Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 23, 2020 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001384101 | |
Entity Registrant Name | VERACYTE, INC. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36156 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-5455398 | |
Entity Address, Address Line One | 6000 Shoreline Court, Suite 300 | |
Entity Address, City or Town | South San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94080 | |
City Area Code | 650 | |
Local Phone Number | 243-6300 | |
Title of 12(b) Security | Common Stock, par value, $0.001 per share | |
Trading Symbol | VCYT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 50,582,246 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 147,450 | $ 159,317 |
Accounts receivable | 15,306 | 19,329 |
Supplies | 7,041 | 6,806 |
Prepaid expenses and other current assets | 2,891 | 2,235 |
Total current assets | 172,688 | 187,687 |
Property and equipment, net | 8,640 | 8,933 |
Right-of-use assets - operating lease | 8,339 | 8,808 |
Finite-lived intangible assets, net | 62,471 | 65,019 |
Goodwill | 2,725 | 2,725 |
Restricted cash | 603 | 603 |
Other assets | 1,271 | 1,437 |
Total assets | 256,737 | 275,212 |
Current liabilities: | ||
Accounts payable | 2,224 | 2,328 |
Accrued liabilities | 9,386 | 13,734 |
Current portion of operating lease liability | 1,495 | 1,407 |
Total current liabilities | 13,105 | 17,469 |
Long-term debt | 801 | 694 |
Acquisition-related contingent consideration | 5,948 | 6,088 |
Operating lease liability, net of current portion | 10,736 | 11,506 |
Total liabilities | 30,590 | 35,757 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized, no shares issued and outstanding as of June 30, 2020 and December 31, 2019 | 0 | 0 |
Common stock, $0.001 par value; 125,000,000 shares authorized, 50,446,104 and 49,625,341 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively | 50 | 50 |
Additional paid-in capital | 495,523 | 486,090 |
Accumulated deficit | (269,426) | (246,685) |
Total stockholders’ equity | 226,147 | 239,455 |
Total liabilities and stockholders’ equity | $ 256,737 | $ 275,212 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares issued (in shares) | 50,446,104 | 49,625,341 |
Common stock, shares outstanding (in shares) | 50,446,104 | 49,625,341 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue: | ||||
Total Revenue | $ 20,704 | $ 30,136 | $ 51,826 | $ 59,665 |
Operating expenses: | ||||
Research and development | 4,169 | 3,330 | 8,576 | 6,765 |
Selling and marketing | 10,701 | 13,943 | 28,285 | 26,420 |
General and administrative | 7,957 | 6,920 | 15,770 | 13,824 |
Intangible asset amortization | 1,273 | 266 | 2,548 | 533 |
Total operating expenses | 31,755 | 33,236 | 75,077 | 64,832 |
Loss from operations | (11,051) | (3,100) | (23,251) | (5,167) |
Interest expense | (65) | (235) | (120) | (538) |
Other income, net | 91 | 841 | 630 | 1,294 |
Net loss and comprehensive loss | $ (11,025) | $ (2,494) | $ (22,741) | $ (4,411) |
Net loss per common share, basic and diluted (in dollars per share) | $ (0.22) | $ (0.05) | $ (0.45) | $ (0.10) |
Shares used to compute net loss per common share, basic and diluted (in shares) | 50,212,123 | 45,586,081 | 50,002,377 | 43,389,540 |
Testing [Member] | ||||
Revenue: | ||||
Total Revenue | $ 15,212 | $ 26,686 | $ 42,203 | $ 52,075 |
Operating expenses: | ||||
Cost of revenue | 6,471 | 8,777 | 17,039 | 17,290 |
Product [Member] | ||||
Revenue: | ||||
Total Revenue | 1,713 | 0 | 5,122 | 0 |
Operating expenses: | ||||
Cost of revenue | 932 | 0 | 2,491 | 0 |
Biopharmaceutical [Member] | ||||
Revenue: | ||||
Total Revenue | 3,779 | 1,450 | 4,501 | 5,590 |
Operating expenses: | ||||
Cost of revenue | $ 252 | $ 0 | $ 368 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2018 | 40,863 | |||
Balance at Dec. 31, 2018 | $ 41 | $ 313,800 | $ (234,086) | $ 79,755 |
Issuance of common stock upon exercise of stock options and vesting of restricted stock units (in shares) | 987 | |||
Issuance of common stock upon exercise of stock options and vesting of restricted stock units | $ 1 | 6,907 | 0 | 6,908 |
Tax portion of vested restricted stock units | 0 | (676) | 0 | (676) |
Stock-based compensation expense (employee) | 0 | 3,932 | 0 | 3,932 |
Stock-based compensation expense (non-employee) | 0 | 75 | 0 | 75 |
Stock-based compensation expense (ESPP) | 0 | 318 | 0 | 318 |
Net loss and comprehensive loss | $ 0 | 0 | (4,411) | (4,411) |
Issuance of common stock under employee stock purchase plan (ESPP) (in shares) | 80 | |||
Issuance of common stock under employee stock purchase plan (ESPP) | $ 0 | 491 | 0 | 491 |
Sale of common stock in a public offering, net of issuance costs of $9,208 (in shares) | 6,325 | |||
Sale of common stock in a public offering, net of issuance costs of $9,208 | $ 6 | 137,842 | 0 | 137,848 |
Balance (in shares) at Jun. 30, 2019 | 48,255 | |||
Balance at Jun. 30, 2019 | $ 48 | 462,689 | (238,497) | 224,240 |
Balance (in shares) at Mar. 31, 2019 | 41,509 | |||
Balance at Mar. 31, 2019 | $ 42 | 319,733 | (236,003) | 83,772 |
Issuance of common stock upon exercise of stock options and vesting of restricted stock units (in shares) | 421 | |||
Issuance of common stock upon exercise of stock options and vesting of restricted stock units | $ 0 | 2,668 | 0 | 2,668 |
Tax portion of vested restricted stock units | 0 | (120) | 0 | (120) |
Stock-based compensation expense (employee) | 0 | 2,334 | 0 | 2,334 |
Stock-based compensation expense (non-employee) | 0 | 55 | 0 | 55 |
Stock-based compensation expense (ESPP) | 0 | 177 | 0 | 177 |
Net loss and comprehensive loss | $ 0 | 0 | (2,494) | (2,494) |
Sale of common stock in a public offering, net of issuance costs of $9,208 (in shares) | 6,325 | |||
Sale of common stock in a public offering, net of issuance costs of $9,208 | $ 6 | 137,842 | 0 | 137,848 |
Balance (in shares) at Jun. 30, 2019 | 48,255 | |||
Balance at Jun. 30, 2019 | $ 48 | 462,689 | (238,497) | 224,240 |
Balance (in shares) at Dec. 31, 2019 | 49,625 | |||
Balance at Dec. 31, 2019 | $ 50 | 486,090 | (246,685) | 239,455 |
Issuance of common stock upon exercise of stock options and vesting of restricted stock units (in shares) | 760 | |||
Issuance of common stock upon exercise of stock options and vesting of restricted stock units | $ 0 | 4,745 | 0 | 4,745 |
Tax portion of vested restricted stock units | 0 | (2,678) | 0 | (2,678) |
Stock-based compensation expense (employee) | 0 | 5,560 | 0 | 5,560 |
Stock-based compensation expense (non-employee) | 0 | 20 | 0 | 20 |
Stock-based compensation expense (ESPP) | 0 | 685 | 0 | 685 |
Net loss and comprehensive loss | $ 0 | 0 | (22,741) | (22,741) |
Issuance of common stock under employee stock purchase plan (ESPP) (in shares) | 61 | |||
Issuance of common stock under employee stock purchase plan (ESPP) | $ 0 | 1,101 | 0 | 1,101 |
Balance (in shares) at Jun. 30, 2020 | 50,446 | |||
Balance at Jun. 30, 2020 | $ 50 | 495,523 | (269,426) | 226,147 |
Balance (in shares) at Mar. 31, 2020 | 50,000 | |||
Balance at Mar. 31, 2020 | $ 50 | 488,773 | (258,401) | 230,422 |
Issuance of common stock upon exercise of stock options and vesting of restricted stock units (in shares) | 446 | |||
Issuance of common stock upon exercise of stock options and vesting of restricted stock units | $ 0 | 3,764 | 0 | 3,764 |
Tax portion of vested restricted stock units | 0 | (374) | 0 | (374) |
Stock-based compensation expense (employee) | 0 | 3,009 | 0 | 3,009 |
Stock-based compensation expense (non-employee) | 0 | 20 | 0 | 20 |
Stock-based compensation expense (ESPP) | 0 | 331 | 0 | 331 |
Net loss and comprehensive loss | $ 0 | 0 | (11,025) | (11,025) |
Balance (in shares) at Jun. 30, 2020 | 50,446 | |||
Balance at Jun. 30, 2020 | $ 50 | $ 495,523 | $ (269,426) | $ 226,147 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Additional Paid-in Capital [Member] | ||
Sale of common stock, issuance costs | $ 9,208 | $ 9,208 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities | ||
Net loss | $ (22,741) | $ (4,411) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 3,929 | 1,869 |
Gain on disposal of property and equipment | 0 | (17) |
Stock-based compensation | 6,265 | 4,325 |
Amortization of debt issuance costs | 0 | 83 |
Interest on end-of-term debt obligation | 107 | 120 |
Write-down of excess supplies | 1,088 | 0 |
Noncash lease expense | 469 | 431 |
Revaluation of acquisition-related contingent consideration | (140) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,023 | (6,458) |
Supplies | (1,323) | (1,702) |
Prepaid expenses and other current assets | (664) | (192) |
Operating lease liability | (682) | (604) |
Other assets | 166 | 25 |
Accounts payable | 122 | 1,746 |
Accrued liabilities | (4,343) | 1,319 |
Net cash used in operating activities | (13,724) | (3,466) |
Investing activities | ||
Purchases of property and equipment | (1,314) | (1,424) |
Proceeds from disposal of property and equipment | 0 | 17 |
Net cash used in investing activities | (1,314) | (1,407) |
Financing activities | ||
Proceeds from the issuance of common stock in a public offering, net of issuance costs | 0 | 137,848 |
Payment of long-term debt | 0 | (24,900) |
Payment of finance lease liability | 0 | (152) |
Payment of taxes on vested restricted stock units | (2,678) | (676) |
Proceeds from the exercise of common stock options and employee stock purchases | 5,849 | 7,405 |
Net cash provided by financing activities | 3,171 | 119,525 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (11,867) | 114,652 |
Cash, cash equivalents and restricted cash at beginning of period | 159,920 | 78,598 |
Cash, cash equivalents and restricted cash at end of period | 148,053 | 193,250 |
Supplementary cash flow information: | ||
Purchases of property and equipment included in accounts payable and accrued liability | 0 | 72 |
Interest paid on debt | 3 | 319 |
Cash and cash equivalents | 147,450 | |
Restricted cash | 603 | |
Cash, cash equivalents and restricted cash at end of period | $ 148,053 | $ 193,250 |
Note 1 - Organization, Descript
Note 1 - Organization, Description of Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 1. Veracyte, Inc., or Veracyte, or the Company, is a global genomic diagnostics company that improves patient care by providing answers to clinical questions to inform diagnosis and treatment decisions throughout the patient journey in cancer and other diseases. The Company’s growing menu of genomic tests leverage advances in genomic science and technology to change care for patients, enabling them to avoid risky, costly procedures and quicken time to appropriate treatment. With Veracyte’s exclusive global access to a best-in-class diagnostics instrument platform, the Company is positioned to deliver its tests to patients worldwide through laboratories and hospitals that can perform the tests locally. Veracyte was incorporated in the state of Delaware on August 15, 2006 2008. March 4, 2008, one The Company performs its genomic tests for thyroid cancer, lung cancer and idiopathic pulmonary fibrosis, or IPF, in its CLIA-certified laboratory in South San Francisco, California. In December 2019, The Company offers genomic tests in four Thyroid Cancer - Afirma Genomic Sequencing Classifier and Xpression Atlas. The Afirma Xpression Atlas complements the Afirma GSC by providing genomic alteration content from the same FNA samples used in Afirma GSC testing to help physicians decide with greater confidence on the surgical or therapeutic pathway for their patients. The Company commercially launched the Afirma Xpression Atlas in 2018 April 2020 Lung Cancer - Percepta Genomic Sequencing Classifier. second June 2019. may may IPF - Envisia Genomic Classifier. Breast Cancer - Prosigna Breast Cancer Prognostic Gene Signature Assay. December 2019 50 PAM50 ten The Company’s approach also provides multiple opportunities for partnerships with biopharmaceutical and diagnostic testing companies. In developing its products, the Company has built or gained access to unique biorepositories, proprietary technology and bioinformatics that it believes are important to the development of new targeted therapies, determining clinical trial eligibility and guiding treatment selection. Additionally, the Company believes that the nCounter system, with its ability to simultaneously analyze RNA, DNA or protein targets in up to 800 The Company's testing services are performed in its clinical reference laboratories located in South San Francisco, California and Austin, Texas. The Prosigna test kits and associated products are sold to laboratories and hospitals in global markets. Basis of Presentation The Company’s condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of June 30, 2020 three six June 30, 2020 2019 three six June 30, 2020 2019 six June 30, 2020 2019 December 31, 2019 three six June 30, 2020 not The accompanying interim period condensed consolidated financial statements and related financial information included in this Quarterly Report on Form 10 10 December 31, 2019 Reclassifications Certain prior period balances have been reclassified to conform to current period presentation of the Company’s condensed consolidated financial statements and accompanying notes. Such reclassifications have no June 30, 2019 Use of Estimates The preparation of unaudited interim 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 liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Items subject to such estimates include: revenue recognition; write-down of supplies; the useful lives of property and equipment; the recoverability of long-lived assets; the incremental borrowing rate for leases; the estimation of the fair value of intangible assets and contingent consideration; stock options; income tax uncertainties, including a valuation allowance for deferred tax assets; reserve on accounts receivable and contingencies. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenue and expenses that are not Issuance of Common Stock in a Public Offering On May 7, 2019, Cash and Cash Equivalents The Company considers demand deposits in a bank, money market funds and highly liquid investments with an original maturity of 90 three third no June 30, 2020 Concentrations of Credit Risk and Other Risks and Uncertainties The worldwide spread of coronavirus, or COVID- 19, no 19 may 19 19 may The majority of the Company’s cash and cash equivalents are deposited with one may not Several of the components of the Company’s sample collection kits and test reagents, and its nCounter Analysis System and related diagnostic kits are obtained from single-source suppliers. If these single-source suppliers fail to satisfy the Company’s requirements on a timely basis, it could suffer delays in being able to deliver its diagnostic solutions, a possible loss of revenue, or incur higher costs, any of which could adversely affect its operating results. The Company is also subject to credit risk from its accounts receivable related to its sales. Credit risk for accounts receivable from testing revenue is incorporated in testing revenue accrual rates as the Company assesses historical collection rates and current developments to determine accrual rates and amounts the Company will ultimately collect. The Company generally does not not not June 30, 2020 Through June 30, 2020 third 10% Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Medicare 18 % 26 % 23 % 24 % Johnson and Johnson Services, Inc. * 11 % * 12 % UnitedHealthcare 10 % 11 % 10 % 11 % 28 % 48 % 33 % 47 % *Less than 10% The Company’s third 10% June 30, 2020 December 31, 2019 Johnson and Johnson Services, Inc. * 10 % Medicare 11 % 15 % *Less than 10% Restricted Cash The Company had deposits of $603,000 included in long-term assets as of June 30, 2020 December 31, 2019 Revenue Recognition Testing Revenue The Company recognizes testing revenue in accordance with the provisions of ASC 606, 606. During the first 2020, three six June 30, 2020, three six June 30, 2020, During the first 2019, three six June 30, 2019, three six June 30, 2019, Product Revenue The Company began recognizing product revenue in December 2019, 4 Product revenue from instruments and diagnostic kits is recognized generally upon shipment or when the instrument is ready for use by the end customer, which is when title of the product has been transferred to the customer. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. Performance obligations are considered satisfied once the Company has transferred control of a product to the customer, meaning the customer has the ability to use and obtain the benefit of the product. The Company recognizes product revenue for satisfied performance obligations only when there are no Biopharmaceutical and Collaboration Revenue From time to time, the Company enters into arrangements for research and development and/or laboratory services. Such arrangements may In arrangements involving more than one not The consideration allocated to each distinct performance obligation is recognized as revenue when control of the related goods is transferred or services are performed. Consideration associated with at-risk substantive performance milestones is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not Collaborative Arrangements The Company enters into collaborative arrangements with partners that fall under the scope of ASC Topic 808, 808. 808, may 606 606 The terms of the Company’s collaborative arrangements typically include one may Net sales of data or other services to our customers are classified under biopharmaceutical revenue, and all other non-customer revenue are classified under collaboration revenue in our consolidated statements of operations and comprehensive loss. There was no collaboration revenue in the three six June 30, 2020 As part of the accounting for these arrangements, the Company must develop estimates and assumptions that require judgment to determine the underlying stand-alone selling price for each performance obligation which determines how the transaction price is allocated among the performance obligations. Generally, the estimation of the stand-alone selling price may Up-front Fees: If a license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from the transaction price allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time. Milestone Payments: At the inception of each arrangement that includes milestone payments (variable consideration), the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not not not may Services Agreement with Loxo Oncology On April 9, 2018, one one may June 30, 2020 not 606 three March 31, 2019, three June 30, 2019 six June 30, 2020 three six June 30, 2020 not June 30, 2020 December 31, 2019 Diagnostic Development Agreement with Johnson & Johnson On December 28, 2018, v.2, two v.2 not Under the terms of the agreement, the Company will provide data from its RNA whole-transcriptome sequencing platform to JJSI in exchange for $7.0 million in payments from JJSI. The Company is also entitled to additional payments from JJSI of up to $13.0 million, conditioned upon the achievement of certain milestones relating to the development and reimbursement of the Percepta v.2 ten first v.2 one v.2 December 18, 2019, three June 30, 2020 The JJSI agreement is considered to be within the scope of ASC 808, 606 606, $7.0 $13.0 not The Company recognized revenue of $1.3 million for the three six June 30, 2020 three six June 30, 2019 v.2, v.2 three June 30, 2019. June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Collaboration Agreement with AstraZeneca Group On December 23, 2019, three six June 30, 2020 three June 30, 2020, June 30, 2020 Commercial Development Agreement with CareDx On May 13, 2020, three June 30, 2020, June 30, 2020. Cost of Testing Revenue The components of our cost of testing services are laboratory expenses, sample collection expenses, compensation expense, license fees and royalties, depreciation and amortization, other expenses such as equipment and laboratory supplies, and allocations of facility and information technology expenses. Costs associated with performing tests are expensed as the test is processed regardless of whether and when revenue is recognized with respect to that test. Cost of testing revenue for the six June 30, 2020 19 Cost of Product Revenue Cost of product revenue consists primarily of costs of purchasing instruments and diagnostic kits from third Cost of Biopharmaceutical Revenue Cost of biopharmaceutical revenue consists of costs of performing activities under arrangements that require the Company to perform research and development services on behalf of a customer pursuant to a biopharmaceutical service agreement. Recent Accounting Pronouncements In June 2016, No. 2016 13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments January 1, 2020. not In November 2018, No. 2018 18, Collaborative Arrangements (Topic 808 606 not 606. December 15, 2019, 2019 no In August 2018 No. 2018 15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350 40 January 1, 2020, no |
Note 2 - Net Loss Per Common Sh
Note 2 - Net Loss Per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 2. Basic net loss per common share is calculated by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury stock method. The following outstanding common stock equivalents have been excluded from diluted net loss per common share because their inclusion would be anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Shares of common stock subject to outstanding options 4,823,917 5,721,801 4,792,022 5,696,450 Employee stock purchase plan 26,416 29,471 23,007 27,582 Restricted stock units 945,325 752,607 941,776 646,274 Total common stock equivalents 5,795,658 6,503,879 5,756,805 6,370,306 |
Note 3 - Accrued Liabilities
Note 3 - Accrued Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 3. Accrued liabilities consisted of the following (in thousands of dollars): June 30, 2020 December 31, 2019 Accrued compensation expenses $ 6,703 $ 10,100 Accrued other 2,683 3,634 Total accrued liabilities $ 9,386 $ 13,734 |
Note 4 - Business Combination
Note 4 - Business Combination | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 4. On December 3, 2019, 805, may December 31, 2019 June 30, 2020 Assets acquired are recorded based on valuations derived from estimated fair value assessments and assumptions used by the Company. While the Company believes that its estimates and assumptions underlying the valuations are reasonable, different estimates and assumptions could result in different valuations assigned to the individual assets acquired and the resulting amount of goodwill. The following table summarizes the fair values of assets acquired and liabilities assumed at the date of acquisition (in thousands): Prosigna product technology $ 4,120 Prosigna customer relationships 2,430 nCounter Dx license 46,880 LymphMark product technology 990 Total identifiable intangible assets acquired 54,420 Goodwill 1,668 Net assets acquired $ 56,088 Identifiable acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized, as follows: Estimated Useful life (In Years) Prosigna product technology 15 Prosigna customer relationships 5 nCounter Dx license 15 LymphMark product technology 7 Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. This acquisition includes $1.7 million of goodwill which the Company believes consists principally of the organized workforce that will help the Company execute its strategic plans in relation to the assets acquired. In accordance with ASC 350, not June 30, 2020 not |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 5. The Company records its financial assets and liabilities at fair value. The carrying amounts of certain financial instruments of the Company, including cash and cash equivalents, prepaid expenses and other current assets, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three • Level I: Inputs which include quoted prices in active markets for identical assets and liabilities; • Level II: Inputs other than Level I that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not • Level III: Unobservable inputs that are supported by little or no The fair value of the Company’s financial assets includes money market funds, overnight reverse repurchase agreements and a deposit for the lease of the Company's South San Francisco facility. Money market funds, included in cash and cash equivalents in the accompanying condensed consolidated balance sheets, were $144.7 million and $57.6 million as of June 30, 2020 December 31, 2019 zero June 30, 2020 December 31, 2019 no June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 The contingent consideration in Note 4, December 3, 2019, not |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 6. Operating Leases The Company leases its headquarters and laboratory facilities in South San Francisco, California under a non-cancelable lease agreement for approximately 59,000 square feet. The lease began in June 2015 March 2026 June 30, 2020 December 31, 2019 The Company also leases laboratory and office space in Austin, Texas under a lease that expires in January 2029 2025. June 30, 2020 December 31, 2019 Future minimum lease payments under non-cancelable operating leases as of June 30, 2020 Year Ending December 31, Remainder of 2020 $ 1,175 2021 2,401 2022 2,472 2023 2,543 2024 2,614 Thereafter 4,227 Total future minimum lease payments 15,432 Less: amount representing interest 3,201 Present value of future lease payments 12,231 Less: short-term lease liabilities 1,495 Long-term lease liabilities $ 10,736 The Company recognizes operating lease expense on a straight-line basis over the non-cancelable lease period. Operating lease expense was $0.5 million for each of the three June 30, 2020 2019 six June 30, 2020 2019 Contingencies From time to time, the Company may no |
Note 7 - Debt
Note 7 - Debt | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 7. Loan and Security Agreement On November 3, 2017, not June 30, 2020 October 1, 2022. may October 1, 2022. The Term Loan Advance bears interest at a variable rate equal to (i) the thirty six June 30, 2020 The Company may November 3, 2018, ( November 3, 2018 November 3, 2019, November 3, 2019. January 2019 May 2019, not not In addition, a final payment on the Term Loan Advance in the amount of $1.2 million is due upon the earlier of the maturity date of the Term Loan Advance or its payment in full. The Loan and Security Agreement contains customary representations, warranties, and events of default such as a material adverse change in the Company's business, operations or financial condition, as well as affirmative and negative covenants. The negative covenants include, among other provisions, covenants that limit or restrict the Company's ability to incur liens, make investments, incur indebtedness, merge with or acquire other entities, dispose of assets, make dividends or other distributions to holders of its equity interests, engage in any new line of business, or enter into certain transactions with affiliates, in each case subject to certain exceptions. The Company’s obligations under the Loan and Security Agreement are secured by substantially all of its assets (excluding intellectual property), subject to certain customary exceptions. The Loan and Security Agreement also requires the Company to achieve certain revenue levels tested quarterly on a trailing twelve not June 30, 2020 The debt obligation for borrowings made under the Loan and Security Agreement was as follows (in thousands of dollars): June 30, 2020 December 31, 2019 Debt principal $ 100 $ 100 End-of-term debt obligation 701 594 Total debt obligation $ 801 $ 694 Future principal and end-of-term debt obligation payments under the Loan and Security Agreement are $1.3 million and due in 2022. The end-of-term debt obligation accretes over the term of the Loan and Security Agreement until maturity and is included in interest expense in the Company's condensed consolidated statements of operations and comprehensive loss. |
Note 8 - Stockholders' Equity
Note 8 - Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 8. Common Stock The Company had reserved shares of common stock for issuance as follows: June 30, 2020 December 31, 2019 Stock options and restricted stock units issued and outstanding 5,534,822 5,562,484 Stock options and restricted stock units available for grant under stock option plans 3,207,661 1,954,804 Common stock available for the Employee Stock Purchase Plan 112,226 173,168 Total 8,854,709 7,690,456 |
Note 9 - Thyroid Cytopathology
Note 9 - Thyroid Cytopathology Partners | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Long-term Contracts or Programs Disclosure [Text Block] | 9. The Company has an agreement with a specialized pathology practice, Thyroid Cytopathology Partners, or ("TCP"), to provide testing services to the Company, or TCP Agreement. The TCP Agreement is effective through October 31, 2022, not 12 not not not not February 14, 2019, no TCP's portion of rent and related operating expenses reimbursed to the Company for the shared space at the Austin, Texas facility was $11,000 for the six June 30, 2019 |
Note 10 - Income Taxes
Note 10 - Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 10. The Company did not three six June 30, 2020 2019 On March 27, 2020, 19 not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The Company’s condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of June 30, 2020 three six June 30, 2020 2019 three six June 30, 2020 2019 six June 30, 2020 2019 December 31, 2019 three six June 30, 2020 not The accompanying interim period condensed consolidated financial statements and related financial information included in this Quarterly Report on Form 10 10 December 31, 2019 |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassifications Certain prior period balances have been reclassified to conform to current period presentation of the Company’s condensed consolidated financial statements and accompanying notes. Such reclassifications have no June 30, 2019 |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of unaudited interim 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 liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Items subject to such estimates include: revenue recognition; write-down of supplies; the useful lives of property and equipment; the recoverability of long-lived assets; the incremental borrowing rate for leases; the estimation of the fair value of intangible assets and contingent consideration; stock options; income tax uncertainties, including a valuation allowance for deferred tax assets; reserve on accounts receivable and contingencies. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenue and expenses that are not |
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers demand deposits in a bank, money market funds and highly liquid investments with an original maturity of 90 three third no June 30, 2020 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk and Other Risks and Uncertainties The worldwide spread of coronavirus, or COVID- 19, no 19 may 19 19 may The majority of the Company’s cash and cash equivalents are deposited with one may not Several of the components of the Company’s sample collection kits and test reagents, and its nCounter Analysis System and related diagnostic kits are obtained from single-source suppliers. If these single-source suppliers fail to satisfy the Company’s requirements on a timely basis, it could suffer delays in being able to deliver its diagnostic solutions, a possible loss of revenue, or incur higher costs, any of which could adversely affect its operating results. The Company is also subject to credit risk from its accounts receivable related to its sales. Credit risk for accounts receivable from testing revenue is incorporated in testing revenue accrual rates as the Company assesses historical collection rates and current developments to determine accrual rates and amounts the Company will ultimately collect. The Company generally does not not not June 30, 2020 Through June 30, 2020 third 10% Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Medicare 18 % 26 % 23 % 24 % Johnson and Johnson Services, Inc. * 11 % * 12 % UnitedHealthcare 10 % 11 % 10 % 11 % 28 % 48 % 33 % 47 % *Less than 10% The Company’s third 10% June 30, 2020 December 31, 2019 Johnson and Johnson Services, Inc. * 10 % Medicare 11 % 15 % *Less than 10% |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash The Company had deposits of $603,000 included in long-term assets as of June 30, 2020 December 31, 2019 |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition Testing Revenue The Company recognizes testing revenue in accordance with the provisions of ASC 606, 606. During the first 2020, three six June 30, 2020, three six June 30, 2020, During the first 2019, three six June 30, 2019, three six June 30, 2019, Product Revenue The Company began recognizing product revenue in December 2019, 4 Product revenue from instruments and diagnostic kits is recognized generally upon shipment or when the instrument is ready for use by the end customer, which is when title of the product has been transferred to the customer. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. Performance obligations are considered satisfied once the Company has transferred control of a product to the customer, meaning the customer has the ability to use and obtain the benefit of the product. The Company recognizes product revenue for satisfied performance obligations only when there are no Biopharmaceutical and Collaboration Revenue From time to time, the Company enters into arrangements for research and development and/or laboratory services. Such arrangements may In arrangements involving more than one not The consideration allocated to each distinct performance obligation is recognized as revenue when control of the related goods is transferred or services are performed. Consideration associated with at-risk substantive performance milestones is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not Collaborative Arrangements The Company enters into collaborative arrangements with partners that fall under the scope of ASC Topic 808, 808. 808, may 606 606 The terms of the Company’s collaborative arrangements typically include one may Net sales of data or other services to our customers are classified under biopharmaceutical revenue, and all other non-customer revenue are classified under collaboration revenue in our consolidated statements of operations and comprehensive loss. There was no collaboration revenue in the three six June 30, 2020 As part of the accounting for these arrangements, the Company must develop estimates and assumptions that require judgment to determine the underlying stand-alone selling price for each performance obligation which determines how the transaction price is allocated among the performance obligations. Generally, the estimation of the stand-alone selling price may Up-front Fees: If a license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from the transaction price allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time. Milestone Payments: At the inception of each arrangement that includes milestone payments (variable consideration), the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not not not may Services Agreement with Loxo Oncology On April 9, 2018, one one may June 30, 2020 not 606 three March 31, 2019, three June 30, 2019 six June 30, 2020 three six June 30, 2020 not June 30, 2020 December 31, 2019 Diagnostic Development Agreement with Johnson & Johnson On December 28, 2018, v.2, two v.2 not Under the terms of the agreement, the Company will provide data from its RNA whole-transcriptome sequencing platform to JJSI in exchange for $7.0 million in payments from JJSI. The Company is also entitled to additional payments from JJSI of up to $13.0 million, conditioned upon the achievement of certain milestones relating to the development and reimbursement of the Percepta v.2 ten first v.2 one v.2 December 18, 2019, three June 30, 2020 The JJSI agreement is considered to be within the scope of ASC 808, 606 606, $7.0 $13.0 not The Company recognized revenue of $1.3 million for the three six June 30, 2020 three six June 30, 2019 v.2, v.2 three June 30, 2019. June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Collaboration Agreement with AstraZeneca Group On December 23, 2019, three six June 30, 2020 three June 30, 2020, June 30, 2020 Commercial Development Agreement with CareDx On May 13, 2020, three June 30, 2020, June 30, 2020. Cost of Testing Revenue The components of our cost of testing services are laboratory expenses, sample collection expenses, compensation expense, license fees and royalties, depreciation and amortization, other expenses such as equipment and laboratory supplies, and allocations of facility and information technology expenses. Costs associated with performing tests are expensed as the test is processed regardless of whether and when revenue is recognized with respect to that test. Cost of testing revenue for the six June 30, 2020 19 Cost of Product Revenue Cost of product revenue consists primarily of costs of purchasing instruments and diagnostic kits from third Cost of Biopharmaceutical Revenue Cost of biopharmaceutical revenue consists of costs of performing activities under arrangements that require the Company to perform research and development services on behalf of a customer pursuant to a biopharmaceutical service agreement. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In June 2016, No. 2016 13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments January 1, 2020. not In November 2018, No. 2018 18, Collaborative Arrangements (Topic 808 606 not 606. December 15, 2019, 2019 no In August 2018 No. 2018 15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350 40 January 1, 2020, no |
Note 1 - Organization, Descri_2
Note 1 - Organization, Description of Business and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Medicare 18 % 26 % 23 % 24 % Johnson and Johnson Services, Inc. * 11 % * 12 % UnitedHealthcare 10 % 11 % 10 % 11 % 28 % 48 % 33 % 47 % June 30, 2020 December 31, 2019 Johnson and Johnson Services, Inc. * 10 % Medicare 11 % 15 % *Less than 10% |
Note 2 - Net Loss Per Common _2
Note 2 - Net Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Shares of common stock subject to outstanding options 4,823,917 5,721,801 4,792,022 5,696,450 Employee stock purchase plan 26,416 29,471 23,007 27,582 Restricted stock units 945,325 752,607 941,776 646,274 Total common stock equivalents 5,795,658 6,503,879 5,756,805 6,370,306 |
Note 3 - Accrued Liabilities (T
Note 3 - Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | June 30, 2020 December 31, 2019 Accrued compensation expenses $ 6,703 $ 10,100 Accrued other 2,683 3,634 Total accrued liabilities $ 9,386 $ 13,734 |
Note 4 - Business Combination (
Note 4 - Business Combination (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Prosigna product technology $ 4,120 Prosigna customer relationships 2,430 nCounter Dx license 46,880 LymphMark product technology 990 Total identifiable intangible assets acquired 54,420 Goodwill 1,668 Net assets acquired $ 56,088 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Estimated Useful life (In Years) Prosigna product technology 15 Prosigna customer relationships 5 nCounter Dx license 15 LymphMark product technology 7 |
Note 6 - Commitments and Cont_2
Note 6 - Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Year Ending December 31, Remainder of 2020 $ 1,175 2021 2,401 2022 2,472 2023 2,543 2024 2,614 Thereafter 4,227 Total future minimum lease payments 15,432 Less: amount representing interest 3,201 Present value of future lease payments 12,231 Less: short-term lease liabilities 1,495 Long-term lease liabilities $ 10,736 |
Note 7 - Debt (Tables)
Note 7 - Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | June 30, 2020 December 31, 2019 Debt principal $ 100 $ 100 End-of-term debt obligation 701 594 Total debt obligation $ 801 $ 694 |
Note 8 - Stockholders' Equity (
Note 8 - Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Common Stock Capital Shares Reserved for Future Issuance [Table Text Block] | June 30, 2020 December 31, 2019 Stock options and restricted stock units issued and outstanding 5,534,822 5,562,484 Stock options and restricted stock units available for grant under stock option plans 3,207,661 1,954,804 Common stock available for the Employee Stock Purchase Plan 112,226 173,168 Total 8,854,709 7,690,456 |
Note 1 - Organization, Descri_3
Note 1 - Organization, Description of Business and Summary of Significant Accounting Policies (Details Textual) | May 13, 2020USD ($) | May 07, 2019USD ($)$ / sharesshares | Dec. 28, 2018USD ($) | Jun. 30, 2020USD ($)$ / shares | Jun. 30, 2019USD ($)$ / shares | Mar. 31, 2019USD ($) | Jun. 30, 2020USD ($)$ / shares | Jun. 30, 2019USD ($)$ / shares | Dec. 31, 2019USD ($) |
Number of Operating Segments | 1 | ||||||||
Number of Disease Areas with Genomic Testing | 4 | 4 | |||||||
Stock Issued During Period, Shares, New Issues (in shares) | shares | 6,325,000 | ||||||||
Sale of Stock, Price Per Share (in dollars per share) | $ / shares | $ 23.25 | ||||||||
Proceeds from Issuance of Common Stock | $ 137,800,000 | $ 0 | $ 137,848,000 | ||||||
Payments of Stock Issuance Costs | $ 9,200,000 | ||||||||
Restricted Cash and Cash Equivalents, Noncurrent, Total | $ 603,000 | 603,000 | $ 603,000 | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 20,704,000 | $ 30,136,000 | 51,826,000 | 59,665,000 | |||||
Operating Income (Loss), Total | $ (11,051,000) | $ (3,100,000) | $ (23,251,000) | $ (5,167,000) | |||||
Earnings Per Share, Basic and Diluted, Total (in dollars per share) | $ / shares | $ (0.22) | $ (0.05) | $ (0.45) | $ (0.10) | |||||
Inventory Write-down | $ 1,088,000 | $ 0 | |||||||
Loxo Oncology Inc [Member] | Collaborative Arrangement [Member] | |||||||||
Contract Agreement, Term (Year) | 1 year | ||||||||
Contract Agreement, Automatic Renewal Term (Year) | 1 year | ||||||||
Contract Agreement, Termination Period (Day) | 90 days | ||||||||
Contract with Customer, Liability, Revenue Recognized | $ 0 | 0 | |||||||
Johnson and Johnson Services Inc JJSI [Member] | Collaborative Arrangement [Member] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 1,300,000 | ||||||||
Contract with Customer, Liability, Revenue Recognized | 0 | 0 | |||||||
Collaborative Agreement, Amount | $ 7,000,000 | ||||||||
Collaborative Agreement, Contingent Receivable Amount | $ 13,000,000 | ||||||||
Collaborative Agreement, Period of Payments After First Commercial (Year) | 10 years | ||||||||
Collaborative Agreement, Fee Percentage of Cash Collections | 1.00% | ||||||||
Accounts Receivable, after Allowance for Credit Loss, Total | 500,000 | 500,000 | 2,000,000 | ||||||
Acerta Pharma BV [Member] | Collaborative Arrangement [Member] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 200,000 | 400,000 | |||||||
Accounts Receivable, after Allowance for Credit Loss, Total | 1,400,000 | 1,400,000 | |||||||
Revenue from Achievement of Development Milestones | 1,000,000 | ||||||||
CareDx [Member] | Collaborative Arrangement [Member] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,000,000 | ||||||||
Accounts Receivable, after Allowance for Credit Loss, Total | 0 | 0 | |||||||
Contract with Customer, Liability, Total | $ 1,000,000 | 0 | 0 | ||||||
Commercial Development Agreement, Maximum Payments Receivable from Counter Party Upon Achievement of Milestones | 4,500,000 | ||||||||
Value of Support Services to Counter Party | $ 500,000 | ||||||||
Testing [Member] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 15,212,000 | $ 26,686,000 | 42,203,000 | 52,075,000 | |||||
Testing [Member] | Cost of Sales [Member] | COVID 19 Pandemic [Member] | |||||||||
Inventory Write-down | 1,100,000 | ||||||||
Testing [Member] | Revenue Recognition [Member] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 900,000 | 100,000 | 700,000 | 800,000 | |||||
Operating Income (Loss), Total | $ 900,000 | $ 100,000 | $ 700,000 | $ 800,000 | |||||
Earnings Per Share, Basic and Diluted, Total (in dollars per share) | $ / shares | $ 20,000 | $ 0.01 | $ 0.01 | $ 0.02 | |||||
Collaborative [Member] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 0 | $ 0 | |||||||
Product [Member] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,713,000 | $ 0 | 5,122,000 | $ 0 | |||||
Product [Member] | Loxo Oncology Inc [Member] | Collaborative Arrangement [Member] | |||||||||
Contract with Customer, Liability, Revenue Recognized | 0 | $ 90,000 | 0 | ||||||
Service [Member] | Loxo Oncology Inc [Member] | Collaborative Arrangement [Member] | |||||||||
Contract with Customer, Liability, Revenue Recognized | $ 250,000 | $ 500,000 | |||||||
Percepta v2 [Member] | Johnson and Johnson Services Inc JJSI [Member] | Collaborative Arrangement [Member] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,200,000 | 5,000,000 | |||||||
Fulfillment of Obligations Relating to Percepta v.2 Development Milestones [Member] | Johnson and Johnson Services Inc JJSI [Member] | Collaborative Arrangement [Member] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 2,000,000 | ||||||||
Overnight Reverse Repurchase Agreements [Member] | |||||||||
Cash Equivalents, Percentage Collateralized by US Treasury and Agency Securities | 102.00% | 102.00% | |||||||
Cash Equivalents, at Carrying Value, Total | $ 0 | $ 0 | |||||||
Collateral for Irrevocable Standby Letter of Credit [Member] | |||||||||
Restricted Cash and Cash Equivalents, Noncurrent, Total | $ 603,000 | $ 603,000 | $ 603,000 | ||||||
Over-Allotment Option [Member] | |||||||||
Stock Issued During Period, Shares, New Issues (in shares) | shares | 825,000 | ||||||||
Revision of Prior Period, Adjustment [Member] | |||||||||
Increase (Decrease) in Operating Capital, Total | $ 431,000 |
Note 1 - Organization, Descri_4
Note 1 - Organization, Description of Business and Summary of Significant Accounting Policies - Schedule of Third-party Payers as a Percentage of Total (Details) - Customer Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenue from Contract with Customer Benchmark [Member] | |||||
Concentrations of credit risk | 28.00% | 48.00% | 33.00% | 47.00% | |
Revenue from Contract with Customer Benchmark [Member] | Medicare [Member] | |||||
Concentrations of credit risk | 18.00% | 26.00% | 23.00% | 24.00% | |
Revenue from Contract with Customer Benchmark [Member] | Johnson and Johnson Services Inc JJSI [Member] | |||||
Concentrations of credit risk | 11.00% | 12.00% | |||
Revenue from Contract with Customer Benchmark [Member] | United Healthcare [Member] | |||||
Concentrations of credit risk | 10.00% | 11.00% | 10.00% | 11.00% | |
Accounts Receivable [Member] | Medicare [Member] | |||||
Concentrations of credit risk | 11.00% | 15.00% | |||
Accounts Receivable [Member] | Johnson and Johnson Services Inc JJSI [Member] | |||||
Concentrations of credit risk | 10.00% |
Note 2 - Net Loss Per Common _3
Note 2 - Net Loss Per Common Share - Anti-dilutive Common Stock Equivalents Excluded from Diluted Net Loss Per Common Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Total common stock equivalents (in shares) | 5,795,658 | 6,503,879 | 5,756,805 | 6,370,306 |
Share-based Payment Arrangement, Option [Member] | ||||
Total common stock equivalents (in shares) | 4,823,917 | 5,721,801 | 4,792,022 | 5,696,450 |
Employee Stock Purchase Plan Shares [Member] | ||||
Total common stock equivalents (in shares) | 26,416 | 29,471 | 23,007 | 27,582 |
Restricted Stock Units (RSUs) [Member] | ||||
Total common stock equivalents (in shares) | 945,325 | 752,607 | 941,776 | 646,274 |
Note 3 - Accrued Liabilities -
Note 3 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accrued compensation expenses | $ 6,703 | $ 10,100 |
Accrued other | 2,683 | 3,634 |
Total accrued liabilities | $ 9,386 | $ 13,734 |
Note 4 - Business Combination_2
Note 4 - Business Combination (Details Textual) - USD ($) $ in Thousands | Dec. 03, 2019 | Jun. 30, 2020 | Dec. 31, 2019 |
Business Combination, Contingent Consideration, Liability, Total | $ 5,948 | $ 6,088 | |
Goodwill, Ending Balance | 2,725 | 2,725 | |
NanoString [Member] | |||
Payments to Acquire Businesses, Gross | $ 40,000 | ||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 10,000 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 10,000 | ||
Business Combination, Contingent Consideration, Liability, Total | 6,100 | $ 5,900 | $ 6,100 |
Goodwill, Ending Balance | $ 1,668 |
Note 4 - Business Combination -
Note 4 - Business Combination - Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 03, 2019 |
Goodwill | $ 2,725 | $ 2,725 | |
NanoString [Member] | |||
Total identifiable intangible assets acquired | $ 54,420 | ||
Goodwill | 1,668 | ||
Net assets acquired | 56,088 | ||
NanoString [Member] | Prosigna Product Technology [Member] | |||
Total identifiable intangible assets acquired | 4,120 | ||
NanoString [Member] | Prosigna Customer Relationships [Member] | |||
Total identifiable intangible assets acquired | 2,430 | ||
NanoString [Member] | nCounter FLEX Dx License [Member] | |||
Total identifiable intangible assets acquired | 46,880 | ||
NanoString [Member] | LymphMark Product Technology [Member] | |||
Total identifiable intangible assets acquired | $ 990 |
Note 4 - Business Combination_3
Note 4 - Business Combination - Estimated Useful Life of Acquisition-related Intangibles (Details) - NanoString [Member] | Dec. 03, 2019 |
Prosigna Product Technology [Member] | |
Estimated useful life (Year) | 15 years |
Prosigna Customer Relationships [Member] | |
Estimated useful life (Year) | 5 years |
nCounter FLEX Dx License [Member] | |
Estimated useful life (Year) | 15 years |
LymphMark Product Technology [Member] | |
Estimated useful life (Year) | 7 years |
Note 5 - Fair Value Measureme_2
Note 5 - Fair Value Measurements (Details Textual) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Restricted Cash and Cash Equivalents, Noncurrent, Total | $ 603,000 | $ 603,000 |
Overnight Reverse Repurchase Agreements [Member] | ||
Unrealized Gain (Loss) on Investments, Total | 0 | 0 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure | 144,700,000 | 57,600,000 |
Overnight Reverse Repurchase Agreements [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 100,000,000 |
Collateral for Irrevocable Standby Letter of Credit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Restricted Cash and Cash Equivalents, Noncurrent, Total | $ 603,000 | $ 603,000 |
Note 6 - Commitments and Cont_3
Note 6 - Commitments and Contingencies (Details Textual) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2015a | |
Operating Lease, Expense | $ 500,000 | $ 500,000 | $ 1,000,000 | $ 1,000,000 | ||
Headquarters and Laboratory Facilities in South San Francisco, California [Member] | ||||||
Area of Real Estate Property (Acre) | a | 59,000 | |||||
Headquarters and Laboratory Facilities in South San Francisco, California [Member] | Other Noncurrent Assets [Member] | ||||||
Security Deposit | 603,000 | 603,000 | $ 603,000 | |||
Laboratory and Office Space in Austin, Texas [Member] | Other Noncurrent Assets [Member] | ||||||
Security Deposit | $ 139,000 | $ 139,000 | $ 139,000 |
Note 6 - Commitments and Cont_4
Note 6 - Commitments and Contingencies - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Remainder of 2020 | $ 1,175 | |
2021 | 2,401 | |
2022 | 2,472 | |
2023 | 2,543 | |
2024 | 2,614 | |
Thereafter | 4,227 | |
Total future minimum lease payments | 15,432 | |
Less: amount representing interest | 3,201 | |
Present value of future lease payments | 12,231 | |
Less: short-term lease liabilities | 1,495 | $ 1,407 |
Long-term lease liabilities | $ 10,736 | $ 11,506 |
Note 7 - Debt (Details Textual)
Note 7 - Debt (Details Textual) - USD ($) | Nov. 03, 2017 | May 31, 2019 | Jan. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2022 | Dec. 31, 2019 |
Repayments of Long-term Debt, Total | $ 0 | $ 24,900,000 | |||||
Loan and Security Agreement [Member] | Silicon Valley Bank [Member] | |||||||
Debt Agreement, Maximum Borrowing Capacity | $ 35,000,000 | ||||||
Debt Instrument, Face Amount | 100,000 | $ 100,000 | |||||
Debt Instrument, Covenant, Revenue Level Exception, Amount Available Under Revolving Line of Credit | 40,000,000 | ||||||
Long-term Debt, Total | $ 801,000 | $ 694,000 | |||||
Loan and Security Agreement [Member] | Silicon Valley Bank [Member] | Forecast [Member] | |||||||
Long-term Debt, Total | $ 1,300,000 | ||||||
Loan and Security Agreement [Member] | Silicon Valley Bank [Member] | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.70% | ||||||
Long-term Debt, Weighted Average Interest Rate, over Time | 5.60% | ||||||
Loan and Security Agreement [Member] | Silicon Valley Bank [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | ||||||
Loan and Security Agreement [Member] | Silicon Valley Bank [Member] | Term Loan Advance [Member] | |||||||
Debt Instrument, Face Amount | $ 25,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.43% | ||||||
Repayments of Long-term Debt, Total | $ 12,400,000 | $ 12,500,000 | |||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 1,200,000 | ||||||
Loan and Security Agreement [Member] | Silicon Valley Bank [Member] | Term Loan Advance [Member] | Prepayment Made Prior to November 3, 2018 [Member] | |||||||
Debt Instrument, Prepayment Premium | 750,000 | ||||||
Loan and Security Agreement [Member] | Silicon Valley Bank [Member] | Term Loan Advance [Member] | Prepayment Made After November 3, 2018 and Before November 3, 2019 [Member] | |||||||
Debt Instrument, Prepayment Premium | 500,000 | ||||||
Loan and Security Agreement [Member] | Silicon Valley Bank [Member] | Term Loan Advance [Member] | Prepayment Made After November 3, 2019 [Member] | |||||||
Debt Instrument, Prepayment Premium | $ 250,000 | ||||||
Loan and Security Agreement [Member] | Silicon Valley Bank [Member] | Term Loan Advance [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 4.20% |
Note 7 - Debt - Net Debt Obliga
Note 7 - Debt - Net Debt Obligation for Borrowings (Details) - Loan and Security Agreement [Member] - Silicon Valley Bank [Member] - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt principal | $ 100 | $ 100 |
End-of-term debt obligation | 701 | 594 |
Total debt obligation | $ 801 | $ 694 |
Note 8 - Stockholders' Equity -
Note 8 - Stockholders' Equity - Reserved Shares of Common Stock for Issuance (Details) - shares | Jun. 30, 2020 | Dec. 31, 2019 |
Stock options and restricted stock units issued and outstanding (in shares) | 5,534,822 | 5,562,484 |
Total (in shares) | 8,854,709 | 7,690,456 |
Share-based Payment Arrangement, Option [Member] | ||
Common stock available for issuance (in shares) | 3,207,661 | 1,954,804 |
Employee Stock Purchase Plan Shares [Member] | ||
Common stock available for issuance (in shares) | 112,226 | 173,168 |
Note 9 - Thyroid Cytopatholog_2
Note 9 - Thyroid Cytopathology Partners (Details Textual) | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Other Income [Member] | Laboratory and Office Space in Austin, Texas [Member] | Thyroid Cytopathology Partners TCP [Member] | |
Sublease Income | $ 11,000 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Expense (Benefit), Total | $ 0 | $ 0 | $ 0 | $ 0 |