Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 27, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | GenMark Diagnostics, Inc. | ||
Entity Central Index Key | 0001487371 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Common Stock, Shares Outstanding | 60,775,873 | ||
Entity Public Float | $ 348,230,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 44,360,000 | $ 36,286,000 |
Short-term marketable securities | 9,100,000 | 8,882,000 |
Accounts receivable, net of allowances of $376 and $75, respectively | 16,759,000 | 11,534,000 |
Inventories | 11,301,000 | 10,244,000 |
Prepaid expenses and other current assets | 1,877,000 | 1,483,000 |
Total current assets | 83,397,000 | 68,429,000 |
Property and equipment, net | 20,419,000 | 21,070,000 |
Intangible assets, net | 1,432,000 | 2,023,000 |
Restricted Cash | 758,000 | 758,000 |
Operating Lease, Right-of-Use Asset | 4,642,000 | 0 |
Other long-term assets | 825,000 | 701,000 |
Total assets | 111,473,000 | 92,981,000 |
Current liabilities | ||
Accounts payable | 12,249,000 | 9,886,000 |
Accrued compensation | 7,493,000 | 7,358,000 |
Operating Lease, Liability, Current | 1,842,000 | 0 |
Current portion of long-term debt | 0 | 0 |
Other current liabilities | 2,732,000 | 3,043,000 |
Total current liabilities | 24,316,000 | 20,287,000 |
Long-term liabilities | ||
Deferred rent | 0 | 2,996,000 |
Long-term debt | 69,145,000 | 36,042,000 |
Operating Lease, Liability, Noncurrent | 5,796,000 | 0 |
Other noncurrent liabilities | 53,000 | 109,000 |
Total liabilities | 99,310,000 | 59,434,000 |
Commitments and contingencies - See Note 7 | ||
Stockholders' equity | ||
Preferred stock, $0.0001 par value; 5,000 authorized, none issued | 0 | 0 |
Common stock, $0.0001 par value; 100,000 authorized; 60,255 and 56,240 shares issued and outstanding as of December 31, 2019 and 2018, respectively | 6,000 | 6,000 |
Additional paid-in capital | 526,294,000 | 500,344,000 |
Accumulated deficit | (514,233,000) | (466,883,000) |
Accumulated other comprehensive income | 96,000 | 80,000 |
Total stockholders’ equity | 12,163,000 | 33,547,000 |
Total liabilities and stockholders’ equity | $ 111,473,000 | $ 92,981,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable - net of allowance | $ 376 | $ 75 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 60,255,000 | 56,240,000 |
Common stock, outstanding | 60,255,000 | 56,240,000 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 87,491 | $ 70,481 | $ 52,260 |
Revenue | |||
License and other revenue | 530 | 278 | 259 |
Total revenue | 88,021 | 70,759 | 52,519 |
Cost of revenue | 59,418 | 51,278 | 32,514 |
Gross profit | 28,603 | 19,481 | 20,005 |
Operating expenses: | |||
Sales and marketing | 24,118 | 21,777 | 20,557 |
General and administrative | 19,159 | 17,545 | 16,205 |
Research and development | 27,140 | 27,931 | 42,760 |
Total operating expenses | 70,417 | 67,253 | 79,522 |
Loss from operations | (41,814) | (47,772) | (59,517) |
Other income (expense): | |||
Interest income | 512 | 711 | 561 |
Interest expense | (5,961) | (3,108) | (3,042) |
Other (expense) income | (23) | (192) | 249 |
Total other expense | (5,472) | (2,589) | (2,232) |
Loss before provision for income taxes | (47,286) | (50,361) | (61,749) |
Income tax expense | 64 | 139 | 101 |
Net loss | $ (47,350) | $ (50,500) | $ (61,850) |
Net loss per share, basic and diluted | $ (0.82) | $ (0.91) | $ (1.21) |
Weighted average number of shares outstanding | 57,603 | 55,669 | 51,169 |
Other comprehensive loss | |||
Net loss | $ (47,350) | $ (50,500) | $ (61,850) |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 11 | 44 | |
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | 11 | 44 | (84) |
Net unrealized gains (losses) on marketable securities, net of tax | 5 | 27 | (2) |
Other Comprehensive Income (Loss), Net of Tax | 16 | 71 | (86) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (47,334) | (50,429) | (61,936) |
AOCI Attributable to Parent [Member] | |||
Other comprehensive loss | |||
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | 11 | 44 | (84) |
Net unrealized gains (losses) on marketable securities, net of tax | $ 5 | $ 27 | $ (2) |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional paid-in capital | Accumulated other comprehensive loss | Accumulated deficit |
Beginning balance at Dec. 31, 2016 | $ 38,151 | $ 4 | $ 393,322 | $ 95 | $ (355,270) |
Beginning Balance, Shares at Dec. 31, 2016 | 46,554 | ||||
Stock-based compensation expense | 12,170 | 12,170 | |||
Employee stock purchase plans, purchases | 1,016 | 1,016 | |||
Employee stock purchase plans, shares | 175 | ||||
Restricted stock awards issued, net of cancellations | 0 | 0 | |||
Restricted stock awards issued, net of cancellations, Shares | 955 | ||||
Shares issued under stock-based compensation plans, net of cancellations | 287 | 287 | |||
Shares issued under stock-based compensation plans, net of cancellations, Shares | 42 | ||||
Issuance of common stock, net of offering expenses | 80,732 | $ 2 | 80,730 | ||
Issuance of common stock, net of offering expenses, Shares | 7,340 | ||||
Net loss | (61,850) | (61,850) | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 737 | 737 | |||
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | (84) | (84) | |||
Net unrealized gains (losses) on marketable securities, net of tax | (2) | (2) | |||
Ending Balance at Dec. 31, 2017 | 71,157 | $ 6 | 487,525 | 9 | (416,383) |
Ending Balance, Shares at Dec. 31, 2017 | 55,066 | ||||
Stock-based compensation expense | 11,697 | 11,697 | |||
Employee stock purchase plans, purchases | 1,061 | 1,061 | |||
Employee stock purchase plans, shares | 253 | ||||
Restricted stock awards issued, net of cancellations | 0 | 0 | |||
Restricted stock awards issued, net of cancellations, Shares | 916 | ||||
Shares issued under stock-based compensation plans, net of cancellations | 21 | 21 | |||
Shares issued under stock-based compensation plans, net of cancellations, Shares | 5 | ||||
Net loss | (50,500) | (50,500) | |||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 40 | 40 | |||
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | 44 | 44 | |||
Net unrealized gains (losses) on marketable securities, net of tax | 27 | 27 | |||
Ending Balance at Dec. 31, 2018 | 33,547 | $ 6 | 500,344 | 80 | (466,883) |
Ending Balance, Shares at Dec. 31, 2018 | 56,240 | ||||
Stock-based compensation expense | 12,046 | 12,046 | |||
Employee stock purchase plans, purchases | 962 | 962 | |||
Employee stock purchase plans, shares | 210 | ||||
Restricted stock awards issued, net of cancellations | 0 | 0 | |||
Restricted stock awards issued, net of cancellations, Shares | 1,461 | ||||
Shares issued under stock-based compensation plans, net of cancellations | 457 | 457 | |||
Shares issued under stock-based compensation plans, net of cancellations, Shares | 81 | ||||
Issuance of common stock, net of offering expenses | 12,485 | 12,485 | |||
Issuance of common stock, net of offering expenses, Shares | 2,263 | ||||
Net loss | (47,350) | (47,350) | |||
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | 11 | 11 | |||
Net unrealized gains (losses) on marketable securities, net of tax | 5 | 5 | |||
Ending Balance at Dec. 31, 2019 | $ 12,163 | $ 6 | $ 526,294 | $ 96 | $ (514,233) |
Ending Balance, Shares at Dec. 31, 2019 | 60,255 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Cash Flows [Abstract] | |||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 3,946,000 | $ 2,028,000 | $ 1,643,000 |
Cash flows from operating activities | |||
Net loss | (47,350,000) | (50,500,000) | (61,850,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 7,268,000 | 7,088,000 | 5,317,000 |
Net accretion of premiums/discounts on investments | (133,000) | (142,000) | (39,000) |
Net accretion of premiums/discounts on investments | 1,740,000 | 938,000 | 1,132,000 |
Stock-based compensation | 12,046,000 | 11,697,000 | 12,170,000 |
Provision for Doubtful Accounts | 338,000 | 23,000 | 14,000 |
Non-cash inventory adjustments | 2,631,000 | 1,426,000 | 1,323,000 |
Other non-cash adjustments | 537,000 | 15,000 | (224,000) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (5,584,000) | (878,000) | (1,555,000) |
Inventories | (6,534,000) | (2,414,000) | (10,512,000) |
Prepaid expenses and other assets | (750,000) | 854,000 | (599,000) |
Accounts payable | 1,501,000 | (1,389,000) | 2,557,000 |
Accrued compensation | (885,000) | 1,059,000 | (263,000) |
Other current and non-current liabilities | 249,000 | (289,000) | (893,000) |
Net cash used in operating activities | (34,926,000) | (32,512,000) | (53,422,000) |
Investing activities: | |||
Payments for intellectual property licenses | 0 | 0 | (500,000) |
Purchases of property and equipment | (2,092,000) | (2,575,000) | (4,815,000) |
Purchases of marketable securities | (32,135,000) | (29,778,000) | (70,989,000) |
Proceeds from sales of marketable securities | 0 | 0 | 13,896,000 |
Maturities of marketable securities | 32,055,000 | 66,300,000 | 37,500,000 |
Net cash (used in) provided by investing activities | (2,172,000) | 33,947,000 | (24,908,000) |
Financing activities: | |||
Proceeds from issuance of common stock | 14,021,000 | 1,061,000 | 87,267,000 |
Costs incurred in conjunction with public offering | (574,000) | 0 | (5,469,000) |
Principal repayment of borrowings | 35,093,000 | 92,000 | 7,848,000 |
Proceeds from borrowings | 70,000,000 | 7,098,000 | 15,000,000 |
Costs associated with debt issuance | (3,638,000) | (20,000) | (187,000) |
Proceeds from stock option exercises | 457,000 | 22,000 | 287,000 |
Net cash provided by financing activities | 45,173,000 | 8,069,000 | 89,050,000 |
Effect of exchange rate changes on cash | (1,000) | 28,000 | 75,000 |
Net increase in cash and cash equivalents | 8,074,000 | 9,532,000 | 10,795,000 |
Cash and cash equivalents at beginning of year | 37,044,000 | 27,512,000 | 16,717,000 |
Cash and cash equivalents at end of year | 45,118,000 | 37,044,000 | 27,512,000 |
Non-cash investing and financing activities: | |||
Transfer of systems from inventory to property and equipment | 2,846,000 | 1,689,000 | 4,885,000 |
Property and equipment costs incurred but not paid included in accounts payable | 1,234,000 | 372,000 | 227,000 |
Supplemental cash flow information: | |||
Cash paid for income taxes, net | $ 155,000 | $ 165,000 | $ 61,000 |
Organization and Basis of Prese
Organization and Basis of Presentation (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and basis of presentation | Organization and basis of presentation Organization GenMark Diagnostics, Inc., the Company or GenMark, was formed by Osmetech plc, or Osmetech, as a Delaware corporation in February 2010, and had no operations prior to its initial public offering, or the IPO, which was completed in June 2010. Immediately prior to the closing of the IPO, GenMark acquired all of the outstanding ordinary shares of Osmetech in a reorganization, accounted for in a manner similar to a pooling-of-interests, under the applicable laws of the United Kingdom. As a result of the reorganization, all of the issued ordinary shares in Osmetech were cancelled in consideration of (i) the issuance of common stock of GenMark to the former shareholders of Osmetech and (ii) the issuance of new shares in Osmetech to GenMark. Following the reorganization, Osmetech became a subsidiary controlled by GenMark, and the former shareholders of Osmetech received shares of GenMark. Any historical discussion of GenMark relates to Osmetech and its consolidated subsidiaries prior to the reorganization. In September 2012, GenMark placed Osmetech into liquidation to simplify its corporate structure. The liquidation of Osmetech was completed in the fourth quarter of 2013. The Company is a leading provider of multiplex molecular diagnostic solutions designed to enhance patient care, improve key quality metrics, and reduce the total cost-of-care. The Company offers a sample-to-answer ePlex instrument and associated molecular diagnostic panels. The Company's products also include the XT-8 instrument and related diagnostic and research tests, as well as certain custom manufactured reagents, collectively referred to as the XT-8 system. The Company sells its products directly to customers in the U.S. and internationally primarily via a network of distribution partners. Basis of Presentation and Principles of Consolidation The accompanying 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. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying consolidated financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net losses from operations since its inception and has an accumulated deficit of $514,233,000 at December 31, 2019 . Management expects operating losses to continue through the foreseeable future. The Company's ability to transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support its cost structure through expanding its product offerings and consequently increasing its product revenues. Cash, cash equivalents, and marketable securities at December 31, 2019 totaled $53,460,000 . The Company has prepared cash flow forecasts which indicate, based on the Company’s current cash resources available, that the Company will have sufficient resources to fund its business for at least the next 12 months from the date of this filing. Segment Reporting The Company currently operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is the chief executive officer, in deciding how to allocate resources and assessing performance. The Company’s business operates in one operating segment because the Company’s chief operating decision maker evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. Use of Estimates The preparation of these 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. In June 2019, the Company changed its estimate of the forfeiture rate used to determine stock-based compensation expense based upon recent employment history. The change in forfeiture rate resulted in an additional $174,000 in stock-based compensation expense. |
Summary of significant accounti
Summary of significant accounting policies (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies and Significant Accounts Cash and Cash Equivalents and Marketable Securities Cash and cash equivalents consist of cash on deposit with banks, money market instruments, and certificates of deposit with original maturities of three months or less at the date of purchase. Marketable securities consist of certificates of deposits that mature in greater than three months . Marketable securities are accounted for as "available-for-sale" with the carrying amounts reported in the balance sheets stated at cost, which approximates their fair market value, with unrealized gains and losses, if any, reported as a separate component of stockholders' equity and included in comprehensive loss. Restricted Cash Restricted cash represents amounts designated for uses other than current operations and includes $758,000 as of December 31, 2019 held as security for the Company’s letter of credit with Banc of California. The following table shows a reconciliation of the Company's cash and cash equivalents in the consolidated balance sheet to cash, cash equivalents, and restricted cash in the consolidated statement of cash flows as of December 31, 2019 and 2018 : December 31, 2019 2018 2017 Cash and cash equivalents $ 44,360 $ 36,286 $ 26,754 Restricted cash 758 758 758 Total cash, cash equivalents, and restricted cash 45,118 37,044 27,512 Fair Value of Financial Instruments The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of financial instruments such as accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued liabilities approximate the related fair values due to the short-term maturities of these instruments. Receivables Accounts receivable consist of amounts due to the Company for sales to customers and are recorded net of an allowance for doubtful accounts. The allowance for doubtful accounts is determined based on an assessment of the collectability of specific customer accounts, the aging of accounts receivable, and a reserve for unknown items based upon the Company’s historical experience. The allowance for doubtful accounts as of December 31, 2019 and 2018 , comprised the following (in thousands): Allowance for doubtful accounts Balance at December 31, 2017 $ 2,754 Provision for doubtful accounts 23 Write off of uncollectible accounts (2,702 ) Balance at December 31, 2018 $ 75 Provision for doubtful accounts 338 Write off of uncollectible accounts (37 ) Balance at December 31, 2019 $ 376 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: Plant and Machinery 3 – 5 years Instruments 4 – 5 years Office equipment 3 – 7 years Leasehold improvements over the shorter of the remaining life of the lease or the useful economic life of the asset Property and equipment includes diagnostic instruments used for sales demonstrations or placed with customers under several types of arrangements, including performance evaluation programs, or PEPs, and reagent rental agreements. Instruments are placed with customers under PEPs for limited evaluation periods. Instruments are also placed with customers under reagent rental agreements, which generally require customers to purchase a minimum number of test cartridges over the term of the agreement. The Company retains title to the instrument under these arrangements. Maintenance and repair costs are expensed as incurred. Leased property meeting certain finance lease criteria is capitalized, and the net present value of the related lease payments is recorded as a liability. Amortization for assets noted as finance leases is recorded using the straight-line method over the shorter of the estimated useful lives or the lease terms. Intangible Assets Intangible assets are comprised of licenses or sublicenses to technology covered by patents owned by third parties, and are amortized on a straight-line basis over the expected useful lives of these assets, which is generally 10 years. Amortization of licenses typically begins upon the Company obtaining access to the licensed technology and is recorded in cost of revenues for licenses supporting commercialized products. The amortization of licenses to technology supporting products in development is recorded in research and development expense. Impairment of Long-Lived Assets The Company assesses the recoverability of long-lived assets, including intangible assets, by periodically evaluating the carrying value whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If impairment is indicated, the Company writes down the carrying value of the asset to its estimated fair value. This fair value is primarily determined based on estimated discounted cash flows. The Company did not recognize any impairment charges during the years ended December 31, 2019 , 2018 , and 2017 . Revenue Recognition The Company recognizes revenue from operations through the sale of products and other services. Product revenue is comprised of the sale of consumables 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 generally recognized 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 and marketing expenses when incurred or amortized over the estimated contract term when resulting from new contract acquisition efforts. The Company allocates the 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 determinations based on similar product sales data. The following table presents disaggregated revenue by source (in thousands): Year ended December 31, 2019 2018 2017 ePlex product revenue $ 60,268 $ 37,901 $ 10,172 XT-8 product revenue 27,223 32,580 42,088 Total product revenue 87,491 70,481 52,260 License and other revenue 530 278 259 Total revenue $ 88,021 $ 70,759 $ 52,519 In the years ended December 31, 2019 , 2018 and 2017 , Laboratory Corporation of America, Inc. represented 14% , 16% , and 20% , respectively, of the Company's total revenue. The Company incurs incremental costs to obtain customer contracts, including commissions and bonuses. The Company capitalizes the incremental costs to obtain customer contracts, which are amortized using the straight-line method over the contract term. The Company reported capitalized contract acquisition costs of $1,340,000 and $1,055,000 as of December 31, 2019 and 2018 and amortization expense of $733,000 and $567,000 for the years ended December 31, 2019 and 2018 , respectively. Product Warranties The Company generally offers a one -year warranty for its instruments sold to customers and up to a sixty -day warranty for consumables and provides for the estimated cost of the product warranty at the time the system sale is recognized. Factors that affect the Company’s warranty reserves include the number of units sold, historical and anticipated rates of warranty repairs, and the cost per warranty repair. The Company periodically assesses and if necessary adjusts the adequacy of the warranty reserve. Product warranty reserve activity for the most recent three years is as follows (in thousands): Year ended December 31, 2019 2018 2017 Beginning balance $ 330 $ 470 $ 219 Warranty expenses incurred (1,326 ) (1,495 ) (1,160 ) Provisions 1,275 1,355 1,411 Ending balance $ 279 $ 330 $ 470 Research and Development Costs The Company expenses all research and development costs in the periods in which they are incurred unless there is alternative future use that supports the capitalization of an asset. Income Taxes Current income tax expense is the amount of income taxes expected to be payable for the current year. A deferred income tax liability or asset is established for the expected future tax consequences resulting from the differences in financial reporting and tax bases of assets and liabilities. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized. A full valuation allowance has been recorded against the Company’s net deferred tax assets due to the uncertainty surrounding the Company’s ability to utilize these assets in the future. The Company provides for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement standards prescribed by the authoritative guidance on income taxes. Amounts for uncertain tax positions are adjusted in periods when new information becomes available or when positions are effectively settled. The Company recognizes accrued interest related to uncertain tax positions as a component of income tax expense. A tax position that is more likely than not to be realized is measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with the taxing authority that has full knowledge of all relevant information. Measurement of a tax position that meets the more likely than not threshold considers the amounts and probabilities of the outcomes that could be realized upon settlement using the facts, circumstances, and information available at the reporting date. Stock-Based Compensation The Company recognizes stock-based compensation expense related to stock options, shares purchased under the Company's 2013 Employee Stock Purchase Plan, or ESPP, restricted stock units, and market-based stock units granted to employees, non-employees, and directors in exchange for services. The compensation expense is based on the fair value of the applicable award utilizing various assumptions regarding the underlying attributes of the award. The stock-based compensation expense is recorded in cost of revenues, sales and marketing, research and development, and/or general and administrative expenses based on the employee's respective function. The estimated fair value of stock granted, net of forfeitures expected to occur during the vesting period, is amortized as compensation expense that approximates straight-line expense to reflect vesting as it occurs. The stock option expense is derived from the Black-Scholes option pricing model that uses several judgment-based variables to calculate the expense. The market-based stock expense is derived from the Monte Carlo Simulation Valuation. The inputs utilized in the valuation of the stock-based awards include the following factors: • Expected Term. Expected term represents the period that the stock-based awards are expected to be outstanding and is determined by using the simplified method. • Expected Volatility . Expected volatility represents the expected volatility in the Company’s stock price over the expected term of the option or market-based award and is determined by review of the Company’s and similar companies’ historical experience. • Expected Dividend . The valuation methods requires a single expected dividend yield as an input. The Company assumed no dividends as it has never paid dividends and has no current plans to do so. • Risk-Free Interest Rate. The risk-free interest rate is based on published U.S. Treasury rates in effect at the time of grant for periods corresponding with the expected term of the option or market-based award. The compensation expense related to the grant of restricted stock awards or units is calculated as the fair market value of the stock on the grant date as further adjusted to reflect expected forfeitures. Foreign Currency Translation The Company translates the assets and liabilities of the Company's entities outside the U.S. into U.S. Dollars based on the foreign currency exchange rates at the end of each period. Gains or losses resulting from these foreign currency translations are recorded in accumulated comprehensive loss in the consolidated statement of stockholders' equity. Foreign currency translation impacts recorded in accumulated other comprehensive loss (income) for the years ended December 31, 2019 , 2018 , and 2017 were $11,000 , $44,000 , and $(84,000) , respectively. Revenue and expenses are translated at weighted average exchange rates during the applicable period. Transactions in foreign currencies were recognized using the rate of exchange prevailing at the date of the transaction. Foreign exchange gains (losses), which are included in the accompanying consolidated statements of operations, totaled $(25,000) , $(196,000) , and $225,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively, and relate primarily to transactions denominated in Euros. Net Loss per Common Share Basic net loss per share is calculated by dividing loss available to stockholders of 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 calculations of diluted net loss per share for the years ended December 31, 2019 , 2018 and 2017 did not include the effects of the following stock options or other unvested equity awards which were outstanding as of the end of each year because the inclusion of these securities would have been anti-dilutive (in thousands). Year Ended December 31, 2019 2018 2017 Options outstanding to purchase common stock 2,037 2,440 2,490 Other unvested equity awards 3,124 2,994 2,307 Total 5,161 5,434 4,797 Concentration of Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investment securities, and accounts receivable. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. The Company has established guidelines to diversify its cash and investment securities and their maturities that are intended to secure safety and liquidity. The following table summarizes customers who accounted for 10% or more of net accounts receivable: December 31, 2019 2018 Company A (1) 24 % 24 % Company B (2) 11 % (2) (1) Company A is a clinical laboratory network with worldwide operations. (2) Company B is an integrated delivery network with domestic operations. Company B's outstanding accounts receivable was below 10% of the Company's net accounts receivable at December 31, 2018. Comprehensive Loss The Company has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The Company’s comprehensive loss comprises net losses, unrealized gains and losses on available for sale securities, and foreign currency translation. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies that the Company adopts as of the specified effective date. In February 2016, the FASB issued ASU 2016-02, Leases, which outlines a comprehensive lease accounting model and supersedes the prior lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use, or ROU, assets for all leases with lease terms of greater than 12 months. The guidance 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 is effective for annual periods beginning after December 15, 2018. The Company adopted the new standard in the first quarter of 2019 using the package of transition practical expedients. The Company recognized non-current ROU assets of $5,097,000 and current and non-current lease liabilities of $1,780,000 and $6,832,000 , respectively, upon adoption. Deferred rent is now presented as an offset to the Company's non-current operating lease ROU assets. The new lease standard did not have a material impact on the Company's consolidated statements of comprehensive loss, cash flows, or stockholders' equity. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments , which introduces a new methodology for recognizing credit losses on financial instruments. The new standard requires entities to measure financial instruments at their amortized cost basis, net of an allowance for credit losses. The allowance for credit losses must reflect an entity's current estimate of all expected credit losses. The new guidance also requires entities to present credit losses on debt securities accounted for under the available-for-sale method as an allowance rather than a write down. The new guidance must be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period presented and is effective for fiscal years beginning after December 15, 2019. The Company will adopt ASU 2016-13 during the first quarter of 2020. The adoption of the new guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Intangible Assets, net
Intangible Assets, net | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net | Intangible Assets, net Intangible assets as of December 31, 2019 and 2018 comprised the following (in thousands): December 31, 2019 December 31, 2018 Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Licensed intellectual property $ 4,750 $ (3,318 ) $ 1,432 $ 4,750 $ (2,727 ) $ 2,023 In July 2012, the Company entered into a development collaboration and license agreement with Advanced Liquid Logic, Inc., or ALL, which was acquired by Illumina, Inc. in July 2013. Under the terms of the agreement, the Company established a collaborative program to develop in-vitro diagnostic products incorporating ALL’s proprietary electrowetting technology in conjunction with the Company’s electrochemical detection technology. The Company paid ALL an upfront license payment of $250,000 and agreed to pay up to $1,750,000 in potential additional milestone payments. In June 2017, the Company satisfied the final commercial milestone under this agreement requiring the payment of $500,000 , which was recorded as licensed intellectual property. Intellectual property licenses had a weighted average remaining amortization period of 2.44 years as of December 31, 2019 . Amortization expense for intangible assets amounted to $591,000 , $601,000 , and $546,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Estimated future amortization expense for these licenses is as follows (in thousands): Years Ending December 31, Future Amortization Expense 2020 $ 591 2021 591 2022 250 Total $ 1,432 |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity On August 5, 2019, the Company entered into an Equity Distribution Agreement, or the Distribution Agreement, with Canaccord Genuity LLC, or Canaccord, pursuant to which the Company may offer and sell, from time to time, shares of the Company’s common stock having an aggregate offering price of up to $35,000,000 . Under the Distribution Agreement, Canaccord may sell shares by any method deemed to be an “at-the-market” offering as defined in Rule 415 under the U.S. Securities Act of 1933, as amended, or any other method permitted by law, including in privately negotiated transactions. The Company is not obligated to sell any shares under the Distribution Agreement. Canaccord is entitled to a commission of 3% of the aggregate gross proceeds from each sale of shares occurring pursuant to the Distribution Agreement. During the year ended December 31, 2019 , the Company sold 2,263,000 shares of common stock under the Distribution Agreement at a weighted average price per share of $5.77 resulting in aggregate gross proceeds of $13,059,000 . The Company incurred $574,000 in related transaction costs, comprising commissions paid to Canaccord of $392,000 , as well as $182,000 in additional miscellaneous expenses. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock-Based Compensation In 2010, the Company adopted the 2010 Equity Incentive Plan, or the 2010 Plan, which provides for the grant of incentive and nonstatutory stock options, restricted stock, stock appreciation rights, restricted stock units, restricted stock bonuses and other stock-based awards. Employee participation in the 2010 Plan is at the discretion of the Compensation Committee of the Board of Directors of the Company. As of December 31, 2019 , there were 974,236 shares available for future grant of awards under the 2010 Plan. The Company estimates potential forfeitures of stock-based award grants and adjusts compensation cost recorded accordingly. The estimate of forfeitures is based on historical forfeiture experience and is adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of evaluation and will also impact the amount of stock-based compensation expense to be recognized in future periods. Stock Options All stock options granted under the 2010 Plan are exercisable at a price equal to the closing quoted market price of the Company’s shares on the NASDAQ Global Market on the date of grant and vest over a period of 4 years . Stock options are generally exercisable for a period up to ten years after grant and are forfeited if employment is terminated before the options vest. The following table summarizes stock option activity during the year ended December 31, 2019 : Number of shares Weighted average exercise price Outstanding at December 31, 2018 2,439,914 $ 9.57 Granted — $ — Exercised (121,383 ) $ 5.90 Canceled (281,399 ) $ 11.46 Outstanding at December 31, 2019 2,037,132 $ 9.53 Vested at December 31, 2019 2,037,132 $ 9.53 Exercisable at December 31, 2019 2,037,132 $ 9.53 No stock options were granted during the years ended December 31, 2019 and 2018 . There were 2,037,132 stock options that were outstanding and exercisable as of December 31, 2019 , which had a remaining weighted average contractual term of 3.27 years and an aggregate intrinsic value of $269,000 . As of December 31, 2019 , the Company has recognized all compensation expense related to stock options granted under the 2010 plan. The intrinsic value of stock options exercised during the years ended December 31, 2019 , 2018 and 2017 was $131,000 , $6,700 and $173,000 , respectively. Restricted Stock Units Restricted stock units may be granted at the discretion of the Compensation Committee of the Board of Directors under the 2010 Plan in connection with the hiring or retention of personnel and are subject to certain conditions. Restrictions expire after the grant date in accordance with specific provisions in the applicable award agreement. The Company’s restricted stock unit activity for the year ended December 31, 2019 was as follows: Number of shares Weighted Average Grant Date Fair Value Unvested at December 31, 2018 2,665,708 $ 6.12 Granted 1,594,151 $ 6.71 Vested (1,311,508 ) $ 6.10 Canceled (278,852 ) $ 6.78 Unvested at December 31, 2019 2,669,499 $ 6.42 As of December 31, 2019 , there was $12,488,000 of unrecognized compensation cost related to restricted stock units, which is expected to be recognized over a weighted average period of 2.46 years. The total fair value of restricted stock units that vested during the years ended December 31, 2019 , 2018 and 2017 was $8,727,000 , $5,404,000 and $7,813,000 , respectively. Market-Based Stock Units The Company issued market-based stock units in February 2019 , 2018 , and 2017 , which may result in the recipient receiving shares of stock equal to up to 200% of the target number of units granted. The vesting and issuance of Company stock subject to the market-based stock units depends on the Company's stock performance as compared to the NASDAQ Composite Index over the three -year period following the grant. As of December 31, 2019 , there was $1,815,000 of unrecognized stock-based compensation expense related to these awards, which is expected to be recognized over a weighted average period of 1.73 years. The total fair value of market-based stock units that vested during the years ended December 31, 2019 , 2018 , and 2017 was $797,000 , $645,000 , and $0 , respectively. The Company’s market-based stock unit activity for the year ended December 31, 2019 was as follows: Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2018 328,739 $ 10.03 Granted 460,000 $ 10.22 Vested (165,771 ) $ 9.16 Canceled (168,739 ) $ 13.09 Unvested at December 31, 2019 454,229 $ 9.40 The fair value of market-based stock units is 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: Years Ended December 31, 2019 2018 2017 Expected volatility 64 % 65 % 54 % Risk-free interest rate 2.50 % 2.40 % 1.50 % Expected dividend — % — % — % Weighted average fair value $ 10.22 $ 7.19 $ 13.82 Employee Stock Purchase Plan The Company's stockholders originally approved the ESPP in May 2013 at the Company's Annual Meeting of Stockholders. In May 2018, the Company's stockholders approved the amendment and restatement of the ESPP, which increased the shares authorized for issuance under the ESPP from 650,000 to 1,750,000 . The price at which stock is purchased under the ESPP is equal to 85% of the fair market value of the common stock on the first or the last day of the offering period, whichever is lower. Generally, each offering under the ESPP will be for a period of six months as determined by the Company's board of directors; provided that no offering period may exceed 27 months . Employees may invest up to 10% of their gross compensation through payroll deductions. In no event may an employee purchase more than 1,500 shares of common stock during any six-month offering period. As of December 31, 2019 , there were 730,916 shares of common stock available for issuance under the ESPP. The ESPP is a compensatory plan as defined by the authoritative guidance for stock-based compensation. As a result, stock-based compensation expense related to the ESPP has been recorded during the year ended December 31, 2019 . A summary of ESPP activity for the most recent three years is as follows (in thousands, except share and per share data): Years Ended December 31, 2019 2018 2017 Shares issued 209,577 252,623 174,723 Weighted average fair value of shares issued $ 4.59 $ 4.20 $ 5.82 Employee purchases $ 962 $ 1,061 $ 1,016 The Company uses the Black-Scholes model to estimate the fair value on the grant date for ESPP purchase rights. The assumptions used in the valuation for the years ended December 31, 2019 , 2018 and 2017 , are summarized in the following table: Years Ended December 31, 2019 2018 2017 Expected volatility 50% - 40% 73% - 54% 90% - 36% Expected life (years) 0.50 0.50 0.50 Risk free rate 2.3% - 1.6% 2.6% - 2.1% 1.5% - 0.6% Expected dividend yield — % — % — % Stock-Based Compensation Expense Recognition Stock-based compensation was recognized in the consolidated statements of comprehensive loss as follows (in thousands): Years Ended December 31, 2019 2018 2017 Cost of revenue $ 953 $ 871 $ 546 Sales and marketing 3,014 5,549 2,819 Research and development 1,744 2,470 3,039 General and administrative 6,335 2,807 5,766 Total stock-based compensation expense $ 12,046 $ 11,697 $ 12,170 No stock-based compensation was capitalized during the periods presented, and there was no unrecognized tax benefit related to stock-based compensation for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's income (loss) before provision for income taxes for the years ended December 31, 2019 , 2018 , and 2017 , respectively, was generated in the following jurisdictions (in thousands): Years Ended December 31, 2019 2018 2017 Domestic $ (47,807 ) $ (50,938 ) $ (62,495 ) Foreign 521 577 746 Total loss before income taxes $ (47,286 ) $ (50,361 ) $ (61,749 ) The components of income tax expense were as follows for the years ended December 31, 2019 , 2018 , and 2017 , respectively (in thousands): Years Ended December 31, 2019 2018 2017 Current expense U.S. Federal $ 27 $ 4 $ (1 ) State 29 43 22 Foreign 11 99 80 Total current expense 67 146 101 Deferred benefit U.S. Federal (2 ) (5 ) — State (1 ) (2 ) — Total deferred benefit (3 ) (7 ) — Provision for income taxes $ 64 $ 139 $ 101 The components of net deferred income taxes consisted of the following at December 31, 2019 and 2018 , respectively (in thousands): As of December 31, 2019 2018 Deferred income tax assets: NOL and credit carryforwards $ 84,362 $ 75,063 Compensation accruals 4,669 4,542 Accruals and reserves 764 1,401 Operating lease liability 1,906 — State tax provision 6 7 Inventory adjustments 881 1,193 Intangible assets 542 498 Other 2,031 620 Gross deferred tax assets 95,161 83,324 Less: valuation allowance (92,717 ) (81,964 ) Total deferred tax assets 2,444 1,360 Deferred income tax liabilities: Depreciation 951 1,102 Contract acquisition costs 334 258 Operating lease right-of-use assets 1,159 — Total deferred tax liabilities 2,444 1,360 Net deferred tax assets (liabilities) $ — $ — A reconciliation of income tax expense to the amount computed by applying the statutory federal income tax rate to the loss from operations is summarized for the years ended December 31, 2019 , 2018 , and 2017 , respectively, as follows: Years Ended December 31, 2019 2018 2017 U.S. Federal statutory income tax rate 21.0 % 21.0 % 34.0 % Permanent differences (0.3 )% (0.2 )% (0.2 )% State taxes 3.8 % 3.0 % 2.8 % Executive compensation limitation (0.9 )% (0.5 )% (0.5 )% Tax reform — % 0.1 % (59.0 )% Stock-based compensation (1.2 )% (2.6 )% 1.4 % Other 0.1 % 0.1 % 0.2 % Valuation allowance (22.7 )% (21.2 )% 21.1 % Total tax provision (0.2 )% (0.3 )% (0.2 )% The Company had pre-2018 federal net operating loss (NOL) carryforwards available of approximately $264,600,000 as of December 31, 2019 after consideration of limitations under Section 382 of the Internal Revenue Code, or Section 382, as further described below. The federal NOL carryforwards generated prior to 2018 will begin to expire in 2025 . The NOL generated in 2018 and 2019 of $78,190,000 will carry forward indefinitely and be available to offset up to 80% of future taxable income each year. Additionally, the Company had state NOL carryforwards available of $249,700,000 as of December 31, 2019 . The state NOLs may be used to offset future taxable income and have begun to expire. The future utilization of the Company’s NOL carryforwards to offset future taxable income may be subject to a substantial annual limitation as a result of changes in ownership by stockholders that hold 5% or more of the Company’s common stock . An assessment of such ownership changes under Section 382 was completed through December 31, 2018 . As a result of this assessment, the Company determined that it experienced multiple ownership changes through 2018 which will limit the future utilization of NOL carryforwards. The Company has reduced its deferred tax assets related to NOL carryovers that are anticipated to expire unused as a result of ownership changes. These tax attributes have been excluded from deferred tax assets with a corresponding reduction of the valuation allowance with no net effect on income tax expense or the effective tax rate. Additionally, future ownership changes may further impact the utilization of existing NOLs. The Company has established a full valuation allowance for its deferred tax assets due to uncertainties that preclude it from determining that it is more likely than not that the Company will be able to generate sufficient taxable income to realize such assets. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three year period ended December 31, 2019 . Such objective evidence limits the ability to consider other subjective evidence, such as the Company's projections for future growth. Based on this evaluation, as of December 31, 2019 , a valuation allowance of $92,717,000 has been recorded in order to measure only the portion of the deferred tax asset that more likely than not will be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence, such as estimates of future taxable income during carryforward periods and the Company's projections for growth. The Company applies the two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount, which is more than 50% likely of being realized upon ultimate settlement. Income tax positions must meet a more likely than not recognition threshold at the effective date to be recognized upon the adoption of ASC 740 and in subsequent periods. This interpretation also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. There were no unrecognized tax benefits for the years ended December 31, 2019 , 2018 and 2017 . At December 31, 2019 and 2018 , the Company had not accrued any interest or penalties related to uncertain tax positions. The Company does not anticipate that there will be a significant change in the amount of unrecognized tax benefits over the next twelve months. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. The Company is subject to taxation in the United States and various state and foreign jurisdictions. The Company's Federal and state tax returns since inception are subject to examination due to the carryover of net operating losses. As of December 31, 2019 , the Company’s 2013 fiscal year tax return is subject to examination by the United Kingdom tax authorities. The statute of limitations for the assessment and collection of income taxes related to other foreign tax returns varies by country. In the foreign countries where the Company has operations, these time periods generally range from three to six years after the year for which the tax return is due or the tax is assessed. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company has lease agreements for its office, manufacturing, warehousing, and laboratory space and for office equipment. Rent and operating expenses charged were $1,965,000 , $1,808,000 , and $1,654,000 for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Pursuant to the adoption of the new lease standard, the Company reported noncurrent operating lease ROU assets of $4,642,000 , and current and noncurrent operating lease liabilities of $1,842,000 and $5,796,000 , respectively, as of December 31, 2019 . The Company reported current and noncurrent deferred rent under the existing lease standard of $520,000 and $2,996,000 , respectively, at December 31, 2018. The Company's operating lease liabilities were measured at a weighted average discount rate of 11.2% and have a weighted average remaining term of 4.97 years. Annual future minimum obligations for leases as of December 31, 2019 are as follows (in thousands): Years Ending December 31, Amount 2020 $ 1,997 2021 2,015 2022 2,077 2023 1,939 2024 1,383 Thereafter 701 Total 10,112 Less: imputed interest (2,474 ) Total operating lease liabilities $ 7,638 Legal Proceedings From time to time, the Company is party to litigation and other legal proceedings in the ordinary course, and incidental to the conduct of its business. While the results of any litigation or other legal proceedings are uncertain, the Company does not believe the ultimate resolution of any pending legal matters is likely to have a material effect on its financial position or results of operations. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory on hand as of December 31, 2019 and 2018 comprised the following (in thousands): December 31, 2019 2018 Raw materials $ 3,408 $ 2,449 Work-in-process 3,776 3,349 Finished goods 4,117 4,446 Total inventory $ 11,301 $ 10,244 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment comprised the following as of December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Property and equipment–at cost: Plant and machinery $ 16,551 $ 15,206 Instruments 16,796 15,089 Office equipment 2,150 2,114 Leasehold improvements 11,896 10,648 Total property and equipment–at cost 47,393 43,057 Accumulated depreciation and amortization (26,974 ) (21,987 ) Total property and equipment, net $ 20,419 $ 21,070 Depreciation expense was $5,944,000 , $5,919,000 , and $4,771,000 for the years ended December 31, 2019 , 2018 , and 2017 , respectively. During the years ended December 31, 2019 , 2018 , and 2017 , the Company disposed of certain assets no longer in use with a net book value of $461,000 , $501,000 , and $207,000 , respectively, recorded to cost of revenue, sales and marketing, research and development, or general and administrative expenses based on the asset's respective use. |
Loan payable
Loan payable | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Loan payable | Loan Payable As of December 31, 2019 and 2018 , long-term debt consisted of the following (in thousands): December 31, 2019 2018 Term Loans Term Loan A - 6.9% interest $ — $ 7,619 Term Loan B - 6.9% interest — 7,619 Term Loan C - 7.4% interest — 12,000 Term Loan D - 8.8% interest — 663 Term Loan E - 8.8% interest — 7,098 Term Loan - 8.4% interest 70,000 — Final fee obligation 4,165 3,288 Unamortized issuance costs (5,020 ) (2,245 ) Total debt, net 69,145 36,042 Current portion of long-term debt — — Long-term debt $ 69,145 $ 36,042 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 the LSA and certain subsequent amendments, the Company borrowed $42,762,000 in a series of term loans and had the ability to borrow against a revolving loan in the maximum amount of $5,000,000 . During the term of the LSA, the term loans thereunder accrued 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 borrowed all $42,762,000 under the term loans as provided in the LSA, and the Company did not borrow any of the $5,000,000 available under the revolving loan. On February 1, 2019, or the Effective Date, the Company entered into a new Loan and Security Agreement, or the New LSA, with Solar Capital Ltd. and certain other financial institutions, or, collectively, the Lenders. Pursuant to the New LSA and certain subsequent amendments, the Lenders are providing the Company with up to $70,000,000 in a series of term loans, or, collectively, the Term Loans, of which $50,000,000 , or the Tranche 1 Loan, was funded on the Effective Date. An additional $20,000,000 , or the Tranche 2 Loan, was funded on December 16, 2019 upon the Company's achievement of a designated amount of product revenues on a trailing six-month basis. On the Effective Date, approximately $38,800,000 of the proceeds from the Tranche 1 Loan were used by the Company to repay all outstanding principal, interest, related fees, and other obligations under the LSA, with the remaining borrowings to be used to satisfy the Company's working capital needs and for other general business purposes. The Company accounted for the repayment of its obligations under the LSA as a debt modification. The Company has capitalized the issuance costs it incurred when entering into the New LSA, which are being amortized over the remaining term of the New LSA. The Term Loans under the New LSA will accrue interest at a floating per annum rate in effect from time-to-time equal to (a) the greater of 2.51% or the one-month Intercontinental Exchange Benchmark Administration Ltd. rate then in effect as of the applicable payment date, plus (b) 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 February 28, 2021 , or the Interest Only Period. If the Company achieves a designated amount of product revenues on a trailing six-month basis on or before March 31, 2020 , then the Interest Only Period may, at the Company’s election, be extended for both Term Loans through February 28, 2022 . Following the Interest Only Period (as the same may be extended pursuant to the terms of the New LSA), 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 February 1, 2023 , or the Final Maturity Date. Under the New 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 New LSA. As of December 31, 2019 , the Company was in compliance with all covenants under the New LSA. The New LSA also contains customary events of default (subject, in certain instances, to specified cure periods), including, but not limited to, the failure to make payments of interest or premium when due, the failure to comply with certain covenants and agreements specified in the New LSA, and the occurrence of a material adverse change, certain regulatory events, or certain insolvency events. Upon the occurrence of an event of default, the Lenders may declare all outstanding principal and accrued but unpaid interest under the New LSA immediately due and payable and may exercise the other rights and remedies as set forth in the New LSA. Debt Issuance Costs As of December 31, 2019 and 2018 , the Company had $5,020,000 and $2,245,000 , respectively, of unamortized debt issuance discount, which is offset against borrowings in long-term and short-term debt. For the year ended December 31, 2019 , 2018 , and 2017 , amortization of debt issuance costs were $1,740,000 , $938,000 , and $1,132,000 , respectively, which was included in interest expense in the Company's consolidated statements of comprehensive loss for the periods presented. Letter of Credit In September 2012, the Company provided a $758,000 letter of credit issued by Banc of California to the landlord of its executive office facility in Carlsbad, California. This letter of credit was secured with $758,000 of restricted cash as of December 31, 2019 . |
Employee benefit plan
Employee benefit plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee benefit plan | Employee Benefit Plan The Company has a 401(k) tax-deferred savings plan, whereby eligible employees may contribute a percentage of their eligible compensation. The Company makes matching contributions under the 401(k) plan to certain eligible employees. |
Other current liabilities
Other current liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Current Assets and Liabilities and Other Noncurrent Liabilities [Abstract] | |
Other current liabilities | Other Current Liabilities Other current liabilities as of December 31, 2019 and 2018 comprised the following (in thousands): December 31, 2019 2018 Accrued royalties $ 882 $ 534 Accrued warranties 279 330 Deferred revenue 323 245 Deferred rent — 520 Other accrued liabilities 1,248 1,414 Total other current liabilities $ 2,732 $ 3,043 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair Value of Financial Instruments The following table presents the financial instruments measured at fair value on a recurring basis on the financial statements of the Company and the valuation approach applied to each class of financial instruments at December 31, 2019 and 2018 , respectively, (in thousands): December 31, 2019 Quotes 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 $ 19,647 $ — $ — $ 19,647 Marketable securities Corporate notes and bonds $ — $ 9,100 $ — $ 9,100 Total $ 19,647 $ 9,100 $ — $ 28,747 December 31, 2018 Quotes 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 $ 8,953 $ — $ — $ 8,953 Marketable securities Corporate notes and bonds $ — $ 6,389 $ — $ 6,389 Commercial paper — 2,493 — 2,493 Total $ 8,953 $ 8,882 $ — $ 17,835 At December 31, 2019 , the carrying value of the financial instruments measured and classified within Level 1 was based on quoted prices and marked to market. Level 2 inputs for the valuations are limited to quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability. |
Marketable Securities (Notes)
Marketable Securities (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities The following table summarizes the Company’s marketable securities at December 31, 2019 and 2018 (in thousands): December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 9,099 $ 2 $ (1 ) $ 9,100 Total marketable securities $ 9,099 $ 2 $ (1 ) $ 9,100 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 6,393 $ — $ (4 ) $ 6,389 Commercial paper 2,493 — — 2,493 Total marketable securities $ 8,886 $ — $ (4 ) $ 8,882 The following table summarizes the maturities of the Company’s marketable securities at December 31, 2019 (in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 9,099 $ 9,100 Total $ 9,099 $ 9,100 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial data (unaudited) | uarterly financial data (unaudited) The following tables show a summary of the Company’s quarterly financial results for each of the four quarters of 2019 and 2018 (in thousands, except for per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2019: Total revenue $ 21,533 $ 18,374 $ 20,918 $ 27,196 Gross profit $ 5,863 $ 6,573 $ 7,050 $ 9,117 Loss from operations $ (10,910 ) $ (11,910 ) $ (10,288 ) $ (8,706 ) Net loss $ (12,080 ) $ (13,308 ) $ (11,675 ) $ (10,287 ) Earnings per share data (1) Net loss per common share—basic and diluted $ (0.21 ) $ (0.23 ) $ (0.20 ) $ (0.17 ) First Quarter Second Quarter Third Quarter Fourth Quarter 2018: Total revenue $ 20,645 $ 14,941 $ 15,795 $ 19,378 Gross profit $ 4,165 $ 4,414 $ 5,630 $ 5,272 Loss from operations $ (10,790 ) $ (15,802 ) $ (10,568 ) $ (10,612 ) Net loss $ (11,423 ) $ (16,521 ) $ (10,993 ) $ (11,563 ) Earnings per share data (1) Net loss per common share—basic and diluted $ (0.21 ) $ (0.30 ) $ (0.20 ) $ (0.21 ) (1) Basic and diluted earnings per share are calculated independently for each of the quarters presented. As such, the sum of the quarterly basic and diluted earnings per share information may not equal annual basic and diluted earnings per share. |
Organization and Basis of Pre_2
Organization and Basis of Presentation Organization and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization GenMark Diagnostics, Inc., the Company or GenMark, was formed by Osmetech plc, or Osmetech, as a Delaware corporation in February 2010, and had no operations prior to its initial public offering, or the IPO, which was completed in June 2010. Immediately prior to the closing of the IPO, GenMark acquired all of the outstanding ordinary shares of Osmetech in a reorganization, accounted for in a manner similar to a pooling-of-interests, under the applicable laws of the United Kingdom. As a result of the reorganization, all of the issued ordinary shares in Osmetech were cancelled in consideration of (i) the issuance of common stock of GenMark to the former shareholders of Osmetech and (ii) the issuance of new shares in Osmetech to GenMark. Following the reorganization, Osmetech became a subsidiary controlled by GenMark, and the former shareholders of Osmetech received shares of GenMark. Any historical discussion of GenMark relates to Osmetech and its consolidated subsidiaries prior to the reorganization. In September 2012, GenMark placed Osmetech into liquidation to simplify its corporate structure. The liquidation of Osmetech was completed in the fourth quarter of 2013. The Company is a leading provider of multiplex molecular diagnostic solutions designed to enhance patient care, improve key quality metrics, and reduce the total cost-of-care. The Company offers a sample-to-answer ePlex instrument and associated molecular diagnostic panels. The Company's products also include the XT-8 instrument and related diagnostic and research tests, as well as certain custom manufactured reagents, collectively referred to as the XT-8 system. The Company sells its products directly to customers in the U.S. and internationally primarily via a network of distribution partners. Basis of Presentation and Principles of Consolidation The accompanying 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. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying consolidated financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net losses from operations since its inception and has an accumulated deficit of $514,233,000 at December 31, 2019 . Management expects operating losses to continue through the foreseeable future. The Company's ability to transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support its cost structure through expanding its product offerings and consequently increasing its product revenues. Cash, cash equivalents, and marketable securities at December 31, 2019 totaled $53,460,000 . The Company has prepared cash flow forecasts which indicate, based on the Company’s current cash resources available, that the Company will have sufficient resources to fund its business for at least the next 12 months from the date of this filing. |
Segment Reporting, Policy | Segment Reporting The Company currently operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is the chief executive officer, in deciding how to allocate resources and assessing performance. The Company’s business operates in one operating segment because the Company’s chief operating decision maker evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. |
Use of Estimates, Policy | Use of Estimates The preparation of these 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. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities | Cash and Cash Equivalents and Marketable Securities Cash and cash equivalents consist of cash on deposit with banks, money market instruments, and certificates of deposit with original maturities of three months or less at the date of purchase. Marketable securities consist of certificates of deposits that mature in greater than three months . Marketable securities are accounted for as "available-for-sale" with the carrying amounts reported in the balance sheets stated at cost, which approximates their fair market value, with unrealized gains and losses, if any, reported as a separate component of stockholders' equity and included in comprehensive loss. |
Restricted cash policy | Restricted Cash Restricted cash represents amounts designated for uses other than current operations and includes $758,000 as of December 31, 2019 held as security for the Company’s letter of credit with Banc of California. |
Fair Value of Financial Instruments, Policy | Fair Value of Financial Instruments The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of financial instruments such as accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued liabilities approximate the related fair values due to the short-term maturities of these instruments. |
Receivables, Policy | 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. Receivables Accounts receivable consist of amounts due to the Company for sales to customers and are recorded net of an allowance for doubtful accounts. The allowance for doubtful accounts is determined based on an assessment of the collectability of specific customer accounts, the aging of accounts receivable, and a reserve for unknown items based upon the Company’s historical experience. The allowance for doubtful accounts as of December 31, 2019 and 2018 , comprised the following (in thousands): Allowance for doubtful accounts Balance at December 31, 2017 $ 2,754 Provision for doubtful accounts 23 Write off of uncollectible accounts (2,702 ) Balance at December 31, 2018 $ 75 Provision for doubtful accounts 338 Write off of uncollectible accounts (37 ) Balance at December 31, 2019 $ 376 |
Inventory, Policy | 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, Plant and Equipment, Policy | 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: Plant and Machinery 3 – 5 years Instruments 4 – 5 years Office equipment 3 – 7 years Leasehold improvements over the shorter of the remaining life of the lease or the useful economic life of the asset Property and equipment includes diagnostic instruments used for sales demonstrations or placed with customers under several types of arrangements, including performance evaluation programs, or PEPs, and reagent rental agreements. Instruments are placed with customers under PEPs for limited evaluation periods. Instruments are also placed with customers under reagent rental agreements, which generally require customers to purchase a minimum number of test cartridges over the term of the agreement. The Company retains title to the instrument under these arrangements. Maintenance and repair costs are expensed as incurred. Leased property meeting certain finance lease criteria is capitalized, and the net present value of the related lease payments is recorded as a liability. Amortization for assets noted as finance leases is recorded using the straight-line method over the shorter of the estimated useful lives or the lease terms. |
Intangible Assets, Finite-Lived, Policy | Intangible Assets Intangible assets are comprised of licenses or sublicenses to technology covered by patents owned by third parties, and are amortized on a straight-line basis over the expected useful lives of these assets, which is generally 10 years. Amortization of licenses typically begins upon the Company obtaining access to the licensed technology and is recorded in cost of revenues for licenses supporting commercialized products. The amortization of licenses to technology supporting products in development is recorded in research and development expense. |
Impairment or Disposal of Long-Lived Assets, Policy | Impairment of Long-Lived Assets The Company assesses the recoverability of long-lived assets, including intangible assets, by periodically evaluating the carrying value whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If impairment is indicated, the Company writes down the carrying value of the asset to its estimated fair value. This fair value is primarily determined based on estimated discounted cash flows. The Company did not recognize any impairment charges during the years ended December 31, 2019 , 2018 , and 2017 . |
Revenue Recognition, Policy | Revenue Recognition The Company recognizes revenue from operations through the sale of products and other services. Product revenue is comprised of the sale of consumables 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 generally recognized 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 and marketing expenses when incurred or amortized over the estimated contract term when resulting from new contract acquisition efforts. The Company allocates the 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 determinations based on similar product sales data. The following table presents disaggregated revenue by source (in thousands): Year ended December 31, 2019 2018 2017 ePlex product revenue $ 60,268 $ 37,901 $ 10,172 XT-8 product revenue 27,223 32,580 42,088 Total product revenue 87,491 70,481 52,260 License and other revenue 530 278 259 Total revenue $ 88,021 $ 70,759 $ 52,519 In the years ended December 31, 2019 , 2018 and 2017 , Laboratory Corporation of America, Inc. represented 14% , 16% , and 20% , respectively, of the Company's total revenue. The Company incurs incremental costs to obtain customer contracts, including commissions and bonuses |
Product Warranties, Policy | Product Warranties The Company generally offers a one -year warranty for its instruments sold to customers and up to a sixty -day warranty for consumables and provides for the estimated cost of the product warranty at the time the system sale is recognized. Factors that affect the Company’s warranty reserves include the number of units sold, historical and anticipated rates of warranty repairs, and the cost per warranty repair. The Company periodically assesses and if necessary adjusts the adequacy of the warranty reserve. |
Research and Development Expense, Policy | Research and Development Costs The Company expenses all research and development costs in the periods in which they are incurred unless there is alternative future use that supports the capitalization of an asset. |
Income Tax, Policy | Income Taxes Current income tax expense is the amount of income taxes expected to be payable for the current year. A deferred income tax liability or asset is established for the expected future tax consequences resulting from the differences in financial reporting and tax bases of assets and liabilities. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized. A full valuation allowance has been recorded against the Company’s net deferred tax assets due to the uncertainty surrounding the Company’s ability to utilize these assets in the future. The Company provides for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement standards prescribed by the authoritative guidance on income taxes. Amounts for uncertain tax positions are adjusted in periods when new information becomes available or when positions are effectively settled. The Company recognizes accrued interest related to uncertain tax positions as a component of income tax expense. A tax position that is more likely than not to be realized is measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with the taxing authority that has full knowledge of all relevant information. Measurement of a tax position that meets the more likely than not threshold considers the amounts and probabilities of the outcomes that could be realized upon settlement using the facts, circumstances, and information available at the reporting date. |
Share Based Compensation, Policy | Stock-Based Compensation The Company recognizes stock-based compensation expense related to stock options, shares purchased under the Company's 2013 Employee Stock Purchase Plan, or ESPP, restricted stock units, and market-based stock units granted to employees, non-employees, and directors in exchange for services. The compensation expense is based on the fair value of the applicable award utilizing various assumptions regarding the underlying attributes of the award. The stock-based compensation expense is recorded in cost of revenues, sales and marketing, research and development, and/or general and administrative expenses based on the employee's respective function. The estimated fair value of stock granted, net of forfeitures expected to occur during the vesting period, is amortized as compensation expense that approximates straight-line expense to reflect vesting as it occurs. The stock option expense is derived from the Black-Scholes option pricing model that uses several judgment-based variables to calculate the expense. The market-based stock expense is derived from the Monte Carlo Simulation Valuation. The inputs utilized in the valuation of the stock-based awards include the following factors: • Expected Term. Expected term represents the period that the stock-based awards are expected to be outstanding and is determined by using the simplified method. • Expected Volatility . Expected volatility represents the expected volatility in the Company’s stock price over the expected term of the option or market-based award and is determined by review of the Company’s and similar companies’ historical experience. • Expected Dividend . The valuation methods requires a single expected dividend yield as an input. The Company assumed no dividends as it has never paid dividends and has no current plans to do so. • Risk-Free Interest Rate. The risk-free interest rate is based on published U.S. Treasury rates in effect at the time of grant for periods corresponding with the expected term of the option or market-based award. The compensation expense related to the grant of restricted stock awards or units is calculated as the fair market value of the stock on the grant date as further adjusted to reflect expected forfeitures. |
Foreign Currency Transactions and Translations Policy | Foreign Currency Translation The Company translates the assets and liabilities of the Company's entities outside the U.S. into U.S. Dollars based on the foreign currency exchange rates at the end of each period. Gains or losses resulting from these foreign currency translations are recorded in accumulated comprehensive loss in the consolidated statement of stockholders' equity. Foreign currency translation impacts recorded in accumulated other comprehensive loss (income) for the years ended December 31, 2019 , 2018 , and 2017 were $11,000 , $44,000 , and $(84,000) , respectively. Revenue and expenses are translated at weighted average exchange rates during the applicable period. Transactions in foreign currencies were recognized using the rate of exchange prevailing at the date of the transaction. Foreign exchange gains (losses), which are included in the accompanying consolidated statements of operations, totaled $(25,000) , $(196,000) , and $225,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively, and relate primarily to transactions denominated in Euros. |
Earnings Per Share, Policy | 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 calculations of diluted net loss per share for the years ended December 31, 2019 , 2018 and 2017 did not include the effects of the following stock options or other unvested equity awards which were outstanding as of the end of each year because the inclusion of these securities would have been anti-dilutive (in thousands). |
Concentration Risk, Credit Risk, Policy | Concentration of Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investment securities, and accounts receivable. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. The Company has established guidelines to diversify its cash and investment securities and their maturities that are intended to secure safety and liquidity. |
Comprehensive Income, Policy | Comprehensive Loss The Company has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The Company’s comprehensive loss comprises net losses, unrealized gains and losses on available for sale securities, and foreign currency translation. |
New Accounting Pronouncements, Policy | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies that the Company adopts as of the specified effective date. In February 2016, the FASB issued ASU 2016-02, Leases, which outlines a comprehensive lease accounting model and supersedes the prior lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use, or ROU, assets for all leases with lease terms of greater than 12 months. The guidance 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 is effective for annual periods beginning after December 15, 2018. The Company adopted the new standard in the first quarter of 2019 using the package of transition practical expedients. The Company recognized non-current ROU assets of $5,097,000 and current and non-current lease liabilities of $1,780,000 and $6,832,000 , respectively, upon adoption. Deferred rent is now presented as an offset to the Company's non-current operating lease ROU assets. The new lease standard did not have a material impact on the Company's consolidated statements of comprehensive loss, cash flows, or stockholders' equity. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments , which introduces a new methodology for recognizing credit losses on financial instruments. The new standard requires entities to measure financial instruments at their amortized cost basis, net of an allowance for credit losses. The allowance for credit losses must reflect an entity's current estimate of all expected credit losses. The new guidance also requires entities to present credit losses on debt securities accounted for under the available-for-sale method as an allowance rather than a write down. The new guidance must be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period presented and is effective for fiscal years beginning after December 15, 2019. The Company will adopt ASU 2016-13 during the first quarter of 2020. The adoption of the new guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The allowance for doubtful accounts as of December 31, 2019 and 2018 , comprised the following (in thousands): Allowance for doubtful accounts Balance at December 31, 2017 $ 2,754 Provision for doubtful accounts 23 Write off of uncollectible accounts (2,702 ) Balance at December 31, 2018 $ 75 Provision for doubtful accounts 338 Write off of uncollectible accounts (37 ) Balance at December 31, 2019 $ 376 |
Estimated Useful Lives of Property and Equipment | Property, equipment and leasehold improvements are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which are: Plant and Machinery 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 |
Schedule of Product Warranty Liability | Product warranty reserve activity for the most recent three years is as follows (in thousands): Year ended December 31, 2019 2018 2017 Beginning balance $ 330 $ 470 $ 219 Warranty expenses incurred (1,326 ) (1,495 ) (1,160 ) Provisions 1,275 1,355 1,411 Ending balance $ 279 $ 330 $ 470 |
Schedule of Weighted Average Number of Shares | The calculations of diluted net loss per share for the years ended December 31, 2019 , 2018 and 2017 did not include the effects of the following stock options or other unvested equity awards which were outstanding as of the end of each year because the inclusion of these securities would have been anti-dilutive (in thousands). Year Ended December 31, 2019 2018 2017 Options outstanding to purchase common stock 2,037 2,440 2,490 Other unvested equity awards 3,124 2,994 2,307 Total 5,161 5,434 4,797 |
Schedules of Concentration of Risk, by Risk Factor | The following table summarizes customers who accounted for 10% or more of net accounts receivable: December 31, 2019 2018 Company A (1) 24 % 24 % Company B (2) 11 % (2) |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | Intangible assets as of December 31, 2019 and 2018 comprised the following (in thousands): December 31, 2019 December 31, 2018 Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Licensed intellectual property $ 4,750 $ (3,318 ) $ 1,432 $ 4,750 $ (2,727 ) $ 2,023 |
Summary of estimated future amortization expense | Estimated future amortization expense for these licenses is as follows (in thousands): Years Ending December 31, Future Amortization Expense 2020 $ 591 2021 591 2022 250 Total $ 1,432 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes stock option activity during the year ended December 31, 2019 : Number of shares Weighted average exercise price Outstanding at December 31, 2018 2,439,914 $ 9.57 Granted — $ — Exercised (121,383 ) $ 5.90 Canceled (281,399 ) $ 11.46 Outstanding at December 31, 2019 2,037,132 $ 9.53 Vested at December 31, 2019 2,037,132 $ 9.53 Exercisable at December 31, 2019 2,037,132 $ 9.53 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | |
Schedule of Share-based Compensation, Restricted Stock, Award Activity | The Company’s restricted stock unit activity for the year ended December 31, 2019 was as follows: Number of shares Weighted Average Grant Date Fair Value Unvested at December 31, 2018 2,665,708 $ 6.12 Granted 1,594,151 $ 6.71 Vested (1,311,508 ) $ 6.10 Canceled (278,852 ) $ 6.78 Unvested at December 31, 2019 2,669,499 $ 6.42 |
Schedule of Share Based Compensation, Market Based Stock Units, Award Activity | The Company’s market-based stock unit activity for the year ended December 31, 2019 was as follows: Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2018 328,739 $ 10.03 Granted 460,000 $ 10.22 Vested (165,771 ) $ 9.16 Canceled (168,739 ) $ 13.09 Unvested at December 31, 2019 454,229 $ 9.40 |
Schedule of Share-based Compensation, Market Based Stock Units, Valuation Assumptions | The fair value of market-based stock units is 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: Years Ended December 31, 2019 2018 2017 Expected volatility 64 % 65 % 54 % Risk-free interest rate 2.50 % 2.40 % 1.50 % Expected dividend — % — % — % Weighted average fair value $ 10.22 $ 7.19 $ 13.82 |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity | A summary of ESPP activity for the most recent three years is as follows (in thousands, except share and per share data): Years Ended December 31, 2019 2018 2017 Shares issued 209,577 252,623 174,723 Weighted average fair value of shares issued $ 4.59 $ 4.20 $ 5.82 Employee purchases $ 962 $ 1,061 $ 1,016 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The assumptions used in the valuation for the years ended December 31, 2019 , 2018 and 2017 , are summarized in the following table: Years Ended December 31, 2019 2018 2017 Expected volatility 50% - 40% 73% - 54% 90% - 36% Expected life (years) 0.50 0.50 0.50 Risk free rate 2.3% - 1.6% 2.6% - 2.1% 1.5% - 0.6% Expected dividend yield — % — % — % |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Stock-based compensation was recognized in the consolidated statements of comprehensive loss as follows (in thousands): Years Ended December 31, 2019 2018 2017 Cost of revenue $ 953 $ 871 $ 546 Sales and marketing 3,014 5,549 2,819 Research and development 1,744 2,470 3,039 General and administrative 6,335 2,807 5,766 Total stock-based compensation expense $ 12,046 $ 11,697 $ 12,170 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The Company's income (loss) before provision for income taxes for the years ended December 31, 2019 , 2018 , and 2017 , respectively, was generated in the following jurisdictions (in thousands): Years Ended December 31, 2019 2018 2017 Domestic $ (47,807 ) $ (50,938 ) $ (62,495 ) Foreign 521 577 746 Total loss before income taxes $ (47,286 ) $ (50,361 ) $ (61,749 ) |
Components of income tax expense (benefit) for continuing operations | The components of income tax expense were as follows for the years ended December 31, 2019 , 2018 , and 2017 , respectively (in thousands): Years Ended December 31, 2019 2018 2017 Current expense U.S. Federal $ 27 $ 4 $ (1 ) State 29 43 22 Foreign 11 99 80 Total current expense 67 146 101 Deferred benefit U.S. Federal (2 ) (5 ) — State (1 ) (2 ) — Total deferred benefit (3 ) (7 ) — Provision for income taxes $ 64 $ 139 $ 101 |
Net deferred income taxes | The components of net deferred income taxes consisted of the following at December 31, 2019 and 2018 , respectively (in thousands): As of December 31, 2019 2018 Deferred income tax assets: NOL and credit carryforwards $ 84,362 $ 75,063 Compensation accruals 4,669 4,542 Accruals and reserves 764 1,401 Operating lease liability 1,906 — State tax provision 6 7 Inventory adjustments 881 1,193 Intangible assets 542 498 Other 2,031 620 Gross deferred tax assets 95,161 83,324 Less: valuation allowance (92,717 ) (81,964 ) Total deferred tax assets 2,444 1,360 Deferred income tax liabilities: Depreciation 951 1,102 Contract acquisition costs 334 258 Operating lease right-of-use assets 1,159 — Total deferred tax liabilities 2,444 1,360 Net deferred tax assets (liabilities) $ — $ — |
Reconciliation of income tax (expense) | A reconciliation of income tax expense to the amount computed by applying the statutory federal income tax rate to the loss from operations is summarized for the years ended December 31, 2019 , 2018 , and 2017 , respectively, as follows: Years Ended December 31, 2019 2018 2017 U.S. Federal statutory income tax rate 21.0 % 21.0 % 34.0 % Permanent differences (0.3 )% (0.2 )% (0.2 )% State taxes 3.8 % 3.0 % 2.8 % Executive compensation limitation (0.9 )% (0.5 )% (0.5 )% Tax reform — % 0.1 % (59.0 )% Stock-based compensation (1.2 )% (2.6 )% 1.4 % Other 0.1 % 0.1 % 0.2 % Valuation allowance (22.7 )% (21.2 )% 21.1 % Total tax provision (0.2 )% (0.3 )% (0.2 )% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Annual future minimum obligations for operating leases | Annual future minimum obligations for leases as of December 31, 2019 are as follows (in thousands): Years Ending December 31, Amount 2020 $ 1,997 2021 2,015 2022 2,077 2023 1,939 2024 1,383 Thereafter 701 Total 10,112 Less: imputed interest (2,474 ) Total operating lease liabilities $ 7,638 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of inventory on hand | Inventory on hand as of December 31, 2019 and 2018 comprised the following (in thousands): December 31, 2019 2018 Raw materials $ 3,408 $ 2,449 Work-in-process 3,776 3,349 Finished goods 4,117 4,446 Total inventory $ 11,301 $ 10,244 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and equipment, net | Property and equipment comprised the following as of December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Property and equipment–at cost: Plant and machinery $ 16,551 $ 15,206 Instruments 16,796 15,089 Office equipment 2,150 2,114 Leasehold improvements 11,896 10,648 Total property and equipment–at cost 47,393 43,057 Accumulated depreciation and amortization (26,974 ) (21,987 ) Total property and equipment, net $ 20,419 $ 21,070 |
Loan payable Outstanding Debt (
Loan payable Outstanding Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, 2019 2018 Term Loans Term Loan A - 6.9% interest $ — $ 7,619 Term Loan B - 6.9% interest — 7,619 Term Loan C - 7.4% interest — 12,000 Term Loan D - 8.8% interest — 663 Term Loan E - 8.8% interest — 7,098 Term Loan - 8.4% interest 70,000 — Final fee obligation 4,165 3,288 Unamortized issuance costs (5,020 ) (2,245 ) Total debt, net 69,145 36,042 Current portion of long-term debt — — Long-term debt $ 69,145 $ 36,042 |
Other current liabilities (Tabl
Other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Current Assets and Liabilities and Other Noncurrent Liabilities [Abstract] | |
Other current liabilities | Other current liabilities as of December 31, 2019 and 2018 comprised the following (in thousands): December 31, 2019 2018 Accrued royalties $ 882 $ 534 Accrued warranties 279 330 Deferred revenue 323 245 Deferred rent — 520 Other accrued liabilities 1,248 1,414 Total other current liabilities $ 2,732 $ 3,043 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | The following table presents the financial instruments measured at fair value on a recurring basis on the financial statements of the Company and the valuation approach applied to each class of financial instruments at December 31, 2019 and 2018 , respectively, (in thousands): December 31, 2019 Quotes 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 $ 19,647 $ — $ — $ 19,647 Marketable securities Corporate notes and bonds $ — $ 9,100 $ — $ 9,100 Total $ 19,647 $ 9,100 $ — $ 28,747 December 31, 2018 Quotes 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 $ 8,953 $ — $ — $ 8,953 Marketable securities Corporate notes and bonds $ — $ 6,389 $ — $ 6,389 Commercial paper — 2,493 — 2,493 Total $ 8,953 $ 8,882 $ — $ 17,835 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable securities - Gross unrealized gains/losses | The following table summarizes the Company’s marketable securities at December 31, 2019 and 2018 (in thousands): December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 9,099 $ 2 $ (1 ) $ 9,100 Total marketable securities $ 9,099 $ 2 $ (1 ) $ 9,100 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 6,393 $ — $ (4 ) $ 6,389 Commercial paper 2,493 — — 2,493 Total marketable securities $ 8,886 $ — $ (4 ) $ 8,882 |
Marketable Securities - Contractual Maturities | The following table summarizes the maturities of the Company’s marketable securities at December 31, 2019 (in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 9,099 $ 9,100 Total $ 9,099 $ 9,100 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | First Quarter Second Quarter Third Quarter Fourth Quarter 2019: Total revenue $ 21,533 $ 18,374 $ 20,918 $ 27,196 Gross profit $ 5,863 $ 6,573 $ 7,050 $ 9,117 Loss from operations $ (10,910 ) $ (11,910 ) $ (10,288 ) $ (8,706 ) Net loss $ (12,080 ) $ (13,308 ) $ (11,675 ) $ (10,287 ) Earnings per share data (1) Net loss per common share—basic and diluted $ (0.21 ) $ (0.23 ) $ (0.20 ) $ (0.17 ) First Quarter Second Quarter Third Quarter Fourth Quarter 2018: Total revenue $ 20,645 $ 14,941 $ 15,795 $ 19,378 Gross profit $ 4,165 $ 4,414 $ 5,630 $ 5,272 Loss from operations $ (10,790 ) $ (15,802 ) $ (10,568 ) $ (10,612 ) Net loss $ (11,423 ) $ (16,521 ) $ (10,993 ) $ (11,563 ) Earnings per share data (1) Net loss per common share—basic and diluted $ (0.21 ) $ (0.30 ) $ (0.20 ) $ (0.21 ) (1) Basic and diluted earnings per share are calculated independently for each of the quarters presented. As such, the sum of the quarterly basic and diluted earnings per share information may not equal annual basic and diluted earnings per share. |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Forfeiture Rate Change | $ 174,000 | ||
Accumulated deficit | $ (514,233,000) | $ (466,883,000) | |
Cash, cash equivalents, and marketable securities | $ 53,460,000 |
Summary of significant accoun_4
Summary of significant accounting policies - Cash, Cash Equivalents, Restricted Cash, and Marketable Securities (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 44,360,000 | $ 36,286,000 | $ 26,754,000 | |
Minimum Maturity for Short Term Investments | 3 months | |||
Maximum Maturity for Cash and Cash Equivalent at Date of Purchase | 3 months | |||
Restricted Cash | $ 758,000 | 758,000 | 758,000 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 45,118,000 | $ 37,044,000 | $ 27,512,000 | $ 16,717,000 |
Summary of significant accoun_5
Summary of significant accounting policies - Allowance for Doubtful Accounts Receivable Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for Doubtful Accounts | $ 376 | $ 75 | $ 2,754 |
Allowance for Doubtful Accounts Receivable, Write-offs | (37) | (2,702) | |
Beginning Balance | 75 | 2,754 | |
Provision for Doubtful Accounts | 338 | 23 | 14 |
Ending Balance | $ 376 | $ 75 | $ 2,754 |
Summary of significant accoun_6
Summary of significant accounting policies - Property, Plant, and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Asset Impairment Charges | $ 0 | $ 0 | $ 0 |
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Instruments | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 4 years | ||
Instruments | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Office Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Office Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years |
Summary of significant accoun_7
Summary of significant accounting policies - Product Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Beginning balance | $ 330 | $ 470 | $ 219 |
Warranty expenses incurred | 1,326 | 1,495 | 1,160 |
Provisions | 1,275 | 1,355 | 1,411 |
Ending balance | $ 279 | $ 330 | $ 470 |
Systems [Member] | |||
Product Warranty Liability [Line Items] | |||
Products Warranty Period | 1 year | ||
Reagents [Member] | |||
Product Warranty Liability [Line Items] | |||
Products Warranty Period | 60 days |
Summary of significant accoun_8
Summary of significant accounting policies - Foreign Currency Translation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ 11,000 | $ 44,000 | |
Foreign Currency Transaction Gain (Loss), before Tax | $ (25,000) | $ (196,000) | $ 225,000 |
Summary of significant accoun_9
Summary of significant accounting policies - Earnings per share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5,161 | 5,434 | 4,797 |
Employee Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,037 | 2,440 | 2,490 |
Equity award, Non stock option member [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,124 | 2,994 | 2,307 |
Summary of significant accou_10
Summary of significant accounting policies - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Accounting Policies [Abstract] | ||||
Operating Lease, Right-of-Use Asset | $ 4,642,000 | $ 0 | $ 5,097,000 | |
Operating Lease, Liability, Noncurrent | 5,796,000 | 0 | 6,832,000 | |
Operating Lease, Liability, Current | $ 1,842,000 | $ 0 | $ 1,780,000 | |
Percentage of Tax Benefit Likely of Being Realized upon Settlement | 50.00% | |||
Customer Concentration Risk | Laboratory Corporation of America Inc. | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 14.00% | 16.00% | 20.00% | |
Credit Concentration Risk | Laboratory Corporation of America Inc. | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 24.00% | 24.00% | ||
Credit Concentration Risk | Kaiser Permanente [Member] [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 11.00% |
Summary of significant accou_11
Summary of significant accounting policies Contract acquisition (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Capitalized Contract Cost, Net | $ 1,340,000 | $ 1,055,000 |
Capitalized Contract Cost, Amortization | $ 733,000 | $ 567,000 |
Summary of significant accou_12
Summary of significant accounting policies Revenue disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 87,491 | $ 70,481 | $ 52,260 | ||||||||
License and Other Revenue | 530 | 278 | 259 | ||||||||
Total revenue | $ 27,196 | $ 20,918 | $ 18,374 | $ 21,533 | $ 19,378 | $ 15,795 | $ 14,941 | $ 20,645 | 88,021 | 70,759 | 52,519 |
ePlex Revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 60,268 | 37,901 | 10,172 | ||||||||
XT-8 Revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 27,223 | $ 32,580 | $ 42,088 |
Intangible Assets - Components
Intangible Assets - Components of Gross and Net Intangible Asset Balances (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2012 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Net carrying amount | $ 1,432,000 | ||
Licensed Intellectual Property [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 4,750,000 | $ 4,750,000 | |
Accumulated amortization | (3,318,000) | (2,727,000) | |
Net carrying amount | 1,432,000 | $ 2,023,000 | |
Advanced Liquid Logic, Inc. [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 250,000 | $ 500,000 | |
Indefinite-Lived License Agreements, Potential Cash Payment | $ 1,750,000 |
Intangible Assets, net - Additi
Intangible Assets, net - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense for intangible assets | $ 591,000 | $ 601,000 | $ 546,000 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 2 years 5 months 9 days |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Summary of estimated future amortization expense | |
2020 | $ 591 |
2021 | 591 |
2022 | 250 |
Net carrying amount | $ 1,432 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Weighted Average Price Per Share | $ 5.77 | ||
Commission Percentage | 3.00% | ||
Maximum ATM Offering | $ 35,000,000 | ||
Proceeds from issuance of common stock | 14,021,000 | $ 1,061,000 | $ 87,267,000 |
Payments of Stock Issuance Costs | 574,000 | 0 | 5,469,000 |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Gross Proceeds from Issuance of Common Stock | 13,059,000 | ||
Issuance Costs Due to Canaccord [Member] | |||
Class of Stock [Line Items] | |||
Payments of Stock Issuance Costs | $ 392,000 | ||
ATM Offering [Member] | Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 2,263,000 | ||
Issuance Costs Due to Additional Parties [Member] | |||
Class of Stock [Line Items] | |||
Payments of Stock Issuance Costs | $ 182,000 | ||
Market Share Unit | 2010 Equity Incentive Plan | |||
Class of Stock [Line Items] | |||
Equity Instruments Other than Options, Vested in Period, Fair Value | $ 797,000 | $ 645,000 | $ 0 |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Awards Activity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 962,000 | $ 1,061,000 | $ 1,016,000 |
2010 Equity Incentive Plan | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding | 2,037,132 | 2,439,914 | |
Options granted | 0 | ||
Options exercised | 121,383 | ||
Options canceled | (281,399) | ||
Options, Vested and Expected to Vest | 2,037,132 | ||
Options, Exercisable | 2,037,132 | ||
Options, Outstanding, Weighted Average Exercise Price | $ 9.53 | $ 9.57 | |
Options, Grants in Period, Weighted Average Exercise Price | 0 | ||
Options, Exercises in Period, Weighted Average Exercise Price | 5.90 | ||
Options, Canceled in Period, Weighted Average Exercise Price | 11.46 | ||
Options, Vested and Expected to Vest, Weighted Average Exercise Price | 9.53 | ||
Options, Exercisable, Weighted Average Exercise Price | $ 9.53 | ||
Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 3 months 7 days | ||
Options, Exercisable, Intrinsic Value | $ 269,000 | ||
Options, Exercises in Period, Intrinsic Value | $ 131,000 | $ 6,700 | 173,000 |
2010 Equity Incentive Plan | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity Award Other Than Options, Unvested | 2,669,499 | 2,665,708 | |
Equity Award Other Than Options, Grants in Period | 1,594,151 | ||
Equity Award Other Than Options, Vested in Period | (1,311,508) | ||
Equity Award Other Than Options, Forfeited in Period | (278,852) | ||
Equity Award Other Than Options, Weighted Average Grant Date Fair Value | $ 6.42 | $ 6.12 | |
Equity Award Other Than Options, Grants in Period, Weighted Average Grant Date Fair Value | 6.71 | ||
Equity Award Other Than Options, Vested in Period, Weighted Average Grant Date Fair Value | 6.10 | ||
Equity Award Other Than Options, Canceled in Period, Weighted Average Grant Date Fair Value | $ 6.78 | ||
Equity Instruments Other than Options, Vested in Period, Fair Value | $ 8,727,000 | $ 5,404,000 | $ 7,813,000 |
Nonvested Awards, Compensation Cost Not yet Recognized, Weighted Average Period for Recognition | 2 years 5 months 16 days | ||
Nonvested Awards, Compensation Cost Not yet Recognized | $ 12,488,000 | ||
2010 Equity Incentive Plan | Market Share Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity Award Other Than Options, Unvested | 454,229 | 328,739 | |
Equity Award Other Than Options, Grants in Period | 460,000 | ||
Equity Award Other Than Options, Vested in Period | (165,771) | ||
Equity Award Other Than Options, Canceled in Period | (168,739) | ||
Equity Award Other Than Options, Weighted Average Grant Date Fair Value | $ 9.40 | $ 10.03 | |
Equity Award Other Than Options, Grants in Period, Weighted Average Grant Date Fair Value | 10.22 | $ 7.19 | $ 13.82 |
Equity Award Other Than Options, Vested in Period, Weighted Average Grant Date Fair Value | 9 | ||
Equity Award Other Than Options, Canceled in Period, Weighted Average Grant Date Fair Value | $ 13.09 | ||
Equity Instruments Other than Options, Vested in Period, Fair Value | $ 797,000 | $ 645,000 | $ 0 |
Nonvested Awards, Compensation Cost Not yet Recognized, Weighted Average Period for Recognition | 1 year 8 months 23 days | ||
Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,815,000 | ||
2010 Equity Incentive Plan | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity Award Other Than Options, Forfeited in Period | (168,739) | ||
2013 Employee Stock Purchase Plan | Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity Award Other Than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 4.59 | $ 4.20 | $ 5.82 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 962,000 | $ 1,061,000 | $ 1,016,000 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 209,577 | 252,623 | 174,723 |
Stock-Based Compensation Valuat
Stock-Based Compensation Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
2010 Equity Incentive Plan | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair Value Assumptions, Expected Term | 0 years | ||
2010 Equity Incentive Plan | Market Share Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair Value Assumptions, Expected Volatility Rate | 64.00% | 65.00% | 54.00% |
Fair Value Assumptions, Risk Free Interest Rate | 2.50% | 2.40% | 1.50% |
Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.00% |
Equity Award Other Than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 10.22 | $ 7.19 | $ 13.82 |
2013 Employee Stock Purchase Plan | Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair Value Assumptions, Expected Term | 6 months | 6 months | 6 months |
Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.00% |
2013 Employee Stock Purchase Plan | Employee Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair Value Assumptions, Expected Volatility Rate | 64.00% | 65.00% | 54.00% |
Fair Value Assumptions, Risk Free Interest Rate | 2.50% | 2.40% | 1.50% |
2013 Employee Stock Purchase Plan | Employee Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair Value Assumptions, Expected Volatility Rate | 64.00% | 65.00% | 54.00% |
Fair Value Assumptions, Risk Free Interest Rate | 2.50% | 2.40% | 1.50% |
Stock-Based Compensation Expens
Stock-Based Compensation Expense Recognition (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | $ 12,046,000 | $ 11,697,000 | $ 12,170,000 |
Allocation of Recognized Period Costs, Capitalized Amount | 0 | 0 | 0 |
Unrecognized Deferred Tax Assets Related to Excess Tax Benefits from Share Based Compensation | 0 | 0 | 0 |
Cost of revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 953,000 | 871,000 | 546,000 |
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 3,014,000 | 5,549,000 | 2,819,000 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 1,744,000 | 2,470,000 | 3,039,000 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | $ 6,335,000 | $ 2,807,000 | $ 5,766,000 |
Stock-Based Compensation Additi
Stock-Based Compensation Additional Information (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | May 22, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
2010 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares Available for Grant | 974,236 | |
2010 Equity Incentive Plan | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award Vesting Period | 4 years | |
2010 Equity Incentive Plan | Market Share Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum MSU Payout Percentage | 200.00% | |
Award Vesting Period | 3 years | |
2013 Employee Stock Purchase Plan | Employee Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares Authorized | 1,750,000 | 650,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 85.00% | |
Number of Shares Available for Grant | 730,916 | |
Offering Period | 6 months | |
Maximum Employee Subscription Rate | 10.00% | |
Maximum Number of Shares Per Employee | 1,500 | |
Maximum | 2013 Employee Stock Purchase Plan | Employee Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Offering Period | 27 months |
Income Taxes - Schedule Of Inco
Income Taxes - Schedule Of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (47,807) | $ (50,938) | $ (62,495) |
Foreign | 521 | 577 | 746 |
Loss before provision for income taxes | $ (47,286) | $ (50,361) | $ (61,749) |
Income Taxes - Components Of In
Income Taxes - Components Of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current expense | |||
U.S. Federal | $ 27 | $ 4 | $ (1) |
State | 29 | 43 | 22 |
Foreign (non-U.S. entities) | 11 | 99 | 80 |
Total current expense | 67 | 146 | 101 |
Deferred benefit | |||
U.S. Federal | (2) | (5) | 0 |
State | (1) | (2) | 0 |
Total deferred benefit | (3) | (7) | 0 |
Income Tax Expense (Benefit) | $ 64 | $ 139 | $ 101 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets, Gross [Abstract] | ||
NOL and credit carryforwards | $ 84,362,000 | $ 75,063,000 |
Compensation accruals | 4,669,000 | 4,542,000 |
Accruals and reserves | 764,000 | 1,401,000 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Deferred Rent | 1,906,000 | 0 |
State tax provision | 6,000 | 7,000 |
Inventory adjustments | 881,000 | 1,193,000 |
Intangible assets | 542,000 | 498,000 |
Other | 2,031,000 | 620,000 |
Gross deferred tax assets | 95,161,000 | 83,324,000 |
Less: valuation allowance | (92,717,000) | (81,964,000) |
Total deferred tax assets | 2,444,000 | 1,360,000 |
Deferred Tax Liabilities, Net [Abstract] | ||
Depreciation | 951,000 | 1,102,000 |
Contract acquisition costs | 334,000 | 258,000 |
Deferred Tax Liabilities, Leasing Arrangements | 1,159,000 | 0 |
Total deferred tax liabilities | 2,444,000 | 1,360,000 |
Net deferred tax assets (liabilities) | $ 0 | $ 0 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconcilation (Details) | 12 Months Ended | ||
Dec. 31, 2019Rate | Dec. 31, 2018Rate | Dec. 31, 2017Rate | |
Effective Income Tax Rate Reconciliation | |||
U.S. Federal statutory income tax rate | 21.00% | 21.00% | 34.00% |
Permanent differences | (0.30%) | (0.20%) | (0.20%) |
State taxes | 3.80% | 3.00% | 2.80% |
Executive compensation limitation | (0.90%) | (0.50%) | (0.50%) |
Tax reform | 0.00% | 0.10% | (59.00%) |
Stock-based compensation | (1.20%) | (2.60%) | 1.40% |
Other | 0.10% | 0.10% | 0.20% |
Valuation allowance | (22.70%) | (21.20%) | 21.10% |
Total tax provision | (0.20%) | (0.30%) | (0.20%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 92,717,000 | $ 81,964,000 | |
Percentage of Holding by Stockholders Under Consideration to Offset Future Taxable Income | stockholders that hold 5% or more of the Company’s common stock | ||
Probability of Realization of Income Tax upon Settlement | 50.00% | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 34.00% |
Unrecognized Tax Benefits | $ 0 | $ 0 | $ 0 |
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards, Expiration date | Jan. 1, 2025 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 249,700,000 | ||
Pre-2018 NOL [Member] | Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 264,600,000 | ||
Post-2018 NOL [Member] | Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 78,190,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 4,642,000 | $ 5,097,000 | $ 0 |
Operating Lease, Liability, Current | 1,842,000 | 1,780,000 | 0 |
Operating Lease, Liability, Noncurrent | 5,796,000 | $ 6,832,000 | 0 |
Deferred rent | 0 | $ 2,996,000 | |
Annual future minimum obligations for operating leases | |||
2018 | 1,997,000 | ||
2019 | 2,015,000 | ||
2020 | 2,077,000 | ||
2021 | 1,939,000 | ||
2022 | 1,383,000 | ||
Thereafter | 701,000 | ||
Total minimum lease payments | 10,112,000 | ||
Less: imputed interest | (2,474,000) | ||
Total operating lease liabilities | $ 7,638,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Loss Contingencies [Line Items] | ||||
Deferred Rent Credit, Current | $ 0 | $ 520,000 | ||
Operating Lease, Liability, Current | 1,842,000 | 0 | $ 1,780,000 | |
Operating Leases, Rent Expense | $ 1,965,000 | $ 1,808,000 | $ 1,654,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of inventory on hand | ||
Raw materials | $ 3,408 | $ 2,449 |
Work-in-process | 3,776 | 3,349 |
Finished goods | 4,117 | 4,446 |
Total inventory | $ 11,301 | $ 10,244 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property and equipment-at cost: | ||
Total property and equipment-at cost | $ 47,393 | $ 43,057 |
Less accumulated depreciation | (26,974) | (21,987) |
Net property and equipment | 20,419 | 21,070 |
Plant and machinery | ||
Property and equipment-at cost: | ||
Total property and equipment-at cost | 16,551 | 15,206 |
Instruments | ||
Property and equipment-at cost: | ||
Total property and equipment-at cost | 16,796 | 15,089 |
Office equipment | ||
Property and equipment-at cost: | ||
Total property and equipment-at cost | 2,150 | 2,114 |
Leasehold improvements | ||
Property and equipment-at cost: | ||
Total property and equipment-at cost | $ 11,896 | $ 10,648 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Disposals | $ 461,000 | $ 501,000 | $ 207,000 |
Depreciation expense | $ 5,944,000 | $ 5,919,000 | $ 4,771,000 |
Loan payable Schedule Term Loan
Loan payable Schedule Term Loans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Proceeds from Issuance of Debt | $ 38,800,000 | ||
Debt Instrument, Interest Rate Terms | (a) the greater of 2.51% or the one-month Intercontinental Exchange Benchmark Administration Ltd. rate then in effect as of the applicable payment date, plus (b) 5.90% per annum | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 42,762,000 | ||
Loans Payable, Final Fee Obligation | 4,165,000 | $ 3,288,000 | |
Debt Instrument, Unamortized Discount (Premium), Net | (5,020,000) | (2,245,000) | |
Long-term Debt | 69,145,000 | 36,042,000 | |
Long-term Debt, Current Maturities | 0 | 0 | |
Long-term Debt, Excluding Current Maturities | $ 69,145,000 | 36,042,000 | |
Debt Interest only Period End | Feb. 28, 2021 | ||
Interest Extension, Product Rev. Target Date | March 31, 2020 | ||
Amortization of Debt Issuance Costs | $ 1,740,000 | 938,000 | $ 1,132,000 |
Debt Instrument, Maturity Date | Feb. 1, 2023 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | ||
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Letters of Credit Outstanding, Amount | 758,000 | ||
Restricted cash | $ 758,000 | ||
Term Loan - 8.4% interest | |||
Debt Instrument [Line Items] | |||
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. | ||
Long-term Debt | $ 70,000,000 | 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.40% | ||
Term Loan A - 6.9% interest | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 0 | 7,619,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.90% | ||
Term Loan B - 6.9% interest | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 0 | 7,619,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.90% | ||
Term Loan C - 7.4% interest | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 0 | 12,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.40% | ||
Term Loan D - 8.8% interest | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 0 | 663,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.80% | ||
Term Loan E - 8.8% interest | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 0 | $ 7,098,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.80% | ||
Tranche 2 Loan [Member] | |||
Debt Instrument [Line Items] | |||
Term Loans, Debt Facility, Maximum Borrowing Capacity | $ 20,000,000 | ||
Tranche 1 Loan [Member] | |||
Debt Instrument [Line Items] | |||
Term Loans, Debt Facility, Maximum Borrowing Capacity | 50,000,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 70,000,000 | ||
Debt Interest only Period End | Feb. 28, 2022 |
Other current liabilities (Deta
Other current liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Other current liabilities | ||
Accrued royalties | $ 882,000 | $ 534,000 |
Accrued warranties | 279,000 | 330,000 |
Deferred revenue | 323,000 | 245,000 |
Deferred Rent Credit, Current | 0 | 520,000 |
Other Accrued Liabilities, Current | 1,248,000 | 1,414,000 |
Total | $ 2,732,000 | $ 3,043,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets measured at fair value on a recurring basis | ||
Assets, Fair Value Disclosure | $ 28,747 | $ 17,835 |
Level 1 | ||
Assets measured at fair value on a recurring basis | ||
Assets, Fair Value Disclosure | 19,647 | 8,953 |
Level 2 | ||
Assets measured at fair value on a recurring basis | ||
Assets, Fair Value Disclosure | 9,100 | 8,882 |
Level 3 | ||
Assets measured at fair value on a recurring basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Money Market Funds | ||
Assets measured at fair value on a recurring basis | ||
Cash and Cash Equivalents | 19,647 | 8,953 |
Fair Value, Measurements, Recurring | Money Market Funds | Level 1 | ||
Assets measured at fair value on a recurring basis | ||
Cash and Cash Equivalents | 19,647 | 8,953 |
Fair Value, Measurements, Recurring | Money Market Funds | Level 2 | ||
Assets measured at fair value on a recurring basis | ||
Cash and Cash Equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Money Market Funds | Level 3 | ||
Assets measured at fair value on a recurring basis | ||
Cash and Cash Equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate Notes and Bonds | ||
Assets measured at fair value on a recurring basis | ||
Marketable securities | 9,100 | 6,389 |
Fair Value, Measurements, Recurring | Corporate Notes and Bonds | Level 1 | ||
Assets measured at fair value on a recurring basis | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate Notes and Bonds | Level 2 | ||
Assets measured at fair value on a recurring basis | ||
Marketable securities | 9,100 | 6,389 |
Fair Value, Measurements, Recurring | Corporate Notes and Bonds | Level 3 | ||
Assets measured at fair value on a recurring basis | ||
Marketable securities | $ 0 | 0 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Assets measured at fair value on a recurring basis | ||
Marketable securities | 2,493 | |
Fair Value, Measurements, Recurring | Commercial paper | Level 1 | ||
Assets measured at fair value on a recurring basis | ||
Marketable securities | 0 | |
Fair Value, Measurements, Recurring | Commercial paper | Level 2 | ||
Assets measured at fair value on a recurring basis | ||
Marketable securities | 2,493 | |
Fair Value, Measurements, Recurring | Commercial paper | Level 3 | ||
Assets measured at fair value on a recurring basis | ||
Marketable securities | $ 0 |
Marketable Securities - Gross
Marketable Securities - Gross unrealized gains/losses on marketable securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 9,099 | $ 8,886 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | (1) | (4) |
Estimated Fair Value | 9,100 | 8,882 |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,099 | 6,393 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | (1) | (4) |
Estimated Fair Value | $ 9,100 | 6,389 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,493 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | $ 2,493 |
Marketable Securities - Contra
Marketable Securities - Contractual maturities of marketable securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 9,099 | $ 8,886 |
Estimated Fair Value | 9,100 | $ 8,882 |
Due in one year or less | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,099 | |
Estimated Fair Value | $ 9,100 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selected Quarterly Financial Data | |||||||||||
Total revenue | $ 27,196 | $ 20,918 | $ 18,374 | $ 21,533 | $ 19,378 | $ 15,795 | $ 14,941 | $ 20,645 | $ 88,021 | $ 70,759 | $ 52,519 |
Gross profit | 9,117 | 7,050 | 6,573 | 5,863 | 5,272 | 5,630 | 4,414 | 4,165 | 28,603 | 19,481 | 20,005 |
Loss from operations | (8,706) | (10,288) | (11,910) | (10,910) | (10,612) | (10,568) | (15,802) | (10,790) | (41,814) | (47,772) | (59,517) |
Net loss | $ (10,287) | $ (11,675) | $ (13,308) | $ (12,080) | $ (11,563) | $ (10,993) | $ (16,521) | $ (11,423) | $ (47,350) | $ (50,500) | $ (61,850) |
Per share data: | |||||||||||
Net loss per common share - basic and diluted | $ (0.17) | $ (0.20) | $ (0.23) | $ (0.21) | $ (0.21) | $ (0.20) | $ (0.30) | $ (0.21) | $ (0.82) | $ (0.91) | $ (1.21) |