Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | NANOSTRING TECHNOLOGIES INC | |
Entity Central Index Key | 0001401708 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 35,738,089 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 23,442 | $ 24,356 |
Short-term investments | 105,423 | 69,641 |
Accounts receivable, net | 19,542 | 17,279 |
Inventory, net | 19,040 | 13,173 |
Prepaid expenses and other | 10,877 | 7,258 |
Total current assets | 178,324 | 131,707 |
Property and equipment, net | 14,863 | 15,171 |
Operating lease right-of-use assets | 25,344 | 0 |
Other assets | 2,228 | 680 |
Total assets | 220,759 | 147,558 |
Current liabilities: | ||
Accounts payable | 6,724 | 8,636 |
Accrued liabilities | 5,632 | 3,705 |
Accrued compensation and other employee benefits | 10,774 | 12,060 |
Customer deposits | 6,462 | 8,167 |
Deferred revenue, current portion | 4,389 | 9,890 |
Deferred rent, current portion | 0 | 657 |
Operating lease liabilities, current portion | 3,690 | 0 |
Total current liabilities | 37,671 | 43,115 |
Deferred revenue, net of current portion | 876 | 1,620 |
Deferred rent and other long-term liabilities, net of current portion | 246 | 7,558 |
Long-term debt, net of discounts | 79,194 | 58,396 |
Operating lease liabilities, net of current portion | 30,183 | 0 |
Total liabilities | 148,170 | 110,689 |
Commitment and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value, 15,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.0001 par value, 150,000 shares authorized; 35,736 and 30,913 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 4 | 3 |
Additional paid-in capital | 528,307 | 428,162 |
Accumulated other comprehensive income (loss) | 217 | (40) |
Accumulated deficit | (455,939) | (391,256) |
Total stockholders’ equity | 72,589 | 36,869 |
Total liabilities and stockholders’ equity | $ 220,759 | $ 147,558 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 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) | 35,736,092 | 30,913,397 |
Common stock, shares outstanding (in shares) | 35,736,092 | 30,913,397 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue: | ||||
Revenue | $ 30,604 | $ 28,616 | $ 88,637 | $ 76,700 |
Costs and expenses: | ||||
Cost of product and service revenue | 10,925 | 9,291 | 29,239 | 25,538 |
Research and development | 17,007 | 16,651 | 50,063 | 45,068 |
Selling, general and administrative | 23,382 | 17,810 | 69,317 | 57,897 |
Total costs and expenses | 51,314 | 43,752 | 148,619 | 128,503 |
Loss from operations | (20,710) | (15,136) | (59,982) | (51,803) |
Other income (expense): | ||||
Interest income | 763 | 384 | 2,114 | 826 |
Interest expense | (2,415) | (1,631) | (6,052) | (4,798) |
Other expense, net | (322) | (46) | (552) | (330) |
Total other expense, net | (1,974) | (1,293) | (4,490) | (4,302) |
Net loss before provision for income tax | (22,684) | (16,429) | (64,472) | (56,105) |
Provision for income tax | (64) | (57) | (211) | (185) |
Net loss | $ (22,748) | $ (16,486) | $ (64,683) | $ (56,290) |
Net loss per share - basic and diluted (in dollars per share) | $ (0.64) | $ (0.56) | $ (1.90) | $ (2.09) |
Weighted average shares used in computing basic and diluted net loss per share (in shares) | 35,576 | 29,366 | 34,121 | 26,882 |
Total product and service revenue | ||||
Revenue: | ||||
Revenue | $ 26,349 | $ 21,453 | $ 70,069 | $ 59,882 |
Collaboration revenue | ||||
Revenue: | ||||
Revenue | $ 4,255 | $ 7,163 | $ 18,568 | $ 16,818 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (22,748) | $ (16,486) | $ (64,683) | $ (56,290) |
Change in unrealized gain on short-term investments | 13 | 12 | 257 | 45 |
Comprehensive loss | $ (22,735) | $ (16,474) | $ (64,426) | $ (56,245) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Deficit Statement - USD ($) shares in Thousands, $ in Thousands | Total | Accumulated Deficit | Other Comprehensive Loss | Additional Paid-in Capital | Common Stock | |
Shares, Outstanding | 25,421 | |||||
Stockholders' Equity Attributable to Parent | $ 40,109 | $ (313,102) | $ (99) | $ 353,308 | $ 2 | |
Adjustments to Additional Paid in Capital, Warrant Issued | 749 | 749 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 139 | |||||
Stock Issued During Period, Value, Stock Options Exercised | 412 | 411 | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 136 | |||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 767 | 767 | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 2,945 | 2,945 | ||||
Net loss | (19,202) | (19,202) | ||||
Other Comprehensive Income (Loss), Net of Tax | (13) | (13) | ||||
Net loss | (56,290) | |||||
Shares, Outstanding | 25,696 | |||||
Stockholders' Equity Attributable to Parent | 25,012 | (333,059) | (112) | 358,180 | $ 3 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | [1] | (755) | (755) | |||
Adjustments to Additional Paid in Capital, Warrant Issued | 674 | 674 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 89 | |||||
Stock Issued During Period, Value, Stock Options Exercised | 583 | 583 | $ 0 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 2,903 | 2,903 | ||||
Net loss | (20,601) | (20,601) | ||||
Other Comprehensive Income (Loss), Net of Tax | 46 | 46 | ||||
Shares, Outstanding | 25,785 | |||||
Stockholders' Equity Attributable to Parent | 8,617 | (353,660) | (66) | 362,340 | $ 3 | |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 3,700 | |||||
Stock Issued During Period, Shares, New Issues | 4,600 | |||||
Stock Issued During Period, Value, New Issues | 53,847 | 53,847 | $ 0 | |||
Adjustments to Additional Paid in Capital, Warrant Issued | 843 | 843 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 163 | |||||
Stock Issued During Period, Value, Stock Options Exercised | 1,733 | 1,733 | $ 0 | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 121 | |||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 684 | 684 | ||||
Exercise Price Of Common Stock Warrants | 100 | |||||
Stock Issued During Period, Value, Other | 0 | 0 | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 2,835 | 2,835 | ||||
Net loss | (16,486) | (16,486) | ||||
Other Comprehensive Income (Loss), Net of Tax | 12 | 12 | ||||
Shares, Outstanding | 30,769 | |||||
Stockholders' Equity Attributable to Parent | 52,085 | (370,146) | (54) | 422,282 | $ 3 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | [1] | (1) | (1) | |||
Shares, Outstanding | 30,913 | |||||
Stockholders' Equity Attributable to Parent | 36,869 | (391,256) | (40) | 428,162 | $ 3 | |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 4,700 | |||||
Stock Issued During Period, Shares, New Issues | 3,175 | |||||
Stock Issued During Period, Value, New Issues | 68,273 | 68,273 | $ 0 | |||
Adjustments to Additional Paid in Capital, Warrant Issued | 698 | 698 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 805 | |||||
Stock Issued During Period, Value, Stock Options Exercised | 8,075 | 8,075 | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 151 | |||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 939 | 939 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 0 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | (1,299) | (1,299) | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 2,882 | 2,882 | ||||
Net loss | (21,898) | (21,898) | ||||
Other Comprehensive Income (Loss), Net of Tax | 61 | 61 | ||||
Net loss | (64,683) | |||||
Shares, Outstanding | 35,044 | |||||
Stockholders' Equity Attributable to Parent | 94,600 | (413,154) | 21 | 507,730 | $ 3 | |
Adjustments to Additional Paid in Capital, Warrant Issued | 1,575 | 1,575 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 323 | |||||
Stock Issued During Period, Value, Stock Options Exercised | 4,591 | 4,590 | $ 1 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 5,076 | 5,076 | ||||
Net loss | (20,037) | |||||
Other Comprehensive Income (Loss), Net of Tax | 183 | 183 | ||||
Shares, Outstanding | 35,367 | |||||
Stockholders' Equity Attributable to Parent | 85,988 | (433,191) | 204 | 518,971 | $ 4 | |
Adjustments to Additional Paid in Capital, Warrant Issued | 516 | 516 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 317 | |||||
Stock Issued During Period, Value, Stock Options Exercised | 3,234 | 3,234 | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 52 | |||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 1,013 | 1,013 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 0 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | (175) | (175) | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 4,748 | 4,748 | ||||
Net loss | (22,748) | |||||
Other Comprehensive Income (Loss), Net of Tax | 13 | 13 | ||||
Shares, Outstanding | 35,736 | |||||
Stockholders' Equity Attributable to Parent | $ 72,589 | $ (455,939) | $ 217 | $ 528,307 | $ 4 | |
[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 Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net loss | $ (64,683) | $ (56,290) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 3,625 | 2,975 |
Non-cash operating lease cost | 2,069 | 0 |
Stock-based compensation expense | 12,706 | 8,683 |
Amortization of premium on short-term investments | (11) | 373 |
Amortization of deferred financing costs | 575 | 276 |
Conversion of accrued interest to long-term debt | 1,565 | 1,130 |
Provision for bad debts | (62) | 467 |
Inventory Write-down | 784 | 629 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,224) | 562 |
Inventory | (7,161) | 3,468 |
Prepaid expenses and other assets | (5,292) | (2,418) |
Accounts payable | (2,027) | 1,261 |
Accrued liabilities | 1,133 | (1,388) |
Accrued compensation and other employee benefits | (1,232) | 532 |
Customer deposits | (1,705) | 1,263 |
Deferred revenue | (6,244) | (789) |
Operating lease liabilities | (1,701) | 0 |
Deferred rent and other liabilities | 0 | (384) |
Net cash used in operating activities | (69,885) | (39,650) |
Investing activities | ||
Purchases of property and equipment | (1,832) | (2,855) |
Proceeds from sale of short-term investments | 2,500 | 5,410 |
Proceeds from maturity of short-term investments | 84,070 | 34,100 |
Purchases of short-term investments | (122,084) | (62,150) |
Net cash used in investing activities | (37,346) | (25,495) |
Financing activities | ||
Borrowings under long-term debt agreement | 20,000 | 0 |
Deferred costs related to long-term debt | 100 | 0 |
Proceeds from sale of common stock, net | 68,273 | 53,847 |
Proceeds from issuance of common stock warrants | 1,821 | 2,266 |
Tax withholdings related to net share settlements of restricted stock units | (1,474) | (197) |
Proceeds from issuance of common stock for employee stock purchase plan | 1,952 | 1,451 |
Proceeds from exercise of stock options | 15,899 | 2,727 |
Net cash provided by financing activities | 106,371 | 60,094 |
Net decrease in cash, cash equivalents | (860) | (5,051) |
Effect of exchange rate changes on cash and cash equivalents | (54) | (29) |
Cash and cash equivalents | ||
Beginning of period | 24,356 | 26,279 |
End of period | 23,442 | 21,199 |
Right-of-use assets obtained in exchange for lease obligations | $ 27,364 | $ 0 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | Description 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 currently markets and sells two platforms based on its proprietary technology, its nCounter Analysis System and its GeoMx Digital Spatial Profiler, or GeoMx DSP system, both consisting of instruments and consumables, 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 to date primarily through the sale of equity securities and incurrence of indebtedness and cash received by the Company pursuant to certain product development collaborations. In March 2019, the Company completed an underwritten public offering of 3,175,000 shares of its common stock, including the exercise in full by the underwriters of their option to purchase 675,000 additional shares of common stock. An additional 2,000,000 shares were sold by a related party stockholder. 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. 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 Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements reflect the accounts of the Company and its wholly-owned subsidiaries. The unaudited condensed consolidated balance sheet at December 31, 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 and nine month periods ended September 30, 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 System and GeoMx DSP System, and related consumables. Services consist of instrument service contracts and service fees for assay processing. Revenue from instruments and consumables, including 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 in vitro diagnostic assays, such as our Prosigna assay, training 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 at times may enter 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 ASU 2016-02 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 the Company’s 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. Operating 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 Company has had a practice of expensing the implementation costs related to cloud computing arrangements. Upon adoption of the standard, the Company may capitalize certain implementation costs for new cloud computing arrangements in other assets, and amortize the costs over the related service contract period for the hosted arrangement. The amortization of the implementation costs and the related service contract costs will be presented in its results of operations. The impact to the Company’s consolidated financial statements will depend on multiple factors, including the timing, scope and cost of future cloud-based implementation projects. The Company will adopt the standard, on a prospective basis, on January 1, 2020, the effective date of the standard. 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 Company will adopt the standard on January 1, 2020, the effective date of the standard. The Company has assessed its collaborative arrangements and had concluded no adjustment is necessary, based on guidance in the standard. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue 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 September 30, 2019 Nine Months Ended September 30, 2019 Americas Europe and Middle East Asia Pacific Total Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 5,823 $ 1,577 $ 637 $ 8,037 $ 11,609 $ 4,066 $ 1,620 $ 17,295 Consumables 8,872 3,040 824 12,736 25,241 9,084 2,331 36,656 In vitro diagnostic kits 776 1,670 71 2,517 1,852 5,350 243 7,445 Total product revenue 15,471 6,287 1,532 23,290 38,702 18,500 4,194 61,396 Service revenue 2,004 841 214 3,059 5,965 2,136 572 8,673 Total product and service revenue 17,475 7,128 1,746 26,349 44,667 20,636 4,766 70,069 Collaboration revenue 4,255 — — 4,255 18,568 — — 18,568 Total revenues $ 21,730 $ 7,128 $ 1,746 $ 30,604 $ 63,235 $ 20,636 $ 4,766 $ 88,637 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Americas Europe and Middle East Asia Pacific Total Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 3,696 $ 1,149 $ 584 $ 5,429 $ 9,512 $ 4,189 $ 1,890 $ 15,591 Consumables 7,808 2,633 699 11,140 20,770 7,882 2,126 30,778 In vitro diagnostic kits 783 1,687 77 2,547 2,382 4,600 252 7,234 Total product revenue 12,287 5,469 1,360 19,116 32,664 16,671 4,268 53,603 Service revenue 1,582 641 114 2,337 4,383 1,589 307 6,279 Total product and service revenue 13,869 6,110 1,474 21,453 37,047 18,260 4,575 59,882 Collaboration revenue 7,163 — — 7,163 16,818 — — 16,818 Total revenues $ 21,032 $ 6,110 $ 1,474 $ 28,616 $ 53,865 $ 18,260 $ 4,575 $ 76,700 Contract balances and remaining performance obligations Contract liabilities are comprised of the current and long-term portions of deferred revenue of $5.3 million and $11.5 million as of September 30, 2019 and December 31, 2018 , respectively, and customer deposits of $6.5 million and $8.2 million as of September 30, 2019 and December 31, 2018 , respectively, included within the condensed consolidated balance sheets. Total contract liabilities decreased by $8.0 million for the nine months ended September 30, 2019 as a result of the recognition of previously deferred revenue and customer deposits of $23.9 million for the completion of certain performance obligations during the period, partially offset by cash payments received of $16.0 million related to our collaborations and service contracts. The Company did not record any contract assets as of September 30, 2019 . As of September 30, 2019, unsatisfied or partially unsatisfied performance obligations related to the collaboration agreement with Lam Research Corporation (“Lam”) were $6.0 million and are expected to be completed by the first half of 2020. Performance obligations related to undelivered products and service contracts as of September 30, 2019 were $5.7 million and are expected to be completed over the term of the related contract or as products are delivered. |
Operating Leases
Operating Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The Company maintains operating leases for its manufacturing, research and development and general operations with terms that expire from 2020 to 2030 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 September 30, 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 September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 1,540 $ 4,404 Other information related to leases were as follows (in thousands): Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,134 The lease term and discount rate was as follows: September 30, 2019 Weighted Average Remaining Lease Term (years) 6.9 Weighted Average Discount Rate 7.1 % Future minimum lease payments under the lease agreements as of September 30, 2019 were as follows (in thousands): Remainder of 2019 $ 1,398 2020 6,159 2021 6,266 2022 6,327 2023 6,506 Thereafter 17,676 Total future minimum lease payments $ 44,332 Less: imputed interest (10,459 ) Total $ 33,873 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 Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net 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 Nine Months Ended 2019 2018 2019 2018 Options to purchase common stock 4,448 5,302 4,682 5,496 Restricted stock units 1,864 1,194 1,675 1,135 Common stock warrants 1,231 551 1,052 460 |
Concentration of Risks
Concentration of Risks | 9 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risks | Concentration 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. During the three and nine months ended September 30, 2019 , the Company had one collaborator, Lam, that individually represented 13% and 15% of total revenue, respectively. The Company had one collaborator, Lam, that individually represented 18% of total revenue during the three and nine months ended September 30, 2018 , respectively. The Company had no customers or collaborators that represented more than 10% of total product and service revenue for the three and nine months ended September 30, 2019 and 2018 , respectively. The Company had no customers or collaborators that represented more than 10% of total accounts receivable as of September 30, 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 Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-term Investments | Short-term Investments Short-term investments consisted of available-for-sale securities as follows (in thousands): Type of securities as of September 30, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate debt securities $ 66,299 $ 148 $ — $ 66,447 U.S. government-related debt securities 28,431 48 — 28,479 Asset-backed securities 10,476 21 — 10,497 Total available-for-sale securities $ 105,206 $ 217 $ — $ 105,423 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): September 30, 2019 December 31, 2018 Maturing in one year or less $ 97,894 $ 69,641 Maturing in one to three years 7,529 — Total available-for-sale securities $ 105,423 $ 69,641 The Company has both the intent and ability to sell its available-for-sale investments maturing greater than one year within 12 months from the balance sheet date and, accordingly, has classified these securities as current in the condensed consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company establishes the fair value of its assets and liabilities using the price that would be received to sell an asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is used to measure fair value. The three levels of the fair value hierarchy are as follows: • Level 1 — Quoted prices in active markets for identical assets and liabilities. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The recorded amounts of certain financial instruments, including cash, accounts receivable, prepaid expenses and other, accounts payable and accrued liabilities, approximate fair value due to their relatively short-term maturities. The recorded amount of the Company’s long-term debt approximates fair value because the related interest rates approximate rates currently available to the Company. The Company’s available-for-sale securities by level within the fair value hierarchy were as follows (in thousands): As of September 30, 2019 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 15,687 $ — $ — $ 15,687 Short-term investments: Corporate debt securities — 66,447 — 66,447 U.S. government-related debt securities — 28,479 — 28,479 Asset-backed securities — 10,497 — 10,497 Total $ 15,687 $ 105,423 $ — $ 121,110 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
Inventory | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consisted of the following as of the date indicated (in thousands): September 30, 2019 December 31, 2018 Raw materials $ 4,610 $ 3,408 Work in process 4,800 4,054 Finished goods 9,630 5,711 Total inventory $ 19,040 $ 13,173 |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Term Loan Agreements In April 2014, the Company entered into a term loan agreement (“2014 Term Loan”), under which it borrowed $45.0 million . Interest on the 2014 Term Loan accrued at an annual rate of 12.0% , payable quarterly, of which 3.0% can be deferred during the first six years of the term at the Company’s option and paid together with the principal at maturity. The 2014 Term Loan had an interest-only period through March 2021 and a final maturity date of March 2022. 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. In June 2019, the Company borrowed an additional $20.0 million under the 2018 Term Loan and has the option to borrow the remaining $20.0 million until March 2020, which is 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 $1.9 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 entry into the 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. In June 2019, in connection with the borrowing of an additional $20.0 million principal amount, warrants to purchase an aggregate of 128,932 shares of common stock with an exercise price per share of $34.20 were issued to the lenders. If additional amounts are borrowed 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 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 and $1.0 million , in October 2018 and June 2019, respectively, with a corresponding debt discount recorded against the 2018 Term Loan balance outstanding. Total borrowings and deferred interest under the 2018 Term Loan were $82.0 million and $60.4 million as of September 30, 2019 and December 31, 2018 , respectively. The balance of the 2018 Term Loan as of September 30, 2019 and December 31, 2018 is net of discounts related to the warrants, debt issuance costs and other upfront fees of $2.8 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% during the first year of the term, 3.0% during the second year of the term and 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 covenants, including negative 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 revenue is below the minimum annual revenue requirement for any given year, it may avoid a related default by generating proceeds from an equity or subordinated debt issuance equal to the shortfall between its actual revenues and the minimum revenue requirement. The Company incurred $2.4 million and $1.6 million of interest expense under the term loan agreements for the three months ended September 30, 2019 and 2018 , respectively, and $6.1 million and $4.8 million for the nine months ended September 30, 2019 and 2018 , respectively. The Company was in compliance with its financial covenants under the term loan agreement as of September 30, 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 September 30, 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 (i) the prime rate as reported in the Wall Street Journal plus 0.50% and (ii) 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 secured revolving loan facility as of September 30, 2019 . Long-term debt consisted of the following (in thousands): September 30, 2019 December 31, 2018 Borrowings under term loan agreements $ 80,000 $ 60,000 Paid-in-kind interest on term loan agreements 1,965 400 Unamortized debt discounts (2,771 ) (2,004 ) Long-term debt, net of discounts $ 79,194 $ 58,396 Scheduled future principal payments for outstanding debt were as follows at September 30, 2019 (in thousands): Years Ending December 31, Remainder of 2019 $ — 2020 — 2021 — 2022 — 2023 — Thereafter 81,965 $ 81,965 |
Collaboration Agreements
Collaboration Agreements | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Revenue Disclosure [Abstract] | |
Collaboration Agreements | Collaboration 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 September 30, 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 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. During the three and nine months ended September 30, 2019 , the Company recognized revenue related to the Lam agreement of $4.0 million and $13.2 million , respectively, and $5.3 million and $13.4 million for the three and nine months ended September 30, 2018 , respectively. The Company received development funding of $3.4 million and $11.7 million related to the Lam collaboration for the three and nine months ended September 30, 2019 , respectively, and $7.0 million and $18.4 million for the three and nine months ended September 30, 2018 , respectively. The Company has received $46.8 million in development funding since the inception of the agreement through September 30, 2019 . At September 30, 2019 , the Company had recorded $0.5 million of deferred revenue related to the Lam collaboration, all of which is estimated to be recognizable as revenue within one year. In addition, $5.3 million is included in customer deposits in the condensed consolidated balance sheet as of September 30, 2019 , which represents amounts received in advance. The Company incurred costs related to services provided by Lam employees under the terms of the agreement of $0.2 million and $0.6 million during the three and nine months ended September 30, 2019 , respectively, and $0.1 million and $0.2 million for the three and nine months ended September 30, 2018 , respectively. As of September 30, 2019 , Lam had no t 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. 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. In May 2019, the Company’s collaboration agreement with Celgene was terminated effective July 2019, with substantially all the remaining deferred revenue from the agreement recognized in the three months ended June 30, 2019. In addition, the Company does not intend to file a pre-market approval for LymphMark as a companion diagnostic for REVLIMID. The Company did not recognize revenue related to the Celgene agreement during the three months ended September 30, 2019 and recognized $4.4 million during the nine months ended September 30, 2019 . During the three and nine months ended September 30, 2018, the Company recognized revenue related to the Celgene agreement of $1.6 million and $1.4 million , respectively. The Company received development funding of $0.8 million and $1.1 million related to the Celgene collaboration for the three and nine months ended September 30, 2019 . 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 $0.2 million and $1.6 million during the three and nine months ended September 30, 2018 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments 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 Areas | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Information about Geographic Areas | Information 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 and GeoMx DSP 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. GeoMx DSP reagents are sold for research use only. In addition, the Company’s Prosigna Breast Cancer Assay is marketed to clinical laboratories. The following table of total revenue is based on the geographic location of distributors or end users who purchase products and services and collaborators. For sales to distributors, their geographic location may be different from the geographic locations of the ultimate end user. For collaboration agreements, revenues are derived from partners located primarily in the United States. Americas consists of the United States, Canada, Mexico and South America; and Asia Pacific includes Japan, China, South Korea, Singapore, Malaysia, India and Australia. Revenue by geography was as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Americas $ 21,730 $ 21,032 $ 63,235 $ 53,865 Europe & Middle East 7,128 6,110 20,636 18,260 Asia Pacific 1,746 1,474 4,766 4,575 Total revenue $ 30,604 $ 28,616 $ 88,637 $ 76,700 Total revenue in the United States was $21.3 million and $20.4 million for the three months ended September 30, 2019 and 2018 , respectively, and $61.7 million and $51.2 million for the nine months ended September 30, 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. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
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 and nine month periods ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year or for any other period. |
Reclassifications | Certain reclassifications have been made to prior year financial statements to conform to current year presentation. |
Revenue Recognition | The Company recognizes revenue when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration expected to be received in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. Performance obligations are considered satisfied once the Company has transferred control of a product or service to the customer, meaning the customer has the ability to use and obtain the benefit of the product or service. The Company recognizes revenue for satisfied performance obligations only when there are no uncertainties regarding payment terms or transfer of control. The Company generates the majority of its revenue from the sale of products and services. The Company’s commercial products consist of its proprietary nCounter Analysis System and GeoMx DSP System, and related consumables. Services consist of instrument service contracts and service fees for assay processing. Revenue from instruments and consumables, including 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 in vitro diagnostic assays, such as our Prosigna assay, training 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 at times may enter 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 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 ASU 2016-02 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 the Company’s 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. Operating 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 Company has had a practice of expensing the implementation costs related to cloud computing arrangements. Upon adoption of the standard, the Company may capitalize certain implementation costs for new cloud computing arrangements in other assets, and amortize the costs over the related service contract period for the hosted arrangement. The amortization of the implementation costs and the related service contract costs will be presented in its results of operations. The impact to the Company’s consolidated financial statements will depend on multiple factors, including the timing, scope and cost of future cloud-based implementation projects. The Company will adopt the standard, on a prospective basis, on January 1, 2020, the effective date of the standard. 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 Company will adopt the standard on January 1, 2020, the effective date of the standard. The Company has assessed its collaborative arrangements and had concluded no adjustment is necessary, based on guidance in the standard. |
Net 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. |
Fair 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. |
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 ASU 2016-02 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 the Company’s 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. Operating Leases for additional information regarding lease agreements. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides information about disaggregated revenue by major product line and primary geographic market (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Americas Europe and Middle East Asia Pacific Total Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 5,823 $ 1,577 $ 637 $ 8,037 $ 11,609 $ 4,066 $ 1,620 $ 17,295 Consumables 8,872 3,040 824 12,736 25,241 9,084 2,331 36,656 In vitro diagnostic kits 776 1,670 71 2,517 1,852 5,350 243 7,445 Total product revenue 15,471 6,287 1,532 23,290 38,702 18,500 4,194 61,396 Service revenue 2,004 841 214 3,059 5,965 2,136 572 8,673 Total product and service revenue 17,475 7,128 1,746 26,349 44,667 20,636 4,766 70,069 Collaboration revenue 4,255 — — 4,255 18,568 — — 18,568 Total revenues $ 21,730 $ 7,128 $ 1,746 $ 30,604 $ 63,235 $ 20,636 $ 4,766 $ 88,637 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Americas Europe and Middle East Asia Pacific Total Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 3,696 $ 1,149 $ 584 $ 5,429 $ 9,512 $ 4,189 $ 1,890 $ 15,591 Consumables 7,808 2,633 699 11,140 20,770 7,882 2,126 30,778 In vitro diagnostic kits 783 1,687 77 2,547 2,382 4,600 252 7,234 Total product revenue 12,287 5,469 1,360 19,116 32,664 16,671 4,268 53,603 Service revenue 1,582 641 114 2,337 4,383 1,589 307 6,279 Total product and service revenue 13,869 6,110 1,474 21,453 37,047 18,260 4,575 59,882 Collaboration revenue 7,163 — — 7,163 16,818 — — 16,818 Total revenues $ 21,032 $ 6,110 $ 1,474 $ 28,616 $ 53,865 $ 18,260 $ 4,575 $ 76,700 |
Operating Leases (Tables)
Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Cost and Other Information | The components of lease expense were as follows (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 1,540 $ 4,404 Other information related to leases were as follows (in thousands): Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,134 The lease term and discount rate was as follows: September 30, 2019 Weighted Average Remaining Lease Term (years) 6.9 Weighted Average Discount Rate 7.1 % |
Schedule of Future Minimum Lease Payments, After Adoption | Future minimum lease payments under the lease agreements as of September 30, 2019 were as follows (in thousands): Remainder of 2019 $ 1,398 2020 6,159 2021 6,266 2022 6,327 2023 6,506 Thereafter 17,676 Total future minimum lease payments $ 44,332 Less: imputed interest (10,459 ) Total $ 33,873 |
Schedule of Future Minimum Lease Payments, Before 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 (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Shares Underlying Outstanding Options and Warrants were Excluded from Computation of Basic and Diluted Net Loss Per Share | 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 Nine Months Ended 2019 2018 2019 2018 Options to purchase common stock 4,448 5,302 4,682 5,496 Restricted stock units 1,864 1,194 1,675 1,135 Common stock warrants 1,231 551 1,052 460 |
Short-term Investments (Tables)
Short-term Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term Investments Available-for-Sale Securities | Short-term investments consisted of available-for-sale securities as follows (in thousands): Type of securities as of September 30, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Corporate debt securities $ 66,299 $ 148 $ — $ 66,447 U.S. government-related debt securities 28,431 48 — 28,479 Asset-backed securities 10,476 21 — 10,497 Total available-for-sale securities $ 105,206 $ 217 $ — $ 105,423 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 Maturity | The fair values of available-for-sale securities by contractual maturity were as follows (in thousands): September 30, 2019 December 31, 2018 Maturing in one year or less $ 97,894 $ 69,641 Maturing in one to three years 7,529 — Total available-for-sale securities $ 105,423 $ 69,641 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Company's Available-for-Sale Securities by Level within Fair Value Hierarchy | The Company’s available-for-sale securities by level within the fair value hierarchy were as follows (in thousands): As of September 30, 2019 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 15,687 $ — $ — $ 15,687 Short-term investments: Corporate debt securities — 66,447 — 66,447 U.S. government-related debt securities — 28,479 — 28,479 Asset-backed securities — 10,497 — 10,497 Total $ 15,687 $ 105,423 $ — $ 121,110 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) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of the date indicated (in thousands): September 30, 2019 December 31, 2018 Raw materials $ 4,610 $ 3,408 Work in process 4,800 4,054 Finished goods 9,630 5,711 Total inventory $ 19,040 $ 13,173 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Components of Borrowings, Including Current Portion | Long-term debt consisted of the following (in thousands): September 30, 2019 December 31, 2018 Borrowings under term loan agreements $ 80,000 $ 60,000 Paid-in-kind interest on term loan agreements 1,965 400 Unamortized debt discounts (2,771 ) (2,004 ) Long-term debt, net of discounts $ 79,194 $ 58,396 |
Scheduled Future Principal Payments under Outstanding Debt Obligations | Scheduled future principal payments for outstanding debt were as follows at September 30, 2019 (in thousands): Years Ending December 31, Remainder of 2019 $ — 2020 — 2021 — 2022 — 2023 — Thereafter 81,965 $ 81,965 |
Information about Geographic _2
Information about Geographic Areas (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Classification of Revenue by Geography | Revenue by geography was as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Americas $ 21,730 $ 21,032 $ 63,235 $ 53,865 Europe & Middle East 7,128 6,110 20,636 18,260 Asia Pacific 1,746 1,474 4,766 4,575 Total revenue $ 30,604 $ 28,616 $ 88,637 $ 76,700 |
Description of Business - Addit
Description of Business - Additional Information (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | ||||
Mar. 31, 2019USD ($)shares | Oct. 31, 2018 | Jul. 31, 2018USD ($)shares | Jan. 31, 2018USD ($)shares | Sep. 30, 2019USD ($)platform | Sep. 30, 2018USD ($) | |
Subsidiary, Sale of Stock [Line Items] | ||||||
Number of platforms | platform | 2 | |||||
Proceeds from sale of common stock, net | $ | $ 68,273 | $ 53,847 | ||||
At The Market Equity Offering | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Shares sold in offering | shares | 0 | |||||
Proceeds from sale of common stock, net | $ | $ 40,000 | |||||
Public Stock Offering | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Shares sold in offering | shares | 3,175,000 | 4,600,000 | ||||
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 offering | shares | 2,000,000 | |||||
Over-Allotment Option [Member] | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Shares sold in offering | shares | 675,000 | 600,000 | ||||
Term Loan Agreement | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Debt Instrument, Redemption Price, Percentage | 4.00% | |||||
Upfront Fee Of Aggregate Principal Amount, Percentage | 0.50% |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Significant Accounting Policies [Line Items] | |
Standard warranty period | 12 months |
Minimum | |
Significant Accounting Policies [Line Items] | |
Extended warranty period | 12 months |
Maximum | |
Significant Accounting Policies [Line Items] | |
Extended warranty period | 36 months |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) - USD ($) | 9 Months Ended | ||||
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2018 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Cumulative impact of new standard | [1] | $ 1,000 | $ 755,000 | ||
Customer deposits | $ 6,462,000 | $ 8,167,000 | |||
Contract liabilities | (5,300,000) | $ (11,500,000) | |||
Performance obligation satisfied in previous period | 23,900,000 | ||||
Cash payments received form customers | 16,000,000 | ||||
Contract assets | 0 | ||||
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 | $ 8,000,000 | ||||
Accumulated Deficit | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Cumulative impact of new standard | [1] | $ 1,000 | $ 755,000 | ||
[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 Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | $ 30,604 | $ 28,616 | $ 88,637 | $ 76,700 |
Instruments | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 8,037 | 5,429 | 17,295 | 15,591 |
Consumables | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 12,736 | 11,140 | 36,656 | 30,778 |
In vitro diagnostic kits | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 2,517 | 2,547 | 7,445 | 7,234 |
Total product revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 23,290 | 19,116 | 61,396 | 53,603 |
Service revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 3,059 | 2,337 | 8,673 | 6,279 |
Total product and service revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 26,349 | 21,453 | 70,069 | 59,882 |
Collaboration revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 4,255 | 7,163 | 18,568 | 16,818 |
Americas | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 21,730 | 21,032 | 63,235 | 53,865 |
Americas | Instruments | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 5,823 | 3,696 | 11,609 | 9,512 |
Americas | Consumables | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 8,872 | 7,808 | 25,241 | 20,770 |
Americas | In vitro diagnostic kits | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 776 | 783 | 1,852 | 2,382 |
Americas | Total product revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 15,471 | 12,287 | 38,702 | 32,664 |
Americas | Service revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 2,004 | 1,582 | 5,965 | 4,383 |
Americas | Total product and service revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 17,475 | 13,869 | 44,667 | 37,047 |
Americas | Collaboration revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 4,255 | 7,163 | 18,568 | 16,818 |
Europe and Middle East | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 7,128 | 6,110 | 20,636 | 18,260 |
Europe and Middle East | Instruments | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 1,577 | 1,149 | 4,066 | 4,189 |
Europe and Middle East | Consumables | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 3,040 | 2,633 | 9,084 | 7,882 |
Europe and Middle East | In vitro diagnostic kits | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 1,670 | 1,687 | 5,350 | 4,600 |
Europe and Middle East | Total product revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 6,287 | 5,469 | 18,500 | 16,671 |
Europe and Middle East | Service revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 841 | 641 | 2,136 | 1,589 |
Europe and Middle East | Total product and service revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 7,128 | 6,110 | 20,636 | 18,260 |
Europe and Middle East | Collaboration revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Asia Pacific | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 1,746 | 1,474 | 4,766 | 4,575 |
Asia Pacific | Instruments | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 637 | 584 | 1,620 | 1,890 |
Asia Pacific | Consumables | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 824 | 699 | 2,331 | 2,126 |
Asia Pacific | In vitro diagnostic kits | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 71 | 77 | 243 | 252 |
Asia Pacific | Total product revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 1,532 | 1,360 | 4,194 | 4,268 |
Asia Pacific | Service revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 214 | 114 | 572 | 307 |
Asia Pacific | Total product and service revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 1,746 | 1,474 | 4,766 | 4,575 |
Asia Pacific | Collaboration revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 6 |
Total Products And Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 5.7 |
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 Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||
Revenue | $ 30,604 | $ 28,616 | $ 88,637 | $ 76,700 | |||||
Total revenue | 30,604 | 28,616 | 88,637 | 76,700 | |||||
Net loss | $ (22,748) | $ (20,037) | $ (21,898) | $ (16,486) | $ (20,601) | $ (19,202) | $ (64,683) | $ (56,290) | |
Net loss per share - basic and diluted (in dollars per share) | $ (0.64) | $ (0.56) | $ (1.90) | $ (2.09) | |||||
Deferred revenue, current portion | $ 4,389 | $ 4,389 | $ 9,890 | ||||||
Accumulated deficit | $ (455,939) | $ (455,939) | $ (391,256) |
Operating Leases - Summary of L
Operating Leases - Summary of Lease Cost and Other Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Operating lease cost | $ 1,540 | $ 4,404 |
Operating cash flows from operating leases | $ 4,134 | |
Weighted Average Remaining Lease Term (years) | 6 years 10 months 24 days | 6 years 10 months 24 days |
Weighted Average Discount Rate | 7.10% | 7.10% |
Operating Leases - Schedule of
Operating Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Operating Leases, After Adoption of 842: | ||
Remainder of 2019 | $ 1,398 | |
2020 | 6,159 | |
2021 | 6,266 | |
2022 | 6,327 | |
2023 | 6,506 | |
Thereafter | 17,676 | |
Total future minimum lease payments | 44,332 | |
Less: imputed interest | (10,459) | |
Total | $ 33,873 | |
Operating Leases, Before Adoption of 842: | ||
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 | |
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 Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 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) | 4,448 | 5,302 | 4,682 | 5,496 |
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) | 1,864 | 1,194 | 1,675 | 1,135 |
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) | 1,231 | 551 | 1,052 | 460 |
Concentration of Risks - Additi
Concentration of Risks - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Lam Research Corporation | Customer Concentration Risk | Total revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 13.00% | 18.00% | 15.00% | 18.00% |
Short-term Investments - Availa
Short-term Investments - Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 105,206 | $ 69,681 |
Gross unrealized gains | 217 | 1 |
Gross unrealized losses | 0 | (41) |
Fair value | 105,423 | 69,641 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 66,299 | 47,299 |
Gross unrealized gains | 148 | 1 |
Gross unrealized losses | 0 | (21) |
Fair value | 66,447 | 47,279 |
U.S. government-related debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 28,431 | 14,972 |
Gross unrealized gains | 48 | 0 |
Gross unrealized losses | 0 | (11) |
Fair value | 28,479 | 14,961 |
Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 10,476 | 7,410 |
Gross unrealized gains | 21 | 0 |
Gross unrealized losses | 0 | (9) |
Fair value | $ 10,497 | $ 7,401 |
Short-term Investments - Fair V
Short-term Investments - Fair Values of Available-for-Sale Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Maturing in one year or less | $ 97,894 | $ 69,641 |
Maturing in one to three years | 7,529 | 0 |
Total available-for-sale securities | $ 105,423 | $ 69,641 |
Fair Value Measurements - Compa
Fair Value Measurements - Company's Available-for-Sale Securities by Level within Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 105,423 | $ 69,641 |
Total | 121,110 | 85,934 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 66,447 | 47,279 |
U.S. government-related debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 28,479 | 14,961 |
Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 10,497 | 7,401 |
Money market fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 15,687 | 16,293 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 15,687 | 16,293 |
Level 1 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 1 | U.S. government-related debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 1 | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Financial Instruments, Owned, Mortgages, Mortgage-backed and Asset-backed Securities, at Fair Value | 0 | |
Level 1 | Money market fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 15,687 | 16,293 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 105,423 | 69,641 |
Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 66,447 | 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 investments | 28,479 | 14,961 |
Level 2 | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 7,401 | |
Financial Instruments, Owned, Mortgages, Mortgage-backed and Asset-backed Securities, at Fair Value | 10,497 | |
Level 2 | Money market fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 3 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 3 | U.S. government-related debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Level 3 | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Financial Instruments, Owned, Mortgages, Mortgage-backed and Asset-backed Securities, at Fair Value | 0 | |
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 Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,610 | $ 3,408 |
Work in process | 4,800 | 4,054 |
Finished goods | 9,630 | 5,711 |
Inventory, net | $ 19,040 | $ 13,173 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Oct. 31, 2018 | Jan. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Oct. 31, 2015 | Apr. 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 Outstanding | 0.30% | ||||||||||
Debt Instrument, Unamortized Discount | $ 2,800,000 | $ 2,800,000 | 2,000,000 | ||||||||
Term Loan Agreement | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest Expense | 2,400,000 | $ 1,600,000 | 6,100,000 | $ 4,800,000 | |||||||
Credit facility, maximum borrowing capacity | $ 100,000,000 | $ 45,000,000 | |||||||||
Gain (Loss) on Extinguishment of Debt | $ 800,000 | ||||||||||
Percentage of deferred payment | 3.00% | ||||||||||
Interest deferral period | 6 years | ||||||||||
Borrowings under term loan agreements | $ 82,000,000 | $ 82,000,000 | |||||||||
Long term liability | $ 1,900,000 | ||||||||||
Proceeds from (Repayments of) Debt | 7,800,000 | ||||||||||
Long-term Debt, Gross | 60,000,000 | ||||||||||
Repayments of Debt | $ 50,400,000 | ||||||||||
Warrants Issued with Debt | 341,578 | 128,932 | 128,932 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 21.12 | $ 34.20 | $ 34.20 | ||||||||
Premium on Exercise Price of Additional Warrants, Debt | 25.00% | ||||||||||
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 1,600,000 | $ 1,000,000 | $ 1,000,000 | ||||||||
Debt Instrument, Redemption Price, Percentage | 4.00% | ||||||||||
Term Loan Agreement | Forecast [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt Instrument, Redemption Price, Percentage | 3.00% | ||||||||||
Term Loan Agreement | Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Percentage of accrue interest | 12.00% | ||||||||||
CRG Servicing LLC Amended And Restated Loan Agreement [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of Credit Facility, Commitment Fee Percentage | 2.00% | ||||||||||
Percentage of accrue interest | 10.50% | ||||||||||
Percentage of deferred payment | 3.00% | ||||||||||
Revolving Credit Facility | Secured Revolving Loan Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility, maximum borrowing capacity | $ 15,000,000 | $ 20,000,000 | |||||||||
Long-term Line of Credit | 0 | 0 | |||||||||
Variable rate | 4.75% | ||||||||||
Percentage of accrue interest | 8.75% | ||||||||||
Prime Rate | Revolving Credit Facility | Secured Revolving Loan Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Variable rate | 0.50% | ||||||||||
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 | $ 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 (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Borrowings under term loan agreements | $ 60,400 | |
Unamortized debt discounts | (2,004) | |
Long-term debt, net of discounts | $ 79,194 | 58,396 |
Term Loan Agreement | ||
Debt Instrument [Line Items] | ||
Borrowings under term loan agreements | 82,000 | |
Borrowings Under Term Loan Agreements | 80,000 | 60,000 |
Paid-in-Kind Interest | 1,965 | 400 |
Unamortized debt discounts | (2,771) | |
Long-term debt, net of discounts | $ 79,194 | $ 58,396 |
Long-term Debt - Scheduled Futu
Long-term Debt - Scheduled Future Principal Payments under Outstanding Debt Obligations (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2018 | $ 0 |
2019 | 0 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 81,965 |
Total long-term debt and lease financing obligations | $ 81,965 |
Collaboration Agreements - Addi
Collaboration Agreements - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | 12 Months Ended | 26 Months Ended | 34 Months Ended | ||||
Feb. 28, 2018USD ($) | Aug. 31, 2017USD ($)employee$ / sharesshares | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Revenue | $ 30,604 | $ 28,616 | $ 88,637 | $ 76,700 | |||||||
Estimated deferred revenue recognized within one year | 4,389 | 4,389 | $ 4,389 | $ 9,890 | |||||||
Collaborative Arrangement | Celgene Corporation | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Revenue | 1,600 | 4,400 | 1,400 | ||||||||
Proceeds from collaborators | 800 | $ 1,100 | |||||||||
Collaborative agreement period | 1 year | ||||||||||
Maximum success-based milestone payments | $ 19,000 | ||||||||||
Collaborative Arrangement | Celgene Corporation | Maximum | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Maximum success-based milestone payments | 24,800 | ||||||||||
Collaborative Arrangement | Celgene Corporation | Upfront Payment Arrangement | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Collaboration agreement upfront payment | $ 5,800 | $ 2,100 | |||||||||
Collaborative Arrangement | Merck Sharp & Dohme Corp. | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Revenue | 200 | 1,600 | |||||||||
Collaborative Arrangement | Merck Sharp & Dohme Corp. | Upfront Payment Arrangement | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Revenue | $ 8,500 | ||||||||||
Proceeds from collaborators | $ 3,900 | $ 12,000 | |||||||||
Collaborative Arrangement | Lam Research Corporation | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Maximum amount of royalties payable (ratio) | 3 | ||||||||||
Maximum number of employees | employee | 10 | ||||||||||
Exercise price of warrants | $ / shares | $ 16.75 | ||||||||||
Issued warrants, value | $ 6,700 | ||||||||||
Revenue | 4,000 | 5,300 | $ 13,200 | 13,400 | |||||||
Proceeds from collaborators | 3,400 | 7,000 | 11,700 | 18,400 | 46,800 | ||||||
Deferred revenue recorded under collaboration agreement | 500 | 500 | 500 | ||||||||
Estimated deferred revenue recognized within one year | 500 | 500 | 500 | ||||||||
Customer deposits | 5,300 | 5,300 | $ 5,300 | ||||||||
nstg_ReimbursementOfCounterpartyCosts | $ 200 | $ 100 | $ 600 | $ 200 | |||||||
Number of warrants exercised | shares | 0 | ||||||||||
Collaborative Arrangement | Lam Research Corporation | Maximum | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Number of warrants, outstanding | shares | 1,000,000 | ||||||||||
Revenue | $ 50,000 |
Information about Geographic _3
Information about Geographic Areas - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)sales_forceSegment | Sep. 30, 2018USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of sales forces | sales_force | 1 | |||
Number of reportable segment | Segment | 1 | |||
Total revenue | $ 30,604 | $ 28,616 | $ 88,637 | $ 76,700 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 21,300 | $ 20,400 | $ 61,700 | $ 51,200 |
Information about Geographic _4
Information about Geographic Areas - Classification of Revenue by Geography (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 30,604 | $ 28,616 | $ 88,637 | $ 76,700 |
Americas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 21,730 | 21,032 | 63,235 | 53,865 |
Europe & Middle East | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 7,128 | 6,110 | 20,636 | 18,260 |
Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 1,746 | $ 1,474 | $ 4,766 | $ 4,575 |