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Nanostring (NSTG)

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 31, 2019May 06, 2019
Document And Entity Information [Abstract]
Document Type10-Q
Amendment Flagfalse
Document Period End DateMar. 31,
2019
Document Fiscal Year Focus2019
Document Fiscal Period FocusQ1
Trading SymbolNSTG
Entity Registrant NameNANOSTRING TECHNOLOGIES INC
Entity Central Index Key0001401708
Current Fiscal Year End Date--12-31
Entity Filer CategoryAccelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Common Stock, Shares Outstanding35,048,894

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in ThousandsMar. 31, 2019Dec. 31, 2018
Current assets:
Cash and cash equivalents $ 84,109 $ 24,356
Short-term investments58,288 69,641
Accounts receivable, net18,081 17,279
Inventory, net12,971 13,173
Prepaid expenses and other8,642 7,258
Total current assets182,091 131,707
Property and equipment, net14,405 15,171
Operating lease right-of-use assets23,605 0
Other assets642 680
Total assets220,743 147,558
Current liabilities:
Accounts payable6,750 8,636
Accrued liabilities4,840 3,705
Accrued compensation and other employee benefits7,289 12,060
Customer deposits5,941 8,167
Deferred revenue, current portion9,476 9,890
Deferred rent, current portion0 657
Operating lease liabilities, current portion3,413 0
Total current liabilities37,709 43,115
Deferred revenue, net of current portion1,201 1,620
Deferred rent and other long-term liabilities109 7,558
Long-term debt, net of discounts58,930 58,396
Operating lease liabilities, net of current portion28,194 0
Total liabilities126,143 110,689
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; 35,044 and 30,913 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively3 3
Additional paid-in capital507,730 428,162
Accumulated other comprehensive income (loss)21 (40)
Accumulated deficit(413,154)(391,256)
Total stockholders’ equity94,600 36,869
Total liabilities and stockholders’ equity $ 220,743 $ 147,558

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / sharesMar. 31, 2019Dec. 31, 2018
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)35,044,131 30,913,397
Common stock, shares outstanding (in shares)35,044,131 30,913,397

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands3 Months Ended
Mar. 31, 2019Mar. 31, 2018
Revenue:
Revenue $ 27,688 $ 23,085
Total revenue27,688 23,085
Costs and expenses:
Cost of product and service revenue8,709 7,695
Research and development16,027 13,832
Selling, general and administrative23,436 19,437
Total costs and expenses48,172 40,964
Loss from operations(20,484)(17,879)
Other income (expense):
Interest income523 238
Interest expense(1,748)(1,563)
Other income (expense), net(110)65
Total other income (expense), net(1,335)(1,260)
Net loss before provision for income tax(21,819)(19,139)
Provision for income tax(79)(63)
Net loss $ (21,898) $ (19,202)
Net loss per share - basic and diluted (in dollars per share) $ (0.69) $ (0.75)
Weighted average shares used in computing basic and diluted net loss per share (in shares)31,569 25,479
Total product and service revenue
Revenue:
Revenue $ 21,350 $ 18,045
Collaboration revenue
Revenue:
Revenue $ 6,338 $ 5,040

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2019Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net loss $ (21,898) $ (19,202)
Change in unrealized gain (loss) on short-term investments61 (13)
Comprehensive loss $ (21,837) $ (19,215)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders' Deficit Statement - USD ($) shares in Thousands, $ in ThousandsTotalAccumulated DeficitOther Comprehensive LossAdditional Paid-in CapitalCommon Stock
Shares, Outstanding25,421
Stockholders' Equity Attributable to Parent $ 40,109 $ (313,102) $ (99) $ 353,308 $ 2
Adjustments to Additional Paid in Capital, Warrant Issued748 748
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period139
Stock Issued During Period, Value, Stock Options Exercised411 411
Stock Issued During Period, Shares, Employee Stock Purchase Plans136
Stock Issued During Period, Value, Employee Stock Purchase Plan767 767
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition2,945 2,945
Net loss(19,202)(19,202)
Other Comprehensive Income (Loss), Net of Tax(13)(13)
Shares, Outstanding25,696
Stockholders' Equity Attributable to Parent25,011 (333,058)(112)358,179 $ 2
Cumulative Effect of New Accounting Principle in Period of Adoption[1](754)(754)
Shares, Outstanding30,913
Stockholders' Equity Attributable to Parent36,869 (391,256)(40)428,162 $ 3
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs4,700
Stock Issued During Period, Shares, New Issues3,175
Stock Issued During Period, Value, New Issues68,273 68,273 $ 0
Adjustments to Additional Paid in Capital, Warrant Issued698 698
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period805
Stock Issued During Period, Value, Stock Options Exercised8,075 8,075
Stock Issued During Period, Shares, Employee Stock Purchase Plans151
Stock Issued During Period, Value, Employee Stock Purchase Plan939 939
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures0
Stock Issued During Period, Value, Restricted Stock Award, Gross(1,299)(1,299)
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition2,882 2,882
Net loss(21,898)
Other Comprehensive Income (Loss), Net of Tax61 61
Shares, Outstanding35,044
Stockholders' Equity Attributable to Parent $ 94,600 $ (413,154) $ 21 $ 507,730 $ 3
[1]Effective January 1, 2018, we adopted Accounting Standard Update No. 2014-09, Revenue from Contracts with Customers. See Note 2. Significant Accounting Policies and Note 3. Revenue from Contracts with Customers for more information.

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2019Mar. 31, 2018
Right-of-use assets obtained in exchange for lease obligations $ 24,257 $ 0
Operating activities
Net loss(21,898)(19,202)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization1,177 905
Amortization of right-of-use assets651 0
Stock-based compensation expense2,882 2,945
Amortization of premium on short-term investments(6)66
Amortization of deferred financing costs163 84
Conversion of accrued interest to long-term debt453 370
Provision for bad debts38 207
Inventory Write-down442 0
Changes in operating assets and liabilities:
Accounts receivable(833)3,056
Inventory(465)817
Prepaid expenses and other assets(1,377)(1,082)
Accounts payable(1,893)716
Accrued liabilities1,124 (1,804)
Accrued compensation and other employee benefits(4,765)(2,792)
Customer deposits(2,226)(2,190)
Deferred revenue(833)178
Operating lease liabilities(811)0
Deferred rent and other liabilities0 (124)
Net cash used in operating activities(28,177)(17,850)
Investing activities
Purchases of property and equipment(165)(1,106)
Proceeds from sale of short-term investments0 2,700
Proceeds from maturity of short-term investments39,520 9,780
Purchases of short-term investments(28,100)(6,000)
Net cash provided by investing activities11,255 5,374
Financing activities
Proceeds from sale of common stock, net68,273 0
Proceeds from issuance of common stock warrants697 748
Tax withholdings related to net share settlements of restricted stock units(1,299)(108)
Proceeds from issuance of common stock for employee stock purchase plan939 767
Proceeds from exercise of stock options8,075 411
Net cash provided by financing activities76,685 1,818
Net increase (decrease) in cash, cash equivalents59,763 (10,658)
Effect of exchange rate changes on cash and cash equivalents(10)28
Cash and cash equivalents
Beginning of period24,356 26,279
End of period84,109 $ 15,649
Cash and cash equivalents $ 24,356

Description of Business

Description of Business3 Months Ended
Mar. 31, 2019
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 proprietary optical barcoding chemistry 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 and its Prosigna Breast Cancer Assay, to academic, government, biopharmaceutical and clinical laboratory customers. 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 March 2019, the Company completed an underwritten public offering of 5,175,000 shares of common stock, which included 2,500,000 shares issued and sold by the Company, 2,000,000 shares sold by a related party stockholder, and the exercise by the underwriter of an over-allotment option for 675,000 shares of common stock. The Company's total gross proceeds were $73.0 million . The Company did not receive any proceeds from the sale of shares of common stock by the related party stockholder. After underwriter’s commissions and other expenses of the offering, the Company’s aggregate net proceeds were approximately $68.3 million . 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 . 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 automatically terminates 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 March 2019, the Company terminated this agreement and there were no shares of common stock sold under this agreement.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting PoliciesSummary 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, 2018 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, 2018 . 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 month period ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year or for any other period. 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 commercial 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. 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. Performance obligations for consumable products are generally completed upon shipment 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, training to the customer is a required performance obligation that must be provided by the Company prior to any revenue recognition related to the instrument sale. 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. Reclassifications Certain reclassifications have been made to prior year financial statements to conform to current year presentation. Recently Adopted Accounting Pronouncements 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 became effective for the Company beginning January 1, 2019, and did not have a material impact on its results of operations, financial condition, cash flows or financial statement disclosures, as the Company has not historically recorded the tax effects within accumulated other comprehensive income. The Company maintains a full valuation allowance for its net deferred tax assets. Leases 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. On January 1, 2019, the Company adopted the new accounting standard for leases provided in “ASU 2016-02, Leases – Recognition and Measurement of Financial Assets and Financial Liabilities” and has elected the optional modified transition method. Accordingly, all periods prior to January 1, 2019 were presented in accordance with the previous ASC Topic 840, Leases, and no retrospective adjustments were made to the comparative periods presented. The adoption of the standard had a material impact on our condensed consolidated balance sheet as of March 31, 2019, but did not have a material impact on the Company’s condensed consolidated statements of operations or condensed consolidated statements of cash flows. Upon adoption, the Company recognized operating lease right-of-use assets, current and non-current operating lease liabilities, and derecognized current and non-current deferred rent liabilities, with no cumulative-effect adjustment to the opening balance of retained earnings. The Company elected the package of practical expedients permitted under the transition guidance within the new standard which, among other things, allowed the carry forward of the historical lease classification and assessment of prior conclusions about lease identification. In addition, the Company elected, as an accounting policy election, to use the short-term lease recognition exemption on all classes of assets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company determines if an arrangement is a lease at inception of a contract. The Company’s leasing portfolio is comprised of operating leases primarily for general office, manufacturing, and research and development purposes. Operating lease liabilities and the corresponding right-of-use assets are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The operating lease right-of-use asset is reduced by lease incentives included in the agreement. As the existing leases do not contain an implicit interest rate, the Company estimates its incremental borrowing rate based on information available at commencement date in determining the present value of future payments. The Company includes options to extend the lease in the lease liability and right-of-use asset when it is reasonably certain that the option will be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For our short-term leases, we recognize lease payments as an expense on a straight-line basis over the lease term. See Note 4. Leases for additional information regarding lease agreements. Recent Accounting Pronouncements 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 investment 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 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. In November 2018, the FASB issued “ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606.” The new guidance clarifies when certain transactions between collaborative arrangement participants which should be accounted for as revenue under Topic 606. 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.

Revenue from Contracts with Cus

Revenue from Contracts with Customers3 Months Ended
Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with CustomersRevenue from Contracts with Customers Disaggregated Revenues The following table provides information about disaggregated revenue by major product line and primary geographic market (in thousands): Three Months Ended March 31, 2019 Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 2,189 $ 1,530 $ 599 $ 4,318 Consumables 8,176 3,244 726 12,146 In vitro diagnostic kits 430 1,812 72 2,314 Total product revenue 10,795 6,586 1,397 18,778 Service revenue 1,794 614 164 2,572 Total product and service revenue 12,589 7,200 1,561 21,350 Collaboration revenue 6,338 — — 6,338 Total revenues $ 18,927 $ 7,200 $ 1,561 $ 27,688 Three Months Ended March 31, 2018 Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 2,686 $ 1,485 $ 503 $ 4,674 Consumables 6,160 2,377 820 9,357 In vitro diagnostic kits 681 1,397 88 2,166 Total product revenue 9,527 5,259 1,411 16,197 Service revenue 1,261 499 88 1,848 Total product and service revenue 10,788 5,758 1,499 18,045 Collaboration revenue 5,040 — — 5,040 Total revenues $ 15,828 $ 5,758 $ 1,499 $ 23,085 Contract balances and remaining performance obligations Contract liabilities are comprised of the current and long-term portions of deferred revenue of $10.7 million and $11.5 million as of March 31, 2019 and December 31, 2018 , respectively, and within customer deposits of $5.9 million and $8.2 million as of March 31, 2019 and December 31, 2018 , respectively, on the condensed consolidated balance sheets. Total contract liabilities decreased by $3.1 million for the three months ended March 31, 2019 as a result of cash payments received of $4.9 million related to our collaborations and service contracts, offset by the recognition of previously deferred revenue of $7.9 million for the completion of certain performance obligations during the period. The Company did not record any contract assets as of March 31, 2019 . Unsatisfied or partially unsatisfied performance obligations related to collaboration agreements as of March 31, 2019 were $9.7 million and are expected to be completed over the period of each collaboration agreement, through December 2019. Performance obligations related to product and service contracts as of March 31, 2019 were $7.0 million and are expected to be completed over the term of the related contract, through February 2024.

Operating Leases

Operating Leases3 Months Ended
Mar. 31, 2019
Leases [Abstract]
Operating LeasesOperating Leases The Company maintains operating leases for our manufacturing, research and development and general operations with terms that expire from 2020 to 2026 and include renewal options to extend the lease term at the then current fair market rental for each of the lease agreements. None of the options to extend the rental term of existing leases were considered reasonably certain as of March 31, 2019 . The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. The components of lease expense were as follows (in thousands): Three Months Ended March 31, 2019 Operating lease cost $ 1,413 Other information related to leases was as follows (in thousands, except lease term and discount rate): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,373 Weighted Average Remaining Lease Term (years) 7.1 Weighted Average Discount Rate 7.0 % Future minimum lease payments under the lease agreements as of March 31, 2019 were as follows (in thousands): Remainder of 2019 $ 4,118 2020 5,560 2021 5,593 2022 5,708 2023 5,869 Thereafter 13,367 Total future minimum lease payments $ 40,215 Less: imputed interest (8,608 ) Total $ 31,607 Disclosures related to periods prior to adoption Future minimum lease payments under non-cancellable leases as of December 31, 2018 were as follows (in thousands): 2019 $ 5,526 2020 5,560 2021 5,593 2022 5,708 2023 5,869 Thereafter 13,458 Total future minimum lease payments $ 41,714

Net Loss Per Share

Net Loss Per Share3 Months Ended
Mar. 31, 2019
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 (in thousands): Three Months Ended 2019 2018 Options to purchase common stock 4,837 5,665 Restricted stock units 1,207 1,018 Common stock warrants 907 357

Concentration of Risks

Concentration of Risks3 Months Ended
Mar. 31, 2019
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 significant credit losses to date. The Company had one customer/collaborator, Lam Research Corporation (“Lam”) that individually represented 17% and 18% of total revenue during the three months ended March 31, 2019 and 2018 , respectively. The Company had no customers or collaborators that represented more than 10% of total accounts receivable as of March 31, 2019 or December 31, 2018 . 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 Investments3 Months Ended
Mar. 31, 2019
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 March 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate debt securities $ 39,914 $ 15 $ — $ 39,929 U.S. government-related debt securities 10,926 3 — 10,929 Asset-backed securities 7,427 3 — 7,430 Total available-for-sale securities $ 58,267 $ 21 $ — $ 58,288 Type of securities as of December 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate debt securities $ 47,299 $ 1 $ (21 ) $ 47,279 U.S. government-related debt securities 14,972 — (11 ) 14,961 Asset-backed securities 7,410 — (9 ) 7,401 Total available-for-sale securities $ 69,681 $ 1 $ (41 ) $ 69,641 The fair values of available-for-sale securities by contractual maturity were as follows (in thousands): March 31, 2019 December 31, 2018 Maturing in one year or less $ 58,288 $ 69,641 Maturing in one to three years — — Total available-for-sale securities $ 58,288 $ 69,641

Fair Value Measurements

Fair Value Measurements3 Months Ended
Mar. 31, 2019
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 March 31, 2019 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 81,282 $ — $ — $ 81,282 Short-term investments: Corporate debt securities — 39,929 — 39,929 U.S. government-related debt securities — 10,929 — 10,929 Asset-backed securities — 7,430 — 7,430 Total $ 81,282 $ 58,288 $ — $ 139,570 As of December 31, 2018 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 16,293 $ — $ — $ 16,293 Short-term investments: Corporate debt securities — 47,279 — 47,279 U.S. government-related debt securities — 14,961 — 14,961 Asset-backed securities — 7,401 — 7,401 Total $ 16,293 $ 69,641 $ — $ 85,934

Inventory

Inventory3 Months Ended
Mar. 31, 2019
Inventory Disclosure [Abstract]
InventoryInventory Inventory consisted of the following as of the date indicated (in thousands): March 31, 2019 December 31, 2018 Raw materials $ 2,634 $ 3,408 Work in process 3,877 4,054 Finished goods 6,460 5,711 Total inventory $ 12,971 $ 13,173

Long-term Debt

Long-term Debt3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]
Long-term DebtLong-term Debt Term Loan Agreements In April 2014, the Company entered into a term loan agreement (“2014 Term Loan”), under which it could borrow up to $45.0 million . In October 2015, the Company amended the 2014 Term Loan primarily to 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 borrowed a total of $45.0 million under the 2014 Term Loan through June 2016, excluding deferred interest. On December 31, 2016, the Company’s option to borrow the remaining $15.0 million under the 2014 Term Loan expired. In October 2018, the Company entered into an amended and restated term loan agreement (“2018 Term Loan”), under which it may borrow up to $100.0 million , which is due and payable in September 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 2014 Term Loan of $50.4 million , including deferred interest and transaction-related fees and expenses. Of the $40.0 million in additional borrowing capacity under the 2018 Term Loan, the Company has the option to borrow up to $20.0 million until June 2019 subject to no further terms and conditions, and up to an additional $20.0 million until March 2020, subject to the achievement of annual revenue thresholds on or prior to December 31, 2019. The term loan agreements involved multiple lenders who were considered members of a loan syndicate. In determining whether the most recent amendment was to be accounted for as a debt extinguishment or a debt modification, the Company considered whether lenders remained the same or changed. As all the lenders who were members of the loan syndicate changed as part of the amended and restated loan agreement, the 2014 Term Loan was extinguished, and the 2018 Term Loan was treated as a new borrowing. The extinguishment resulted in a loss of approximately $0.8 million for the year ended December 31, 2018, which was included in interest expense during the fourth quarter of 2018. The 2018 Term Loan accrues interest at a rate of 10.5% , payable quarterly, of which 3.0% 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 2018 Term Loan, and will pay a facility fee equal to 2.0% of the total amount borrowed including any deferred interest at the time the principal is repaid. A long-term liability of $1.4 million is being accreted using the effective interest method for the facility fee over the term of the 2018 Term Loan. Additional borrowings under the 2018 Term Loan will bear the same upfront and facility fees as the initial borrowing. In connection with 2018 Term Loan, 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 2018 Term Loan, 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 25.0% premium to the average closing trading price for the 30-day trading period as of the date immediately before the applicable draw date. The warrants issued in conjunction with the initial borrowing under the 2018 Term Loan were determined to be closely linked to the Company’s stock, and as such, were recorded as an equity security in additional paid in capital at their relative fair value of $1.6 million with a corresponding debt discount recorded against the 2018 Term Loan balance outstanding. Total borrowings and deferred interest under the 2018 Term Loan were $60.9 million and $60.4 million as of March 31, 2019 and December 31, 2018 , respectively. The balance of the 2018 Term Loan as of March 31, 2019 and December 31, 2018 is net of discounts related to the warrants, debt issuance costs and other upfront fees of $1.9 million and $2.0 million , respectively. The Company has the option to prepay the 2018 Term Loan, in whole or part, at any time subject to payment of a redemption fee of up to 4.0% , which declines 1.0% after the first year of the term, with no redemption fee payable if prepayment occurs after the second year of the loan. Obligations under the 2018 Term Loan are collateralized by substantially all of the Company’s assets. The 2018 Term Loan 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 2018 Term Loan also includes a $2.0 million minimum liquidity covenant and minimum annual revenue-based financial covenants. If the Company’s actual revenues are 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 revenues and the minimum revenue requirement. The Company incurred $1.7 million and $1.6 million of interest expense under the term loan agreements for the three months ended March 31, 2019 and 2018 , respectively. The Company was in compliance with its financial covenants under the term loan agreement as of March 31, 2019 . 2018 Revolving Loan Facility 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. In November 2018, the Company entered into an amended and restated loan and security agreement to increase the borrowing capacity under the facility to $20.0 million , amend the borrowing base to include finished goods inventory, and extend the final maturity under the facility to November 2021. As of March 31, 2019 and December 31, 2018 , no amounts had been drawn on the facility. 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. The Company was in compliance with its financial covenants under the the secured revolving loan facility as of March 31, 2019 . Long-term debt consisted of the following (in thousands): March 31, 2019 December 31, 2018 Borrowings under term loan agreements $ 60,000 $ 60,000 Paid in-kind interest on term loan agreements 853 400 Unamortized debt discounts (1,923 ) (2,004 ) Long-term debt, net of discounts $ 58,930 $ 58,396 Scheduled future principal payments for outstanding debt were as follows at March 31, 2019 (in thousands): Years Ending December 31, Remainder of 2019 $ — 2020 — 2021 — 2022 — 2023 — Thereafter 60,853 $ 60,853

Collaboration Agreements

Collaboration Agreements3 Months Ended
Mar. 31, 2019
Deferred Revenue Disclosure [Abstract]
Collaboration AgreementsCollaboration Agreements At the time of entering into collaboration agreements, the Company evaluates the appropriate presentation and classification of payments within its consolidated financial statements 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 its collaboration agreements entered into through March 31, 2019 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, or 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 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 of the Company's Hyb & Seq platform product candidate. 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, if any such net sales are ever achieved. 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 retains exclusive rights to obtain regulatory approval, manufacture and commercialize the Hyb & Seq products. Lam participates 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. The Company recognized revenue related to the Lam agreement of $4.8 million and $4.2 million during the three months ended March 31, 2019 and 2018 , respectively. The Company received development funding of $2.7 million and $3.5 million related to the Lam collaboration for the three months ended March 31, 2019 and 2018 , respectively. At March 31, 2019 , the Company had recorded $1.6 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, $4.8 million is included in customer deposits in the condensed consolidated balance sheet as of March 31, 2019 , which represents amounts received in advance. The Company incurred costs of $0.2 million during the three months ended March 31, 2019 related to services provided by Lam employees under the terms of the agreement. There were no costs incurred during the three months ended March 31, 2018 related to services provided by Lam employees under the terms of the agreement. As of March 31, 2019 , 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 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 $24.8 million , of which $5.8 million was received as an upfront payment upon delivery of certain information to Celgene and $19.0 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 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. See Note 14. Subsequent Event for an update on this collaboration agreement. During the three months ended March 31, 2019 , the Company recognized revenue related to the Celgene agreement of $1.3 million . The Company recognized a reduction of cumulative revenue of $0.2 million during the three months ended March 31, 2018 , due to higher cost estimates in future periods related to the expanded scope and the nature of the work to be performed in future periods. The Company received development funding of $0.2 million related to the Celgene collaboration for the three months ended March 31, 2019 . At March 31, 2019 , the Company had recorded $3.6 million of deferred revenue related to the Celgene collaboration, of which substantially all 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 Sharp & Dohme Corp., a subsidiary of Merck & Co., Inc. (“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-1 therapy, 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 companion 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. The Company recognized revenue of $0.9 million during the three months ended March 31, 2018 .

Commitments and Contingencies

Commitments and Contingencies3 Months Ended
Mar. 31, 2019
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. Additionally, the Company operates in various states and local jurisdictions for which sales, occupation, or franchise taxes may be payable to certain taxing authorities. 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 Areas3 Months Ended
Mar. 31, 2019
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 certain of its nCounter 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 2019 2018 Americas $ 18,927 $ 15,828 Europe & Middle East 7,200 5,758 Asia Pacific 1,561 1,499 Total revenue $ 27,688 $ 23,085 Total revenue in the United States was $18.2 million and $14.8 million for the three months ended March 31, 2019 and 2018 , 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 (Notes)

Subsequent Event (Notes)3 Months Ended
Mar. 31, 2019
Subsequent Event [Abstract]
Subsequent Events [Text Block]Subsequent Event Pursuant to its collaboration with Celgene, the Company has been developing an in vitro diagnostic test, LymphMark, as a potential companion diagnostic to aid in identifying patients with diffuse large B-cell lymphoma (DLBCL) for treatment. In April 2019, Celgene announced that the trial evaluating REVLIMID® for the treatment of DLBCL did not meet its primary endpoint and, therefore, the Company does not expect to file a pre-market approval for LymphMark as a companion diagnostic for REVLIMID. As a result of this outcome, the Company expects that its collaboration agreement with Celgene will be terminated.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)3 Months Ended
Mar. 31, 2019
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, 2018 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, 2018 . 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 month period ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year or for any other period.
ReclassificationsCertain 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 commercial 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. 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. Performance obligations for consumable products are generally completed upon shipment 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, training to the customer is a required performance obligation that must be provided by the Company prior to any revenue recognition related to the instrument sale. 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 PronouncementsIn 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 became effective for the Company beginning January 1, 2019, and did not have a material impact on its results of operations, financial condition, cash flows or financial statement disclosures, as the Company has not historically recorded the tax effects within accumulated other comprehensive income. The Company maintains a full valuation allowance for its net deferred tax assets. Leases 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. On January 1, 2019, the Company adopted the new accounting standard for leases provided in “ASU 2016-02, Leases – Recognition and Measurement of Financial Assets and Financial Liabilities” and has elected the optional modified transition method. Accordingly, all periods prior to January 1, 2019 were presented in accordance with the previous ASC Topic 840, Leases, and no retrospective adjustments were made to the comparative periods presented. The adoption of the standard had a material impact on our condensed consolidated balance sheet as of March 31, 2019, but did not have a material impact on the Company’s condensed consolidated statements of operations or condensed consolidated statements of cash flows. Upon adoption, the Company recognized operating lease right-of-use assets, current and non-current operating lease liabilities, and derecognized current and non-current deferred rent liabilities, with no cumulative-effect adjustment to the opening balance of retained earnings. The Company elected the package of practical expedients permitted under the transition guidance within the new standard which, among other things, allowed the carry forward of the historical lease classification and assessment of prior conclusions about lease identification. In addition, the Company elected, as an accounting policy election, to use the short-term lease recognition exemption on all classes of assets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company determines if an arrangement is a lease at inception of a contract. The Company’s leasing portfolio is comprised of operating leases primarily for general office, manufacturing, and research and development purposes. Operating lease liabilities and the corresponding right-of-use assets are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The operating lease right-of-use asset is reduced by lease incentives included in the agreement. As the existing leases do not contain an implicit interest rate, the Company estimates its incremental borrowing rate based on information available at commencement date in determining the present value of future payments. The Company includes options to extend the lease in the lease liability and right-of-use asset when it is reasonably certain that the option will be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For our short-term leases, we recognize lease payments as an expense on a straight-line basis over the lease term. See Note 4. Leases for additional information regarding lease agreements. Recent Accounting Pronouncements 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 investment 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 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. In November 2018, the FASB issued “ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606.” The new guidance clarifies when certain transactions between collaborative arrangement participants which should be accounted for as revenue under Topic 606. 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.
Lessee, Leases [Policy Text Block]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. On January 1, 2019, the Company adopted the new accounting standard for leases provided in “ASU 2016-02, Leases – Recognition and Measurement of Financial Assets and Financial Liabilities” and has elected the optional modified transition method. Accordingly, all periods prior to January 1, 2019 were presented in accordance with the previous ASC Topic 840, Leases, and no retrospective adjustments were made to the comparative periods presented. The adoption of the standard had a material impact on our condensed consolidated balance sheet as of March 31, 2019, but did not have a material impact on the Company’s condensed consolidated statements of operations or condensed consolidated statements of cash flows. Upon adoption, the Company recognized operating lease right-of-use assets, current and non-current operating lease liabilities, and derecognized current and non-current deferred rent liabilities, with no cumulative-effect adjustment to the opening balance of retained earnings. The Company elected the package of practical expedients permitted under the transition guidance within the new standard which, among other things, allowed the carry forward of the historical lease classification and assessment of prior conclusions about lease identification. In addition, the Company elected, as an accounting policy election, to use the short-term lease recognition exemption on all classes of assets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company determines if an arrangement is a lease at inception of a contract. The Company’s leasing portfolio is comprised of operating leases primarily for general office, manufacturing, and research and development purposes. Operating lease liabilities and the corresponding right-of-use assets are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The operating lease right-of-use asset is reduced by lease incentives included in the agreement. As the existing leases do not contain an implicit interest rate, the Company estimates its incremental borrowing rate based on information available at commencement date in determining the present value of future payments. The Company includes options to extend the lease in the lease liability and right-of-use asset when it is reasonably certain that the option will be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For our short-term leases, we recognize lease payments as an expense on a straight-line basis over the lease term. See Note 4. Leases for additional information regarding lease agreements.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)3 Months Ended
Mar. 31, 2019
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 March 31, 2019 Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 2,189 $ 1,530 $ 599 $ 4,318 Consumables 8,176 3,244 726 12,146 In vitro diagnostic kits 430 1,812 72 2,314 Total product revenue 10,795 6,586 1,397 18,778 Service revenue 1,794 614 164 2,572 Total product and service revenue 12,589 7,200 1,561 21,350 Collaboration revenue 6,338 — — 6,338 Total revenues $ 18,927 $ 7,200 $ 1,561 $ 27,688 Three Months Ended March 31, 2018 Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 2,686 $ 1,485 $ 503 $ 4,674 Consumables 6,160 2,377 820 9,357 In vitro diagnostic kits 681 1,397 88 2,166 Total product revenue 9,527 5,259 1,411 16,197 Service revenue 1,261 499 88 1,848 Total product and service revenue 10,788 5,758 1,499 18,045 Collaboration revenue 5,040 — — 5,040 Total revenues $ 15,828 $ 5,758 $ 1,499 $ 23,085

Operating Leases (Tables)

Operating Leases (Tables)3 Months Ended
Mar. 31, 2019
Leases [Abstract]
Components of Lease Cost and Other InformationThe components of lease expense were as follows (in thousands): Three Months Ended March 31, 2019 Operating lease cost $ 1,413 Other information related to leases was as follows (in thousands, except lease term and discount rate): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,373 Weighted Average Remaining Lease Term (years) 7.1 Weighted Average Discount Rate 7.0 %
Schedule of Future Minimum Lease Payments, After AdoptionFuture minimum lease payments under the lease agreements as of March 31, 2019 were as follows (in thousands): Remainder of 2019 $ 4,118 2020 5,560 2021 5,593 2022 5,708 2023 5,869 Thereafter 13,367 Total future minimum lease payments $ 40,215 Less: imputed interest (8,608 ) Total $ 31,607
Schedule of Future Minimum Lease Payments, Before AdoptionFuture minimum lease payments under non-cancellable leases as of December 31, 2018 were as follows (in thousands): 2019 $ 5,526 2020 5,560 2021 5,593 2022 5,708 2023 5,869 Thereafter 13,458 Total future minimum lease payments $ 41,714

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)3 Months Ended
Mar. 31, 2019
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 (in thousands): Three Months Ended 2019 2018 Options to purchase common stock 4,837 5,665 Restricted stock units 1,207 1,018 Common stock warrants 907 357

Short-term Investments (Tables)

Short-term Investments (Tables)3 Months Ended
Mar. 31, 2019
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 March 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate debt securities $ 39,914 $ 15 $ — $ 39,929 U.S. government-related debt securities 10,926 3 — 10,929 Asset-backed securities 7,427 3 — 7,430 Total available-for-sale securities $ 58,267 $ 21 $ — $ 58,288 Type of securities as of December 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate debt securities $ 47,299 $ 1 $ (21 ) $ 47,279 U.S. government-related debt securities 14,972 — (11 ) 14,961 Asset-backed securities 7,410 — (9 ) 7,401 Total available-for-sale securities $ 69,681 $ 1 $ (41 ) $ 69,641
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): March 31, 2019 December 31, 2018 Maturing in one year or less $ 58,288 $ 69,641 Maturing in one to three years — — Total available-for-sale securities $ 58,288 $ 69,641

Fair Value Measurements (Tables

Fair Value Measurements (Tables)3 Months Ended
Mar. 31, 2019
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 March 31, 2019 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 81,282 $ — $ — $ 81,282 Short-term investments: Corporate debt securities — 39,929 — 39,929 U.S. government-related debt securities — 10,929 — 10,929 Asset-backed securities — 7,430 — 7,430 Total $ 81,282 $ 58,288 $ — $ 139,570 As of December 31, 2018 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 16,293 $ — $ — $ 16,293 Short-term investments: Corporate debt securities — 47,279 — 47,279 U.S. government-related debt securities — 14,961 — 14,961 Asset-backed securities — 7,401 — 7,401 Total $ 16,293 $ 69,641 $ — $ 85,934

Inventory (Tables)

Inventory (Tables)3 Months Ended
Mar. 31, 2019
Inventory Disclosure [Abstract]
Schedule of InventoryInventory consisted of the following as of the date indicated (in thousands): March 31, 2019 December 31, 2018 Raw materials $ 2,634 $ 3,408 Work in process 3,877 4,054 Finished goods 6,460 5,711 Total inventory $ 12,971 $ 13,173

Long-term Debt (Tables)

Long-term Debt (Tables)3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]
Components of Borrowings, Including Current PortionLong-term debt consisted of the following (in thousands): March 31, 2019 December 31, 2018 Borrowings under term loan agreements $ 60,000 $ 60,000 Paid in-kind interest on term loan agreements 853 400 Unamortized debt discounts (1,923 ) (2,004 ) Long-term debt, net of discounts $ 58,930 $ 58,396
Scheduled Future Principal Payments under Outstanding Debt ObligationsScheduled future principal payments for outstanding debt were as follows at March 31, 2019 (in thousands): Years Ending December 31, Remainder of 2019 $ — 2020 — 2021 — 2022 — 2023 — Thereafter 60,853 $ 60,853

Information about Geographic _2

Information about Geographic Areas (Tables)3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]
Classification of Revenue by GeographyRevenue by geography was as follows (in thousands): Three Months Ended 2019 2018 Americas $ 18,927 $ 15,828 Europe & Middle East 7,200 5,758 Asia Pacific 1,561 1,499 Total revenue $ 27,688 $ 23,085

Description of Business - Addit

Description of Business - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions1 Months Ended3 Months Ended
Mar. 31, 2019Oct. 31, 2018Jul. 31, 2018Jan. 31, 2018Mar. 31, 2019Mar. 31, 2018
Subsidiary, Sale of Stock [Line Items]
Proceeds from sale of common stock, net $ 68,273 $ 0
Shares sold in offering5.2
At The Market Equity Offering
Subsidiary, Sale of Stock [Line Items]
Proceeds from sale of common stock, net $ 40,000
Public Stock Offering
Subsidiary, Sale of Stock [Line Items]
Shares sold in offering2.5 4.6
Total gross proceeds from stock offering $ 73,000 $ 57,500
Aggregate net proceeds from stock offering $ 68,300 $ 53,800
Selling Stockholder [Member]
Subsidiary, Sale of Stock [Line Items]
Shares sold in offering2
Over-Allotment Option [Member]
Subsidiary, Sale of Stock [Line Items]
Shares sold in offering0.7 0.6
Term Loan Agreement
Subsidiary, Sale of Stock [Line Items]
Debt Instrument, Redemption Price, Percentage4.00%
Upfront Fee Of Aggregate Principal Amount, Percentage0.50%
Minimum | Term Loan Agreement
Subsidiary, Sale of Stock [Line Items]
Debt Instrument, Redemption Price, Percentage1.00%

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail)3 Months Ended
Mar. 31, 2019
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

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Narrative (Details) - USD ($)3 Months Ended
Mar. 31, 2019Dec. 31, 2018Mar. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cumulative impact of new standard[1] $ 754,000
Customer deposits $ 5,941,000 $ 8,167,000
Contract liabilities(10,700,000) $ (11,500,000)
Performance obligation satisfied in previous period7,900,000
Cash payments received form customers4,900,000
Contract assets0
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 $ 3,100,000
Accumulated Deficit
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cumulative impact of new standard[1] $ 754,000
[1]Effective January 1, 2018, we adopted Accounting Standard Update No. 2014-09, Revenue from Contracts with Customers. See Note 2. Significant Accounting Policies and Note 3. Revenue from Contracts with Customers for more information.

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2019Mar. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue $ 27,688 $ 23,085
Instruments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue4,318 4,674
Consumables
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue12,146 9,357
In vitro diagnostic kits
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue2,314 2,166
Total product revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue18,778 16,197
Service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue2,572 1,848
Total product and service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue21,350 18,045
Collaboration revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue6,338 5,040
Americas
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue18,927 15,828
Americas | Instruments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue2,189 2,686
Americas | Consumables
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue8,176 6,160
Americas | In vitro diagnostic kits
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue430 681
Americas | Total product revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue10,795 9,527
Americas | Service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue1,794 1,261
Americas | Total product and service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue12,589 10,788
Americas | Collaboration revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue6,338 5,040
Europe and Middle East
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue7,200 5,758
Europe and Middle East | Instruments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue1,530 1,485
Europe and Middle East | Consumables
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue3,244 2,377
Europe and Middle East | In vitro diagnostic kits
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue1,812 1,397
Europe and Middle East | Total product revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue6,586 5,259
Europe and Middle East | Service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue614 499
Europe and Middle East | Total product and service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue7,200 5,758
Europe and Middle East | Collaboration revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue0 0
Asia Pacific
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue1,561 1,499
Asia Pacific | Instruments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue599 503
Asia Pacific | Consumables
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue726 820
Asia Pacific | In vitro diagnostic kits
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue72 88
Asia Pacific | Total product revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue1,397 1,411
Asia Pacific | Service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue164 88
Asia Pacific | Total product and service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue1,561 1,499
Asia Pacific | Collaboration revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue $ 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 MillionsMar. 31, 2019USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation $ 9.7
Total Products And Services
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation $ 7

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 Ended
Mar. 31, 2019Mar. 31, 2018Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue $ 27,688 $ 23,085
Total revenue27,688 23,085
Net loss $ (21,898) $ (19,202)
Net loss per share - basic and diluted (in dollars per share) $ (0.69) $ (0.75)
Deferred revenue, current portion $ 9,476 $ 9,890
Accumulated deficit $ (413,154) $ (391,256)

Operating Leases - Summary of L

Operating Leases - Summary of Lease Cost and Other Information (Details) $ in Thousands3 Months Ended
Mar. 31, 2019USD ($)
Leases [Abstract]
Operating lease cost $ 1,413
Operating cash flows from operating leases $ 1,373
Weighted Average Remaining Lease Term (years)7 years 1 month 6 days
Weighted Average Discount Rate7.00%

Operating Leases - Schedule of

Operating Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in ThousandsMar. 31, 2019Dec. 31, 2018
Operating Leases, After Adoption of 842:
Remainder of 2019 $ 4,118
20205,560
20215,593
20225,708
20235,869
Thereafter13,367
Total future minimum lease payments40,215
Less: imputed interest(8,608)
Total $ 31,607
Operating Leases, Before Adoption of 842:
2019 $ 5,526
20205,560
20215,593
20225,708
20235,869
Thereafter13,458
Total future minimum lease payments41,714
2019 $ 5,526

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 Ended
Mar. 31, 2019Mar. 31, 2018
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)4,837 5,665
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)1,207 1,018
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)907 357

Concentration of Risks - Additi

Concentration of Risks - Additional Information (Detail)3 Months Ended
Mar. 31, 2019Mar. 31, 2018
Lam Research Corporation | Customer Concentration Risk | Total revenue
Concentration Risk [Line Items]
Concentration risk percentage17.00%18.00%

Short-term Investments - Availa

Short-term Investments - Available-for-Sale Securities (Detail) - USD ($) $ in ThousandsMar. 31, 2019Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized cost $ 58,267 $ 69,681
Gross unrealized gains21 1
Gross unrealized losses0 (41)
Fair value58,288 69,641
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost39,914 47,299
Gross unrealized gains15 1
Gross unrealized losses0 (21)
Fair value39,929 47,279
U.S. government-related debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost10,926 14,972
Gross unrealized gains3 0
Gross unrealized losses0 (11)
Fair value10,929 14,961
Asset-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized cost7,427 7,410
Gross unrealized gains3 0
Gross unrealized losses0 (9)
Fair value $ 7,430 $ 7,401

Short-term Investments - Fair V

Short-term Investments - Fair Values of Available-for-Sale Securities by Contractual Maturity (Detail) - USD ($) $ in ThousandsMar. 31, 2019Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Maturing in one year or less $ 58,288 $ 69,641
Maturing in one to three years0 0
Total available-for-sale securities $ 58,288 $ 69,641

Fair Value Measurements - Compa

Fair Value Measurements - Company's Available-for-Sale Securities by Level within Fair Value Hierarchy (Detail) - USD ($) $ in ThousandsMar. 31, 2019Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments $ 58,288 $ 69,641
Total139,570 85,934
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments39,929 47,279
U.S. government-related debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments10,929 14,961
Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments7,430 7,401
Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents81,282 16,293
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total81,282 16,293
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
Financial Instruments, Owned, Mortgages, Mortgage-backed and Asset-backed Securities, at Fair Value0
Level 1 | Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents81,282 16,293
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total58,288 69,641
Level 2 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments39,929 47,279
Level 2 | U.S. government-related debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments10,929 14,961
Level 2 | Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments7,401
Financial Instruments, Owned, Mortgages, Mortgage-backed and Asset-backed Securities, at Fair Value7,430
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
Financial Instruments, Owned, Mortgages, Mortgage-backed and Asset-backed Securities, at Fair Value0
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 ThousandsMar. 31, 2019Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials $ 2,634 $ 3,408
Work in process3,877 4,054
Finished goods6,460 5,711
Inventory, net $ 12,971 $ 13,173

Long-term Debt - Additional Inf

Long-term Debt - Additional Information (Detail) - USD ($)1 Months Ended3 Months Ended12 Months Ended
Oct. 31, 2018Jan. 31, 2018Mar. 31, 2019Mar. 31, 2018Dec. 31, 2018Nov. 30, 2018Mar. 31, 2017Jun. 30, 2016Oct. 31, 2015Apr. 30, 2014
Line of Credit Facility [Line Items]
Borrowings under term loan agreements $ 60,400,000
Minimum liquidity $ 2,000,000
Class Of Warrant Or Right, Number Of Securities Called By Warrants Or Rights, Future Draw, Percentage Of Diluted Shares Outstanding0.30%
Debt Instrument, Unamortized Discount $ 1,900,000 2,000,000
Term Loan Agreement
Line of Credit Facility [Line Items]
Interest Expense1,700,000 $ 1,600,000
Credit facility, maximum borrowing capacity $ 100,000,000 $ 60,000,000 $ 45,000,000
Gain (Loss) on Extinguishment of Debt $ 800,000
Unused borrowing capacity, amount $ 15,000,000
Percentage of accrue interest12.00%
Percentage of deferred payment3.00%
Interest deferral period6 years
Borrowings under term loan agreements60,900,000 $ 45,000,000
Long term liability $ 1,400,000
Proceeds from (Repayments of) Debt7,800,000
Long-term Debt, Gross60,000,000
Repayments of Debt50,400,000
Line of Credit Facility, Remaining Borrowing Capacity $ 40,000,000
Warrants Issued with Debt341,578
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 21.12
Premium on Exercise Price of Additional Warrants, Debt25.00%
Warrants Not Settleable in Cash, Fair Value Disclosure $ 1,600,000
Debt Instrument, Redemption Price, Percentage4.00%
Term Loan Agreement | Minimum
Line of Credit Facility [Line Items]
Percentage of accrue interest12.00%
Debt Instrument, Redemption Price, Percentage1.00%
Term Loan Agreement | Maximum
Line of Credit Facility [Line Items]
Percentage of accrue interest12.50%
CRG Servicing LLC Amended And Restated Loan Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Commitment Fee Percentage2.00%
Percentage of accrue interest10.50%
Percentage of deferred payment3.00%
Revolving Credit Facility | Secured Revolving Loan Facility
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity $ 15,000,000 $ 20,000,000
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%
Debt Instrument, Redemption, Period One [Member] | Term Loan Agreement
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity $ 20,000,000
Debt Instrument, Redemption, Period Two [Member] | Term Loan Agreement
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity $ 20,000,000

Long-term Debt - Components of

Long-term Debt - Components of Borrowings, Including Current Portion (Detail) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2019Dec. 31, 2018Jun. 30, 2016
Debt Instrument [Line Items]
Borrowings under term loan agreements $ 60,400
Unamortized debt discounts(2,004)
Long-term debt, net of discounts $ 58,930 58,396
Term Loan Agreement
Debt Instrument [Line Items]
Borrowings under term loan agreements60,900 $ 45,000
Borrowings Under Term Loan Agreements60,000 60,000
Paid-in-Kind Interest853 400
Unamortized debt discounts(1,923)
Long-term debt, net of discounts $ 58,930 $ 58,396

Long-term Debt - Scheduled Futu

Long-term Debt - Scheduled Future Principal Payments under Outstanding Debt Obligations (Detail) $ in ThousandsMar. 31, 2019USD ($)
Debt Disclosure [Abstract]
Remainder of 2018 $ 0
20190
20200
20210
20220
Long-term Debt, Maturities, Repayments of Principal after Year Five60,853
Total long-term debt and lease financing obligations $ 60,853

Collaboration Agreements - Addi

Collaboration Agreements - Additional Information (Detail)1 Months Ended3 Months Ended7 Months Ended12 Months Ended34 Months Ended
Feb. 28, 2018USD ($)Aug. 31, 2017USD ($)employee$ / sharessharesMar. 31, 2019USD ($)sharesMar. 31, 2018USD ($)Sep. 30, 2017USD ($)Dec. 31, 2015USD ($)Dec. 31, 2016USD ($)Dec. 31, 2016USD ($)Dec. 31, 2018USD ($)
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue $ 27,688,000 $ 23,085,000
Estimated deferred revenue recognized within one year9,476,000 $ 9,890,000
Collaborative Arrangement | Celgene Corporation
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue1,300,000 $ 200,000
Proceeds from collaborators200,000
Estimated deferred revenue recognized within one year $ 3,600,000
Collaborative agreement period1 year
Maximum success-based milestone payments $ 19,000,000
Collaborative Arrangement | Celgene Corporation | Maximum
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Maximum success-based milestone payments24,800,000
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]
Revenue900,000
Collaborative Arrangement | Merck Sharp & Dohme Corp. | Upfront Payment Arrangement
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue $ 8,500,000
Proceeds from collaborators $ 3,900,000 $ 12,000,000
Collaborative Arrangement | Lam Research Corporation
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
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
Revenue $ 4,800,000 4,200,000
Proceeds from collaborators2,700,000 3,500,000
Deferred revenue recorded under collaboration agreement1,600,000
Estimated deferred revenue recognized within one year1,200,000
Customer deposits4,800,000
nstg_ReimbursementOfCounterpartyCosts200,000 $ 0
Amounts due for services provided0
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]
Number of warrants, outstanding | shares1,000,000
Revenue $ 50,000,000

Information about Geographic _3

Information about Geographic Areas - Additional Information (Detail) $ in Thousands3 Months Ended
Mar. 31, 2019USD ($)sales_forceSegmentMar. 31, 2018USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of sales forces | sales_force1
Number of reportable segment | Segment1
Total revenue $ 27,688 $ 23,085
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue $ 18,200 $ 14,800

Information about Geographic _4

Information about Geographic Areas - Classification of Revenue by Geography (Detail) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2019Mar. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue $ 27,688 $ 23,085
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue18,927 15,828
Europe & Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue7,200 5,758
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue $ 1,561 $ 1,499