instrument, Maturity Date | Jan. 12, 2019 | |
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | $ 585,000 | 883,000 |
Amortization of Financing Costs | 298,000 | 208,000 |
Term Loan A [Member] | ||
Line of Credit Facility [Line Items] | ||
Loans Payable | 10,000,000 | $ 10,000,000 |
Term Loans [Member] | ||
Line of Credit Facility [Line Items] | ||
Loans Payable | 35,000,000 | |
Term Loan B [Member] | ||
Line of Credit Facility [Line Items] | ||
Loans Payable | 10,000,000 | |
Term Loan C [Member] | ||
Line of Credit Facility [Line Items] | ||
Loans Payable | 15,000,000 | |
Letter of Credit [Member] | Banc of California [Member] | Previous Letter Of Credit [Member] | ||
Loan Payable and Line of Credit (Textual) [Abstract] | ||
Restricted Cash and Cash Equivalents, Current | $ 758,000 |
Loan payable Outstanding Loan B
Loan payable Outstanding Loan Balance (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | ||
Debt Instrument, Unused Borrowing Capacity, Fee | $ 42,000 | $ 34,000 |
Interest Expense, Long-term Debt | 1,184,000 | 611,000 |
Debt Instrument, Unamortized Discount (Premium), Net | (585,000) | (883,000) |
Long-term Debt | 19,815,000 | 9,517,000 |
Long-term Debt, Current Maturities | (7,935,000) | 373,000 |
Long-term Debt, Excluding Current Maturities | 11,880,000 | 9,890,000 |
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 | |
Term Loan A [Member] | ||
Line of Credit Facility [Line Items] | ||
Loans Payable | 10,000,000 | 10,000,000 |
Term Loan B [Member] [Member] | ||
Line of Credit Facility [Line Items] | ||
Loans Payable | 10,000,000 | 0 |
Final Fee [Member] | ||
Line of Credit Facility [Line Items] | ||
Loans Payable | $ 400,000 | $ 400,000 |
Other current liabilities (Deta
Other current liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other current liabilities | ||
Accrued warranties | $ 219 | $ 118 |
Accrued Liabilities | 789 | 0 |
Deferred Revenue | 658 | 267 |
Other Accrued Liabilities, Current | 1,518 | 732 |
Accrued royalties | 949 | 1,608 |
Total | $ 4,133 | $ 2,725 |
Fair Value of Financial Instr70
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) on Sale of Equity Investments | $ 9 | $ 223 | $ 0 |
U.S. Government and Agency Securities [Member] | Quotes Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 0 | ||
Fair Value, Measurements, Recurring [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 26,163 | 32,208 | |
Fair Value, Measurements, Recurring [Member] | Quotes Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 556 | 22,128 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 25,607 | 10,080 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 556 | 22,128 | |
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | Quotes Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 556 | 22,128 | |
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Corporate Notes and Bonds [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 18,821 | 8,483 | |
Fair Value, Measurements, Recurring [Member] | Corporate Notes and Bonds [Member] | Quotes Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 0 | ||
Fair Value, Measurements, Recurring [Member] | Corporate Notes and Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 18,821 | 8,483 | |
Fair Value, Measurements, Recurring [Member] | Corporate Notes and Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 0 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Government and Agency Securities [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 3,503 | 799 | |
Fair Value, Measurements, Recurring [Member] | U.S. Government and Agency Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 3,503 | 799 | |
Fair Value, Measurements, Recurring [Member] | U.S. Government and Agency Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 0 | ||
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 3,283 | 798 | |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | Quotes Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 0 | ||
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | 3,283 | $ 798 | |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets measured at fair value on a recurring basis | |||
Financial assets | $ 0 |
Investments (Details)
Investments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | $ 25,635 |
Gross unrealized gains | 0 |
Gross unrealized losses | (28) |
Fair value | 25,607 |
Corporate Note Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 18,846 |
Gross unrealized gains | 0 |
Gross unrealized losses | (25) |
Fair value | 18,821 |
US Government Corporations and Agencies Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 3,506 |
Gross unrealized gains | 0 |
Gross unrealized losses | (3) |
Fair value | 3,503 |
Commercial Paper [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 3,283 |
Gross unrealized gains | 0 |
Gross unrealized losses | 0 |
Fair value | $ 3,283 |
Investments (Details 1)
Investments (Details 1) $ in Thousands | Dec. 31, 2016USD ($) |
Companies available-for-sale investments | |
Due in one year or less, Amortized cost | $ 25,635 |
Due after one year through two years, Amortized cost | 0 |
Amortized cost | 25,635 |
Due in one year or less, Fair value | 25,607 |
Due after one year through two years, Fair value | 0 |
Fair value | $ 25,607 |
Investments (Details Textuals)
Investments (Details Textuals) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Advanced Liquid Logic, Inc. [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Realized gain | $ 1,392 |
Selected Quarterly Financial 74
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Selected Quarterly Financial Data | |||||||||||
Total revenue | $ 14,885 | $ 10,813 | $ 12,512 | $ 11,064 | $ 13,186 | $ 8,472 | $ 7,646 | $ 10,107 | $ 49,274 | $ 39,411 | $ 30,594 |
Gross profit (loss) | 8,642 | 6,451 | 7,792 | 6,689 | 8,498 | 5,120 | 4,360 | 6,116 | 29,574 | 24,094 | 17,467 |
Loss from operations | (12,058) | (11,627) | (12,588) | (12,708) | (8,461) | (11,117) | (11,930) | (10,027) | (48,981) | (41,535) | (39,054) |
Net loss | $ (12,678) | $ (12,058) | $ (12,907) | $ (12,958) | $ (8,782) | $ (11,394) | $ (12,152) | $ (9,869) | $ (50,601) | $ (42,197) | $ (38,263) |
Per share data: | |||||||||||
Net loss per common share - basic and diluted | $ (0.27) | $ (0.27) | $ (0.30) | $ (0.30) | $ (0.21) | $ (0.27) | $ (0.29) | $ (0.24) | $ (1.15) | $ (1) | $ (0.93) |
Subsequent Evens Debt Amendment
Subsequent Evens Debt Amendment Subsequent Event (Details) | Feb. 27, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | ||
Subsequent Event, Date | Feb. 27, 2017 | |
Debt Interest only Period End | Mar. 1, 2017 | |
June 1, 2017 Option [Member] | ||
Subsequent Event [Line Items] | ||
Debt Interest only Period End | Jun. 1, 2017 | |
August 1, 2017 Option [Member] | ||
Subsequent Event [Line Items] | ||
Debt Interest only Period End | Aug. 1, 2017 | |
March 1, 2018 Extension [Member] [Member] | ||
Subsequent Event [Line Items] | ||
Debt Interest only Period End | Mar. 1, 2018 |