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Nanostring (NSTG)

Document and Entity Information

Document and Entity Information - shares9 Months Ended
Sep. 30, 2018Nov. 05, 2018
Document And Entity Information [Abstract]
Document Type10-Q
Amendment Flagfalse
Document Period End DateSep. 30,
2018
Document Fiscal Year Focus2,018
Document Fiscal Period FocusQ3
Trading SymbolNSTG
Entity Registrant NameNANOSTRING TECHNOLOGIES INC
Entity Central Index Key1,401,708
Current Fiscal Year End Date--12-31
Entity Filer CategoryAccelerated Filer
Entity Common Stock, Shares Outstanding30,831,497

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in ThousandsSep. 30, 2018Dec. 31, 2017
Current assets:
Cash and cash equivalents $ 21,199 $ 26,136
Short-term investments73,731 51,419
Accounts receivable, net18,530 19,564
Inventory, net15,018 20,057
Prepaid expenses and other7,057 4,745
Total current assets135,535 121,921
Restricted cash0 143
Property and equipment, net15,191 14,057
Other assets636 641
Total assets151,362 136,762
Current liabilities:
Accounts payable5,618 4,092
Accrued liabilities2,937 4,507
Accrued compensation and other employee benefits9,122 8,634
Customer deposits10,208 8,945
Deferred revenue, current portion8,905 9,229
Deferred rent, current portion617 512
Total current liabilities37,407 35,919
Deferred revenue, net of current portion3,594 3,304
Deferred rent and other long-term liabilities8,143 8,499
Long-term debt, net of debt issuance costs50,133 48,931
Total liabilities99,277 96,653
Commitment and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value, 15,000 shares authorized; none issued0 0
Common stock, $0.0001 par value, 150,000 shares authorized; 30,769 and 25,421 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively3 2
Additional paid-in capital422,282 353,308
Accumulated other comprehensive loss(54)(99)
Accumulated deficit(370,146)(313,102)
Total stockholders’ equity52,085 40,109
Total liabilities and stockholders’ equity $ 151,362 $ 136,762

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / sharesSep. 30, 2018Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares)15,000,000 15,000,000
Preferred stock, shares issued (in shares)0 0
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares)150,000,000 150,000,000
Common stock, shares issued (in shares)30,769,000 25,421,000
Common stock, shares outstanding (in shares)30,769,000 25,421,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands3 Months Ended9 Months Ended
Sep. 30, 2018Sep. 30, 2017Sep. 30, 2018Sep. 30, 2017
Revenue:
Product and service $ 21,453 $ 16,915 $ 59,882 $ 50,990
Collaboration7,163 10,101 16,818 28,682
Total revenue28,616 27,016 76,700 79,672
Costs and expenses:
Cost of product and service revenue9,291 7,305 25,538 22,692
Research and development16,651 11,374 45,068 33,213
Selling, general and administrative17,810 18,380 57,897 54,590
Total costs and expenses43,752 37,059 128,503 110,495
Loss from operations(15,136)(10,043)(51,803)(30,823)
Other income (expense):
Interest income384 252 826 549
Interest expense(1,631)(1,556)(4,798)(4,585)
Other income (expense), net(46)(12)(330)185
Total other income (expense), net(1,293)(1,316)(4,302)(3,851)
Net loss before provision for income tax(16,429)(11,359)(56,105)(34,674)
Provision for income tax(57)(45)(185)(137)
Net loss $ (16,486) $ (11,404) $ (56,290) $ (34,811)
Net loss per share - basic and diluted (in dollars per share) $ (0.56) $ (0.45) $ (2.09) $ (1.50)
Weighted average shares used in computing basic and diluted net loss per share (in shares)29,366 25,240 26,882 23,172

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands3 Months Ended9 Months Ended
Sep. 30, 2018Sep. 30, 2017Sep. 30, 2018Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss $ (16,486) $ (11,404) $ (56,290) $ (34,811)
Change in unrealized loss on short-term investments12 25 45 29
Comprehensive loss $ (16,474) $ (11,379) $ (56,245) $ (34,782)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands9 Months Ended
Sep. 30, 2018Sep. 30, 2017
Operating activities
Net loss $ (56,290) $ (34,811)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization2,975 2,408
Stock-based compensation expense8,683 8,201
Amortization of premium on short-term investments373 113
Amortization of deferred financing costs276 198
Conversion of accrued interest to long-term debt1,130 1,097
Provision for bad debts467 361
Inventory Write-down629 0
Changes in operating assets and liabilities:
Accounts receivable562 3,552
Inventory3,468 (5,871)
Prepaid expenses and other assets(2,355)(2,412)
Accounts payable1,261 (1,714)
Accrued liabilities(1,388)711
Accrued compensation and other employee benefits532 (900)
Customer deposits1,263 8,105
Deferred revenue(789)(19,608)
Deferred rent and other liabilities(384)1,266
Net cash used in operating activities(39,587)(39,304)
Investing activities
Purchases of property and equipment(2,855)(3,804)
Proceeds from sale of short-term investments5,410 2,300
Proceeds from maturity of short-term investments34,100 38,324
Purchases of short-term investments(62,150)(48,305)
Net cash used in investing activities(25,495)(11,485)
Financing activities
Repayment of lease financing obligations0 (58)
Proceeds from sale of common stock, net53,847 56,486
Proceeds from issuance of common stock warrants2,266 175
Deferred financing costs(63)0
Tax withholdings related to net share settlements of restricted stock units(197)(309)
Proceeds from issuance of common stock for employee stock purchase plan1,451 1,793
Proceeds from exercise of stock options2,727 892
Net cash provided by financing activities60,031 58,979
Net (decrease) increase in cash, cash equivalents and restricted cash(5,051)8,190
Effect of exchange rate changes on cash and cash equivalents and restricted cash(29)24
Cash and cash equivalents and restricted cash
Beginning of period26,279 20,726
End of period21,199 28,940
Cash and cash equivalents26,136
Restricted cash $ 0 $ 143

Description of Business

Description of Business9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]
Description of BusinessDescription of the Business NanoString Technologies, Inc. (the “Company”) was incorporated in the state of Delaware on June 20, 2003. The Company’s headquarters is located in Seattle, Washington. The Company’s technology enables direct detection, identification and quantification of individual target molecules in a biological sample by attaching a unique color coded fluorescent reporter to each target molecule of interest. The Company markets its proprietary nCounter Analysis System, consisting of instruments and consumables, including its Prosigna Breast Cancer Assay, to academic, government, biopharmaceutical and clinical laboratory customers. In addition, the Company is collaborating with biopharmaceutical companies to develop companion diagnostic tests for various cancer therapies. The Company has incurred losses to date and expects to incur additional losses for the foreseeable future. The Company continues to invest the majority of its resources in the development and growth of its business, including significant investments in new product development and sales and marketing efforts. The Company’s activities have been financed primarily through the sale of equity securities and incurrence of indebtedness, cash received by the Company pursuant to certain product development collaborations, and, to a lesser extent, through the incurrence of capital leases and other borrowings. In January 2018, the Company entered into a Sales Agreement with a sales agent to sell shares of the Company's common stock through an “at the market” equity offering program for up to $40.0 million in gross cash proceeds. The Sales Agreement allows the Company to set the parameters for the sale of shares, including the number of shares to be issued, the time period during which sales are requested to be made, limits on the number of shares that may be sold in any one trading day and a minimum price below which sales may not be made. Under the terms of the Sales Agreement, commission expenses to the sales agent will be 3% of the gross sales price per share sold through the sales agent. The Sales Agreement shall automatically terminate upon the issuance and sale of shares that provide gross proceeds of $40.0 million and may be terminated earlier by either the Company or the sales agent upon five days’ notice. In July 2018, the Company completed an underwritten public offering of 4,600,000 shares of common stock, including the exercise in full by the underwriters of their option to purchase 600,000 additional shares of common stock in August 2018, for total gross proceeds of $57.5 million . After underwriter’s commissions and other expenses of the offering, the Company’s aggregate net proceeds were approximately $53.8 million .

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting PoliciesBasis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements reflect the accounts of the Company and its wholly-owned subsidiaries. The unaudited condensed consolidated balance sheet at December 31, 2017 has been derived from the audited consolidated financial statements at that date but does not include all information and disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for annual financial statements. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP for unaudited condensed consolidated financial information. Accordingly, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and results of its operations as of and for the periods presented. Unless indicated otherwise, all amounts presented in financial tables are presented in thousands, except for per share and par value amounts. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The results of the Company’s operations for the three and nine month periods ended September 30, 2018 are not necessarily indicative of the results to be expected for the full year or for any other period. Reclassifications Certain reclassifications have been made to prior year financial statements to conform to current year presentation. Revenue Recognition The Company recognizes revenue when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration expected to be received in exchange for those products and services. 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 or service to the customer, meaning the customer has the ability to use and obtain the benefit of the product or service. The Company recognizes revenue for satisfied performance obligations only when there are no uncertainties regarding payment terms or transfer of control. The Company generates the majority of its revenue from the sale of products and services. The Company’s products consist of its proprietary nCounter Analysis Systems and related consumables. Services consist of instrument service contracts and service fees for assay processing. Revenue from instruments, consumables and in vitro diagnostic kits is recognized generally upon shipment to the end customer, which is when title of the product has been transferred to the customer. Instrument revenue related to installation and calibration services is recognized when the customer has possession of the instrument and the services have been performed. Such services can also be provided by the Company’s distribution partners and other third parties. For instruments sold solely to run Prosigna assays, an initial training course must be provided by the Company prior to instrument revenue recognition. Instrument service contracts are sold with contract terms ranging from 12 – 36 months and cover periods after the end of the initial 12 -month warranty. These contracts include services to maintain performance within the Company’s designed specifications and a minimum of one preventative maintenance service procedure during the contract term. Revenue from services to maintain designed specifications is considered a stand-ready obligation and recognized evenly over the contract term and service revenue related to preventative maintenance of instruments is recognized when the procedure is completed. Revenue from service fees for assay processing is recognized upon the rendering of the related performance obligation. For arrangements with multiple performance obligations, the Company allocates the contract price in proportion to its stand-alone selling price. The Company uses its best estimate of stand-alone selling price for its products and services based on average selling prices over a 12-month period and reviews its stand-alone prices annually. Product and service revenues from sales to customers through distributors are recognized consistent with the policies and practices for direct sales to customers, as described above. The Company enters into collaboration agreements that may generate upfront fees, and in some cases subsequent milestone payments that may be earned upon completion of certain product development milestones or other designated activities. The Company estimates the expected total cost of product development and other services under these arrangements and recognizes collaboration revenue using a contingency-adjusted proportional performance model. Costs incurred to date compared to total expected costs are used to determine proportional performance, as this is considered to be representative of the delivery of outputs under the arrangements. Revenue recognized at any point in time is limited to cash received, amounts contractually due, or the amounts of any product development or other contractual milestone payments when achievement of a milestone is deemed to be probable. Changes in estimates of total expected collaboration product development or other costs are accounted for prospectively as a change in estimate. From period to period, collaboration revenue can fluctuate substantially based on the achievement or probable achievement of product development or other milestones, or as estimates of total expected collaboration product development or other costs are changed or updated. The Company may recognize revenue from collaboration agreements that do not include upfront or milestone-based payments. Amounts due to collaboration partners are recognized when the related activities have occurred and are classified in the statement of operations, generally as research and development expense, based on the nature of the related activities. Recently Adopted Accounting Pronouncement In May 2014, the Financial Accounting Standards Board (“FASB”) issued “ASU 2014-09, Revenue from Contracts with Customers.” The standard requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to a customer. In March 2016, the FASB issued “ASU 2016-08, Principal vs Agent Considerations (Reporting Revenue Gross versus Net)” which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued “ASU 2016-10, Identifying Performance Obligations and Licensing” which clarifies the implementation guidance on identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued “ASU 2016-12, Narrow-Scope Improvements and Practical Expedients” which provides practical expedients for contract modifications and clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for non-cash consideration and completed contracts at transition. The standards require an entity to recognize the amount of revenue which it expects to be entitled for the transfer of promised goods or services to a customer. This guidance replaces most existing revenue recognition guidance and requires more extensive disclosures related to revenue recognition, particularly in quarterly financial statements. A cumulative effect of applying the new revenue standard has been recognized as an adjustment to the opening balance of retained earnings as of January 1, 2018, using the modified retrospective transition method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for the period presented. See Note 3. Revenue from Contracts with Customers, for additional accounting policy and transition disclosures. In January 2016, FASB issued “ASU 2016-01, Financial Instruments: Overall.” The standard addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The Company adopted the standard in the first quarter of 2018 and adoption did not have a material impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In August 2016, FASB issued “ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments.” The standard provides guidance on the presentation of certain cash receipts and cash payments in the statement of cash flows in order to reduce diversity in existing practice. The Company adopted the standard in the first quarter of 2018 and there was no material impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In November 2016, FASB issued “ASU 2016-18, Statement of Cash Flows: Restricted Cash.” The standard requires companies to include amounts generally described as restricted cash and restricted cash equivalents, along with cash and cash equivalents, when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows. The Company adopted the standard in the first quarter of 2018 using the retrospective transition method and reflected the impact of this standard in its consolidated cash flows. In May 2017, FASB issued “ASU 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting.” The standard clarifies which changes to the terms or conditions of a share-based payment award are required to be accounted for as modifications. The Company adopted the standard in the first quarter of 2018 prospectively and adoption did not have an impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. Recent Accounting Pronouncements As an “emerging growth company,” the Jumpstart Our Business Startups Act allows the Company to delay adoption of new or revised accounting pronouncements until December 31, 2018, applicable to public companies until such pronouncements are made applicable to private companies. As a result, its financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective dates for new or revised accounting standards that are applicable to public companies. In February 2016, FASB issued “ASU 2016-02, Leases – Recognition and Measurement of Financial Assets and Financial Liabilities.” The standard requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. In August 2018, FASB issued “ASU 2018-11, Leases (Topic 842): Targeted Improvements, which allows the cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company will adopt the standard on January 1, 2019 and expects the adoption of the standard will result in the recognition of additional assets and liabilities in the consolidated balance sheet related to its existing operating lease commitments. The Company is continuing to assess the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In June 2016, FASB issued “ASU 2016-13, Financial Instruments: Credit Losses.” The standard requires disclosure regarding expected credit losses on financial instruments at each reporting date, and changes how other than temporary impairments on investments securities are recorded. The standard will become effective for the Company beginning January 1, 2020 with early adoption permitted. The Company is currently assessing the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In February 2018, FASB issued “ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The new guidance permits companies to reclassify the stranded tax effects of the Tax Cuts and Jobs Act (the “Act”) on items within accumulated other comprehensive income to retained earnings. The standard will become effective for the Company beginning January 1, 2019 with early adoption permitted. The Company is currently assessing the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In August 2018, FASB issued “ASU 2018-15, Intangibles — Goodwill and other — Internal-use software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard will become effective for the Company beginning on January 1, 2020, with early adoption permitted. The Company is currently assessing the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures.

Net Loss Per Share

Net Loss Per Share9 Months Ended
Sep. 30, 2018
Earnings Per Share [Abstract]
Net Loss Per ShareNet Loss Per Share Net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Outstanding stock options, restricted stock units and warrants have not been included in the calculation of diluted net loss per share because to do so would be anti-dilutive. Accordingly, the numerator and the denominator used in computing both basic and diluted net loss per share for each period are the same. The following shares underlying outstanding options, restricted stock units and warrants were excluded from the computation of basic and diluted net loss per share for the periods presented because their effect would have been anti-dilutive (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Options to purchase common stock 5,302 5,443 5,496 5,337 Restricted stock units 1,194 260 1,135 260 Common stock warrants 551 270 460 311

Revenue from Contracts with Cus

Revenue from Contracts with Customers (Notes)9 Months Ended
Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with CustomersRevenue from Contracts with Customers On January 1, 2018, the Company adopted the new standard for revenue recognition provided in “ASU 2014-09, Revenue from Contracts with Customers” and has applied the modified retrospective transition method to all contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under the new standard, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The Company recorded a transition adjustment which reduced opening retained earnings by $0.8 million as of January 1, 2018 due to the cumulative impact of adopting the new revenue standard. The Company's revenues for the three and nine months ended September 30, 2018 included the recognition of $0.2 million and $0.6 million , respectively, as a result of adopting the new revenue standard and satisfying certain performance obligations during the period. The Company has determined that its collaborative agreements fall within the scope of ASC 808, Collaborative Arrangements, and intends to apply the principles of ASC 606, Revenue from Contracts with Customers, in the measurement and recognition of revenue. In addition, the Company has concluded that when service contracts are sold as part of a bundled arrangement with other products and services, these contracts will no longer be accounted for under separate accounting guidance, but rather included as a separate performance obligation within a contract subject to the new standard, which includes their inclusion in the determination and allocation of the aggregate transaction price, and recognition of revenue upon the delivery of the performance obligation. Performance obligations Performance obligations related to instrument sales are reviewed on a contract-by-contract basis, as individual contract terms may vary, and may include installation and calibration services. For instruments sold solely to run Prosigna assays, training to the customer is a required performance obligation prior to any revenue recognition related to the instrument sale. Performance obligations for the Company's consumable products are generally completed upon shipment to the customer. Disaggregated Revenues The following table provides information about disaggregated revenue by major product line and primary geographic market (in thousands): Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Americas Europe and Middle East Asia Pacific Total Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 3,696 $ 1,149 $ 584 $ 5,429 $ 9,512 $ 4,189 $ 1,890 $ 15,591 Consumables 7,808 2,633 699 11,140 20,770 7,882 2,126 30,778 In vitro diagnostic kits 783 1,687 77 2,547 2,382 4,600 252 7,234 Total product revenue 12,287 5,469 1,360 19,116 32,664 16,671 4,268 53,603 Service revenue 1,582 641 114 2,337 4,383 1,589 307 6,279 Total product and service revenue 13,869 6,110 1,474 21,453 37,047 18,260 4,575 59,882 Collaboration revenue 7,163 — — 7,163 16,818 — — 16,818 Total revenues $ 21,032 $ 6,110 $ 1,474 $ 28,616 $ 53,865 $ 18,260 $ 4,575 $ 76,700 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Americas Europe and Middle East Asia Pacific Total Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 1,760 $ 1,392 $ 1,292 $ 4,444 $ 7,603 $ 4,231 $ 3,115 $ 14,949 Consumables 6,146 2,283 591 9,020 18,265 6,481 2,060 26,806 In vitro diagnostic kits 705 869 115 1,689 1,883 2,890 190 4,963 Total product revenue 8,611 4,544 1,998 15,153 27,751 13,602 5,365 46,718 Service revenue 1,348 367 47 1,762 3,179 962 131 4,272 Total product and service revenue 9,959 4,911 2,045 16,915 30,930 14,564 5,496 50,990 Collaboration revenue 10,101 — — 10,101 28,682 — — 28,682 Total revenues $ 20,060 $ 4,911 $ 2,045 $ 27,016 $ 59,612 $ 14,564 $ 5,496 $ 79,672 Contract balances and remaining performance obligations Contract liabilities are included in the current and long-term portions of deferred revenue of $12.5 million as of both periods ending September 30, 2018 and December 31, 2017 , and within customer deposits of $10.2 million and $8.9 million as of September 30, 2018 and December 31, 2017 , respectively, on the condensed consolidated balance sheets. Total contract liabilities increased by $1.2 million for the nine months ended September 30, 2018 as a result of cash payments received of $23.5 million related to our collaborations and service contracts, partially offset by the recognition of previously deferred revenue of $22.5 million for the completion of certain performance obligations during the period. The Company did not record any contract assets as of September 30, 2018 . Unsatisfied or partially unsatisfied performance obligations related to collaboration agreements as of September 30, 2018 were $16.7 million and are expected to be completed over the period of each collaboration agreement, through June 2020. Performance obligations related to product and service contracts as of September 30, 2018 were $6.0 million and are expected to be completed over the term of the related contract, through April 2023. Practical expedients The Company generally recognizes expense related to the acquisition of contracts, such as sales commissions, at the time of revenue recognition, which is generally in the same period products are sold, and in the case of services, revenue is recognized as services are rendered or over the period of time covered by the service contract, which is typically 12-months from the sale. The Company has not established any contract assets or liabilities related to contract acquisition costs as of September 30, 2018 . The Company records commission expenses within selling, general and administrative expenses. Impact of new revenue standard In accordance with the new revenue guidance, the disclosure of the impact of adoption of this new standard to our condensed consolidated statements of operations and balance sheets was as follows: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (in thousands, except per share amounts) As Reported Amounts under previous revenue standard Effect of Change As Reported Amounts under previous revenue standard Effect of Change Revenue: Product and service $ 21,453 $ 21,272 $ 181 $ 59,882 $ 59,303 $ 579 Collaboration 7,163 7,163 — 16,818 16,818 — Total revenue 28,616 28,435 181 76,700 76,121 579 Net loss $ (16,486 ) $ (16,667 ) $ 181 $ (56,290 ) $ (56,869 ) $ 579 Net loss per share - basic and diluted $ (0.56 ) $ (0.57 ) $ 0.01 $ (2.09 ) $ (2.11 ) $ 0.02 September 30, 2018 (in thousands) As Reported Balances under previous revenue standard Effect of Change Liabilities: Deferred revenue, current portion $ 8,905 $ 8,730 $ 175 Stockholders' equity Accumulated deficit $ (370,146 ) $ (369,971 ) $ (175 ) The adoption of the new revenue standard did not have an aggregate impact on the Company’s net cash provided by operating activities, but resulted in offsetting changes in certain liabilities presented within net cash provided by operating activities in the Company’s condensed consolidated statement of cash flows, as reflected in the above tables.

Concentration of Risks

Concentration of Risks9 Months Ended
Sep. 30, 2018
Risks and Uncertainties [Abstract]
Concentration of RisksConcentration of Risks Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term investments and accounts receivable. Cash is invested in accordance with the Company’s investment policy, which includes guidelines intended to minimize and diversify credit risk. Most of the Company’s investments are not federally insured. The Company has credit risk related to the collectability of its accounts receivable. The Company performs initial and ongoing evaluations of its customers’ credit history or financial position and generally extends credit on account without collateral. The Company has not experienced any significant credit losses to date. The Company had one customer/collaborator, Lam Research Corporation (“Lam”) that individually represented 18% of total revenue during both the three and nine months ended September 30, 2018 , respectively. During the three months ended September 30, 2017 , the Company had one customer/collaborator, Merck Sharp & Dohme Corp., a subsidiary of Merck & Co., Inc. (“Merck”), that individually represented 34% of total revenue, respectively. During the nine months ended September 30, 2017 , Merck, and Medivation, Inc. (“Medivation”) and Astellas Pharma Inc. (“Astellas”), represented 21% and 14% of total revenue, respectively. The Company had no customers or collaborators that represented more than 10% of total accounts receivable as of September 30, 2018 or December 31, 2017 . The Company is also subject to supply chain risks related to the outsourcing of the manufacturing and production of its instruments to sole suppliers. Although there are a limited number of manufacturers for instruments of this type, the Company believes that other suppliers could provide similar products on comparable terms. Similarly, the Company sources certain raw materials used in the manufacture of consumables from certain sole suppliers. A change in suppliers could cause a delay in manufacturing and a possible loss of sales, which would adversely affect operating results.

Short-term Investments

Short-term Investments9 Months Ended
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Short-term InvestmentsShort-term Investments Short-term investments consisted of available-for-sale securities as follows (in thousands): Type of securities as of September 30, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate debt securities $ 48,971 $ — $ (19 ) $ 48,952 U.S. government-related debt securities 17,916 — (34 ) 17,882 Asset-backed securities 6,898 — (1 ) 6,897 Total available-for-sale securities $ 73,785 $ — $ (54 ) $ 73,731 Type of securities as of December 31, 2017 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate debt securities $ 35,567 $ — $ (53 ) $ 35,514 U.S. government-related debt securities 15,951 — (46 ) 15,905 Total available-for-sale securities $ 51,518 $ — $ (99 ) $ 51,419 The fair values of available-for-sale securities by contractual maturity were as follows (in thousands): September 30, 2018 December 31, 2017 Maturing in one year or less $ 73,731 $ 39,985 Maturing in one to three years — 11,434 Total available-for-sale securities $ 73,731 $ 51,419 The Company has the ability to sell its available-for-sale investments maturing greater than one year within 12 months from the balance sheet date and, accordingly, has classified these securities as current in the condensed consolidated balance sheets. The following table summarizes investments that have been in a continuous unrealized loss position as of September 30, 2018 (in thousands). Less Than 12 Months 12 Months or Greater Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Corporate debt securities $ 19,965 $ (19 ) $ — $ — $ 19,965 $ (19 ) U.S. government-related debt securities 17,883 (34 ) — — 17,883 (34 ) Asset-backed securities 4,456 (1 ) — — 4,456 (1 ) Total $ 42,304 $ (54 ) $ — $ — $ 42,304 $ (54 ) The Company invests in securities that are rated investment grade or better. The unrealized losses on investments as of September 30, 2018 and December 31, 2017 were primarily caused by interest rate increases. The Company reviews the individual securities in its portfolio to determine whether a decline in a security’s fair value below the amortized cost basis is other-than-temporary. The Company determined that as of September 30, 2018 , there were no investments in its portfolio that were other-than-temporarily impaired.

Fair Value Measurements

Fair Value Measurements9 Months Ended
Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value MeasurementsFair Value Measurements The Company establishes the fair value of its assets and liabilities using the price that would be received to sell an asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is used to measure fair value. The three levels of the fair value hierarchy are as follows: • Level 1 — Quoted prices in active markets for identical assets and liabilities. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The recorded amounts of certain financial instruments, including cash, accounts receivable, prepaid expenses and other, accounts payable and accrued liabilities, approximate fair value due to their relatively short-term maturities. The recorded amount of the Company’s long-term debt approximates fair value because the related interest rates approximate rates currently available to the Company. The Company’s available-for-sale securities by level within the fair value hierarchy were as follows (in thousands): As of September 30, 2018 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 13,761 $ — $ — $ 13,761 Short-term investments: Corporate debt securities — 48,952 — 48,952 U.S. government-related debt securities — 17,882 — 17,882 Asset-backed securities — 6,897 — 6,897 Total $ 13,761 $ 73,731 $ — $ 87,492 As of December 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 22,398 $ — $ — $ 22,398 Short-term investments: Corporate debt securities — 35,514 — 35,514 U.S. government-related debt securities — 15,905 — 15,905 Total $ 22,398 $ 51,419 $ — $ 73,817

Inventory

Inventory9 Months Ended
Sep. 30, 2018
Inventory Disclosure [Abstract]
InventoryInventory Inventory consisted of the following as of the date indicated (in thousands): September 30, 2018 December 31, 2017 Raw materials $ 3,026 $ 5,743 Work in process 4,741 4,845 Finished goods 7,251 9,469 Total inventory $ 15,018 $ 20,057

Long-term Debt

Long-term Debt9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]
Long-term DebtLong-term Debt In April 2014, the Company entered into a term loan agreement under which it could borrow up to $45.0 million , including an option to defer payment of a portion of the interest that would accrue on the borrowing under the term loan agreement. Upon initial closing, the Company borrowed $20.0 million , and in October 2014, the Company borrowed an additional $10.0 million under the term loan agreement. In October 2015, the Company amended the term loan agreement to, among other provisions, increase the maximum borrowing capacity to $60.0 million (excluding deferred interest), reduce the applicable interest rate from 12.5% to 12.0% , extend the interest-only period through March 2021, and extend the final maturity to March 2022. Under the amended agreement, borrowings accrued interest at 12.0% annually, payable quarterly, of which 3.0% could be deferred during the first six years of the term at the Company’s option and paid together with the principal at maturity. The Company has elected to exercise the option to defer payment of a portion of the interest and has recorded $5.4 million of deferred interest through September 30, 2018 . In December 2015, the Company borrowed an additional $10.0 million under the terms of the amended agreement. In June 2016, the Company borrowed an additional $5.0 million . At December 31, 2016, the Company's option to borrow $15.0 million more under the amended term loan agreement expired. Total borrowings and deferred interest under the amended term loan agreement were $50.4 million and $49.3 million as of September 30, 2018 and December 31, 2017 , respectively. Under the amended term loan agreement, the Company may pay interest-only for the first seven years of the term and principal payments are due in four equal installments during the eighth year of the term. The amended term loan agreement included a declining redemption fee payable upon prepayment during the first four years after we entered into the agreement. However, this period has lapsed and we have the option to prepay the term loan, in whole or part, at any time, with no penalty. A facility fee equal to 2.0% of the amount borrowed plus any accrued interest is payable at the end of the term or when the loan is repaid in full. A long-term liability of $1.1 million for the facility fee is being accreted using the effective interest method over the term of the loan agreement. Obligations under the term loan agreement are collateralized by substantially all of the Company’s assets. The term loan agreement contains customary conditions to borrowings, events of default and negative covenants, including covenants that could limit the Company’s ability to, among other things, incur additional indebtedness, liens or other encumbrances, make dividends or other distributions; buy, sell or transfer assets; engage in any new line of business; and enter into certain transactions with affiliates. The term loan agreement also includes a $2.0 million minimum liquidity covenant and revenue-based financial requirements, specifically $100.0 million for 2018 with annual increases of $15.0 million for each subsequent fiscal year thereafter. If the Company’s actual revenue is below the minimum annual revenue requirement for any given year, it may avoid a related default by generating proceeds from an equity or subordinated debt issuance equal to the shortfall between its actual revenue and the minimum revenue requirement. In January 2018, the Company entered into a $15.0 million secured revolving loan facility, with availability subject to a borrowing base consisting of eligible accounts receivable. The agreement matures in January 2021, at which time the outstanding principal will become due and payable. Interest on borrowings is payable monthly and accrues at a yearly rate equal to the greater of the prime rate, as reported in the Wall Street Journal, plus 0.50% or 4.75% . During an event of default amounts drawn accrue interest at a yearly rate equal to 8.75% . Obligations under the agreement are secured by the Company's cash and cash equivalents, accounts receivable and proceeds thereof, and inventory and proceeds from the sale thereof. The lender’s interest in the collateral under the loan facility is senior to the lender’s interest in such collateral under the term loan agreement. The loan facility contains various customary representations and warranties, conditions to borrowing, events of default, including cross default provisions with respect to the loan facility, and covenants, including financial covenants requiring the maintenance of minimum annual revenue and liquidity. There were no borrowings under the secured revolving loan facility as of September 30, 2018 . The Company was in compliance with its financial covenants under the term loan agreement and the secured revolving loan facility as of September 30, 2018 . Long-term debt consisted of the following (in thousands): September 30, 2018 December 31, 2017 Term loans payable $ 50,446 $ 49,315 Unamortized debt issuance costs (313 ) (384 ) Long-term debt, net of debt issuance costs $ 50,133 $ 48,931 Scheduled future principal payments for outstanding debt were as follows at September 30, 2018 (in thousands): Years Ending December 31, Remainder of 2018 $ — 2019 — 2020 — 2021 37,834 2022 12,612 $ 50,446

Collaboration Agreements

Collaboration Agreements9 Months Ended
Sep. 30, 2018
Deferred Revenue Disclosure [Abstract]
Collaboration AgreementsCollaboration Agreements The Company evaluates the classification of payments within the statements of operations between the participants in each of its collaboration agreements at inception of the agreement based on the nature of the arrangement, the nature of its business operations and the contractual terms of the arrangement. The Company has determined that amounts to be received from collaborators in connection with the collaboration agreements entered into through September 30, 2018 are related to revenue generating activities. The Company uses a contingency-adjusted proportional performance model to recognize revenue over the Company’s performance period for each collaboration agreement that includes up front, milestone-based or other contractual payments. Costs incurred to date compared to total expected costs are used to determine proportional performance, as this is considered to be representative of the delivery of outputs under the arrangement. Revenue recognized at any point in time is a factor of and limited to cash received and amounts contractually due. Changes in estimates of total expected costs are accounted for prospectively in the period of the change. The Company recognizes revenue from collaboration agreements that do not include up front, milestone-based or other contractual payments when earned, which is generally in the same period that related costs are incurred. Amounts due to collaboration partners are recognized when the related activities have occurred and are classified in the statement of operations, generally as research and development expense, based on the nature of the related activities. Lam Research Corporation In August 2017, the Company entered into a collaboration agreement with Lam Research Corporation (“Lam”) with respect to the development and commercialization of the Company's Hyb & Seq sequencing platform and related assays. Pursuant to the terms of the collaboration agreement, Lam will contribute up to an aggregate of $50.0 million , with amounts thereunder payable quarterly, to be applied to the research and development of the Company's Hyb & Seq platform, based on allowable development costs. Lam is eligible to receive certain single-digit percentage royalty payments from the Company on net sales of certain products and technologies developed under the collaboration agreement. The maximum amount of royalties payable to Lam will be capped at an amount up to three times the amount of development funding actually provided by Lam. The Company will retain exclusive rights to obtain regulatory approval, manufacture and commercialize the Hyb & Seq products. Lam will participate in research and product development through a joint steering committee. The Company will reimburse Lam for the cost of up to 10 full-time Lam employees each year in accordance with the product development plan. In connection with the execution of the collaboration agreement, the Company issued Lam a warrant to purchase up to 1.0 million shares of the Company’s common stock with the number of underlying shares exercisable at any time proportionate to the amount of the $50.0 million commitment that has been provided by Lam. The exercise price of the warrant is $16.75 per share, and the warrant will expire on the seventh anniversary of the issuance date. The warrant was determined to have a fair value of $6.7 million upon issuance, and such amount will be recorded as additional paid in capital proportionately from the quarterly collaboration payments made by Lam. During the three and nine months ended September 30, 2018 , the Company recognized revenue related to the Lam agreement of $5.3 million and $13.4 million , respectively. During the three and nine months ended September 30, 2017 , the Company recognized revenue of $0.9 million . The Company received development funding of $7.0 million and $18.4 million related to the Lam collaboration for the three and nine months ended September 30, 2018 , respectively, and $9.2 million for the three and nine months ended September 30, 2017 . At September 30, 2018 , the Company had recorded $2.0 million of deferred revenue related to the Lam collaboration, of which $1.2 million is estimated to be recognizable as revenue within one year. In addition, $9.6 million is included in customer deposits in the condensed consolidated balance sheet as of September 30, 2018 representing amounts received in advance. The Company incurred costs of $0.1 million and $0.2 million during the three and nine months ended September 30, 2018 related to services provided by Lam employees under the terms of the agreement. As of September 30, 2018 , Lam had not exercised any warrants. Celgene Corporation In March 2014, the Company entered into a collaboration agreement with Celgene Corporation (“Celgene”) to develop, seek regulatory approval for, and commercialize a companion diagnostic using the nCounter Analysis System to identify a subset of patients with Diffuse Large B-Cell Lymphoma. In February 2018, the Company and Celgene entered into an amendment to their collaboration agreement in which Celgene agreed to provide the Company additional funding for work intended to enable a subtype and prognostic indication for the test being developed under the agreement for Celgene’s drug REVLIMID. In addition, the amendment provides an additional milestone payment to the Company payable upon achievement of certain regulatory activities and timelines. In connection with this amendment, the Company agreed to remove the right to receive payments from Celgene in the event commercial sales of the companion diagnostic test do not exceed certain pre-specified minimum annual revenues during the first three years following regulatory approval. In addition, the amendment allows Celgene, at its election, to use trial samples with additional technologies for companion diagnostics. Pursuant to the Company's agreement as amended in February 2018, the Company is eligible to receive payments from Celgene totaling up to $27.3 million , of which $5.8 million was received as an upfront payment upon delivery of certain information to Celgene and $21.5 million is for development funding and potential success-based development and regulatory milestones. There have been several amendments to the collaboration agreement and in return the Company has received additional payments totaling $2.1 million . The Company will retain all commercial rights to the diagnostic test developed under this collaboration, subject to certain backup rights granted to Celgene to commercialize the diagnostic test in a particular country if the Company elects to cease distribution or elects not to distribute the diagnostic in such country. Assuming success in the clinical trial process, and subject to regulatory approval, the Company will market and sell the diagnostic assay. The process of successfully developing a product candidate, obtaining regulatory approval and ultimately commercializing a product candidate is highly uncertain and the attainment of any additional milestones is therefore uncertain and difficult to predict. In addition, certain milestones are outside the Company’s control and are dependent on the performance of Celgene and the outcome of a clinical trial and related regulatory processes. Accordingly, the Company is not able to reasonably estimate when, if at all, any additional milestone payments may be payable to the Company by Celgene. During the three and nine months ended September 30, 2018 , the Company recognized revenue related to the Celgene agreement of $1.6 million and $1.4 million , respectively. During the three months ended September 30, 2017 , the Company recognized a $0.1 million reduction of cumulative revenue under the agreement, primarily as a result of increased estimated future regulatory costs. For the nine months ended September 30, 2017 , the Company recognized revenue of $0.5 million . At September 30, 2018 , the Company had recorded $4.8 million of deferred revenue related to the Celgene collaboration, of which $3.9 million is estimated to be recognizable as revenue within one year. Merck & Co., Inc. In May 2015, the Company entered into a clinical research collaboration agreement with Merck, to develop an assay intended to optimize immune-related gene expression signatures and evaluate the potential to predict benefit from Merck’s anti-PD-1therapy, KEYTRUDA. Under the terms of the collaboration agreement, the Company received $3.9 million in payments during 2015. In connection with the execution of the development collaboration agreement, the Company and Merck terminated the May 2015 clinical research collaboration and moved all remaining activities under the related work plan to the new development collaboration agreement. In February 2016, the Company expanded its collaboration with Merck by entering into a new development collaboration agreement to clinically develop, seek regulatory approval for, and commercialize a diagnostic test, to predict response to KEYTRUDA in multiple tumor types. During 2016, the Company received $12.0 million upfront as a technology access fee and $8.5 million of preclinical milestone payments. In October 2017, Merck notified the Company of its decision not to pursue regulatory approval of the companion diagnostic test for KEYTRUDA and, in August 2018, the Company and Merck agreed to mutually terminate their development collaboration agreement, effective as of September 30, 2018, following the completion of certain close-out activities. As part of the mutual termination agreement, Merck granted to the Company a non-exclusive license to certain intellectual property that relates to Merck’s tumor inflammation signature. During the three and nine months ended September 30, 2018 , the Company recognized revenue related to the Merck agreement of $0.2 million and $1.6 million , respectively. During the three and nine months ended September 30, 2017 , the Company recognized revenue of $8.8 million and $15.4 million , respectively. The Company received development funding of $0.1 million and $1.0 million for the three and nine months ended September 30, 2018 , respectively, and $2.3 million and $5.6 million for the three and nine months ended September 30, 2017 , respectively. At September 30, 2018 , there is no remaining deferred revenue related to the Merck collaboration. Medivation, Inc. and Astellas Pharma, Inc. In January 2016, the Company entered into a collaboration agreement with Medivation and Astellas to pursue the translation of a novel gene expression signature algorithm discovered by Medivation into a companion diagnostic assay using the nCounter Analysis System. In September 2016, Medivation was acquired by Pfizer, Inc. (“Pfizer”) and became a wholly owned subsidiary of Pfizer. In May 2017, the Company received notification from Pfizer and Astellas terminating the collaboration agreement as a result of a decision to discontinue the related clinical trial.

Commitments and Contingencies

Commitments and Contingencies9 Months Ended
Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and ContingenciesCommitments and Contingencies From time to time, the Company may become involved in litigation relating to claims arising from the ordinary course of business. Management believes that there are no claims or actions pending against the Company currently, the ultimate disposition of which would have a material adverse effect on the Company’s consolidated results of operations, financial condition or cash flows.

Information about Geographic Ar

Information about Geographic Areas9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]
Information about Geographic AreasInformation about Geographic Areas The Company operates as a single reportable segment and enables customers to perform both research and clinical testing on its nCounter Analysis Systems. The Company has one sales force that sells these systems to both research and clinical testing labs, and its nCounter Elements reagents can be used for both research and diagnostic testing. In addition, the Company’s Prosigna Breast Cancer Assay is marketed to clinical laboratories. The following table of total revenue is based on the geographic location of distributors or end users who purchase products and services and collaborators. For sales to distributors, their geographic location may be different from the geographic locations of the ultimate end user. For collaboration agreements, revenues are derived from partners located primarily in the United States. Americas consists of the United States, Canada, Mexico and South America; and Asia Pacific includes Japan, China, South Korea, Singapore, Malaysia, India and Australia. Revenue by geography was as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Americas $ 21,032 $ 20,060 $ 53,865 $ 59,612 Europe & Middle East 6,110 4,911 18,260 14,564 Asia Pacific 1,474 2,045 4,575 5,496 Total revenue $ 28,616 $ 27,016 $ 76,700 $ 79,672 Total revenue in the United States was $20.4 million and $19.7 million for the three months ended September 30, 2018 and 2017 , respectively, and $51.2 million and $58.3 million for the nine months ended September 30, 2018 and 2017 , respectively. The Company’s assets are primarily located in the United States and not allocated to any specific geographic region. Substantially all of the Company’s long-lived assets are located in the United States.

Subsequent Event

Subsequent Event9 Months Ended
Sep. 30, 2018
Subsequent Event [Line Items]
Subsequent EventSubsequent Event In October 2018, the Company entered into an amended and restated loan agreement with CRG Servicing LLC and related lending parties under which the new lenders agreed to extend term loans to the Company in an aggregate principal amount of up to $100.0 million , excluding any additional borrowings attributable to the Company's exercise of the option to defer payment on a portion of the interest that would accrue as additional borrowings under the agreement. The amended term loan is due and payable on September 30, 2024 . At closing, the Company received net proceeds of approximately $7.8 million , pursuant to borrowings of $60.0 million under the new facility, net of repayment of the Company's existing term loan facility to its original lenders of $50.4 million , and transaction-related fees and expenses. Of the $40.0 million in additional borrowing capacity, the Company has the option to borrow $20.0 million until June 30, 2019 and an additional $20.0 million until March 30, 2020, subject to the achievement of certain product and service revenue thresholds prior to December 31, 2019. The amended and restated loan agreement contains liquidity and minimum annual revenue requirements, as well as conditions customary to borrowings, events of default and negative covenants. Interest on the term loan of 10.5% is payable quarterly, of which 3% may be deferred during the six year term at the Company's option and repaid at maturity together with the principal. The Company paid an upfront fee of 0.5% of the aggregate principal amount of the initial borrowing under the facility, and will pay a fee equal to 2% of the total amount borrowed under the term loan agreement at the time the principal is repaid. In connection with the new facility, warrants to purchase an aggregate of 341,578 shares of common stock with an exercise price per share of $21.12 were issued to the lenders, and, in the event additional amounts are drawn under the new facility, additional warrants will be issued on each subsequent draw date for 0.3% of the fully-diluted shares then outstanding. The exercise price for additional warrants will be set at a 25% premium to the average closing trading price for the 30-day trading period as of the date immediately before the applicable draw date.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]
Basis of PresentationThe accompanying unaudited condensed consolidated financial statements reflect the accounts of the Company and its wholly-owned subsidiaries. The unaudited condensed consolidated balance sheet at December 31, 2017 has been derived from the audited consolidated financial statements at that date but does not include all information and disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for annual financial statements. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP for unaudited condensed consolidated financial information. Accordingly, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and results of its operations as of and for the periods presented. Unless indicated otherwise, all amounts presented in financial tables are presented in thousands, except for per share and par value amounts. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The results of the Company’s operations for the three and nine month periods ended September 30, 2018 are not necessarily indicative of the results to be expected for the full year or for any other period.
ReclassificationsReclassifications Certain reclassifications have been made to prior year financial statements to conform to current year presentation.
Revenue RecognitionThe Company recognizes revenue when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration expected to be received in exchange for those products and services. 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 or service to the customer, meaning the customer has the ability to use and obtain the benefit of the product or service. The Company recognizes revenue for satisfied performance obligations only when there are no uncertainties regarding payment terms or transfer of control. The Company generates the majority of its revenue from the sale of products and services. The Company’s products consist of its proprietary nCounter Analysis Systems and related consumables. Services consist of instrument service contracts and service fees for assay processing. Revenue from instruments, consumables and in vitro diagnostic kits is recognized generally upon shipment to the end customer, which is when title of the product has been transferred to the customer. Instrument revenue related to installation and calibration services is recognized when the customer has possession of the instrument and the services have been performed. Such services can also be provided by the Company’s distribution partners and other third parties. For instruments sold solely to run Prosigna assays, an initial training course must be provided by the Company prior to instrument revenue recognition. Instrument service contracts are sold with contract terms ranging from 12 – 36 months and cover periods after the end of the initial 12 -month warranty. These contracts include services to maintain performance within the Company’s designed specifications and a minimum of one preventative maintenance service procedure during the contract term. Revenue from services to maintain designed specifications is considered a stand-ready obligation and recognized evenly over the contract term and service revenue related to preventative maintenance of instruments is recognized when the procedure is completed. Revenue from service fees for assay processing is recognized upon the rendering of the related performance obligation. For arrangements with multiple performance obligations, the Company allocates the contract price in proportion to its stand-alone selling price. The Company uses its best estimate of stand-alone selling price for its products and services based on average selling prices over a 12-month period and reviews its stand-alone prices annually. Product and service revenues from sales to customers through distributors are recognized consistent with the policies and practices for direct sales to customers, as described above. The Company enters into collaboration agreements that may generate upfront fees, and in some cases subsequent milestone payments that may be earned upon completion of certain product development milestones or other designated activities. The Company estimates the expected total cost of product development and other services under these arrangements and recognizes collaboration revenue using a contingency-adjusted proportional performance model. Costs incurred to date compared to total expected costs are used to determine proportional performance, as this is considered to be representative of the delivery of outputs under the arrangements. Revenue recognized at any point in time is limited to cash received, amounts contractually due, or the amounts of any product development or other contractual milestone payments when achievement of a milestone is deemed to be probable. Changes in estimates of total expected collaboration product development or other costs are accounted for prospectively as a change in estimate. From period to period, collaboration revenue can fluctuate substantially based on the achievement or probable achievement of product development or other milestones, or as estimates of total expected collaboration product development or other costs are changed or updated. The Company may recognize revenue from collaboration agreements that do not include upfront or milestone-based payments. Amounts due to collaboration partners are recognized when the related activities have occurred and are classified in the statement of operations, generally as research and development expense, based on the nature of the related activities.
Recent Accounting PronouncementsRecently Adopted Accounting Pronouncement In May 2014, the Financial Accounting Standards Board (“FASB”) issued “ASU 2014-09, Revenue from Contracts with Customers.” The standard requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to a customer. In March 2016, the FASB issued “ASU 2016-08, Principal vs Agent Considerations (Reporting Revenue Gross versus Net)” which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued “ASU 2016-10, Identifying Performance Obligations and Licensing” which clarifies the implementation guidance on identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued “ASU 2016-12, Narrow-Scope Improvements and Practical Expedients” which provides practical expedients for contract modifications and clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for non-cash consideration and completed contracts at transition. The standards require an entity to recognize the amount of revenue which it expects to be entitled for the transfer of promised goods or services to a customer. This guidance replaces most existing revenue recognition guidance and requires more extensive disclosures related to revenue recognition, particularly in quarterly financial statements. A cumulative effect of applying the new revenue standard has been recognized as an adjustment to the opening balance of retained earnings as of January 1, 2018, using the modified retrospective transition method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for the period presented. See Note 3. Revenue from Contracts with Customers, for additional accounting policy and transition disclosures. In January 2016, FASB issued “ASU 2016-01, Financial Instruments: Overall.” The standard addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The Company adopted the standard in the first quarter of 2018 and adoption did not have a material impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In August 2016, FASB issued “ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments.” The standard provides guidance on the presentation of certain cash receipts and cash payments in the statement of cash flows in order to reduce diversity in existing practice. The Company adopted the standard in the first quarter of 2018 and there was no material impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In November 2016, FASB issued “ASU 2016-18, Statement of Cash Flows: Restricted Cash.” The standard requires companies to include amounts generally described as restricted cash and restricted cash equivalents, along with cash and cash equivalents, when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows. The Company adopted the standard in the first quarter of 2018 using the retrospective transition method and reflected the impact of this standard in its consolidated cash flows. In May 2017, FASB issued “ASU 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting.” The standard clarifies which changes to the terms or conditions of a share-based payment award are required to be accounted for as modifications. The Company adopted the standard in the first quarter of 2018 prospectively and adoption did not have an impact on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. Recent Accounting Pronouncements As an “emerging growth company,” the Jumpstart Our Business Startups Act allows the Company to delay adoption of new or revised accounting pronouncements until December 31, 2018, applicable to public companies until such pronouncements are made applicable to private companies. As a result, its financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective dates for new or revised accounting standards that are applicable to public companies. In February 2016, FASB issued “ASU 2016-02, Leases – Recognition and Measurement of Financial Assets and Financial Liabilities.” The standard requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. In August 2018, FASB issued “ASU 2018-11, Leases (Topic 842): Targeted Improvements, which allows the cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company will adopt the standard on January 1, 2019 and expects the adoption of the standard will result in the recognition of additional assets and liabilities in the consolidated balance sheet related to its existing operating lease commitments. The Company is continuing to assess the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In June 2016, FASB issued “ASU 2016-13, Financial Instruments: Credit Losses.” The standard requires disclosure regarding expected credit losses on financial instruments at each reporting date, and changes how other than temporary impairments on investments securities are recorded. The standard will become effective for the Company beginning January 1, 2020 with early adoption permitted. The Company is currently assessing the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In February 2018, FASB issued “ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The new guidance permits companies to reclassify the stranded tax effects of the Tax Cuts and Jobs Act (the “Act”) on items within accumulated other comprehensive income to retained earnings. The standard will become effective for the Company beginning January 1, 2019 with early adoption permitted. The Company is currently assessing the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures. In August 2018, FASB issued “ASU 2018-15, Intangibles — Goodwill and other — Internal-use software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard will become effective for the Company beginning on January 1, 2020, with early adoption permitted. The Company is currently assessing the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures.
Net Loss Per ShareNet loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Outstanding stock options, restricted stock units and warrants have not been included in the calculation of diluted net loss per share because to do so would be anti-dilutive. Accordingly, the numerator and the denominator used in computing both basic and diluted net loss per share for each period are the same.
Fair Value MeasurementsThe Company establishes the fair value of its assets and liabilities using the price that would be received to sell an asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is used to measure fair value. The three levels of the fair value hierarchy are as follows: • Level 1 — Quoted prices in active markets for identical assets and liabilities. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The recorded amounts of certain financial instruments, including cash, accounts receivable, prepaid expenses and other, accounts payable and accrued liabilities, approximate fair value due to their relatively short-term maturities. The recorded amount of the Company’s long-term debt approximates fair value because the related interest rates approximate rates currently available to the Company.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)9 Months Ended
Sep. 30, 2018
Earnings Per Share [Abstract]
Summary of Shares Underlying Outstanding Options and Warrants were Excluded from Computation of Basic and Diluted Net Loss Per ShareThe following shares underlying outstanding options, restricted stock units and warrants were excluded from the computation of basic and diluted net loss per share for the periods presented because their effect would have been anti-dilutive (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Options to purchase common stock 5,302 5,443 5,496 5,337 Restricted stock units 1,194 260 1,135 260 Common stock warrants 551 270 460 311

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)9 Months Ended
Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of RevenueThe following table provides information about disaggregated revenue by major product line and primary geographic market (in thousands): Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Americas Europe and Middle East Asia Pacific Total Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 3,696 $ 1,149 $ 584 $ 5,429 $ 9,512 $ 4,189 $ 1,890 $ 15,591 Consumables 7,808 2,633 699 11,140 20,770 7,882 2,126 30,778 In vitro diagnostic kits 783 1,687 77 2,547 2,382 4,600 252 7,234 Total product revenue 12,287 5,469 1,360 19,116 32,664 16,671 4,268 53,603 Service revenue 1,582 641 114 2,337 4,383 1,589 307 6,279 Total product and service revenue 13,869 6,110 1,474 21,453 37,047 18,260 4,575 59,882 Collaboration revenue 7,163 — — 7,163 16,818 — — 16,818 Total revenues $ 21,032 $ 6,110 $ 1,474 $ 28,616 $ 53,865 $ 18,260 $ 4,575 $ 76,700 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Americas Europe and Middle East Asia Pacific Total Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 1,760 $ 1,392 $ 1,292 $ 4,444 $ 7,603 $ 4,231 $ 3,115 $ 14,949 Consumables 6,146 2,283 591 9,020 18,265 6,481 2,060 26,806 In vitro diagnostic kits 705 869 115 1,689 1,883 2,890 190 4,963 Total product revenue 8,611 4,544 1,998 15,153 27,751 13,602 5,365 46,718 Service revenue 1,348 367 47 1,762 3,179 962 131 4,272 Total product and service revenue 9,959 4,911 2,045 16,915 30,930 14,564 5,496 50,990 Collaboration revenue 10,101 — — 10,101 28,682 — — 28,682 Total revenues $ 20,060 $ 4,911 $ 2,045 $ 27,016 $ 59,612 $ 14,564 $ 5,496 $ 79,672
Schedule of New Accounting Pronouncements and Changes in Accounting PrinciplesIn accordance with the new revenue guidance, the disclosure of the impact of adoption of this new standard to our condensed consolidated statements of operations and balance sheets was as follows: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (in thousands, except per share amounts) As Reported Amounts under previous revenue standard Effect of Change As Reported Amounts under previous revenue standard Effect of Change Revenue: Product and service $ 21,453 $ 21,272 $ 181 $ 59,882 $ 59,303 $ 579 Collaboration 7,163 7,163 — 16,818 16,818 — Total revenue 28,616 28,435 181 76,700 76,121 579 Net loss $ (16,486 ) $ (16,667 ) $ 181 $ (56,290 ) $ (56,869 ) $ 579 Net loss per share - basic and diluted $ (0.56 ) $ (0.57 ) $ 0.01 $ (2.09 ) $ (2.11 ) $ 0.02 September 30, 2018 (in thousands) As Reported Balances under previous revenue standard Effect of Change Liabilities: Deferred revenue, current portion $ 8,905 $ 8,730 $ 175 Stockholders' equity Accumulated deficit $ (370,146 ) $ (369,971 ) $ (175 )

Short-term Investments (Tables)

Short-term Investments (Tables)9 Months Ended
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Short-Term Investments Available-for-Sale SecuritiesShort-term investments consisted of available-for-sale securities as follows (in thousands): Type of securities as of September 30, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate debt securities $ 48,971 $ — $ (19 ) $ 48,952 U.S. government-related debt securities 17,916 — (34 ) 17,882 Asset-backed securities 6,898 — (1 ) 6,897 Total available-for-sale securities $ 73,785 $ — $ (54 ) $ 73,731 Type of securities as of December 31, 2017 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate debt securities $ 35,567 $ — $ (53 ) $ 35,514 U.S. government-related debt securities 15,951 — (46 ) 15,905 Total available-for-sale securities $ 51,518 $ — $ (99 ) $ 51,419
Fair Values of Available-for-Sale Securities by Contractual MaturityThe fair values of available-for-sale securities by contractual maturity were as follows (in thousands): September 30, 2018 December 31, 2017 Maturing in one year or less $ 73,731 $ 39,985 Maturing in one to three years — 11,434 Total available-for-sale securities $ 73,731 $ 51,419
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]The following table summarizes investments that have been in a continuous unrealized loss position as of September 30, 2018 (in thousands). Less Than 12 Months 12 Months or Greater Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Corporate debt securities $ 19,965 $ (19 ) $ — $ — $ 19,965 $ (19 ) U.S. government-related debt securities 17,883 (34 ) — — 17,883 (34 ) Asset-backed securities 4,456 (1 ) — — 4,456 (1 ) Total $ 42,304 $ (54 ) $ — $ — $ 42,304 $ (54 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)9 Months Ended
Sep. 30, 2018
Fair Value Disclosures [Abstract]
Company's Available-for-Sale Securities by Level within Fair Value HierarchyThe Company’s available-for-sale securities by level within the fair value hierarchy were as follows (in thousands): As of September 30, 2018 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 13,761 $ — $ — $ 13,761 Short-term investments: Corporate debt securities — 48,952 — 48,952 U.S. government-related debt securities — 17,882 — 17,882 Asset-backed securities — 6,897 — 6,897 Total $ 13,761 $ 73,731 $ — $ 87,492 As of December 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 22,398 $ — $ — $ 22,398 Short-term investments: Corporate debt securities — 35,514 — 35,514 U.S. government-related debt securities — 15,905 — 15,905 Total $ 22,398 $ 51,419 $ — $ 73,817

Inventory (Tables)

Inventory (Tables)9 Months Ended
Sep. 30, 2018
Inventory Disclosure [Abstract]
Schedule of InventoryInventory consisted of the following as of the date indicated (in thousands): September 30, 2018 December 31, 2017 Raw materials $ 3,026 $ 5,743 Work in process 4,741 4,845 Finished goods 7,251 9,469 Total inventory $ 15,018 $ 20,057

Long-term Debt (Tables)

Long-term Debt (Tables)9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]
Components of Borrowings, Including Current PortionLong-term debt consisted of the following (in thousands): September 30, 2018 December 31, 2017 Term loans payable $ 50,446 $ 49,315 Unamortized debt issuance costs (313 ) (384 ) Long-term debt, net of debt issuance costs $ 50,133 $ 48,931
Scheduled Future Principal Payments under Outstanding Debt ObligationsScheduled future principal payments for outstanding debt were as follows at September 30, 2018 (in thousands): Years Ending December 31, Remainder of 2018 $ — 2019 — 2020 — 2021 37,834 2022 12,612 $ 50,446

Information about Geographic _2

Information about Geographic Areas (Tables)9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]
Classification of Revenue by GeographyRevenue by geography was as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Americas $ 21,032 $ 20,060 $ 53,865 $ 59,612 Europe & Middle East 6,110 4,911 18,260 14,564 Asia Pacific 1,474 2,045 4,575 5,496 Total revenue $ 28,616 $ 27,016 $ 76,700 $ 79,672

Description of Business - Addit

Description of Business - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions1 Months Ended9 Months Ended
Jul. 31, 2018Jan. 31, 2018Sep. 30, 2018Sep. 30, 2017
Subsidiary, Sale of Stock [Line Items]
Proceeds from sale of common stock, net $ 53,847 $ 56,486
At The Market Equity Offering
Subsidiary, Sale of Stock [Line Items]
Proceeds from sale of common stock, net $ 40,000
Commission expense, percentage3.00%
Public Stock Offering
Subsidiary, Sale of Stock [Line Items]
Shares sold in offering4.6
Total gross proceeds from stock offering $ 57,500
Aggregate net proceeds from stock offering $ 53,800
Over-Allotment Option [Member]
Subsidiary, Sale of Stock [Line Items]
Shares sold in offering0.6

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail)9 Months Ended
Sep. 30, 2018
Significant Accounting Policies [Line Items]
Standard warranty period12 months
Minimum
Significant Accounting Policies [Line Items]
Extended warranty period12 months
Maximum
Significant Accounting Policies [Line Items]
Extended warranty period36 months

Net Loss Per Share - Summary of

Net Loss Per Share - Summary of Shares Underlying Outstanding Options and Warrants were Excluded from Computation of Basic and Diluted Net Loss Per Share (Detail) - shares shares in Thousands3 Months Ended9 Months Ended
Sep. 30, 2018Sep. 30, 2017Sep. 30, 2018Sep. 30, 2017
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)5,302 5,443 5,496 5,337
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)1,194 260 1,135 260
Common stock warrants | Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)551 270 460 311

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Narrative (Details) - USD ($)3 Months Ended9 Months Ended
Sep. 30, 2018Sep. 30, 2018Jan. 01, 2018Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Customer deposits $ 10,208,000 $ 10,208,000 $ 8,945,000
Contract liabilities(12,500,000)(12,500,000) $ (12,500,000)
Performance obligation satisfied in previous period22,500,000
Cash payments received form customers23,500,000
Contract assets0 0
Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue recognized during period of adoption(200,000)
Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract liabilities $ 1,200,000 1,200,000
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue recognized during period of adoption $ (579,000)
Retained Earnings | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cumulative impact of new standard $ 800,000

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Sep. 30, 2018Sep. 30, 2017Sep. 30, 2018Sep. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue $ 28,616 $ 27,016 $ 76,700 $ 79,672
Instruments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue5,429 4,444 15,591 14,949
Consumables
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue11,140 9,020 30,778 26,806
In vitro diagnostic kits
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue2,547 1,689 7,234 4,963
Total product revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue19,116 15,153 53,603 46,718
Service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue2,337 1,762 6,279 4,272
Total product and service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue21,453 16,915 59,882 50,990
Collaboration revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue7,163 10,101 16,818 28,682
Americas
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue21,032 20,060 53,865 59,612
Americas | Instruments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue3,696 1,760 9,512 7,603
Americas | Consumables
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue7,808 6,146 20,770 18,265
Americas | In vitro diagnostic kits
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue783 705 2,382 1,883
Americas | Total product revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue12,287 8,611 32,664 27,751
Americas | Service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue1,582 1,348 4,383 3,179
Americas | Total product and service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue13,869 9,959 37,047 30,930
Americas | Collaboration revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue7,163 10,101 16,818 28,682
Europe and Middle East
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue6,110 4,911 18,260 14,564
Europe and Middle East | Instruments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue1,149 1,392 4,189 4,231
Europe and Middle East | Consumables
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue2,633 2,283 7,882 6,481
Europe and Middle East | In vitro diagnostic kits
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue1,687 869 4,600 2,890
Europe and Middle East | Total product revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue5,469 4,544 16,671 13,602
Europe and Middle East | Service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue641 367 1,589 962
Europe and Middle East | Total product and service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue6,110 4,911 18,260 14,564
Europe and Middle East | Collaboration revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue0 0 0 0
Asia Pacific
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue1,474 2,045 4,575 5,496
Asia Pacific | Instruments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue584 1,292 1,890 3,115
Asia Pacific | Consumables
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue699 591 2,126 2,060
Asia Pacific | In vitro diagnostic kits
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue77 115 252 190
Asia Pacific | Total product revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue1,360 1,998 4,268 5,365
Asia Pacific | Service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue114 47 307 131
Asia Pacific | Total product and service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue1,474 2,045 4,575 5,496
Asia Pacific | Collaboration revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue $ 0 $ 0 $ 0 $ 0

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) $ in MillionsSep. 30, 2018USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation $ 16.7
Total Products And Services
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation $ 6

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Schedule of Impact of Changes in Accounting Standard (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended9 Months Ended
Sep. 30, 2018Sep. 30, 2017Sep. 30, 2018Sep. 30, 2017Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Product and service $ 21,453 $ 16,915 $ 59,882 $ 50,990
Collaboration7,163 10,101 16,818 28,682
Total revenue28,616 27,016 76,700 79,672
Net loss $ (16,486) $ (11,404) $ (56,290) $ (34,811)
Net loss per share - basic and diluted (in dollars per share) $ (0.56) $ (0.45) $ (2.09) $ (1.50)
Deferred revenue, current portion $ 8,905 $ 8,905 $ 9,229
Accumulated deficit(370,146)(370,146) $ (313,102)
Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue recognized during period of adoption(200)
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Product and service181
Revenue recognized during period of adoption(579)
Recognition of Deferred Revenue0 0
Total revenue181 579
Net loss $ 181 $ 579
Net loss per share - basic and diluted (in dollars per share) $ 0.01 $ 0.02
Deferred revenue, current portion $ 175 $ 175
Accumulated deficit(175)(175)
Calculated under Revenue Guidance in Effect before Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Product and service21,272 59,303
Recognition of Deferred Revenue7,163 16,818
Total revenue28,435 76,121
Net loss $ (16,667) $ (56,869)
Net loss per share - basic and diluted (in dollars per share) $ (0.57) $ (2.11)
Deferred revenue, current portion $ 8,730 $ 8,730
Accumulated deficit $ (369,971) $ (369,971)

Concentration of Risks - Additi

Concentration of Risks - Additional Information (Detail) - Customer Concentration Risk - Total revenue3 Months Ended9 Months Ended
Sep. 30, 2018Sep. 30, 2017Sep. 30, 2017
Lam Research Corporation
Concentration Risk [Line Items]
Concentration risk percentage18.00%18.00%
Merck Sharp & Dohme Corp.
Concentration Risk [Line Items]
Concentration risk percentage34.00%21.00%
Merck Sharp & Dohme Corp.
Concentration Risk [Line Items]
Concentration risk percentage14.00%

Short-term Investments - Availa

Short-term Investments - Available-for-Sale Securities (Detail) - USD ($) $ in ThousandsSep. 30, 2018Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Amortized cost $ 73,785 $ 51,518
Gross unrealized gains0 0
Gross unrealized losses(54)(99)
Fair value73,731 51,419
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized cost48,971 35,567
Gross unrealized gains0 0
Gross unrealized losses(19)(53)
Fair value48,952 35,514
U.S. government-related debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized cost17,916 15,951
Gross unrealized gains0 0
Gross unrealized losses(34)(46)
Fair value17,882 $ 15,905
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost6,898
Gross unrealized gains0
Gross unrealized losses(1)
Fair value $ 6,897

Short-term Investments - Fair V

Short-term Investments - Fair Values of Available-for-Sale Securities by Contractual Maturity (Detail) - USD ($) $ in ThousandsSep. 30, 2018Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Maturing in one year or less $ 73,731 $ 39,985
Maturing in one to three years0 11,434
Total available-for-sale securities $ 73,731 $ 51,419

Short-term Investments - Summar

Short-term Investments - Summary of Investments in a Continuous Loss Position (Details) $ in ThousandsSep. 30, 2018USD ($)
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair value $ 42,304
Less Than 12 Months, Gross unrealized losses(54)
12 Months or Greater, Fair value0
12 Months or Greater, Gross unrealized losses0
Total, Fair value42,304
Total, Gross unrealized losses(54)
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair value19,965
Less Than 12 Months, Gross unrealized losses(19)
12 Months or Greater, Fair value0
12 Months or Greater, Gross unrealized losses0
Total, Fair value19,965
Total, Gross unrealized losses(19)
U.S. government-related debt securities
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair value17,883
Less Than 12 Months, Gross unrealized losses(34)
12 Months or Greater, Fair value0
12 Months or Greater, Gross unrealized losses0
Total, Fair value17,883
Total, Gross unrealized losses(34)
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair value4,456
Less Than 12 Months, Gross unrealized losses(1)
12 Months or Greater, Fair value0
12 Months or Greater, Gross unrealized losses0
Total, Fair value4,456
Total, Gross unrealized losses $ (1)

Short-term Investments - Additi

Short-term Investments - Additional Information (Detail)9 Months Ended
Sep. 30, 2018USD ($)
Investments, Debt and Equity Securities [Abstract]
Investments that were other-than-temporarily impaired $ 0

Fair Value Measurements - Compa

Fair Value Measurements - Company's Available-for-Sale Securities by Level within Fair Value Hierarchy (Detail) - USD ($) $ in ThousandsSep. 30, 2018Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments $ 73,731 $ 51,419
Total87,492 73,817
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments48,952 35,514
U.S. government-related debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments17,882 15,905
Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments6,897
Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents13,761 22,398
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total13,761 22,398
Level 1 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments0 0
Level 1 | U.S. government-related debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments0 0
Level 1 | Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments0
Level 1 | Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents13,761 22,398
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total73,731 51,419
Level 2 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments48,952 35,514
Level 2 | U.S. government-related debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments17,882 15,905
Level 2 | Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments6,897
Level 2 | Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents0 0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total0 0
Level 3 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments0 0
Level 3 | U.S. government-related debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments0 0
Level 3 | Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments0
Level 3 | Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents $ 0 $ 0

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Detail) - USD ($) $ in ThousandsSep. 30, 2018Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials $ 3,026 $ 5,743
Work in process4,741 4,845
Finished goods7,251 9,469
Inventory, net $ 15,018 $ 20,057

Long-term Debt - Additional Inf

Long-term Debt - Additional Information (Detail)1 Months Ended9 Months Ended
Jan. 31, 2018USD ($)Sep. 30, 2018USD ($)installmentDec. 31, 2017USD ($)Mar. 31, 2017USD ($)Jun. 30, 2016USD ($)Dec. 31, 2015USD ($)Oct. 31, 2015USD ($)Oct. 31, 2014USD ($)Apr. 30, 2014USD ($)
Line of Credit Facility [Line Items]
Term loans payable $ 50,446,000 $ 49,315,000
Term Loan Agreement
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity $ 60,000,000 $ 45,000,000
Credit facility, additional borrowing capacity $ 5,000,000 $ 10,000,000 $ 10,000,000
Unused borrowing capacity, amount $ 15,000,000
Percentage of accrue interest12.00%12.50%
Percentage of deferred payment3.00%
Interest deferral period6 years
Deferred interest payment $ 5,400,000
Term loans payable $ 50,400,000 $ 49,300,000
Interest payment period7 years
Number of installments | installment4
Percentage payment up on repayment of principal amount2.00%
Long term liability $ 1,100,000
Minimum liquidity2,000,000
Annual revenue requirements100,000,000
Increase in annual revenue in fiscal years15,000,000
Term Loan Agreement | Maximum
Line of Credit Facility [Line Items]
Credit facility, additional borrowing capacity $ 20,000,000
Revolving Credit Facility | Secured Revolving Loan Facility
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity $ 15,000,000
Variable rate4.75%
Percentage of accrue interest8.75%
Long-term Line of Credit $ 0
Prime Rate | Revolving Credit Facility | Secured Revolving Loan Facility
Line of Credit Facility [Line Items]
Variable rate0.50%

Long-term Debt - Components of

Long-term Debt - Components of Borrowings, Including Current Portion (Detail) - USD ($)Sep. 30, 2018Dec. 31, 2017Mar. 31, 2017
Debt Instrument [Line Items]
Term loans payable $ 50,446,000 $ 49,315,000
Unamortized debt issuance costs(313,000)(384,000)
Long-term debt, net of debt issuance costs50,133,000 48,931,000
Term Loan Agreement
Debt Instrument [Line Items]
Term loans payable50,400,000 $ 49,300,000
Long-term debt, net of debt issuance costs $ 50,133,000 $ 48,931,000

Long-term Debt - Scheduled Futu

Long-term Debt - Scheduled Future Principal Payments under Outstanding Debt Obligations (Detail) $ in ThousandsSep. 30, 2018USD ($)
Debt Disclosure [Abstract]
Remainder of 2018 $ 0
2,019 0
2,020 0
2,021 37,834
2,022 12,612
Total long-term debt and lease financing obligations $ 50,446

Collaboration Agreements - Addi

Collaboration Agreements - Additional Information (Detail)1 Months Ended3 Months Ended7 Months Ended9 Months Ended34 Months Ended
Aug. 31, 2017USD ($)employee$ / sharessharesMar. 31, 2014USD ($)Sep. 30, 2018USD ($)sharesSep. 30, 2017USD ($)Dec. 31, 2015USD ($)Sep. 30, 2018USD ($)Sep. 30, 2017USD ($)Dec. 31, 2016USD ($)Dec. 31, 2017USD ($)
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration $ 7,163,000 $ 10,101,000 $ 16,818,000 $ 28,682,000
Estimated deferred revenue recognized within one year8,905,000 $ 8,905,000 $ 9,229,000
Collaborative Arrangement
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative agreement period1 year
Collaborative Arrangement | Celgene Corporation
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration1,600,000 (100,000) $ 1,400,000 500,000
Deferred revenue recorded under collaboration agreement4,800,000 4,800,000
Estimated deferred revenue recognized within one year3,900,000 3,900,000
Maximum success-based milestone payments $ 21,500,000
Collaborative Arrangement | Celgene Corporation | Maximum
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Maximum success-based milestone payments27,300,000
Collaborative Arrangement | Celgene Corporation | Upfront Payment Arrangement
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration agreement upfront payment $ 5,800,000 $ 2,100,000
Collaborative Arrangement | Merck Sharp & Dohme Corp.
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration200,000 8,800,000 1,600,000 15,400,000
Proceeds from collaborators100,000 $ 2,300,000 1,000,000 5,600,000
Deferred revenue recorded under collaboration agreement0 0
Collaborative Arrangement | Merck Sharp & Dohme Corp. | Upfront Payment Arrangement
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration8,500,000
Proceeds from collaborators $ 3,900,000 $ 12,000,000
Collaborative Arrangement | Lam Research Corporation
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration5,300,000 13,400,000
Maximum amount of royalties payable (ratio)3
Maximum number of employees | employee10
Exercise price of warrants | $ / shares $ 16.75
Issued warrants, value $ 6,700,000
Proceeds from collaborators7,000,000 18,400,000
Deferred revenue recorded under collaboration agreement2,000,000 2,000,000
Estimated deferred revenue recognized within one year1,200,000 1,200,000
Customer deposits9,600,000 9,600,000
nstg_ReimbursementOfCounterpartyCosts100,000 200,000
Amounts due for services provided0 $ 0
Payments for services provided $ 0
Number of warrants exercised | shares0
Collaborative Arrangement | Lam Research Corporation | Maximum
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration $ 50,000,000
Number of warrants, outstanding | shares1,000,000

Information about Geographic _3

Information about Geographic Areas - Additional Information (Detail) $ in Thousands3 Months Ended9 Months Ended
Sep. 30, 2018USD ($)Sep. 30, 2017USD ($)Sep. 30, 2018USD ($)sales_forceSegmentSep. 30, 2017USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of sales forces | sales_force1
Number of reportable segment | Segment1
Total revenue $ 28,616 $ 27,016 $ 76,700 $ 79,672
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue $ 20,400 $ 19,700

Information about Geographic _4

Information about Geographic Areas - Classification of Revenue by Geography (Detail) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Sep. 30, 2018Sep. 30, 2017Sep. 30, 2018Sep. 30, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue $ 28,616 $ 27,016 $ 76,700 $ 79,672
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue21,032 20,060 53,865 59,612
Europe & Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue6,110 4,911 18,260 14,564
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue $ 1,474 $ 2,045 $ 4,575 $ 5,496

Subsequent Event - Narrative (D

Subsequent Event - Narrative (Details) - USD ($)1 Months Ended
Oct. 31, 2018Sep. 30, 2018Dec. 31, 2017
Subsequent Event [Line Items]
Term loans payable $ 50,446,000 $ 49,315,000
Subsequent event
Subsequent Event [Line Items]
Number of warrants (in shares)341,578
Exercise price per share (in dollars per share) $ 21.12
Number of additional warrants to be issued on future draw, percentage of diluted shares outstanding (as a percentage)0.30%
Percentage premium to average closing trading price (as a percentage)25.00%
CRG Servicing LLC Amended and Restated Loan Agreement | Subsequent event
Subsequent Event [Line Items]
Credit facility, maximum borrowing capacity $ 100,000,000
Proceeds from debt net of debt extinguishment and costs7,800,000
Proceeds from borrowings60,000,000
Term loans payable50,400,000
Additional borrowing capacity $ 40,000,000
Percentage of accrue interest10.50%
Percentage of deferred payment3.00%
Interest deferral period6 years
Upfront fee of aggregate principal amount (as a percentage)0.50%
Percentage payment up on repayment of principal amount2.00%
June 30, 2019 | CRG Servicing LLC Amended and Restated Loan Agreement | Subsequent event
Subsequent Event [Line Items]
Credit facility, additional borrowing capacity $ 20,000,000
After December 31, 2019 | Subsequent event
Subsequent Event [Line Items]
Credit facility, additional borrowing capacity $ 20,000,000