Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GenMark Diagnostics, Inc. | |
Entity Central Index Key | 0001487371 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 61,889,658 | |
Entity File Number | 001-34753 | |
Entity Tax Identification Number | 272053069 | |
Local Phone Number | 448-4300 | |
City Area Code | 760 | |
Entity Address, Address Line One | 5964 La Place Court | |
Entity Address, City or Town | Carlsbad | |
Entity Address, State or Province | California | |
Entity Address, Postal Zip Code | 92008 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 26,261,000 | $ 44,360,000 |
Short-term marketable securities | 20,805,000 | 9,100,000 |
Accounts receivable, net of allowances of $405 and $376, respectively | 25,721,000 | 16,759,000 |
Inventories, net | 9,927,000 | 11,301,000 |
Prepaid expenses and other current assets | 1,800,000 | 1,877,000 |
Total current assets | 84,514,000 | 83,397,000 |
Property and equipment, net | 19,580,000 | 20,419,000 |
Intangible assets, net | 1,284,000 | 1,432,000 |
Restricted cash | 758,000 | 758,000 |
Operating Lease, Right Of Use Asset, Noncurrent | 4,511,000 | 4,642,000 |
Other long-term assets | 945,000 | 825,000 |
Total assets | 111,592,000 | 111,473,000 |
Current liabilities: | ||
Accounts payable | 10,333,000 | 12,249,000 |
Accrued compensation | 7,396,000 | 7,493,000 |
Current portion of long-term debt | 3,431,000 | 0 |
Operating Lease, Liability, Current | 1,856,000 | 1,842,000 |
Other current liabilities | 3,793,000 | 2,732,000 |
Total current liabilities | 26,809,000 | 24,316,000 |
Long-term debt | 66,210,000 | 69,145,000 |
Operating Lease, Liability, Noncurrent | 5,513,000 | 5,796,000 |
Other noncurrent liabilities | 57,000 | 53,000 |
Total liabilities | 98,589,000 | 99,310,000 |
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 5,000 authorized, none issued | 0 | 0 |
Common stock, $0.0001 par value; 100,000 authorized; 61,333 and 60,255 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 6,000 | 6,000 |
Additional paid-in capital | 534,177,000 | 526,294,000 |
Accumulated deficit | (521,241,000) | (514,233,000) |
Accumulated other comprehensive income | 61,000 | 96,000 |
Total stockholders’ equity | 13,003,000 | 12,163,000 |
Total liabilities and stockholders’ equity | $ 111,592,000 | $ 111,473,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable - net of allowance | $ 405 | $ 376 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 61,333,000 | 60,255,000 |
Common stock, outstanding | 61,333,000 | 60,255,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Product revenue | $ 38,685 | $ 21,371 |
Other revenue | 57 | 162 |
Total revenue | 38,742 | 21,533 |
Cost of revenue | 22,590 | 15,670 |
Gross profit | 16,152 | 5,863 |
Operating expenses: | ||
Sales and marketing | 6,140 | 5,909 |
General and administrative | 8,938 | 4,521 |
Research and development | 6,079 | 6,343 |
Total operating expenses | 21,157 | 16,773 |
Loss from operations | (5,005) | (10,910) |
Other income (expense): | ||
Interest income | 132 | 133 |
Interest expense | (2,091) | (1,276) |
Other expense | (29) | (11) |
Total other expense | (1,988) | (1,154) |
Loss before provision for income taxes | (6,993) | (12,064) |
Income tax expense | 15 | 16 |
Net loss | $ (7,008) | $ (12,080) |
Net loss per share, basic and diluted | $ (0.12) | $ (0.21) |
Weighted average number of shares outstanding, basic and diluted | 60,666 | 56,581 |
Net loss | $ (7,008) | $ (12,080) |
Other comprehensive loss: | ||
Foreign currency translation adjustments, net of tax | (39) | (6) |
Net unrealized gains on marketable securities, net of tax | 4 | 2 |
Total other comprehensive loss | (35) | (4) |
Total comprehensive loss | $ (7,043) | $ (12,084) |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net loss | $ (7,008,000) | $ (12,080,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,799,000 | 1,812,000 |
Net amortization (accretion) of premiums/discounts on investments | 12,000 | (21,000) |
Amortization of deferred debt issuance costs | 596,000 | 366,000 |
Stock-based compensation | 5,620,000 | 2,544,000 |
Provision for bad debt | 29,000 | 0 |
Non-cash inventory adjustments | 434,000 | 634,000 |
Other non-cash adjustments | (79,000) | (16,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,979,000) | 2,355,000 |
Inventories | 920,000 | (131,000) |
Prepaid expenses and other assets | 51,000 | 0 |
Accounts payable | (1,558,000) | (1,043,000) |
Accrued compensation | (550,000) | (2,475,000) |
Other current and non-current liabilities | 1,108,000 | (126,000) |
Net cash used in operating activities | (7,605,000) | (8,181,000) |
Investing activities: | ||
Purchases of property and equipment | (952,000) | (333,000) |
Purchases of marketable securities | (14,613,000) | (12,014,000) |
Maturities of marketable securities | 2,900,000 | 7,800,000 |
Net cash used in investing activities | (12,665,000) | (4,547,000) |
Financing activities: | ||
Proceeds from issuance of common stock, net of offering costs | 2,160,000 | 0 |
Principal repayment of borrowings | (23,000) | (35,116,000) |
Proceeds from borrowings | 0 | 50,000,000 |
Payments associated with debt issuance | (100,000) | (3,588,000) |
Proceeds from stock option exercises | 103,000 | 430,000 |
Net cash provided by financing activities | 2,140,000 | 11,726,000 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 31,000 | 20,000 |
Net decrease in cash, cash equivalents, and restricted cash | (18,099,000) | (982,000) |
Cash, cash equivalents, and restricted cash at beginning of year | 45,118,000 | 37,044,000 |
Cash, cash equivalents, and restricted cash at end of period | 27,019,000 | 36,062,000 |
Non-cash investing and financing activities: | ||
Transfer of systems to property and equipment from inventory | 21,000 | 351,000 |
Property and equipment included in accounts payable | 874,000 | 36,000 |
Supplemental cash flow information: | ||
Cash paid for income taxes, net | 19,000 | 44,000 |
Cash paid for interest | $ 1,541,000 | $ 761,000 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital [Member] | Common Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] |
Shares, Outstanding | 56,240,000 | ||||
Stockholders' Equity Attributable to Parent | $ 33,547 | $ 500,344 | $ 6 | $ 80 | $ (466,883) |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 2,544 | 2,544 | |||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 71,000 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 430 | 430 | |||
Net loss | (12,080) | (12,080) | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 715,000 | ||||
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | (6) | (6) | |||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Reclassification Adjustments, after Tax | 2 | 2 | |||
Shares, Outstanding | 57,026,000 | ||||
Stockholders' Equity Attributable to Parent | 24,437 | 503,318 | $ 6 | 76 | (478,963) |
Shares, Outstanding | 60,255,000 | ||||
Stockholders' Equity Attributable to Parent | 12,163 | 526,294 | $ 6 | 96 | (514,233) |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 5,620 | 5,620 | |||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 21,000 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 103 | 103 | |||
Net loss | $ (7,008) | (7,008) | |||
Stock Issued During Period, Shares, New Issues | 363,120 | 363,000 | |||
Stock Issued During Period, Value, New Issues | $ 2,160 | 2,160 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 694,000 | ||||
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | (39) | (39) | |||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Reclassification Adjustments, after Tax | 4 | 4 | |||
Shares, Outstanding | 61,333,000 | ||||
Stockholders' Equity Attributable to Parent | $ 13,003 | $ 534,177 | $ 6 | $ 61 | $ (521,241) |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation GenMark Diagnostics, Inc., the Company or GenMark, was formed by Osmetech plc as a Delaware corporation in February 2010, and had no operations prior to its initial public offering, which was completed in June 2010. The Company is a provider of multiplex molecular diagnostic solutions designed to enhance patient care, improve key quality metrics, and reduce the total cost-of-care. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or U.S. GAAP, and applicable regulations of the U.S. Securities and Exchange Commission, or the SEC, and should be read in conjunction with the audited financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on March 2, 2020. These unaudited condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These adjustments are of a normal, recurring nature. Interim period operating results may not be indicative of the operating results for the full year or any future period. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company has experienced net losses and negative cash flows from operating activities since its inception and had an accumulated deficit of $521,241,000 as of March 31, 2020. The Company's ability to transition to profitable operations is dependent upon achieving a level of revenues adequate to support its cost structure through expanding its product offerings and consequently increasing its product revenues. As of March 31, 2020, the Company had available cash, cash equivalents, and marketable securities of $47,066,000 and working capital of $57,705,000 available to fund future operations. The Company has prepared cash flow forecasts which indicate, based on the Company's current cash resources available and working capital, that the Company will have sufficient resources to fund its operations for at least one year after the date the financial statements are issued. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the notes thereto. The Company’s significant estimates included in the preparation of the financial statements are related to accounts receivable, inventories, property and equipment, leases, intangible assets, employee-related compensation accruals, warranty liabilities, tax valuation accounts, and stock-based compensation. Actual results could differ from those estimates. Segment Information The Company currently operates in one reportable business segment, which encompasses the development, manufacturing, sales and support of instruments and molecular tests based on its proprietary eSensor ® detection technology. Substantially all of the Company’s operations and assets are in the United States. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or the FASB, or other standard setting bodies that the Company adopts as of the specified effective date. In 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 noncurrent 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 unaudited condensed consolidated statements of operations, cash flows, or stockholders' equity. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments , which introduced 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 Company adopted the new standard in the first quarter of 2020. The adoption of ASU 2016-13 did not have a material impact on the Company’s unaudited condensed consolidated financial statements for the three months ended March 31, 2020. Revenue The Company recognizes revenue from operations through the sale of products and other services. Product revenue comprises the sale of diagnostic tests and instruments, as well as related services. Revenue is recognized when control of products and services is transferred to the customer in an amount that reflects the consideration that the Company expects to receive from the customer in exchange for those products and services. This process involves identifying the contract with the customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. Revenue from product sales is recognized generally upon shipment to the end customer, which is when control of the product is deemed to be transferred. Invoicing typically occurs upon shipment and the term between invoicing and when payment is due is not significant. Revenue from instrument services is recognized as the services are rendered, typically evenly over the contract term. Revenue is recorded net of discounts and sales taxes collected on behalf of governmental authorities. Employee sales commissions are recorded as sales and marketing expense when incurred or amortized over the estimated contract term when resulting from new contract acquisition efforts. The Company allocates contract price to each performance obligation in proportion to its stand-alone selling price. The stand-alone selling price is determined by the Company's best estimate of stand-alone selling price using average selling prices over a rolling 12-month period along with a specific assessment of any unique circumstances of the contract. For those products for which there is limited sales history, the Company makes price determinations based on similar product sales data. The following table represents disaggregated revenue by source (in thousands): Three Months Ended 2020 2019 Revenue Source: ePlex product revenue $ 34,265 $ 15,651 XT-8 product revenue 4,420 5,720 Total product revenue 38,685 21,371 Other revenue 57 162 Total revenue $ 38,742 $ 21,533 Cash, Cash Equivalents and Marketable Securities Cash and cash equivalents consist of cash on deposit with banks, money market instruments, and certificates of deposit with original maturities of three months or less at the date of purchase. Marketable securities consist of certificates of deposits that mature in greater than three months. Marketable securities are accounted for as "available-for-sale" with the carrying amounts reported in the balance sheets stated at cost, which approximates their fair market value, with unrealized gains and losses, if any, reported as a separate component of stockholders' equity and included in comprehensive loss. Restricted Cash Restricted cash represents amounts designated for uses other than current operations and was $758,000 as of March 31, 2020 and December 31, 2019, respectively, which represented an amount 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 Unaudited Condensed Consolidated Balance Sheet to cash, cash equivalents, and restricted cash in the Unaudited Condensed Consolidated Statement of Cash Flows as of March 31, 2020 and 2019 (in thousands): March 31, 2020 2019 Cash and cash equivalents $ 26,261 $ 35,304 Restricted cash 758 758 Total cash, cash equivalents, and restricted cash $ 27,019 $ 36,062 Receivables Accounts receivable consists of amounts due to the Company from the sale of products and services to customers. Accounts receivable is recognized at amortized cost and is recorded net of an allowance for credit losses. The Company views its accounts receivable as a single portfolio and considers the period of delinquency, historical collection rates, and customer specific factors in determining its allowance for credit losses. The allowance for credit losses as of March 31, 2020 and 2019, comprised of the following (in thousands): Three Months Ended 2020 2019 Beginning balance $ 376 $ 75 Provision for credit losses 29 — Ending balance $ 405 $ 75 Product Warranties The Company generally offers a one-year warranty for instruments and a sixty-day warranty for consumables sold to customers. Factors that affect the Company’s warranty reserves include the number of units sold, historical and anticipated rates of warranty repairs, and the cost per repair. The Company periodically assesses the adequacy of its warranty reserve and adjusts the amount as appropriate. Intangible Assets Intangible assets consist 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 ten Impairment of Long-Lived Assets The Company assesses the recoverability of long-lived assets, including intangible assets, by periodically evaluating the carrying value whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If impairment is indicated, the Company writes down the carrying value of the asset to its estimated fair value. This fair value is primarily determined based on estimated discounted cash flows. Inventories Inventories are stated at the lower of cost (first-in, first-out) or net realizable value and include direct labor, materials, and manufacturing overhead. The Company periodically reviews inventory for evidence of slow-moving or obsolete parts, and writes inventory down to net realizable value, as needed. This write-down is based on management’s review of inventories on hand, compared to estimated future usage and sales, shelf-life assumptions, and assumptions about the likelihood of obsolescence. If actual market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Inventory impairment charges establish a new cost basis for inventory and charges are not reversed subsequently to income, even if circumstances later suggest that increased carrying amounts are recoverable. Property and Equipment, net Property, equipment and leasehold improvements are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which are identified below. Repair and maintenance costs are expensed as incurred. Machinery and laboratory equipment 3 - 5 years Instruments 4 - 5 years Office equipment 3 - 7 years Leasehold improvements Over the shorter of the remaining life of the lease or the useful economic life of the asset Leases The Company determines if an arrangement is a lease at inception. Operating leases are recorded in the consolidated balance sheets as noncurrent operating lease ROU assets and current and noncurrent operating lease liabilities. Finance leases are recorded in the consolidated balance sheets as other current assets and liabilities and other non-current assets and liabilities. ROU assets represent the Company’s right to use an underlying asset over the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease liabilities are recognized at the commencement date based on the present value of the Company’s lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of its lease payments. ROU assets are recognized at the commencement date based upon the initial measurement of the operating lease liability less any lease incentives received. The Company’s lease agreements can include both lease and non-lease components. The Company accounts for each lease component separately from the non-lease components within its lease agreements. Income Taxes Current income tax expense is the amount of income taxes expected to be payable for the current year. A deferred income tax liability or asset is established for the expected future tax consequences resulting from the differences in financial reporting and tax bases of assets and liabilities. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized. A full valuation allowance has been recorded against the Company’s net deferred tax assets due to the uncertainty surrounding the Company’s ability to utilize these assets in the future. The Company provides for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement standards prescribed by the authoritative guidance on income taxes. Amounts for uncertain tax positions are adjusted in periods when new information becomes available or when positions are effectively settled. The Company recognizes accrued interest related to uncertain tax positions as a component of income tax expense. A tax position that is more likely than not to be realized is measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with the taxing authority that has full knowledge of all relevant information. Measurement of a tax position that meets the more likely than not threshold considers the amounts and probabilities of the outcomes that could be realized upon settlement using the facts, circumstances and information available at the reporting date. |
Net Loss per Common Share
Net Loss per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Common Share | Net Loss per Common ShareBasic 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 each of the three months ended March 31, 2020 and 2019 did not include the effects of the following stock options and other equity awards which were outstanding as of the end of each period because the inclusion of these securities would have been anti-dilutive (in thousands): Three Months Ended 2020 2019 Options outstanding to purchase common stock 2,016 2,215 Other unvested equity awards 3,583 4,007 Total 5,599 6,222 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity awards may be granted at the discretion of the Compensation Committee of the Board of Directors under the Company's 2010 Equity Incentive Plan, as amended, or the 2010 Plan, in connection with the hiring or retention of personnel and are subject to certain conditions. The Company recognizes stock-based compensation expense related to stock options, restricted stock units, and market-based stock units granted to employees, directors, and non-employee advisors in exchange for services under the 2010 Plan, and employee stock purchases under the Company's Amended and Restated 2013 Employee Stock Purchase Plan, or the ESPP. Employee participation in the 2010 Plan is at the discretion of the Compensation Committee of the Board of Directors of the Company. Each equity award grant reduces the number of shares available for grant under the 2010 Plan. Stock-based compensation expense is recorded in cost of sales, sales and marketing, research and development, and general and administrative expense based on employees' respective function. During the three months ended March 31, 2020 and 2019, the Company recognized stock-based compensation expense of $5,620,000 and $2,544,000, respectively. Stock Options The fair value of stock options granted is derived from the Black-Scholes Option Pricing Model, which uses several judgment-based variables to calculate the expense. The inputs include the expected term of the stock option, the expected volatility, and other factors. • Expected Term. The expected term represents the period that the stock-based awards are expected to be outstanding and is determined by using the simplified method. • Expected Volatility . Expected volatility represents the estimated volatility in the Company’s stock price over the expected term of the stock option and is determined by review of the Company’s historical experience. • Expected Dividend . The Black-Scholes Option Pricing Model calls for a single expected dividend yield as an input. The Company has assumed no dividends as it has never paid dividends and has no current plans to do so. • Risk-Free Interest Rate. The risk-free interest rate used in the Black-Scholes Option Pricing Model is based on published U.S. Treasury rates in effect at the time of grant for periods corresponding with the expected term of the option. All stock options granted under the 2010 Plan are exercisable at a per share price equal to the closing quoted market price of a share of the Company’s common stock on the NASDAQ Global Market on the grant date and generally vest over a period of four ten The Company's stock option activity for the three months ended March 31, 2020 was as follows: Number of Weighted Average Exercise Price Outstanding at December 31, 2019 2,037,132 $ 9.53 Granted — $ — Exercised (21,000) $ 4.89 Cancelled — $ — Outstanding at March 31, 2020 2,016,132 $ 9.58 Vested and expected to vest at March 31, 2020 2,016,132 $ 9.58 Exercisable at March 31, 2020 2,016,132 $ 9.58 There were 2,016,132 stock options exercisable and outstanding as of March 31, 2020, which had a remaining weighted average contractual term of 3.01 years and an aggregate intrinsic value of $47,000. The Company has recognized all compensation expense related to stock options granted under the 2010 plan. Restricted Stock Units Restricted stock units granted under the 2010 Plan generally vest over a period of between one four The Company’s restricted stock unit activity for the three months ended March 31, 2020 was as follows: Number of Weighted Unvested at December 31, 2019 2,669,499 $ 6.42 Granted 1,541,873 $ 3.74 Vested (904,354) $ 5.66 Forfeited (248,455) $ 6.22 Unvested at March 31, 2020 3,058,563 $ 5.12 As of March 31, 2020, there was $12,238,000 of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted average period of 2.50 years. The total grant date fair value of restricted stock units that vested during the three months ended March 31, 2020 and 2019 was $3,430,000 and $3,059,000, respectively. Of the 904,354 restricted stock units that vested during the three months ended March 31, 2020, 375,889 relate to shares which we expect to issue to the Company's former CEO due to his departure from the Company. Market-Based Stock Units The Company granted market-based stock units in each of February 2020, 2019, and 2018, which may result in the recipient receiving shares of stock equal to 200% of the target number of units granted. The vesting and issuance of Company stock pursuant to market-based stock units depends on the Company's stock performance as compared to the NASDAQ Composite Index over the three The Company’s market-based stock unit activity for the three months ended March 31, 2020 was as follows: Number of Weighted Unvested at December 31, 2019 454,229 $ 9.40 Granted 321,250 $ 4.39 Vested (181,667) $ 9.52 Forfeited (69,378) $ 9.17 Unvested at March 31, 2020 524,434 $ 6.32 The 181,667 market-based stock units that vested during the three months ended March 31, 2020 relate to shares which we expect to issue to the Company's former CEO due to his departure from the Company. The fair value of these market-based stock units was estimated on the grant date using the Monte Carlo Simulation Valuation Model, which estimates the potential outcome of achieving the market conditions based on simulated future stock prices, with the following assumptions for the three months ended March 31, 2020 and 2019: Three Months Ended 2020 2019 Expected volatility 62 % 64 % Risk-free interest rate 1.16 % 2.50 % Expected dividend — % — % Weighted average fair value $ 4.39 $ 10.22 Employee Stock Purchase Plan The Company's stockholders originally approved the ESPP in May 2013. 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 shares to 1,750,000 shares. The price at which stock is purchased under the ESPP is equal to 85% of the fair market value of the Company's common stock on the first or the last day of the offering period, whichever is lower. Generally, each offering under the ESPP will be for a period of six months as determined by the Company's Board of Directors; provided that no offering period may exceed 27 months. Employees may invest up to 10% of their qualifying gross compensation through payroll deductions. In no event may an employee purchase more than 1,500 shares of common stock during any six-month offering period. As of March 31, 2020, 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 compensation; therefore, stock-based compensation expense related to the ESPP has been recorded during each of the three months ended March 31, 2020 and 2019. Stock-Based Compensation Expense Recognition Stock-based compensation was recognized in the unaudited condensed consolidated statements of comprehensive loss as follows (in thousands): Three Months Ended 2020 2019 Cost of revenue $ 239 $ 204 Sales and marketing 653 619 Research and development 420 423 General and administrative 4,308 1,298 Total stock-based compensation expense $ 5,620 $ 2,544 Stock-based compensation capitalized during the periods presented was not material and there was no unrecognized tax benefit related to stock-based compensation for either of the three months ended March 31, 2020 and 2019. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' EquityIn August 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 three months ended March 31, 2020, the Company sold 363,120 shares of common stock under the Distribution Agreement at a weighted average price per share of $6.13 resulting in aggregate gross proceeds of $2,227,000. The Company incurred $67,000 in commissions paid to Canaccord in connection with such sales. As of March 31, 2020, we can issue up to $19,714,000 in additional shares of our common stock under the Distribution Agreement. |
Condensed Consolidated Financia
Condensed Consolidated Financial Statement Details | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details The following tables show the Company's unaudited condensed consolidated financial statement details as of March 31, 2020 and December 31, 2019 (in thousands): Inventory March 31, 2020 December 31, 2019 Raw materials $ 3,401 $ 3,408 Work-in-process 3,856 3,776 Finished goods 2,670 4,117 Total inventories $ 9,927 $ 11,301 Property and Equipment, Net March 31, 2020 December 31, 2019 Property and equipment — at cost: Machinery and laboratory equipment $ 16,424 $ 16,551 Instruments 16,099 16,796 Office equipment 2,236 2,150 Leasehold improvements 11,907 11,896 Total property and equipment — at cost 46,666 47,393 Less: accumulated depreciation (27,086) (26,974) Property and equipment, net $ 19,580 $ 20,419 Accrued Warranty The following table shows changes in the Company's accrued warranties for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended 2020 2019 Beginning accrued warranty balance $ 279 $ 330 Warranty expenses incurred (541) (444) Provisions 625 487 Ending accrued warranty balance $ 363 $ 373 |
Intangible Assets, net
Intangible Assets, net | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, net | . Intangible Assets, Net Intangible assets as of each of March 31, 2020 and December 31, 2019 comprised the following (in thousands): March 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Licensed intellectual property $ 4,750 $ (3,466) $ 1,284 $ 4,750 $ (3,318) $ 1,432 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 electro-wetting technology in conjunction with the Company’s electrochemical detection technology. Intellectual property licenses have a weighted average remaining amortization period of 2.19 years as of March 31, 2020. Amortization expense for these licenses was $148,000 for each of the three months ended March 31, 2020 and 2019, respectively. Estimated future amortization expense for these licenses is as follows (in thousands): Fiscal Years Ending Future Amortization Expense Remaining in 2020 $ 443 2021 591 2022 250 Total $ 1,284 |
Long-term debt
Long-term debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt As of March 31, 2020 and December 31, 2019, long-term debt consisted of the following (in thousands): March 31, 2020 December 31, 2019 Term Loan 70,000 70,000 Final fee obligation 4,165 4,165 Unamortized issuance costs (4,524) (5,020) Total debt, net 69,641 69,145 Current portion of long-term debt 3,431 — Long-term debt $ 66,210 $ 69,145 Term Loans In February 2019, or the Effective Date, the Company entered into a Loan and Security Agreement, or the LSA, with Solar Capital Ltd. and certain other financial institutions, or, collectively, the Lenders. Pursuant to the LSA, the Lenders have provided the Company with $70,000,000 in a series of term loans, or, collectively, the Term Loans, of which $50,000,000 was funded on the Effective Date and an additional $20,000,000 was funded in December 2019 upon the Company's achievement of a designated amount of product revenues on a trailing six-month basis. The Term Loans under the LSA 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 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, 2022, or the Interest Only Period. Following the Interest Only Period, monthly installments of principal and interest under the Term Loans will be due until the original principal amount and applicable interest is fully repaid by February 1, 2023. Under the LSA, the Company is required to comply with certain affirmative and negative covenants, including, without limitation, delivering reports and notices relating to the Company’s financial condition and certain regulatory events and intellectual property matters, as well as limiting the creation of liens, the incurrence of indebtedness, and the making of certain investments, dividends, payments and acquisitions, other than as specifically permitted by the LSA. As of March 31, 2020, the Company was in compliance with all covenants under the LSA. The 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 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 LSA immediately due and payable and may exercise the other rights and remedies as set forth in the LSA. Debt Issuance Costs As of March 31, 2020 and December 31, 2019, the Company had $4,524,000 and $5,020,000, respectively, of unamortized debt issuance discount, which is offset against borrowings in long-term and short-term debt. Amortization of debt issuance costs was $596,000 and $366,000 for the three months ended March 31, 2020 and 2019, respectively. Amortization of debt issuance costs is included in interest expense in the Company's unaudited condensed consolidated statements of comprehensive loss for the periods presented. Letter of Credit In September 2012, the Company provided a $758,000 letter of credit issued by Banc of California to the landlord of its executive office facility in Carlsbad, California. This letter of credit was secured with $758,000 of restricted cash as of March 31, 2020 and December 31, 2019. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | LeasesThe Company has operating and finance lease agreements for its office, manufacturing, warehousing and laboratory space and for office equipment. Rent and operating expenses charged under these arrangements was $484,000 and $526,000 for the three months ended March 31, 2020 and 2019, respectively. The Company reported noncurrent operating lease ROU assets of $4,511,000 and $4,642,000, current operating lease liabilities of $1,856,000 and $1,842,000, and noncurrent operating lease liabilities of $5,513,000 and $5,796,000, respectively, as of March 31, 2020 and December 31, 2019. 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 4.73 years. As of March 31, 2020, the future minimum lease payments required under the Company's lease arrangements are as follows (in thousands): Fiscal Years Ending Future Minimum Lease Payments Remaining in 2020 $ 1,493 2021 2,015 2022 2,077 2023 1,939 2024 1,383 Thereafter 701 Total 9,608 Less: imputed interest (2,239) Total operating lease liabilities $ 7,369 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair Value of Financial Instruments The carrying amounts of financial instruments, such as cash equivalents, restricted cash, accounts receivable, and accounts payable approximate the related fair values due to the short-term maturities of these instruments. The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last is considered unobservable, to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table presents the financial instruments measured at fair value on a recurring basis and the valuation approach applied to each class of financial instruments as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 Quoted Prices Significant Significant Total Cash equivalents Money market funds $ 5,310 $ — $ — $ 5,310 U.S. government and agency securities — 1,500 — 1,500 Commercial paper — 1,196 — 1,196 Marketable securities Corporate notes and bonds — 14,913 — 14,913 U.S. government and agency securities — 3,502 — 3,502 Commercial paper — 2,390 — 2,390 Total $ 5,310 $ 23,501 $ — $ 28,811 December 31, 2019 Quoted Prices Significant Significant 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 |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable securities | Marketable Securities The following table summarizes the Company’s marketable securities as of each of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 14,917 $ — $ (4) $ 14,913 U.S. government and agency securities 3,493 9 — 3,502 Commercial paper 2,390 — — 2,390 Total $ 20,800 $ 9 $ (4) $ 20,805 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 $ 9,099 $ 2 $ (1) $ 9,100 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates, and tax planning opportunities available in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. As of March 31, 2020, the Company recorded a full valuation allowance against all of its net deferred tax assets due to the uncertainty surrounding the Company’s ability to utilize these assets in the future. Due to the Company's losses, it only records a tax provision or benefit related to uncertain tax positions and related interest and minimum tax payments or refunds. The Company recorded income tax expense of $15,000 and $16,000 for the three months ended March 31, 2020 and 2019. The Company is subject to taxation in the United States and in 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. The statute of limitations for the assessment and collection of income taxes related to other foreign tax returns varies by country. In the foreign countries where we have operations, these time periods generally range from three to five years after the year for which the tax return is due or the tax is assessed. In March 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, which includes modifications to the limitation on business interest expense and net operating loss provisions and provides a payment delay of employer payroll taxes during 2020 after the date of enactment. The Company is currently evaluating the impact of the CARES Act on its unaudited condensed consolidated financial statements. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsEffective May 3, 2020, we entered into the Separation Agreement and General Release, or the Separation Agreement, with our former President and Chief Executive Officer, Hany Massarany. Pursuant to the terms of the Separation Agreement and Mr. Massarany's Executive Employment Agreement dated April 5, 2011, Mr. Massarany will receive an annual bonus payment under our 2019 Bonus Plan of $257,500, less applicable withholdings. In addition, Mr. Massarany will receive a severance payment in the amount of $1,005,000, less applicable withholdings, and will be reimbursed for his group health insurance premiums pursuant to the terms of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, for one year following his separation date. All unvested restricted stock units held by Mr. Massarany as of his separation date will accelerate and vest and be settleable on October 1, 2020 in exchange for 375,889 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or U.S. GAAP, and applicable regulations of the U.S. Securities and Exchange Commission, or the SEC, and should be read in conjunction with the audited financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on March 2, 2020. These unaudited condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These adjustments are of a normal, recurring nature. Interim period operating results may not be indicative of the operating results for the full year or any future period. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company has experienced net losses and negative cash flows from operating activities since its inception and had an accumulated deficit of $521,241,000 as of March 31, 2020. The Company's ability to transition to profitable operations is dependent upon achieving a level of revenues adequate to support its cost structure through expanding its product offerings and consequently increasing its product revenues. As of March 31, 2020, the Company had available cash, cash equivalents, and marketable securities of $47,066,000 and working capital of $57,705,000 available to fund future operations. The Company has prepared cash flow forecasts which indicate, based on the Company's current cash resources available and working capital, that the Company will have sufficient resources to fund its operations for at least one year after the date the financial statements are issued. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the notes thereto. The Company’s significant estimates included in the preparation of the financial statements are related to accounts receivable, inventories, property and equipment, leases, intangible assets, employee-related compensation accruals, warranty liabilities, tax valuation accounts, and stock-based compensation. Actual results could differ from those estimates. |
Segment Information | Segment Information The Company currently operates in one reportable business segment, which encompasses the development, manufacturing, sales and support of instruments and molecular tests based on its proprietary eSensor ® detection technology. Substantially all of the Company’s operations and assets are in the United States. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or the FASB, or other standard setting bodies that the Company adopts as of the specified effective date. In 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 noncurrent 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 unaudited condensed consolidated statements of operations, cash flows, or stockholders' equity. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments , which introduced 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 Company adopted the new standard in the first quarter of 2020. The adoption of ASU 2016-13 did not have a material impact on the Company’s unaudited condensed consolidated financial statements for the three months ended March 31, 2020. |
Revenue from Contract with Customer | Revenue The Company recognizes revenue from operations through the sale of products and other services. Product revenue comprises the sale of diagnostic tests and instruments, as well as related services. Revenue is recognized when control of products and services is transferred to the customer in an amount that reflects the consideration that the Company expects to receive from the customer in exchange for those products and services. This process involves identifying the contract with the customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. Revenue from product sales is recognized generally upon shipment to the end customer, which is when control of the product is deemed to be transferred. Invoicing typically occurs upon shipment and the term between invoicing and when payment is due is not significant. Revenue from instrument services is recognized as the services are rendered, typically evenly over the contract term. Revenue is recorded net of discounts and sales taxes collected on behalf of governmental authorities. Employee sales commissions are recorded as sales and marketing expense when incurred or amortized over the estimated contract term when resulting from new contract acquisition efforts. The Company allocates contract price to each performance obligation in proportion to its stand-alone selling price. The stand-alone selling price is determined by the Company's best estimate of stand-alone selling price using average selling prices over a rolling 12-month period along with a specific assessment of any unique circumstances of the contract. For those products for which there is limited sales history, the Company makes price determinations based on similar product sales data. The following table represents disaggregated revenue by source (in thousands): Three Months Ended 2020 2019 Revenue Source: ePlex product revenue $ 34,265 $ 15,651 XT-8 product revenue 4,420 5,720 Total product revenue 38,685 21,371 Other revenue 57 162 Total revenue $ 38,742 $ 21,533 |
Cash, Cash Equivalents and Marketable Securities | Cash, Cash Equivalents and Marketable Securities Cash and cash equivalents consist of cash on deposit with banks, money market instruments, and certificates of deposit with original maturities of three months or less at the date of purchase. Marketable securities consist of certificates of deposits that mature in greater than three months. Marketable securities are accounted for as "available-for-sale" with the carrying amounts reported in the balance sheets stated at cost, which approximates their fair market value, with unrealized gains and losses, if any, reported as a separate component of stockholders' equity and included in comprehensive loss. |
Receivables | Receivables Accounts receivable consists of amounts due to the Company from the sale of products and services to customers. Accounts receivable is recognized at amortized cost and is recorded net of an allowance for credit losses. The Company views its accounts receivable as a single portfolio and considers the period of delinquency, historical collection rates, and customer specific factors in determining its allowance for credit losses. The allowance for credit losses as of March 31, 2020 and 2019, comprised of the following (in thousands): Three Months Ended 2020 2019 Beginning balance $ 376 $ 75 Provision for credit losses 29 — Ending balance $ 405 $ 75 |
Product Warranties | Product Warranties The Company generally offers a one-year warranty for instruments and a sixty-day warranty for consumables sold to customers. Factors that affect the Company’s warranty reserves include the number of units sold, historical and anticipated rates of warranty repairs, and the cost per repair. The Company periodically assesses the adequacy of its warranty reserve and adjusts the amount as appropriate. |
Intangible Assets | Intangible Assets Intangible assets consist 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 ten |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company assesses the recoverability of long-lived assets, including intangible assets, by periodically evaluating the carrying value whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If impairment is indicated, the Company writes down the carrying value of the asset to its estimated fair value. This fair value is primarily determined based on estimated discounted cash flows. |
Inventories | Inventories Inventories are stated at the lower of cost (first-in, first-out) or net realizable value and include direct labor, materials, and manufacturing overhead. The Company periodically reviews inventory for evidence of slow-moving or obsolete parts, and writes inventory down to net realizable value, as needed. This write-down is based on management’s review of inventories on hand, compared to estimated future usage and sales, shelf-life assumptions, and assumptions about the likelihood of obsolescence. If actual market conditions are less favorable than those projected by the Company, additional inventory write-downs may be |
Property and Equipment, net | Property and Equipment, net Property, equipment and leasehold improvements are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which are identified below. Repair and maintenance costs are expensed as incurred. Machinery and laboratory equipment 3 - 5 years Instruments 4 - 5 years Office equipment 3 - 7 years Leasehold improvements Over the shorter of the remaining life of the lease or the useful economic life of the asset |
Income Taxes | Income Taxes Current income tax expense is the amount of income taxes expected to be payable for the current year. A deferred income tax liability or asset is established for the expected future tax consequences resulting from the differences in financial reporting and tax bases of assets and liabilities. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized. A full valuation allowance has been recorded against the Company’s net deferred tax assets due to the uncertainty surrounding the Company’s ability to utilize these assets in the future. The Company provides for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement standards prescribed by the authoritative guidance on income taxes. Amounts for uncertain tax positions are adjusted in periods when new information becomes available or when positions are effectively settled. The Company recognizes accrued interest related to uncertain tax positions as a component of income tax expense. A tax position that is more likely than not to be realized is measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with the taxing authority that has full knowledge of all relevant information. Measurement of a tax position that meets the more likely than not threshold considers the amounts and probabilities of the outcomes that could be realized upon settlement using the facts, circumstances and information available at the reporting date. |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregation of Revenue | The following table represents disaggregated revenue by source (in thousands): Three Months Ended 2020 2019 Revenue Source: ePlex product revenue $ 34,265 $ 15,651 XT-8 product revenue 4,420 5,720 Total product revenue 38,685 21,371 Other revenue 57 162 Total revenue $ 38,742 $ 21,533 |
Property, Plant and Equipment | Property, equipment and leasehold improvements are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which are identified below. Repair and maintenance costs are expensed as incurred. Machinery and laboratory equipment 3 - 5 years Instruments 4 - 5 years Office equipment 3 - 7 years Leasehold improvements Over the shorter of the remaining life of the lease or the useful economic life of the asset Property and Equipment, Net March 31, 2020 December 31, 2019 Property and equipment — at cost: Machinery and laboratory equipment $ 16,424 $ 16,551 Instruments 16,099 16,796 Office equipment 2,236 2,150 Leasehold improvements 11,907 11,896 Total property and equipment — at cost 46,666 47,393 Less: accumulated depreciation (27,086) (26,974) Property and equipment, net $ 19,580 $ 20,419 |
Schedule of Cash and Cash Equivalents | The following table shows a reconciliation of the Company's cash and cash equivalents in the Unaudited Condensed Consolidated Balance Sheet to cash, cash equivalents, and restricted cash in the Unaudited Condensed Consolidated Statement of Cash Flows as of March 31, 2020 and 2019 (in thousands): March 31, 2020 2019 Cash and cash equivalents $ 26,261 $ 35,304 Restricted cash 758 758 Total cash, cash equivalents, and restricted cash $ 27,019 $ 36,062 |
Schedule of Credit Losses for Financing Receivables, Current | The allowance for credit losses as of March 31, 2020 and 2019, comprised of the following (in thousands): Three Months Ended 2020 2019 Beginning balance $ 376 $ 75 Provision for credit losses 29 — Ending balance $ 405 $ 75 |
Net Loss per Common Share (Tabl
Net Loss per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computations of diluted net loss per share | The calculations of diluted net loss per share for each of the three months ended March 31, 2020 and 2019 did not include the effects of the following stock options and other equity awards which were outstanding as of the end of each period because the inclusion of these securities would have been anti-dilutive (in thousands): Three Months Ended 2020 2019 Options outstanding to purchase common stock 2,016 2,215 Other unvested equity awards 3,583 4,007 Total 5,599 6,222 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation, stock options, activity | The Company's stock option activity for the three months ended March 31, 2020 was as follows: Number of Weighted Average Exercise Price Outstanding at December 31, 2019 2,037,132 $ 9.53 Granted — $ — Exercised (21,000) $ 4.89 Cancelled — $ — Outstanding at March 31, 2020 2,016,132 $ 9.58 Vested and expected to vest at March 31, 2020 2,016,132 $ 9.58 Exercisable at March 31, 2020 2,016,132 $ 9.58 |
Schedule of share-based compensation, restricted stock units, activity | The Company’s restricted stock unit activity for the three months ended March 31, 2020 was as follows: Number of Weighted Unvested at December 31, 2019 2,669,499 $ 6.42 Granted 1,541,873 $ 3.74 Vested (904,354) $ 5.66 Forfeited (248,455) $ 6.22 Unvested at March 31, 2020 3,058,563 $ 5.12 |
Schedule of share-based compensation, market based stock units, activity | The Company’s market-based stock unit activity for the three months ended March 31, 2020 was as follows: Number of Weighted Unvested at December 31, 2019 454,229 $ 9.40 Granted 321,250 $ 4.39 Vested (181,667) $ 9.52 Forfeited (69,378) $ 9.17 Unvested at March 31, 2020 524,434 $ 6.32 |
Schedule of share-based compensation, market based stock units, valuation assumptions | The fair value of these market-based stock units was estimated on the grant date using the Monte Carlo Simulation Valuation Model, which estimates the potential outcome of achieving the market conditions based on simulated future stock prices, with the following assumptions for the three months ended March 31, 2020 and 2019: Three Months Ended 2020 2019 Expected volatility 62 % 64 % Risk-free interest rate 1.16 % 2.50 % Expected dividend — % — % Weighted average fair value $ 4.39 $ 10.22 |
Schedule of employee service share-based compensation, allocation of recognized period costs | Stock-based compensation was recognized in the unaudited condensed consolidated statements of comprehensive loss as follows (in thousands): Three Months Ended 2020 2019 Cost of revenue $ 239 $ 204 Sales and marketing 653 619 Research and development 420 423 General and administrative 4,308 1,298 Total stock-based compensation expense $ 5,620 $ 2,544 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | The Company's stock option activity for the three months ended March 31, 2020 was as follows: Number of Weighted Average Exercise Price Outstanding at December 31, 2019 2,037,132 $ 9.53 Granted — $ — Exercised (21,000) $ 4.89 Cancelled — $ — Outstanding at March 31, 2020 2,016,132 $ 9.58 Vested and expected to vest at March 31, 2020 2,016,132 $ 9.58 Exercisable at March 31, 2020 2,016,132 $ 9.58 |
Condensed Consolidated Financ_2
Condensed Consolidated Financial Statement Details (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventories | Inventory March 31, 2020 December 31, 2019 Raw materials $ 3,401 $ 3,408 Work-in-process 3,856 3,776 Finished goods 2,670 4,117 Total inventories $ 9,927 $ 11,301 |
Property and equipment, net | Property, equipment and leasehold improvements are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which are identified below. Repair and maintenance costs are expensed as incurred. Machinery and laboratory equipment 3 - 5 years Instruments 4 - 5 years Office equipment 3 - 7 years Leasehold improvements Over the shorter of the remaining life of the lease or the useful economic life of the asset Property and Equipment, Net March 31, 2020 December 31, 2019 Property and equipment — at cost: Machinery and laboratory equipment $ 16,424 $ 16,551 Instruments 16,099 16,796 Office equipment 2,236 2,150 Leasehold improvements 11,907 11,896 Total property and equipment — at cost 46,666 47,393 Less: accumulated depreciation (27,086) (26,974) Property and equipment, net $ 19,580 $ 20,419 |
Accrued warranty | Accrued Warranty The following table shows changes in the Company's accrued warranties for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended 2020 2019 Beginning accrued warranty balance $ 279 $ 330 Warranty expenses incurred (541) (444) Provisions 625 487 Ending accrued warranty balance $ 363 $ 373 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | Intangible assets as of each of March 31, 2020 and December 31, 2019 comprised the following (in thousands): March 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Licensed intellectual property $ 4,750 $ (3,466) $ 1,284 $ 4,750 $ (3,318) $ 1,432 |
Summary of estimated future amortization expense | Estimated future amortization expense for these licenses is as follows (in thousands): Fiscal Years Ending Future Amortization Expense Remaining in 2020 $ 443 2021 591 2022 250 Total $ 1,284 |
Long-term debt (Tables)
Long-term debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | As of March 31, 2020 and December 31, 2019, long-term debt consisted of the following (in thousands): March 31, 2020 December 31, 2019 Term Loan 70,000 70,000 Final fee obligation 4,165 4,165 Unamortized issuance costs (4,524) (5,020) Total debt, net 69,641 69,145 Current portion of long-term debt 3,431 — Long-term debt $ 66,210 $ 69,145 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Operating lease payments | As of March 31, 2020, the future minimum lease payments required under the Company's lease arrangements are as follows (in thousands): Fiscal Years Ending Future Minimum Lease Payments Remaining in 2020 $ 1,493 2021 2,015 2022 2,077 2023 1,939 2024 1,383 Thereafter 701 Total 9,608 Less: imputed interest (2,239) Total operating lease liabilities $ 7,369 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets measured at fair value on a recurring basis | The following table presents the financial instruments measured at fair value on a recurring basis and the valuation approach applied to each class of financial instruments as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 Quoted Prices Significant Significant Total Cash equivalents Money market funds $ 5,310 $ — $ — $ 5,310 U.S. government and agency securities — 1,500 — 1,500 Commercial paper — 1,196 — 1,196 Marketable securities Corporate notes and bonds — 14,913 — 14,913 U.S. government and agency securities — 3,502 — 3,502 Commercial paper — 2,390 — 2,390 Total $ 5,310 $ 23,501 $ — $ 28,811 December 31, 2019 Quoted Prices Significant Significant 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 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable securities, gross unrealized gains/losses | March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 14,917 $ — $ (4) $ 14,913 U.S. government and agency securities 3,493 9 — 3,502 Commercial paper 2,390 — — 2,390 Total $ 20,800 $ 9 $ (4) $ 20,805 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 $ 9,099 $ 2 $ (1) $ 9,100 |
Organization and Basis of Pre_4
Organization and Basis of Presentation - Revenue disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue | ||
Product revenue | $ 38,685 | $ 21,371 |
License and other revenue | 57 | 162 |
Total revenue | 38,742 | 21,533 |
ePlex Revenue | ||
Disaggregation of Revenue | ||
Product revenue | 34,265 | 15,651 |
XT-8 Revenue | ||
Disaggregation of Revenue | ||
Product revenue | $ 4,420 | $ 5,720 |
Organization and Basis of Pre_5
Organization and Basis of Presentation - Property and equipment (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Property and Equipment | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Machinery and laboratory equipment | Minimum | |
Property and Equipment | |
Property, Plant, and Equipment, Useful Life | 3 years |
Machinery and laboratory equipment | Maximum | |
Property and Equipment | |
Property, Plant, and Equipment, Useful Life | 5 years |
Instruments | Minimum | |
Property and Equipment | |
Property, Plant, and Equipment, Useful Life | 4 years |
Instruments | Maximum | |
Property and Equipment | |
Property, Plant, and Equipment, Useful Life | 5 years |
Office equipment | Minimum | |
Property and Equipment | |
Property, Plant, and Equipment, Useful Life | 3 years |
Office equipment | Maximum | |
Property and Equipment | |
Property, Plant, and Equipment, Useful Life | 7 years |
Leasehold improvements | |
Property and Equipment | |
Property, Plant and Equipment, Estimated Useful Lives | Over the shorter of the remaining life of the lease or the useful economic life of the asset |
Organization and Basis of Pre_6
Organization and Basis of Presentation - Additional information (Details Textual) | 3 Months Ended | ||
Mar. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated deficit | $ (521,241,000) | $ (514,233,000) | |
Cash, cash equivalents, and marketable securities | 47,066,000 | ||
Working Capital | $ 57,705,000 | ||
Sufficient capital to fund its operations | one | ||
Number of Reportable Segments | Segment | 1 | ||
Restricted cash | $ 758,000 | $ 758,000 | $ 758,000 |
Instruments | |||
Product Warranty Liability | |||
Product warranty period | one-year | ||
Reagents | |||
Product Warranty Liability | |||
Product warranty period | sixty-day |
Organization and Basis of Pre_7
Organization and Basis of Presentation - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Text Block [Abstract] | |||
Operating Lease, Liability, Current | $ 1,856 | $ 1,842 | $ 1,780 |
Operating Lease, Liability, Noncurrent | 5,513 | 5,796 | 6,832 |
Operating Lease, Right Of Use Asset, Noncurrent | $ 4,511 | $ 4,642 | $ 5,097 |
Organization and Basis of Pre_8
Organization and Basis of Presentation - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 26,261 | $ 44,360 | $ 35,304 | |
Restricted cash | 758 | 758 | 758 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total | $ 27,019 | $ 45,118 | $ 36,062 | $ 37,044 |
Organization and Basis of Pre_9
Organization and Basis of Presentation - Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Net, Current | $ 25,721 | $ 16,759 | |
Allowance for Doubtful Accounts Receivable, Beginning Balance | 376 | $ 75 | |
Provision for bad debt | 29 | 0 | |
Allowance for Doubtful Accounts Receivable, Ending Balance | $ 405 | $ 75 |
Net Loss per Common Share (Deta
Net Loss per Common Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Computations of diluted net loss per share | ||
Antidilutive securities excluded from calculation | 5,599 | 6,222 |
Employee Stock Option | ||
Computations of diluted net loss per share | ||
Antidilutive securities excluded from calculation | 2,016 | 2,215 |
Other unvested equity awards | ||
Computations of diluted net loss per share | ||
Antidilutive securities excluded from calculation | 3,583 | 4,007 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock awards activity (Details) - 2010 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, outstanding at December 31, 2017, shares | 2,037,132 | |||
Options, granted, shares | 0 | |||
Options, exercised, shares | (21,000) | |||
Options, cancelled, shares | 0 | |||
Options, outstanding at June 30, 2018, shares | 2,016,132 | |||
Options, vested and expected to vest, shares | 2,016,132 | |||
Options, exercisable, shares | 2,016,132 | |||
Options, outstanding at December 31, 2017, weighted average exercise price | $ 9.58 | $ 9.58 | $ 9.53 | |
Options, granted, weighted average exercise price | 0 | |||
Options, exercised, weighted average exercise price | 4.89 | |||
Options, cancelled, weighted average exercise price | 0 | |||
Options, outstanding at June 30, 2018, weighted average exercise price | 9.58 | |||
Options, vested and expected to vest, weighted average exercise price | 9.58 | |||
Options, exercisable, weighted average exercise price | $ 9.58 | |||
Options, outstanding, weighted average remaining contractual term | 3 years 3 days | |||
Options, outstanding, intrinsic value | $ 47 | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity award other than options, unvested at December 31, 2017, shares | 2,669,499 | |||
Equity award other than options, granted, shares | 1,541,873 | |||
Equity award other than options, vested, shares | (904,354) | |||
Equity award other than options, cancelled, shares | (248,455) | |||
Equity award other than options, unvested at June 30, 2018, shares | 3,058,563 | |||
Equity award other than options, unvested, weighted average grant date fair value | $ 6.42 | |||
Equity award other than options, granted, weighted average grant date fair value | 3.74 | |||
Equity award other than options, vested, weighted average grant date fair value | 5.66 | |||
Equity award other than options, cancelled, weighted average grant date fair value | 6.22 | |||
Equity award other than options, unvested, weighted average grant date fair value | $ 5.12 | |||
Equity award other than options, vested in period, fair value | $ 3,430 | $ 3,059 | ||
Nonvested award, compensation cost not yet recognized | 12,238 | |||
Nonvested award, compensation cost not yet recognized, weighted average period for recognition | 2 years 6 months | |||
Market-based share unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity award other than options, unvested at December 31, 2017, shares | 454,229 | |||
Equity award other than options, granted, shares | 321,250 | |||
Equity award other than options, vested, shares | (181,667) | |||
Equity award other than options, cancelled, shares | (69,378) | |||
Equity award other than options, unvested at June 30, 2018, shares | 524,434 | |||
Equity award other than options, unvested, weighted average grant date fair value | $ 9.40 | |||
Equity award other than options, granted, weighted average grant date fair value | 4.39 | $ 10.22 | ||
Equity award other than options, vested, weighted average grant date fair value | 9.52 | |||
Equity award other than options, cancelled, weighted average grant date fair value | 9.17 | |||
Equity award other than options, unvested, weighted average grant date fair value | $ 6.32 | |||
Nonvested award, compensation cost not yet recognized | $ 1,602 | |||
Nonvested award, compensation cost not yet recognized, weighted average period for recognition | 2 years 3 months |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation assumptions (Details) - 2010 Equity Incentive Plan - Market-based share unit - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value assumptions, expected volatility rate | 62.00% | 64.00% |
Fair value assumptions, risk free interest rate | 1.16% | 2.50% |
Fair value assumptions, expected dividend rate | 0.00% | 0.00% |
Equity award other than options, granted, weighted average grant date fair value | $ 4.39 | $ 10.22 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity award other than options, granted, weighted average grant date fair value | 4.39 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity award other than options, granted, weighted average grant date fair value | $ 10.22 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense recognition (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation | $ 5,620,000 | $ 2,544,000 |
Allocated share-based compensation expense, capitalized amount | 0 | 0 |
Allocated share-based compensation expense, tax benefit | 0 | 0 |
2010 Equity Incentive Plan | Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated share-based compensation expense | 239,000 | 204,000 |
2010 Equity Incentive Plan | Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated share-based compensation expense | 653,000 | 619,000 |
2010 Equity Incentive Plan | Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated share-based compensation expense | 420,000 | 423,000 |
2010 Equity Incentive Plan | General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated share-based compensation expense | $ 4,308,000 | $ 1,298,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional information (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | May 22, 2013 | |
2010 Equity Incentive Plan | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years | |
Award expiration period | 10 years | |
2010 Equity Incentive Plan | Restricted Stock Units (RSUs) | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
2010 Equity Incentive Plan | Restricted Stock Units (RSUs) | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years | |
2010 Equity Incentive Plan | Market-based 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 | 650,000 | |
Number of shares available for grant | 730,916 | |
Discount from market price, offering date | 85.00% | |
Maximum number of shares per employee | 1,500 | |
Maximum employee subscription rate | 10.00% | |
2013 Employee Stock Purchase Plan | Employee stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Offering period | 6 months | |
2013 Employee Stock Purchase Plan | Employee stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Offering period | 27 months | |
2013 Employee Stock Purchase Plan Amended and Restated | Employee stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 1,750,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesRateshares | |
Equity [Abstract] | |
Maximum ATM Offering Amount | $ 35,000,000 |
Underwriters commission | Rate | 3.00% |
Stock Issued During Period, Shares, New Issues | shares | 363,120 |
Gross Proceeds from Issuance of Common Stock | $ 2,227,000 |
Payments of Stock Issuance Costs | $ 67,000 |
Weighted Average Price Per Share | $ / shares | $ 6.13 |
Common stock, value available for future issuance | $ 19,714,000 |
Condensed Consolidated Financ_3
Condensed Consolidated Financial Statement Details - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Summary of inventory on hand | ||
Raw materials | $ 3,401 | $ 3,408 |
Work-in-process | 3,856 | 3,776 |
Finished goods | 2,670 | 4,117 |
Total | $ 9,927 | $ 11,301 |
Condensed Consolidated Financ_4
Condensed Consolidated Financial Statement Details - Property and equipment, net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property and Equipment | ||
Property and equipment — at cost: | $ 46,666 | $ 47,393 |
Less: accumulated depreciation | (27,086) | (26,974) |
Property and equipment, net | 19,580 | 20,419 |
Machinery and laboratory equipment | ||
Property and Equipment | ||
Property and equipment — at cost: | 16,424 | 16,551 |
Instruments | ||
Property and Equipment | ||
Property and equipment — at cost: | 16,099 | 16,796 |
Office equipment | ||
Property and Equipment | ||
Property and equipment — at cost: | 2,236 | 2,150 |
Leasehold improvements | ||
Property and Equipment | ||
Property and equipment — at cost: | $ 11,907 | $ 11,896 |
Condensed Consolidated Financ_5
Condensed Consolidated Financial Statement Details - Accrued warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | ||
Beginning accrued warranty balance | $ 279 | $ 330 |
Warranty expenses incurred | (541) | (444) |
Provisions | 625 | 487 |
Ending accrued warranty balance | $ 363 | $ 373 |
Intangible Assets, net - Compon
Intangible Assets, net - Components of gross and net intangible asset balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 148 | |
Finite-lived intangible assets | ||
Net carrying amount | $ 1,284 | |
Finite-lived intangible assets, remaining amortization period | 2 years 2 months 8 days | |
Intellectual Property | ||
Finite-lived intangible assets | ||
Gross carrying amount | $ 4,750 | $ 4,750 |
Accumulated amortization | (3,466) | (3,318) |
Net carrying amount | $ 1,284 | $ 1,432 |
Intangible Assets, net - Future
Intangible Assets, net - Future amortization expense (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Summary of estimated future amortization expense | |
Remaining in 2020 | $ 443 |
2021 | 591 |
2022 | 250 |
Net carrying amount | $ 1,284 |
Long-term debt (Details)
Long-term debt (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 16, 2019 | Feb. 01, 2019 | |
Debt Instrument | |||||
Final fee obligation | $ 4,165,000 | $ 4,165,000 | |||
Unamortized debt issuance costs | (4,524,000) | (5,020,000) | |||
Long-term debt, current maturities | (3,431,000) | 0 | |||
Long-term debt, excluding current maturities | 66,210,000 | 69,145,000 | |||
Amortization of deferred debt issuance costs | $ 596,000 | $ 366,000 | |||
Debt instrument, maturity date | Feb. 1, 2023 | ||||
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 plus (b) 5.90% per annum | ||||
Term Loans, Debt Facility, Maximum Borrowing Capacity | $ 70,000,000 | ||||
Letters of credit outstanding, amount | $ 758,000 | ||||
Restricted cash | 758,000 | 758,000 | 758,000 | ||
Line of credit facility, maximum borrowing capacity | 70,000,000 | 70,000,000 | |||
Term Loans [Member] | |||||
Debt Instrument | |||||
Amortization of deferred debt issuance costs | $ 596,000 | $ 366,000 | |||
Debt instrument, interest rate, stated percentage | 8.40% | ||||
Debt Instrument, Face Amount | $ 50,000,000 | 0 | |||
Term Loan - $50 million at 8.4% interest | |||||
Debt Instrument | |||||
Long-term debt | 70,000,000 | 70,000,000 | |||
Total debt, net | |||||
Debt Instrument | |||||
Long-term debt | 69,641,000 | 69,145,000 | |||
Long-term debt, current maturities | (3,431,000) | 0 | |||
Long-term debt, excluding current maturities | $ 66,210,000 | $ 69,145,000 | |||
Tranche 1 Loan [Member] | |||||
Debt Instrument | |||||
Term Loans, Debt Facility, Maximum Borrowing Capacity | $ 50,000,000 | ||||
Tranche 2 Loan [Member] | |||||
Debt Instrument | |||||
Debt instrument, interest only period end | Feb. 28, 2022 | ||||
Debt instrument, interest rate, stated percentage | 2.51% | ||||
Term Loans, Debt Facility, Maximum Borrowing Capacity | $ 20,000,000 | ||||
Tranche 2 Loan [Member] | Intercontinental Exchange Benchmark Administration Rate [Member] | |||||
Debt Instrument | |||||
Debt Instrument, Basis Spread on Variable Rate | 5.90% |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Schedule of future minimum lease payments | |
Remaining in 2020 | $ 1,493 |
2021 | 2,015 |
2022 | 2,077 |
2023 | 1,939 |
2024 | 1,383 |
Thereafter | 701 |
Total | 9,608 |
Less: imputed interest | (2,239) |
Total operating lease liabilities | $ 7,369 |
Leases - Additional information
Leases - Additional information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Rent and operating expenses | $ 484,000 | $ 526,000 | ||
Operating Lease, Right Of Use Asset, Noncurrent | 4,511,000 | $ 4,642,000 | $ 5,097,000 | |
Operating Lease, Liability, Current | 1,856,000 | 1,842,000 | 1,780,000 | |
Operating Lease, Liability, Noncurrent | $ 5,513,000 | $ 5,796,000 | $ 6,832,000 | |
Operating Lease, Weighted Average Discount Rate, Percent | 11.20% | |||
Operating Lease, Weighted Average Remaining Lease Term | 4 years 8 months 23 days |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair value, assets measured on a recurring basis | ||
Marketable securities | $ 20,805 | $ 9,100 |
Assets, Fair Value Disclosure | 28,811 | 28,747 |
Level 1 | ||
Fair value, assets measured on a recurring basis | ||
Assets, Fair Value Disclosure | 5,310 | 19,647 |
Level 2 | ||
Fair value, assets measured on a recurring basis | ||
Assets, Fair Value Disclosure | 23,501 | 9,100 |
Level 3 | ||
Fair value, assets measured on a recurring basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
U.S. government and agency securities | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 1,500 | |
Marketable securities | 3,502 | |
U.S. government and agency securities | Level 1 | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 0 | |
Marketable securities | 0 | |
U.S. government and agency securities | Level 2 | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 1,500 | |
Marketable securities | 3,502 | |
U.S. government and agency securities | Level 3 | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 0 | |
Marketable securities | 0 | |
Corporate notes and bonds | ||
Fair value, assets measured on a recurring basis | ||
Marketable securities | 14,913 | 9,100 |
Corporate notes and bonds | Level 1 | ||
Fair value, assets measured on a recurring basis | ||
Marketable securities | 0 | 0 |
Corporate notes and bonds | Level 2 | ||
Fair value, assets measured on a recurring basis | ||
Marketable securities | 14,913 | 9,100 |
Corporate notes and bonds | Level 3 | ||
Fair value, assets measured on a recurring basis | ||
Marketable securities | 0 | 0 |
Commercial paper | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 1,196 | |
Marketable securities | 2,390 | |
Commercial paper | Level 1 | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 0 | |
Marketable securities | 0 | |
Commercial paper | Level 2 | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 1,196 | |
Marketable securities | 2,390 | |
Commercial paper | Level 3 | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 0 | |
Marketable securities | 0 | |
Money Market Funds [Member] | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 5,310 | 19,647 |
Money Market Funds [Member] | Level 1 | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 5,310 | 19,647 |
Money Market Funds [Member] | Level 2 | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 0 | 0 |
Money Market Funds [Member] | Level 3 | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | $ 0 | $ 0 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Marketable securities | ||
Amortized Cost | $ 20,800 | $ 9,099 |
Gross unrealized gains | 9 | 2 |
Gross unrealized losses | (4) | (1) |
Estimated fair value | 20,805 | 9,100 |
Corporate notes and bonds | ||
Marketable securities | ||
Amortized Cost | 14,917 | 9,099 |
Gross unrealized gains | 0 | 2 |
Gross unrealized losses | (4) | (1) |
Estimated fair value | 14,913 | $ 9,100 |
U.S. government and agency securities | ||
Marketable securities | ||
Amortized Cost | 3,493 | |
Gross unrealized gains | 9 | |
Gross unrealized losses | 0 | |
Estimated fair value | 3,502 | |
Commercial paper | ||
Marketable securities | ||
Amortized Cost | 2,390 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Estimated fair value | $ 2,390 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 15 | $ 16 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Apr. 25, 2020USD ($)shares |
Restricted Stock Units (RSUs) | |
Subsequent Event [Line Items] | |
Award accelerated vesting (in shares) | shares | 375,889 |
Deferred Bonus | |
Subsequent Event [Line Items] | |
Deferred compensation arrangement, cash award | $ 257,500 |
Employee Severance | |
Subsequent Event [Line Items] | |
Deferred compensation arrangement, cash award | $ 1,005,000 |