Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 28, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Accelerate Diagnostics, Inc. | ' |
Entity Central Index Key | '0000727207 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 41,904,521 |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
Condensed_Balance_Sheets
Condensed Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $26,142 | $30,029 |
Investments | 12,420 | 11,960 |
Trade accounts receivable | 40 | 24 |
Prepaid expenses and other | 969 | 130 |
Total current assets | 39,571 | 42,143 |
Property and equipment, net | 1,624 | 1,047 |
Intellectual property, net | 222 | 241 |
Total Assets | 41,417 | 43,431 |
Current liabilities: | ' | ' |
Accounts payable | 718 | 540 |
Accrued compensation and other liabilities | 768 | 515 |
Deferred revenue and income | 78 | 82 |
Capital lease obligation | 143 | ' |
Total current liabilities | 1,707 | 1,137 |
Long-term deferred income | 777 | 777 |
Long-term capital lease obligation | 124 | ' |
Total liabilities | 2,608 | 1,914 |
Stockholders' equity: | ' | ' |
Common stock, $0.001 par value; 55,000,000 shares authorized (as of March 31, 2014) 41,904,521 (as of March 31, 2014) and 41,649,521 (as of December 31, 2013) shares issued and outstanding | $42 | $42 |
Preferred stock, $0.001 par value; 5,000,000 shares authorized and none outstanding as of March 31, 2014 and September 30, 2013 | ' | ' |
Contributed capital | 78,427 | 75,937 |
Accumulated deficit | -39,686 | -34,484 |
Accumulated other comprehensive income | 26 | 22 |
Total stockholders' equity | 38,809 | 41,517 |
Total liabilities and stockholders' equity | $41,417 | $43,431 |
Condensed_Balance_Sheets_Paren
Condensed Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 55,000,000 | 55,000,000 |
Common Stock, shares issued | 41,904,521 | 41,469,521 |
Common Stock, shares outstanding | 41,904,521 | 41,469,521 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Condensed_Statements_of_Operat
Condensed Statements of Operations and Comprehensive Loss (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Licensing and royalty revenues | $14 | $16 |
Total revenues | 14 | 16 |
Costs and expenses: | ' | ' |
Research and development | 3,564 | 1,882 |
Sales, general and administrative | 2,044 | 629 |
Amortization | 19 | 19 |
Depreciation | 134 | 36 |
Total costs and expenses | 5,761 | 2,566 |
Loss from operations | -5,747 | -2,550 |
Interest and dividend income | 18 | 1 |
Total other income | 18 | 1 |
Net loss before income taxes | -5,729 | -2,549 |
Benefit from income taxes | 527 | ' |
Net loss | -5,202 | -2,549 |
Net loss per share: | ' | ' |
Basic and diluted net loss per share (not in thousands) | ($0.12) | ($0.09) |
Weighted average shares outstanding (in thousands) | 41,788 | 29,134 |
Other comprehensive loss: | ' | ' |
Net loss | -5,202 | -2,549 |
Net unrealized gain on available-for-sale investments | 4 | ' |
Comprehensive loss | ($5,198) | ($2,549) |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($5,202) | ($2,549) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation | 134 | 36 |
Amortization of intangible assets | 19 | 19 |
Amortization of investment discount | 58 | ' |
Stock-based compensation | 1,760 | 437 |
Increase in assets: | ' | ' |
Accounts receivable | -16 | -29 |
Prepaid expense and other | -791 | -76 |
Increase (decrease) in liabilities: | ' | ' |
Accounts payable | 125 | -270 |
Accrued liabilities | 244 | 166 |
Deferred revenue and income | -4 | -8 |
Net cash used in operating activities | -3,673 | -2,274 |
Cash flows from investing activities: | ' | ' |
Purchases of equipment and capitalized patents | -424 | -675 |
Purchase of available-for-sale securities | -514 | ' |
Net cash used in investing activities | -938 | -675 |
Cash flows from financing activities: | ' | ' |
Exercise of warrants and options | 730 | ' |
Rights offering costs incurred | -6 | ' |
Issuance of common stock and warrants | ' | 20,137 |
Net cash provided by financing activities | 724 | 20,137 |
Increase (decrease) in cash and cash equivalents | -3,887 | 17,188 |
Cash and cash equivalents, beginning of period | 30,029 | 12,069 |
Cash and cash equivalents, end of period | $26,142 | $29,257 |
Organization_and_Nature_of_Bus
Organization and Nature of Business; Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Organization and Nature of Business; Basis of Presentation | ' |
NOTE 1. ORGANIZATION AND NATURE OF BUSINESS; BASIS OF PRESENTATION | |
Accelerate Diagnostics, Inc. (“Accelerate” or the “Company”) is a Delaware corporation focused on developing and commercializing innovative instrumentation for the rapid identification and antibiotic susceptibility testing of infectious pathogens. The Company’s ID/AST instrument utilizes a proprietary culture-free process with both genomic and phenotypic detection technologies that decrease time to result while maintaining high sensitivity and specificity. | |
The financial statements included herein have been prepared by Accelerate without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted as allowed by such rules and regulations. The Company believes that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with our audited financial statements dated December 31, 2013, which were included in our Annual Report on Form 10-K as filed with the SEC on March 7, 2014 and subsequently amended by the Annual Report on Form 10-K/A (Amendment No. 1) that we filed with the SEC on March 28, 2014. | |
Management believes that the accompanying unaudited financial statements are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which require the use of management estimates as described below, and contain all adjustments (including normal recurring adjustments) necessary to present fairly the operations and cash flows for the periods presented. The results of operations for the quarter ended March 31, 2014 may not be indicative of the results of operations for the year ended December 31, 2014. | |
All amounts are rounded to the nearest thousand dollars unless otherwise indicated. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recently Issued Accounting Pronouncements | ' |
NOTE 2. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
In December 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-12, Definition of a Public Business Entity. The purpose of this standard is to clarify which nonpublic entities potentially qualify for alternative financial accounting and reporting guidance by defining “public business entity” for future use in U.S. GAAP. Currently, FASB Accounting Standards Codification (“ASC”) includes multiple definitions of “public entity”. This standard provides a single definition of “public business entity” for use in future financial accounting and reporting guidance but does not affect existing requirements. There is no effective date for this standard but the definition will start to be used in ASU’s as FASB feels is appropriate. The standard defines “public business entity” as a business entity that meets any one of a number of criteria, one of which is the requirement to file financial statements with the SEC. Management has determined that the Company meets the definition of a “public business entity” and there will be no impact on the Company’s financial position, results of operations, or cash flows. | |
In July 2013, the FASB issued ASU 2013-11, which requires a reporting entity to present an unrecognized tax benefit as a liability in the financial statements separate from deferred tax assets if a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available as of the reporting date to settle taxes that would result from the disallowance of the tax position or if a reporting entity does not intend to use the deferred tax asset for such purpose. The amendments in ASU 2013-11 are effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2013. The adoption of ASU 2013-11 did not have a material impact on the Company’s financial statements. | |
In March 2013, the FASB issued ASU 2013-04, which provides guidance on the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The update requires an entity to measure obligations resulting from joint and several liability obligations for which the total amount of the obligation within the scope of the update is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangements among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in ASU 2013-04 are effective for fiscal years and interim periods within those years, beginning on or after December 15, 2013 and must be applied retrospectively. The adoption of ASU 2013-04 did not have a material impact on the Company’s financial position, results of operations, or cash flows. | |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
NOTE 3. FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||
The carrying amounts of financial instruments such as cash equivalents, restricted cash, accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses, and other current liabilities approximate the related fair values due to the short-term maturities of these instruments. The Company may invest its excess cash into financial instruments that are readily convertible into cash, such as marketable securities, money market funds and certificates of deposit with original maturities of three months or less at the date of purchase. The Company considers all highly liquid investments with maturities of three months or less from the date of purchase to be cash equivalents. The Company has established guidelines to maintain safety and liquidity for our financial instruments, and the cost of securities sold is based on the specific identification method. | |||||||||||||||||
ASC Topic 820, Fair Value Measurements and Disclosures has redefined fair value and required the Company to establish a framework for measuring fair value and expand disclosures about fair value measurements. The framework requires the valuation of assets and liabilities subject to fair value measurements using a three tiered approach and fair value measurement be classified and disclosed in one of the following three categories: | |||||||||||||||||
• | Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||||||||||||||||
• | Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; | ||||||||||||||||
• | Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). | ||||||||||||||||
The following tables represent the financial instruments measured at fair value on a recurring basis on the financial statements of the Company subject to ASC Topic 820, Fair Value Measurements and Disclosure, and the valuation approach applied to each class of financial instruments at March 31, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Quoted Prices in Active Markets for Identical Asset | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Total | |||||||||||||||||
Assets: | |||||||||||||||||
Money market funds (cash equivalents) | $ | 15,657 | $ | — | $ | — | $ | 15,657 | |||||||||
Corporate notes and bonds | — | 11,920 | — | 11,920 | |||||||||||||
Asset-backed securities | — | 500 | — | 500 | |||||||||||||
Total assets measured at fair value | $ | 15,657 | $ | 12,420 | $ | — | $ | 28,077 | |||||||||
31-Dec-13 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Quoted Prices in Active Markets for Identical Asset | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Money market funds (cash equivalents) | $ | 27,096 | $ | — | $ | — | $ | 27,096 | |||||||||
Corporate notes and bonds | — | 11,460 | — | 11,460 | |||||||||||||
Asset-backed securities | — | 500 | — | 500 | |||||||||||||
Total assets measured at fair value | $ | 27,096 | $ | 11,960 | $ | — | $ | 39,056 | |||||||||
Level 2 available-for-sale securities are priced using quoted market prices for similar instruments or nonbinding market prices that are corroborated by observable market data. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data, which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets and liabilities. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs. There were no significant transfers between levels during the three-month period ended March 31, 2014. |
Investments
Investments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||||||||||
Investments | ' | ||||||||||||||||
NOTE 4. INVESTMENTS | |||||||||||||||||
The following tables summarize the Company’s available-for-sale investments at March 31, 2014 (in thousands): | |||||||||||||||||
Amortized Cost | Gross Unrealized Gross | Gross Unrealized Losses | |||||||||||||||
Fair Value | |||||||||||||||||
Asset-backed securities | $ | 500 | $ | — | $ | — | $ | 500 | |||||||||
Corporate notes and bonds | 11,894 | 26 | — | 11,920 | |||||||||||||
Total | $ | 12,394 | $ | 26 | $ | — | $ | 12,420 | |||||||||
The following table summarizes the maturities of the Company’s available-for-sale securities at March 31, 2014 (in thousands): | |||||||||||||||||
Amortized | Fair Value | ||||||||||||||||
Cost | |||||||||||||||||
Due in less than 1 year | $ | 7,870 | $ | 7,878 | |||||||||||||
Due in 1-3 years | 4,524 | 4,542 | |||||||||||||||
Total | $ | 12,394 | $ | 12,420 |
Property_and_Equipment
Property and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
NOTE 5. PROPERTY AND EQUIPMENT | |||||||||
Property and equipment are recorded at cost and consisted of the following at March 31, 2014 and December 31, 2013 (in thousands). | |||||||||
Property and Equipment | |||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Computer equipment | $ | 588 | $ | 567 | |||||
Laboratory and scientific equipment | 858 | 791 | |||||||
Furniture and fixtures | 37 | 37 | |||||||
Leasehold improvements | 286 | 279 | |||||||
Capital lease – leasehold improvements | 266 | — | |||||||
Capital projects in progress | 350 | — | |||||||
Total property and equipment | $ | 2,385 | $ | 1,674 | |||||
Accumulated amortization – capital lease | (33 | ) | — | ||||||
Accumulated depreciation – other | (728 | ) | (627 | ) | |||||
Net property and equipment | $ | 1,624 | $ | 1,047 | |||||
Depreciation expense, which includes amortization of capital lease assets, for the three-month periods ended March 31, 2014 and 2013, was $134,000 and $36,000, respectively. |
Intellectual_Property
Intellectual Property | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Intellectual Property | ' | ||||||||
NOTE 6. INTELLECTUAL PROPERTY | |||||||||
Intellectual property consisted of the following at the dates indicated (in thousands): | |||||||||
Intellectual Property | |||||||||
(in thousands) | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Technologies | $ | 193 | $ | 193 | |||||
Patents | 210 | 210 | |||||||
Subtotal | $ | 403 | $ | 403 | |||||
Accumulated amortization | (181 | ) | (162 | ) | |||||
Net intellectual property | $ | 222 | $ | 241 | |||||
Future amortization expense for the intangible assets is estimated as follows (in thousands): | |||||||||
Intangible Assets Future Amortization | |||||||||
Years Ending December 31 | |||||||||
(in thousands) | |||||||||
Remaining in 2014 | $ | 44 | |||||||
2015 | 8 | ||||||||
2016 | 8 | ||||||||
2017 | 8 | ||||||||
2018 | 8 | ||||||||
Thereafter | 146 | ||||||||
Total future amortization | $ | 222 | |||||||
Intellectual properties are recorded at cost and are being amortized on a straight-line basis over their estimated useful lives of 20 years or the patent application life specific to each capitalized patent. Amortization expense for the three-month periods ending March 31, 2014 and 2013 was $19,000 and $19,000, respectively. The Company routinely evaluates the recoverability of its long-lived assets based upon estimated future cash flows from and estimated fair value of such long-lived assets. If in management’s judgment, the anticipated undiscounted cash flows or estimated fair value are insufficient to recover the carrying amount of the long-lived asset, the Company will determine the amount of the impairment and the value of the asset will be written down. There were no amounts recognized as losses due to impairments of intangible assets for the three-month periods ending March 31, 2014 and 2013. |
License_Agreements_and_Grants
License Agreements and Grants | 3 Months Ended | ||
Mar. 31, 2014 | |||
Accounting Policies [Abstract] | ' | ||
License Agreements and Grants | ' | ||
NOTE 7. LICENSE AGREEMENTS AND GRANTS | |||
In May 2012, the Company and Denver Health were notified that the Defense Medical Research and Development Program (“DMRDP”) recommended $2 million of funding for a proposed 35-month project of which the Company estimates it will receive direct monies for internal research and development of $650,000. The joint proposal became the sole recipient under the Military Infectious Diseases Applied Research Award program for rapid detection of serious antibiotic-resistant infections. The project will apply the Company’s ID/AST instrument to wound infections and other serious infections secondary to trauma. As of March 31, 2014 the Company has cumulatively invoiced $198,000 ($40,000 for three-month period ended March 31, 2014, and $11,000 for the three-month period ended March 31, 2013) under this grant recorded as an offset to research and development expenses. | |||
On August 22, 2012, the Company entered into a Grant Agreement (the “Grant Agreement”) with the Arizona Commerce Authority, an agency of the State of Arizona (the “Authority”), pursuant to which the Authority will provide certain state and county sponsored incentives for the Company to relocate its corporate headquarters to, and expand its business within, the State of Arizona (the “Project”). Pursuant to the Grant Agreement, the Authority agreed to provide a total grant in the amount of $1,000,000 (the “Grant”) for the use by the Company in the advancement of the Project. The Grant is payable out of an escrow account in four installments, upon the achievement of the following milestones: | |||
· | Milestone 1 – Relocation of Company’s operations and corporate headquarters to Arizona and creation of 15 Qualified Jobs (as defined below). | ||
· | Milestone 2 – Creation of 30 Qualified Jobs (including Qualified Jobs under Milestone 1). | ||
· | Milestone 3 – Creation of 40 Qualified Jobs (including Qualified Jobs under Milestones 1 and 2). | ||
· | Milestone 4 – Creation of 65 Qualified Jobs (including Qualified Jobs under Milestones 1, 2 and 3) and capital investment of at least $4,520,000. | ||
For purposes of the Grant Agreement, a “Qualified Job” is a job that is permanent, full-time, new to Arizona, and for which the Company pays average (across all Qualified Jobs identified by the Company in its discretion) annual wages of at least $63,000 and offers health insurance benefits and pays at least 65% of the premiums associated with such benefits. The amount of each installment payment will be determined in accordance with a formula specified in the Grant Agreement. The Grant Agreement also contains other customary provisions, including representations, warranties and covenants of both parties. As of March 31, 2014 the Company has collected $750,000 of the $1,000,000 in milestones. The full amount is recorded in long-term deferred income until the economic development provisions of the grant have been satisfied in full, as there are ‘claw-back’ provisions which would require repayment of certain amounts received if employment levels are not sustained during the term of the arrangement. Once the ‘claw-back’ provisions expire, we will recognize the grant as other non-operating income. |
Deferred_Revenue_and_Income
Deferred Revenue and Income | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Deferred Revenue and Income | ' | ||||||||
NOTE 8. DEFERRED REVENUE AND INCOME | |||||||||
Deferred revenue consists of amounts received for products or services not yet delivered or earned. Deferred income consists of amounts received for commitments not yet fulfilled. If we anticipate that the revenue or income will not be earned within the following fiscal year, the amount is reported as long-term deferred income. A summary of the balances as of March 31, 2014 and December 31, 2013 follow (in thousands): | |||||||||
Deferred Revenue and Income | |||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Prepaid royalties | $ | 65 | $ | 69 | |||||
Fisher Agreement | 13 | 13 | |||||||
Total deferred revenue and income | $ | 78 | $ | 82 | |||||
Arizona Commerce Authority Grant (see Note 7) | $ | 750 | $ | 750 | |||||
Fisher Agreement | 27 | 27 | |||||||
Total Long-term deferred income | $ | 777 | $ | 777 | |||||
Deferred revenue includes prepaid royalty fees. In September 2011, $100,000 of prepaid royalty fees was received of which $3,000 and $8,000 were recognized during the three-month periods ended March 31, 2014 and 2013, respectively and are reflected as licensing and royalty revenue. | |||||||||
Deferred income includes a $40,000 payment received from Fisher Laboratory in July, 2013, of which none has been recognized as income. We anticipate earning $13,000 of this amount in the next twelve months and the remaining $27,000 in future years. | |||||||||
In the fiscal year ended December 31, 2013, $750,000 in milestone payments from the Arizona Commerce Authority were received of which none has been recognized in income and we do not anticipate earning any of it in the next fiscal year. Further details of the Arizona Commerce Authority agreement are in Note 7, License Agreements and Grants. |
Stock_Purchase
Stock Purchase | 3 Months Ended | ||
Mar. 31, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Stock Purchase | ' | ||
NOTE 9. STOCK PURCHASE | |||
On April 20, 2012, we entered into a Securities Purchase Agreement with Abeja Ventures, LLC (“Abeja”), pursuant to which the Company agreed to sell and issue to Abeja at a purchase price of $1.03 per share for an aggregate purchase price of $14,420,000; (i) 14,000,000 shares of the Company’s Common Stock; (ii) a warrant to purchase 7,000,000 shares of the Company’s Common Stock at an exercise price of $1.03 per share (the “$1.03 Warrant”); and (iii) another warrant to purchase 7,000,000 shares of the Company’s Common Stock at an exercise price of $2.00 per share (the “$2.00 Warrant”), with each warrant exercisable prior to the fifth anniversary of the closing of the transactions contemplated by the Securities Purchase Agreement (collectively, the “Investment”). The purchase of Common Stock and warrants pursuant to the Investment, which was consummated on June 26, 2012, qualified for equity treatment under Generally Accepted Accounting Principles. The respective values of the warrants and Common Stock were calculated using their relative fair values and both are classified under Contributed Capital. The value therefore recorded for the warrants is $5,896,000 and for the Common Stock is $8,524,000. | |||
As noted above, the warrants sold by the Company include (i) a warrant to purchase 7,000,000 shares of the Company’s common stock at an exercise price of $1.03 per share, and (ii) a warrant to purchase an additional 7,000,000 shares of the Company’s common stock at an exercise price of $2.00 per share. Both warrants were exercisable until June 26, 2017, which was the fifth anniversary of the date on which the warrants were issued. Other significant terms and conditions of the warrants are as follows: | |||
· | the warrants provide for partial exercises, but they do not provide for a “cashless” exercise feature (i.e., they may only be exercised for cash); | ||
· | the warrants do not contain anti-dilution provisions that would trigger exercise price or other adjustments as a result of subsequent issuances of the Company’s equity securities, but they do contain customary provisions for equitable adjustments in connection with stock dividends, stock splits or reclassifications of the Company’s common stock; | ||
· | following certain types of fundamental transactions involving the Company (e.g., a transaction resulting in a change in control of the Company), the holder of the warrants would continue to be entitled to exercise the warrants in exchange for the equity securities or alternate consideration receivable by a holder of the Company’s common stock as a result of the fundamental transaction; and | ||
· | the holder of the warrants is entitled to certain demand and piggy-back registration rights, including for shelf registrations, with respect to the shares of common stock issuable upon its exercise of the warrants. | ||
On March 6, 2013, Abeja exercised in full its warrant to purchase 7,000,000 shares of the Company’s Common Stock at an exercise price of $1.03 per share. On the same date, Abeja also exercised the 92% of its warrant to purchase an additional 7,000,000 shares of the Company’s Common Stock at an exercise price of $2.00 per share (Abeja exercised such warrant for 6,428,840 shares, leaving 571,160 shares unexercised). The Company received aggregate funds of $20,068,000 in connection with such exercises. Shares issued by the Company in connection with the warrant exercises were issued directly to the members of Abeja on a pro rata basis in accordance with their membership interests and written exercise instructions provided to the Company by Abeja. Immediately after giving effect to the warrant exercises, Abeja also distributed in kind to its members (on a pro rata basis in accordance with their membership interests) the remaining shares of Common Stock held by that entity. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2014 | |
Net loss per share: | ' |
Earnings Per Share | ' |
NOTE 10. EARNINGS PER SHARE | |
The Company follows ASC 260, Earnings Per Share, which requires companies to present basic earnings per share and diluted earnings per share. Basic earnings (loss) per share includes no dilution and is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. | |
The Company’s net loss for the periods presented caused the inclusion of certain outstanding warrants and options to purchase our Common Stock to be antidilutive. As of March 31, 2014 and December 31, 2013, there were Common Stock options and warrants exercisable for 6,018,969 (571,160 warrants and 5,447,809 options) and 5,731,246 (571,160 warrants and 5,160,086 options) shares of Common Stock, respectively, which were not included in diluted loss per share as the effect was antidilutive. Of the 5,447,809 options outstanding as of March 31, 2014, 253,723 were granted contingent on stockholder approval of the Second Amendment to the Company’s 2012 Omnibus Equity Incentive Plan (the “Equity Plan”), which will increase the number of shares of stock reserved and available for grant under the Equity Plan by 4,000,000. |
Employee_StockBased_Compensati
Employee Stock-Based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Employee Stock-Based Compensation | ' | ||||||||
NOTE 11. EMPLOYEE STOCK-BASED COMPENSATION | |||||||||
In February, 2014, the Company granted 253,723 stock options to employees, based upon approval of the Board of Directors, contingent upon stockholder approval of the Second Amendment to the Equity Plan described in Note 10 above. As the Board of Directors and members of management control more than 50% of the outstanding shares of common stock, such stockholder approval is considered perfunctory and both the grant date and service inception are considered to have occurred on the date the Board approved the stock option awards. | |||||||||
The following table summarizes stock-based compensation expense in the condensed consolidated statements of operations for the periods indicated (in thousands): | |||||||||
Stock-Based Compensation Expense | |||||||||
(in thousands) | |||||||||
March 31, | March 31, | ||||||||
2014 | 2013 | ||||||||
Research and development | $ | 824 | $ | 260 | |||||
Sales, general and administrative | 936 | 177 | |||||||
Total stock-based compensation expense | $ | 1,760 | $ | 437 | |||||
The following table summarizes option activity under all plans during the three-month period that ended on March 31, 2014: | |||||||||
Stock Option Activity | |||||||||
Weighted Average Exercise Price | |||||||||
per share | |||||||||
Number of | |||||||||
Shares | |||||||||
Options Outstanding December 31, 2013 | 5,160,086 | $ | 3.45 | ||||||
Granted | 542,723 | 14.72 | |||||||
Cancelled | — | — | |||||||
Exercised | 255,000 | 2.86 | |||||||
Expired | — | — | |||||||
Options Outstanding March 31, 2014 | 5,447,809 | $ | 4.6 | ||||||
The following table summarizes relevant information for options outstanding and options exercisable at March 31, 2014: | |||||||||
Stock Option Supplemental Information | |||||||||
As of March 31, 2014 | |||||||||
Options Outstanding | Options Exercisable | ||||||||
Number of options | 5,447,809 | 843,337 | |||||||
Weighted average remaining contractual term (in years) | 8.61 | 8.26 | |||||||
Weighted average exercise price | $ | 4.6 | $ | 2.55 | |||||
Weighted average fair value | $ | 3.53 | $ | 1.68 | |||||
Aggregate intrinsic value (in thousands) | $ | 93,758 | $ | 16,246 | |||||
The following table summarizes the weighted average assumptions used in determining the fair value of the Company’s stock options granted to employees during the three-month periods ending March 31, 2014 and 2013: | |||||||||
Fair Value Assumptions for Stocks Issued During the Quarter | |||||||||
(weighted average) | |||||||||
March 31, | March 31, | ||||||||
2014 | 2013 | ||||||||
Expected term (in years) | 6.01 | 6.6 | |||||||
Volatility | 97 | % | 97 | % | |||||
Expected dividends | — | — | |||||||
Risk free interest rates | 1.84 | % | 1.18 | % | |||||
Estimated forfeitures | 14 | % | 23 | % | |||||
Fair value per share | $ | 11.46 | $ | 4.06 | |||||
As of March 31, 2014, unrecognized share-based compensation cost related to unvested stock options was $10,105,000. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
NOTE 12. INCOME TAXES | |
Deferred tax assets and liabilities are recorded for the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the accompanying balance sheets. The change in deferred tax assets and liabilities for the period represents the deferred tax provision or benefit for the period. Effects of changes in enacted tax laws in deferred tax assets and liabilities are reflected as an adjustment to the tax provision or benefit in the period of enactment. | |
The Company follows the provisions of ASC 740, Income Taxes, to account for any uncertainty in income taxes with respect to the accounting for all tax positions taken (or expected to be taken) on any income tax return. This guidance applies to all open tax periods in all tax jurisdictions in which the Company is required to file an income tax return. Under GAAP, in order to recognize an uncertain tax benefit the taxpayer must be more likely than not of sustaining the position, and the measurement of the benefit is calculated as the largest amount that is more than 50% likely to be realized upon resolution of the benefit. The Company determined that no uncertain tax positions have been taken or are expected to be taken that could have a material effect on the Company’s income tax liabilities. Interest and penalties, if any, would be recorded to general and administrative expenses. | |
On January 8, 2014, we were notified by the Arizona Commerce Authority (“Authority”) that we meet the program requirements to receive a “Certificate of Qualification” and, therefore, are eligible for a partial refund of research and development investments. Our research and development tax credit for 2013 is $703,000 which makes us eligible to claim a partial refund of 75% or $527,000. By claiming this partial refund, we irrevocably forfeit the remaining 25% tax credit amount along with any additional tax credits that might become available if our qualifying expenses increase or income tax liability decreases. The “Certificate of Qualification” does not guarantee the receipt of tax incentives; nor does it obligate the Arizona Department of Revenue to issue the refund. Furthermore, if qualifying expenses decrease or income tax liability increases, the refund amount may be less than the $527,000. If the amount received for this tax credit is later determined to be incorrect or invalid, the excess may be treated as a tax deficiency. As of March 31, 2014, we have recorded the $527,000 partial refund as a non-operating benefit from income taxes. Payment of this amount was received in April 2014. |
Commitments
Commitments | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||
Commitments | ' | ||||||
NOTE 13. COMMITMENTS | |||||||
Operating & Capital Lease Obligations | |||||||
As of December 31, 2012, the Company was a party to a lease for office and laboratory space located in Denver, Colorado that subsequently expired on February 1, 2013 (pursuant to an extension effective as of August 3, 2012). There was no rent expense for the three-month period ending March 31, 2014 and $9,000 for the three-month period ending March 31, 2013. | |||||||
On August 20, 2012, the Company entered into a Lease Agreement (“Lease”) with Pima County, a political subdivision of the State of Arizona (“Landlord”), pursuant to which the Company will lease approximately 15,096 square feet of office space located in Tucson, Arizona for a period of three years (the “Initial Term”), which may be extended by the Company for up to three additional one-year periods (each a “Renewal Term”). The Lease also provides that the Company has the option, with six months prior notice to Landlord, to lease either or both of two additional areas with an aggregate size of approximately 7,920 square feet. | |||||||
Pursuant to the Lease, the Company agreed to: (i) pay rent equal to $9.25 per usable square foot per year (approximately $139,600 per year or approximately $11,600 per month) during the Initial Term and $19.80 per usable square foot per year (approximately $298,900 per year or approximately $24,900 per month) during any Renewal Term; (ii) relocate its corporate offices to the Tucson area and begin operations within 30 days of the date that the tenant improvements are substantially completed (the “Commencement Date”); and (iii) within 18 months of the Commencement Date, employ at least 30 individuals with a median salary of at least $70,000, which median salary must be maintained throughout the term of the Lease. If the Company fails to satisfy the condition described in clause (iii) of the preceding sentence, the rental rate under the Lease will be increased by a percentage that is twice the percentage by which the Company’s annual payroll has fallen short of the specified goal (subject to a cap equal to $19.80 per usable square foot per year). The Lease also provides that Landlord will pay for tenant improvements (up to a cap of $1,400,000) as well as certain repairs, utilities and insurance. | |||||||
As of February 1, 2013, we relocated our headquarters into the above described leased space in Tucson, Arizona. On October 15, 2013, the Company executed the First Amendment to the Lease to exercise its option to expand its lease premises by 4,332 square feet. After completing tenant improvements, the Company occupied this additional space in January, 2014. Pursuant to the terms of the First Amendment, the tenant improvements will be repaid to the Landlord over the remaining lease term. These tenant improvements are treated as a capital lease whereby both an asset and a liability have been recorded and periodic interest and depreciation will be recorded to amortize the value of this asset and the liability over the remaining lease term. Further details regarding this capital lease are available in Note 5, Property and Equipment, above. | |||||||
The future minimum lease payments under the capital lease together with the present value of the net minimum lease payments as of March 31, 2014 are as follows: | |||||||
Capital Lease Obligations | |||||||
(in thousands) | |||||||
Year ending December 31: | |||||||
Remaining in 2014 | $ | 113 | |||||
2015 | 151 | ||||||
2016 | 13 | ||||||
2017 | — | ||||||
2018 | — | ||||||
Total minimum lease payments | $ | 277 | |||||
Less amount representing interest | 10 | ||||||
Present value minimum lease payments | $ | 267 | |||||
Total rent expense for the Tucson facility, including common area charges, for three-month periods ending March 31, 2014 and 2013 was approximately $49,000 and $0, respectively. Future minimum lease payments under this agreement are as follows (in thousands): | |||||||
Operating Lease Obligations | |||||||
(in thousands) | |||||||
Year ending December 31: | |||||||
Remaining in 2014 | $ | 137 | |||||
2015 | 183 | ||||||
2016 | 183 | ||||||
2017 | — | ||||||
2018 | — | ||||||
Thereafter | — |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
NOTE 14. SUBSEQUENT EVENTS | |
In April 2014, the Company entered into a Second Amendment to the Lease described in Note 13 above, pursuant to which the Company exercised its option to build-out and occupy 3,594 square feet and an additional 4,163 square feet not contemplated in the Lease for manufacturing and other operational requirements. Pursuant to the Second Amendment, the Company also agreed to: (i) pay rent equal to $9.25 per usable square foot per year for the 3,594 option space and $17.63 per usable square foot per year for the additional 4,163 square feet during the Initial Term; (ii) pay rent of $19.80 per usable square foot per year for the 3,594 option space and $17.63 per usable square foot per year for the additional 4,163 square feet during any Renewal Term; (ii) restore the 3,594 option space and the 4,163 additional space to a reasonable office typical tenant space at the end of the Lease; and (iii) adhere to all other terms of the Lease. | |
On April 7, 2014, the Company commenced a rights offering to raise $45 million to fund its continued operations, clinical trials, and product commercialization efforts. Under the terms of the rights offering, the Company is distributing, at no charge to the holders of its common stock as of 5:00 p.m., New York City time, on March 14, 2014, which was established as the record date for the rights offering, 0.063921 non-transferable subscription rights for each share of common stock owned on the record date. Each whole subscription right will allow the holder to subscribe to purchase one share of common stock at a subscription price of $16.80 per share. In the aggregate, the Company intends to issue 2,678,571 shares of common stock in connection with the rights offering. The rights offering will expire on 5:00 p.m. New York City time, on April 28, 2014. The Company has received a standby commitment from the Jack W. Schuler Living Trust and the Schuler Family Foundation. The standby purchaser has agreed to purchase any and all shares of common stock that are not subscribed for by stockholders in connection with the rights offering. Upon completion of the rights offering, the Company will receive gross proceeds of approximately $45 million before expenses. The purpose of the rights offering is to raise equity capital in a cost-effective manner that gives all of the Company’s existing stockholders the opportunity to participate on a pro rata basis. | |
In April 2014, the Company received payment from the Arizona Department of Revenue totaling $527,000 for the 2013 research and development tax credit. Further details about this payment are included in Note 12, Income Taxes, above. |
Organization_and_Nature_of_Bus1
Organization and Nature of Business; Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
31-Mar-14 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Quoted Prices in Active Markets for Identical Asset | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Total | |||||||||||||||||
Assets: | |||||||||||||||||
Money market funds (cash equivalents) | $ | 15,657 | $ | — | $ | — | $ | 15,657 | |||||||||
Corporate notes and bonds | — | 11,920 | — | 11,920 | |||||||||||||
Asset-backed securities | — | 500 | — | 500 | |||||||||||||
Total assets measured at fair value | $ | 15,657 | $ | 12,420 | $ | — | $ | 28,077 | |||||||||
31-Dec-13 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Quoted Prices in Active Markets for Identical Asset | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Money market funds (cash equivalents) | $ | 27,096 | $ | — | $ | — | $ | 27,096 | |||||||||
Corporate notes and bonds | — | 11,460 | — | 11,460 | |||||||||||||
Asset-backed securities | — | 500 | — | 500 | |||||||||||||
Total assets measured at fair value | $ | 27,096 | $ | 11,960 | $ | — | $ | 39,056 |
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||||||||||
Available-for-Sale Investments | ' | ||||||||||||||||
The following tables summarize the Company’s available-for-sale investments at March 31, 2014 (in thousands): | |||||||||||||||||
Amortized Cost | Gross Unrealized Gross | Gross Unrealized Losses | |||||||||||||||
Fair Value | |||||||||||||||||
Asset-backed securities | $ | 500 | $ | — | $ | — | $ | 500 | |||||||||
Corporate notes and bonds | 11,894 | 26 | — | 11,920 | |||||||||||||
Total | $ | 12,394 | $ | 26 | $ | — | $ | 12,420 | |||||||||
The following table summarizes the maturities of the Company’s available-for-sale securities at March 31, 2014 (in thousands): | |||||||||||||||||
Amortized | Fair Value | ||||||||||||||||
Cost | |||||||||||||||||
Due in less than 1 year | $ | 7,870 | $ | 7,878 | |||||||||||||
Due in 1-3 years | 4,524 | 4,542 | |||||||||||||||
Total | $ | 12,394 | $ | 12,420 |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Computer equipment | $ | 588 | $ | 567 | |||||
Laboratory and scientific equipment | 858 | 791 | |||||||
Furniture and fixtures | 37 | 37 | |||||||
Leasehold improvements | 286 | 279 | |||||||
Capital lease – leasehold improvements | 266 | — | |||||||
Capital projects in progress | 350 | — | |||||||
Total property and equipment | $ | 2,385 | $ | 1,674 | |||||
Accumulated amortization – capital lease | (33 | ) | — | ||||||
Accumulated depreciation – other | (728 | ) | (627 | ) | |||||
Net property and equipment | $ | 1,624 | $ | 1,047 |
Intellectual_Property_Tables
Intellectual Property (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Finite-Lived Intangible Assets | ' | ||||||||
Intellectual Property | |||||||||
(in thousands) | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Technologies | $ | 193 | $ | 193 | |||||
Patents | 210 | 210 | |||||||
Subtotal | $ | 403 | $ | 403 | |||||
Accumulated amortization | (181 | ) | (162 | ) | |||||
Net intellectual property | $ | 222 | $ | 241 | |||||
Future Amortization Expense | ' | ||||||||
Intangible Assets Future Amortization | |||||||||
Years Ending December 31 | |||||||||
(in thousands) | |||||||||
Remaining in 2014 | $ | 44 | |||||||
2015 | 8 | ||||||||
2016 | 8 | ||||||||
2017 | 8 | ||||||||
2018 | 8 | ||||||||
Thereafter | 146 | ||||||||
Total future amortization | $ | 222 |
Deferred_Revenue_and_Income_Ta
Deferred Revenue and Income (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Deferred Revenue and Income Summary | ' | ||||||||
Deferred Revenue and Income | |||||||||
(in thousands) | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Prepaid royalties | $ | 65 | $ | 69 | |||||
Fisher Agreement | 13 | 13 | |||||||
Total deferred revenue and income | $ | 78 | $ | 82 | |||||
Arizona Commerce Authority Grant (see Note 7) | $ | 750 | $ | 750 | |||||
Fisher Agreement | 27 | 27 | |||||||
Total Long-term deferred income | $ | 777 | $ | 777 |
Employee_StockBased_Compensati1
Employee Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Stock-Based Compensation Expense | ' | ||||||||
Stock-Based Compensation Expense | |||||||||
(in thousands) | |||||||||
March 31, | March 31, | ||||||||
2014 | 2013 | ||||||||
Research and development | $ | 824 | $ | 260 | |||||
Sales, general and administrative | 936 | 177 | |||||||
Total stock-based compensation expense | $ | 1,760 | $ | 437 | |||||
Stock Option Activity | ' | ||||||||
Stock Option Activity | |||||||||
Weighted Average Exercise Price | |||||||||
per share | |||||||||
Number of | |||||||||
Shares | |||||||||
Options Outstanding December 31, 2013 | 5,160,086 | $ | 3.45 | ||||||
Granted | 542,723 | 14.72 | |||||||
Cancelled | — | — | |||||||
Exercised | 255,000 | 2.86 | |||||||
Expired | — | — | |||||||
Options Outstanding March 31, 2014 | 5,447,809 | $ | 4.6 | ||||||
Stock Option Supplemental Information | ' | ||||||||
Stock Option Supplemental Information | |||||||||
As of March 31, 2014 | |||||||||
Options Outstanding | Options Exercisable | ||||||||
Number of options | 5,447,809 | 843,337 | |||||||
Weighted average remaining contractual term (in years) | 8.61 | 8.26 | |||||||
Weighted average exercise price | $ | 4.6 | $ | 2.55 | |||||
Weighted average fair value | $ | 3.53 | $ | 1.68 | |||||
Aggregate intrinsic value (in thousands) | $ | 93,758 | $ | 16,246 | |||||
Fair Value Assumptions | ' | ||||||||
Fair Value Assumptions for Stocks Issued During the Quarter | |||||||||
(weighted average) | |||||||||
March 31, | March 31, | ||||||||
2014 | 2013 | ||||||||
Expected term (in years) | 6.01 | 6.6 | |||||||
Volatility | 97 | % | 97 | % | |||||
Expected dividends | — | — | |||||||
Risk free interest rates | 1.84 | % | 1.18 | % | |||||
Estimated forfeitures | 14 | % | 23 | % | |||||
Fair value per share | $ | 11.46 | $ | 4.06 |
Commitments_Tables
Commitments (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||
Capital Lease Obligations | ' | ||||||
Capital Lease Obligations | |||||||
(in thousands) | |||||||
Year ending December 31: | |||||||
Remaining in 2014 | $ | 113 | |||||
2015 | 151 | ||||||
2016 | 13 | ||||||
2017 | — | ||||||
2018 | — | ||||||
Total minimum lease payments | $ | 277 | |||||
Less amount representing interest | 10 | ||||||
Present value minimum lease payments | $ | 267 | |||||
Operating Lease Obligations | ' | ||||||
Operating Lease Obligations | |||||||
(in thousands) | |||||||
Year ending December 31: | |||||||
Remaining in 2014 | $ | 137 | |||||
2015 | 183 | ||||||
2016 | 183 | ||||||
2017 | — | ||||||
2018 | — | ||||||
Thereafter | — |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details Narrative) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total | ' | ' |
Money market funds (cash equivalents) | $15,657 | $27,096 |
Corporate notes and bonds | 11,920 | 11,460 |
Asset-backed securities | 500 | 500 |
Total assets measured at fair value | 28,077 | 39,056 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Money market funds (cash equivalents) | ' | ' |
Corporate notes and bonds | ' | ' |
Asset-backed securities | ' | ' |
Total assets measured at fair value | ' | ' |
Significant Other Observable Inputs (Level 2) | ' | ' |
Money market funds (cash equivalents) | ' | ' |
Corporate notes and bonds | 11,920 | 11,460 |
Asset-backed securities | 500 | 500 |
Total assets measured at fair value | 12,420 | 11,960 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Money market funds (cash equivalents) | 15,657 | 27,096 |
Corporate notes and bonds | ' | ' |
Asset-backed securities | ' | ' |
Total assets measured at fair value | $15,657 | $27,096 |
Investments_Details_Narrative
Investments (Details Narrative) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Fair Value | ' |
Asset-backed securities | $500 |
Corporate notes and bonds | 11,920 |
Total | 12,420 |
Gross Unrealized Losses | ' |
Asset-backed securities | ' |
Corporate notes and bonds | ' |
Total | ' |
Gross Unrealized Gains | ' |
Asset-backed securities | ' |
Corporate notes and bonds | 26 |
Total | 26 |
Amortized Cost | ' |
Asset-backed securities | 500 |
Corporate notes and bonds | 11,894 |
Total | $12,394 |
Investments_Details_Narrative_
Investments (Details Narrative 1) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Fair Value | ' |
Due in less than 1 year | $7,878 |
Due in 1 to 3 years | 4,542 |
Total | 12,420 |
Amortized Cost | ' |
Due in less than 1 year | 7,870 |
Due in 1 to 3 years | 4,524 |
Total | $12,394 |
Property_and_Equipment_Propert
Property and Equipment - Property and Equipment (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property And Equipment - Property And Equipment Details | ' | ' |
Computer equipment | $588 | $567 |
Laboratory and scientific equipment | 858 | 791 |
Furniture and fixtures | 37 | 37 |
Leasehold improvements | 286 | 279 |
Capital lease-leasehold improvements | 266 | ' |
Capital projects in progress | 350 | ' |
Total property and equipment | 2,385 | 1,674 |
Accumulated depreciation - capital lease | -33 | ' |
Accumulated depreciation - other | -728 | -627 |
Net property and equipment | $1,624 | $1,047 |
Property_and_Equipment_Details
Property and Equipment (Details Narrative) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Property And Equipment Details Narrative | ' | ' |
Depreciation expense | $134 | $36 |
Intellectual_Property_FiniteLi
Intellectual Property - Finite-Lived Intangible Assets (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Intellectual Property - Finite-Lived Intangible Assets Details | ' | ' |
Technologies | $193 | $193 |
Patents | 210 | 210 |
Subtotal | 403 | 403 |
Accumulated amortization | -181 | -162 |
Net intellectual property | $222 | $241 |
Intellectual_Property_Future_A
Intellectual Property - Future Amortization Expense (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Intellectual Property - Future Amortization Expense Details | ' |
Year Ending December 31, 2014 | $44 |
Year Ending December 31, 2015 | 8 |
Year Ending December 31, 2016 | 8 |
Year Ending December 31, 2017 | 8 |
Year Ending December 31, 2018 | 8 |
Thereafter | 146 |
Total future amortization | $222 |
Intellectual_Property_Details_
Intellectual Property (Details Narrative) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Intellectual Property Details Narrative | ' | ' |
Amortization expense | $19 | $19 |
Reduction of amortized book value | $0 | $0 |
License_Agreements_and_Grants_
License Agreements and Grants (Details Narrative) (USD $) | 1 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | 31-May-12 | Mar. 31, 2014 | Mar. 31, 2013 |
License Agreements And Grants Details Narrative | ' | ' | ' |
Research and development project | $650 | ' | ' |
Offset to research and development project | ' | $40 | $11 |
License_Agreements_and_Grants_1
License Agreements and Grants (Details Narrative 1) (USD $) | Mar. 31, 2014 | Aug. 22, 2012 | Aug. 20, 2012 |
In Thousands, unless otherwise specified | |||
License Agreements And Grants Details Narrative 1 | ' | ' | ' |
Grant agreement | ' | $1,000 | ' |
Capital investment | ' | 4,520 | ' |
Qualified job wages | ' | 63 | 70 |
Qualified job benefits | ' | 65.00% | ' |
Deferred revenue from grant agreement | $750 | ' | ' |
Deferred_Revenue_and_Income_De
Deferred Revenue and Income (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Revenue And Income Details | ' | ' |
Prepaid royalties | $65 | $69 |
Fisher Agreement | 13 | 13 |
Total deferred revenue and income | 78 | 82 |
Arizona Commerce Authority Grant | 750 | 750 |
Fisher Agreement | 27 | 27 |
Total Long-term deferred income | $777 | $777 |
Deferred_Revenue_and_Income_De1
Deferred Revenue and Income (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Jul. 31, 2013 | Sep. 30, 2011 |
Deferred Revenue And Income Details Narrative | ' | ' | ' | ' |
Prepaid royalty fees | $3 | $8 | ' | ' |
Deferred revenue recognization | ' | ' | $40 | $100 |
Stock_Purchase_Details_Narrati
Stock Purchase (Details Narrative) (USD $) | Apr. 07, 2014 | Mar. 06, 2013 | Apr. 20, 2012 |
In Thousands, except Share data, unless otherwise specified | |||
Securities Purchase Agreement Dated April 20, 2012 | ' | ' | ' |
Shares of common stock | ' | ' | 14,000,000 |
Price per share | $16.80 | ' | $1.03 |
Warrants to purchase common stock | ' | ' | 7,000,000 |
Price per warrant | ' | ' | 1.03 |
Exercised warrant per purchase agreement | ' | 7,000,000 | ' |
Price per warrant | ' | 1.03 | ' |
Additional warrant to purchase common stock | ' | ' | 7,000,000 |
Price per warrant | ' | ' | 2 |
Additional exercised warrant per purchase agreement | ' | 6,429,000 | ' |
Price per warrant | ' | 2 | ' |
Value of common stock | ' | ' | $8,524,000 |
Value of warrants | ' | ' | $5,896,000 |
Earnings_Per_Share_Details_Nar
Earnings Per Share (Details Narrative) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share Details Narrative | ' | ' |
Antidilutive common stock instruments outstanding | 6,018,969 | 5,731,246 |
Employee_StockBased_Compensati2
Employee Stock-Based Compensation - Stock-Based Compensation Expense (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Employee Stock-Based Compensation - Stock-Based Compensation Expense Details | ' | ' |
Research and development | $824 | $260 |
Sales, general and administrative | 936 | 177 |
Total stock-based compensation expense | $1,760 | $437 |
Employee_StockBased_Compensati3
Employee Stock-Based Compensation - Stock Option Activity (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Number of Shares | ' |
Options Outstanding, beginning balance | 5,160,086 |
Shares Granted | 542,723 |
Shares Cancelled | ' |
Shares Exercised | 255,000 |
Shares Expired | ' |
Options Outstanding, ending balance | 5,447,809 |
Weighted Average Exercise Price Per Share | ' |
Options Outstanding, beginning balance | $3.45 |
Shares Granted | $14.72 |
Shares Cancelled | ' |
Shares Exercised | $2.86 |
Shares Expired | ' |
Options Outstanding, ending balance | $4.60 |
Employee_StockBased_Compensati4
Employee Stock-Based Compensation - Stock Option Supplemental Information (Details) (USD $) | Mar. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | Y |
Options Outstanding | ' |
Number of Options | 5,447,809 |
Weighted Average Remaining Contractual Term (in years) | 8.61 |
Weighted Average Exercise Price | $4.60 |
Weighted Average Fair Value | $3.53 |
Aggregate intrinsic value (in thousands) | $93,758 |
Options Exercisable | ' |
Number of Options | 843,337 |
Weighted Average Remaining Contractual Term (in years) | 8.26 |
Weighted Average Exercise Price | $2.55 |
Weighted Average Fair Value | $1.68 |
Aggregate intrinsic value (in thousands) | $16,246 |
Employee_StockBased_Compensati5
Employee Stock-Based Compensation - Fair Value Assumptions (weighted average) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Y | Y | |
Employee Stock-Based Compensation - Fair Value Assumptions Weighted Average Details | ' | ' |
Expected term (in year) | 6.01 | 6.6 |
Volatility | 97.00% | 97.00% |
Risk-free interest rates | 1.84% | 1.18% |
Estimated forfeitures | 14.00% | 23.00% |
Fair value per share | $11.46 | $4.06 |
Employee_Stock_Based_Compensat
Employee Stock Based Compensation - (Details Narrative) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Employee Stock Based Compensation - Details Narrative | ' |
Unrecognized share-based compensation costs | $10,105 |
Income_Taxes_Details_Narrative
Income Taxes (Details Narrative) (USD $) | Jan. 08, 2014 |
In Thousands, unless otherwise specified | |
Income Taxes Details Narrative | ' |
Research and development expense | $703,000 |
Eligible refund | $527,000 |
Commitments_Capital_Lease_Obli
Commitments - Capital Lease Obligations (Details) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments - Capital Lease Obligations Details | ' |
Year Ending December 31, 2014 | $113 |
Year Ending December 31, 2015 | 151 |
Year Ending December 31, 2016 | 13 |
Year Ending December 31, 2017 | ' |
Year Ending December 31, 2018 | ' |
Total minimum lease payments | 277 |
Less amount representing interest | 10 |
Present value minimum lease payments | $267 |
Commitments_Operating_Lease_Ob
Commitments - Operating Lease Obligations (Details) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments - Operating Lease Obligations Details | ' |
Year Ending December 31, 2014 | $137 |
Year Ending December 31, 2015 | 183 |
Year Ending December 31, 2016 | 183 |
Year Ending December 31, 2017 | ' |
Year Ending December 31, 2018 | ' |
Thereafter | ' |
Commitments_Operating_Lease_De
Commitments - Operating Lease (Details Narrative) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Aug. 22, 2012 | Aug. 20, 2012 |
Decimal | ||||
Commitments - Operating Lease Details Narrative | ' | ' | ' | ' |
Rent expense | $49 | $0 | ' | ' |
Pima County Lease Agreement | ' | ' | ' | ' |
Initial term rent per year | ' | ' | ' | 140 |
Initial term price per square foot | ' | ' | ' | 9.25 |
Renewal term rent per year | ' | ' | ' | 299 |
Renewal term rent per square foot | ' | ' | ' | 19.8 |
Qualified job wages | ' | ' | $63 | $70 |
Subsequent_Events_Details_Narr
Subsequent Events (Details Narrative) | 1 Months Ended |
Apr. 30, 2014 | |
Decimal | |
Subsequent Events Details Narrative | ' |
Rent for second amendment to lease agreement | 9.25 |
Additional option space for lease amendment | 17.63 |
Rent for option space under lease amendment | 19.8 |
Subsequent_Events_Details_Narr1
Subsequent Events (Details Narrative 1) (USD $) | Apr. 07, 2014 | Mar. 06, 2013 | Apr. 20, 2012 |
In Thousands, except Share data, unless otherwise specified | |||
Subsequent Events Details Narrative 1 | ' | ' | ' |
Non-transferable subscription rights for each share of common stock owned on the record date | 0.063921 | ' | ' |
Subscription right to purchase common stock price per share | $16.80 | ' | $1.03 |
Standby purchase agreement issuance of unsubscribed shares to related party | 2,678,517 | ' | ' |
Gross proceeds from completion of rights agreement | $45,000 | ' | ' |