Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 01, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
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 | 21,564,971 | ||
Entity Public Float | $ 38.8 | ||
Entity File Number | 001-37894 | ||
Entity Tax Identification Number | 81-2621304 | ||
Entity Address, Address Line One | 4978 Santa Anita Avenue | ||
Entity Address, Address Line Two | Suite 205 | ||
Entity Address, City or Town | Temple City | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 91780 | ||
City Area Code | 626 | ||
Local Phone Number | 350-0537 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | ||
Security Exchange Name | NASDAQ | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Certain portions of the registrant’s definitive proxy statement for its 2020 annual meeting of stockholders are incorporated by reference in Part III of this report. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 11,965 | $ 6,736 |
Marketable securities | 16,304 | 24,298 |
Trade accounts receivable, net of allowance for doubtful accounts of $751 and $590, as of December 31, 2019 and 2018, respectively | 6,555 | 5,948 |
Other current assets | 2,255 | 2,561 |
Total current assets | 37,079 | 39,543 |
Marketable securities, long-term | 41,947 | 6,386 |
Equity method investments | 872 | 1,512 |
Fixed assets, net | 5,974 | 6,446 |
Operating lease right-of-use asset | 2,633 | |
Other long-term assets | 251 | 17 |
Total assets | 88,756 | 53,904 |
Current liabilities | ||
Accounts payable | 1,581 | 1,313 |
Accrued liabilities | 1,333 | 1,259 |
Income tax payable | 24 | |
Contract liabilities | 365 | 166 |
Operating lease liabilities, short-term | 420 | |
Total current liabilities | 3,723 | 2,738 |
Operating lease liabilities, long-term | 2,256 | |
Other long-term liabilities | 14 | |
Total liabilities | 5,979 | 2,752 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity | ||
Common stock, $0.0001 par value per share, 50,000 shares authorized, 21,483 and 18,172 shares issued and outstanding at December 31, 2019 and 2018, respectively | 2 | 2 |
Preferred stock, $0.0001 par value per share, 1,000 shares authorized, no shares issued or outstanding at December 31, 2019 and 2018 | ||
Additional paid-in capital | 146,058 | 114,203 |
Accumulated other comprehensive income (loss) | 146 | (35) |
Accumulated deficit | (63,429) | (63,018) |
Total stockholders’ equity | 82,777 | 51,152 |
Total liabilities and stockholders’ equity | $ 88,756 | $ 53,904 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 751 | $ 590 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 21,483,000 | 18,172,000 |
Common stock, shares outstanding | 21,483,000 | 18,172,000 |
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 | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||||||||
Revenue | $ 8,387 | $ 10,347 | $ 8,424 | $ 5,370 | $ 5,673 | $ 5,625 | $ 5,400 | $ 4,653 | $ 32,528 | $ 21,351 |
Cost of revenue | 3,634 | 3,885 | 3,620 | 2,968 | 2,769 | 2,612 | 2,544 | 2,772 | 14,107 | 10,697 |
Gross profit | 4,753 | 6,462 | 4,804 | 2,402 | 2,904 | 3,013 | 2,856 | 1,881 | 18,421 | 10,654 |
Operating expenses: | ||||||||||
Research and development | 1,795 | 1,744 | 1,574 | 1,424 | 1,426 | 1,438 | 1,212 | 1,458 | 6,537 | 5,534 |
Selling and marketing | 1,635 | 1,687 | 1,304 | 1,272 | 1,128 | 1,115 | 1,279 | 1,130 | 5,898 | 4,652 |
General and administrative | 1,732 | 1,522 | 1,631 | 1,529 | 1,379 | 1,306 | 1,366 | 1,487 | 6,414 | 5,538 |
Total operating expenses | 5,162 | 4,953 | 4,509 | 4,225 | 3,933 | 3,859 | 3,857 | 4,075 | 18,849 | 15,724 |
Operating income (loss) | (409) | 1,509 | 295 | (1,823) | (1,029) | (846) | (1,001) | (2,194) | (428) | (5,070) |
Interest and other income, net | 249 | 189 | 192 | 207 | 98 | 143 | 98 | 95 | 837 | 434 |
Income (loss) before income taxes and equity loss in investee | (160) | 1,698 | 487 | (1,616) | (931) | (703) | (903) | (2,099) | 409 | (4,636) |
Provision for income taxes | (38) | 61 | 7 | 13 | 888 | (318) | (100) | (434) | 43 | 36 |
Income (loss) before equity loss in investee | (122) | 1,637 | 480 | (1,629) | (1,819) | (385) | (803) | (1,665) | 366 | (4,672) |
Equity loss in investee | (174) | (175) | (149) | (279) | (234) | (210) | (246) | (245) | (777) | (935) |
Net income (loss) | $ (296) | $ 1,462 | $ 331 | $ (1,908) | $ (2,053) | $ (595) | $ (1,049) | $ (1,910) | $ (411) | $ (5,607) |
Net loss per common share: | ||||||||||
Basic | $ (0.01) | $ 0.08 | $ 0.02 | $ (0.10) | $ (0.11) | $ (0.03) | $ (0.06) | $ (0.11) | $ (0.02) | $ (0.31) |
Diluted | $ (0.01) | $ 0.08 | $ 0.02 | $ (0.10) | $ (0.11) | $ (0.03) | $ (0.06) | $ (0.11) | $ (0.02) | $ (0.31) |
Weighted-average common shares: | ||||||||||
Basic | 18,709 | 17,978 | ||||||||
Diluted | 18,709 | 17,978 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (411) | $ (5,607) |
Other comprehensive income (loss) | ||
Foreign currency translation loss | (17) | (44) |
Net unrealized gain on marketable securities, net of tax | 198 | 53 |
Comprehensive loss | $ (230) | $ (5,598) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Underwriters | Equity Distribution Agreement | Stockholders' Equity | Stockholders' EquityUnderwriters | Stockholders' EquityEquity Distribution Agreement | Additional Paid-In Capital | Additional Paid-In CapitalUnderwriters | Additional Paid-In CapitalEquity Distribution Agreement | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning Balance at Dec. 31, 2017 | $ 54,178 | $ 2 | $ 111,884 | $ (44) | $ (57,664) | ||||||
Beginning Balance, Shares at Dec. 31, 2017 | 17,847,000 | ||||||||||
Equity-based compensation | 2,304 | 2,304 | |||||||||
Exercise of common stock options | 15 | 15 | |||||||||
Exercise of common stock options, Shares | 40,000 | ||||||||||
Restricted stock awards, Shares | 285,000 | ||||||||||
Cumulative effect of accounting change | 327 | 327 | |||||||||
Cumulative tax effect of accounting change | (74) | (74) | |||||||||
Other comprehensive gain (loss), net | 9 | 9 | |||||||||
Net income (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 | 18,172,000 | |||||||||
Equity-based compensation | $ 3,209 | 3,209 | |||||||||
Exercise of common stock options | 38 | 38 | |||||||||
Exercise of common stock options, Shares | 100,000 | ||||||||||
Restricted stock awards, Shares | 434,000 | ||||||||||
Issuance of common stock | $ 27,650 | $ 979 | $ 27,650 | $ 979 | |||||||
Issuance of common stock, Shares | 2,674,000 | 104,000 | |||||||||
Repurchases of capital stock | (21) | (21) | |||||||||
Repurchases of capital stock, Shares | (1,000) | ||||||||||
Other comprehensive gain (loss), net | 181 | 181 | |||||||||
Net income (loss) | (411) | (411) | |||||||||
Ending Balance at Dec. 31, 2019 | $ 82,777 | $ 2 | $ 146,058 | $ 146 | $ (63,429) | ||||||
Ending Balance, Shares at Dec. 31, 2019 | 21,483,000 | 21,483,000 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - Weighted-Average - Common Stock | Dec. 31, 2019$ / shares |
Underwriters | |
Selling price per share | $ 10.34 |
Equity Distribution Agreement | |
Selling price per share | $ 9.37 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flow from operating activities: | ||
Net loss | $ (411) | $ (5,607) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Equity-based compensation | 3,209 | 2,304 |
Depreciation | 2,107 | 2,163 |
Noncash lease expense | 413 | |
Loss on disposal of fixed asset | 11 | 88 |
Amortization of premium of marketable securities | 106 | 297 |
Provision for bad debt | 189 | 309 |
Deferred taxes | (21) | 36 |
Equity loss in investee | 777 | 935 |
Other | 52 | 44 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (839) | (1,970) |
Other current and long-term assets | 374 | 91 |
Accounts payable | (329) | 102 |
Accrued liabilities and other current liabilities | 264 | 533 |
Income tax payable | 24 | |
Operating lease liabilities | (409) | |
Net cash provided by (used in) operations | 5,517 | (675) |
Cash flow from investing activities: | ||
Purchases of fixed assets | (1,182) | (2,322) |
Purchase of marketable securities | (52,077) | (24,187) |
Maturities of marketable securities | 24,350 | 27,969 |
Purchase of equipment contributed to Equity Method Investee | (137) | (510) |
Net cash (used in) provided by investing activities | (29,046) | 950 |
Cash flow from financing activities: | ||
Proceeds from public offerings of common stock, net of issuance costs | 28,758 | |
Proceeds from exercise of stock options | 38 | 15 |
Repurchases of capital stock | (21) | |
Net cash provided by financing activities | 28,775 | 15 |
Effect of exchange rate changes on cash and cash equivalents | (17) | (44) |
Net increase in cash and cash equivalents | 5,229 | 246 |
Cash and cash equivalents at beginning of period | 6,736 | 6,490 |
Cash and cash equivalents at end of period | 11,965 | 6,736 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | 20 | 1 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchases of fixed assets in accounts payable | 557 | $ 85 |
Operating lease right-of-use assets obtained in exchange for lease liabilities | 110 | |
Public offerings costs included in accounts payable | $ 129 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
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”). In 2019, the Company launched its first patient-initiated product, Picture Genetics, a new line of at-home screening tests combines the Company’s advanced NGS solutions with actionable results and genetic counseling options for individuals. 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, 2019 | |
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, 2019 2018 (in thousands) Allowance for doubtful accounts at beginning of year $ 590 $ 287 Bad debt expense 189 309 Deductions (28 ) (6 ) Allowance for doubtful accounts at end of year $ 751 $ 590 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, 2019, 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 28% of total revenue in the year ended December 31, 2019, and one customer comprised 13% of total revenue in the year ended December 31, 2018. No customer comprised at least 10% of total accounts receivable as of December 31, 2019. One customer comprised 18% of total accounts receivable as of December 31, 2018. Revenue from the U.S. government was less than 10% of total revenue in each of the years ended December 31, 2019 and 2018. 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. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included as operating lease right-of-use (“ROU”) assets, operating lease liabilities, short-term, and operating lease liabilities, long-term, on the Company’s Consolidated Balance Sheets. ROU lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating ROU lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term, including options to extend the lease when it is reasonably certain that the Company will exercise that option. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments since its leases do not provide an implicit rate. The ROU lease asset includes any base rent payments made and excludes lease incentives and variable operating expenses. Lease expense for lease payments is recognized on a straight-line basis over the lease term. 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 Performance Obligations Genetic Testing Services Clinical – Institutional and Patient Direct Pay The Company’s 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 the Company’s 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 the Company’s ordering facility at a point in time. Specifically, we determined the customer obtains control of the promised service upon delivery of test results. Clinical – Insurance The Company’s 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 the Company’s 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. The Company’s 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 the Company’s ordering physicians at a point in time. Specifically, we determined the customer obtains control of the promised service upon 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 the Company’s 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. The Company’s 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. 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. 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 average rates in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in other comprehensive income (loss) as a component 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 resulting from the remeasurements are included in interest and other income, net in the accompanying Consolidated Statements of Operations. Gains and losses from these remeasurements were not significant in the year ended December 31, 2019. Comprehensive Loss Comprehensive loss is comprised of net loss and other comprehensive income or loss. Other comprehensive income or loss consists of unrealized gain or 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 income or loss to net loss during the year ended December 31, 2019. 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. 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 the Company’s revenue and cash flows are affected by economic factors. The following table summarizes revenue from contracts with customers by payor type for the years ended December 31, 2019 and 2018. Year Ended December 31, 2019 2018 (in thousands) Genetic Testing Services by payor Institutional $ 31,284 $ 19,980 Patient 539 547 Insurance 705 824 Total Revenue $ 32,528 $ 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. Contract Balances Receivables from contracts with customers - As of December 31, 2019 and 2018, receivables from contracts with customers were approximately $6.6 and $5.9 million, respectively, and are included within Trade accounts receivable on the Consolidated Balance Sheets. Contracts assets and liabilities - As of December 31, 2019 and 2018, contract assets from contracts with customers were $150,000, associated with contract execution and included in other current assets in the accompanying Consolidated Balance Sheets. Contract liabilities are recorded when the Company receives payment prior to completing its obligation to transfer goods or services to a customer. The Company had $365,000 and $166,000 of contract liabilities as of December 31, 2019 and 2018, respectively. Revenues of $59,000 and $16,000 for the years ended December 31, 2019 and 2018, respectively, related to contract liabilities at the beginning of the respective periods were recognized. Reclassifications Certain reclassifications have been made to the consolidated financial statements of the prior year in order to conform to the current year presentation. These reclassifications had no impact on shareholder’s equity or net income for the year ended December 31, 2018. In the Consolidated Balance Sheet for the year ended December 31, 2018, the financial statement line item Contract liabilities was reclassified from Accrued Liabilities. 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, 2019. 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. 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 the Company’s disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on the Company’s consolidated financial statements or disclosures. 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 ASU No. 2016-02 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases See Note 9, Leases, for further information. 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. 2017-08 In March 2017, the FASB issued ASU No. 2017-08, Receivables–Nonrefundable Fees and Other Costs (Subtopic 310-20). 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 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 . ASU No. 2019-12 In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) he requirement to recognize a deferred tax liability for equity method investments, the ability not to recognize a deferred tax liability for a foreign subsidiary, and the general methodology for calculating income taxes in an interim period. Other changes include requiring entities to recognize franchise tax that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, evaluate tax basis step-up in goodwill obtained in a transaction that is not a business combination, and reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date, making minor codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method, and specifying that an entity is not required to allocate the consolidated current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements. This amendment is effective for public business entities beginning after December 15, 2020 |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | Note 3. Marketable Securities The Company’s marketable securities consisted of the following: December 31, 2019 Amortized Cost Basis Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Marketable securities: Short-term Money market accounts $ 4,700 $ — $ — $ 4,700 Corporate debt securities 17,962 43 (2 ) 18,003 Less: Cash equivalents (6,399 ) — — (6,399 ) Total short-term marketable securities 16,263 43 (2 ) 16,304 Corporate debt securities 41,861 116 (30 ) 41,947 Total long-term marketable securities 41,861 116 (30 ) 41,947 Total marketable securities $ 58,124 $ 159 $ (32 ) $ 58,251 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 Total marketable securities $ 30,776 $ 12 $ (104 ) $ 30,684 Management determined that the gross unrealized losses of $32,000 on the Company’s marketable securities as of December 31, 2019 were temporary in nature. Gross unrealized losses on the Company’s marketable securities were $104,000 as of December 31, 2018. 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, 2019. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 Total Level 1 Level 2 Level 3 (in thousands) Marketable securities and cash equivalents: Corporate debt securities $ 59,950 $ — $ 59,950 $ — Money market accounts 4,700 4,700 — — Total marketable securities and cash equivalents $ 64,650 $ 4,700 $ 59,950 $ — December 31, 2018 Total Level 1 Level 2 Level 3 (in thousands) Marketable securities and cash equivalents: 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 and cash equivalents $ 33,376 $ 2,692 $ 30,684 $ — 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, 2019 and 2018, 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, 2019 and 2018. Gross unrealized gains or losses for cash equivalents and marketable securities as of December 31, 2019 were not material. As of December 31, 2019, unrealized losses for securities in an unrealized loss position for more than 12 months were zero. During the years ended December 31, 2019 and 2018, the Company did not recognize other-than-temporary impairment losses related to its marketable securities. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Fixed Assets | Note 5. Fixed Assets Major classes of fixed assets consisted of the following: December 31, Useful Lives 2019 2018 (in thousands) Computer hardware 3 Years $ 1,705 $ 1,579 Computer software 3 Years 541 495 Medical lab equipment 5 Years 10,493 8,136 Furniture and fixtures 5 Years 235 233 Leasehold improvements Shorter of lease term or estimated useful life 876 802 Assets not yet placed in service 114 1,087 Total 13,964 12,332 Less: Accumulated depreciation (7,990 ) (5,886 ) Property and equipment, net $ 5,974 $ 6,446 Depreciation expense on fixed assets totaled $2.1 million and $2.2 million for the years ended December 31, 2019 and 2018, respectively. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 (in thousands) Reagents $ 277 $ 314 Contract assets 150 150 Prepaid expenses 1,288 556 Prepaid income taxes 46 1,251 Marketable securities interest receivable 478 220 Other receivable 16 70 Total $ 2,255 $ 2,561 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, 2019 | |
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. Long-lived assets were primarily located in the United States as of December 31, 2019 with an insignificant amount located in Canada. Year Ended December 31, 2019 2018 (in thousands) Revenue: United States $ 25,014 $ 12,579 Foreign: Canada 2,245 3,984 Other Countries 5,269 4,788 Total $ 32,528 $ 21,351 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8. Commitments and Contingencies Operating Leases See Note 9, Leases, for further information. 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, 2019, the Company had non-cancelable purchase obligations of $2.9 million for reagents and other supplies, of which, $1.5 million is payable within twelve months 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 9. Leases The Company has various non-cancelable operating leases with varying terms through August 2023 primarily for office space. The Company has options to renew some of these leases for three years after their expiration. The Company considers these options, which may be elected at the Company’s sole discretion, in determining the lease term on a lease-by-lease basis. The Company does not have any finance leases or leases with variable lease payments. The determination of whether an arrangement contains a lease is made at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. 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. 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 functions. Rent expense, including sublease consideration, was approximately $548,000 and $418,000 for the years ended December 31, 2019 and 2018, respectively. The Company adopted new accounting standard ASC 842, Leases As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on information available at the commencement date in determining the discount rate used to calculate present value lease payment. The Company determined its incremental borrowing rate based on inquiries with its bank. The Company’s lease agreements do not contain any residual value guarantees, material restrictive covenants, bargain purchase options or asset retirement obligations. Lease expense for the Company’s operating leases is recognized on a straight-line basis over the lease term. The Company’s leases do not contain variable lease payments. The Company does not have any short-term leases and thus has excluded short-term costs from the table below. Other than the new lease in Georgia, the Company did not enter into any new leases during the year ended December 31, 2019. The following was operating lease expense: Year Ended December 31, 2019 (in thousands) Operating lease cost $ 587 Supplemental cash flow information related to leases was the following: Year Ended December 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 535 Noncash lease expense $ 413 Right-of-assets obtained in exchange for new operating lease liabilities $ 110 Supplemental information related to leases was the following: December 31, 2019 Weighted average remaining lease term - operating leases 5.6 years Weighted average discount rate - operating leases 6.25 % The following is a maturity analysis of operating lease liabilities using undiscounted cash flows on an annual basis with renewal periods included: Operating Leases (in thousands) Year Ending December 31, 2020 $ 575 2021 591 2022 597 2023 567 2024 330 Thereafter 532 Total lease payments 3,192 Less imputed interest (516 ) Total $ 2,676 Supplemental Information for Comparative Periods As of December 31, 2018, prior to the adoption of Topic 842, future minimum payments under non-cancelable operating leases are as follows: Operating Leases (in thousands) Year Ending December 31, 2019 $ 560 2020 559 2021 550 2022 558 2023 567 Thereafter 862 Total minimum payments $ 3,656 |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 (in thousands) Cost of revenue $ 676 $ 523 Research and development 1,024 732 Selling and marketing 845 460 General and administrative 664 589 Total $ 3,209 $ 2,304 Award Activity Option Awards The following table summarizes activity for options to acquire shares of the Company’s common stock in the years ended December 31, 2019 and 2018: 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, 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 Granted 30 $ 6.98 $ 4.58 Exercised (100 ) $ 0.38 $ 5.36 Canceled (6 ) $ 0.38 $ 7.10 Balance at December 31, 2019 341 $ 1.27 6.4 $ 3,960 Exercisable as of December 31, 2019 284 $ 0.64 6.0 $ 3,482 (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 total fair value of options that vested during the years ended December 31, 2019 and 2018 was $549,000 and $645,000, respectively. As of December 31, 2019, 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 0.5 year. 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. The following table summarizes activity for RSUs relating to shares of the Company’s common stock in the years ended December 31, 2019 and 2018: Number of Shares (in thousands) Weighted-Average Grant Date Fair Value 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 Granted 982 $ 7.00 Vested and settled (434 ) $ 6.39 Forfeited (123 ) $ 5.38 Balance at December 31, 2019 1,511 $ 6.54 The RSU awards granted in the years ended December 31, 2019 and 2018 will result in aggregate equity-based compensation expense of $6.9 million and $2.4 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, 2019, the remaining unrecognized compensation expense related to all outstanding RSU awards was $8.7 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. • 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 calculates expected volatility based on historical volatility data of its stock that is publicly traded. • 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, 2019 and 2018. Year Ended December 31, 2019 2018 Expected term (in years) 6.1 6.1 Risk-free interest rates 1.8 % 2.8 % Dividend yield — — Expected volatility 73.6 % 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, 2019 | |
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, 2019 and 2018 the Company has incurred net taxable losses, and accordingly, a current provision for income taxes has only been recorded for nominal federal and state taxes. This amount differs from the amount computed by applying the U.S. federal income tax rate of 21.0% to pretax loss due primarily to the provision of a valuation allowance to the extent of the Company’s net deferred tax asset. The following table summarizes income (loss) before income taxes and equity loss in investee: Year Ended December 31, 2019 2018 (in thousands) U.S. income (loss) before income taxes and equity loss in investee $ 679 $ (4,602 ) Foreign income (loss) before income taxes and equity loss in investee (270 ) (34 ) Income (loss) before income taxes and equity loss in investee $ 409 $ (4,636 ) Income tax expense (benefit) consisted of the following: Year Ended December 31, 2019 2018 (in thousands) Current: Federal $ 5 $ — State 38 — Total Current 43 — Deferred: Federal (249 ) (987 ) State (280 ) (308 ) Change in valuation allowance 529 1,331 Total Deferred — 36 Total income tax expense (benefit) $ 43 $ 36 Reconciliation of the difference between the federal statutory income tax rate and the effective income tax rate is as follows: Year Ended December 31, 2019 2018 Tax provision at federal statutory rate 21.00 % 21.00 % State taxes -46.76 % 4.37 % Foreign tax rate differential 13.83 % — Stock based compensation -53.53 % -4.08 % Return to provision -57.11 % 2.31 % Meals and entertainment 3.87 % -0.13 % Other 0.01 % -0.22 % Change in valuation allowance 129.22 % -23.90 % Tax provision 10.53 % -0.65 % The following table summarizes the elements of the deferred tax assets (liabilities): Year Ended December 31, 2019 2018 (in thousands) Deferred tax assets Accrued vacation and other accrued expenses $ 97 $ 118 Provision for bad debts 180 136 Net operating losses 445 699 Stock based compensation 609 579 Unrealized loss on investments — 21 State income taxes 8 9 Foreign 545 343 Credits 680 261 Lease liability 643 — Gross deferred tax assets 3,207 2,166 Less: Valuation allowance (2,125 ) (1,448 ) Net deferred tax assets 1,082 718 Deferred tax liabilities Depreciation 419 644 Right of use asset 633 — Other 30 74 Total deferred tax liabilities 1,082 718 Net deferred tax assets (liabilities) $ — $ — As of December 31, 2019, the Company has estimated federal and state net operating loss (“NOL”) carryforwards of $1.6 million and $1.9 million for federal and state income tax purposes, respectively. The Company’s federal NOL of $1.6 million does not expire. The Company’s state NOLs are scheduled to expire from 2022 through 2039. Past ownership changes and other equity transactions may have triggered Section 382 and 383 provisions of the Internal Revenue Code, resulting in certain annual limitations on the utilization of existing federal and state net operating losses and credits. Such provisions may limit the potential future tax benefit to be realized by the Company from its accumulated net operating losses and credits. 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 the benefit of its deferred tax assets, primarily as a result of operating losses in recent years and, accordingly, has provided a full valuation allowance of $2.1 million and $1.4 million at December 31, 2019 and 2018, respectively. The increase in the valuation allowance of $677,000 for the year ended December 31, 2019 was primarily due to net operating losses, depreciation, research and development credits, equity-based compensation, our foreign joint venture investment, and the lease liability and related right of use asset. During 2019 and 2018 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. As of December 31, 2019, there were no pending tax audits in any jurisdiction. The tax returns are subject to statutes of limitations that vary by jurisdiction. At December 31, 2019, the Company remains subject to income tax examinations in the U.S. and various states for tax years 2016 through 2019. The Company had no accrual for interest or penalties at December 31, 2019 or 2018, and has not recognized interest or penalties during the years ended December 31, 2019 and 2018. 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. |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Loss per Share | Note 12. Loss per Share The following is a reconciliation of the basic and diluted loss per share computations: Year Ended December 31, 2019 2018 (in thousands, except per share data) Net loss $ (411 ) $ (5,607 ) Weighted-average common shares - outstanding, basic 18,709 17,978 Weighted-average common shares - outstanding, diluted 18,709 17,978 Net loss per common share, basic $ (0.02 ) $ (0.31 ) Net loss per common share, diluted $ (0.02 ) $ (0.31 ) The following securities have been excluded from the calculation of diluted loss per share for all periods presented because their effect would have been anti-dilutive: Year Ended December 31, 2019 2018 (in thousands) Options 36 413 RSUs 161 857 The anti-dilutive shares described above were calculated using the treasury stock method. During the years ended December 31, 2019 and 2018, 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, 2019 | |
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 $237,000 and $176,000 in the years ended December 31, 2019 and 2018, respectively. |
Related Party
Related Party | 12 Months Ended |
Dec. 31, 2019 | |
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 an insignificant amount and zero during the years ended December 31, 2019 and 2018, respectively, as consideration for such services. Additionally, the Company subleases certain of its headquarters facilities to the Foundation. The Company recognized $16,000 and $33,000 in the years ended December 31, 2019 and 2018, respectively, as consideration for such sublease. As of December 31, 2019 and 2018, an insignificant amount and zero, respectively, 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 $53,000 and $66,000 in the years ended December 31, 2019 and 2018, respectively, as consideration for such services. As of December 31, 2019 and 2018, $39,000 and $51,000, 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, 2019, owned 9% 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, 22,000 |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2019 | |
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 five-year period for a 30% ownership interest in FF Gene Biotech, previously three-year per original agreement and amended in April 2019. Xilong Scientific has agreed to contribute to FF Gene Biotech 102,000,000 RMB over a five-year period for a 51% ownership interest in the FF Gene Biotech, previously three-year per original agreement and amended in April 2019. FJIP has agreed to contribute to FF Gene Biotech 19,000,000 RMB over a ten-year period for a 19% ownership interest in FF Gene Biotech, previously five-year per original agreement and amended in April 2019. 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, 2019, 39,300,000 RMB (or approximately $5.6 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 $3.1 million pursuant to its contribution commitment under the JV Agreement, of which, $137,000 and $510,000 were contributed in the year ended December 31, 2019 and 2018, 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, 2019 and 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, 2019 and 2018. The Company 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 paid to the Company, on a quarterly basis, certain royalties based on the revenues of FF Gene Biotech. The license agreement expired on December 31, 2018. The Company earned an insignificant amount of royalties under the license agreement for the year ended December 31, 2018. In 2019, FF Gene Biotech provided curation services, on an arms-length basis, for the Company, the cost of such services was insignificant for the year ended December 31, 2019. 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, 2019 and 2018 consisted of the following: December 31, 2019 2018 Carrying Value Ownership Percentage Carrying Value Ownership Percentage (in thousands) (in thousands) FF Gene Biotech $ 872 30 % $ 1,512 30 % Total equity method investments $ 872 30 % $ 1,512 30 % Summary Financial Information Summary financial information for FF Gene Biotech is as follows: December 31, 2019 2018 Consolidated Balance Sheet Data: (in thousands) Current assets $ 3,007 $ 1,916 Non-current assets $ 4,457 $ 4,068 Current liabilities $ 3,748 $ 2,415 Non-current liabilities $ 889 $ — Minority interest $ (426 ) $ — Stockholders' equity $ 3,253 $ 3,569 Year Ended December 31, 2019 2018 Consolidated Statement of Operations Data: (in thousands) Net sales $ 4,055 $ 1,254 Gross profit $ 1,354 $ 67 Net loss $ (3,009 ) $ (3,101 ) Share of loss from investments accounted for using the equity method $ (777 ) $ (935 ) |
Equity Distribution Agreement
Equity Distribution Agreement | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity Distribution Agreement | Note 16. Equity Distribution Agreement In August 2019, the Company entered into an Equity Distribution Agreement with Piper Jaffray & Co., as sales agent (“Piper”), pursuant to which the Company may offer and sell, from time to time through Piper, shares of its common stock having an aggregate offering price of up to $30.0 million. Piper is eligible to receive a commission of up to 3% of gross proceeds received by the Company for sales pursuant to the Equity Distribution Agreement. During the year ended December 31, 2019, the Company sold an aggregate of 104,390 shares of its common stock pursuant to the Equity Distribution Agreement at a weighted-average selling price of $12.14 per share, which resulted in $979,000 of net proceeds to the Company. Shares sold under the Equity Distribution Agreement are offered and sold pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-233227) filed with the SEC on August 12, 2019 and declared effective on August 23, 2019, and a prospectus supplement and accompanying base prospectus filed with the Securities and Exchange Commission on August 30, 2019. |
Underwriting Agreement
Underwriting Agreement | 12 Months Ended |
Dec. 31, 2019 | |
Underwriting Agreement [Abstract] | |
Underwriting Agreement | Note 17. Underwriting Agreement On November 13, 2019 we entered into a Purchase Agreement with Piper Jaffray & Co. as representative of the several underwriters, pursuant to which we sold 2,673,750 shares of our common stock at a price of $10.51875 per share, with a public offering price of $11.25 per share. We received net proceeds of approximately $27.6 million, after deducting underwriting discounts and commissions and offering expenses paid or payable by us of approximately $2.4 million. The shares issued and sold in the underwritten offering were sold pursuant to a shelf registration statement registered under the Securities Act on a registration statement on Form S-3 (File No. 333-233227), as amended, and a prospectus supplement and accompanying base prospectus filed with the Securities and Exchange Commission on November 13, 2019. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information (Unaudited) | Note 18. 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, 2019. 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, 2019 Sept. 30, 2019 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Mar. 31, 2018 (dollars in thousands, except per share data) Statement of Operations Data: Revenue $ 8,387 $ 10,347 $ 8,424 $ 5,370 $ 5,673 $ 5,625 $ 5,400 $ 4,653 Cost of revenue 3,634 3,885 3,620 2,968 2,769 2,612 2,544 2,772 Gross profit 4,753 6,462 4,804 2,402 2,904 3,013 2,856 1,881 Operating expenses: Research and development 1,795 1,744 1,574 1,424 1,426 1,438 1,212 1,458 Selling and marketing 1,635 1,687 1,304 1,272 1,128 1,115 1,279 1,130 General and administrative 1,732 1,522 1,631 1,529 1,379 1,306 1,366 1,487 Total operating expenses 5,162 4,953 4,509 4,225 3,933 3,859 3,857 4,075 Operating income (loss) (409 ) 1,509 295 (1,823 ) (1,029 ) (846 ) (1,001 ) (2,194 ) Interest and other income, net 249 189 192 207 98 143 98 95 Income (loss) before income taxes and equity loss in investee (160 ) 1,698 487 (1,616 ) (931 ) (703 ) (903 ) (2,099 ) Provision for (benefit from) income taxes (38 ) 61 7 13 888 (318 ) (100 ) (434 ) Income (loss) before equity loss in investee (122 ) 1,637 480 (1,629 ) (1,819 ) (385 ) (803 ) (1,665 ) Equity loss in investee (174 ) (175 ) (149 ) (279 ) (234 ) (210 ) (246 ) (245 ) Net income (loss) $ (296 ) $ 1,462 $ 331 $ (1,908 ) $ (2,053 ) $ (595 ) $ (1,049 ) $ (1,910 ) Net income (loss) per common share: Basic $ (0.01 ) $ 0.08 $ 0.02 $ (0.10 ) $ (0.11 ) $ (0.03 ) $ (0.06 ) $ (0.11 ) Diluted $ (0.01 ) $ 0.08 $ 0.02 $ (0.10 ) $ (0.11 ) $ (0.03 ) $ (0.06 ) $ (0.11 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 (in thousands) Allowance for doubtful accounts at beginning of year $ 590 $ 287 Bad debt expense 189 309 Deductions (28 ) (6 ) Allowance for doubtful accounts at end of year $ 751 $ 590 |
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, 2019, 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 28% of total revenue in the year ended December 31, 2019, and one customer comprised 13% of total revenue in the year ended December 31, 2018. No customer comprised at least 10% of total accounts receivable as of December 31, 2019. One customer comprised 18% of total accounts receivable as of December 31, 2018. Revenue from the U.S. government was less than 10% of total revenue in each of the years ended December 31, 2019 and 2018. 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. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included as operating lease right-of-use (“ROU”) assets, operating lease liabilities, short-term, and operating lease liabilities, long-term, on the Company’s Consolidated Balance Sheets. ROU lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating ROU lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term, including options to extend the lease when it is reasonably certain that the Company will exercise that option. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments since its leases do not provide an implicit rate. The ROU lease asset includes any base rent payments made and excludes lease incentives and variable operating expenses. Lease expense for lease payments is recognized on a straight-line basis over the lease term. |
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 Performance Obligations Genetic Testing Services Clinical – Institutional and Patient Direct Pay The Company’s 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 the Company’s 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 the Company’s ordering facility at a point in time. Specifically, we determined the customer obtains control of the promised service upon delivery of test results. Clinical – Insurance The Company’s 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 the Company’s 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. The Company’s 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 the Company’s ordering physicians at a point in time. Specifically, we determined the customer obtains control of the promised service upon 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 the Company’s 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. The Company’s 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. 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 the Company’s revenue and cash flows are affected by economic factors. The following table summarizes revenue from contracts with customers by payor type for the years ended December 31, 2019 and 2018. Year Ended December 31, 2019 2018 (in thousands) Genetic Testing Services by payor Institutional $ 31,284 $ 19,980 Patient 539 547 Insurance 705 824 Total Revenue $ 32,528 $ 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. Contract Balances Receivables from contracts with customers - As of December 31, 2019 and 2018, receivables from contracts with customers were approximately $6.6 and $5.9 million, respectively, and are included within Trade accounts receivable on the Consolidated Balance Sheets. Contracts assets and liabilities - As of December 31, 2019 and 2018, contract assets from contracts with customers were $150,000, associated with contract execution and included in other current assets in the accompanying Consolidated Balance Sheets. Contract liabilities are recorded when the Company receives payment prior to completing its obligation to transfer goods or services to a customer. The Company had $365,000 and $166,000 of contract liabilities as of December 31, 2019 and 2018, respectively. Revenues of $59,000 and $16,000 for the years ended December 31, 2019 and 2018, respectively, related to contract liabilities at the beginning of the respective periods were recognized. Reclassifications Certain reclassifications have been made to the consolidated financial statements of the prior year in order to conform to the current year presentation. These reclassifications had no impact on shareholder’s equity or net income for the year ended December 31, 2018. In the Consolidated Balance Sheet for the year ended December 31, 2018, the financial statement line item Contract liabilities was reclassified from Accrued Liabilities. 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, 2019. 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. |
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. |
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. |
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 average rates in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in other comprehensive income (loss) as a component 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 resulting from the remeasurements are included in interest and other income, net in the accompanying Consolidated Statements of Operations. Gains and losses from these remeasurements were not significant in the year ended December 31, 2019. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is comprised of net loss and other comprehensive income or loss. Other comprehensive income or loss consists of unrealized gain or 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 income or loss to net loss during the year ended December 31, 2019. |
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. |
Recent Accounting Pronouncements | 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 the Company’s disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on the Company’s consolidated financial statements or disclosures. 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 ASU No. 2016-02 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases See Note 9, Leases, for further information. 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. 2017-08 In March 2017, the FASB issued ASU No. 2017-08, Receivables–Nonrefundable Fees and Other Costs (Subtopic 310-20). 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 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 . ASU No. 2019-12 In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) he requirement to recognize a deferred tax liability for equity method investments, the ability not to recognize a deferred tax liability for a foreign subsidiary, and the general methodology for calculating income taxes in an interim period. Other changes include requiring entities to recognize franchise tax that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, evaluate tax basis step-up in goodwill obtained in a transaction that is not a business combination, and reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date, making minor codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method, and specifying that an entity is not required to allocate the consolidated current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements. This amendment is effective for public business entities beginning after December 15, 2020 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 (in thousands) Allowance for doubtful accounts at beginning of year $ 590 $ 287 Bad debt expense 189 309 Deductions (28 ) (6 ) Allowance for doubtful accounts at end of year $ 751 $ 590 |
Accounting Standards Update 2014-09 | |
Summary of Revenue from Contracts with Customers by Payor Type | The following table summarizes revenue from contracts with customers by payor type for the years ended December 31, 2019 and 2018. Year Ended December 31, 2019 2018 (in thousands) Genetic Testing Services by payor Institutional $ 31,284 $ 19,980 Patient 539 547 Insurance 705 824 Total Revenue $ 32,528 $ 21,351 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Marketable Securities | The Company’s marketable securities consisted of the following: December 31, 2019 Amortized Cost Basis Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Marketable securities: Short-term Money market accounts $ 4,700 $ — $ — $ 4,700 Corporate debt securities 17,962 43 (2 ) 18,003 Less: Cash equivalents (6,399 ) — — (6,399 ) Total short-term marketable securities 16,263 43 (2 ) 16,304 Corporate debt securities 41,861 116 (30 ) 41,947 Total long-term marketable securities 41,861 116 (30 ) 41,947 Total marketable securities $ 58,124 $ 159 $ (32 ) $ 58,251 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 Total marketable securities $ 30,776 $ 12 $ (104 ) $ 30,684 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 Total Level 1 Level 2 Level 3 (in thousands) Marketable securities and cash equivalents: Corporate debt securities $ 59,950 $ — $ 59,950 $ — Money market accounts 4,700 4,700 — — Total marketable securities and cash equivalents $ 64,650 $ 4,700 $ 59,950 $ — December 31, 2018 Total Level 1 Level 2 Level 3 (in thousands) Marketable securities and cash equivalents: 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 and cash equivalents $ 33,376 $ 2,692 $ 30,684 $ — |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Major Classes of Fixed Assets | Major classes of fixed assets consisted of the following: December 31, Useful Lives 2019 2018 (in thousands) Computer hardware 3 Years $ 1,705 $ 1,579 Computer software 3 Years 541 495 Medical lab equipment 5 Years 10,493 8,136 Furniture and fixtures 5 Years 235 233 Leasehold improvements Shorter of lease term or estimated useful life 876 802 Assets not yet placed in service 114 1,087 Total 13,964 12,332 Less: Accumulated depreciation (7,990 ) (5,886 ) Property and equipment, net $ 5,974 $ 6,446 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following: December 31, 2019 2018 (in thousands) Reagents $ 277 $ 314 Contract assets 150 150 Prepaid expenses 1,288 556 Prepaid income taxes 46 1,251 Marketable securities interest receivable 478 220 Other receivable 16 70 Total $ 2,255 $ 2,561 |
Reporting Segment and Geograp_2
Reporting Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Region | Revenue by region for the years ended December 31, 2019 and 2018 were as follows: Year Ended December 31, 2019 2018 (in thousands) Revenue: United States $ 25,014 $ 12,579 Foreign: Canada 2,245 3,984 Other Countries 5,269 4,788 Total $ 32,528 $ 21,351 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Expense | The following was operating lease expense: Year Ended December 31, 2019 (in thousands) Operating lease cost $ 587 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was the following: Year Ended December 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 535 Noncash lease expense $ 413 Right-of-assets obtained in exchange for new operating lease liabilities $ 110 |
Schedule Of Supplemental Information Related To Leases | Supplemental information related to leases was the following: December 31, 2019 Weighted average remaining lease term - operating leases 5.6 years Weighted average discount rate - operating leases 6.25 % |
Schedule of Maturity Analysis of Operating Lease Liabilities using Undiscounted Cash Flows on an Annual Basis | The following is a maturity analysis of operating lease liabilities using undiscounted cash flows on an annual basis with renewal periods included: Operating Leases (in thousands) Year Ending December 31, 2020 $ 575 2021 591 2022 597 2023 567 2024 330 Thereafter 532 Total lease payments 3,192 Less imputed interest (516 ) Total $ 2,676 |
Schedule of Future Minimum Payments for Noncancelable Operating Leases | As of December 31, 2018, prior to the adoption of Topic 842, future minimum payments under non-cancelable operating leases are as follows: Operating Leases (in thousands) Year Ending December 31, 2019 $ 560 2020 559 2021 550 2022 558 2023 567 Thereafter 862 Total minimum payments $ 3,656 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 (in thousands) Cost of revenue $ 676 $ 523 Research and development 1,024 732 Selling and marketing 845 460 General and administrative 664 589 Total $ 3,209 $ 2,304 |
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, 2019 and 2018: 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, 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 Granted 30 $ 6.98 $ 4.58 Exercised (100 ) $ 0.38 $ 5.36 Canceled (6 ) $ 0.38 $ 7.10 Balance at December 31, 2019 341 $ 1.27 6.4 $ 3,960 Exercisable as of December 31, 2019 284 $ 0.64 6.0 $ 3,482 (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, 2019 and 2018: Number of Shares (in thousands) Weighted-Average Grant Date Fair Value 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 Granted 982 $ 7.00 Vested and settled (434 ) $ 6.39 Forfeited (123 ) $ 5.38 Balance at December 31, 2019 1,511 $ 6.54 |
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, 2019 and 2018. Year Ended December 31, 2019 2018 Expected term (in years) 6.1 6.1 Risk-free interest rates 1.8 % 2.8 % Dividend yield — — Expected volatility 73.6 % 87.4 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Income (Loss) Before Income Taxes and Equity Loss in Investee | The following table summarizes income (loss) before income taxes and equity loss in investee: Year Ended December 31, 2019 2018 (in thousands) U.S. income (loss) before income taxes and equity loss in investee $ 679 $ (4,602 ) Foreign income (loss) before income taxes and equity loss in investee (270 ) (34 ) Income (loss) before income taxes and equity loss in investee $ 409 $ (4,636 ) |
Income Tax Expense (Benefit) | Income tax expense (benefit) consisted of the following: Year Ended December 31, 2019 2018 (in thousands) Current: Federal $ 5 $ — State 38 — Total Current 43 — Deferred: Federal (249 ) (987 ) State (280 ) (308 ) Change in valuation allowance 529 1,331 Total Deferred — 36 Total income tax expense (benefit) $ 43 $ 36 |
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, 2019 2018 Tax provision at federal statutory rate 21.00 % 21.00 % State taxes -46.76 % 4.37 % Foreign tax rate differential 13.83 % — Stock based compensation -53.53 % -4.08 % Return to provision -57.11 % 2.31 % Meals and entertainment 3.87 % -0.13 % Other 0.01 % -0.22 % Change in valuation allowance 129.22 % -23.90 % Tax provision 10.53 % -0.65 % |
Summary of Elements of Deferred Tax Assets (Liabilities) | The following table summarizes the elements of the deferred tax assets (liabilities): Year Ended December 31, 2019 2018 (in thousands) Deferred tax assets Accrued vacation and other accrued expenses $ 97 $ 118 Provision for bad debts 180 136 Net operating losses 445 699 Stock based compensation 609 579 Unrealized loss on investments — 21 State income taxes 8 9 Foreign 545 343 Credits 680 261 Lease liability 643 — Gross deferred tax assets 3,207 2,166 Less: Valuation allowance (2,125 ) (1,448 ) Net deferred tax assets 1,082 718 Deferred tax liabilities Depreciation 419 644 Right of use asset 633 — Other 30 74 Total deferred tax liabilities 1,082 718 Net deferred tax assets (liabilities) $ — $ — |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Loss Per Share Computations | The following is a reconciliation of the basic and diluted loss per share computations: Year Ended December 31, 2019 2018 (in thousands, except per share data) Net loss $ (411 ) $ (5,607 ) Weighted-average common shares - outstanding, basic 18,709 17,978 Weighted-average common shares - outstanding, diluted 18,709 17,978 Net loss per common share, basic $ (0.02 ) $ (0.31 ) Net loss per common share, diluted $ (0.02 ) $ (0.31 ) |
Anti-dilutive Securities Excluded from Calculation of Diluted Loss Per Share | The following securities have been excluded from the calculation of diluted loss per share for all periods presented because their effect would have been anti-dilutive: Year Ended December 31, 2019 2018 (in thousands) Options 36 413 RSUs 161 857 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Equity method investments as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Carrying Value Ownership Percentage Carrying Value Ownership Percentage (in thousands) (in thousands) FF Gene Biotech $ 872 30 % $ 1,512 30 % Total equity method investments $ 872 30 % $ 1,512 30 % |
Summary of Financial Information for Equity Method Investees | Summary financial information for FF Gene Biotech is as follows: December 31, 2019 2018 Consolidated Balance Sheet Data: (in thousands) Current assets $ 3,007 $ 1,916 Non-current assets $ 4,457 $ 4,068 Current liabilities $ 3,748 $ 2,415 Non-current liabilities $ 889 $ — Minority interest $ (426 ) $ — Stockholders' equity $ 3,253 $ 3,569 Year Ended December 31, 2019 2018 Consolidated Statement of Operations Data: (in thousands) Net sales $ 4,055 $ 1,254 Gross profit $ 1,354 $ 67 Net loss $ (3,009 ) $ (3,101 ) Share of loss from investments accounted for using the equity method $ (777 ) $ (935 ) |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019. Three Months Ended Dec. 31, 2019 Sept. 30, 2019 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Mar. 31, 2018 (dollars in thousands, except per share data) Statement of Operations Data: Revenue $ 8,387 $ 10,347 $ 8,424 $ 5,370 $ 5,673 $ 5,625 $ 5,400 $ 4,653 Cost of revenue 3,634 3,885 3,620 2,968 2,769 2,612 2,544 2,772 Gross profit 4,753 6,462 4,804 2,402 2,904 3,013 2,856 1,881 Operating expenses: Research and development 1,795 1,744 1,574 1,424 1,426 1,438 1,212 1,458 Selling and marketing 1,635 1,687 1,304 1,272 1,128 1,115 1,279 1,130 General and administrative 1,732 1,522 1,631 1,529 1,379 1,306 1,366 1,487 Total operating expenses 5,162 4,953 4,509 4,225 3,933 3,859 3,857 4,075 Operating income (loss) (409 ) 1,509 295 (1,823 ) (1,029 ) (846 ) (1,001 ) (2,194 ) Interest and other income, net 249 189 192 207 98 143 98 95 Income (loss) before income taxes and equity loss in investee (160 ) 1,698 487 (1,616 ) (931 ) (703 ) (903 ) (2,099 ) Provision for (benefit from) income taxes (38 ) 61 7 13 888 (318 ) (100 ) (434 ) Income (loss) before equity loss in investee (122 ) 1,637 480 (1,629 ) (1,819 ) (385 ) (803 ) (1,665 ) Equity loss in investee (174 ) (175 ) (149 ) (279 ) (234 ) (210 ) (246 ) (245 ) Net income (loss) $ (296 ) $ 1,462 $ 331 $ (1,908 ) $ (2,053 ) $ (595 ) $ (1,049 ) $ (1,910 ) Net income (loss) per common share: Basic $ (0.01 ) $ 0.08 $ 0.02 $ (0.10 ) $ (0.11 ) $ (0.03 ) $ (0.06 ) $ (0.11 ) Diluted $ (0.01 ) $ 0.08 $ 0.02 $ (0.10 ) $ (0.11 ) $ (0.03 ) $ (0.06 ) $ (0.11 ) |
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, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Allowance for doubtful accounts at beginning of year | $ 590 | $ 287 |
Bad debt expense | 189 | 309 |
Deductions | (28) | (6) |
Allowance for doubtful accounts at end of year | $ 751 | $ 590 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2019USD ($)CustomerSegment | Dec. 31, 2018USD ($)Customer | 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 | |||
Receivables from contract with customers | $ 6,555,000 | $ 5,948,000 | ||
Contract with customer liability, revenue recognized | $ 59,000 | 16,000 | ||
Practical expedient not to disclose amount of transaction price allocated to unsatisfied performance obligations | true | |||
Operating lease liabilities | $ 2,676,000 | $ 3,000,000 | ||
Right-of-use assets | 2,633,000 | $ 3,000,000 | ||
Other Current Assets | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Contract assets from contract with customers | 150,000 | 150,000 | ||
Accrued Liabilities | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Contract liabilities from contract with customers | $ 365,000 | $ 166,000 | ||
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 | 1 | ||
Customer Concentration Risk | Revenue | Customer One | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 28.00% | 13.00% | ||
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% | |||
Customer Concentration Risk | Accounts Receivable | Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customers | Customer | 0 | |||
Concentration risk, percentage | 10.00% |
Summary of Significant Accoun_6
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||||||||
Revenue from contracts with customers by payor type | $ 8,387 | $ 10,347 | $ 8,424 | $ 5,370 | $ 5,673 | $ 5,625 | $ 5,400 | $ 4,653 | $ 32,528 | $ 21,351 |
Accounting Standards Update 2014-09 | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Type of Revenue [Extensible List] | flgt:GeneticTestingServicesMember | flgt:GeneticTestingServicesMember | ||||||||
Revenue from contracts with customers by payor type | $ 32,528 | $ 21,351 | ||||||||
Accounting Standards Update 2014-09 | Clinical Institutional Contracts | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Revenue from contracts with customers by payor type | 31,284 | 19,980 | ||||||||
Accounting Standards Update 2014-09 | Clinical Patient Contracts | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Revenue from contracts with customers by payor type | 539 | 547 | ||||||||
Accounting Standards Update 2014-09 | Clinical Insurance Contracts | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Revenue from contracts with customers by payor type | $ 705 | $ 824 |
Marketable Securities - Summary
Marketable Securities - Summary of Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Marketable securities, Amortized Cost Basis | $ 58,124 | $ 30,776 |
Marketable securities, Unrealized Gains | 159 | 12 |
Marketable securities, Unrealized Losses | (32) | (104) |
Marketable securities, Aggregate Fair Value | 58,251 | 30,684 |
Cash and cash equivalents | 11,965 | 6,736 |
Less: Cash equivalents | (6,399) | (2,692) |
Short-Term Marketable Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Marketable securities, Amortized Cost Basis | 16,263 | 24,393 |
Marketable securities, Unrealized Gains | 43 | 1 |
Marketable securities, Unrealized Losses | (2) | (96) |
Marketable securities, Aggregate Fair Value | 16,304 | 24,298 |
Short-Term Marketable Securities | Money Market Accounts | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cash and cash equivalents | 4,700 | 2,692 |
Cash and cash equivalents fair value disclosure | 4,700 | 2,692 |
Short-Term Marketable Securities | Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Marketable securities, Amortized Cost Basis | 17,962 | 22,613 |
Marketable securities, Unrealized Gains | 43 | 1 |
Marketable securities, Unrealized Losses | (2) | (96) |
Marketable securities, Aggregate Fair Value | 18,003 | 22,518 |
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 | 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 | 41,861 | 6,383 |
Marketable securities, Unrealized Gains | 116 | 11 |
Marketable securities, Unrealized Losses | (30) | (8) |
Marketable securities, Aggregate Fair Value | 41,947 | 6,386 |
Long-Term Marketable Securities | Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Marketable securities, Amortized Cost Basis | 41,861 | 6,383 |
Marketable securities, Unrealized Gains | 116 | 11 |
Marketable securities, Unrealized Losses | (30) | (8) |
Marketable securities, Aggregate Fair Value | $ 41,947 | $ 6,386 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | ||
Gross unrealized loss | $ 32,000 | $ 104,000 |
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, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 58,251 | $ 30,684 |
Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities and cash equivalents | 64,650 | 33,376 |
Fair Value Measurements Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities and cash equivalents | 4,700 | 2,692 |
Fair Value Measurements Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities and cash equivalents | 59,950 | 30,684 |
Fair Value Measurements Recurring | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total marketable securities and cash equivalents | 0 | 0 |
Fair Value Measurements Recurring | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 59,950 | 28,904 |
Fair Value Measurements Recurring | Corporate Debt Securities | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
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] | ||
Marketable securities | 59,950 | 28,904 |
Fair Value Measurements Recurring | Corporate Debt Securities | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 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 | 4,700 | 2,692 |
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 | 4,700 | 2,692 |
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 | United States Treasury | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
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] | ||
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] | ||
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] | ||
Marketable securities | 0 | |
Fair Value Measurements Recurring | U.S. Government Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
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] | ||
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] | ||
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] | ||
Marketable securities | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 0 | |
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, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 13,964 | $ 12,332 |
Less: Accumulated depreciation | (7,990) | (5,886) |
Fixed assets, net | 5,974 | 6,446 |
Computer Hardware | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 1,705 | 1,579 |
Useful life in years | 3 years | |
Computer Software | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 541 | 495 |
Useful life in years | 3 years | |
Medical Lab Equipment | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 10,493 | 8,136 |
Useful life in years | 5 years | |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 235 | 233 |
Useful life in years | 5 years | |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 876 | 802 |
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 | $ 114 | $ 1,087 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense on fixed assets | $ 2,107 | $ 2,163 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Reagents | $ 277 | $ 314 |
Contract assets | 150 | 150 |
Prepaid expenses | 1,288 | 556 |
Prepaid income taxes | 46 | 1,251 |
Marketable securities interest receivable | 478 | 220 |
Other receivable | 16 | 70 |
Total | $ 2,255 | $ 2,561 |
Reporting Segment and Geograp_3
Reporting Segment and Geographical Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019Segment | |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||||||||
Revenue | $ 8,387 | $ 10,347 | $ 8,424 | $ 5,370 | $ 5,673 | $ 5,625 | $ 5,400 | $ 4,653 | $ 32,528 | $ 21,351 |
United States | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenue | 25,014 | 12,579 | ||||||||
Canada | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenue | 2,245 | 3,984 | ||||||||
Other Countries | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenue | $ 5,269 | $ 4,788 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - Reagents $ in Millions | Dec. 31, 2019USD ($) |
Commitments And Contingencies [Line Items] | |
Non-cancelable purchase obligations | $ 2.9 |
Non-cancelable purchase obligations, payable within twelve months | 1.5 |
Non-cancelable purchase obligations, payable within next twenty-four months | $ 1.4 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | Sep. 01, 2019 | Aug. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 |
Lessee Lease Description [Line Items] | |||||
Operating leases term of expiration | 2023-08 | ||||
Operating leases, renewal term | 3 years | ||||
Rent expense, including sublease | $ 548,000 | $ 418,000 | |||
Long-term ROU assets | 2,633,000 | $ 3,000,000 | |||
Short-term lease liabilities | 420,000 | 384,000 | |||
Long-term lease liabilities | 2,256,000 | $ 2,600,000 | |||
Accounting Standards Update 2016-02 | |||||
Lessee Lease Description [Line Items] | |||||
Impact to retained earnings upon adoption of new accounting standard | $ 0 | ||||
Georgia | |||||
Lessee Lease Description [Line Items] | |||||
Long-term ROU assets | $ 110,000 | ||||
Short-term lease liabilities | 23,000 | ||||
Long-term lease liabilities | $ 87,000 | ||||
Lease termination date | August 31, 2019 | ||||
New lease commencement date | Sep. 1, 2019 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 587 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities | $ 535 |
Noncash lease expense | 413 |
Right-of-assets obtained in exchange for new operating lease liabilities | $ 110 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Information Related to Leases (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term - operating leases | 5 years 7 months 6 days |
Weighted average discount rate - operating leases | 6.25% |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Operating Lease Liabilities using Undiscounted Cash Flows on an Annual Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2020 | $ 575 | |
2021 | 591 | |
2022 | 597 | |
2023 | 567 | |
2024 | 330 | |
Thereafter | 532 | |
Total lease payments | 3,192 | |
Less imputed interest | (516) | |
Total | $ 2,676 | $ 3,000 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments for Noncancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 560 |
2020 | 559 |
2021 | 550 |
2022 | 558 |
2023 | 567 |
Thereafter | 862 |
Total minimum payments | $ 3,656 |
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, 2019 | Dec. 31, 2018 | |
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Equity-based compensation expense | $ 3,209 | $ 2,304 |
Cost of Revenue | ||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Equity-based compensation expense | 676 | 523 |
Research and Development | ||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Equity-based compensation expense | 1,024 | 732 |
Selling and Marketing | ||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Equity-based compensation expense | 845 | 460 |
General and Administrative | ||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Equity-based compensation expense | $ 664 | $ 589 |
Equity-Based Compensation - S_2
Equity-Based Compensation - Summary of Activity for Options to Acquire Common Shares (Details) - Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Units/Shares Subject to Options, Beginning Balance | 417 | 465 | |
Number of Units/Shares Subject to Options, Granted | 30 | 10 | |
Number of Units/Shares Subject to Options, Exercised | (100) | (40) | |
Number of Units/Shares Subject to Options, Canceled | (6) | (18) | |
Number of Units/Shares Subject to Options, Ending Balance | 341 | 417 | 465 |
Number of Units/Shares Subject to Options, Exercisable | 284 | ||
Weighted-Average Exercise Price Per Shares, Beginning Balance | $ 0.64 | $ 0.84 | |
Weighted-Average Exercise Price Per Shares, Granted | 6.98 | 3.93 | |
Weighted-Average Exercise Price Per Shares, Exercised | 0.38 | 0.38 | |
Weighted-Average Exercise Price Per Shares, Canceled | 0.38 | 8.19 | |
Weighted-Average Exercise Price Per Shares, Ending Balance | 1.27 | 0.64 | $ 0.84 |
Weighted-Average Exercise Price Per Shares, Exercisable | 0.64 | ||
Weighted-Average Grant Date Fair Value, Granted | 4.58 | 2.92 | |
Weighted-Average Grant Date Fair Value, Exercised | 5.36 | 5.80 | |
Weighted-Average Grant Date Fair Value, Canceled | $ 7.10 | $ 8.47 | |
Weighted-Average Remaining Contractual Life (in years) | 6 years 4 months 24 days | 7 years 1 month 6 days | 8 years |
Weighted-Average Remaining Contractual Life (in years), Exercisable | 6 years | ||
Aggregate Intrinsic Value, Balance | $ 3,960 | $ 1,116 | $ 1,785 |
Aggregate Intrinsic Value, Exercisable | $ 3,482 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total fair value of options vested | $ 549,000 | $ 645,000 |
Unrecognized compensation expense | $ 146,000 | |
Expected to be recognized, weighted-average period | 6 months | |
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 | 2 years 10 months 24 days |
Total compensation cost not yet recognized on grant date | $ 6,900,000 | $ 2,400,000 |
Compensation cost not yet recognized on grant date, period for recognition | 4 years | |
Unrecognized compensation expense | $ 8,700,000 | $ 5,600,000 |
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) - 2016 Omnibus Incentive Plan - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | ||
Number of Shares, Beginning Balance | 1,086 | 937 |
Number of Shares, Granted | 982 | 554 |
Number of Shares, Vested and settled | (434) | (285) |
Number of Shares, Forfeited | (123) | (120) |
Number of Shares, Ending Balance | 1,511 | 1,086 |
Weighted-Average Grant-Date Fair Value, Balance | $ 5.94 | $ 7.39 |
Weighted-Average Grant-Date Fair Value, Granted | 7 | 4.39 |
Weighted-Average Grant-Date Fair Value, Vested and settled | 6.39 | 7.78 |
Weighted-Average Grant-Date Fair Value, Forfeited | 5.38 | 5.77 |
Weighted-Average Grant-Date Fair Value, Balance | $ 6.54 | $ 5.94 |
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, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Risk-free interest rates | 1.80% | 2.80% |
Expected volatility | 73.60% | 87.40% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | ||
Federal statutory income tax rate | 21.00% | 21.00% |
Valuation allowance | $ 2,125,000 | $ 1,448,000 |
Increase in valuation allowance | (529,000) | (1,331,000) |
Accrual for interests or penalties | 0 | 0 |
Interest or penalties recognized | $ 0 | $ 0 |
Earliest Tax Year | ||
Income Taxes [Line Items] | ||
Years subject to income tax examination | 2016 | |
Latest Tax Year | ||
Income Taxes [Line Items] | ||
Years subject to income tax examination | 2019 | |
Research and Development Credits and Depreciation Adjustments | ||
Income Taxes [Line Items] | ||
Increase in valuation allowance | $ 677,000 | |
Federal | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 1,600,000 | |
Net operating loss not subject to expiration | 1,600,000 | |
State | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 1,900,000 | |
Net operating loss carryforwards expiration beginning year | 2022 | |
Net operating loss carryforwards expiration ending year | 2039 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income (Loss) Before Income Taxes and Equity Loss in Investee (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||||||||
U.S. income (loss) before income taxes and equity loss in investee | $ 679 | $ (4,602) | ||||||||
Foreign income (loss) before income taxes and equity loss in investee | (270) | (34) | ||||||||
Income (loss) before income taxes and equity loss in investee | $ (160) | $ 1,698 | $ 487 | $ (1,616) | $ (931) | $ (703) | $ (903) | $ (2,099) | $ 409 | $ (4,636) |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | ||||||||||
Federal | $ 5 | |||||||||
State | 38 | |||||||||
Total Current | 43 | |||||||||
Deferred: | ||||||||||
Federal | (249) | $ (987) | ||||||||
State | (280) | (308) | ||||||||
Change in valuation allowance | 529 | 1,331 | ||||||||
Total Deferred | 36 | |||||||||
Total income tax expense (benefit) | $ (38) | $ 61 | $ 7 | $ 13 | $ 888 | $ (318) | $ (100) | $ (434) | $ 43 | $ 36 |
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, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Tax provision at federal statutory rate | 21.00% | 21.00% |
State taxes | (46.76%) | 4.37% |
Foreign tax rate differential | 13.83% | |
Stock based compensation | (53.53%) | (4.08%) |
Return to provision | (57.11%) | 2.31% |
Meals and entertainment | 3.87% | (0.13%) |
Other | 0.01% | (0.22%) |
Change in valuation allowance | 129.22% | (23.90%) |
Tax provision | 10.53% | (0.65%) |
Income Taxes - Summary of Eleme
Income Taxes - Summary of Elements of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Accrued vacation and other accrued expenses | $ 97 | $ 118 |
Provision for bad debts | 180 | 136 |
Net operating losses | 445 | 699 |
Stock based compensation | 609 | 579 |
Unrealized loss on investments | 21 | |
State income taxes | 8 | 9 |
Foreign | 545 | 343 |
Credits | 680 | 261 |
Lease liability | 643 | |
Gross deferred tax assets | 3,207 | 2,166 |
Less: Valuation allowance | (2,125) | (1,448) |
Net deferred tax assets | 1,082 | 718 |
Deferred tax liabilities | ||
Depreciation | 419 | 644 |
Right of use asset | 633 | |
Other | 30 | 74 |
Total deferred tax liabilities | $ 1,082 | $ 718 |
Loss Per Share - Reconciliation
Loss Per Share - Reconciliation of Basic and Diluted Loss Per Share Computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||||||||||
Net loss | $ (296) | $ 1,462 | $ 331 | $ (1,908) | $ (2,053) | $ (595) | $ (1,049) | $ (1,910) | $ (411) | $ (5,607) |
Weighted-average common shares - outstanding, basic | 18,709 | 17,978 | ||||||||
Weighted-average common shares - outstanding, diluted | 18,709 | 17,978 | ||||||||
Net loss per common share, basic | $ (0.01) | $ 0.08 | $ 0.02 | $ (0.10) | $ (0.11) | $ (0.03) | $ (0.06) | $ (0.11) | $ (0.02) | $ (0.31) |
Net loss per common share, diluted | $ (0.01) | $ 0.08 | $ 0.02 | $ (0.10) | $ (0.11) | $ (0.03) | $ (0.06) | $ (0.11) | $ (0.02) | $ (0.31) |
Loss Per Share - Anti-dilutive
Loss Per Share - Anti-dilutive Securities Excluded from Calculation of Diluted Loss Per Share (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of diluted income (loss) per share | 36 | 413 |
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 | 161 | 857 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Company matching contributions to the 401(k) plan | $ 237,000 | $ 176,000 |
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, 2019 | Dec. 31, 2018 | 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 | 9.00% | ||
Foundation | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 16,000 | $ 33,000 | |
Due from related parties | 0 | ||
Foundation | Research Testing Services | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 0 | ||
University | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 53,000 | 66,000 | |
Due from related parties | $ 39,000 | 51,000 | |
FF Gene Biotech | FJIP | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 19.00% | ||
FF Gene Biotech | Dr. Han Lin Gao | FJIP | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 25.00% | ||
Fulgent Pharma | |||
Related Party Transaction [Line Items] | |||
Due from related parties | $ 26,000 | $ 22,000 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019CNY (¥) | |
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 | 5 years | |||
Previous 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 | $ 5,600,000 | ¥ 39,300,000 | ||
Contributions made to joint venture | $ | 137,000 | $ 510,000 | ||
FF Gene Biotech | Equipment | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Contributions made to joint venture | $ | $ 3,100,000 | |||
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 | 5 years | |||
Previous 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 | 10 years | |||
Previous 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, 2019 | Dec. 31, 2018 | Apr. 30, 2017 |
Schedule Of Equity Method Investments [Line Items] | |||
Carrying Value | $ 872 | $ 1,512 | |
Ownership percentage | 30.00% | 30.00% | |
FF Gene Biotech | |||
Schedule Of Equity Method Investments [Line Items] | |||
Carrying Value | $ 872 | $ 1,512 | |
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, 2019 | Dec. 31, 2018 |
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | $ 3,007 | $ 1,916 |
Non-current assets | 4,457 | 4,068 |
Current liabilities | 3,748 | 2,415 |
Non-current liabilities | 889 | |
Minority interest | (426) | |
Stockholders' equity | $ 3,253 | $ 3,569 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Equity Method Investments [Line Items] | ||||||||||
Equity loss in investee | $ (174) | $ (175) | $ (149) | $ (279) | $ (234) | $ (210) | $ (246) | $ (245) | $ (777) | $ (935) |
FF Gene Biotech | ||||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||||
Net sales | 4,055 | 1,254 | ||||||||
Gross profit | 1,354 | 67 | ||||||||
Net loss | (3,009) | (3,101) | ||||||||
Equity loss in investee | $ (777) | $ (935) |
Equity Distribution Agreement -
Equity Distribution Agreement - Additional Information (Detail) - Equity Distribution Agreement - Common Stock - USD ($) | 1 Months Ended | 12 Months Ended |
Aug. 31, 2019 | Dec. 31, 2019 | |
Equity Distribution Agreement [Line Items] | ||
Number of shares sold | 104,390 | |
Sale of stock, weighted average selling price per share | $ 12.14 | |
Net proceeds from sale of stock | $ 979,000 | |
Maximum | ||
Equity Distribution Agreement [Line Items] | ||
Aggregate offering price | $ 30,000,000 | |
Percentage of commission to be paid from gross proceeds | 3.00% |
Underwriting Agreement - Additi
Underwriting Agreement - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 13, 2019 | Dec. 31, 2019 |
Underwriting Agreement [Line Items] | ||
Net proceeds from sale of stock | $ 28,758 | |
Purchase Agreement | Common Stock | ||
Underwriting Agreement [Line Items] | ||
Number of shares sold | 2,673,750 | |
Selling price per share | $ 10.51875 | |
Public offering price per share | $ 11.25 | |
Net proceeds from sale of stock | $ 27,600 | |
Payments of underwriting discounts and commissions and offering expenses | $ 2,400 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Operations Data: | ||||||||||
Revenue | $ 8,387 | $ 10,347 | $ 8,424 | $ 5,370 | $ 5,673 | $ 5,625 | $ 5,400 | $ 4,653 | $ 32,528 | $ 21,351 |
Cost of revenue | 3,634 | 3,885 | 3,620 | 2,968 | 2,769 | 2,612 | 2,544 | 2,772 | 14,107 | 10,697 |
Gross profit | 4,753 | 6,462 | 4,804 | 2,402 | 2,904 | 3,013 | 2,856 | 1,881 | 18,421 | 10,654 |
Operating expenses: | ||||||||||
Research and development | 1,795 | 1,744 | 1,574 | 1,424 | 1,426 | 1,438 | 1,212 | 1,458 | 6,537 | 5,534 |
Selling and marketing | 1,635 | 1,687 | 1,304 | 1,272 | 1,128 | 1,115 | 1,279 | 1,130 | 5,898 | 4,652 |
General and administrative | 1,732 | 1,522 | 1,631 | 1,529 | 1,379 | 1,306 | 1,366 | 1,487 | 6,414 | 5,538 |
Total operating expenses | 5,162 | 4,953 | 4,509 | 4,225 | 3,933 | 3,859 | 3,857 | 4,075 | 18,849 | 15,724 |
Operating income (loss) | (409) | 1,509 | 295 | (1,823) | (1,029) | (846) | (1,001) | (2,194) | (428) | (5,070) |
Interest and other income, net | 249 | 189 | 192 | 207 | 98 | 143 | 98 | 95 | 837 | 434 |
Income (loss) before income taxes and equity loss in investee | (160) | 1,698 | 487 | (1,616) | (931) | (703) | (903) | (2,099) | 409 | (4,636) |
Provision for (benefit from) income taxes | (38) | 61 | 7 | 13 | 888 | (318) | (100) | (434) | 43 | 36 |
Income (loss) before equity loss in investee | (122) | 1,637 | 480 | (1,629) | (1,819) | (385) | (803) | (1,665) | 366 | (4,672) |
Equity loss in investee | (174) | (175) | (149) | (279) | (234) | (210) | (246) | (245) | (777) | (935) |
Net income (loss) | $ (296) | $ 1,462 | $ 331 | $ (1,908) | $ (2,053) | $ (595) | $ (1,049) | $ (1,910) | $ (411) | $ (5,607) |
Net income (loss) per common share: | ||||||||||
Basic | $ (0.01) | $ 0.08 | $ 0.02 | $ (0.10) | $ (0.11) | $ (0.03) | $ (0.06) | $ (0.11) | $ (0.02) | $ (0.31) |
Diluted | $ (0.01) | $ 0.08 | $ 0.02 | $ (0.10) | $ (0.11) | $ (0.03) | $ (0.06) | $ (0.11) | $ (0.02) | $ (0.31) |