Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2013 |
Accounting Policies [Abstract] | ' |
Principles of Consolidation and Presentation | ' |
Principles of Consolidation and Presentation |
The condensed consolidated financial statements include the accounts of Immunomedics and its subsidiaries. Noncontrolling interests in consolidated subsidiaries in the condensed consolidated balance sheets represent minority stockholders’ proportionate share of the equity (deficit) in such subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Revenue Recognition | ' |
Revenue Recognition |
The Company has accounted for revenue arrangements that include multiple deliverables as a separate unit of accounting if: a) the delivered item has value to the customer on a standalone basis, and b) the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered items is considered probable and substantially in the control of the vendor, in accordance with the accounting standard for multiple-element arrangements. If these criteria are not met, the revenue elements must be considered a single unit of accounting for purposes of revenue recognition. The Company allocates revenue consideration, excluding contingent consideration, based on the relative selling prices of the separate units of accounting contained within an arrangement containing multiple deliverables. Relative selling prices are determined using vendor specific objective evidence, if it exists; otherwise third-party evidence or the Company’s best estimate of selling price is used for each deliverable. |
Payments received under contracts to fund certain research activities are recognized as revenue in the period in which the research activities are performed. Payments received in advance that are related to future performance are deferred and recognized as revenue when the research projects are performed or the product is delivered. Upfront nonrefundable fees associated with license and development agreements where the Company has continuing obligations in the agreement are recorded as deferred revenue and recognized over the estimated service period. If the estimated service period is subsequently modified, the period over which the upfront fee is recognized is modified accordingly on a prospective basis. |
In order to determine the revenue recognition for contingent milestones, the Company evaluates the contingent milestones using the criteria as provided by the Financial Accounting Standards Boards (“FASB”) guidance on the milestone method of revenue recognition at the inception of a collaboration agreement. The criteria requires that (i) the Company determines if the milestone is commensurate with either its performance to achieve the milestone or the enhancement of value resulting from the Company’s activities to achieve the milestone, (ii) the milestone be related to past performance, and (iii) the milestone be reasonable relative to all deliverable and payment terms of the collaboration arrangement. If these criteria are met, then the contingent milestones can be considered as substantive milestones and will be recognized as revenue in the period that the milestone is achieved. Royalties are recognized as earned in accordance with the terms of various research and collaboration agreements. |
Revenue from the sale of diagnostic products is recorded when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed or determinable and collectability is reasonably assured. Allowances, if any, are established for uncollectible amounts, estimated product returns and discounts. Since allowances are recorded based on management’s estimates, actual amounts may be different in the future. |
Research and Development Costs | ' |
Research and Development Costs |
Research and development costs are expensed as incurred. Costs incurred for clinical trials for patients and investigators are expensed as services are performed in accordance with the agreements in place with the institutions. |
Manufacturing Costs | ' |
Manufacturing Costs |
Manufacturing costs incurred in relation to the development of materials produced in order to fulfill contractual obligations are capitalized and are recorded in other current assets until the product is delivered in accordance with the terms of the agreement. These manufacturing costs are classified as cost of license fee and other revenues when the research contractual obligations have been completed. |
Financial Instruments | ' |
Financial Instruments |
The carrying amounts of cash and cash equivalents, other current assets and current liabilities approximate fair value due to the short-term maturity of these instruments. The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Investments in marketable securities are available-for-sale to fund operations. The portfolio at September 30, 2013 primarily consists of corporate debt securities and municipal bonds. |
Estimated Fair Value of Financial Instruments | ' |
Estimated Fair Value of Financial Instruments |
The Company has categorized its financial assets, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. The Company does not have any financial liabilities that are required to be measured at fair value on a recurring basis. If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. |
Financial assets recorded on the condensed consolidated balance sheets as of September 30, 2013 and June 30, 2013 are categorized based on the inputs to the valuation techniques as follows (in thousands): |
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| • | | Level 1 – Financial assets whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market which the company has the ability to access at the measurement date (examples include active exchange-traded equity securities and most U.S. Government and agency securities). | | | | | | | | | | | | | |
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| • | | Level 2 – Financial assets whose value are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. | | | | | | | | | | | | | |
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| • | | Level 3 – Financial assets whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset. | | | | | | | | | | | | | |
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| | ($ in thousands) | |
September 30, 2013 | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Money Market Funds | | $ | 11,144 | | | $ | — | | | $ | — | | | $ | 11,144 | |
Marketable Securities | | | 20,083 | | | | — | | | | — | | | | 20,083 | |
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Total | | $ | 31,227 | | | $ | — | | | $ | — | | | $ | 31,227 | |
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June 30, 2013 | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Money Market Funds | | $ | 38,327 | | | $ | — | | | $ | — | | | $ | 38,327 | |
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Total | | $ | 38,327 | | | $ | — | | | $ | — | | | $ | 38,327 | |
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The money market funds noted above are included in cash and cash equivalents. |
Reimbursement of Research & Development Costs | ' |
Reimbursement of Research & Development Costs |
Research and development costs that are reimbursable under collaboration agreements are included as a reduction of research and development expenses. The Company records these reimbursements as a reduction of research and development expenses as the Company’s partner in the collaboration agreement has the financial risks and responsibility for conducting these research and development activities. |
Inventory | ' |
Inventory |
Inventory, which consists of work-in-process and the finished product of LeukoScan, is stated at the lower of cost (which approximates first-in, first-out) or market, and includes materials, labor and manufacturing overhead. |
Inventory consisted of the following (in thousands): |
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| | September 30, | | | June 30, | | | | | | | | | |
2013 | 2013 | | | | | | | | |
Work in process | | $ | 914 | | | $ | 914 | | | | | | | | | |
Finished goods | | | 60 | | | | 116 | | | | | | | | | |
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| | $ | 974 | | | $ | 1,030 | | | | | | | | | |
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Income Taxes | ' |
Income Taxes |
The Company uses the asset and liability method to account for income taxes, including the recognition of deferred tax assets and deferred tax liabilities for the anticipated future tax consequences attributable to differences between financial statement amounts and their respective tax bases. The Company reviews its deferred tax assets for recovery. A valuation allowance is established when the Company believes that it is more likely than not that its deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the Company’s tax provision in the period of change. We have recorded a full valuation allowance against our net deferred tax assets as of September 30, 2013. |
Income taxes were provided for profitable foreign jurisdictions at the estimated annual tax rate during the three-month periods ended September 30, 2013 and 2012. The Company’s U.S. operations reported a net loss for the three-month periods ended September 30, 2013 and 2012, resulting in a tax benefit that was fully offset by a valuation allowance. |
The Company has no liability for uncertain tax positions as of September 30, 2013. |
Net Loss Per Share Allocable to Common Stockholders | ' |
Net Loss Per Share Allocable to Common Stockholders |
Net loss per basic and diluted common share allocable to common stockholders is based on the net loss for the relevant period, divided by the weighted-average number of common shares outstanding during the period. For purposes of the diluted net loss per common share calculations, the exercise or conversion of all potential common shares is not included because their effect would have been anti-dilutive, due to the net loss recorded for the three-month periods ended September 30, 2013 and 2012. The common stock equivalents excluded from the diluted per share calculation are 7,708,560 and 7,596,825 shares at September 30, 2013 and 2012, respectively. |
Comprehensive Loss | ' |
Comprehensive Loss |
Comprehensive loss consists of net loss, unrealized loss on available for sale securities and foreign exchange translation adjustments and is presented in the condensed consolidated statements of comprehensive loss. |
Reclassification | ' |
Reclassification |
Certain prior period balances have been reclassified to conform to the current period presentation. |
Accounting Pronouncements | ' |
Accounting Pronouncements |
In July 2013, the FASB issued Accounting Standard Update (“ASU”) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry-forward, a Similar Tax Loss, or a Tax Credit Carry-forward Exists.” This ASU will eliminate the diversity in practice in presentation of unrecognized tax benefits when a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward exists at the reporting date. This new guidance requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carry-forward that would apply in settlement of the uncertain tax positions. Under the new guidance, unrecognized tax benefits will be netted against all available same-jurisdiction loss or other tax carry-forward that would be utilized, rather than only against carryforwards that are created by the unrecognized tax benefits. This guidance is effective prospectively, but allows optional retrospective adoption (for all periods presented), for reporting periods beginning after December 15, 2013. As this guidance relates to presentation only, the adoption of this guidance will not impact our financial position or results of operations. |
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“AOCI”).” ASU requires entities to disclose additional information about reclassification adjustments, including changes in AOCI balances by component and significant items reclassified out of AOCI. The Company adopted this pronouncement in the first quarter of fiscal year 2014. |