Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 27, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GenMark Diagnostics, Inc. | |
Entity Central Index Key | 1,487,371 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 55,412,410 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Current Assets: | $ 35,185,000 | $ 45,236,000 |
Cash and cash equivalents | 30,278,000 | 26,754,000 |
Short-term marketable securities | 35,185,000 | 45,236,000 |
Accounts receivable, net of allowances of $52 and $2,754, respectively | 8,081,000 | 10,676,000 |
Inventories | 10,452,000 | 10,949,000 |
Prepaid expenses and other current assets | 1,490,000 | 2,216,000 |
Total current assets | 85,486,000 | 95,831,000 |
Property and equipment, net | 21,881,000 | 22,581,000 |
Intangible assets, net | 2,475,000 | 2,624,000 |
Restricted cash | 758,000 | 758,000 |
Other long-term assets | 507,000 | 505,000 |
Total assets | 111,107,000 | 122,299,000 |
Current liabilities: | ||
Accounts payable | 9,688,000 | 11,171,000 |
Accrued compensation | 4,577,000 | 5,419,000 |
Current portion of long-term debt | 13,428,000 | 7,927,000 |
Other current liabilities | 2,912,000 | 3,226,000 |
Total current liabilities | 30,605,000 | 27,743,000 |
Deferred rent | 2,893,000 | 3,059,000 |
Long-term debt | 14,868,000 | 20,099,000 |
Other noncurrent liabilities | 187,000 | 241,000 |
Total liabilities | 48,553,000 | 51,142,000 |
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 5,000 authorized, none issued | 0 | 0 |
Common stock, $0.0001 par value; 100,000 authorized; 55,412 and 55,066 shares issued and outstanding, respectively | 6,000 | 6,000 |
Additional paid-in capital | 490,306,000 | 487,525,000 |
Accumulated deficit | (427,808,000) | (416,383,000) |
Accumulated other comprehensive income | 50,000 | 9,000 |
Total stockholders’ equity | 62,554,000 | 71,157,000 |
Total liabilities and stockholders’ equity | $ 111,107,000 | $ 122,299,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable - net of allowance | $ 52 | $ 2,754 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 55,412,000 | 55,066,000 |
Common stock, outstanding | 55,412,000 | 55,066,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue | ||
Product revenue | $ 20,576,000 | $ 12,470,000 |
License and other revenue | 69,000 | 65,000 |
Total revenue | 20,645,000 | 12,535,000 |
Cost of revenue | 16,480,000 | 6,352,000 |
Gross profit | 4,165,000 | 6,183,000 |
Operating expenses: | ||
Sales and marketing | 5,402,000 | 4,693,000 |
General and administrative | 4,133,000 | 4,011,000 |
Research and development | 5,420,000 | 11,035,000 |
Total operating expenses | 14,955,000 | 19,739,000 |
Loss from operations | (10,790,000) | (13,556,000) |
Other income (expense): | ||
Interest income | 187,000 | 52,000 |
Interest expense | (788,000) | (507,000) |
Other income (expense) | (12,000) | 95,000 |
Total other income (expense) | (613,000) | (360,000) |
Loss before provision for income taxes | (11,403,000) | (13,916,000) |
Income tax expense | 20,000 | 1,000 |
Net loss | $ (11,423,000) | $ (13,917,000) |
Net loss per share, basic and diluted | $ (0.21) | $ (0.30) |
Weighted average number of shares outstanding basic and diluted | 55,205 | 46,846 |
Other comprehensive loss: | ||
Net loss | $ (11,423,000) | $ (13,917,000) |
Foreign currency translation adjustments, net of tax | (34,000) | 91,000 |
Net unrealized losses on marketable securities, net of tax | 8,000 | (16,000) |
Total other comprehensive income/(loss) | (26,000) | 75,000 |
Total comprehensive loss | $ (11,449,000) | $ (13,842,000) |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities: | ||
Net loss | $ (11,423) | $ (13,917) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,740 | 1,217 |
Net amortization/(accretion) of premiums/discounts on investments | (42) | 19 |
Amortization of deferred debt issuance costs | 290 | 151 |
Stock-based compensation | 2,724 | 2,808 |
Provision for bad debt | 0 | 9 |
Non-cash inventory adjustments | 449 | 317 |
Other non-cash adjustments | 84 | (85) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,566 | 1,558 |
Inventories | (526) | (3,118) |
Prepaid expenses and other assets | 760 | (216) |
Accounts payable | (1,361) | (2,821) |
Accrued compensation | (992) | (1,144) |
Other current and non-current liabilities | (321) | (343) |
Net cash used in operating activities | (6,052) | (15,565) |
Investing activities: | ||
Purchases of property and equipment | 465 | 1,888 |
Payments to Acquire Marketable Securities | 7,900 | 0 |
Proceeds from sales of marketable securities | 0 | 13,896 |
Maturities of marketable securities | 18,000 | 700 |
Net cash provided by investing activities | 9,635 | 12,708 |
Financing activities: | ||
Principal repayment of borrowings | (22) | (6) |
Payments associated with debt issuance | (20) | (20) |
Proceeds from stock option exercises | 17 | 88 |
Net cash provided by (used in) financing activities | (25) | 62 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (34) | 14 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 3,524 | (2,781) |
Cash, cash equivalents, and restricted cash at beginning of year | 27,512 | 16,717 |
Cash, cash equivalents, and restricted cash at end of period | 31,036 | 13,936 |
Non-cash investing and financing activities: | ||
Transfer of systems to property and equipment from inventory | 569 | 415 |
Property and equipment included in accounts payable | 147 | 183 |
Supplemental cash flow information: | ||
Cash paid for income taxes, net | 33 | 5 |
Cash paid for interest | $ 508 | $ 347 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation GenMark Diagnostics, Inc., the Company or GenMark, was formed by Osmetech plc as a Delaware corporation in February 2010, and had no operations prior to its initial public offering, which was completed in June 2010. The Company is a provider of automated, multiplex molecular diagnostic testing systems that detect and measure DNA and RNA targets to diagnose disease and optimize patient treatment. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or U.S. GAAP, and applicable regulations of the U.S. Securities and Exchange Commission, or the SEC, and should be read in conjunction with the audited financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 filed with the SEC on February 27, 2018. These unaudited condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These adjustments are of a normal, recurring nature. Interim period operating results may not be indicative of the operating results for the full year or any future period. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company has experienced net losses and negative cash flows from operating activities since its inception and had an accumulated deficit of $427,808,000 as of March 31, 2018 . The Company's ability to transition to 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. As of March 31, 2018 , the Company had available cash, cash equivalents, and marketable securities of $65,463,000 and working capital of $54,881,000 available to fund future operations. The Company has prepared cash flow forecasts which indicate, based on the Company's current cash resources available and working capital, that the Company will have sufficient resources to fund its operations for at least one year after the date the financial statements are issued. Use of Estimates The preparation of consolidated financial statements in conformity with 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 Information The Company currently operates in one reportable business segment, which encompasses the development, manufacturing, sales and support of instruments and molecular tests based on its proprietary eSensor® detection technology. Substantially all of the Company’s operations and assets are in the United States of America. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or the FASB, or other standard setting bodies that the Company adopts as of the specified effective date. In November 2016, the FASB issued Accounting Standards Update, or ASU, 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires amounts generally described as restricted cash and restricted cash equivalents to be included in the cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 (including interim periods within those periods) using a retrospective transition method for each period presented, with early adoption permitted. The Company adopted the new standard in the first quarter of 2018 using the retrospective transition method resulting in an increase in the beginning and ending cash balance of $758,000 for each period presented. In February 2016, the FASB issued ASU 2016-02, Leases which 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 believes that adoption of this guidance will modify its analysis and disclosures of lease agreements because operating agreements are a significant portion of the Company's total lease commitments. The Company is in the process of determining the effects adoption of this guidance will have on its consolidated financial statements and intends to adopt this guidance in the first quarter of 2019. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), an updated standard on revenue recognition. The new standard provides enhancements to the quality and consistency of how revenue is reported under the principle that revenue should be recognized in an amount that reflects the consideration to which the Company expects to be entitled in exchange for the transfer of promised goods or services. The Company adopted the new standard using the modified retrospective transition method. The cumulative effect of applying the new standard as of January 1, 2018 resulted in a net increase in opening retained earnings of $736,000 . The impact to retained earnings was driven by the capitalization of certain costs, primarily sales-type commissions. During the three months ended March 31, 2018, the Company recognized $127,000 in expense related to the amortization of the capitalized contract costs which would not have been recorded under the prior revenue standard. Aside from this adjustment to beginning retained earnings and the related amortization of expense during the quarter, the application of this standard did not have a material impact on the Company's condensed consolidated financial statements as of and for the three months ended March 31, 2018. We expect the impact of the application of this standard to be immaterial to our consolidated financial statements going forward. Revenue The Company recognizes revenue from operations through the sale of products and other services. Product revenue is comprised of the sale of diagnostic tests and instruments. Revenue is recognized when control of products and services is transferred to the customer in an amount that reflects the consideration that the Company expects to receive from the customer in exchange for those products and services. This process involves identifying the contract with the customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. Revenue from product sales is recognized generally upon shipment to the end customer, which is when control of the product is deemed to be transferred. Invoicing typically occurs upon shipment and the term between invoicing and when payment is due is not significant. Revenue from instrument services is recognized as the services are rendered, typically evenly over the contract term. Revenue is recorded net of discounts and sales taxes collected on behalf of governmental authorities. Employee sales commissions are recorded as selling, general and administrative expenses when incurred or amortized over the estimated contract term when resulting from new contract acquisition efforts. The Company allocates contract price to each performance obligation in proportion to its stand-alone selling price. The stand-alone selling price is determined by the Company's best estimate of stand-alone selling price using average selling prices over a rolling 12-month period along with a specific assessment of any unique circumstances of the contract. For those products for which there is limited sales history, the Company makes price determination based on similar product sales data. The following table represents disaggregated revenue by source (in thousands): Three Months Ended March 31, 2018 2017 Revenue Source: ePlex $ 11,922 $ 907 XT-8 8,654 11,563 Total product revenue 20,576 12,470 License and other revenue 69 65 Total revenue $ 20,645 $ 12,535 Cash, 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 included $758,000 as of March 31, 2018 , held as security for the Company’s letter of credit with Banc of California. 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. Product Warranties The Company generally offers a one -year warranty for its instruments sold to customers and typically up to a 60 day warranty for consumables. 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 its warranty reserve and adjusts the amount as appropriate. Intangible Assets Intangible assets comprise 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. 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 identified below. Repair and maintenance costs are expensed as incurred. 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 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. |
Net Loss per Common Share
Net Loss per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Common Share | Net Loss per Common Share Basic net loss per share is calculated by dividing loss available to stockholders of the Company's 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 computations of diluted net loss per share for the three month periods ended March 31, 2018 and 2017 did not include the effects of the following stock options and other equity awards which were outstanding as of the end of each period because the inclusion of these securities would have been anti-dilutive (in thousands): Three Months Ended March 31, 2018 2017 Options outstanding to purchase common stock 2,454 2,550 Other unvested equity awards 3,759 2,931 Total 6,213 5,481 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Compensation Related Costs [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense related to stock options, restricted stock awards, restricted stock units, and market-based stock units granted to employees and directors in exchange for services under the Company's 2010 Equity Incentive Plan, or the 2010 Plan, and employee stock purchases under the Company's 2013 Employee Stock Purchase Plan, or the ESPP. Employee participation in the 2010 Plan is at the discretion of the Compensation Committee of the Board of Directors of the Company. Each equity award grant reduces the number of shares available for grant under the 2010 Plan. Stock-based compensation expense is recorded in cost of sales, sales and marketing, research and development, and/or general and administrative expenses based on the employee's respective function. During the three months ended March 31, 2018 and 2017 , aggregate stock-based compensation expense was $2,724,000 and $2,808,000 , respectively. Stock Options The fair value of stock options granted is derived from the Black-Scholes Option Pricing Model, which uses several judgment-based variables to calculate the expense. The inputs include the expected term of the stock option, the expected volatility and other 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 estimated volatility in the Company’s stock price over the expected term of the stock option and is determined by review of the Company’s and similar companies’ historical experience. • Expected Dividend . The Black-Scholes Option Pricing Model calls for a single expected dividend yield as an input. The Company has 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 used in the Black-Scholes Option Pricing Model 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. All stock options granted under the 2010 Plan are exercisable at a per share price equal to the closing quoted market price of a share of the Company’s common stock on the NASDAQ Global Market on the grant date and generally vest over a period of four years. Stock options are generally exercisable for a period of up to 10 years after grant and are typically forfeited if employment is terminated before the options vest. The following table summarizes stock option activity during the three months ended March 31, 2018 : Number of Shares Weighted Average Exercise Price Outstanding at December 31, 2017 2,490,465 $ 9.59 Exercised (4,000) $ 4.24 Cancelled (32,728) $ 11.48 Outstanding at March 31, 2018 2,453,737 $ 9.58 Vested and expected to vest at March 31, 2018 2,444,714 $ 9.57 Exercisable at March 31, 2018 2,314,735 $ 9.38 Stock options that were exercisable as of March 31, 2018 had a remaining weighted average contractual term of 4.83 years, and an aggregate intrinsic value of $507,000 . As of March 31, 2018 , there were 2,453,737 stock options outstanding, which had a remaining weighted average contractual term of 4.94 years and an aggregate intrinsic value of $509,000 . No stock options were granted during the three months ended March 31, 2018 . Restricted Stock Awards and Units 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. In March 2013, the Company transitioned to granting restricted stock units under the 2010 Plan in lieu of granting restricted stock awards. Restrictions expire after the grant date in accordance with specific provisions in the applicable award agreement. Restricted stock units granted under the 2010 Plan generally vest over a period of between one and four years and are typically forfeited if employment is terminated before the restricted stock units vest. The compensation expense related to the restricted stock awards or units is calculated as the fair market value of the stock on the grant date and is adjusted for estimated forfeitures. The Company has not granted any restricted stock awards since 2013. As of March 31, 2018 , all compensation expense related to restricted stock awards has been recognized and all awards have been fully vested. The total fair value of restricted stock awards that vested during the three months ended March 31, 2017 was $2,000 . The Company’s restricted stock unit activity for the three months ended March 31, 2018 was as follows: Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2017 2,073,440 $ 9.14 Granted 1,548,350 $ 4.27 Vested (342,381) $ 9.77 Cancelled (74,617) $ 9.86 Unvested at March 31, 2018 3,204,792 $ 6.70 As of March 31, 2018 , there was $15,120,000 of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted average period of 2.94 years. The total fair value of restricted stock units that vested during the three months ended March 31, 2018 and 2017 was $1,523,000 and $1,920,000 , respectively. Market-Based Stock Units The Company issued market-based stock units in February 2018 , 2017 , and 2016 , which may result in the recipient receiving shares of stock equal 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, subject to the recipient's continued service with the Company. As of March 31, 2018 , there was $2,310,000 of unrecognized stock-based compensation expense related to market-based stock unit awards, which is expected to be recognized over a weighted average period of 2.03 years. The Company’s market-based stock unit activity for the three months ended March 31, 2018 was as follows: Market-Based Stock Units Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2017 233,743 $ 10.88 Target units granted 320,000 $ 7.19 Unvested at March 31, 2018 553,743 $ 8.75 The fair value of these market-based stock units was estimated on the grant date 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 three months ended March 31, 2018 : Three Months Ended March 31, 2018 2017 Expected volatility 65 % 54 % Risk-free interest rate 2.40 % 1.50 % Expected dividend — % — % Weighted average fair value $ 7.19 $ 13.82 Employee Stock Purchase Plan The Company's stockholders approved the ESPP in May 2013. A total of 650,000 shares of the Company’s common stock were originally 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 Company's 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 qualifying 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 March 31, 2018 , there were 93,116 shares of common stock available for issuance under the ESPP. In March 2018, the Company’s Board of Directors approved the amendment and restatement of the ESPP to increase the total number of shares authorized for issuance under the ESPP from 650,000 shares to 1,750,000 shares, subject to approval by the Company’s stockholders at the Company’s 2018 Annual Stockholder Meeting to be held on May 24, 2018. The ESPP is a compensatory plan as defined by the authoritative guidance for stock compensation; therefore, stock-based compensation expense related to the ESPP has been recorded during the three months ended March 31, 2018 . Stock-Based Compensation Expense Recognition Stock-based compensation was recognized in the unaudited condensed consolidated statements of comprehensive loss as follows (in thousands): Three Months Ended March 31, 2018 2017 Cost of revenue $ 187 $ 143 Sales and marketing 645 674 Research and development 627 674 General and administrative 1,265 1,317 Total stock-based compensation expense $ 2,724 $ 2,808 Stock-based compensation capitalized during the periods presented was not material and there was no unrecognized tax benefit related to stock-based compensation for the three months ended March 31, 2018 and 2017 . |
Condensed Consolidated Financia
Condensed Consolidated Financial Statement Details (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details The following tables show the Company's unaudited condensed consolidated financial statement details as of March 31, 2018 and December 31, 2017 (in thousands): Inventory March 31, 2018 December 31, 2017 Raw materials $ 3,225 $ 4,534 Work-in-process 3,012 3,638 Finished goods 4,215 2,777 Total inventories $ 10,452 $ 10,949 Property, Plant and Equipment, Net March 31, 2018 December 31, 2017 Property and equipment–at cost: Plant and machinery $ 14,061 $ 13,762 Instruments 13,676 13,347 Office equipment 2,005 1,948 Leasehold improvements 10,480 10,480 Total property and equipment–at cost 40,222 39,537 Accumulated depreciation and amortization (18,341 ) (16,956 ) Total property and equipment, net $ 21,881 $ 22,581 Accrued Warranty Product warranty reserve activity for the three months ended March 31, 2018 and 2017 is as follows (in thousands): Three Months Ended March 31, 2018 2017 Beginning accrued warranty balance $ 470 $ 219 Warranty expenses incurred (516 ) (312 ) Provisions 464 397 Ending accrued warranty balance $ 418 $ 304 |
Intangible Assets, net
Intangible Assets, net | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net | Intangible Assets, net Intangible assets as of March 31, 2018 and December 31, 2017 comprised the following (in thousands): March 31, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Licensed intellectual property $ 4,750 $ (2,275 ) $ 2,475 $ 4,750 $ (2,126 ) $ 2,624 Intellectual property licenses have a weighted average remaining amortization period of 4.18 years as of March 31, 2018 . Amortization expense for these licenses was $149,000 and $124,000 for the three months ended March 31, 2018 and 2017 , respectively. Estimated future amortization expense for these licenses is as follows (in thousands): Fiscal Years Ending Future Amortization Expense Remaining in 2018 $ 445 2019 593 2020 593 2021 593 2022 251 Total $ 2,475 |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | The following table summarizes the Company’s marketable securities as of March 31, 2018 and December 31, 2017 (in thousands): March 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 18,358 $ — $ (19 ) $ 18,339 U.S. government and agency securities 7,994 — (5 ) 7,989 Commercial paper 8,857 — — 8,857 Total $ 35,209 $ — $ (24 ) $ 35,185 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 26,303 $ — $ (25 ) $ 26,278 U.S. government and agency securities 11,981 — (5 ) 11,976 Commercial paper 6,982 — — 6,982 Total $ 45,266 $ — $ (30 ) $ 45,236 The following table summarizes the maturities of the Company’s marketable securities as of March 31, 2018 (in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 35,209 $ 35,185 Total $ 35,209 $ 35,185 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of financial instruments, such as cash equivalents, restricted cash, accounts receivable, and accounts payable approximate the related fair values due to the short-term maturities of these 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 following table presents the financial instruments measured at fair value on a recurring basis and the valuation approach applied to each class of financial instruments as of March 31, 2018 and December 31, 2017 (in thousands): March 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents Money market funds $ 10,054 $ — $ — $ 10,054 Marketable securities Corporate notes and bonds — 18,339 — 18,339 U.S. government and agency securities — 7,989 — 7,989 Commercial paper — 8,857 — 8,857 Total $ 10,054 $ 35,185 $ — $ 45,239 December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents Money market funds $ 6,362 $ — $ — $ 6,362 Corporate notes and bonds — 1,498 — 1,498 Marketable securities Corporate notes and bonds — 26,278 — 26,278 U.S. government and agency securities — 11,976 — 11,976 Commercial paper — 6,982 — 6,982 Total $ 6,362 $ 46,734 $ — $ 53,096 Level 2 marketable securities are priced using quoted market prices for similar instruments or nonbinding market prices that are corroborated by observable market data. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data, which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets and liabilities. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs. |
Loan Payable
Loan Payable | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Loan Payable | Loan Payable As of March 31, 2018 and December 31, 2017 , long-term debt consisted of the following (in thousands): March 31, 2018 December 31, 2017 Term Loans Term Loan A - $10.0 million at 6.9% interest $ 7,619 $ 7,619 Term Loan B - $10.0 million at 6.9% interest 7,619 7,619 Term Loan C - $15.0 million at 7.4% interest 12,000 12,000 Final fee obligation 2,429 2,429 Unamortized issuance costs (1,371 ) (1,641 ) Total debt, net 28,296 28,026 Current portion of long-term debt (13,428 ) (7,927 ) Long-term debt $ 14,868 $ 20,099 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 . As of March 31, 2018 , the Company had borrowed all $35,000,000 under the term loans as provided in the LSA. As of March 31, 2018, the Company had not borrowed any of the $5,000,000 available under the revolving loan. 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 August 1, 2018 , 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 October 12, 2019 , or the Maturity Date. The Company may extend the Interest-Only Period until January 1, 2019 and the Final Maturity Date until March 12, 2020 , subject in each case to the satisfaction of certain financial conditions. 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, dividends, payments and acquisitions, other than as specifically permitted by the LSA. As of March 31, 2018 , 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 a 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 March 31, 2018 , the Company had not borrowed any amounts pursuant the revolving loan facility. Debt Issuance Costs As of March 31, 2018 and December 31, 2017 , the Company had $1,371,000 and $1,641,000 , respectively, of unamortized debt issuance discount, which is offset against borrowings in long-term and short-term debt. For the three months ended March 31, 2018 and 2017 , amortization of debt issuance costs was $290,000 and $151,000 , respectively. Amortization of debt issuance costs is 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 March 31, 2018 . |
Leases
Leases | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Leases | Leases The Company has operating and capital lease agreements for its office, manufacturing, warehousing and laboratory space and for office equipment. Rent and operating expenses charged under these arrangements was $427,000 and $409,000 for the three months ended March 31, 2018 and 2017 , respectively. Pursuant to the Company's lease agreements, a portion of the monthly rent has been deferred. The balance of deferred rent as of March 31, 2018 and December 31, 2017 was $3,524,000 and $3,652,000 , respectively. As of March 31, 2018 , the future minimum lease payments required over the next five years under the Company's lease arrangements are as follows (in thousands): Fiscal Years Ending Future Minimum Lease Payments Remaining in 2018 $ 1,421 2019 1,989 2020 1,997 2021 1,372 2022 771 Thereafter 595 Total $ 8,145 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. As of March 31, 2018 , the Company recorded a full valuation allowance against all of its net deferred tax assets due to the uncertainty surrounding the Company’s ability to utilize these assets in the future. Due to the Company's losses, it only records a tax provision or benefit related to uncertain tax positions and related interest and minimum tax payments or refunds. The Company recorded income tax expense of $20,000 for the three months ended March 31, 2018 . The Company continues to monitor guidance issued by the U.S. Treasury Department, the Internal Revenue Service, and other standard-setting bodies related to the Tax Cuts and Jobs Act, or the Jobs Act, enacted in 2017. Due to the timing of the enactment and the complexity involved in applying the provisions of the Jobs Act, the Company made reasonable estimates of the effects and recorded provisional amounts in the consolidated financial statements as of December 31, 2017. No adjustments were made to the provisional amounts recorded related to the Jobs Act during the three months ended March 31, 2018 . The Company expects to complete the accounting for tax effects of the Jobs Act in 2018. The Company is subject to taxation in the United States and in 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 March 31, 2018 , the Company’s tax years from 2011 through 2012 are subject to examination by the United Kingdom tax authorities related to legacy operations. 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 we have 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. |
Organization and Basis of Pre16
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or U.S. GAAP, and applicable regulations of the U.S. Securities and Exchange Commission, or the SEC, and should be read in conjunction with the audited financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 filed with the SEC on February 27, 2018. These unaudited condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These adjustments are of a normal, recurring nature. Interim period operating results may not be indicative of the operating results for the full year or any future period. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company has experienced net losses and negative cash flows from operating activities since its inception and had an accumulated deficit of $427,808,000 as of March 31, 2018 . The Company's ability to transition to 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. As of March 31, 2018 , the Company had available cash, cash equivalents, and marketable securities of $65,463,000 and working capital of $54,881,000 available to fund future operations. The Company has prepared cash flow forecasts which indicate, based on the Company's current cash resources available and working capital, that the Company will have sufficient resources to fund its operations for at least one year after the date the financial statements are issued. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with 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 Information | Segment Information The Company currently operates in one reportable business segment, which encompasses the development, manufacturing, sales and support of instruments and molecular tests based on its proprietary eSensor® detection technology. Substantially all of the Company’s operations and assets are in the United States of America. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or the FASB, or other standard setting bodies that the Company adopts as of the specified effective date. In November 2016, the FASB issued Accounting Standards Update, or ASU, 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires amounts generally described as restricted cash and restricted cash equivalents to be included in the cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 (including interim periods within those periods) using a retrospective transition method for each period presented, with early adoption permitted. The Company adopted the new standard in the first quarter of 2018 using the retrospective transition method resulting in an increase in the beginning and ending cash balance of $758,000 for each period presented. In February 2016, the FASB issued ASU 2016-02, Leases which 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 believes that adoption of this guidance will modify its analysis and disclosures of lease agreements because operating agreements are a significant portion of the Company's total lease commitments. The Company is in the process of determining the effects adoption of this guidance will have on its consolidated financial statements and intends to adopt this guidance in the first quarter of 2019. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), an updated standard on revenue recognition. The new standard provides enhancements to the quality and consistency of how revenue is reported under the principle that revenue should be recognized in an amount that reflects the consideration to which the Company expects to be entitled in exchange for the transfer of promised goods or services. The Company adopted the new standard using the modified retrospective transition method. The cumulative effect of applying the new standard as of January 1, 2018 resulted in a net increase in opening retained earnings of $736,000 . The impact to retained earnings was driven by the capitalization of certain costs, primarily sales-type commissions. During the three months ended March 31, 2018, the Company recognized $127,000 in expense related to the amortization of the capitalized contract costs which would not have been recorded under the prior revenue standard. Aside from this adjustment to beginning retained earnings and the related amortization of expense during the quarter, the application of this standard did not have a material impact on the Company's condensed consolidated financial statements as of and for the three months ended March 31, 2018. We expect the impact of the application of this standard to be immaterial to our consolidated financial statements going forward. |
Revenue from Contract with Customer | Revenue The Company recognizes revenue from operations through the sale of products and other services. Product revenue is comprised of the sale of diagnostic tests and instruments. Revenue is recognized when control of products and services is transferred to the customer in an amount that reflects the consideration that the Company expects to receive from the customer in exchange for those products and services. This process involves identifying the contract with the customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. Revenue from product sales is recognized generally upon shipment to the end customer, which is when control of the product is deemed to be transferred. Invoicing typically occurs upon shipment and the term between invoicing and when payment is due is not significant. Revenue from instrument services is recognized as the services are rendered, typically evenly over the contract term. Revenue is recorded net of discounts and sales taxes collected on behalf of governmental authorities. Employee sales commissions are recorded as selling, general and administrative expenses when incurred or amortized over the estimated contract term when resulting from new contract acquisition efforts. The Company allocates contract price to each performance obligation in proportion to its stand-alone selling price. The stand-alone selling price is determined by the Company's best estimate of stand-alone selling price using average selling prices over a rolling 12-month period along with a specific assessment of any unique circumstances of the contract. For those products for which there is limited sales history, the Company makes price determination based on similar product sales data. The following table represents disaggregated revenue by source (in thousands): Three Months Ended March 31, 2018 2017 Revenue Source: ePlex $ 11,922 $ 907 XT-8 8,654 11,563 Total product revenue 20,576 12,470 License and other revenue 69 65 Total revenue $ 20,645 $ 12,535 |
Cash, Cash Equivalents and Marketable Securities | Cash, 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 included $758,000 as of March 31, 2018 , held as security for the Company’s letter of credit with Banc of California. |
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. |
Product Warranties | Product Warranties The Company generally offers a one -year warranty for its instruments sold to customers and typically up to a 60 day warranty for consumables. 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 its warranty reserve and adjusts the amount as appropriate. |
Intangible Assets | Intangible Assets Intangible assets comprise 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. |
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 identified below. Repair and maintenance costs are expensed as incurred. 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 |
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. |
Organization and Basis of Pre17
Organization and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Estimated Useful Lives of Property, Plant 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 identified below. Repair and maintenance costs are expensed as incurred. 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, Plant and Equipment, Net March 31, 2018 December 31, 2017 Property and equipment–at cost: Plant and machinery $ 14,061 $ 13,762 Instruments 13,676 13,347 Office equipment 2,005 1,948 Leasehold improvements 10,480 10,480 Total property and equipment–at cost 40,222 39,537 Accumulated depreciation and amortization (18,341 ) (16,956 ) Total property and equipment, net $ 21,881 $ 22,581 |
Disaggregation of Revenue | The following table represents disaggregated revenue by source (in thousands): Three Months Ended March 31, 2018 2017 Revenue Source: ePlex $ 11,922 $ 907 XT-8 8,654 11,563 Total product revenue 20,576 12,470 License and other revenue 69 65 Total revenue $ 20,645 $ 12,535 |
Net Loss per Common Share (Tabl
Net Loss per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computations of diluted net loss per share | The computations of diluted net loss per share for the three month periods ended March 31, 2018 and 2017 did not include the effects of the following stock options and other equity awards which were outstanding as of the end of each period because the inclusion of these securities would have been anti-dilutive (in thousands): Three Months Ended March 31, 2018 2017 Options outstanding to purchase common stock 2,454 2,550 Other unvested equity awards 3,759 2,931 Total 6,213 5,481 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Compensation Related Costs [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes stock option activity during the three months ended March 31, 2018 : Number of Shares Weighted Average Exercise Price Outstanding at December 31, 2017 2,490,465 $ 9.59 Exercised (4,000) $ 4.24 Cancelled (32,728) $ 11.48 Outstanding at March 31, 2018 2,453,737 $ 9.58 Vested and expected to vest at March 31, 2018 2,444,714 $ 9.57 Exercisable at March 31, 2018 2,314,735 $ 9.38 |
Schedule of Share-based Compensation, Restricted Stock, Activity | The Company’s restricted stock unit activity for the three months ended March 31, 2018 was as follows: Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2017 2,073,440 $ 9.14 Granted 1,548,350 $ 4.27 Vested (342,381) $ 9.77 Cancelled (74,617) $ 9.86 Unvested at March 31, 2018 3,204,792 $ 6.70 |
Schedule of Share-based Compensation, Performance Shares Award Outstanding Activity | The Company’s market-based stock unit activity for the three months ended March 31, 2018 was as follows: Market-Based Stock Units Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2017 233,743 $ 10.88 Target units granted 320,000 $ 7.19 Unvested at March 31, 2018 553,743 $ 8.75 |
Schedule of Share-based Compensation, Performance Shares Award, Valuation Assumptions | The fair value of these market-based stock units was estimated on the grant date 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 three months ended March 31, 2018 : Three Months Ended March 31, 2018 2017 Expected volatility 65 % 54 % Risk-free interest rate 2.40 % 1.50 % Expected dividend — % — % Weighted average fair value $ 7.19 $ 13.82 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Stock-based compensation was recognized in the unaudited condensed consolidated statements of comprehensive loss as follows (in thousands): Three Months Ended March 31, 2018 2017 Cost of revenue $ 187 $ 143 Sales and marketing 645 674 Research and development 627 674 General and administrative 1,265 1,317 Total stock-based compensation expense $ 2,724 $ 2,808 |
Condensed Consolidated Financ20
Condensed Consolidated Financial Statement Details (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventories | The following tables show the Company's unaudited condensed consolidated financial statement details as of March 31, 2018 and December 31, 2017 (in thousands): Inventory March 31, 2018 December 31, 2017 Raw materials $ 3,225 $ 4,534 Work-in-process 3,012 3,638 Finished goods 4,215 2,777 Total inventories $ 10,452 $ 10,949 |
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 identified below. Repair and maintenance costs are expensed as incurred. 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, Plant and Equipment, Net March 31, 2018 December 31, 2017 Property and equipment–at cost: Plant and machinery $ 14,061 $ 13,762 Instruments 13,676 13,347 Office equipment 2,005 1,948 Leasehold improvements 10,480 10,480 Total property and equipment–at cost 40,222 39,537 Accumulated depreciation and amortization (18,341 ) (16,956 ) Total property and equipment, net $ 21,881 $ 22,581 |
Accrued Warranties | Accrued Warranty Product warranty reserve activity for the three months ended March 31, 2018 and 2017 is as follows (in thousands): Three Months Ended March 31, 2018 2017 Beginning accrued warranty balance $ 470 $ 219 Warranty expenses incurred (516 ) (312 ) Provisions 464 397 Ending accrued warranty balance $ 418 $ 304 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | Intangible assets as of March 31, 2018 and December 31, 2017 comprised the following (in thousands): March 31, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Licensed intellectual property $ 4,750 $ (2,275 ) $ 2,475 $ 4,750 $ (2,126 ) $ 2,624 |
Future amortization expense | Estimated future amortization expense for these licenses is as follows (in thousands): Fiscal Years Ending Future Amortization Expense Remaining in 2018 $ 445 2019 593 2020 593 2021 593 2022 251 Total $ 2,475 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable securities, gross unrealized gains/losses | The following table summarizes the Company’s marketable securities as of March 31, 2018 and December 31, 2017 (in thousands): March 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 18,358 $ — $ (19 ) $ 18,339 U.S. government and agency securities 7,994 — (5 ) 7,989 Commercial paper 8,857 — — 8,857 Total $ 35,209 $ — $ (24 ) $ 35,185 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 26,303 $ — $ (25 ) $ 26,278 U.S. government and agency securities 11,981 — (5 ) 11,976 Commercial paper 6,982 — — 6,982 Total $ 45,266 $ — $ (30 ) $ 45,236 |
Marketable securities, contractual maturities | The following table summarizes the maturities of the Company’s marketable securities as of March 31, 2018 (in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 35,209 $ 35,185 Total $ 35,209 $ 35,185 |
Fair Value of Financial Instr23
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | The following table presents the financial instruments measured at fair value on a recurring basis and the valuation approach applied to each class of financial instruments as of March 31, 2018 and December 31, 2017 (in thousands): March 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents Money market funds $ 10,054 $ — $ — $ 10,054 Marketable securities Corporate notes and bonds — 18,339 — 18,339 U.S. government and agency securities — 7,989 — 7,989 Commercial paper — 8,857 — 8,857 Total $ 10,054 $ 35,185 $ — $ 45,239 December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents Money market funds $ 6,362 $ — $ — $ 6,362 Corporate notes and bonds — 1,498 — 1,498 Marketable securities Corporate notes and bonds — 26,278 — 26,278 U.S. government and agency securities — 11,976 — 11,976 Commercial paper — 6,982 — 6,982 Total $ 6,362 $ 46,734 $ — $ 53,096 |
Loan Payable (Tables)
Loan Payable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | As of March 31, 2018 and December 31, 2017 , long-term debt consisted of the following (in thousands): March 31, 2018 December 31, 2017 Term Loans Term Loan A - $10.0 million at 6.9% interest $ 7,619 $ 7,619 Term Loan B - $10.0 million at 6.9% interest 7,619 7,619 Term Loan C - $15.0 million at 7.4% interest 12,000 12,000 Final fee obligation 2,429 2,429 Unamortized issuance costs (1,371 ) (1,641 ) Total debt, net 28,296 28,026 Current portion of long-term debt (13,428 ) (7,927 ) Long-term debt $ 14,868 $ 20,099 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Schedule of future minimum lease payments | As of March 31, 2018 , the future minimum lease payments required over the next five years under the Company's lease arrangements are as follows (in thousands): Fiscal Years Ending Future Minimum Lease Payments Remaining in 2018 $ 1,421 2019 1,989 2020 1,997 2021 1,372 2022 771 Thereafter 595 Total $ 8,145 |
Organization and Basis of Pre26
Organization and Basis of Presentation - Property and Equipment (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 3 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 5 years |
Instruments | Minimum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 4 years |
Instruments | Maximum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 5 years |
Office Equipment | Minimum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 3 years |
Office Equipment | Maximum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 7 years |
Leasehold Improvements | Maximum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Estimated Useful Lives | over the shorter of the remaining life of the lease or the useful economic life of the asset |
Organization and Basis of Pre27
Organization and Basis of Presentation - Revenue disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Product revenue | $ 20,576 | $ 12,470 |
License and other revenue | 69 | 65 |
Total revenue | 20,645 | 12,535 |
ePlex Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Product revenue | 11,922 | 907 |
XT-8 Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Product revenue | $ 8,654 | $ 11,563 |
Organization and Basis of Pre28
Organization and Basis of Presentation - Additional Information (Details Textual) | 3 Months Ended | |
Mar. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ (427,808,000) | $ (416,383,000) |
Cash, Cash Equivalents, and Short-term Investments | 65,463,000 | |
Restricted cash | 758,000 | $ 758,000 |
Working Capital | $ 54,881,000 | |
Sufficient capital to fund its operations | one year | |
Number of operating segment | Segment | 1 | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 736,000 | |
Capitalized Contract Cost, Amortization | $ 127,000 | |
Instruments | ||
Product Warranty Liability Period | ||
Products warranty period | 1 year | |
Reagents | ||
Product Warranty Liability Period | ||
Products warranty period | 60 days |
Net Loss per Common Share (Deta
Net Loss per Common Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded from calculation | 6,213 | 5,481 |
Employee Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded from calculation | 2,454 | 2,550 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded from calculation | 3,759 | 2,931 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Awards Activity (Details) - 2010 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, outstanding beginning of year | 2,490,465 | |
Options, exercised | (4,000) | |
Options, cancelled | (32,728) | |
Options, outstanding at end of period | 2,453,737 | |
Options, vested and expected to vest | 2,444,714 | |
Options, exercisable | 2,314,735 | |
Options, outstanding beginning of year, weighted average exercise price | $ 9.59 | |
Options, exercised in period, weighted average exercise price | 4.24 | |
Options, cancelled in period, weighted average exercise price | 11.48 | |
Options, outstanding at ending of period, weighted average exercise price | 9.58 | |
Options, vested and expected to vest, weighted average exercise price | 9.57 | |
Options, exercisable, weighted average exercise price | $ 9.38 | |
Options, exercisable, weighted average contractual term | 4 years 9 months 29 days | |
Options, exercisable, aggregate intrinsic value | $ 507 | |
Options, outstanding, weighted average contractual term | 4 years 11 months 8 days | |
Options, outstanding, aggregate intrinsic value | $ 509 | |
Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity award other than options, vested in period fair value | $ 0 | $ 2 |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity award other than options, unvested beginning of year | 2,073,440 | |
Equity award other than options, granted | 1,548,350 | |
Equity award other than options, vested | (342,381) | |
Equity award other than options, cancelled | (74,617) | |
Equity award other than options, unvested end of period | 3,204,792 | |
Equity award other than options, unvested beginning of year, weighted average grant date fair value | $ 9.14 | |
Equity award other than options, granted, weighted average grant date fair value | 4.27 | |
Equity award other than options, vested, weighted average grant date fair value | 9.77 | |
Equity award other than options, cancelled, weighted average grant date fair value | 9.86 | |
Equity award other than options, unvested end of period, weighted average grant date fair value | $ 6.70 | |
Equity award other than options, vested in period fair value | $ 1,523 | $ 1,920 |
Nonvested awards, compensation cost not yet recognized | $ 15,120 | |
Nonvested awards, compensation cost not yet recognized, weighted average period for recognition | 2 years 11 months 9 days | |
Market Share Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity award other than options, unvested beginning of year | 233,743 | |
Equity award other than options, granted | 320,000 | |
Equity award other than options, unvested end of period | 553,743 | |
Equity award other than options, unvested beginning of year, weighted average grant date fair value | $ 10.88 | |
Equity award other than options, granted, weighted average grant date fair value | 7.19 | $ 13.82 |
Equity award other than options, unvested end of period, weighted average grant date fair value | $ 8.75 | |
Nonvested awards, compensation cost not yet recognized | $ 2,310 | |
Nonvested awards, compensation cost not yet recognized, weighted average period for recognition | 2 years 11 days |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) - 2010 Equity Incentive Plan - Market Share Unit - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value assumptions, expected volatility rate | 64.80% | 53.80% |
Fair value assumptions, risk free interest rate | 2.40% | 1.50% |
Fair value assumptions, expected dividend rate | 0.00% | 0.00% |
Equity award other than options, granted, weighted average grant date fair value | $ 7.19 | $ 13.82 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation | $ 2,724 | $ 2,808 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 0 | 0 |
Allocation of recognized period costs, capitalized amount | 0 | 0 |
Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated Share-based Compensation Expense | 187 | 143 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated Share-based Compensation Expense | 645 | 674 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated Share-based Compensation Expense | 627 | 674 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated Share-based Compensation Expense | $ 1,265 | $ 1,317 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | May 22, 2013 | |
2010 Equity Incentive Plan | Employee Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award Vesting Period | 4 years | |
Expiration Period | 10 years | |
2010 Equity Incentive Plan | Restricted Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award Vesting Period | 4 years | |
2010 Equity Incentive Plan | Restricted Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award Vesting Period | 1 year | |
2010 Equity Incentive Plan | Market Share Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum MSU Payout Percentage | 200.00% | |
2013 Employee Stock Purchase Plan | Employee Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 650,000 | |
Number of shares available for grant | 93,116 | |
Discount from market price, offering date | 85.00% | |
Maximum number of shares per employee | 1,500 | |
Payroll deductions as a percentage of employee compensation, maximum | 10.00% | |
2013 Employee Stock Purchase Plan | Employee Stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Offering Period | 27 months | |
2013 Employee Stock Purchase Plan | Employee Stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Offering Period | 6 months | |
2013 Employee Stock Purchase Plan Amended and Restated | Employee Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 1,750,000 |
Condensed Consolidated Financ34
Condensed Consolidated Financial Statement Details - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory, Net [Abstract] | ||
Raw materials | $ 3,225 | $ 4,534 |
Work-in-process | 3,012 | 3,638 |
Finished goods | 4,215 | 2,777 |
Inventory, Net | $ 10,452 | $ 10,949 |
Condensed Consolidated Financ35
Condensed Consolidated Financial Statement Details - Property and equipment, net (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment | ||
Property and equipment–at cost: | $ 40,222 | $ 39,537 |
Less accumulated depreciation | (18,341) | (16,956) |
Property and equipment, net | 21,881 | 22,581 |
Machinery and Equipment | ||
Property, Plant and Equipment | ||
Property and equipment–at cost: | 14,061 | 13,762 |
Instruments | ||
Property, Plant and Equipment | ||
Property and equipment–at cost: | 13,676 | 13,347 |
Office Equipment | ||
Property, Plant and Equipment | ||
Property and equipment–at cost: | 2,005 | 1,948 |
Leasehold Improvements | ||
Property, Plant and Equipment | ||
Property and equipment–at cost: | $ 10,480 | $ 10,480 |
Condensed Consolidated Financ36
Condensed Consolidated Financial Statement Details - Product Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Product Warranty Liability | ||
Beginning accrued warranty balance | $ 470 | $ 219 |
Warranty expenses incurred | (516) | (312) |
Provisions | 464 | 397 |
Ending accrued warranty balance | $ 418 | $ 304 |
Intangible Assets, net - Compon
Intangible Assets, net - Components of gross and net intangible asset balances (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets | |||
Net Carrying Amount | $ 2,475 | ||
Amortization expense for intangible assets | $ 149 | $ 124 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years 2 months 6 days | ||
Licensed Intellectual Property | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | $ 4,750 | $ 4,750 | |
Accumulated Amortization | (2,275) | 2,126 | |
Net Carrying Amount | $ 2,475 | $ 2,624 |
Intangible Assets, net - Future
Intangible Assets, net - Future amortization expense (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Summary of estimated future amortization expense | |
Remaining in 2018 | $ 445 |
2,019 | 593 |
2,020 | 593 |
2,021 | 593 |
2,022 | 251 |
Net carrying amount | $ 2,475 |
Marketable Securities - Gross u
Marketable Securities - Gross unrealized gains/losses (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Marketable securities | ||
Amortized Cost | $ 35,209 | $ 45,266 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (24) | (30) |
Fair Value | 35,185 | 45,236 |
Corporate notes and bonds | ||
Marketable securities | ||
Amortized Cost | 18,358 | 26,303 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (19) | (25) |
Fair Value | 18,339 | 26,278 |
U.S. government and agency securities | ||
Marketable securities | ||
Amortized Cost | 7,994 | 11,981 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (5) | (5) |
Fair Value | 7,989 | 11,976 |
Commercial paper | ||
Marketable securities | ||
Amortized Cost | 8,857 | 6,982 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 8,857 | $ 6,982 |
Marketable Securities - Contrac
Marketable Securities - Contractual maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 35,209 | $ 45,266 |
Fair Value | 35,185 | $ 45,236 |
Due in one year or less | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 35,209 | |
Fair Value | $ 35,185 |
Fair Value of Financial Instr41
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair value, assets measured on recurring basis | ||
Financial instruments, fair value | $ 45,239 | $ 53,096 |
Level 1 | ||
Fair value, assets measured on recurring basis | ||
Financial instruments, fair value | 10,054 | 6,362 |
Level 2 | ||
Fair value, assets measured on recurring basis | ||
Financial instruments, fair value | 35,185 | 46,734 |
Level 3 | ||
Fair value, assets measured on recurring basis | ||
Financial instruments, fair value | 0 | 0 |
Money market funds | ||
Fair value, assets measured on recurring basis | ||
Cash equivalents | 10,054 | 6,362 |
Money market funds | Level 1 | ||
Fair value, assets measured on recurring basis | ||
Cash equivalents | 10,054 | 6,362 |
Money market funds | Level 2 | ||
Fair value, assets measured on recurring basis | ||
Cash equivalents | 0 | 0 |
Money market funds | Level 3 | ||
Fair value, assets measured on recurring basis | ||
Cash equivalents | 0 | 0 |
Corporate notes and bonds | ||
Fair value, assets measured on recurring basis | ||
Cash equivalents | 1,498 | |
Marketable securities | 18,339 | 26,278 |
Corporate notes and bonds | Level 1 | ||
Fair value, assets measured on recurring basis | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
Corporate notes and bonds | Level 2 | ||
Fair value, assets measured on recurring basis | ||
Cash equivalents | 1,498 | |
Marketable securities | 18,339 | 26,278 |
Corporate notes and bonds | Level 3 | ||
Fair value, assets measured on recurring basis | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
U.S. government and agency securities | ||
Fair value, assets measured on recurring basis | ||
Marketable securities | 7,989 | 11,976 |
U.S. government and agency securities | Level 1 | ||
Fair value, assets measured on recurring basis | ||
Marketable securities | 0 | 0 |
U.S. government and agency securities | Level 2 | ||
Fair value, assets measured on recurring basis | ||
Marketable securities | 7,989 | 11,976 |
U.S. government and agency securities | Level 3 | ||
Fair value, assets measured on recurring basis | ||
Marketable securities | 0 | 0 |
Commercial paper | ||
Fair value, assets measured on recurring basis | ||
Marketable securities | 8,857 | 6,982 |
Commercial paper | Level 1 | ||
Fair value, assets measured on recurring basis | ||
Marketable securities | 0 | 0 |
Commercial paper | Level 2 | ||
Fair value, assets measured on recurring basis | ||
Marketable securities | 8,857 | 6,982 |
Commercial paper | Level 3 | ||
Fair value, assets measured on recurring basis | ||
Marketable securities | $ 0 | $ 0 |
Loan Payable - Schedule (Detail
Loan Payable - Schedule (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Long-term Debt, Current Maturities | $ (13,428,000) | $ (7,927,000) | |
Long-term Debt, Excluding Current Maturities | 14,868,000 | 20,099,000 | |
Amortization of Debt Discount (Premium) | $ 290,000 | $ 151,000 | |
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. | ||
Restricted cash | $ 758,000 | 758,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | ||
Line of Credit Facility, Interest Rate Description | 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% | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Letters of Credit Outstanding, Amount | $ 758,000 | ||
Term Loans | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 35,000,000 | ||
Loans Payable, Final Fee Obligation | 2,429,000 | 2,429,000 | |
Debt Instrument, Unamortized Discount (Premium), Net | (1,371,000) | (1,641,000) | |
Long-term Debt | 28,296,000 | 28,026,000 | |
Long-term Debt, Current Maturities | (13,428,000) | (7,927,000) | |
Long-term Debt, Excluding Current Maturities | $ 14,868,000 | 20,099,000 | |
Term Loans | Minimum | |||
Debt Instrument [Line Items] | |||
Debt Interest only Period End | Aug. 1, 2018 | ||
Debt Instrument, Maturity Date | Oct. 12, 2019 | ||
Term Loans | Maximum | |||
Debt Instrument [Line Items] | |||
Debt Interest only Period End | Jan. 1, 2019 | ||
Debt Instrument, Maturity Date | Mar. 12, 2020 | ||
Term Loan A | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 10,000,000 | ||
Loans Payable | $ 7,619,000 | 7,619,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.90% | ||
Term Loan B | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 10,000,000 | ||
Loans Payable | $ 7,619,000 | 7,619,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.90% | ||
Term Loan C | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 15,000,000 | ||
Loans Payable | $ 12,000,000 | $ 12,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.40% |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Schedule of future minimum lease payments | |
Remaining in 2018 | $ 1,421 |
2,019 | 1,989 |
2,020 | 1,997 |
2,021 | 1,372 |
2,022 | 771 |
Thereafter | 595 |
Total future minimum payments | $ 8,145 |
Leases - Additional information
Leases - Additional information (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Rent and operating expenses | $ 427,000 | $ 409,000 | |
Deferred Rent Credit | $ 3,524,000 | $ 3,652,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ (20,000) | $ (1,000) |