Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FLGT | ||
Entity Registrant Name | Fulgent Genetics, Inc. | ||
Entity Central Index Key | 0001674930 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 18,265,083 | ||
Entity Public Float | $ 22.4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 6,736 | $ 6,490 |
Marketable securities | 24,298 | 19,994 |
Trade accounts receivable, net of allowance for doubtful accounts of $590 and $287, as of December 31, 2018 and 2017, respectively | 5,948 | 4,005 |
Other current assets | 2,561 | 2,438 |
Total current assets | 39,543 | 32,927 |
Marketable securities, long term | 6,386 | 14,883 |
Equity method investments | 1,512 | 1,937 |
Fixed assets, net | 6,446 | 7,272 |
Deferred tax asset | 126 | |
Other long-term assets | 17 | 39 |
Total assets | 53,904 | 57,184 |
Current liabilities | ||
Accounts payable | 1,313 | 2,089 |
Accrued liabilities | 1,425 | 911 |
Total current liabilities | 2,738 | 3,000 |
Other long-term liabilities | 14 | 6 |
Total liabilities | 2,752 | 3,006 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity | ||
Common stock, $0.0001 par value per share, 50,000 and 50,000 shares authorized, 18,172 and 17,847 shares issued and outstanding at December 31, 2018 and 2017, respectively. | 2 | 2 |
Preferred stock, $0.0001 par value per share, 1,000 shares authorized, no shares issued or outstanding at December 31, 2018 and 2017 | ||
Additional paid-in capital | 114,203 | 111,884 |
Accumulated other comprehensive income loss | (35) | (44) |
Accumulated deficit | (63,018) | (57,664) |
Total stockholders’ equity | 51,152 | 54,178 |
Total liabilities and stockholders’ equity | $ 53,904 | $ 57,184 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 590 | $ 287 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 18,172,000 | 17,847,000 |
Common stock, shares outstanding | 18,172,000 | 17,847,000 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 21,351 | $ 18,730 |
Cost of revenue | 10,697 | 8,551 |
Gross profit | 10,654 | 10,179 |
Operating expenses: | ||
Research and development | 5,534 | 4,223 |
Selling and marketing | 4,652 | 4,205 |
General and administrative | 5,538 | 5,233 |
Total operating expenses | 15,724 | 13,661 |
Operating loss | (5,070) | (3,482) |
Interest and other income, net | 434 | 481 |
Loss before income taxes and equity loss in investee | (4,636) | (3,001) |
Provision for (benefit from) income taxes | 36 | (1,015) |
Loss before equity loss in investee | (4,672) | (1,986) |
Equity loss in investee | (935) | (524) |
Net loss | $ (5,607) | $ (2,510) |
Net loss per common share: | ||
Basic and Diluted | $ (0.31) | $ (0.14) |
Weighted-average common shares: | ||
Basic and Diluted | 17,978 | 17,739 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (5,607) | $ (2,510) |
Other comprehensive income (loss) | ||
Foreign currency translation gain (loss) | (44) | 81 |
Net unrealized gain (loss) on marketable securities, net of tax | 53 | (22) |
Comprehensive loss | $ (5,598) | $ (2,451) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders'/ Members' Equity - USD ($) $ in Thousands | Total | Stockholders' Equity | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning Balance at Dec. 31, 2016 | $ 54,479 | $ 2 | $ 109,734 | $ (103) | $ (55,154) |
Beginning Balance, Shares at Dec. 31, 2016 | 17,676 | ||||
Equity-based compensation | 2,119 | 2,119 | |||
Exercise of common stock options | 31 | 31 | |||
Exercise of common stock options, Shares | 81 | ||||
Restricted stock awards, Shares | 90 | ||||
Other comprehensive income, net | 59 | 59 | |||
Net loss | (2,510) | (2,510) | |||
Ending Balance at Dec. 31, 2017 | $ 54,178 | $ 2 | 111,884 | (44) | (57,664) |
Ending Balance, Shares at Dec. 31, 2017 | 17,847,000 | 17,847 | |||
Equity-based compensation | $ 2,304 | 2,304 | |||
Exercise of common stock options | 15 | 15 | |||
Exercise of common stock options, Shares | 40 | ||||
Restricted stock awards, Shares | 285 | ||||
Cumulative effect of accounting change | 327 | 327 | |||
Cumulative tax effect of accounting change | (74) | (74) | |||
Other comprehensive income, net | 9 | 9 | |||
Net loss | (5,607) | (5,607) | |||
Ending Balance at Dec. 31, 2018 | $ 51,152 | $ 2 | $ 114,203 | $ (35) | $ (63,018) |
Ending Balance, Shares at Dec. 31, 2018 | 18,172,000 | 18,172 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flow from operating activities: | ||
Net loss | $ (5,607) | $ (2,510) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Equity-based compensation | 2,304 | 2,119 |
Depreciation | 2,163 | 1,728 |
Loss (gain) on disposal of fixed asset | 88 | 5 |
Amortization of premium of marketable securities | 297 | 370 |
Provision for bad debt | 309 | 160 |
Deferred income taxes | 36 | (336) |
Equity loss in investee | 935 | 524 |
Other | 44 | (15) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,970) | 214 |
Other current assets | 91 | (1,537) |
Accounts payable | 102 | (363) |
Taxes payable | (124) | |
Accrued liabilities | 533 | 1,098 |
Other current liabilities | (2) | |
Cash (used in) provided by operating activities | (675) | 1,331 |
Cash flow from investing activities: | ||
Purchases of fixed assets | (2,322) | (2,895) |
Sale of marketable securities | 3,781 | |
Purchase of marketable securities | (24,187) | (11,659) |
Maturities of marketable securities | 27,969 | 11,185 |
Purchase of equipment contributed to Equity Method Investee | (510) | (2,461) |
Net cash provided by (used in) investing activities | 950 | (2,049) |
Cash flow from financing activities: | ||
Payment of initial public offering costs | (801) | |
Proceeds from exercise of stock options | 15 | 31 |
Net cash provided by (used in) financing activities | 15 | (770) |
Effect of exchange rate changes on cash and cash equivalents | (44) | 81 |
Net increase (decrease) in cash | 246 | (1,407) |
Cash balance at beginning of period | 6,490 | 7,897 |
Cash balance at end of period | 6,736 | 6,490 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | 1 | 757 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Fixed assets included in accounts payable | $ 85 | $ 1,014 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Note 1. Overview and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). These financial statements include the assets, liabilities, revenues and expenses of all wholly-owned subsidiaries and entities in which the Company has a controlling financial interest or is deemed to be the primary beneficiary. In determining whether the Company is the primary beneficiary of an entity, the Company applies a qualitative approach that determines whether it has both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to that entity. The Company uses the equity method to account for its investments in entities that it does not control, but in which it has the ability to exercise significant influence over operating and financial policies. All significant intercompany accounts and transactions are eliminated from the accompanying consolidated financial statements. Nature of the Business Fulgent Genetics, Inc., together with its subsidiaries (collectively referred to as the “Company,” unless otherwise noted or the context otherwise requires), is a growing technology company with an initial focus on offering comprehensive genetic testing to provide physicians with clinically actionable diagnostic information they can use to improve the quality of patient care (the “Diagnostics business”). The Company has developed a proprietary technology platform that allows it to offer a broad and flexible test menu and continually expand and improve its proprietary genetic reference library. The Company’s test menu currently includes single-gene tests and pre-established, multi-gene, disease-specific panels that collectively test for many genetic conditions, including various cancers, cardiovascular diseases, neurological disorders and pediatric conditions. The Company’s existing customer base consists primarily of hospitals and medical institutions, which are typically frequent and high-volume users of genetic tests and which often pay the Company directly for its tests. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments, assumptions and decisions that affect the reported amounts and related disclosures, including the selection of appropriate accounting policies and the assumptions on which to base accounting estimates. In making these estimates and assumptions and reaching these decisions, the Company applies judgment based on its understanding and analysis of the relevant circumstances, including historical data and experience available at the date of the accompanying consolidated financial statements, as well as various other factors management believes to be reasonable under the circumstances. Actual results could differ from these estimates. On an on-going basis, management evaluates its estimates, primarily those related to: (i) revenue recognition criteria, (ii) accounts receivable and allowances for doubtful accounts, (iii) the useful lives of fixed assets, (iv) estimates of tax liabilities and (v) the valuation of equity-based awards. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents include cash held in banks and money market accounts. Cash equivalents are stated at fair value. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at the amount the Company expects to collect. The Company performs credit evaluations of its customers and generally does not require collateral. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information that assists in management’s evaluation. The Company writes off accounts receivable following a review by management and a determination that the receivable is uncollectible. A roll-forward of the activity in the Company’s allowance for doubtful accounts is as follows: December 31, 2018 2017 (in thousands) Allowance for doubtful accounts at beginning of year $ 287 $ 151 Bad debt expense 309 160 Deductions (6 ) (24 ) Allowance for doubtful accounts at end of year $ 590 $ 287 Marketable Securities All marketable securities, which consist of debt securities, United States Treasury and U.S. government agency securities, have been classified as “available for sale” and are carried at fair value. Unrealized gains and losses, net of any related tax effects, are excluded from earnings and are included in other comprehensive loss and reported as a separate component of stockholders’ equity until realized. Realized gains and losses and declines in value judged to be other than temporary, if any, on marketable securities are included in other income (expense), net. The cost of any marketable securities sold is based on the specific-identification method. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity. Interest on marketable securities is included in interest income. In accordance with the Company’s investment policy, management invests to diversify credit risk and only invests in securities with high credit quality, including U.S. government securities. The Company regularly evaluates whether declines in the fair value of its investments below their cost are other than temporary. The evaluation includes consideration of the cause of the impairment, including the creditworthiness of the security issuers, the number of securities in an unrealized loss position, the severity and duration of the unrealized losses, whether the Company has the intent to sell the securities, and whether it is more likely than not that the Company will be required to sell the securities before the recovery of their amortized cost basis. If the Company determines that the decline in fair value of an investment is below its accounting basis and this decline is other than temporary, the Company would reduce the carrying value of the security it holds and record a loss for the amount of such decline. The Company has not recorded any realized losses or declines in value judged to be other than temporary on its investments. Fair Value of Financial Instruments The Company's financial instruments consist principally of cash and cash equivalents, marketable securities, accounts receivable and accounts payable. The carrying amounts of certain of these financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximate fair value due to their short maturities. Fair value of marketable securities is disclosed in Note 4, Fair Value Measurements, to the accompanying consolidated financial statements. Concentrations of Credit Risk, Customers and Suppliers Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, accounts receivable and marketable securities, which consist of debt securities, and cash equivalents. As of December 31, 2018, substantially all of the Company’s cash and cash equivalents were deposited in accounts at financial institutions, and amounts may exceed federally insured limits. Management believes that the Company is not exposed to significant credit risk due to the financial strength of the depository institutions in which its cash and cash equivalents are held. In certain periods, a small number of customers has accounted for a significant portion of the Company’s revenue. Aggregating customers that are under common control or are affiliates, one customer comprised 13% of total revenue in the year ended December 31, 2018, and three customers comprised 14%, 12% and 10% of total revenue in the year ended December 31, 2017. One customer comprised 18% and 13% of total accounts receivable as of December 31, 2018 and 2017, respectively. Revenue from the U.S. government was less than 10% of total revenue in each of the years ended December 31, 2018 and 2017. The Company relies on a limited number of suppliers for certain laboratory substances used in the chemical reactions incorporated into its processes, referred to as reagents, as well as for the sequencers and various other equipment and materials it uses in its laboratory operations. In particular, the Company relies on a sole supplier for the next generation sequencers and associated reagents it uses to perform its genetic tests and as the sole provider of maintenance and repair services for these sequencers. The Company’s laboratory operations would be interrupted if it encounters delays or difficulties securing these reagents, sequencers, other equipment or materials or maintenance and repair services, which could occur for a variety of reasons, including if the Company needs a replacement or temporary substitute for any of its limited or sole suppliers and is not able to locate and make arrangements with an acceptable replacement or temporary substitute. The Company believes there are currently only a few other manufacturers that are capable of supplying and servicing some of the equipment and other materials necessary for its laboratory operations, including sequencers and various associated reagents. Equity Method Investments The Company uses the equity method to account for investments in entities that it does not control, but in which it has the ability to exercise significant influence over operating and financial policies. The Company's proportionate share of the net income or loss of these companies is included in consolidated net earnings. Judgments regarding the level of influence over each equity method investment include consideration of key factors such as the Company's ownership interest, representation on the board of directors or other management body and participation in policy-making decisions. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that a decline in value has occurred that is other than temporary. Evidence considered in this evaluation includes, but would not necessarily be limited to, the financial condition and near-term prospects of the investee, recent operating trends and forecasted performance of the investee, market conditions in the geographic area or industry in which the investee operates and the Company’s strategic plans for holding the investment in relation to the period of time expected for an anticipated recovery of its carrying value. If the investments is determined to have a decline in value deemed to be other than temporary it is written down to estimated fair value. Fixed Assets Fixed assets are recorded at cost, net of accumulated depreciation and amortization. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets, which is generally between three and five years. Leasehold improvements are capitalized and amortized over the shorter of their expected lives or the applicable lease term, including renewal options, if available. Major replacements and improvements are capitalized, while general repairs and maintenance are expensed as incurred. Software for Internal Use The Company capitalizes certain costs incurred to purchase computer software for internal use. These costs include purchased software packages for Company use. Capitalized computer software costs are amortized over the estimated useful life of the computer software, which is generally three years. Internally developed software costs are capitalized after management has committed to funding the project, it is probable that the project will be completed and the software will be used for its intended function. Costs that do not meet that criteria and costs incurred on projects in the preliminary and post-implementation phases are expensed as incurred. Impairment of Long-Lived Assets The Company evaluates the carrying amount of its long-lived assets whenever events or changes in circumstances indicate that the assets may not be recoverable. An impairment loss would be recognized when estimated future cash flows expected to result from the use of an asset and its eventual disposition is less than the carrying amount of the asset. To date, there have been no such impairment losses. Reporting Segment and Geographic Information Reporting segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The Company views its operations and manages its business in one reporting segment. Revenue Recognition The Company generates revenue from sales of its genetic tests. The Company currently receives payments from: hospitals and medical institutions with which it has direct-bill relationships; research institutions; individual patients and third-party payors. The Company’s test results are delivered electronically, and as such there are no shipping and handling fees incurred by it or billed to customers. The Company’s sales are typically exempt from state sales taxation due to the nature of the results delivered. As a result, the Company currently does not charge customers state sales tax and continues to assess. Effective January 1, 2018, the Company began recognizing revenue in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The Company adopted ASC 606 utilizing the modified retrospective method, meaning the cumulative effect of applying the standard was recognized to opening retained earnings as of January 1, 2018. To reflect the impact of the adoption, the Company recorded an adjustment of $327,000 to beginning accumulated deficit and accounts receivable and an adjustment of ($74,000) to beginning accumulated deficit and deferred taxes. Under ASC 606, the Company recognizes revenue in an amount that reflects the consideration to which it expects to be entitled in exchange for the transfer of promised goods or services to customers. To determine revenue recognition for contracts with customers that are within the scope of ASC 606, the Company performs the following steps: (1) identifies the contract with the customer, (2) identifies the performance obligations in the contract, (3) determines the transaction price, (4) allocates the transaction price to the performance obligations in the contract, and (5) recognizes revenue when (or as) the entity satisfies a performance obligation. Performance Obligations Genetic Testing Services Clinical – Institutional and Patient Direct Pay Our clinical institutional contracts included within genetic testing services typically have a single performance obligation to deliver genetic testing services to the ordering facility or patient. Some arrangements involve the delivery of genetic testing services to research institutions, which we refer to as “sequencing as a service.” In arrangements with hospitals, patients who pay directly, medical or research institutions, the transaction price is stated within the contract and is therefore fixed consideration. For most of our clinical volume, we identified the hospital, patients, medical or research institutions as the customer in Step 1 of the model and have determined a contract exists with those customers in Step 1. As these contracts typically have a single performance obligation, no allocation of the transaction price is required in Step 4 of the model. Control over genetic testing services is transferred to our ordering facility at a point in time. Specifically, we determined the customer obtains control of the promised service upon our delivery of test results. Clinical – Insurance Our clinical insurance contracts included within genetic testing services typically have a single performance obligation to deliver genetic testing services to the ordering facility or patient. For most of our clinical insurance volume, we identified the patient as the customer in Step 1 of the model and have determined a contract exists with the patient in Step 1. In arrangements with insurance patients, the transaction price is stated within the contract, however, we accept payments from third-party payors that are less than the contractually stated price and is therefore variable consideration. In developing the estimate of variable consideration, we utilize the expected value method under a portfolio approach. Our estimate requires significant judgment and is developed using historical reimbursement data from payors and patients, as well as known current reimbursement trends not reflected in the historical data. As these contracts typically have a single performance obligation, no allocation of the transaction price is required in Step 4 of the model. Control over genetic testing services is transferred to our ordering physicians at a point in time. Specifically, we determined the customer obtains control of the promised service upon our delivery of the test results. Certain incremental costs pertaining to both clinical insurance and institutional, such as commissions, are incurred in obtaining clinical contracts. Historically contract costs have not been significant to the financial statements. We have elected to utilize the practical expedient to expense incremental costs of obtaining a contract that meet the capitalization criteria, as the amortization period of any contract acquisition asset would be one year or less due to the short-term nature of the customer life. Significant Judgments and Contract Estimates Genetic Testing Services Accounting for clinical insurance contracts includes estimation of the transaction price, defined as the amount we expect to be entitled to receive in exchange for providing the services under the contract. Due to our out-of-network status with the majority of payors, estimation of the transaction price represents variable consideration. In order to estimate variable consideration, we utilize a portfolio approach in which payors with similar reimbursement experience are grouped into portfolios. Our estimates of variable consideration are based primarily on historical reimbursement data. Certain assumptions will also be adjusted based on known and anticipated factors not reflected in the historical reimbursement data. We monitor these accrual estimates at each reporting period based on actual cash collections in order to assess whether a revision to the estimate is required. Both the initial accrual estimate and any subsequent revision to the estimate contain uncertainty and require the use of judgment in the estimation of the transaction price and application of the constraint for variable consideration. If actual results in the future vary from the Company’s estimates, the Company will adjust these estimates, which would affect revenue and earnings in the period such variances become known. Contract Liabilities Payments received in advance of services rendered are recorded as contract liabilities and are subsequently recognized as revenue in the period in which the applicable revenue recognition criteria, as described above, are met. Contract liabilities consists primarily of revenue from tests performed for customers that have a limited time period following an initial order to request certain follow-up tests at no additional charge. Overhead Expenses The Company allocates overhead expenses, such as rent and utilities, to cost of revenue and operating expense categories based on headcount. As a result, an overhead expense allocation is reflected in cost of revenue and each operating expense category. Cost of Revenue Cost of revenue reflects the aggregate costs incurred in delivering test results and consists of: personnel costs, including salaries, employee benefit costs, bonuses and equity-based compensation expenses; costs of laboratory supplies; depreciation of laboratory equipment; amortization of leasehold improvements and allocated overhead. Costs associated with performing tests are recorded as tests are processed. Research and Development Expenses Research and development expenses represent costs incurred to develop the Company’s technology and future tests. These costs consist of: personnel costs, including salaries, employee benefit costs, bonuses and equity-based compensation expenses; laboratory supplies; consulting costs and allocated overhead. The Company expenses all research and development costs in the periods in which they are incurred. Selling and Marketing Expenses Selling and marketing expenses consist of: personnel costs, including salaries, employee benefit costs, bonuses and equity-based compensation expenses; customer service expenses; direct marketing expenses; educational and promotional expenses; market research and analysis and allocated overhead. The Company expenses all selling and marketing costs as incurred. General and Administrative Expenses General and administrative expenses include executive, finance and accounting, legal and human resources functions. These expenses consist of: personnel costs, including salaries, employee benefit costs, bonuses and equity-based compensation expenses; audit and legal expenses; consulting costs and allocated overhead. The Company expenses all general and administrative expenses as incurred. Income Taxes Income taxes are accounted for under the asset and liability method. The Company provides for federal, state and foreign income taxes currently payable, as well as for taxes deferred due to timing differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in income tax rates is recognized as income or expense in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount with a greater than 50% likelihood of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. For income tax positions where it is not more likely than not that a tax benefit will be sustained, the Company does not recognize a tax benefit in its consolidated financial statements. The Company records interest and penalties related to uncertain tax positions, if applicable, as a component of income tax expense. The Company’s predecessor, Fulgent LLC, was organized as a limited liability company and its members elected to have Fulgent LLC treated as a partnership for income tax purposes. As a result, for all periods prior to the Reorganization, all taxable income or loss and tax credits of the Company generally were reflected in the personal income tax returns of Fulgent LLC’s members, and no provision for federal and state income taxes was provided in the accompanying consolidated financial statements. The Company became a taxable entity upon completion of the Reorganization on September 30, 2016. Equity-Based Compensation The Company grants various types of equity-based awards to its employees, consultants and non-employee directors. Equity-based compensation costs are reflected in the accompanying statements of operations based upon each award recipient’s role with the Company. The Company primarily grants to its employees restricted stock unit (RSU) awards that generally vest over a specified period of time upon the satisfaction of service-based conditions. The Company measures compensation expense for equity-based awards granted to employees based on the fair value of the award on the grant date of the award. Compensation expense for employee RSU awards with a service-based vesting condition is recognized ratably over the vesting period of the award. Foreign Currency Translation and Foreign Currency Transactions The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in other comprehensive loss in the accompanying consolidated statements of stockholders’ equity. The Company’s subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, and inventories, property and nonmonetary assets and liabilities at historical rates. Gains and losses from these remeasurements were not significant in the year ended December 31, 2018. Comprehensive Loss Comprehensive loss is comprised of net loss and other comprehensive loss. Other comprehensive loss consists of unrealized loss on marketable securities and foreign currency translation adjustments from its subsidiaries not using the U.S. dollar as their functional currency. The Company did not have reclassifications from other comprehensive loss to the loss during the year ended December 31, 2018. Basic and Diluted Net Loss per Share Basic net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and dilutive common share equivalents outstanding during the period. Because the Company has reported a net loss attributable to common stockholders for all periods presented, diluted net loss per common share is the same as basic net loss per common share for these periods. Emerging Growth Company Pursuant to the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), a company constituting an “emerging growth company” is, among other things, entitled to rely upon certain reduced reporting requirements. The Company is an emerging growth company, but has irrevocably elected not to take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for public companies that are not emerging growth companies. Accounting Pronouncements Recently Adopted ASU 2014-09 The Company adopted ASU 2014-09 Revenue from Contracts with Customers, and all related amendments (collectively codified as ASC 606) on January 1, 2018 utilizing the modified retrospective method, meaning the cumulative effect of applying the standard to all contracts completed as of the date of initial application was recognized to opening retained earnings as of January 1, 2018. Comparative information from prior periods has not been restated and continues to be reported under the accounting standards in effect for those periods. Financial Statement Impact of Adoption ASC 606 The cumulative effect of changes made to the Condensed Consolidated Balance Sheet at January 1, 2018 for the adoption of ASC 606 were as follows: Balance at December 31, 2017 Adjustments Due to ASC 606 Balance at January 1, 2018 (in thousands) Condensed Consolidated Balance Sheet data Assets: Accounts receivable $ 4,005 $ 327 $ 4,332 Deferred tax asset / (liability) 126 (74 ) 52 Equity: Accumulated deficit $ (57,664 ) $ 253 $ (57,411 ) In accordance with ASC 606 requirements under the modified retrospective method of adoption, the disclosure of the impacts to condensed consolidated financial statements for the years ended December 31, 2018 were as follows: As reported Adjustments Due to ASC 606 Balances without the adoption of Topic 606 (in thousands) Condensed Consolidated Balance Sheet data Assets: Accounts receivable $ 5,948 $ (20 ) $ 5,928 Deferred tax asset — — — Equity: Accumulated deficit $ (63,018 ) $ (20 ) $ (63,038 ) For the Year Ended December 31, 2018 As reported Adjustments Due to ASC 606 Balances without the adoption of Topic 606 (in thousands, except per share data) Condensed Consolidated Statement of Operations data: Total revenue $ 21,351 $ 307 * $ 21,658 Provision for (benefit from) income taxes 36 74 110 Net income (loss) (5,607 ) 233 (5,374 ) Net income (loss) per common share: Basic & Diluted $ (0.31 ) $ 0.01 $ (0.30 ) * Revenue under ASC 605 would have been greater than under ASC 606 because the amount of cash receipts in 2018 from current and prior period insurance billings was greater than the estimated collections for services delivered and billed in 2018. There was no impact on the condensed consolidated statements of cash flows for the year ended December 31, 2018. Disaggregation of Revenue The Company classifies its customers into three payor types, Clinical Institutional, Patients who pay directly or Clinical Insurance, as we believe this best depicts how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. The following table summarizes revenue from contracts with customers by payor type for the year ended December 31, 2018. Year ended December 31, 2018 (in thousands) Genetic Testing Services by payor Institutional $ 19,980 Patient 547 Insurance 824 Total Revenue $ 21,351 There was no material variable consideration recognized in the current period that relates to performance obligations that were completed in the prior period. Transaction Price Allocated to Future Performance Obligations ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as December 31, 2018. ASC 606 provides certain practical expedients that limit the requirement to disclose the aggregate amount of transaction price allocated to unsatisfied performance obligations. The Company applied the practical expedient to not disclose the amount of transaction price allocated to unsatisfied performance obligations when the performance obligation is part of a contract that has an original expected duration of one year or less. The Company does not have material future obligations associated with Genetic Testing Services that extend beyond one year. ASU No. 2016-01 In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments, including a provision that requires equity investments (except for investments accounted for under the equity method of accounting) to be measured at fair value, with changes in fair value recognized in current earnings. The ASU was effective for the Company in the first quarter of 2018, with early adoption permitted. The adoption of this update did not have a material impact on our Consolidated Financial Statements. ASU No. 2016-15 In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230). The standard clarifies the way certain cash receipts and cash payments are classified with the objective of reducing the existing diversity in practice. The standard was effective for fiscal years and interim periods beginning after December 15, 2017. The adoption of this update did not have a material impact on our Consolidated Financial Statements. Recent Accounting Pronouncements We evaluate all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) for consideration of their applicability. ASUs not included in our disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on our Consolidated Financial Statements. ASU No. 2016-02 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases. The FASB has issued subsequent amendments to improve and clarify the implementation guidance of Topic 842. The new standard requires an entity to recognize leases on the balance sheet and to disclose key information about the entity's leasing arrangements. The Company adopted this standard at the beginning of fiscal year 2019 using the modified retrospective transition approach, including certain practical expedients, for all leases existing at January 1, 2019, the effective and initial application date. The estimated impact of the adoption to the Company's consolidated financial statements included the recognition of operating lease liabilities of approximately $3.1 million with corresponding right-of-use assets of approximately the same amount based on the present value of the remaining lease payments for existing operating leases. This standard is not expected to have a material impact on the Company's results of operations. The Company has revised its relevant policies and procedures, as applicable, to meet the new accounting, reporting and disclosure requirements of Topic 842 and has updated internal controls accordingly. ASU No. 2016-13 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13 replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginnin |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | Note 3. Marketable Securities The Company’s marketable securities consisted of the following: December 31, 2018 Amortized Cost Basis Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Marketable securities: Short-term Money market accounts $ 2,692 $ — $ — $ 2,692 United States Treasury 990 — — 990 U.S. government agency securities 790 — — 790 Corporate debt securities 22,613 1 (96 ) 22,518 Less: Cash equivalents (2,692 ) — — (2,692 ) Total short-term marketable securities 24,393 1 (96 ) 24,298 Corporate debt securities 6,383 11 (8 ) 6,386 Total long-term marketable securities 6,383 11 (8 ) 6,386 $ 30,776 $ 12 $ (104 ) $ 30,684 December 31, 2017 Amortized Cost Basis Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Marketable securities: Short-term Money market accounts $ 723 $ — $ — $ 723 Corporate debt securities 20,040 2 (48 ) 19,994 Less: Cash equivalents (723 ) — — (723 ) Total short-term marketable securities 20,040 2 (48 ) 19,994 Corporate debt securities 14,999 — (116 ) 14,883 Total long-term marketable securities 14,999 — (116 ) 14,883 $ 35,039 $ 2 $ (164 ) $ 34,877 Management determined that the gross unrealized losses of $104,000 on the Company’s marketable securities as of December 31, 2018 were temporary in nature. Gross unrealized losses on the Company’s marketable securities were $164,000 as of December 31, 2017. The Company currently does not intend to sell these securities prior to maturity and does not consider these investments to be other-than-temporarily impaired as of December 31, 2018. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4. Fair Value Measurements The authoritative guidance on fair value measurements establishes a framework with respect to measuring assets and liabilities at fair value on a recurring basis and non-recurring basis. Under the framework, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as of the measurement date. The framework also establishes a three-tier hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability and are developed based on the best information available in the circumstances. The hierarchy consists of the following three levels: Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2: Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Inputs are unobservable inputs for the asset or liability. The following tables present information about the Company’s financial assets measured at fair value on a recurring basis, based on the three-tier fair value hierarchy: December 31, 2018 Total Level 1 Level 2 Level 3 (in thousands) Marketable securities: Corporate debt securities $ 28,904 $ — $ 28,904 $ — United States Treasury 990 — 990 — U.S. government agency securities 790 — 790 — Money market accounts 2,692 2,692 — — Total marketable securities $ 33,376 $ 2,692 $ 30,684 $ — December 31, 2017 Total Level 1 Level 2 Level 3 (in thousands) Marketable securities: Corporate debt securities $ 34,877 $ — $ 34,877 $ — Money market accounts 723 723 — — Total marketable securities $ 35,600 $ 723 $ 34,877 $ — The Company’s Level 1 assets include money market instruments and are valued based upon observable market prices. Level 2 assets consist of United States Treasury, U.S. government agency securities, and corporate debt securities. Level 2 securities are valued based upon observable inputs that include reported trades, broker/dealer quotes, bids and offers. As of December 31, 2018 and 2017, the Company had no investments that were measured using unobservable (Level 3) inputs. There were no transfers between fair value measurement levels during the years ended December 31, 2018 and 2017. Gross unrealized gains or losses for cash equivalents and marketable securities as of December 31, 2018 were not material. As of December 31, 2018, unrealized losses for securities in an unrealized loss position for more than 12 months were $84,000. During the years ended December 31, 2018 and 2017, the Company did not recognize other-than-temporary impairment losses related to its marketable securities. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Fixed Assets | Note 5. Fixed Assets Major classes of fixed assets consisted of the following: December 31, Useful Lives 2018 2017 (in thousands) Computer hardware 3 Years $ 1,579 $ 1,435 Computer software 3 Years 495 463 Medical lab equipment 5 Years 8,136 7,145 Furniture and fixtures 5 Years 233 159 Leasehold improvements Shorter of lease term or estimated useful life 802 763 Assets not yet placed in service 1,087 1,074 Total 12,332 11,039 Less: Accumulated depreciation (5,886 ) (3,767 ) Property and equipment, net $ 6,446 $ 7,272 Depreciation expense on fixed assets totaled $2.2 million and $1.7 million for the years ended December 31, 2018 and 2017, respectively. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Current Assets | Note 6. Other Current Assets Other current assets consisted of the following: December 31, 2018 2017 (in thousands) Reagents $ 314 $ 231 Prepaid expenses 706 624 Prepaid income taxes 1,251 1,313 Marketable securities interest receivable 220 204 Other receivable 70 66 Total $ 2,561 $ 2,438 Reagents are used for DNA sequencing applications in the Company’s DNA sequencing equipment. |
Reporting Segment and Geographi
Reporting Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Reporting Segment and Geographic Information | Note 7. Reporting Segment and Geographic Information The Company views its operations and manages its business in one reporting segment. All long-lived assets were located in the United States during the years ended December 31, 2018 and 2017. Revenue by region was as follows: December 31, 2018 2017 (in thousands) Revenue: United States $ 12,579 $ 9,024 Foreign: Canada 3,984 4,091 People's Republic of China ("PRC") 109 2,614 Other Countries 4,679 3,001 Total $ 21,351 $ 18,730 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8. Commitments and Contingencies Operating Leases The Company has commitments under various non-cancelable operating leases with varying terms through August 2023. The Company has options to renew some of these leases for three years after their expiration. Amounts Year ending December 31, (in thousands) 2019 $ 560 2020 559 2021 550 2022 558 Thereafter 1,429 Total minimum lease payments $ 3,656 The Company’s headquarters is located in Temple City, California, which is comprised of various corporate offices and a laboratory certified under the Clinical Laboratory Improvement Amendments of 1988 (“CLIA”), accredited by the College of American Pathologists (“CAP”) and licensed by the State of California Department of Public Health (“CA DPH”). Additional offices are located in El Monte, California and Atlanta, Georgia and are used for certain research and development, customer service, report generation and other administrative activities. Rent expense for the years ended December 31, 2018 and 2017 was approximately $418,000 and $250,000, respectively. In January 2018, we entered into a lease renewal of our headquarters in Temple City, California, which commenced on February 1, 2018 and expires January 31, 2021. The total annual rent under the lease is approximately $269,000. In June 2018, we entered into a lease of office space in El Monte, California, which commenced on August 13, 2018 and expires on August 31, 2023. The total annual rent under the lease is approximately $279,000. FF Gene Biotech See Note 15 for a description of the Company’s commitments related to its joint venture, FF Gene Biotech (as defined in Note 15). Purchase Obligations As of December 31, 2018, the Company had non-cancelable purchase obligations of $5.7 million for reagents, equipment and maintenance agreements. Contingencies From time to time, the Company may be subject to legal proceedings and claims arising in the ordinary course of business. Management does not believe that the outcome of any of these matters will have a material effect on the Company’s consolidated financial position, results of operations or cash flows. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Note 9. Stockholders’ Equity Components of Comprehensive Income (Loss) Comprehensive income (loss) consists of two components: net income (loss), and other comprehensive income (loss) (“OCI”). OCI refers to revenue, expenses, gains and losses that, in conformity with U.S. GAAP, are recorded as in the Company’s consolidated statements of stockholders’ equity but are excluded from the Company’s consolidated statements of operations, and as a result, its net income (loss). The Company’s OCI consists of foreign currency translation adjustments from its subsidiaries not using the U.S. dollar as their functional currency and unrealized gains and losses on marketable securities classified as available-for-sale, net of taxes. The tax effects related to unrealized holding gains (losses) on marketable securities were $21,000 and $37,000 as of December 31, 2018 and 2017, respectively. Certificate of Incorporation In accordance with the Company’s amended certificate of incorporation, the Company is authorized to issue 50,000,000 shares of common stock, with a par value of $0.0001 per share, and 1,000,000 shares of preferred stock, with a par value of $0.0001 per share. In May 2017, the Company amended its certificate of incorporation to reduce its authorized shares from 200,000,000 to 50,000,000. As of December 31, 2018, there were no outstanding shares of preferred stock. |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | Note 10. Equity-Based Compensation The Company has included equity-based compensation expense as part of cost of revenue and operating expenses in the accompanying consolidated statements of operations as follows: Year Ended December 31, 2018 2017 (in thousands) Cost of revenue $ 523 $ 479 Research and development 732 807 Selling and marketing 460 318 General and administrative 589 515 Total $ 2,304 $ 2,119 Award Activity The below discussions of equity-based award activity, including all nomenclature, share numbers and weighted-average exercise prices, have been adjusted to give retroactive effect to the Reorganization as if it occurred at the beginning of each period presented. Option Awards The following table summarizes activity for options to acquire shares of the Company’s common stock in the years ended December 31, 2018 and 2017: Number of Shares Subject to Options (in thousands) Weighted- Average Exercise Price Weighted- Average Grant Date Fair Value Weighted- Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) (1) Balance at December 31, 2016 556 $ 0.85 9.0 $ 5,976 Granted — Exercised (81 ) $ 0.38 $ 4.19 $ 578 Canceled (10 ) $ 4.91 $ 6.32 Balance at December 31, 2017 465 $ 0.84 8.0 $ 1,785 Granted 10 $ 3.93 $ 2.92 Exercised (40 ) $ 0.38 $ 5.80 Canceled (18 ) $ 8.19 $ 8.47 Balance at December 31, 2018 417 $ 0.64 7.1 $ 1,116 Exercisable as of December 31, 2018 285 $ 0.53 7.0 $ 786 (1) Aggregate intrinsic value is calculated as the difference between (i) the exercise price of options that, as of the applicable date, have an exercise price in excess of the fair value of the Company’s common stock, and (ii) the fair value of the Company’s common stock as of the applicable date. The Company granted no option awards in the year ended December 31, 2017. The total fair value of options that vested during the years ended December 31, 2018 and 2017 was $645,000 and $1.1 million, respectively. As of December 31, 2018, the remaining unrecognized compensation expense related to all outstanding option awards was $146,000 and is expected to be recognized over a weighted-average period of 0.7 years. RSU Awards RSUs are awards that entitle the holder to receive shares of the Company’s common stock upon satisfaction of vesting conditions. Each RSU represents the contingent right to receive one share of the Company’s common stock upon vesting and settlement. No Number of Shares (in thousands) Weighted-Average Grant Date Fair Value Balance at December 31, 2016 362 $ 9.69 Granted 708 $ 5.09 Vested and settled (90 ) $ 9.66 Forfeited (43 ) $ 9.33 Balance at December 31, 2017 937 $ 7.39 Granted 554 $ 4.39 Vested and settled (285 ) $ 7.78 Forfeited (120 ) $ 5.77 Balance at December 31, 2018 1,086 $ 5.94 The RSU awards granted in the years ended December 31, 2018 and 2017 will result in aggregate equity-based compensation expense of $2.4 million and $4.8 million, respectively, in each case to be recognized over four years from the grant date of each award granted in the period. As of December 31, 2018, the remaining unrecognized compensation expense related to all outstanding RSU awards was $5.6 million and is expected to be recognized over a weighted-average period of 2.9 years. Fair Value Assumptions for Option Awards The Company uses the Black-Scholes option-pricing model to measure the fair value of option awards. The Black-Scholes option-pricing model requires the input of various assumptions, each of which is subjective and requires significant judgment. These assumptions include the following: • Expected Term. The expected term represents the period that the Company’s equity-based awards are expected to be outstanding. The Company determines the expected term assumption based on the vesting terms, exercise terms and contractual terms of the options, and, in the case of equity-based awards subject to a profits interest threshold granted before the Reorganization, based on the estimated time to liquidity. • Risk-Free Interest Rate. The Company determines the risk-free interest rate by using the equivalent to the expected term based on the U.S. Treasury yield curve in effect as of the date of grant. • Dividend Yield. The assumed dividend yield is based on the Company’s expectation that it will not pay dividends in the foreseeable future, which is consistent with its history of not paying dividends. • Expected Volatility. The Company does not have sufficient history to estimate the volatility of the price of its common equity or the expected term of its options. The Company calculates expected volatility based on historical volatility data of a representative group of companies that are publicly traded. The Company selected representative companies with comparable characteristics to it, including risk profiles and position within the industry, and with historical equity price information sufficient to meet the expected term of the equity-based awards. The Company computes the historical volatility of this selected group using the daily closing prices for the selected companies’ equity during the equivalent period of the calculated expected term of its equity-based awards. The Company will continue to use the representative group volatility information until the historical volatility of its equity is relevant to measure expected volatility for future option grants. • Forfeiture Rate. The Company accounts for forfeitures as they occur. Awards to Employees The table below sets forth the weighted-average assumptions used in the Black-Scholes option-pricing model to estimate the fair value of options to acquire shares of the Company’s common stock granted to employees during the year ended December 31, 2018. The Company did not grant any options to acquire shares of the Company’s common stock to employees during the year ended December 31, 2017. Year Ended December 31, 2018 Expected term (in years) 6.1 Risk-free interest rates 2.8 % Dividend yield — Expected volatility 87.4 % Determination of Fair Value on Grant Dates The fair value of the shares of the Company’s common stock underlying option and RSU awards is determined by the Company’s board of directors or the compensation committee thereof based on the closing sales price of the Company’s common stock on the date of grant as reported by the Nasdaq Global Market. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes Provision for income taxes consists of U.S. federal and state income taxes. A deferred tax liability is recognized for all taxable temporary differences, and a deferred tax asset is recognized for all deductible temporary differences, operating losses and tax credit carryforwards. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. As of December 31, 2018 the Company has incurred net taxable losses, and accordingly, no current provision for income taxes has been recorded. This amount differs from the amount computed by applying the U.S. federal income tax rate of 21.0% to pretax loss due to the provision of a valuation allowance to the extent of the Company’s net deferred tax asset. As of December 31, 2017, the net state deferred tax asset was $90,000, and the net federal deferred tax asset was $36,000. The 2017 Tax Act, which was signed into law on December 22, 2017, has resulted in significant changes to the U.S. corporate income tax system. These changes include, among others, a federal statutory rate reduction from 35% to 21%, the elimination or reduction of certain domestic deductions and credits and limitations on the deductibility of interest expenses and executive compensation expenses. The 2017 Tax Act also transitions international taxation from a worldwide system to a modified territorial system and includes base erosion prevention measures on non-U.S. earnings. These changes are effective beginning in 2018. The Company accounts for changes in tax rates and tax laws in the period of enactment. As a result, for 2017, due to the reduction in the corporate income tax rate with the enactment of the 2017 Tax Act, the Company recorded a tax expense of $22,000 related to the revaluation of its net deferred tax assets. The Company has determined that the various other provisions of the 2017 Tax Act did not have a material impact on the Company’s results of operations or financial condition, largely because of the amount of the Company’s net operating loss carryover and the Company has no unrepatriated foreign earnings. According to the 2017 Tax Act, our net operating loss, or NOL, generated in tax years beginning after December 31, 2017 may be carried forward indefinitely. Income tax expense (benefit) consisted of the following: Year Ended December 31, 2018 2017 (in thousands) Current: Federal $ — $ (599 ) State — (80 ) Total Current — (679 ) Deferred: Federal (987 ) (300 ) State (308 ) (36 ) Change in valuation allowance 1,331 — Total Deferred 36 (336 ) Total income tax expense (benefit) $ 36 $ (1,015 ) Reconciliation of the difference between the federal statutory income tax rate and the effective income tax rate is as follows: Year Ended December 31, 2018 2017 Tax provision at Federal statutory rate 21.00 % 34.00 % State taxes 4.37 % 0.78 % Other 1.96 % 1.54 % Impact of tax reform (1) 0.00 % -0.02 % Stock based compensation -4.08 % -2.13 % Change in valuation allowance -23.90 % — Tax provision -0.65 % 34.17 % (1) The effective tax rate for the year ended December 31, 2017 includes the Company’s estimate of the effect of the 2017 Tax Act, which primarily relates to the remeasurement of existing deferred taxes as a result of the change to the U.S. federal corporate income tax rate. The following table summarizes the elements of the deferred tax assets (liabilities): Year Ended December 31, 2018 2017 (in thousands) Deferred tax assets Accrued vacation and other accrued expenses $ 118 $ 96 Provision for bad debts 136 65 Net operating losses 699 148 Stock based compensation 579 594 Unrealized loss on investments 21 37 State income taxes 9 6 Foreign 343 118 Credits 261 — Gross deferred tax assets 2,166 1,064 Less: Valuation allowance (1,448 ) (118 ) Net deferred tax assets 718 946 Deferred tax liabilities Depreciation 644 820 Other 74 — Total deferred tax liabilities 718 820 Net deferred tax assets (liabilities) $ — $ 126 During 2018 and 2017 the Company recorded a deferred tax asset related to its equity method investment in FF Gene Biotech. When realized, the asset will generate a capital loss which may only be used to offset capital gain income. The Company does not currently have any capital gain income and has therefore recorded a full valuation allowance against this asset. Uncertain Tax Positions The Company is subject to income taxation by the United States government and certain states in which the Company's activities give rise to an income tax filing requirement. The Company does not have income tax filing requirements in any foreign jurisdiction, nor are any taxes withheld from income taxes withheld from foreign sales. As of December 31, 2018, there were no pending tax audits in any jurisdiction. There were no tax-related interest or penalties accrued at December 31, 2018 and 2017. While the Company believes it has adequately provided for all tax positions, amounts asserted by taxing authorities could differ from the Company's accrued positions. Accordingly, additional provisions on federal, state and foreign tax-related matters could be recorded in future periods as revised estimates are settled or otherwise resolved. FASB ASC 740 requires that deferred income tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred income tax assets will not be realized. The Company has evaluated the realizability of its deferred tax assets and has concluded that it is more likely than not that the Company may not realize benefit of its deferred tax assets, primarily as a result of operating losses in recent years and, accordingly, has provided a full valuation allowance at December 31, 2018. |
Income (Loss) Per Share
Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Income (Loss) per Share | Note 12. Income (Loss) per Share The following is a reconciliation of the basic and diluted income (loss) per share computations: Years Ended 2018 2017 (in thousands, except per share data) Net loss $ (5,607 ) $ (2,510 ) Weighted-average common shares - outstanding, basic 17,978 17,739 Weighted-average common shares - outstanding, diluted 17,978 17,739 Net loss per common share, basic $ (0.31 ) $ (0.14 ) Net loss per common share, diluted $ (0.31 ) $ (0.14 ) The following securities have been excluded from the calculation of diluted income (loss) per share for all periods presented because their effect would have been anti-dilutive: Years Ended 2018 2017 (in thousands) Options 413 464 RSUs 857 526 The anti-dilutive shares described above were calculated using the treasury stock method. During the years ended December 31, 2018 and 2017, the Company had outstanding options and RSUs that were excluded from the weighted-average share calculation for continuing operations due to the Company’s net loss positions. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | Note 13. Retirement Plans The Company offers a 401(k) retirement savings plan (the “401(k) Plan”) for its employees, including its executive officers, who satisfy certain eligibility requirements. The Internal Revenue Code of 1986, as amended, allows eligible employees to defer a portion of their compensation, within prescribed limits, on a pre-tax basis through contributions to the 401(k) Plan. The Company matches contributions to the 401(k) Plan based on the amount of salary deferral contributions the participant makes to the 401(k) Plan. The Company will match up to 3% of an employee’s compensation that the employee contributes to his or her 401(k) Plan account. Total Company matching contributions to the 401(k) Plan were $176,000 and $108,000 in the years ended December 31, 2018 and 2017, respectively. |
Related Party
Related Party | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party | Note 14. Related Party Dr. Yun Yen, who is a member of the Company’s Board of Directors and a stockholder, serves as the President and Chairman of the Board for the Sino-American Cancer Foundation (the “Foundation”) and served as the President for the Taipei Medical University (the “University”), from August 1, 2011 through July 31, 2016 and currently serves as a Chair Professor for the University. From time to time, the Company performs research testing services, on an arms-length basis, for the Foundation. The Company recognized zero during the years ended December 31, 2018 and 2017, as consideration for such services. Additionally, the Company subleases certain of its headquarters facilities to the Foundation. The Company recognized $33,000 and $22,000 in the years ended December 31, 2018 and 2017, respectively, as consideration for such sublease. As of December 31, 2018 and 2017, zero was owed to the Company by the Foundation in connection with these relationships. From time to time, the Company performs genetic sequencing services, on an arms-length basis, for the University. The Company recognized $66,000 and $82,600 in the years ended December 31, 2018 and 2017, respectively, as consideration for such services. As of December 31, 2018 and 2017, $51,000 and $40,000, respectively, was owed to the Company by the University in connection with this relationship. As more fully described in Note 15, in April 2017, the Company, through an affiliated company formed for the purpose of the relationship, entered into a cooperation agreement (the “JV Agreement”) with Xilong Scientific Co., Ltd. (“Xilong Scientific”) and Fuzhou Jinqiang Investment Partnership (LP) (“FJIP”) to form a joint venture under the laws of the PRC called Fujian Fujun Gene Biotech Co., Ltd. (“FF Gene Biotech”). Xilong Scientific is an affiliate of Xi Long, which, as of December 31, 2018, owned 11% of the outstanding shares of the Company’s common stock, and FJIP is owned by key management of FF Gene Biotech, including Dr. Han Lin Gao, the Chief Scientific Officer and a large stockholder of the Company and the owner of approximately 25% of FJIP. Fulgent Pharma utilizes space in the facility at which the Company’s laboratory and corporate headquarters are located. Since the completion of the Pharma Split-Off, Fulgent Pharma reimburses the Company, on an arms-length basis, 3,000 |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity Method Investments | In April 2017, the Company, through an affiliated company formed for the purpose of the relationship, entered into the JV Agreement with Xilong Scientific and FJIP to form FF Gene Biotech, a joint venture formed under the laws of the PRC to offer genetic testing services to customers in the PRC. Pursuant to the terms of the JV Agreement, the Company has agreed to contribute to FF Gene Biotech genetic sequencing and other equipment with a total cost of 60,000,000 renminbi (“RMB”) over a three-year period for a 30% ownership interest in FF Gene Biotech, Xilong Scientific has agreed to contribute to FF Gene Biotech 102,000,000 RMB over a three-year period for a 51% ownership interest in the FF Gene Biotech, and FJIP has agreed to contribute to FF Gene Biotech 19,000,000 RMB over a five-year period for a 19% ownership interest in FF Gene Biotech. The Company’s maximum exposure to fund losses of FF Gene Biotech as a result of its minority ownership of this entity is equal to its contribution obligation under the JV Agreement as described above. As of December 31, 2018, 40,300,000 RMB (or approximately $5.9 million U.S. dollars) remained to be contributed to FF Gene Biotech by the Company under the terms of the JV Agreement, and the Company has purchased and contributed equipment with an aggregate fair value of $3.0 million pursuant to its contribution commitment under the JV Agreement, of which, $510,000 and $2.5 million were contributed in the year ended December 31, 2018 and 2017, respectively. The Company accounted for this contribution in accordance with ASC 845, Nonmonetary Transactions, and recorded an investment based on the fair value of the contributed equipment, which is the same as carryover basis. The Company concluded FF Gene Biotech is a variable interest entity as FF Gene Biotech lacks sufficient capital to operate independently. The Company concluded that it alone does not have the power to direct the most significant activities of FF Gene Biotech and therefore is not the primary beneficiary of the entity. Judgment regarding the level of influence over FF Gene Biotech includes consideration of key factors such as the Company's ownership interest, representation on the board of directors or other management body and participation in policy-making decisions. The Company accounts for its 30% interest in FF Gene Biotech using the equity method of accounting. The Company recorded its proportionate share of the losses of FF Gene Biotech for the year ended December 31, 2018 in the accompanying consolidated statements of operations, and recorded its contribution during the period, net of its proportionate share in the accumulated losses of FF Gene Biotech, in the accompanying consolidated balance sheet as of December 31, 2018. The Company has entered into a license agreement with FF Gene Biotech, pursuant to which it granted FF Gene Biotech a license to use certain of the Company’s clinical molecular diagnostic gene detection technology and related software and proprietary reference library of genetic information, along with any improvements on this technology the Company may develop during the term of the license agreement. Under the license agreement, FF Gene Biotech will pay to the Company, on a quarterly basis, certain royalties based on the revenues of FF Gene Biotech. The Company earned an insignificant amount of royalties under the license agreement for the year ended December 31, 2018. In November 2017, FF Gene Biotech invested and formed a majority-owned subsidiary that focuses on sales and marketing for FF Gene Biotech. The financial information of the subsidiary is consolidated in the summarized financial information for FF Gene Biotech disclosed below. Equity method investments as of December 31, 2018 and 2017 consisted of the following: December 31, 2018 2017 Carrying Value Ownership Percentage Carrying Value Ownership Percentage (in thousands) (in thousands) FF Gene Biotech $ 1,512 30 % $ 1,937 30 % Total equity method investments $ 1,512 30 % $ 1,937 30 % Summary Financial Information Summary financial information for FF Gene Biotech is as follows: December 31, 2018 2017 Consolidated Balance Sheet Data: (in thousands) Current Assets $ 1,916 $ 2,474 Non-Current Assets 4,068 4,851 Current Liabilities 2,415 942 Non-Current Liabilities — — Minority Interest — — Stockholders' Equity 3,569 6,383 Years Ended December 31, 2018 2017 Consolidated Statement of Operations Data: (in thousands) Net Sales $ 1,254 $ 90 Gross Profit 67 10 Net Loss (3,101 ) (2,318 ) Share of loss from investments accounted for using the equity method (1) (935 ) (524 ) (1) The Company's share of loss is based on pro-rated net loss beginning April 25, 2017, the date on which the Company entered into the JV Agreement. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information (Unaudited) | Note 16. Selected Quarterly Financial Data (Unaudited) The tables below set forth the Company’s quarterly consolidated statements of operations data for the eight quarters ended December 31, 2018. In the opinion of management, this quarterly data has been prepared on the same basis as the accompanying consolidated financial statements and includes all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results of operations for the periods presented. See Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the report in which these consolidated financial statements are included for descriptions of the effects of any extraordinary, unusual or infrequently occurring items recognized in any of the periods covered by this data. The results for any one quarter are not indicative of the results to be expected in the current period or any future period Three Months Ended Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Mar. 31, 2018 Dec. 31, 2017 Sept. 30, 2017 June 30, 2017 Mar. 31, 2017 (dollars in thousands, except per share data) Statement of Operations Data: Revenue $ 5,673 $ 5,625 $ 5,400 $ 4,653 $ 4,281 $ 4,503 $ 4,640 $ 5,306 Cost of revenue 2,769 2,612 2,544 2,772 2,545 2,268 1,879 1,859 Gross profit 2,904 3,013 2,856 1,881 1,736 2,235 2,761 3,447 Operating expenses: Research and development 1,426 1,438 1,212 1,458 1,324 1,128 920 851 Selling and marketing 1,128 1,115 1,279 1,130 1,080 1,383 851 891 General and administrative 1,379 1,306 1,366 1,487 1,402 1,205 1,140 1,486 Total operating expenses 3,933 3,859 3,857 4,075 3,806 3,716 2,911 3,228 Operating income (loss) (1,029 ) (846 ) (1,001 ) (2,194 ) (2,070 ) (1,481 ) (150 ) 219 Interest and other income, net 98 143 98 95 97 145 120 119 Income (loss) before income taxes and equity loss in investee (931 ) (703 ) (903 ) (2,099 ) (1,973 ) (1,336 ) (30 ) 338 Provision for (benefit from) income taxes 888 (318 ) (100 ) (434 ) (596 ) (415 ) (110 ) 106 Income (loss) before equity loss in investee (1,819 ) (385 ) (803 ) (1,665 ) (1,377 ) (921 ) 80 232 Equity loss in investee (234 ) (210 ) (246 ) (245 ) (247 ) (172 ) (105 ) - Net income (loss) $ (2,053 ) $ (595 ) $ (1,049 ) $ (1,910 ) $ (1,624 ) $ (1,093 ) $ (25 ) $ 232 Net income (loss) per common share: Basic $ (0.11 ) $ (0.03 ) $ (0.06 ) $ (0.11 ) $ (0.09 ) $ (0.06 ) $ (0.00 ) $ 0.01 Diluted $ (0.11 ) $ (0.03 ) $ (0.06 ) $ (0.11 ) $ (0.09 ) $ (0.06 ) $ (0.00 ) $ 0.01 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments, assumptions and decisions that affect the reported amounts and related disclosures, including the selection of appropriate accounting policies and the assumptions on which to base accounting estimates. In making these estimates and assumptions and reaching these decisions, the Company applies judgment based on its understanding and analysis of the relevant circumstances, including historical data and experience available at the date of the accompanying consolidated financial statements, as well as various other factors management believes to be reasonable under the circumstances. Actual results could differ from these estimates. On an on-going basis, management evaluates its estimates, primarily those related to: (i) revenue recognition criteria, (ii) accounts receivable and allowances for doubtful accounts, (iii) the useful lives of fixed assets, (iv) estimates of tax liabilities and (v) the valuation of equity-based awards. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents include cash held in banks and money market accounts. Cash equivalents are stated at fair value. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at the amount the Company expects to collect. The Company performs credit evaluations of its customers and generally does not require collateral. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information that assists in management’s evaluation. The Company writes off accounts receivable following a review by management and a determination that the receivable is uncollectible. A roll-forward of the activity in the Company’s allowance for doubtful accounts is as follows: December 31, 2018 2017 (in thousands) Allowance for doubtful accounts at beginning of year $ 287 $ 151 Bad debt expense 309 160 Deductions (6 ) (24 ) Allowance for doubtful accounts at end of year $ 590 $ 287 |
Marketable Securities | Marketable Securities All marketable securities, which consist of debt securities, United States Treasury and U.S. government agency securities, have been classified as “available for sale” and are carried at fair value. Unrealized gains and losses, net of any related tax effects, are excluded from earnings and are included in other comprehensive loss and reported as a separate component of stockholders’ equity until realized. Realized gains and losses and declines in value judged to be other than temporary, if any, on marketable securities are included in other income (expense), net. The cost of any marketable securities sold is based on the specific-identification method. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity. Interest on marketable securities is included in interest income. In accordance with the Company’s investment policy, management invests to diversify credit risk and only invests in securities with high credit quality, including U.S. government securities. The Company regularly evaluates whether declines in the fair value of its investments below their cost are other than temporary. The evaluation includes consideration of the cause of the impairment, including the creditworthiness of the security issuers, the number of securities in an unrealized loss position, the severity and duration of the unrealized losses, whether the Company has the intent to sell the securities, and whether it is more likely than not that the Company will be required to sell the securities before the recovery of their amortized cost basis. If the Company determines that the decline in fair value of an investment is below its accounting basis and this decline is other than temporary, the Company would reduce the carrying value of the security it holds and record a loss for the amount of such decline. The Company has not recorded any realized losses or declines in value judged to be other than temporary on its investments. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company's financial instruments consist principally of cash and cash equivalents, marketable securities, accounts receivable and accounts payable. The carrying amounts of certain of these financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximate fair value due to their short maturities. Fair value of marketable securities is disclosed in Note 4, Fair Value Measurements, to the accompanying consolidated financial statements. |
Concentrations of Credit Risk, Customers and Suppliers | Concentrations of Credit Risk, Customers and Suppliers Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, accounts receivable and marketable securities, which consist of debt securities, and cash equivalents. As of December 31, 2018, substantially all of the Company’s cash and cash equivalents were deposited in accounts at financial institutions, and amounts may exceed federally insured limits. Management believes that the Company is not exposed to significant credit risk due to the financial strength of the depository institutions in which its cash and cash equivalents are held. In certain periods, a small number of customers has accounted for a significant portion of the Company’s revenue. Aggregating customers that are under common control or are affiliates, one customer comprised 13% of total revenue in the year ended December 31, 2018, and three customers comprised 14%, 12% and 10% of total revenue in the year ended December 31, 2017. One customer comprised 18% and 13% of total accounts receivable as of December 31, 2018 and 2017, respectively. Revenue from the U.S. government was less than 10% of total revenue in each of the years ended December 31, 2018 and 2017. The Company relies on a limited number of suppliers for certain laboratory substances used in the chemical reactions incorporated into its processes, referred to as reagents, as well as for the sequencers and various other equipment and materials it uses in its laboratory operations. In particular, the Company relies on a sole supplier for the next generation sequencers and associated reagents it uses to perform its genetic tests and as the sole provider of maintenance and repair services for these sequencers. The Company’s laboratory operations would be interrupted if it encounters delays or difficulties securing these reagents, sequencers, other equipment or materials or maintenance and repair services, which could occur for a variety of reasons, including if the Company needs a replacement or temporary substitute for any of its limited or sole suppliers and is not able to locate and make arrangements with an acceptable replacement or temporary substitute. The Company believes there are currently only a few other manufacturers that are capable of supplying and servicing some of the equipment and other materials necessary for its laboratory operations, including sequencers and various associated reagents. |
Equity Method Investments | Equity Method Investments The Company uses the equity method to account for investments in entities that it does not control, but in which it has the ability to exercise significant influence over operating and financial policies. The Company's proportionate share of the net income or loss of these companies is included in consolidated net earnings. Judgments regarding the level of influence over each equity method investment include consideration of key factors such as the Company's ownership interest, representation on the board of directors or other management body and participation in policy-making decisions. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that a decline in value has occurred that is other than temporary. Evidence considered in this evaluation includes, but would not necessarily be limited to, the financial condition and near-term prospects of the investee, recent operating trends and forecasted performance of the investee, market conditions in the geographic area or industry in which the investee operates and the Company’s strategic plans for holding the investment in relation to the period of time expected for an anticipated recovery of its carrying value. If the investments is determined to have a decline in value deemed to be other than temporary it is written down to estimated fair value. |
Fixed Assets | Fixed Assets Fixed assets are recorded at cost, net of accumulated depreciation and amortization. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets, which is generally between three and five years. Leasehold improvements are capitalized and amortized over the shorter of their expected lives or the applicable lease term, including renewal options, if available. Major replacements and improvements are capitalized, while general repairs and maintenance are expensed as incurred. |
Software for Internal Use | Software for Internal Use The Company capitalizes certain costs incurred to purchase computer software for internal use. These costs include purchased software packages for Company use. Capitalized computer software costs are amortized over the estimated useful life of the computer software, which is generally three years. Internally developed software costs are capitalized after management has committed to funding the project, it is probable that the project will be completed and the software will be used for its intended function. Costs that do not meet that criteria and costs incurred on projects in the preliminary and post-implementation phases are expensed as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates the carrying amount of its long-lived assets whenever events or changes in circumstances indicate that the assets may not be recoverable. An impairment loss would be recognized when estimated future cash flows expected to result from the use of an asset and its eventual disposition is less than the carrying amount of the asset. To date, there have been no such impairment losses. |
Reporting Segment and Geographic Information | Reporting Segment and Geographic Information Reporting segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The Company views its operations and manages its business in one reporting segment. |
Revenue Recognition | Revenue Recognition The Company generates revenue from sales of its genetic tests. The Company currently receives payments from: hospitals and medical institutions with which it has direct-bill relationships; research institutions; individual patients and third-party payors. The Company’s test results are delivered electronically, and as such there are no shipping and handling fees incurred by it or billed to customers. The Company’s sales are typically exempt from state sales taxation due to the nature of the results delivered. As a result, the Company currently does not charge customers state sales tax and continues to assess. Effective January 1, 2018, the Company began recognizing revenue in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The Company adopted ASC 606 utilizing the modified retrospective method, meaning the cumulative effect of applying the standard was recognized to opening retained earnings as of January 1, 2018. To reflect the impact of the adoption, the Company recorded an adjustment of $327,000 to beginning accumulated deficit and accounts receivable and an adjustment of ($74,000) to beginning accumulated deficit and deferred taxes. Under ASC 606, the Company recognizes revenue in an amount that reflects the consideration to which it expects to be entitled in exchange for the transfer of promised goods or services to customers. To determine revenue recognition for contracts with customers that are within the scope of ASC 606, the Company performs the following steps: (1) identifies the contract with the customer, (2) identifies the performance obligations in the contract, (3) determines the transaction price, (4) allocates the transaction price to the performance obligations in the contract, and (5) recognizes revenue when (or as) the entity satisfies a performance obligation. Performance Obligations Genetic Testing Services Clinical – Institutional and Patient Direct Pay Our clinical institutional contracts included within genetic testing services typically have a single performance obligation to deliver genetic testing services to the ordering facility or patient. Some arrangements involve the delivery of genetic testing services to research institutions, which we refer to as “sequencing as a service.” In arrangements with hospitals, patients who pay directly, medical or research institutions, the transaction price is stated within the contract and is therefore fixed consideration. For most of our clinical volume, we identified the hospital, patients, medical or research institutions as the customer in Step 1 of the model and have determined a contract exists with those customers in Step 1. As these contracts typically have a single performance obligation, no allocation of the transaction price is required in Step 4 of the model. Control over genetic testing services is transferred to our ordering facility at a point in time. Specifically, we determined the customer obtains control of the promised service upon our delivery of test results. Clinical – Insurance Our clinical insurance contracts included within genetic testing services typically have a single performance obligation to deliver genetic testing services to the ordering facility or patient. For most of our clinical insurance volume, we identified the patient as the customer in Step 1 of the model and have determined a contract exists with the patient in Step 1. In arrangements with insurance patients, the transaction price is stated within the contract, however, we accept payments from third-party payors that are less than the contractually stated price and is therefore variable consideration. In developing the estimate of variable consideration, we utilize the expected value method under a portfolio approach. Our estimate requires significant judgment and is developed using historical reimbursement data from payors and patients, as well as known current reimbursement trends not reflected in the historical data. As these contracts typically have a single performance obligation, no allocation of the transaction price is required in Step 4 of the model. Control over genetic testing services is transferred to our ordering physicians at a point in time. Specifically, we determined the customer obtains control of the promised service upon our delivery of the test results. Certain incremental costs pertaining to both clinical insurance and institutional, such as commissions, are incurred in obtaining clinical contracts. Historically contract costs have not been significant to the financial statements. We have elected to utilize the practical expedient to expense incremental costs of obtaining a contract that meet the capitalization criteria, as the amortization period of any contract acquisition asset would be one year or less due to the short-term nature of the customer life. Significant Judgments and Contract Estimates Genetic Testing Services Accounting for clinical insurance contracts includes estimation of the transaction price, defined as the amount we expect to be entitled to receive in exchange for providing the services under the contract. Due to our out-of-network status with the majority of payors, estimation of the transaction price represents variable consideration. In order to estimate variable consideration, we utilize a portfolio approach in which payors with similar reimbursement experience are grouped into portfolios. Our estimates of variable consideration are based primarily on historical reimbursement data. Certain assumptions will also be adjusted based on known and anticipated factors not reflected in the historical reimbursement data. We monitor these accrual estimates at each reporting period based on actual cash collections in order to assess whether a revision to the estimate is required. Both the initial accrual estimate and any subsequent revision to the estimate contain uncertainty and require the use of judgment in the estimation of the transaction price and application of the constraint for variable consideration. If actual results in the future vary from the Company’s estimates, the Company will adjust these estimates, which would affect revenue and earnings in the period such variances become known. |
Contract Liabilities | Contract Liabilities Payments received in advance of services rendered are recorded as contract liabilities and are subsequently recognized as revenue in the period in which the applicable revenue recognition criteria, as described above, are met. Contract liabilities consists primarily of revenue from tests performed for customers that have a limited time period following an initial order to request certain follow-up tests at no additional charge. |
Overhead Expenses | Overhead Expenses The Company allocates overhead expenses, such as rent and utilities, to cost of revenue and operating expense categories based on headcount. As a result, an overhead expense allocation is reflected in cost of revenue and each operating expense category. |
Cost of Revenue | Cost of Revenue Cost of revenue reflects the aggregate costs incurred in delivering test results and consists of: personnel costs, including salaries, employee benefit costs, bonuses and equity-based compensation expenses; costs of laboratory supplies; depreciation of laboratory equipment; amortization of leasehold improvements and allocated overhead. Costs associated with performing tests are recorded as tests are processed. |
Research and Development Expenses | Research and Development Expenses Research and development expenses represent costs incurred to develop the Company’s technology and future tests. These costs consist of: personnel costs, including salaries, employee benefit costs, bonuses and equity-based compensation expenses; laboratory supplies; consulting costs and allocated overhead. The Company expenses all research and development costs in the periods in which they are incurred. |
Selling and Marketing Expenses | Selling and Marketing Expenses Selling and marketing expenses consist of: personnel costs, including salaries, employee benefit costs, bonuses and equity-based compensation expenses; customer service expenses; direct marketing expenses; educational and promotional expenses; market research and analysis and allocated overhead. The Company expenses all selling and marketing costs as incurred. |
General and Administrative Expenses | General and Administrative Expenses General and administrative expenses include executive, finance and accounting, legal and human resources functions. These expenses consist of: personnel costs, including salaries, employee benefit costs, bonuses and equity-based compensation expenses; audit and legal expenses; consulting costs and allocated overhead. The Company expenses all general and administrative expenses as incurred. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. The Company provides for federal, state and foreign income taxes currently payable, as well as for taxes deferred due to timing differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in income tax rates is recognized as income or expense in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount with a greater than 50% likelihood of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. For income tax positions where it is not more likely than not that a tax benefit will be sustained, the Company does not recognize a tax benefit in its consolidated financial statements. The Company records interest and penalties related to uncertain tax positions, if applicable, as a component of income tax expense. The Company’s predecessor, Fulgent LLC, was organized as a limited liability company and its members elected to have Fulgent LLC treated as a partnership for income tax purposes. As a result, for all periods prior to the Reorganization, all taxable income or loss and tax credits of the Company generally were reflected in the personal income tax returns of Fulgent LLC’s members, and no provision for federal and state income taxes was provided in the accompanying consolidated financial statements. The Company became a taxable entity upon completion of the Reorganization on September 30, 2016. |
Equity-Based Compensation | Equity-Based Compensation The Company grants various types of equity-based awards to its employees, consultants and non-employee directors. Equity-based compensation costs are reflected in the accompanying statements of operations based upon each award recipient’s role with the Company. The Company primarily grants to its employees restricted stock unit (RSU) awards that generally vest over a specified period of time upon the satisfaction of service-based conditions. The Company measures compensation expense for equity-based awards granted to employees based on the fair value of the award on the grant date of the award. Compensation expense for employee RSU awards with a service-based vesting condition is recognized ratably over the vesting period of the award. |
Foreign Currency Translation and Foreign Currency Transactions | Foreign Currency Translation and Foreign Currency Transactions The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in other comprehensive loss in the accompanying consolidated statements of stockholders’ equity. The Company’s subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, and inventories, property and nonmonetary assets and liabilities at historical rates. Gains and losses from these remeasurements were not significant in the year ended December 31, 2018. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is comprised of net loss and other comprehensive loss. Other comprehensive loss consists of unrealized loss on marketable securities and foreign currency translation adjustments from its subsidiaries not using the U.S. dollar as their functional currency. The Company did not have reclassifications from other comprehensive loss to the loss during the year ended December 31, 2018. |
Basic and Diluted Net Loss per Share | Basic and Diluted Net Loss per Share Basic net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and dilutive common share equivalents outstanding during the period. Because the Company has reported a net loss attributable to common stockholders for all periods presented, diluted net loss per common share is the same as basic net loss per common share for these periods. |
Emerging Growth Company | Emerging Growth Company Pursuant to the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), a company constituting an “emerging growth company” is, among other things, entitled to rely upon certain reduced reporting requirements. The Company is an emerging growth company, but has irrevocably elected not to take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for public companies that are not emerging growth companies. |
Accounting Pronouncements Recently Adopted and Recent Accounting Pronouncements | Accounting Pronouncements Recently Adopted ASU 2014-09 The Company adopted ASU 2014-09 Revenue from Contracts with Customers, and all related amendments (collectively codified as ASC 606) on January 1, 2018 utilizing the modified retrospective method, meaning the cumulative effect of applying the standard to all contracts completed as of the date of initial application was recognized to opening retained earnings as of January 1, 2018. Comparative information from prior periods has not been restated and continues to be reported under the accounting standards in effect for those periods. Financial Statement Impact of Adoption ASC 606 The cumulative effect of changes made to the Condensed Consolidated Balance Sheet at January 1, 2018 for the adoption of ASC 606 were as follows: Balance at December 31, 2017 Adjustments Due to ASC 606 Balance at January 1, 2018 (in thousands) Condensed Consolidated Balance Sheet data Assets: Accounts receivable $ 4,005 $ 327 $ 4,332 Deferred tax asset / (liability) 126 (74 ) 52 Equity: Accumulated deficit $ (57,664 ) $ 253 $ (57,411 ) In accordance with ASC 606 requirements under the modified retrospective method of adoption, the disclosure of the impacts to condensed consolidated financial statements for the years ended December 31, 2018 were as follows: As reported Adjustments Due to ASC 606 Balances without the adoption of Topic 606 (in thousands) Condensed Consolidated Balance Sheet data Assets: Accounts receivable $ 5,948 $ (20 ) $ 5,928 Deferred tax asset — — — Equity: Accumulated deficit $ (63,018 ) $ (20 ) $ (63,038 ) For the Year Ended December 31, 2018 As reported Adjustments Due to ASC 606 Balances without the adoption of Topic 606 (in thousands, except per share data) Condensed Consolidated Statement of Operations data: Total revenue $ 21,351 $ 307 * $ 21,658 Provision for (benefit from) income taxes 36 74 110 Net income (loss) (5,607 ) 233 (5,374 ) Net income (loss) per common share: Basic & Diluted $ (0.31 ) $ 0.01 $ (0.30 ) * Revenue under ASC 605 would have been greater than under ASC 606 because the amount of cash receipts in 2018 from current and prior period insurance billings was greater than the estimated collections for services delivered and billed in 2018. There was no impact on the condensed consolidated statements of cash flows for the year ended December 31, 2018. Disaggregation of Revenue The Company classifies its customers into three payor types, Clinical Institutional, Patients who pay directly or Clinical Insurance, as we believe this best depicts how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. The following table summarizes revenue from contracts with customers by payor type for the year ended December 31, 2018. Year ended December 31, 2018 (in thousands) Genetic Testing Services by payor Institutional $ 19,980 Patient 547 Insurance 824 Total Revenue $ 21,351 There was no material variable consideration recognized in the current period that relates to performance obligations that were completed in the prior period. Transaction Price Allocated to Future Performance Obligations ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as December 31, 2018. ASC 606 provides certain practical expedients that limit the requirement to disclose the aggregate amount of transaction price allocated to unsatisfied performance obligations. The Company applied the practical expedient to not disclose the amount of transaction price allocated to unsatisfied performance obligations when the performance obligation is part of a contract that has an original expected duration of one year or less. The Company does not have material future obligations associated with Genetic Testing Services that extend beyond one year. ASU No. 2016-01 In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments, including a provision that requires equity investments (except for investments accounted for under the equity method of accounting) to be measured at fair value, with changes in fair value recognized in current earnings. The ASU was effective for the Company in the first quarter of 2018, with early adoption permitted. The adoption of this update did not have a material impact on our Consolidated Financial Statements. ASU No. 2016-15 In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230). The standard clarifies the way certain cash receipts and cash payments are classified with the objective of reducing the existing diversity in practice. The standard was effective for fiscal years and interim periods beginning after December 15, 2017. The adoption of this update did not have a material impact on our Consolidated Financial Statements. Recent Accounting Pronouncements We evaluate all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) for consideration of their applicability. ASUs not included in our disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on our Consolidated Financial Statements. ASU No. 2016-02 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases. The FASB has issued subsequent amendments to improve and clarify the implementation guidance of Topic 842. The new standard requires an entity to recognize leases on the balance sheet and to disclose key information about the entity's leasing arrangements. The Company adopted this standard at the beginning of fiscal year 2019 using the modified retrospective transition approach, including certain practical expedients, for all leases existing at January 1, 2019, the effective and initial application date. The estimated impact of the adoption to the Company's consolidated financial statements included the recognition of operating lease liabilities of approximately $3.1 million with corresponding right-of-use assets of approximately the same amount based on the present value of the remaining lease payments for existing operating leases. This standard is not expected to have a material impact on the Company's results of operations. The Company has revised its relevant policies and procedures, as applicable, to meet the new accounting, reporting and disclosure requirements of Topic 842 and has updated internal controls accordingly. ASU No. 2016-13 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13 replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard will be effective for annual reporting periods beginning after December 15, 2019, including interim periods within those reporting periods. Early adoption is permitted. The Company has not yet evaluated the effect this ASU will have on its consolidated financial statements and related disclosures. ASU No. 2017-08 In March 2017, the FASB issued ASU No. 2017-08, Receivables–Nonrefundable Fees and Other Costs (Subtopic 310-20). Under the ASU, entities must amortize to the earliest call date the premium on certain purchased callable debt securities. The ASU does not require any accounting change for debt securities held at a discount. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The ASU is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including in an interim period. The Company does not expect the adoption of the new guidance under the standard to materially affect its financial position or results of operations. ASU No. 2018-02 In February 2018, the FASB issued ASU No. 2018-02, Income Statement–Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act enacted by the U.S. federal government on December 22, 2017 (the “2017 Tax Act”). Consequently, the amendments eliminate the stranded tax effects resulting from the 2017 Tax Act and will improve the usefulness of information reported to financial statement users. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The Company does not expect the adoption of the new guidance under the standard to materially affect its financial position or results of operations. ASU No. 2018-15 In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which provides new guidance on the accounting for implementation, set-up, and other upfront costs incurred in a hosted cloud computing arrangement. Under the new guidance, entities will apply the same criteria for capitalizing implementation costs as they would for an internal-use software license arrangement. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. This ASU can be adopted prospectively to eligible costs incurred on or after the date of adoption or retrospectively. The Company does not expect the adoption of the new guidance under the standard to materially affect its financial position or results of operations . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Roll-Forward of Activity in Allowance for Doubtful Accounts | A roll-forward of the activity in the Company’s allowance for doubtful accounts is as follows: December 31, 2018 2017 (in thousands) Allowance for doubtful accounts at beginning of year $ 287 $ 151 Bad debt expense 309 160 Deductions (6 ) (24 ) Allowance for doubtful accounts at end of year $ 590 $ 287 |
Accounting Standards Update 2014-09 | |
Summary of Impact on Financial Statement | The cumulative effect of changes made to the Condensed Consolidated Balance Sheet at January 1, 2018 for the adoption of ASC 606 were as follows: Balance at December 31, 2017 Adjustments Due to ASC 606 Balance at January 1, 2018 (in thousands) Condensed Consolidated Balance Sheet data Assets: Accounts receivable $ 4,005 $ 327 $ 4,332 Deferred tax asset / (liability) 126 (74 ) 52 Equity: Accumulated deficit $ (57,664 ) $ 253 $ (57,411 ) In accordance with ASC 606 requirements under the modified retrospective method of adoption, the disclosure of the impacts to condensed consolidated financial statements for the years ended December 31, 2018 were as follows: As reported Adjustments Due to ASC 606 Balances without the adoption of Topic 606 (in thousands) Condensed Consolidated Balance Sheet data Assets: Accounts receivable $ 5,948 $ (20 ) $ 5,928 Deferred tax asset — — — Equity: Accumulated deficit $ (63,018 ) $ (20 ) $ (63,038 ) For the Year Ended December 31, 2018 As reported Adjustments Due to ASC 606 Balances without the adoption of Topic 606 (in thousands, except per share data) Condensed Consolidated Statement of Operations data: Total revenue $ 21,351 $ 307 * $ 21,658 Provision for (benefit from) income taxes 36 74 110 Net income (loss) (5,607 ) 233 (5,374 ) Net income (loss) per common share: Basic & Diluted $ (0.31 ) $ 0.01 $ (0.30 ) * Revenue under ASC 605 would have been greater than under ASC 606 because the amount of cash receipts in 2018 from current and prior period insurance billings was greater than the estimated collections for services delivered and billed in 2018. |
Summary of Revenue from Contracts with Customers by Payor Type | The following table summarizes revenue from contracts with customers by payor type for the year ended December 31, 2018. Year ended December 31, 2018 (in thousands) Genetic Testing Services by payor Institutional $ 19,980 Patient 547 Insurance 824 Total Revenue $ 21,351 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Marketable Securities | The Company’s marketable securities consisted of the following: December 31, 2018 Amortized Cost Basis Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Marketable securities: Short-term Money market accounts $ 2,692 $ — $ — $ 2,692 United States Treasury 990 — — 990 U.S. government agency securities 790 — — 790 Corporate debt securities 22,613 1 (96 ) 22,518 Less: Cash equivalents (2,692 ) — — (2,692 ) Total short-term marketable securities 24,393 1 (96 ) 24,298 Corporate debt securities 6,383 11 (8 ) 6,386 Total long-term marketable securities 6,383 11 (8 ) 6,386 $ 30,776 $ 12 $ (104 ) $ 30,684 December 31, 2017 Amortized Cost Basis Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Marketable securities: Short-term Money market accounts $ 723 $ — $ — $ 723 Corporate debt securities 20,040 2 (48 ) 19,994 Less: Cash equivalents (723 ) — — (723 ) Total short-term marketable securities 20,040 2 (48 ) 19,994 Corporate debt securities 14,999 — (116 ) 14,883 Total long-term marketable securities 14,999 — (116 ) 14,883 $ 35,039 $ 2 $ (164 ) $ 34,877 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Information about Financial Assets Measured at Fair Value on Recurring Basis Based on Three-Tier Fair Value Hierarchy | The following tables present information about the Company’s financial assets measured at fair value on a recurring basis, based on the three-tier fair value hierarchy: December 31, 2018 Total Level 1 Level 2 Level 3 (in thousands) Marketable securities: Corporate debt securities $ 28,904 $ — $ 28,904 $ — United States Treasury 990 — 990 — U.S. government agency securities 790 — 790 — Money market accounts 2,692 2,692 — — Total marketable securities $ 33,376 $ 2,692 $ 30,684 $ — December 31, 2017 Total Level 1 Level 2 Level 3 (in thousands) Marketable securities: Corporate debt securities $ 34,877 $ — $ 34,877 $ — Money market accounts 723 723 — — Total marketable securities $ 35,600 $ 723 $ 34,877 $ — |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Major Classes of Fixed Assets | Major classes of fixed assets consisted of the following: December 31, Useful Lives 2018 2017 (in thousands) Computer hardware 3 Years $ 1,579 $ 1,435 Computer software 3 Years 495 463 Medical lab equipment 5 Years 8,136 7,145 Furniture and fixtures 5 Years 233 159 Leasehold improvements Shorter of lease term or estimated useful life 802 763 Assets not yet placed in service 1,087 1,074 Total 12,332 11,039 Less: Accumulated depreciation (5,886 ) (3,767 ) Property and equipment, net $ 6,446 $ 7,272 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following: December 31, 2018 2017 (in thousands) Reagents $ 314 $ 231 Prepaid expenses 706 624 Prepaid income taxes 1,251 1,313 Marketable securities interest receivable 220 204 Other receivable 70 66 Total $ 2,561 $ 2,438 |
Reporting Segment and Geograp_2
Reporting Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Region | Revenue by region was as follows: December 31, 2018 2017 (in thousands) Revenue: United States $ 12,579 $ 9,024 Foreign: Canada 3,984 4,091 People's Republic of China ("PRC") 109 2,614 Other Countries 4,679 3,001 Total $ 21,351 $ 18,730 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Payments under Non-Cancelable Operating Leases | Future minimum payments under non-cancelable operating leases as of December 31, 2018 are as follows: Amounts Year ending December 31, (in thousands) 2019 $ 560 2020 559 2021 550 2022 558 Thereafter 1,429 Total minimum lease payments $ 3,656 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Equity-Based Compensation | The Company has included equity-based compensation expense as part of cost of revenue and operating expenses in the accompanying consolidated statements of operations as follows: Year Ended December 31, 2018 2017 (in thousands) Cost of revenue $ 523 $ 479 Research and development 732 807 Selling and marketing 460 318 General and administrative 589 515 Total $ 2,304 $ 2,119 |
Summary of Activity for Options to Acquire Common Shares | The following table summarizes activity for options to acquire shares of the Company’s common stock in the years ended December 31, 2018 and 2017: Number of Shares Subject to Options (in thousands) Weighted- Average Exercise Price Weighted- Average Grant Date Fair Value Weighted- Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) (1) Balance at December 31, 2016 556 $ 0.85 9.0 $ 5,976 Granted — Exercised (81 ) $ 0.38 $ 4.19 $ 578 Canceled (10 ) $ 4.91 $ 6.32 Balance at December 31, 2017 465 $ 0.84 8.0 $ 1,785 Granted 10 $ 3.93 $ 2.92 Exercised (40 ) $ 0.38 $ 5.80 Canceled (18 ) $ 8.19 $ 8.47 Balance at December 31, 2018 417 $ 0.64 7.1 $ 1,116 Exercisable as of December 31, 2018 285 $ 0.53 7.0 $ 786 (1) Aggregate intrinsic value is calculated as the difference between (i) the exercise price of options that, as of the applicable date, have an exercise price in excess of the fair value of the Company’s common stock, and (ii) the fair value of the Company’s common stock as of the applicable date. |
Summary of Activity for RSUs Relating to Shares of Company's Common Stock | The following table summarizes activity for RSUs relating to shares of the Company’s common stock in the years ended December 31, 2018 and 2017: Number of Shares (in thousands) Weighted-Average Grant Date Fair Value Balance at December 31, 2016 362 $ 9.69 Granted 708 $ 5.09 Vested and settled (90 ) $ 9.66 Forfeited (43 ) $ 9.33 Balance at December 31, 2017 937 $ 7.39 Granted 554 $ 4.39 Vested and settled (285 ) $ 7.78 Forfeited (120 ) $ 5.77 Balance at December 31, 2018 1,086 $ 5.94 |
Summary of Weighted-Average Assumptions Used to Estimate Fair Value of Options to Acquire Shares of Company's Common Stock | The table below sets forth the weighted-average assumptions used in the Black-Scholes option-pricing model to estimate the fair value of options to acquire shares of the Company’s common stock granted to employees during the year ended December 31, 2018. The Company did not grant any options to acquire shares of the Company’s common stock to employees during the year ended December 31, 2017. Year Ended December 31, 2018 Expected term (in years) 6.1 Risk-free interest rates 2.8 % Dividend yield — Expected volatility 87.4 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit) | Income tax expense (benefit) consisted of the following: Year Ended December 31, 2018 2017 (in thousands) Current: Federal $ — $ (599 ) State — (80 ) Total Current — (679 ) Deferred: Federal (987 ) (300 ) State (308 ) (36 ) Change in valuation allowance 1,331 — Total Deferred 36 (336 ) Total income tax expense (benefit) $ 36 $ (1,015 ) |
Reconciliation of Difference between Federal Statutory Income Tax Rate and Effective Income Tax Rate | Reconciliation of the difference between the federal statutory income tax rate and the effective income tax rate is as follows: Year Ended December 31, 2018 2017 Tax provision at Federal statutory rate 21.00 % 34.00 % State taxes 4.37 % 0.78 % Other 1.96 % 1.54 % Impact of tax reform (1) 0.00 % -0.02 % Stock based compensation -4.08 % -2.13 % Change in valuation allowance -23.90 % — Tax provision -0.65 % 34.17 % (1) The effective tax rate for the year ended December 31, 2017 includes the Company’s estimate of the effect of the 2017 Tax Act, which primarily relates to the remeasurement of existing deferred taxes as a result of the change to the U.S. federal corporate income tax rate. |
Summary of Elements of Deferred Tax Assets (Liabilities) | The following table summarizes the elements of the deferred tax assets (liabilities): Year Ended December 31, 2018 2017 (in thousands) Deferred tax assets Accrued vacation and other accrued expenses $ 118 $ 96 Provision for bad debts 136 65 Net operating losses 699 148 Stock based compensation 579 594 Unrealized loss on investments 21 37 State income taxes 9 6 Foreign 343 118 Credits 261 — Gross deferred tax assets 2,166 1,064 Less: Valuation allowance (1,448 ) (118 ) Net deferred tax assets 718 946 Deferred tax liabilities Depreciation 644 820 Other 74 — Total deferred tax liabilities 718 820 Net deferred tax assets (liabilities) $ — $ 126 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Income (Loss) Per Share Computations | The following is a reconciliation of the basic and diluted income (loss) per share computations: Years Ended 2018 2017 (in thousands, except per share data) Net loss $ (5,607 ) $ (2,510 ) Weighted-average common shares - outstanding, basic 17,978 17,739 Weighted-average common shares - outstanding, diluted 17,978 17,739 Net loss per common share, basic $ (0.31 ) $ (0.14 ) Net loss per common share, diluted $ (0.31 ) $ (0.14 ) |
Anti-dilutive Securities Excluded from Calculation of Diluted Income (Loss) Per Share | The following securities have been excluded from the calculation of diluted income (loss) per share for all periods presented because their effect would have been anti-dilutive: Years Ended 2018 2017 (in thousands) Options 413 464 RSUs 857 526 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Equity method investments as of December 31, 2018 and 2017 consisted of the following: December 31, 2018 2017 Carrying Value Ownership Percentage Carrying Value Ownership Percentage (in thousands) (in thousands) FF Gene Biotech $ 1,512 30 % $ 1,937 30 % Total equity method investments $ 1,512 30 % $ 1,937 30 % |
Summary of Financial Information for Equity Method Investees | Summary financial information for FF Gene Biotech is as follows: December 31, 2018 2017 Consolidated Balance Sheet Data: (in thousands) Current Assets $ 1,916 $ 2,474 Non-Current Assets 4,068 4,851 Current Liabilities 2,415 942 Non-Current Liabilities — — Minority Interest — — Stockholders' Equity 3,569 6,383 Years Ended December 31, 2018 2017 Consolidated Statement of Operations Data: (in thousands) Net Sales $ 1,254 $ 90 Gross Profit 67 10 Net Loss (3,101 ) (2,318 ) Share of loss from investments accounted for using the equity method (1) (935 ) (524 ) (1) The Company's share of loss is based on pro-rated net loss beginning April 25, 2017, the date on which the Company entered into the JV Agreement. |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Data | The tables below set forth the Company’s quarterly consolidated statements of operations data for the eight quarters ended December 31, 2018. Three Months Ended Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Mar. 31, 2018 Dec. 31, 2017 Sept. 30, 2017 June 30, 2017 Mar. 31, 2017 (dollars in thousands, except per share data) Statement of Operations Data: Revenue $ 5,673 $ 5,625 $ 5,400 $ 4,653 $ 4,281 $ 4,503 $ 4,640 $ 5,306 Cost of revenue 2,769 2,612 2,544 2,772 2,545 2,268 1,879 1,859 Gross profit 2,904 3,013 2,856 1,881 1,736 2,235 2,761 3,447 Operating expenses: Research and development 1,426 1,438 1,212 1,458 1,324 1,128 920 851 Selling and marketing 1,128 1,115 1,279 1,130 1,080 1,383 851 891 General and administrative 1,379 1,306 1,366 1,487 1,402 1,205 1,140 1,486 Total operating expenses 3,933 3,859 3,857 4,075 3,806 3,716 2,911 3,228 Operating income (loss) (1,029 ) (846 ) (1,001 ) (2,194 ) (2,070 ) (1,481 ) (150 ) 219 Interest and other income, net 98 143 98 95 97 145 120 119 Income (loss) before income taxes and equity loss in investee (931 ) (703 ) (903 ) (2,099 ) (1,973 ) (1,336 ) (30 ) 338 Provision for (benefit from) income taxes 888 (318 ) (100 ) (434 ) (596 ) (415 ) (110 ) 106 Income (loss) before equity loss in investee (1,819 ) (385 ) (803 ) (1,665 ) (1,377 ) (921 ) 80 232 Equity loss in investee (234 ) (210 ) (246 ) (245 ) (247 ) (172 ) (105 ) - Net income (loss) $ (2,053 ) $ (595 ) $ (1,049 ) $ (1,910 ) $ (1,624 ) $ (1,093 ) $ (25 ) $ 232 Net income (loss) per common share: Basic $ (0.11 ) $ (0.03 ) $ (0.06 ) $ (0.11 ) $ (0.09 ) $ (0.06 ) $ (0.00 ) $ 0.01 Diluted $ (0.11 ) $ (0.03 ) $ (0.06 ) $ (0.11 ) $ (0.09 ) $ (0.06 ) $ (0.00 ) $ 0.01 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Roll-Forward of Activity in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Allowance for doubtful accounts at beginning of year | $ 287 | $ 151 |
Bad debt expense | 309 | 160 |
Deductions | (6) | (24) |
Allowance for doubtful accounts at end of year | $ 590 | $ 287 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2018USD ($)CustomerSegment | Dec. 31, 2017Customer | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment losses of long-lived assets | $ 0 | |||
Number of reporting segments | Segment | 1 | |||
Shipping and handling fees incurred | $ 0 | |||
Type of Cost, Good or Service [Extensible List] | us-gaap:ShippingAndHandlingMember | |||
Federal and state tax expense (benefit) prior to reorganization. | $ 0 | |||
Practical expedient not to disclose amount of transaction price allocated to unsatisfied performance obligations | true | |||
Subsequent Event | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease liabilities | $ 3,100,000 | |||
Right-of-use assets | $ 3,100,000 | |||
Accounting Standards Update 2014-09 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Change in accounting principle, adjustment to accumulated deficit and accounts receivable | $ 327,000 | |||
Adjustment to accumulated deficit and deferred taxes | $ (74,000) | |||
Computer Software | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of fixed assets | 3 years | |||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of fixed assets | 3 years | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of fixed assets | 5 years | |||
Customer Concentration Risk | Revenue | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customers | Customer | 1 | 3 | ||
Customer Concentration Risk | Revenue | Customer One | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 13.00% | 14.00% | ||
Customer Concentration Risk | Revenue | Customer Two | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 12.00% | |||
Customer Concentration Risk | Revenue | Customer Three | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 10.00% | |||
Customer Concentration Risk | Accounts Receivable | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customers | Customer | 1 | |||
Customer Concentration Risk | Accounts Receivable | Customer One | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 18.00% | 13.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies -Summary of Cumulative Effect of Changes Made to the Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||
Accounts receivable | $ 5,948 | $ 4,005 | |
Deferred tax asset / (liability) | 126 | ||
Accumulated deficit | (63,018) | $ (57,664) | |
Accounting Standards Update 2014-09 | |||
Assets | |||
Accounts receivable | $ 4,332 | ||
Deferred tax asset / (liability) | 52 | ||
Accumulated deficit | (57,411) | ||
Accounting Standards Update 2014-09 | Adjustments due to ASC 606 | |||
Assets | |||
Accounts receivable | (20) | 327 | |
Deferred tax asset / (liability) | (74) | ||
Accumulated deficit | (20) | $ 253 | |
Accounting Standards Update 2014-09 | Balances without the Adoption of Topic 606 | |||
Assets | |||
Accounts receivable | 5,928 | ||
Accumulated deficit | $ (63,038) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies -Summary of Cumulative Effect of Changes Made to the Condensed Consolidated Statements of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Total revenue | $ 5,673 | $ 5,625 | $ 5,400 | $ 4,653 | $ 4,281 | $ 4,503 | $ 4,640 | $ 5,306 | $ 21,351 | $ 18,730 |
Provision for (benefit from) income taxes | 888 | (318) | (100) | (434) | (596) | (415) | (110) | 106 | 36 | (1,015) |
Net income (loss) | $ (2,053) | $ (595) | $ (1,049) | $ (1,910) | $ (1,624) | $ (1,093) | $ (25) | $ 232 | $ (5,607) | $ (2,510) |
Net income (loss) per common share: | ||||||||||
Basic & Diluted | $ (0.31) | $ (0.14) | ||||||||
Accounting Standards Update 2014-09 | ||||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Total revenue | $ 21,351 | |||||||||
Accounting Standards Update 2014-09 | Adjustments due to ASC 606 | ||||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Total revenue | 307 | |||||||||
Provision for (benefit from) income taxes | 74 | |||||||||
Net income (loss) | $ 233 | |||||||||
Net income (loss) per common share: | ||||||||||
Basic & Diluted | $ 0.01 | |||||||||
Accounting Standards Update 2014-09 | Balances without the Adoption of Topic 606 | ||||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Total revenue | $ 21,658 | |||||||||
Provision for (benefit from) income taxes | 110 | |||||||||
Net income (loss) | $ (5,374) | |||||||||
Net income (loss) per common share: | ||||||||||
Basic & Diluted | $ (0.30) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Revenue from Contracts with Customers by Payor Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||||||||
Revenue from contracts with customers by payor type | $ 5,673 | $ 5,625 | $ 5,400 | $ 4,653 | $ 4,281 | $ 4,503 | $ 4,640 | $ 5,306 | $ 21,351 | $ 18,730 |
Accounting Standards Update 2014-09 | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Type of Revenue [Extensible List] | flgt:GeneticTestingServicesMember | |||||||||
Revenue from contracts with customers by payor type | $ 21,351 | |||||||||
Accounting Standards Update 2014-09 | Clinical Institutional Contracts | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Revenue from contracts with customers by payor type | 19,980 | |||||||||
Accounting Standards Update 2014-09 | Clinical Patient Contracts | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Revenue from contracts with customers by payor type | 547 | |||||||||
Accounting Standards Update 2014-09 | Clinical Insurance Contracts | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Revenue from contracts with customers by payor type | $ 824 |
Marketable Securities - Summary
Marketable Securities - Summary of Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Marketable securities, Amortized Cost Basis | $ 30,776 | $ 35,039 |
Marketable securities, Unrealized Gains | 12 | 2 |
Marketable securities, Unrealized Losses | (104) | (164) |
Marketable securities, Aggregate Fair Value | 30,684 | 34,877 |
Cash and cash equivalents | 6,736 | 6,490 |
Less: Cash equivalents | (2,692) | (723) |
Short-Term Marketable Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Marketable securities, Amortized Cost Basis | 24,393 | 20,040 |
Marketable securities, Unrealized Gains | 1 | 2 |
Marketable securities, Unrealized Losses | (96) | (48) |
Marketable securities, Aggregate Fair Value | 24,298 | 19,994 |
Short-Term Marketable Securities | Money Market Accounts | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cash and cash equivalents | 2,692 | 723 |
Cash and cash equivalents fair value disclosure | 2,692 | 723 |
Short-Term Marketable Securities | United States Treasury | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Marketable securities, Amortized Cost Basis | 990 | |
Marketable securities, Aggregate Fair Value | 990 | |
Short-Term Marketable Securities | Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Marketable securities, Amortized Cost Basis | 22,613 | 20,040 |
Marketable securities, Unrealized Gains | 1 | 2 |
Marketable securities, Unrealized Losses | (96) | (48) |
Marketable securities, Aggregate Fair Value | 22,518 | 19,994 |
Short-Term Marketable Securities | U.S. Government Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Marketable securities, Amortized Cost Basis | 790 | |
Marketable securities, Aggregate Fair Value | 790 | |
Long-Term Marketable Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Marketable securities, Amortized Cost Basis | 6,383 | 14,999 |
Marketable securities, Unrealized Gains | 11 | |
Marketable securities, Unrealized Losses | (8) | (116) |
Marketable securities, Aggregate Fair Value | 6,386 | 14,883 |
Long-Term Marketable Securities | Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Marketable securities, Amortized Cost Basis | 6,383 | 14,999 |
Marketable securities, Unrealized Gains | 11 | |
Marketable securities, Unrealized Losses | (8) | (116) |
Marketable securities, Aggregate Fair Value | $ 6,386 | $ 14,883 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | ||
Gross unrealized loss | $ 104,000 | $ 164,000 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Financial Assets Measured at Fair Value on Recurring Basis Based on Three-Tier Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | $ 30,684 | $ 34,877 |
Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | 33,376 | 35,600 |
Fair Value Measurements Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents fair value disclosure | 2,692 | 723 |
Fair Value Measurements Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | 30,684 | 34,877 |
Fair Value Measurements Recurring | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | 0 | 0 |
Fair Value Measurements Recurring | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | 28,904 | 34,877 |
Fair Value Measurements Recurring | Corporate Debt Securities | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | 0 | 0 |
Fair Value Measurements Recurring | Corporate Debt Securities | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | 28,904 | 34,877 |
Fair Value Measurements Recurring | Corporate Debt Securities | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | 0 | 0 |
Fair Value Measurements Recurring | United States Treasury | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | 990 | |
Fair Value Measurements Recurring | United States Treasury | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | 0 | |
Fair Value Measurements Recurring | United States Treasury | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | 990 | |
Fair Value Measurements Recurring | United States Treasury | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | 0 | |
Fair Value Measurements Recurring | Money Market Accounts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents fair value disclosure | 2,692 | 723 |
Fair Value Measurements Recurring | Money Market Accounts | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents fair value disclosure | 2,692 | 723 |
Fair Value Measurements Recurring | Money Market Accounts | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents fair value disclosure | 0 | 0 |
Fair Value Measurements Recurring | Money Market Accounts | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents fair value disclosure | 0 | $ 0 |
Fair Value Measurements Recurring | U.S. Government Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | 790 | |
Fair Value Measurements Recurring | U.S. Government Agency Securities | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | 0 | |
Fair Value Measurements Recurring | U.S. Government Agency Securities | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | 790 | |
Fair Value Measurements Recurring | U.S. Government Agency Securities | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair value asset, investments measured using unobservable inputs | $ 0 | $ 0 |
Fair value assets, transfers between levels, amount | 0 | 0 |
Unrealized losses for securities in an unrealized loss position for more than 12 months | 84,000 | |
Other-than-temporary impairment losses related to marketable securities | $ 0 | $ 0 |
Fixed Assets - Major Classes of
Fixed Assets - Major Classes of Fixed Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 12,332 | $ 11,039 |
Less: Accumulated depreciation | (5,886) | (3,767) |
Fixed assets, net | 6,446 | 7,272 |
Computer Hardware | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 1,579 | 1,435 |
Useful life in years | 3 years | |
Computer Software | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 495 | 463 |
Useful life in years | 3 years | |
Medical Lab Equipment | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 8,136 | 7,145 |
Useful life in years | 5 years | |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 233 | 159 |
Useful life in years | 5 years | |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 802 | 763 |
Useful life in years | Shorter of lease term or estimated useful life | |
Assets Not Yet Placed in Service | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 1,087 | $ 1,074 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense on fixed assets | $ 2,163 | $ 1,728 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Reagents | $ 314 | $ 231 |
Prepaid expenses | 706 | 624 |
Prepaid income taxes | 1,251 | 1,313 |
Marketable securities interest receivable | 220 | 204 |
Other receivable | 70 | 66 |
Total | $ 2,561 | $ 2,438 |
Reporting Segment and Geograp_3
Reporting Segment and Geographical Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 1 |
Reporting Segment and Geograp_4
Reporting Segment and Geographical Information - Summary of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||||||||
Revenue | $ 5,673 | $ 5,625 | $ 5,400 | $ 4,653 | $ 4,281 | $ 4,503 | $ 4,640 | $ 5,306 | $ 21,351 | $ 18,730 |
United States | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenue | 12,579 | 9,024 | ||||||||
Canada | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenue | 3,984 | 4,091 | ||||||||
People's Republic of China ("PRC") | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenue | 109 | 2,614 | ||||||||
Other Countries | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenue | $ 4,679 | $ 3,001 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jan. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies [Line Items] | ||||
Operating leases, rent expense | $ 418,000 | $ 250,000 | ||
Reagents Equipment and Maintenance Agreements | ||||
Commitments And Contingencies [Line Items] | ||||
Non-cancelable purchase obligations | $ 5,700,000 | |||
California | ||||
Commitments And Contingencies [Line Items] | ||||
Operating leases, rent expense | $ 279,000 | $ 269,000 | ||
Lease commencement date | Aug. 13, 2018 | Feb. 1, 2018 | ||
Lease expiration date | Aug. 31, 2023 | Jan. 31, 2021 | ||
Non Cancelable Operating Lease | ||||
Commitments And Contingencies [Line Items] | ||||
Operating leases term of expiration | 2023-08 | |||
Operating leases, renewal term | 3 years |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Payments under Non-Cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2019 | $ 560 |
2020 | 559 |
2021 | 550 |
2022 | 558 |
Thereafter | 1,429 |
Total minimum lease payments | $ 3,656 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | May 31, 2017 | Apr. 30, 2017 | |
Equity [Abstract] | ||||
Unrealized holding gains (losses) on marketable securities | $ 21,000 | $ 37,000 | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 200,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares outstanding | 0 | 0 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Equity-Based Compensation Expenses as Part of Cost of Revenue and Operating Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Equity-based compensation expense | $ 2,304 | $ 2,119 |
Cost of Revenue | ||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Equity-based compensation expense | 523 | 479 |
Research and Development | ||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Equity-based compensation expense | 732 | 807 |
Selling and Marketing | ||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Equity-based compensation expense | 460 | 318 |
General and Administrative | ||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Equity-based compensation expense | $ 589 | $ 515 |
Equity-Based Compensation - S_2
Equity-Based Compensation - Summary of Activity for Options to Acquire Common Shares (Details) - Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Units/Shares Subject to Options, Beginning Balance | 465,000 | 556,000 | |
Number of Units/Shares Subject to Options, Granted | 10,000 | 0 | |
Number of Units/Shares Subject to Options, Exercised | (40,000) | (81,000) | |
Number of Units/Shares Subject to Options, Canceled | (18,000) | (10,000) | |
Number of Units/Shares Subject to Options, Ending Balance | 417,000 | 465,000 | 556,000 |
Number of Units/Shares Subject to Options, Exercisable | 285,000 | ||
Weighted-Average Exercise Price Per Shares, Beginning Balance | $ 0.84 | $ 0.85 | |
Weighted-Average Exercise Price Per Shares, Granted | 3.93 | ||
Weighted-Average Exercise Price Per Shares, Exercised | 0.38 | 0.38 | |
Weighted-Average Exercise Price Per Shares, Canceled | 8.19 | 4.91 | |
Weighted-Average Exercise Price Per Shares, Ending Balance | 0.64 | 0.84 | $ 0.85 |
Weighted-Average Exercise Price Per Shares, Exercisable | 0.53 | ||
Weighted-Average Grant Date Fair Value, Granted | 2.92 | ||
Weighted-Average Grant Date Fair Value, Exercised | 5.80 | 4.19 | |
Weighted-Average Grant Date Fair Value, Canceled | $ 8.47 | $ 6.32 | |
Weighted-Average Remaining Contractual Life (in years) | 7 years 1 month 6 days | 8 years | 9 years |
Weighted-Average Remaining Contractual Life (in years), Exercisable | 7 years | ||
Aggregate Intrinsic Value, Balance | $ 1,116 | $ 1,785 | $ 5,976 |
Aggregate Intrinsic Value, Exercised | $ 578 | ||
Aggregate Intrinsic Value, Exercisable | $ 786 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Option granted | 10,000 | 0 | |
Total fair value of options vested | $ 645,000 | $ 1,100,000 | |
Unrecognized compensation expense | $ 146,000 | ||
Expected to be recognized, weighted-average period | 7 months 6 days | ||
Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected to be recognized, weighted-average period | 2 years 10 months 24 days | 3 years 4 months 24 days | |
Units granted | 0 | ||
Total compensation cost not yet recognized on grant date | $ 2,400,000 | $ 4,800,000 | |
Compensation cost not yet recognized on grant date, period for recognition | 4 years | ||
Unrecognized compensation expense | $ 5,600,000 | $ 6,200,000 |
Equity-Based Compensation - S_3
Equity-Based Compensation - Summary of Activity for RSUs Relating to Shares of Company's Common Stock (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | |||
Number of Shares, Granted | 0 | ||
2016 Omnibus Incentive Plan | |||
Number of Shares | |||
Number of Shares, Beginning Balance | 937,000 | 362,000 | |
Number of Shares, Granted | 554,000 | 708,000 | |
Number of Shares, Vested and settled | (285,000) | (90,000) | |
Number of Shares, Forfeited | (120,000) | (43,000) | |
Number of Shares, Ending Balance | 1,086,000 | 937,000 | 362,000 |
Weighted-Average Grant-Date Fair Value, Balance | $ 7.39 | $ 9.69 | |
Weighted-Average Grant-Date Fair Value, Granted | 4.39 | 5.09 | |
Weighted-Average Grant-Date Fair Value, Vested and settled | 7.78 | 9.66 | |
Weighted-Average Grant-Date Fair Value, Forfeited | 5.77 | 9.33 | |
Weighted-Average Grant-Date Fair Value, Balance | $ 5.94 | $ 7.39 | $ 9.69 |
Equity-Based Compensation - S_4
Equity-Based Compensation - Summary of Weighted-Average Assumptions Used to Estimate Fair Value of Options to Acquire Shares of Company's Common Stock (Details) - Options | 12 Months Ended |
Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected term (in years) | 6 years 1 month 6 days |
Risk-free interest rates | 2.80% |
Expected volatility | 87.40% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||
Current provision for income taxes | $ 0 | $ (679,000) |
Federal statutory income tax rate | 21.00% | 34.00% |
Net deferred tax asset | $ 718,000 | $ 946,000 |
Tax Cuts and Jobs Act of 2017, income tax expense related to revaluation of net deferred tax assets | 22,000 | |
Tax Cuts and Jobs Act of 2017, unrepatriated foreign earnings | 0 | |
Tax-related interests or penalties accrued | $ 0 | $ 0 |
Maximum | ||
Income Taxes [Line Items] | ||
Federal statutory income tax rate | 35.00% | |
State | ||
Income Taxes [Line Items] | ||
Net deferred tax asset | $ 90,000 | |
Federal | ||
Income Taxes [Line Items] | ||
Net deferred tax asset | $ 36,000 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | ||||||||||
Federal | $ (599,000) | |||||||||
State | (80,000) | |||||||||
Total Current | $ 0 | (679,000) | ||||||||
Deferred: | ||||||||||
Federal | (987,000) | (300,000) | ||||||||
State | (308,000) | (36,000) | ||||||||
Change in valuation allowance | 1,331,000 | |||||||||
Total Deferred | 36,000 | (336,000) | ||||||||
Total income tax expense (benefit) | $ 888,000 | $ (318,000) | $ (100,000) | $ (434,000) | $ (596,000) | $ (415,000) | $ (110,000) | $ 106,000 | $ 36,000 | $ (1,015,000) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Difference between Federal Statutory Income Tax Rate and Effective Income Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Tax provision at Federal statutory rate | 21.00% | 34.00% |
State taxes | 4.37% | 0.78% |
Other | 1.96% | 1.54% |
Impact of tax reform | 0.00% | (0.02%) |
Stock based compensation | (4.08%) | (2.13%) |
Change in valuation allowance | (23.90%) | |
Tax provision | (0.65%) | 34.17% |
Income Taxes - Summary of Eleme
Income Taxes - Summary of Elements of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Accrued vacation and other accrued expenses | $ 118 | $ 96 |
Provision for bad debts | 136 | 65 |
Net operating losses | 699 | 148 |
Stock based compensation | 579 | 594 |
Unrealized loss on investments | 21 | 37 |
State income taxes | 9 | 6 |
Foreign | 343 | 118 |
Credits | 261 | |
Gross deferred tax assets | 2,166 | 1,064 |
Less: Valuation allowance | (1,448) | (118) |
Net deferred tax assets | 718 | 946 |
Deferred tax liabilities | ||
Depreciation | 644 | 820 |
Other | 74 | |
Total deferred tax liabilities | $ 718 | 820 |
Net deferred tax assets (liabilities) | $ 126 |
Income (Loss) Per Share - Recon
Income (Loss) Per Share - Reconciliation of Basic and Diluted Income (Loss) Per Share Computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||||||||||
Net loss | $ (2,053) | $ (595) | $ (1,049) | $ (1,910) | $ (1,624) | $ (1,093) | $ (25) | $ 232 | $ (5,607) | $ (2,510) |
Weighted-average common shares - outstanding, basic | 17,978 | 17,739 | ||||||||
Weighted-average common shares - outstanding, diluted | 17,978 | 17,739 | ||||||||
Net loss per common share, basic | $ (0.31) | $ (0.14) | ||||||||
Net loss per common share, diluted | $ (0.31) | $ (0.14) |
Income (Loss) Per Share - Anti-
Income (Loss) Per Share - Anti-dilutive Securities Excluded from Calculation of Diluted Income (Loss) Per Share (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of diluted income (loss) per share | 413 | 464 |
Restricted Stock Units (RSUs) | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of diluted income (loss) per share | 857 | 526 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Company matching contributions to the 401(k) plan | $ 176,000 | $ 108,000 |
Maximum | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer matching contribution, percent of match | 3.00% |
Related Party - Additional Info
Related Party - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Apr. 30, 2017 | |
Related Party Transaction [Line Items] | |||
Ownership percentage | 30.00% | 30.00% | |
Xilong Scientific | |||
Related Party Transaction [Line Items] | |||
Ownership percentage of common stock outstanding shares | 11.00% | ||
FF Gene Biotech | FJIP | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 19.00% | ||
Fulgent Pharma | |||
Related Party Transaction [Line Items] | |||
Due from related parties | $ 22,000 | $ 3,000 | |
Dr. Han Lin Gao | FF Gene Biotech | FJIP | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 25.00% | ||
Research Testing Services | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 0 | 0 | |
Foundation | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 33,000 | 22,000 | |
Due from related parties | 0 | 0 | |
University | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 66,000 | 82,600 | |
Due from related parties | $ 51,000 | $ 40,000 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2017CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018CNY (¥) | |
Schedule Of Equity Method Investments [Line Items] | ||||
Ownership interest to be made in joint venture | 30.00% | 30.00% | 30.00% | |
FF Gene Biotech | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Contribution to be made in joint venture | ¥ 60,000,000 | |||
Contribution period in joint venture | 3 years | |||
Ownership interest to be made in joint venture | 30.00% | 30.00% | 30.00% | 30.00% |
Contributions remain for joint venture | $ 5,900,000 | ¥ 40,300,000 | ||
Contributions made to joint venture | $ | 510,000 | $ 2,500,000 | ||
FF Gene Biotech | Equipment | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Contributions made to joint venture | $ | $ 3,000,000 | |||
Xilong Scientific | FF Gene Biotech | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Contribution to be made in joint venture | ¥ 102,000,000 | |||
Contribution period in joint venture | 3 years | |||
Ownership interest to be made in joint venture | 51.00% | |||
FJIP | FF Gene Biotech | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Contribution to be made in joint venture | ¥ 19,000,000 | |||
Contribution period in joint venture | 5 years | |||
Ownership interest to be made in joint venture | 19.00% |
Equity Method Investments - Sch
Equity Method Investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 30, 2017 |
Schedule Of Equity Method Investments [Line Items] | |||
Carrying Value | $ 1,512 | $ 1,937 | |
Ownership Percentage | 30.00% | 30.00% | |
FF Gene Biotech | |||
Schedule Of Equity Method Investments [Line Items] | |||
Carrying Value | $ 1,512 | $ 1,937 | |
Ownership Percentage | 30.00% | 30.00% | 30.00% |
Equity Method Investments - Sum
Equity Method Investments - Summary of Financial Information for Equity Method Investees, Balance Sheet Data (Details) - FF Gene Biotech - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Equity Method Investments [Line Items] | ||
Current Assets | $ 1,916 | $ 2,474 |
Non-Current Assets | 4,068 | 4,851 |
Current Liabilities | 2,415 | 942 |
Non-Current Liabilities | ||
Stockholders' Equity | $ 3,569 | $ 6,383 |
Equity Method Investments - S_2
Equity Method Investments - Summary of Financial Information for Equity Method Investees, Statement of Operations Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Equity Method Investments [Line Items] | |||||||||
Share of loss from investments accounted for using the equity method (1) | $ (234) | $ (210) | $ (246) | $ (245) | $ (247) | $ (172) | $ (105) | $ (935) | $ (524) |
FF Gene Biotech | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Net Sales | 1,254 | 90 | |||||||
Gross Profit | 67 | 10 | |||||||
Net Loss | (3,101) | (2,318) | |||||||
Share of loss from investments accounted for using the equity method (1) | $ (935) | $ (524) |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) - Unaudited Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Operations Data: | ||||||||||
Revenue | $ 5,673 | $ 5,625 | $ 5,400 | $ 4,653 | $ 4,281 | $ 4,503 | $ 4,640 | $ 5,306 | $ 21,351 | $ 18,730 |
Cost of revenue | 2,769 | 2,612 | 2,544 | 2,772 | 2,545 | 2,268 | 1,879 | 1,859 | 10,697 | 8,551 |
Gross profit | 2,904 | 3,013 | 2,856 | 1,881 | 1,736 | 2,235 | 2,761 | 3,447 | 10,654 | 10,179 |
Operating expenses: | ||||||||||
Research and development | 1,426 | 1,438 | 1,212 | 1,458 | 1,324 | 1,128 | 920 | 851 | 5,534 | 4,223 |
Selling and marketing | 1,128 | 1,115 | 1,279 | 1,130 | 1,080 | 1,383 | 851 | 891 | 4,652 | 4,205 |
General and administrative | 1,379 | 1,306 | 1,366 | 1,487 | 1,402 | 1,205 | 1,140 | 1,486 | 5,538 | 5,233 |
Total operating expenses | 3,933 | 3,859 | 3,857 | 4,075 | 3,806 | 3,716 | 2,911 | 3,228 | 15,724 | 13,661 |
Operating loss | (1,029) | (846) | (1,001) | (2,194) | (2,070) | (1,481) | (150) | 219 | (5,070) | (3,482) |
Interest and other income, net | 98 | 143 | 98 | 95 | 97 | 145 | 120 | 119 | 434 | 481 |
Loss before income taxes and equity loss in investee | (931) | (703) | (903) | (2,099) | (1,973) | (1,336) | (30) | 338 | (4,636) | (3,001) |
Provision for (benefit from) income taxes | 888 | (318) | (100) | (434) | (596) | (415) | (110) | 106 | 36 | (1,015) |
Income (loss) before equity loss in investee | (1,819) | (385) | (803) | (1,665) | (1,377) | (921) | 80 | 232 | (4,672) | (1,986) |
Equity loss in investee | (234) | (210) | (246) | (245) | (247) | (172) | (105) | (935) | (524) | |
Net loss | $ (2,053) | $ (595) | $ (1,049) | $ (1,910) | $ (1,624) | $ (1,093) | $ (25) | $ 232 | $ (5,607) | $ (2,510) |
Net income (loss) per common share: | ||||||||||
Basic | $ (0.11) | $ (0.03) | $ (0.06) | $ (0.11) | $ (0.09) | $ (0.06) | $ 0 | $ 0.01 | ||
Diluted | $ (0.11) | $ (0.03) | $ (0.06) | $ (0.11) | $ (0.09) | $ (0.06) | $ 0 | $ 0.01 |