Balance Sheet Account Detail | BALANCE SHEET ACCOUNT DETAIL The composition of selected financial statement captions that comprise the accompanying Consolidated Balance Sheets are summarized below: (a) Cash and Cash Equivalents and Marketable Securities As of December 31, 2019 and December 31, 2018 , our “cash and cash equivalents” were held with major financial institutions. As of December 31, 2019 , our “marketable securities” include our equity holdings in CASI Pharmaceuticals, Inc. (“CASI”), mutual funds, government-related debt securities, corporate debt securities, and bank certificates of deposits (“bank CDs”). We maintain cash balances with select financial institutions. The Federal Deposit Insurance Corporation (FDIC) and other third parties insure a fraction of these deposits. Accordingly, these cash deposits are not insured against the possibility of a substantial or complete loss of principal and are inherently subject to the credit risk of the corresponding financial institution. Our investment policy requires that purchased investments may only be in highly-rated and liquid financial instruments and limits our holdings of any single issuer (excluding any debt or equity securities received from our strategic partners in connection with an out-license arrangement, as discussed in Note 8 ). The carrying amount of our equity securities, money market funds, and Bank CDs approximates their fair value (utilizing “ Level 1” or “ Level 2” inputs - see Note 2(xi) ) because of our ability to immediately convert these instruments into cash with minimal expected change in value. As of December 31, 2019 , our held securities that remain in an unrealized loss position for less than one year were insignificant and are presented in the table below. The following is a summary of our presented composition of “cash and cash equivalents” and “marketable securities”: Historical or Amortized Cost Foreign Currency Translation Unrealized Unrealized Losses Fair Value Cash and Cash Marketable Securities December 31, 2019 Equity securities* (see Note 8 ) $ 6,310 $ (2,477 ) $ 27,214 $ — $ 31,047 $ — $ 31,047 Money market funds 54,199 — — — 54,199 54,199 — Government-related debt securities** 62,617 — 19 (10 ) 62,626 — 62,626 Corporate debt securities** 58,235 — 38 (25 ) 58,248 5,000 53,248 Bank deposits 5,219 — — — 5,219 5,219 — Mutual funds 4,375 — 783 — 5,158 — 5,158 Bank CDs 7,354 — 22 — 7,376 — 7,376 Total cash and cash equivalents and marketable securities $ 198,309 $ (2,477 ) $ 28,076 $ (35 ) $ 223,873 $ 64,418 $ 159,455 December 31, 2018 Equity securities* $ 8,710 $ (2,168 ) $ 39,880 $ — $ 46,422 $ — $ 46,422 Money market funds 142,745 — — — 142,745 142,745 — Bank deposits 14,735 — — — 14,735 14,735 — Bank CDs 86 — — — 86 — 86 Total cash and cash equivalents and marketable securities $ 166,276 $ (2,168 ) $ 39,880 $ — $ 203,988 $ 157,480 $ 46,508 * Beginning January 1, 2018, under the new requirements of ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities , the unrealized gains (losses) on our CASI equity securities are recognized as an increase (decrease) to “other (expense) income, net” on the Consolidated Statements of Operations (rather than through “other comprehensive loss” on the Consolidated Statements of Comprehensive Loss). Our adoption of ASU 2016-01 on January 1, 2018, resulted in a $17.2 million cumulative-effect adjustment, net of income tax, reported as a decrease to “accumulated other comprehensive loss” and a decrease to “accumulated deficit” on the accompanying Consolidated Balance Sheets. Our unrealized (losses) gains on these equity securities for the year ended December 31, 2019 and 2018 was $(12.7) million and 10.5 million , respectively, as reported in “other (expense) income, net” on the accompanying Consolidated Statements of Operations. ** Beginning in the second quarter of 2019, we purchased certain government-related and corporate debt securities. We have classified these as “available-for-sale” since we may redeem or sell these investments before their stated maturity to fund our operations. Under the requirements of ASC 320, Investments - Debt and Equity Securities: (i) we recorded these securities at initial “book value” and then amortize, through maturity, the determined “discount” or “premium” within “interest income” on the accompanying Consolidated Statements of Operations, and (ii) we recognize the “unrealized gains (loss)” of these securities (i.e., fair value versus amortized book value) as a separate component of “other comprehensive loss” on the accompanying Consolidated Statements of Comprehensive Loss for the year ended December 31, 2019 . (b) Property and Equipment, net of Accumulated Depreciation “Property and equipment, net of accumulated depreciation” consists of the following: December 31, 2019 2018 Manufacturing equipment* $ 10,355 $ — Computers hardware and software 3,606 3,079 Laboratory equipment 36 635 Office furniture 248 212 Leasehold improvements 3,374 2,957 Property and equipment, at cost 17,619 6,883 (Less): Accumulated depreciation (6,012 ) (6,498 ) Property and equipment, net of accumulated depreciation $ 11,607 $ 385 * This account is comprised of our owned ROLONTIS production equipment on location at our contract manufacturer. This equipment has alternative future use for the general production of various biologic agents. Accordingly, we have capitalized these purchases, rather than recording it as “research and development” expense, despite its current designation for the manufacture of pre-FDA approved product. The majority of this manufacturing equipment was not in use and therefore not being depreciated as of December 31, 2019. Depreciation expense (included within “total operating costs and expenses” in the accompanying Consolidated Statements of Operations) for the years ended December 31, 2019 , 2018 , and 2017 was $0.4 million , $0.2 million , and $0.3 million , respectively. (c) Accounts receivable, net of Allowance for Doubtful Accounts “Accounts receivable, net of allowance for doubtful accounts” consists of trade receivables from our customers. We are exposed to credit risk associated with trade receivables that result from these product sales. We do not require collateral or deposits from our customers due to our assessment of their creditworthiness and our long-standing relationship with them. We maintain reserves for potential bad debt, though credit losses have historically been nominal and within management’s expectations. A summary of our customers that represent 10% or more of our accounts receivables as of December 31, 2019 and 2018 , are as follows: December 31, 2019 2018 McKesson Corporation and its affiliates $ 9 2.0 % $ 7,615 25.5 % AmerisourceBergen Corporation, and its affiliates — — % 10,448 35.0 % Cardinal Health, Inc. and its affiliates — — % 8,228 27.5 % All other customers 432 98.0 % 3,582 12.0 % Accounts receivable, net $ 441 100.0 % $ 29,873 100.0 % (d) Prepaid Expenses and Other Assets “Prepaid expenses and other assets” consists of the following: December 31, 2019 2018 Vendor deposits $ 8,740 $ 6,792 Prepaid insurance 1,408 782 Prepaid expenses and other assets $ 10,148 $ 7,574 (e) Other Receivables “Other receivables” consists of the following: December 31, 2019 2018 CASI other receivables $ 2,393 $ — Other miscellaneous receivables (including Medicaid rebate credits and royalty receivables from licensees) 1,490 1,189 Insurance receivable* 4,015 206 Income tax receivable - current portion 973 643 Interest receivable from marketable securities (see Note 3(a) ) 561 — Reimbursements due from development partners for incurred research and development expenses 126 135 Secured promissory note (see Note 8 ) — 1,525 Other receivables $ 9,558 $ 3,698 * This insurance receivable balance represents our incurred legal fees and pending and completed settlements that are expected to be reimbursed by our insurance carriers. (f) Other Assets “Other assets” consists of the following: December 31, 2019 2018 Key employee life insurance – cash surrender value (associated with our deferred compensation plan - see Note 7 $ 3,547 $ 6,274 Research & development supplies and other 119 246 Income tax receivable - non-current portion* 334 668 Other assets $ 4,000 $ 7,188 * This value represents the non-current portion of refundable alternative minimum tax payments that are expected to be received over the next few years (see Note 11 ). (g) Facility and Equipment Under Lease “Facility and equipment under lease” consists of the following : December 31, 2019 December 31, 2018 Office and research facilities $ 3,391 $ — Office equipment 415 — Facility and equipment under lease $ 3,806 $ — (h) Accounts Payable and Other Accrued Liabilities “Accounts payable and other accrued liabilities” consists of the following: December 31, 2019 2018 Trade accounts payable and other $ 32,012 $ 44,919 Lease liability - current portion 1,683 — Accrued commercial/Medicaid rebates* 2,925 8,580 Accrued product royalty due to licensors 66 4,337 Allowance for product returns 4,714 5,171 Accrued data and distribution fees 768 3,248 Accrued GPO administrative fees 6 296 Accrued inventory management fees 364 388 Allowance for government chargebacks* 11,746 14,373 Accounts payable and other accrued liabilities $ 54,284 $ 81,312 * The values in 2018 have been restated for certain immaterial corrections related to “Accrued commercial/Medicaid rebates” and “Allowance for government chargebacks.” (see Note 15 ). Amounts presented within “accounts payable and other accrued liabilities” in the accompanying Consolidated Balance Sheets for GTN estimates (see Note 2(i) ) were as follows: Description Commercial/Medicaid Rebates and Government Chargebacks* Distribution, Product Return Allowances Balance as of December 31, 2017 $ 21,480 $ 5,727 $ 4,045 Add: GTN accruals recorded for product sales 69,704 13,962 1,700 (Less): Payments made and credits against GTN accruals (68,232 ) (15,757 ) (574 ) Balance as of December 31, 2018 22,952 3,932 5,171 Add: GTN accruals recorded for product sales 7,702 1,209 167 (Less): Payments made and credits against GTN accruals (15,983 ) (4,003 ) (624 ) Balance as of December 31, 2019 $ 14,671 $ 1,138 $ 4,714 * The values in 2018 and 2017 have been restated for certain immaterial corrections related to “Commercial/Medicaid Rebates and Government Chargebacks.” (see Note 15 ). (i) Contract Liabilities “Contract liabilities” consists of the following: December 31, 2019 2018 Customer deposit for EVOMELA supply in China territory (see Note 8 ) $ — $ 4,850 Contract liabilities $ — $ 4,850 (j) Other Long-Term Liabilities “Other long-term liabilities” consists of the following: December 31, 2019 2018 Deferred compensation liability ( Note 10(f) ) $ 8,597 $ 5,474 Lease liability - non-current portion ( Note 10(a) ) 2,372 — Other tax liabilities 101 176 Other long-term liabilities $ 11,070 $ 5,650 |