| Summary of Significant Accounting Policies | 3. Summary of Significant Accounting
Policies
Principles of Consolidation
The consolidated financial statements include the accounts of the
Company and its wholly-owned subsidiaries; Columbia Laboratories
Bermuda Ltd., Juniper Pharmaceuticals France SA, Juniper
Pharmaceuticals UK Ltd, and Juniper Pharma Services Ltd. All
significant intercompany balances and transactions have been
eliminated in consolidation.
Basis of Presentation
On July 26, 2013, Juniper’s Board of Directors set a
ratio of 1-for-8 for its previously approved reverse stock split
which took effect on August 9, 2013. The reverse stock split
was approved by Juniper’s shareholders at its annual meeting
of shareholders on May 1, 2013. All share and per share
amounts relating to the common stock, stock options and common
stock warrants included in the financial statements and
accompanying footnotes have been retroactively adjusted for all
periods presented to give effect to this reverse stock split,
including reclassifying an equal amount to the reduction in par
value of common stock to additional paid-in capital. The reverse
stock split did not result in a retroactive adjustment to the share
amounts for any of the classes of the Company’s preferred
stock.
Segments
The Company and its subsidiaries currently operate in two segments:
product and service. The product segment includes supply chain
management for CRINONE, the Company’s sole commercialized
product. The product segment also includes the royalty stream the
Company receives from Allergan for CRINONE sales in the United
States as well as the development of new product candidates. The
service segment includes pharmaceutical development, clinical trial
manufacturing, and advanced analytical and consulting services for
the Company’s customers as well as characterizing and
developing pharmaceutical product candidates for the
Company’s internal programs and managing the preclinical and
clinical manufacturing of COL-1077 and the Company’s IVR. In
September 2013, the Company acquired Juniper Pharma Services, a
U.K.-based provider of pharmaceutical development, clinical trial
manufacturing, and advanced analytical and consulting services to
the pharmaceutical industry. The Company has integrated its supply
chain management for its sole commercialized product, CRINONE into
those operations and have therefore sought to capture synergies by
transferring all operational activities related to its historic
business.
The Chief Executive Officer, who is the Company’s Chief
Operating Decision Maker (CODM), currently manages the business
based on revenue and gross profit and as such the Company has
concluded that it is two segments, which consists of product and
service. Segment information is consistent with the financial
information regularly reviewed by our CODM, who we have determined
to be the chief executive officer, for purposes of evaluating
performance, allocating resources, setting incentive compensation
targets, and planning and forecasting future periods.
Juniper’s CODM does not review our assets, operating expenses
or non-operating income and expenses by business segment at this
time.
Management Estimates
The preparation of financial statements in conformity with
accounting principles generally accepted in the U.S. requires
management to make estimates and assumptions that affect the
reported amounts of assets, liabilities, revenues and expenses and
related disclosures at the date of the financial statements during
the reporting period. Significant estimates are used for, but are
not limited to revenue recognition, sales return reserves,
allowance for doubtful accounts, inventory reserve, impairment
analysis of goodwill and intangibles including their useful lives,
research and development accruals, deferred tax assets, liabilities
and valuation allowances, common stock warrant valuations, and fair
value of stock options. On an ongoing basis, management evaluates
its estimates. Actual results could differ from those
estimates.
Foreign Currency
The assets and liabilities of the Company’s foreign
subsidiaries are translated into U.S. dollars at current exchange
rates and revenue and expense items are translated at average rates
of exchange prevailing during the period. The functional currency
of Juniper’s foreign subsidiaries is considered to be the
local currency for each entity and, accordingly, translation
adjustments for these subsidiaries are included in accumulated
other comprehensive income within stockholders’ equity.
Certain intercompany and third party foreign currency-denominated
transactions generated foreign currency re-measurement losses of
approximately $70,000, $33,000 and $47,000 during the years ended
December 31, 2015, 2014 and 2013, respectively, which are
included in other expense, net in the consolidated statements of
operations.
Cash Equivalents
The Company considers all investments purchased with an original
maturity of three months or less to be cash equivalents.
Fair Value of Financial Instruments
U.S. GAAP establishes a framework for measuring fair value under
generally accepted accounting principles and enhances disclosures
about fair value measurements. Fair value is defined as the amount
that would be received for an asset or paid to transfer a liability
(i.e., an exit price) in the principal or most advantageous market
for the asset or liability in an orderly transaction between market
participants on the measurement date. Valuation techniques used to
measure fair value maximize the use of observable inputs and
minimize the use of unobservable inputs. The standard describes the
following fair value hierarchy based on three levels of inputs, of
which the first two are considered observable and the last
unobservable, that may be used to measure fair value:
Level 1: Quoted prices in active markets for identical assets and
liabilities.
Level 2: Inputs other than Level 1 that are observable, either
directly or indirectly, such as quoted prices for similar assets or
liabilities; quoted prices in markets that are not active; or other
inputs that are observable or can be corroborated by observable
market data for substantially the full term of the assets or
liabilities.
Level 3: Unobservable inputs that are supported by little or no
market activity and that are significant to the fair value of the
assets or liabilities.
The fair value of cash and cash equivalents are classified as Level
1 at December 31, 2015 and 2014.
The estimated fair value of the common stock warrant liability
resulting from the October 2009 registered direct offering of
1,362,500 shares of the common stock and warrants to purchase
681,275 shares of common stock was $0.4 million as of
December 31, 2013. There was no value associated with the
common stock warrant liability as of December 31, 2015. There
was no value associated with the common stock warrant liability as
of December 31, 2014 as the Company neared the expiration of
these warrants in April 2015. These values were determined by using
the Black-Scholes option pricing model which is based on the
Company’s stock price at measurement date, exercise price of
this common stock warrant, risk-free rate and historical
volatility, and are classified as a Level 2 measurement. During the
years ended December 31, 2014 and 2013, the Company recorded
income of $0.4 million and $0.8 million, respectively, to adjust
the value of the common stock warrant liability to market. The fair
value of the common stock warrant liability as of December 31,
2015 was zero, as the warrants expired in April 2015. Therefore,
during the year ended December 31, 2015, no income or expense
was recorded.
2015 2014
Stock Price $
— $ 5.60
Exercise Price $
— $ 12.16
Risk free interest rate
— 0.030 %
Expected term
— 0.25 years
Dividend yield
—
—
Expected volatility
— 22.76 %
The fair value of accounts receivable and accounts payable
approximate their carrying amount. The Company’s long-term
debt is carried at amortized cost, which approximates fair value
based on current market pricing available to the Company for
similar debt instruments and is categorized as a Level 2
measurement.
Inventories
Inventories are stated at the lower of cost (first-in, first-out)
or market. Components of inventory cost include materials, labor
and manufacturing overhead. Inventories consist of the following
(in thousands):
December 31,
2015 2014
Raw materials $ 1,410 $ 761
Work in process 1,840 1,095
Finished goods 373 1,345
Total $ 3,623 $ 3,201
Reserves for excess and obsolete inventory were $0.3 million and
$36,000 at December 31, 2015 and 2014, respectively.
Juniper provides inventory allowances when conditions indicate that
the selling price could be less than cost due to physical
deterioration, usage, obsolescence, reductions in estimated future
demand and reductions in selling prices. Juniper balances the need
to maintain strategic inventory levels with the risk of
obsolescence due to changing technology and customer demand levels.
Unfavorable changes in market conditions may result in a need for
additional inventory reserves that could adversely impact
Juniper’s gross margins. Conversely, favorable changes in
demand could result in higher gross margins when the Company sells
products.
Accounts Receivable and Allowance for Doubtful
Accounts
Accounts receivable are reported at their outstanding unpaid
principal balances reduced by allowances for doubtful accounts. The
Company estimates doubtful accounts based on our historical bad
debts, factors related to specific customers’ ability to pay
and current economic trends. The Company writes off accounts
receivable against the allowance when a balance is determined to be
uncollectable.
Accounts receivable allowance activity consisted of the following
for the years ended December 31 (in thousands):
2015 2014 2013
Balance at beginning of year $ 358 $ 112 $ 100
Additions
— 246 12
Deductions (95 )
—
—
Balance at end of year $ 263 $ 358 $ 112
Juniper’s accounts receivable balance, net of allowance for
doubtful accounts, was $7.5 million as of December 31, 2015,
and $5.3 million as of December 31, 2014. Included in the
accounts receivable balance at December 31, 2015 and 2014 were
$1.9 million and $0.7 million of unbilled accounts receivable,
respectively. Juniper’s unbilled accounts receivable is
derived from services performed that have not been billed as of the
balance sheet date.
Property and Equipment
Property and equipment is stated at cost less accumulated
depreciation. Leasehold improvements are amortized over the lesser
of the useful life or the term of the leases. Depreciation is
computed on the straight-line basis over the estimated useful lives
of the respective assets, as follows:
Years
Machinery and equipment 3-10
Furniture and fixtures 3-5
Computer equipment and software 3-5
Buildings Up to 39
Land Indefinite
Costs of major additions and improvements are capitalized and
expenditures for maintenance and repairs that do not extend the
life of the assets are expensed. Upon sale or disposition of
property and equipment, the cost and related accumulated
depreciation are eliminated from the accounts and any resultant
gain or loss is credited or charged to operations.
Juniper continually evaluates whether events or circumstances have
occurred that indicate that the remaining useful life of its
long-lived assets may warrant revision or that the carrying value
of these assets may be impaired. Juniper evaluates the
realizability of its long-lived assets based on profitability and
cash flow expectations for the related asset. Any write-downs are
treated as permanent reductions in the carrying amount of the
assets. Based on this evaluation, Juniper believes, as of each
balance sheet date presented, none of Juniper’s long-lived
assets were impaired.
Concentration of Risk
The Company has two major customers – Allergan and Merck
KGaA. See Note 13 of our consolidated financial statements for
customer and product concentrations.
The Company depends on one supplier for a key excipient
(ingredient) used in its products and one supplier for one of the
active pharmaceutical ingredients.
Goodwill
Goodwill represents the excess of the purchase price over the fair
value of assets acquired and liabilities assumed in a business
combination. The Company does not amortize its goodwill, but
instead tests for impairment annually in the fourth quarter and
more frequently whenever events or changes in circumstances
indicate that the fair value of the asset may be less than its
carrying value of the asset.
In accordance with Accounting Standards Codification, or
ASC 350, Goodwill and Other Intangibles
(“ASC 350”), we use the two step approach for each
reporting unit. The first step compares the carrying amount of the
reporting unit to its estimated fair value (Step 1) utilizing
a discounted cash flow analysis based on the present value of
estimated future cash flows to be generated using a risk-adjusted
discount rate. To the extent that the carrying value of the
reporting unit exceeds its estimated fair value, a second step is
performed, wherein the reporting unit’s carrying value is
compared to the implied fair value (Step 2). To the extent
that the carrying value of goodwill exceeds the implied fair value
of goodwill, impairment exists and must be recognized.
We have concluded that our business represents two reporting units
for goodwill impairment testing, which are product and service. Our
goodwill is assigned to our service reporting unit. We have
performed our annual test for impairment as of October 1, 2015
and have determined that our goodwill is not impaired as of
December 31, 2015.
Intangible Assets
The Company capitalizes and includes in intangible assets the costs
of trademark, developed technology and customer relationships.
Intangible assets are recorded at fair value at the time of their
acquisition and stated net of accumulated amortization. The Company
amortizes its intangible assets that have finite lives using either
the straight-line or accelerated method, based on the useful life
of the asset over which it is expected to be consumed utilizing
expected undiscounted future cash flows. Amortization is recorded
over the estimated useful lives ranging from 3 to 7 years. The
Company evaluates the realizability of its definite lived
intangible assets whenever events or changes in circumstances or
business conditions indicate that the carrying value of these
assets may not be recoverable based on expectations of future
undiscounted cash flows for each asset group. If the carrying value
of an asset or asset group exceeds its undiscounted cash flows, the
Company estimates the fair value of the assets, generally utilizing
a discounted cash flow analysis based on the present value of
estimated future cash flows to be generated by the assets using a
risk-adjusted discount rate. To estimate the fair value of the
assets, the Company uses market participant assumptions pursuant to
ASC 820, Fair Value Measurements
Income Taxes
Deferred tax assets or liabilities are determined based on timing
differences between when income and expense items are recognized
for financial statement purposes versus when they’re
recognized for tax purposes, as measured by enacted tax rates
expected to apply to taxable income in the fiscal years in which
those temporary differences are expected to be settled. A valuation
allowance is provided against deferred tax assets in circumstances
where management believes it is more likely than not that all or a
portion of the assets will not be realized. The Company has
provided a full valuation allowance against its net domestic
deferred tax assets as of December 31, 2015 and 2014. The
Company has provided a full valuation allowance against its net
foreign deferred tax assets as of December 31, 2015 and
2014.
Accumulated Other Comprehensive (Loss) Income
Changes to accumulated other comprehensive income during the year
ended December 31, 2015 were as follows (in thousands):
Translation
Balance – December 31, 2014 $ (63 )
Current period other comprehensive income (1,099 )
Balance – December 31, 2015 $ (1,162 )
Revenue Recognition and Sales Returns Reserves (As
Restated)
Revenues include product revenues, which primarily consist of sales
of CRINONE to Merck KGaA, royalty revenues, which primarily consist
of royalty revenues from Allergan on sales of CRINONE, service
revenues, which primarily consist of analytical and consulting
services, pharmaceutical development and clinical trial
manufacturing services and other revenues.
Product Revenue
Revenues from the sale of products are recognized when all of the
following criteria are met: persuasive evidence of a sales
arrangement exists; delivery has occurred or services have been
rendered; the price is fixed or determinable; and collectibility is
reasonably assured. Selling prices to Merck KGaA for CRINONE
(progesterone gel) are determined on an annual and
country-by-country basis and are the greater of (i) a
percentage of Merck KGaA’s net estimated selling price, or
(ii) Juniper’s direct manufacturing cost plus 20% and
are invoiced to Merck KGaA upon shipment. Juniper records revenue
at the minimum selling price, which is Juniper’s direct
manufacturing cost plus 20%, at the time of shipment to Merck KGaA
as that amount is considered fixed or determinable. The Company
records deferred revenue related to amounts invoiced above the
minimum selling price. Upon receiving sell through information from
Merck KGaA on a quarterly and country-by-country basis, the Company
records an adjustment to increase revenue to reflect the difference
between Merck KGaA’s actual net selling price and the minimum
price recorded at the time of shipment. Any difference between the
amounts invoiced at Merck KGaA’s estimated net selling price
and Merck KGaA’s actual net selling price are billed or
credited to Merck KGaA in the quarter the product is sold through
by Merck KGaA. Accordingly, product revenue in each period includes
both an amount for product shipped to Merck KGaA in the current
period recognized at the minimum purchase price as well as an
amount for product shipped by Merck KGaA to its customers in the
current period equal to the difference between Merck KGaA’s
actual net selling price and the minimum purchase price. Merck KGaA
is also entitled to a volume discount based on annual
purchases. The Company records reserves against revenue on a
quarterly basis to reflect the volume discount expected to be
earned by Merck KGaA during the year.
In April 2013, Juniper’s license and supply agreement with
Merck KGaA for the sale of CRINONE outside the United States was
renewed for an additional five year term, extending the expiration
date to May 19, 2020.
Service Revenue
The professional service contracts that Juniper enters into and
operates under specifies whether the engagement will be billed on a
time-and-materials or a fixed-price basis. These engagements
generally last three to six months, although some of
Juniper’s engagements can be much longer in duration.
Juniper recognizes substantially all of the Company’s
professional services revenues under written contracts when the fee
is fixed or determinable, as the services are provided, and only in
those situations where collection from the client is reasonably
assured. In certain cases Juniper bills clients prior to work being
performed, which requires Juniper to defer revenue in accordance
with U.S. GAAP. In these cases, these amounts are fully reserved
until all criteria for recognizing revenue are met.
Revenues from time-and-materials service contracts are recognized
as the services are performed based upon hours worked and
contractually agreed-upon hourly rates, as well as indirect fees
based upon hours worked.
Service revenues from a majority of Juniper’s fixed-price
engagements are recognized on a proportional performance method
based on the ratio of costs incurred, substantially all of which
are labor-related, to the total estimated project costs. In
general, project costs are classified in costs of services and are
based on the direct salary of the employees on the engagement plus
all direct expenses incurred to complete the engagement, including
any amounts billed to Juniper by its vendors. The proportional
performance method is used for fixed-price contracts because
reasonably dependable estimates of the revenues and costs
applicable to various stages of a contract can be made, based on
historical experience and the terms set forth in the contract, and
are indicative of the level of benefit provided to Juniper’s
clients. In the event of a termination, fixed-price contracts
generally provide for payment for services rendered up to the
termination date.
Service revenues also include reimbursements, which include
reimbursement for travel and other out-of-pocket expenses, outside
consultants, and other reimbursable expenses.
Royalty revenues, based on sales by licensees, are recorded as
revenues when those sales are made by the licensees.
The Company maintains accounts receivable allowances for estimated
losses resulting from disputed amounts or the inability of
Juniper’s customers to make required payments. Juniper
identifies specific collection issues and establishes an accounts
receivable allowance based on its historical collection experience,
review of client accounts, current trends, and credit policy. If
the financial condition of Juniper’s customers were to
deteriorate or disputes were to arise regarding the services
provided, resulting in an impairment of their ability or intent to
make payment, additional allowances may be required. A failure to
estimate accurately the accounts receivable allowances and ensure
that payments are received on a timely basis could have a material
adverse effect on Juniper’s business, financial condition,
and results of operations.
Juniper collects value added tax from its customers for revenues
generated out of the United Kingdom for which the customer is not
tax exempt and remits such taxes to the appropriate governmental
authorities. Juniper presents its value added tax on a net basis;
therefore, these taxes are excluded from revenues.
Up to July 2013, Juniper was responsible for sales returns for
CRINONE and PROCHIEVE products sold prior to the Allergan
transaction on July 2, 2010, and for STRIANT products sold prior to
the sale of the product to Auxilium in April 2011. The Company is
not and were not responsible for returns for international sales.
The Company’s policy for sales to the trade made prior to the
Allergan and Auxilium transactions allows product to be returned
for a period that began three months prior to the product
expiration date and ended twelve months after the product
expiration date. Provisions for returns on sales to wholesalers,
distributors and retail chain stores were estimated based on a
percentage of sales, using such factors as historical sales
information, distributor inventory levels and product prescription
data, and were recorded as a reduction to sales in the same period
as the related sales were recognized. Juniper assumed that the
Company’s customers were using the first-in, first-out method
in filling orders so that the oldest saleable product was used
first. Juniper recorded a provision for returns on a quarterly
basis using an estimated rate and adjusted the provision when
necessary. As of December 31, 2014 and 2015, there is no sales
returns reserve as the return rights obligation has elapsed for all
products for which Juniper provided a right of return.
Deferred Revenue
The Company’s deferred revenue balance consists of the
following at December 31, 2015 and 2014 (in thousands):
As of December 31,
2015 2014
(As Restated)
(As Restated)
Product revenues $ 2,831 $ 3,560
Service revenues 566 355
Regional Growth Fund 1,480 2,112
Total $ 4,877 $ 6,027
Amounts invoiced but not yet earned on product revenues are
recorded as deferred revenue until the Company receives sell
through information from Merck KGaA indicating the product has been
sold through or otherwise disposed of. Amounts invoiced but not yet
earned on service revenue are deferred until such time as
performance is rendered or the obligation to perform the service is
completed for service revenues. Amounts deferred for product
revenue are not settled until sell through information is received
from Merck KGaA.
As part of the acquisition of Juniper Pharma Services, Juniper
assumed a $2.5 million obligation under a grant arrangement
with the Regional Growth Fund on behalf of the Secretary of State
for Business, Innovation, and Skills in the United Kingdom. Juniper
Pharma Services used this grant to fund the building of its second
facility, which includes analytical labs, office space, and a
manufacturing facility. As a part of the arrangement, Juniper
Pharma Services is required to create and maintain certain
full-time equivalent personnel levels through October 2017. As of
December 31, 2015, the Company is in compliance with the
covenants of the arrangement. The income from the Regional Growth
Fund will be recognized in the other income line of the
consolidated statement of operations on a decelerated basis through
September 30, 2017.
Research and Development Costs
Research and development consist of consultants, material costs,
salaries and other personnel related expenses including stock-based
compensation of employees and non-employees primarily engaged in
research and development activities and materials used and other
overhead expenses incurred. All research and development costs are
expensed as incurred. Research and development costs that are paid
in advance of performance are capitalized as prepaid expenses until
incurred.
Clinical trial expenses include expenses associated with clinical
research organizations. The invoicing from clinical research
organizations for services rendered can lag several months. Juniper
accrues the cost of services rendered in connection with clinical
research organizations activities based on our estimate of costs
incurred. Juniper maintains regular communication with its clinical
research organizations to assess the reasonableness of its
estimates. Differences between actual expenses and estimated
expenses recorded have not been material and are adjusted for in
the period in which they become known.
Juniper entered into an agreement with Allergan to collaborate on
the development of progesterone products, specifically the PREGNANT
study. The PREGNANT study expenses consisted of fees for
preparation, filing and approval process of the related drug
application. Under the terms of the agreement, Juniper performed
certain research and development activities, the cost of which was
partially funded by Allergan.
In 2015, 2014, and 2013, there were no research and development
expenses or reimbursements from Allergan.
In 2014, the Company completed its commercial and intellectual
property assessment and clinical and regulatory diligence on
COL-1077, extended-release lidocaine vaginal gel in addition to
performing initial assessments of other potential proprietary
product candidates. The target indication for COL-1077 is an acute
use anesthetic for minimally invasive gynecological procedures. The
Company is leveraging the technical capabilities of its Nottingham
site to advance the COL-1077 development program.
In March 2015, the Company entered into an exclusive patent license
agreement with The General Hospital Corporation, d/b/a
Massachusetts General Hospital, pursuant to which Juniper has
licensed the exclusive worldwide rights to Massachusetts General
Hospital patent rights in a novel intra-vaginal ring (IVR)
technology for delivery of one or more pharmaceutical dosages and
release rates in a single segmented ring. The Company is leveraging
the technology to advance JNP-0101, JNP-0201 and JNP-0301.
Stock-based compensation
Juniper follows the fair value recognition provisions of ASC
718, Stock
Compensation Topic 505-50, Equity – Equity Based
Payments to Nonemployees
Juniper recorded stock-based compensation expense of $1.8 million,
$0.6 million and $0.5 million for the years ended December 31,
2015, 2014 and 2013, respectively.
Total stock-based compensation expense was recorded to cost of
revenues, and operating expenses based upon the functional
responsibilities of the individuals holding the respective options
as follows (in thousands):
Years Ended December 31,
2015 2014 2013
Cost of revenues $ 79 $ 44 $ 14
Sales and marketing 38 28
—
Research and development 1,126 2
—
General and administrative 507 533 461
Total employee stock-based compensation $ 1,750 $ 607 $ 475
As of December 31, 2015, total unamortized share-based
compensation cost related to non-vested stock options was $2.6
million, which is expected to be recognized on a straight-line
basis over a weighted average period of 2.6 years.
Cash received from option exercises was $0.1 million, $33,000 and
$11,000 during the years ending December 31, 2015, 2014 and
2013, respectively.
Juniper granted 387,000, 312,000 and 88,749 stock options to
employees during the years ended December 31, 2015, 2014 and
2013, respectively.
The Company records stock-based compensation expense for stock
options granted to non-employees based on the fair value of the
stock options, which is re-measured over the graded vesting term
resulting in periodic adjustments to stock-based compensation
expense. During 2015, 243,000 stock options were granted by the
Company to non-employees. During the twelve months ended
December 31, 2015, the Company recorded stock-based
compensation expense of $1.1 million related to these awards. The
stock-based compensation expense recorded for non-employees is
primarily reflected in the research and development line of the
statement of operations. The 240,000 options reflected in the
research and development line will be re-measured over a 1.25 year
period from the date of grant versus the remaining 3,000 options
will be re-measured over a 3.75 year period from the date of grant.
There was no stock-based compensation expense recorded for
consultants in years ended December 31, 2014 and 2013,
respectively. No tax benefit has been recognized due to the net tax
losses during the periods presented.
The Company uses the Black-Scholes option pricing model to
determine the estimated fair value for stock-based awards.
Option-pricing models require the input of various subjective
assumptions, including the option’s expected life and the
price volatility of the underlying stock. Accordingly the
weighted-average fair value of the options granted to employees
during the years ended December 31, 2015, 2014 and 2013 was
$4.38, $4.27 and $3.52, respectively based on the following
assumptions:
Years Ended
December 31,
2015 2014 2013
Risk free interest rate 0.87%-1.20% 0.93%-1.64% 0.71%-0.76%
Expected term
4.56-4.75 years
4.75 years
4.75 years
Dividend yield
—
—
—
Expected volatility 76.86%-83.09% 78.27%-81.36% 96.52%-97.02%
The weighted-average fair value of the options granted to
non-employees during the years ended December 31, 2015, 2014
and 2013 was $4.52, $0 and $0, respectively based on the following
assumptions:
Years Ended
December 31,
2015 2014 2013
Risk free interest rate 1.47%-1.54%
—
—
Expected term
7 years
—
—
Dividend yield
—
—
—
Expected volatility 82.88%-83.09%
—
—
Juniper’s estimated expected stock price volatility is based
on its own historical volatility. Juniper’s expected term of
options granted in the years ended December 31, 2015, 2014 and
2013 was derived from the simplified method for employee grants and
the contractual term is used for non-employee grants. The risk-free
rate for the expected term of the option is based on the U.S.
Treasury yield curve in effect at the time of grant.
Net (Loss) Income Per Common Share
The calculation of basic and diluted income per common and common
equivalent share is as follows (in thousands except for per share
data):
Years Ended
December 31,
2015 2014 2013
(As Restated)
(As Restated)
(As Restated)
Basic net (loss) income per common share
Net (loss) income $ (1,496 ) $ 4,656 $ 4,741
Less: Preferred stock dividends (28 ) (28 ) (28 )
Net (loss) income applicable to common stock $ (1,524 ) $ 4,628 $ 4,713
Basic weighted average number of common shares outstanding 10,774 10,992 11,259
Basic net (loss) income per common share $ (0.14 ) $ 0.42 $ 0.42
Diluted net (loss) income per common share
Net (loss) income applicable to common stock $ (1,524 ) $ 4,628 $ 4,713
Add: Preferred stock dividends
— 28 28
Less: Fair value of stock warrants for dilutive warrants
— (379 ) (794 )
Net (loss) income applicable to dilutive common st |
