Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GenMark Diagnostics, Inc. | |
Entity Central Index Key | 0001487371 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 58,080,388 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Current Assets: | |||
Cash and cash equivalents | $ 24,308,000 | $ 36,286,000 | $ 25,005,000 |
Short-term marketable securities | 8,879,000 | 8,882,000 | |
Accounts receivable, net of allowances of $75 and $75, respectively | 10,448,000 | 11,534,000 | |
Inventories, net | 12,570,000 | 10,244,000 | |
Prepaid expenses and other current assets | 2,071,000 | 1,483,000 | |
Total current assets | 58,276,000 | 68,429,000 | |
Property and equipment, net | 18,863,000 | 21,070,000 | |
Intangible assets, net | 1,580,000 | 2,023,000 | |
Restricted cash | 758,000 | 758,000 | 758,000 |
Operating Lease, Right Of Use Asset, Noncurrent | 4,766,000 | 0 | |
Other long-term assets | 809,000 | 701,000 | |
Total assets | 85,052,000 | 92,981,000 | |
Current liabilities: | |||
Accounts payable | 10,007,000 | 9,886,000 | |
Accrued compensation | 7,720,000 | 7,358,000 | |
Operating Lease, Liability, Current | 1,828,000 | 0 | |
Other current liabilities | 2,089,000 | 3,043,000 | |
Total current liabilities | 21,644,000 | 20,287,000 | |
Deferred rent | 0 | 2,996,000 | |
Long-term debt | 48,720,000 | 36,042,000 | |
Operating Lease, Liability, Noncurrent | 6,071,000 | 0 | |
Other noncurrent liabilities | 55,000 | 109,000 | |
Total liabilities | 76,490,000 | 59,434,000 | |
Stockholders' equity: | |||
Preferred stock, $0.0001 par value; 5,000 authorized, none issued | 0 | 0 | |
Common stock, $0.0001 par value; 100,000 authorized; 57,026 and 56,240 shares issued and outstanding, respectively | 6,000 | 6,000 | |
Additional paid-in capital | 512,451,000 | 500,344,000 | |
Accumulated deficit | (503,946,000) | (466,883,000) | |
Accumulated other comprehensive income | 51,000 | 80,000 | |
Total stockholders’ equity | 8,562,000 | 33,547,000 | 41,706,000 |
Total liabilities and stockholders’ equity | 85,052,000 | 92,981,000 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 25,066,000 | $ 37,044,000 | $ 25,763,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable - net of allowance | $ 107 | $ 75 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 58,044,000 | 56,240,000 |
Common stock, outstanding | 58,044,000 | 56,240,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 20,822 | $ 15,713 | $ 60,413 | $ 51,156 |
Revenue: | ||||
License and other revenue | 96 | 82 | 412 | 225 |
Total revenue | 20,918 | 15,795 | 60,825 | 51,381 |
Cost of revenue | 13,868 | 10,165 | 41,339 | 37,172 |
Gross profit | 7,050 | 5,630 | 19,486 | 14,209 |
Operating expenses: | ||||
Sales and marketing | 6,279 | 5,375 | 17,991 | 15,964 |
General and administrative | 4,765 | 4,718 | 14,217 | 13,398 |
Research and development | 6,294 | 6,105 | 20,386 | 22,007 |
Total operating expenses | 17,338 | 16,198 | 52,594 | 51,369 |
Loss from operations | (10,288) | (10,568) | (33,108) | (37,160) |
Other income (expense): | ||||
Interest income | 126 | 188 | 438 | 577 |
Interest expense | (1,527) | (661) | (4,331) | (2,246) |
Other income (expense) | (19) | 53 | (34) | (49) |
Total other income (expense) | (1,420) | (420) | (3,927) | (1,718) |
Loss before provision for income taxes | (11,708) | (10,988) | (37,035) | (38,878) |
Income tax expense | (33) | 5 | 28 | 59 |
Net Income (Loss) Attributable to Parent | $ (11,675) | $ (10,993) | $ (37,063) | $ (38,937) |
Net loss per share, basic and diluted | $ (0.20) | $ (0.20) | $ (0.65) | $ (0.70) |
Weighted average number of shares outstanding, basic and diluted | 57,718 | 55,847 | 57,161 | 55,535 |
Other comprehensive loss: | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ (46) | $ (51) | $ (37) | $ (31) |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 0 | 4 | 8 | 27 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (46) | (47) | (29) | (4) |
Other Comprehensive Income (Loss), Net of Tax | $ (11,721) | $ (11,040) | $ (37,092) | $ (38,941) |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Net Income (Loss) Attributable to Noncontrolling Interest | $ (37,063,000) | |
Operating activities: | ||
Net loss | 37,063,000 | $ 38,937,000 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 5,393,000 | 5,281,000 |
Net amortization/(accretion) of premiums/discounts on investments | (134,000) | (110,000) |
Amortization of deferred debt issuance costs | 1,266,000 | 725,000 |
Stock-based compensation | 8,840,000 | 8,895,000 |
Provision for bad debt | 93,000 | 24,000 |
Non-cash inventory adjustments | 1,653,000 | 1,061,000 |
Other non-cash adjustments | 175,000 | (62,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 993,000 | 797,000 |
Inventories | (5,471,000) | (3,847,000) |
Prepaid expenses and other assets | (857,000) | 384,000 |
Accounts payable | 345,000 | (3,408,000) |
Accrued compensation | (406,000) | 1,053,000 |
Other current and non-current liabilities | (398,000) | (756,000) |
Net cash used in operating activities | (25,571,000) | (28,900,000) |
Investing activities: | ||
Purchases of property and equipment | (1,193,000) | (1,060,000) |
Purchases of marketable securities | (26,735,000) | (28,785,000) |
Maturities of marketable securities | 26,880,000 | 56,500,000 |
Net cash provided by (used in) investing activities | (1,048,000) | 26,655,000 |
Financing activities: | ||
Proceeds from issuance of common stock | 2,837,000 | 535,000 |
Principal repayment of borrowings | (35,070,000) | (68,000) |
Proceeds from borrowings | 50,000,000 | 0 |
Payments associated with debt issuance | (3,588,000) | (20,000) |
Proceeds from stock option exercises | (432,000) | (22,000) |
Net cash provided by (used in) financing activities | 14,611,000 | 469,000 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 30,000 | 27,000 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (11,978,000) | (1,749,000) |
Cash, cash equivalents, and restricted cash at beginning of year | 37,044,000 | 27,512,000 |
Cash, cash equivalents, and restricted cash at end of period | 25,066,000 | 25,763,000 |
Non-cash investing and financing activities: | ||
Transfer of systems (from) to property and equipment into (from) inventory | 1,492,000 | 2,477,000 |
Property and equipment included in accounts payable | 147,000 | 746,000 |
Supplemental cash flow information: | ||
Cash paid for income taxes, net | 85,000 | 133,000 |
Cash paid for interest | $ 2,890,000 | $ 1,517,000 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity Statement - USD ($) shares in Thousands, $ in Thousands | Total | Additional Paid-in Capital [Member] | Common Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] |
Shares, Outstanding | 55,066 | ||||
Stockholders' Equity Attributable to Parent | $ 71,154 | $ 487,525 | $ 6 | $ 8 | $ (416,385) |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 8,895 | 8,895 | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 134 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 535 | 535 | |||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 5 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 23 | 23 | |||
Net Income (Loss) Attributable to Parent | (38,937) | (38,937) | |||
Temporary Equity, Foreign Currency Translation Adjustments | (31) | (31) | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 750 | ||||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 40 | 40 | |||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | 27 | 27 | |||
Shares, Outstanding | 55,753 | ||||
Stockholders' Equity Attributable to Parent | 49,649 | 493,921 | $ 6 | 51 | (444,329) |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 3,096 | 3,096 | |||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 0 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 1 | 1 | |||
Net Income (Loss) Attributable to Parent | (10,993) | (10,993) | |||
Temporary Equity, Foreign Currency Translation Adjustments | (51) | (51) | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 202 | ||||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | 4 | 4 | |||
Shares, Outstanding | 55,955 | ||||
Stockholders' Equity Attributable to Parent | 41,706 | 497,018 | $ 6 | 4 | (455,322) |
Shares, Outstanding | 56,240 | ||||
Stockholders' Equity Attributable to Parent | 33,547 | 500,344 | $ 6 | 80 | (466,883) |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 8,840 | 8,840 | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 105 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 464 | 464 | |||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | $ 1,233 | ||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 74 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 430 | 430 | |||
Net Income (Loss) Attributable to Parent | $ (37,063) | (37,063) | |||
Stock Issued During Period, Shares, New Issues | 392 | 392 | |||
Stock Issued During Period, Value, New Issues | $ 2,373 | 2,373 | |||
Temporary Equity, Foreign Currency Translation Adjustments | (37) | (37) | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | 8 | 8 | |||
Shares, Outstanding | 57,430 | ||||
Stockholders' Equity Attributable to Parent | 14,781 | 506,949 | $ 6 | 97 | (492,271) |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 3,129 | 3,129 | |||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | $ 219 | ||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 3 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 0 | 0 | |||
Net Income (Loss) Attributable to Parent | (11,675) | (11,675) | |||
Stock Issued During Period, Shares, New Issues | 392 | ||||
Stock Issued During Period, Value, New Issues | 2,373 | $ 2,373 | |||
Temporary Equity, Foreign Currency Translation Adjustments | (46) | (46) | |||
Shares, Outstanding | 58,044 | ||||
Stockholders' Equity Attributable to Parent | $ 8,562 | $ 512,451 | $ 6 | $ 51 | $ (503,946) |
Organization and Basis of Prese
Organization and Basis of Presentation (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation GenMark Diagnostics, Inc., the Company or GenMark, was formed by Osmetech plc as a Delaware corporation in February 2010, and had no operations prior to its initial public offering, which was completed in June 2010. The Company is a provider of multiplex molecular diagnostic solutions designed to enhance patient care, improve key quality metrics, and reduce the total cost-of-care. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or U.S. GAAP, and applicable regulations of the U.S. Securities and Exchange Commission, or the SEC, and should be read in conjunction with the audited financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 filed with the SEC on February 25, 2019. These unaudited condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These adjustments are of a normal, recurring nature. Interim period operating results may not be indicative of the operating results for the full year or any future period. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company has experienced net losses and negative cash flows from operating activities since its inception and had an accumulated deficit of $503,946,000 as of September 30, 2019 . The Company's ability to transition to profitable operations is dependent upon achieving a level of revenues adequate to support its cost structure through expanding its product offerings and consequently increasing its product revenues. As of September 30, 2019 , the Company had available cash, cash equivalents, and marketable securities of $33,187,000 and working capital of $36,632,000 available to fund future operations. The Company has prepared cash flow forecasts which indicate, based on the Company's current cash resources available and working capital, that the Company will have sufficient resources to fund its operations for at least one year after the date the financial statements are issued. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the notes thereto. The Company’s significant estimates included in the preparation of the financial statements are related to accounts receivable, inventories, property and equipment, leases, intangible assets, employee-related compensation accruals, warranty liabilities, tax valuation accounts, and stock-based compensation. Actual results could differ from those estimates. In June 2019, the Company changed its estimate of the forfeiture rate used to determine stock-based compensation expense based upon recent employment history. The change in forfeiture rate resulted in an additional $174,000 in stock-based compensation expense. Segment Information The Company currently operates in one reportable business segment, which encompasses the development, manufacturing, sales and support of instruments and molecular tests based on its proprietary eSensor® detection technology. Substantially all of the Company’s operations and assets are in the United States. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or the FASB, or other standard setting bodies that the Company adopts as of the specified effective date. In June 2018, the FASB issued Accounting Standards Update, or ASU, 2018-07, Compensation - Stock Compensation (Topic 718) , which simplifies the accounting for non-employee share-based payment transactions. The new standard expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018 (including interim periods within that fiscal year), with early adoption permitted. The Company adopted this new standard in the second quarter of 2018 and determined its application did not have a material impact on the Company's unaudited condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments , which introduces a new methodology for recognizing credit losses on financial instruments. The new standard requires entities to measure financial instruments at their amortized cost basis net of an allowance for credit losses. The allowance for credit losses must reflect an entity's current estimate of all expected credit losses. The new guidance also requires entities to present credit losses on debt securities accounted for under the available-for-sale method as an allowance rather than a write down. The new guidance must be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period presented and is effective for fiscal years beginning after December 15, 2019. The Company is in the process of evaluating the impact of this standard on its unaudited consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases, which outlines a comprehensive lease accounting model and supersedes the prior lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use, or ROU, assets for all leases with lease terms of greater than 12 months. The guidance also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new guidance must be adopted using the modified retrospective approach and is effective for annual periods beginning after December 15, 2018. The Company adopted the new standard in the first quarter of 2019 using the package of transition practical expedients. The Company recognized non-current ROU assets of $5,097,000 and current and non-current lease liabilities of $1,780,000 and $6,832,000 , respectively, upon adoption. Deferred rent is now presented as an offset to the Company's non-current operating lease ROU assets. The new lease standard did not have a material impact on the Company's unaudited condensed consolidated statements of operations, cash flows, or stockholders' equity. Revenue The Company recognizes revenue from operations through the sale of products and other services. Product revenue comprises the sale of diagnostic tests and instruments, as well as related services. Revenue is recognized when control of products and services is transferred to the customer in an amount that reflects the consideration that the Company expects to receive from the customer in exchange for those products and services. This process involves identifying the contract with the 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. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. Revenue from product sales is recognized generally upon shipment to the end customer, which is when control of the product is deemed to be transferred. Invoicing typically occurs upon shipment and the term between invoicing and when payment is due is not significant. Revenue from instrument services is recognized as the services are rendered, typically evenly over the contract term. Revenue is recorded net of discounts and sales taxes collected on behalf of governmental authorities. Employee sales commissions are recorded as selling, general, and administrative expenses when incurred or amortized over the estimated contract term when resulting from new contract acquisition efforts. The Company allocates contract price to each performance obligation in proportion to its stand-alone selling price. The stand-alone selling price is determined by the Company's best estimate of stand-alone selling price using average selling prices over a rolling 12-month period along with a specific assessment of any unique circumstances of the contract. For those products for which there is limited sales history, the Company makes price determinations based on similar product sales data. The following table represents disaggregated revenue by source (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenue Source: ePlex product revenue $ 13,365 $ 6,743 $ 41,051 $ 25,757 XT-8 product revenue 7,457 8,970 19,362 25,399 Total product revenue 20,822 15,713 60,413 51,156 License and other revenue 96 82 412 225 Total revenue $ 20,918 $ 15,795 $ 60,825 $ 51,381 Cash, Cash Equivalents and Marketable Securities Cash and cash equivalents consist of cash on deposit with banks, money market instruments, and certificates of deposit with original maturities of three months or less at the date of purchase. Marketable securities consist of certificates of deposits that mature in greater than three months. Marketable securities are accounted for as "available-for-sale" with the carrying amounts reported in the balance sheets stated at cost, which approximates their fair market value, with unrealized gains and losses, if any, reported as a separate component of stockholders' equity and included in comprehensive loss. Restricted Cash Restricted cash represents amounts designated for uses other than current operations and was $758,000 as of both September 30, 2019 and December 31, 2018 , which represented an amount held as security for the Company’s letter of credit with Banc of California. The following table shows a reconciliation of the Company's cash and cash equivalents in the Unaudited Condensed Consolidated Balance Sheet to cash, cash equivalents, and restricted cash in the Unaudited Condensed Consolidated Statement of Cash Flows as of September 30, 2019 and 2018 (in thousands): September 30, 2019 2018 Cash and cash equivalents 24,308 25,005 Restricted cash 758 758 Total cash, cash equivalents, and restricted cash 25,066 25,763 Receivables Accounts receivable consist of amounts due to the Company for sales to customers and are recorded net of an allowance for doubtful accounts. The allowance for doubtful accounts is determined based on an assessment of the collectability of specific customer accounts, the aging of accounts receivable, and a reserve for unknown items based upon the Company’s historical experience. Product Warranties The Company generally offers a one-year warranty for its instruments sold to customers and typically up to a sixty-day warranty for consumables. Factors that affect the Company’s warranty reserves include the number of units sold, historical and anticipated rates of warranty repairs, and the cost per repair. The Company periodically assesses the adequacy of its warranty reserve and adjusts the amount as appropriate. Intangible Assets Intangible assets consist of licenses or sublicenses to technology covered by patents owned by third parties, and are amortized on a straight-line basis over the expected useful lives of these assets, which is generally ten years. Amortization of licenses typically begins upon the Company obtaining access to the licensed technology and is recorded in cost of revenues for licenses supporting commercialized products. The amortization of licenses to technology supporting products in development is recorded in research and development expenses. Impairment of Long-Lived Assets The Company assesses the recoverability of long-lived assets, including intangible assets, by periodically evaluating the carrying value whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If impairment is indicated, the Company writes down the carrying value of the asset to its estimated fair value. This fair value is primarily determined based on estimated discounted cash flows. Inventories Inventories are stated at the lower of cost (first-in, first-out) or net realizable value and include direct labor, materials, and manufacturing overhead. The Company periodically reviews inventory for evidence of slow-moving or obsolete parts, and writes inventory down to net realizable value, as needed. This write-down is based on management’s review of inventories on hand, compared to estimated future usage and sales, shelf-life assumptions, and assumptions about the likelihood of obsolescence. If actual market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Inventory impairment charges establish a new cost basis for inventory and charges are not reversed subsequently to income, even if circumstances later suggest that increased carrying amounts are recoverable. Property and Equipment, net Property, equipment and leasehold improvements are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which are identified below. Repair and maintenance costs are expensed as incurred. Machinery and laboratory equipment 3 - 5 years Instruments 4 - 5 years Office equipment 3 - 7 years Leasehold improvements over the shorter of the remaining life of the lease or the useful economic life of the asset Leases The Company determines if an arrangement is a lease at inception. Operating leases are recorded in the consolidated balance sheets as noncurrent operating lease ROU assets and current and noncurrent operating lease liabilities. Finance leases are recorded in the consolidated balance sheets as other current assets and liabilities and other non-current assets and liabilities. ROU assets represent the Company’s right to use an underlying asset over the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease liabilities are recognized at the commencement date based on the present value of the Company’s lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of its lease payments. ROU assets are recognized at the commencement date based upon the initial measurement of the operating lease liability less any lease incentives received. The Company’s lease agreements can include both lease and non-lease components. The Company accounts for each lease component separately from the non-lease components within its lease agreements. Income Taxes Current income tax expense is the amount of income taxes expected to be payable for the current year. A deferred income tax liability or asset is established for the expected future tax consequences resulting from the differences in financial reporting and tax bases of assets and liabilities. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized. A full valuation allowance has been recorded against the Company’s net deferred tax assets due to the uncertainty surrounding the Company’s ability to utilize these assets in the future. The Company provides for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement standards prescribed by the authoritative guidance on income taxes. Amounts for uncertain tax positions are adjusted in periods when new information becomes available or when positions are effectively settled. The Company recognizes accrued interest related to uncertain tax positions as a component of income tax expense. A tax position that is more likely than not to be realized is measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with the taxing authority that has full knowledge of all relevant information. Measurement of a tax position that meets the more likely than not threshold considers the amounts and probabilities of the outcomes that could be realized upon settlement using the facts, circumstances and information available at the reporting date. |
Net Loss per Common Share (Note
Net Loss per Common Share (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss per Common Share | Net Loss per Common Share Basic net loss per share is calculated by dividing loss available to stockholders of the Company's common stock (the numerator) by the weighted average number of shares of the Company's common stock outstanding during the period (the denominator). Shares issued during the period and shares reacquired during the period are weighted for the portion of the period that they were outstanding. Diluted loss per share is calculated in a similar way to basic loss per share except that the denominator is increased to include the number of additional shares that would have been outstanding if the dilutive potential shares had been issued, unless the effect would be anti-dilutive. The calculations of diluted net loss per share for each of the nine months ended September 30, 2019 and 2018 did not include the effects of the following stock options and other equity awards which were outstanding as of the end of each period because the inclusion of these securities would have been anti-dilutive (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Options outstanding to purchase common stock 2,052 2,445 2,052 2,445 Other unvested equity awards 3,635 3,466 3,635 3,466 Total 5,687 5,911 5,687 5,911 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity awards may be granted at the discretion of the Compensation Committee of the Board of Directors under the Company's 2010 Equity Incentive Plan, as amended, or the 2010 Plan, in connection with the hiring or retention of personnel and are subject to certain conditions. The Company recognizes stock-based compensation expense related to stock options, restricted stock units, and market-based stock units granted to employees, directors and non-employee advisors in exchange for services under the 2010 Plan, and employee stock purchases under the Company's Amended and Restated 2013 Employee Stock Purchase Plan, or the ESPP. Employee participation in the 2010 Plan is at the discretion of the Compensation Committee of the Board of Directors of the Company. Each equity award grant reduces the number of shares available for grant under the 2010 Plan. Stock-based compensation expense is recorded in cost of sales, sales and marketing, research and development, and/or general and administrative expenses based on the employee's respective function. During the nine months ended September 30, 2019 and 2018 , the Company recognized stock-based compensation expense of $8,840,000 and $8,895,000 , respectively. The Company recognized stock-based compensation expense of $3,129,000 and $3,096,000 , respectively, during the three months ended September 30, 2019 and 2018 . Stock Options The fair value of stock options granted is derived from the Black-Scholes Option Pricing Model, which uses several judgment-based variables to calculate the expense. The inputs include the expected term of the stock option, the expected volatility, and other factors. • Expected Term. The expected term represents the period that the stock-based awards are expected to be outstanding and is determined by using the simplified method. • Expected Volatility . Expected volatility represents the estimated volatility in the Company’s stock price over the expected term of the stock option and is determined by review of the Company’s and similar companies’ historical experience. • Expected Dividend . The Black-Scholes Option Pricing Model calls for a single expected dividend yield as an input. The Company has assumed no dividends as it has never paid dividends and has no current plans to do so. • Risk-Free Interest Rate. The risk-free interest rate used in the Black-Scholes Option Pricing Model is based on published U.S. Treasury rates in effect at the time of grant for periods corresponding with the expected term of the option. All stock options granted under the 2010 Plan are exercisable at a per share price equal to the closing quoted market price of a share of the Company’s common stock on the NASDAQ Global Market on the grant date and generally vest over a period of four years. Stock options are generally exercisable for a period of up to ten years after grant and are typically forfeited if employment is terminated before the options vest. The Company's stock option activity for the nine months ended September 30, 2019 was as follows: Number of Shares Weighted Average Exercise Price Outstanding at December 31, 2018 2,439,914 $ 9.57 Granted — $ — Exercised (114,883 ) $ 5.99 Cancelled (273,414 ) $ 11.56 Outstanding at September 30, 2019 2,051,617 $ 9.51 Vested and expected to vest at September 30, 2019 2,051,617 $ 9.51 Exercisable at September 30, 2019 2,051,617 $ 9.51 Options that were exercisable as of September 30, 2019 had a remaining weighted average contractual term of 3.50 years, and an aggregate intrinsic value of $759,000 . As of September 30, 2019 , there were 2,051,617 stock options outstanding, which had a remaining weighted average contractual term of 3.50 years and an aggregate intrinsic value of $759,000 . No stock options were granted during the nine months ended September 30, 2019 . Restricted Stock Units Restricted stock units granted under the 2010 Plan generally vest over a period of between one and four years and are typically forfeited if service to the Company ceases before the restricted stock units vest. The compensation expense related to the restricted stock units is calculated as the fair market value of the Company's stock on the grant date and is adjusted for estimated forfeitures. Restrictions expire after the grant date in accordance with specific provisions in the applicable award agreement. The Company’s restricted stock unit activity for the nine months ended September 30, 2019 was as follows: Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2018 2,665,708 $ 6.12 Granted 1,564,623 $ 6.73 Vested (1,087,440 ) $ 6.02 Cancelled (268,332 ) $ 6.72 Unvested at September 30, 2019 2,874,559 $ 6.43 As of September 30, 2019 , there was $14,125,000 of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted average period of 2.62 years. The total fair value of restricted stock units that vested during the nine months ended September 30, 2019 and 2018 was $7,479,000 and $4,392,000 , respectively. Market-Based Stock Units The Company granted market-based stock units in each of February 2019 , 2018 , and 2017 , which may result in the recipient receiving shares of stock equal to 200% of the target number of units granted. The vesting and issuance of Company stock pursuant to market-based stock units depends on the Company's stock performance as compared to the NASDAQ Composite Index over the three -year period following the grant, subject to the recipient's continued service with the Company. As of September 30, 2019 , there was $2,685,000 of unrecognized stock-based compensation expense related to market-based stock unit awards, which is expected to be recognized over a weighted average period of 1.65 years. The Company’s market-based stock unit activity for the nine months ended September 30, 2019 was as follows: Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2018 328,739 $ 10.03 Granted 460,000 $ 10.22 Cancelled (28,334) $ 9.39 Unvested at September 30, 2019 760,405 $ 10.16 The fair value of these market-based stock units was estimated on the grant date using the Monte Carlo Simulation Valuation Model, which estimates the potential outcome of achieving the market conditions based on simulated future stock prices, with the following assumptions for the nine months ended September 30, 2019 and 2018 : Nine Months Ended 2019 2018 Expected volatility 64 % 65 % Risk-free interest rate 2.50 % 2.40 % Expected dividend — % — % Weighted average fair value $10.11 - $10.31 $ 7.19 Employee Stock Purchase Plan The Company's stockholders originally approved the ESPP in May 2013. In May 2018, the Company's stockholders approved the amendment and restatement of the ESPP, which increased the shares authorized for issuance under the ESPP from 650,000 shares to 1,750,000 shares. The price at which stock is purchased under the ESPP is equal to 85% of the fair market value of the Company's common stock on the first or the last day of the offering period, whichever is lower. Generally, each offering under the ESPP will be for a period of six months as determined by the Company's Board of Directors; provided that no offering period may exceed 27 months . Employees may invest up to 10% of their qualifying gross compensation through payroll deductions. In no event may an employee purchase more than 1,500 shares of common stock during any six-month offering period. As of September 30, 2019 , there were 835,818 shares of common stock available for issuance under the ESPP. The ESPP is a compensatory plan as defined by the authoritative guidance for stock compensation; therefore, stock-based compensation expense related to the ESPP has been recorded during each of the nine months ended September 30, 2019 and 2018 . Stock-Based Compensation Expense Recognition Stock-based compensation was recognized in the unaudited condensed consolidated statements of comprehensive loss as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cost of revenue $ 248 $ 230 $ 700 $ 637 Sales and marketing 801 719 2,212 2,059 Research and development 436 605 1,308 1,890 General and administrative 1,644 1,542 4,620 4,309 Total stock-based compensation expense $ 3,129 $ 3,096 $ 8,840 $ 8,895 Stock-based compensation capitalized during the periods presented was not material and there was no unrecognized tax benefit related to stock-based compensation for either of the nine months ended September 30, 2019 and 2018 . |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | Stockholders' Equity On August 5, 2019, the Company entered into an Equity Distribution Agreement, or the Distribution Agreement, with Canaccord Genuity LLC, or Canaccord, pursuant to which the Company may offer and sell, from time to time, shares of the Company’s common stock having an aggregate offering price of up to $35 million . Under the Distribution Agreement, Canaccord may sell shares by any method deemed to be an “at-the-market” offering as defined in Rule 415 under the U.S. Securities Act of 1933, as amended, or any other method permitted by law, including in privately negotiated transactions. The Company is not obligated to sell any shares under the Distribution Agreement. Canaccord is entitled to a commission of 3% of the aggregate gross proceeds from each sale of shares occurring pursuant to the Distribution Agreement. During the three and nine months ended September 30, 2019 , the Company sold 392,247 shares of common stock under the Equity Distribution Agreement at a weighted average price per share of $6.58 resulting in aggregate gross proceeds of $2.6 million . The Company incurred $207,000 in related transaction costs, comprising commissions paid to Canaccord of $77,000 , as well as $130,000 in additional miscellaneous expenses. |
Condensed Consolidated Financia
Condensed Consolidated Financial Statement Details (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details The following tables show the Company's unaudited condensed consolidated financial statement details as of September 30, 2019 and December 31, 2018 (in thousands): Inventory September 30, 2019 December 31, 2018 Raw materials $ 3,678 $ 2,449 Work-in-process 5,102 3,349 Finished goods 3,790 4,446 Total inventories $ 12,570 $ 10,244 Property and Equipment, Net September 30, 2019 December 31, 2018 Property and equipment — at cost: Machinery and laboratory equipment $ 15,414 $ 15,206 Instruments 16,025 15,089 Office equipment 2,141 2,114 Leasehold improvements 11,259 10,648 Total property and equipment — at cost 44,839 43,057 Less: accumulated depreciation (25,976 ) (21,987 ) Property and equipment, net $ 18,863 $ 21,070 Accrued Warranty The following table shows changes in the Company's accrued warranties for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Beginning accrued warranty balance $ 226 $ 439 $ 330 $ 470 Warranty expenses incurred (342 ) (148 ) (1,054 ) (1,222 ) Provisions 319 84 927 1,127 Ending accrued warranty balance $ 203 $ 375 $ 203 $ 375 |
Intangible Assets, net (Notes)
Intangible Assets, net (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, net | . Intangible Assets, net Intangible assets as of each of September 30, 2019 and December 31, 2018 comprised the following (in thousands): September 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Licensed intellectual property $ 4,750 $ (3,170 ) $ 1,580 $ 4,750 $ (2,727 ) $ 2,023 In July 2012, the Company entered into a development collaboration and license agreement with Advanced Liquid Logic, Inc., or ALL, which was acquired by Illumina, Inc. in July 2013. Under the terms of the agreement, the Company established a collaborative program to develop in-vitro diagnostic products incorporating ALL’s proprietary electro-wetting technology in conjunction with the Company’s electrochemical detection technology. Intellectual property licenses have a weighted average remaining amortization period of 2.68 years as of September 30, 2019 . Amortization expense for these licenses was $147,000 and $156,000 for the three months ended September 30, 2019 and 2018 , respectively, and was $443,000 and $453,000 during the nine months ended September 30, 2019 and 2018 , respectively. Estimated future amortization expense for these licenses is as follows (in thousands): Fiscal Years Ending Future Amortization Expense Remaining in 2019 $ 150 2020 593 2021 593 2022 244 Total $ 1,580 |
Loan Payable (Notes)
Loan Payable (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Loan payable | Long-term debt As of September 30, 2019 and December 31, 2018 , long-term debt consisted of the following (in thousands): September 30, 2019 December 31, 2018 Term Loans Term Loan A - 6.9% interest $ — $ 7,619 Term Loan B - 6.9% interest — 7,619 Term Loan C - 7.4% interest — 12,000 Term Loan D - 8.8% interest — 663 Term Loan E - 8.8% interest — 7,098 Term Loan - 8.4% interest 50,000 — Final fee obligation 2,975 3,288 Unamortized issuance costs (4,255 ) (2,245 ) Total debt, net 48,720 36,042 Current portion of long-term debt — — Long-term debt $ 48,720 $ 36,042 Term Loans In January 2015, the Company entered into a Loan and Security Agreement, or the LSA, with Solar Capital Partners (as successor-in-interest to General Electric Capital Corporation), and certain other financial institutions party thereto, as lenders. Pursuant to the LSA and its subsequent amendments, the Company borrowed $42,762,000 in a series of term loans and had the ability to borrow against a revolving loan in the maximum amount of $5,000,000 . During the term of the LSA, the term loans thereunder accrued interest at a rate equal to ( a) the greater of 1.00% or the three year treasury rate in effect at the time of funding, plus (b) an applicable margin between 4.95% and 5.90% per annum. The Company borrowed al l $42,762,000 under the term loans as provided in the LSA, and the Company did not borrow any of the $5,000,000 available under the revolving loan. On February 1, 2019, or the Effective Date, the Company entered into a new Loan and Security Agreement, or the New LSA, with Solar Capital Ltd. and certain other financial institutions, or, collectively, the Lenders. Pursuant to the New LSA, the Lenders are providing the Company with up to $65,000,000 in a series of term loans, or, collectively, the Term Loans, of which $50,000,000 , or the Tranche 1 Loan, was funded on the Effective Date. An additional $15,000,000 , or the Tranche 2 Loan, is available to be funded at the Company's option, but no later than December 31, 2019 , provided that the Company achieves a designated amount of product revenues on a trailing six-month basis. On the Effective Date, approximately $38,800,000 of the proceeds from the Tranche 1 Loan were used by the Company to repay all outstanding principal, interest, related fees, and other obligations under the LSA, with the remaining borrowings to be used to satisfy the Company's working capital needs and for other general business purposes. The Company accounted for the repayment of its obligations under the LSA as a debt modification. The Company has capitalized the issuance costs it incurred when entering into the New LSA, which are being amortized over the remaining term of the New LSA. The Term Loans under the New LSA will accrue interest at a floating per annum rate in effect from time-to-time equal to (a) the greater of 2.51% or the one-month LIBOR rate then in effect as of the applicable payment date, plus (b) 5.90% per annum . The Company is only required to make interest payments on amounts borrowed pursuant to the Term Loans from the applicable funding date until February 28, 2021 , or the Interest Only Period. If the Company exercises its option to borrow the Tranche 2 Loan and the Company achieves an additional designated amount of product revenues on a trailing six-month basis on or before December 31, 2020 , then the Interest Only Period may, at the Company’s election, be extended for both Term Loans through February 28, 2022 . Following the Interest Only Period (as the same may be extended pursuant to the terms of the New LSA), monthly installments of principal and interest under the Term Loans will be due until the original principal amount and applicable interest is fully repaid by February 1, 2023 , or the Final Maturity Date. Under the New LSA, the Company is required to comply with certain affirmative and negative covenants, including, without limitation, delivering reports and notices relating to the Company’s financial condition and certain regulatory events and intellectual property matters, as well as limiting the creation of liens, the incurrence of indebtedness, and the making of certain investments, dividends, payments and acquisitions, other than as specifically permitted by the New LSA. As of September 30, 2019 , the Company was in compliance with all covenants under the LSA. The New LSA also contains customary events of default (subject, in certain instances, to specified cure periods), including, but not limited to, the failure to make payments of interest or premium when due, the failure to comply with certain covenants and agreements specified in the New LSA, and the occurrence of a material adverse change, certain regulatory events, or certain insolvency events. Upon the occurrence of an event of default, the Lenders may declare all outstanding principal and accrued but unpaid interest under the New LSA immediately due and payable and may exercise the other rights and remedies as set forth in the New LSA. Debt Issuance Costs As of September 30, 2019 and December 31, 2018 , the Company had $4,255,000 and $2,245,000 , respectively, of unamortized debt issuance discount, which is offset against borrowings in long-term and short-term debt. Amortization of debt issuance costs was $450,000 and $142,000 for the three months ended September 30, 2019 and 2018 , respectively, and $1,266,000 and $725,000 for the nine months ended September 30, 2019 and 2018 , respectively. Amortization of debt issuance costs is included in interest expense in the Company's unaudited condensed consolidated statements of comprehensive loss for the periods presented. Letter of Credit In September 2012, the Company provided a $758,000 letter of credit issued by Banc of California to the landlord of its executive office facility in Carlsbad, California. This letter of credit was secured with $758,000 of restricted cash as of September 30, 2019 . |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has operating and finance lease agreements for its office, manufacturing, warehousing and laboratory space and for office equipment. Rent and operating expenses charged under these arrangements was $474,000 and $485,000 for the three months ended September 30, 2019 and 2018 , respectively, and $1,483,000 and $1,355,000 for the nine months ended September 30, 2019 and 2018 . Pursuant to the adoption of the new lease standard, the Company reported noncurrent operating lease ROU assets of $4,766,000 , and current and noncurrent operating lease liabilities of $1,828,000 and $6,071,000 , respectively, as of September 30, 2019 . The Company reported current and noncurrent deferred rent under the existing lease standard of $520,000 and $2,996,000 , respectively, at December 31, 2018. The Company's operating lease liabilities were measured at a weighted average discount rate of 11.2% and have a weighted average remaining term of 5.22 years. As of September 30, 2019 , the future minimum lease payments required under the Company's lease arrangements are as follows (in thousands): Fiscal Years Ending Future Minimum Lease Payments Remaining in 2019 $ 504 2020 1,997 2021 2,015 2022 2,077 2023 1,939 Thereafter 2,084 Total 10,616 Less: imputed interest (2,717 ) Total operating lease liabilities $ 7,899 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair Value of Financial Instruments The carrying amounts of financial instruments, such as cash equivalents, restricted cash, accounts receivable, and accounts payable approximate the related fair values due to the short-term maturities of these instruments. The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last is considered unobservable, to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table presents the financial instruments measured at fair value on a recurring basis and the valuation approach applied to each class of financial instruments as of September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents Money market funds $ 2,719 $ — $ — $ 2,719 Commercial paper — 1,596 — 1,596 Marketable securities Corporate notes and bonds — 7,081 — 7,081 U.S. government and agency securities — 1,000 — 1,000 Commercial paper — 798 — 798 Total $ 2,719 $ 10,475 $ — $ 13,194 December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents Money market funds $ 8,953 $ — $ — $ 8,953 Marketable securities Corporate notes and bonds — 6,389 — 6,389 U.S. government and agency securities — 2,493 — 2,493 Total $ 8,953 $ 8,882 $ — $ 17,835 Level 2 marketable securities are priced using quoted market prices for similar instruments or nonbinding market prices that are corroborated by observable market data. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data, which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets and liabilities. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs. |
Marketable Securities (Notes)
Marketable Securities (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable securities | Marketable Securities The following table summarizes the Company’s marketable securities as of each of September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 7,078 $ 3 $ — $ 7,081 U.S. government and agency securities 1,000 — — 1,000 Commercial paper 798 — — 798 Total $ 8,876 $ 3 $ — $ 8,879 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 6,393 $ — $ (4 ) $ 6,389 Commercial paper 2,493 — — 2,493 Total $ 8,886 $ — $ (4 ) $ 8,882 All of the Company's marketable securities have a maturity of one year or less. |
Income Taxes (Notes)
Income Taxes (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates, and tax planning opportunities available in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. As of September 30, 2019 , the Company recorded a full valuation allowance against all of its net deferred tax assets due to the uncertainty surrounding the Company’s ability to utilize these assets in the future. Due to the Company's losses, it only records a tax provision or benefit related to uncertain tax positions and related interest and minimum tax payments or refunds. The Company recorded income tax (benefit) expense of $(33,000) and $5,000 for the three months ended September 30, 2019 and 2018 , respectively, and $28,000 and $59,000 for the nine months ended September 30, 2019 and 2018 , respectively. The Company is subject to taxation in the United States and in various state and foreign jurisdictions. The Company's federal and state tax returns since inception are subject to examination due to the carryover of net operating losses. The statute of limitations for the assessment and collection of income taxes related to other foreign tax returns varies by country. In the foreign countries where we have operations, these time periods generally range from three to five years after the year for which the tax return is due or the tax is assessed. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or U.S. GAAP, and applicable regulations of the U.S. Securities and Exchange Commission, or the SEC, and should be read in conjunction with the audited financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 filed with the SEC on February 25, 2019. These unaudited condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These adjustments are of a normal, recurring nature. Interim period operating results may not be indicative of the operating results for the full year or any future period. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company has experienced net losses and negative cash flows from operating activities since its inception and had an accumulated deficit of $503,946,000 as of September 30, 2019 . The Company's ability to transition to profitable operations is dependent upon achieving a level of revenues adequate to support its cost structure through expanding its product offerings and consequently increasing its product revenues. As of September 30, 2019 , the Company had available cash, cash equivalents, and marketable securities of $33,187,000 and working capital of $36,632,000 available to fund future operations. The Company has prepared cash flow forecasts which indicate, based on the Company's current cash resources available and working capital, that the Company will have sufficient resources to fund its operations for at least one year after the date the financial statements are issued. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the notes thereto. The Company’s significant estimates included in the preparation of the financial statements are related to accounts receivable, inventories, property and equipment, leases, intangible assets, employee-related compensation accruals, warranty liabilities, tax valuation accounts, and stock-based compensation. Actual results could differ from those estimates. |
Segment Information | Segment Information The Company currently operates in one reportable business segment, which encompasses the development, manufacturing, sales and support of instruments and molecular tests based on its proprietary eSensor® detection technology. Substantially all of the Company’s operations and assets are in the United States. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or the FASB, or other standard setting bodies that the Company adopts as of the specified effective date. In June 2018, the FASB issued Accounting Standards Update, or ASU, 2018-07, Compensation - Stock Compensation (Topic 718) , which simplifies the accounting for non-employee share-based payment transactions. The new standard expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018 (including interim periods within that fiscal year), with early adoption permitted. The Company adopted this new standard in the second quarter of 2018 and determined its application did not have a material impact on the Company's unaudited condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments , which introduces a new methodology for recognizing credit losses on financial instruments. The new standard requires entities to measure financial instruments at their amortized cost basis net of an allowance for credit losses. The allowance for credit losses must reflect an entity's current estimate of all expected credit losses. The new guidance also requires entities to present credit losses on debt securities accounted for under the available-for-sale method as an allowance rather than a write down. The new guidance must be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period presented and is effective for fiscal years beginning after December 15, 2019. The Company is in the process of evaluating the impact of this standard on its unaudited consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases, which outlines a comprehensive lease accounting model and supersedes the prior lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use, or ROU, assets for all leases with lease terms of greater than 12 months. The guidance also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new guidance must be adopted using the modified retrospective approach and is effective for annual periods beginning after December 15, 2018. The Company adopted the new standard in the first quarter of 2019 using the package of transition practical expedients. The Company recognized non-current ROU assets of $5,097,000 and current and non-current lease liabilities of $1,780,000 and $6,832,000 , respectively, upon adoption. Deferred rent is now presented as an offset to the Company's non-current operating lease ROU assets. The new lease standard did not have a material impact on the Company's unaudited condensed consolidated statements of operations, cash flows, or stockholders' equity. |
Revenue from Contract with Customer | Revenue The Company recognizes revenue from operations through the sale of products and other services. Product revenue comprises the sale of diagnostic tests and instruments, as well as related services. Revenue is recognized when control of products and services is transferred to the customer in an amount that reflects the consideration that the Company expects to receive from the customer in exchange for those products and services. This process involves identifying the contract with the 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. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. Revenue from product sales is recognized generally upon shipment to the end customer, which is when control of the product is deemed to be transferred. Invoicing typically occurs upon shipment and the term between invoicing and when payment is due is not significant. Revenue from instrument services is recognized as the services are rendered, typically evenly over the contract term. Revenue is recorded net of discounts and sales taxes collected on behalf of governmental authorities. Employee sales commissions are recorded as selling, general, and administrative expenses when incurred or amortized over the estimated contract term when resulting from new contract acquisition efforts. The Company allocates contract price to each performance obligation in proportion to its stand-alone selling price. The stand-alone selling price is determined by the Company's best estimate of stand-alone selling price using average selling prices over a rolling 12-month period along with a specific assessment of any unique circumstances of the contract. For those products for which there is limited sales history, the Company makes price determinations based on similar product sales data. The following table represents disaggregated revenue by source (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenue Source: ePlex product revenue $ 13,365 $ 6,743 $ 41,051 $ 25,757 XT-8 product revenue 7,457 8,970 19,362 25,399 Total product revenue 20,822 15,713 60,413 51,156 License and other revenue 96 82 412 225 Total revenue $ 20,918 $ 15,795 $ 60,825 $ 51,381 |
Cash, Cash Equivalents and Marketable Securities | Cash, Cash Equivalents and Marketable Securities Cash and cash equivalents consist of cash on deposit with banks, money market instruments, and certificates of deposit with original maturities of three months or less at the date of purchase. Marketable securities consist of certificates of deposits that mature in greater than three months. Marketable securities are accounted for as "available-for-sale" with the carrying amounts reported in the balance sheets stated at cost, which approximates their fair market value, with unrealized gains and losses, if any, reported as a separate component of stockholders' equity and included in comprehensive loss. |
Receivables | Receivables Accounts receivable consist of amounts due to the Company for sales to customers and are recorded net of an allowance for doubtful accounts. The allowance for doubtful accounts is determined based on an assessment of the collectability of specific customer accounts, the aging of accounts receivable, and a reserve for unknown items based upon the Company’s historical experience. |
Product Warranties | Product Warranties The Company generally offers a one-year warranty for its instruments sold to customers and typically up to a sixty-day warranty for consumables. Factors that affect the Company’s warranty reserves include the number of units sold, historical and anticipated rates of warranty repairs, and the cost per repair. The Company periodically assesses the adequacy of its warranty reserve and adjusts the amount as appropriate. |
Intangible Assets | Intangible Assets Intangible assets consist of licenses or sublicenses to technology covered by patents owned by third parties, and are amortized on a straight-line basis over the expected useful lives of these assets, which is generally ten years. Amortization of licenses typically begins upon the Company obtaining access to the licensed technology and is recorded in cost of revenues for licenses supporting commercialized products. The amortization of licenses to technology supporting products in development is recorded in research and development expenses. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company assesses the recoverability of long-lived assets, including intangible assets, by periodically evaluating the carrying value whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If impairment is indicated, the Company writes down the carrying value of the asset to its estimated fair value. This fair value is primarily determined based on estimated discounted cash flows. |
Inventories | Inventories Inventories are stated at the lower of cost (first-in, first-out) or net realizable value and include direct labor, materials, and manufacturing overhead. The Company periodically reviews inventory for evidence of slow-moving or obsolete parts, and writes inventory down to net realizable value, as needed. This write-down is based on management’s review of inventories on hand, compared to estimated future usage and sales, shelf-life assumptions, and assumptions about the likelihood of obsolescence. If actual market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Inventory impairment charges establish a new cost basis for inventory and charges are not reversed subsequently to income, even if circumstances later suggest that increased carrying amounts are recoverable. |
Property and Equipment, net | Property and Equipment, net Property, equipment and leasehold improvements are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which are identified below. Repair and maintenance costs are expensed as incurred. Machinery and laboratory equipment 3 - 5 years Instruments 4 - 5 years Office equipment 3 - 7 years Leasehold improvements over the shorter of the remaining life of the lease or the useful economic life of the asset |
Income Taxes | Income Taxes Current income tax expense is the amount of income taxes expected to be payable for the current year. A deferred income tax liability or asset is established for the expected future tax consequences resulting from the differences in financial reporting and tax bases of assets and liabilities. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized. A full valuation allowance has been recorded against the Company’s net deferred tax assets due to the uncertainty surrounding the Company’s ability to utilize these assets in the future. The Company provides for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement standards prescribed by the authoritative guidance on income taxes. Amounts for uncertain tax positions are adjusted in periods when new information becomes available or when positions are effectively settled. The Company recognizes accrued interest related to uncertain tax positions as a component of income tax expense. A tax position that is more likely than not to be realized is measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with the taxing authority that has full knowledge of all relevant information. Measurement of a tax position that meets the more likely than not threshold considers the amounts and probabilities of the outcomes that could be realized upon settlement using the facts, circumstances and information available at the reporting date. |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregation of Revenue | The following table represents disaggregated revenue by source (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenue Source: ePlex product revenue $ 13,365 $ 6,743 $ 41,051 $ 25,757 XT-8 product revenue 7,457 8,970 19,362 25,399 Total product revenue 20,822 15,713 60,413 51,156 License and other revenue 96 82 412 225 Total revenue $ 20,918 $ 15,795 $ 60,825 $ 51,381 |
Property, Plant and Equipment | Property, equipment and leasehold improvements are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which are identified below. Repair and maintenance costs are expensed as incurred. Machinery and laboratory equipment 3 - 5 years Instruments 4 - 5 years Office equipment 3 - 7 years Leasehold improvements over the shorter of the remaining life of the lease or the useful economic life of the asset Property and Equipment, Net September 30, 2019 December 31, 2018 Property and equipment — at cost: Machinery and laboratory equipment $ 15,414 $ 15,206 Instruments 16,025 15,089 Office equipment 2,141 2,114 Leasehold improvements 11,259 10,648 Total property and equipment — at cost 44,839 43,057 Less: accumulated depreciation (25,976 ) (21,987 ) Property and equipment, net $ 18,863 $ 21,070 |
Net Loss per Common Share (Tabl
Net Loss per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computations of diluted net loss per share | The calculations of diluted net loss per share for each of the nine months ended September 30, 2019 and 2018 did not include the effects of the following stock options and other equity awards which were outstanding as of the end of each period because the inclusion of these securities would have been anti-dilutive (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Options outstanding to purchase common stock 2,052 2,445 2,052 2,445 Other unvested equity awards 3,635 3,466 3,635 3,466 Total 5,687 5,911 5,687 5,911 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation, stock options, activity | nine months ended September 30, 2019 was as follows: Number of Shares Weighted Average Exercise Price Outstanding at December 31, 2018 2,439,914 $ 9.57 Granted — $ — Exercised (114,883 ) $ 5.99 Cancelled (273,414 ) $ 11.56 Outstanding at September 30, 2019 2,051,617 $ 9.51 Vested and expected to vest at September 30, 2019 2,051,617 $ 9.51 Exercisable at September 30, 2019 2,051,617 $ 9.51 |
Schedule of share-based compensation, restricted stock units, activity | The Company’s restricted stock unit activity for the nine months ended September 30, 2019 was as follows: Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2018 2,665,708 $ 6.12 Granted 1,564,623 $ 6.73 Vested (1,087,440 ) $ 6.02 Cancelled (268,332 ) $ 6.72 Unvested at September 30, 2019 2,874,559 $ 6.43 |
Schedule of share-based compensation, market based stock units, activity | The Company’s market-based stock unit activity for the nine months ended September 30, 2019 was as follows: Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2018 328,739 $ 10.03 Granted 460,000 $ 10.22 Cancelled (28,334) $ 9.39 Unvested at September 30, 2019 760,405 $ 10.16 |
Schedule of share-based compensation, market based stock units, valuation assumptions | The fair value of these market-based stock units was estimated on the grant date using the Monte Carlo Simulation Valuation Model, which estimates the potential outcome of achieving the market conditions based on simulated future stock prices, with the following assumptions for the nine months ended September 30, 2019 and 2018 : Nine Months Ended 2019 2018 Expected volatility 64 % 65 % Risk-free interest rate 2.50 % 2.40 % Expected dividend — % — % Weighted average fair value $10.11 - $10.31 $ 7.19 |
Schedule of employee service share-based compensation, allocation of recognized period costs | Stock-based compensation was recognized in the unaudited condensed consolidated statements of comprehensive loss as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cost of revenue $ 248 $ 230 $ 700 $ 637 Sales and marketing 801 719 2,212 2,059 Research and development 436 605 1,308 1,890 General and administrative 1,644 1,542 4,620 4,309 Total stock-based compensation expense $ 3,129 $ 3,096 $ 8,840 $ 8,895 |
Condensed Consolidated Financ_2
Condensed Consolidated Financial Statement Details (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventories | Inventory September 30, 2019 December 31, 2018 Raw materials $ 3,678 $ 2,449 Work-in-process 5,102 3,349 Finished goods 3,790 4,446 Total inventories $ 12,570 $ 10,244 |
Property and equipment, net | Property, equipment and leasehold improvements are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which are identified below. Repair and maintenance costs are expensed as incurred. Machinery and laboratory equipment 3 - 5 years Instruments 4 - 5 years Office equipment 3 - 7 years Leasehold improvements over the shorter of the remaining life of the lease or the useful economic life of the asset Property and Equipment, Net September 30, 2019 December 31, 2018 Property and equipment — at cost: Machinery and laboratory equipment $ 15,414 $ 15,206 Instruments 16,025 15,089 Office equipment 2,141 2,114 Leasehold improvements 11,259 10,648 Total property and equipment — at cost 44,839 43,057 Less: accumulated depreciation (25,976 ) (21,987 ) Property and equipment, net $ 18,863 $ 21,070 |
Accrued warranty | Accrued Warranty The following table shows changes in the Company's accrued warranties for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Beginning accrued warranty balance $ 226 $ 439 $ 330 $ 470 Warranty expenses incurred (342 ) (148 ) (1,054 ) (1,222 ) Provisions 319 84 927 1,127 Ending accrued warranty balance $ 203 $ 375 $ 203 $ 375 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | Intangible assets as of each of September 30, 2019 and December 31, 2018 comprised the following (in thousands): September 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Licensed intellectual property $ 4,750 $ (3,170 ) $ 1,580 $ 4,750 $ (2,727 ) $ 2,023 |
Summary of estimated future amortization expense | Estimated future amortization expense for these licenses is as follows (in thousands): Fiscal Years Ending Future Amortization Expense Remaining in 2019 $ 150 2020 593 2021 593 2022 244 Total $ 1,580 |
Loan Payable (Tables)
Loan Payable (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | As of September 30, 2019 and December 31, 2018 , long-term debt consisted of the following (in thousands): September 30, 2019 December 31, 2018 Term Loans Term Loan A - 6.9% interest $ — $ 7,619 Term Loan B - 6.9% interest — 7,619 Term Loan C - 7.4% interest — 12,000 Term Loan D - 8.8% interest — 663 Term Loan E - 8.8% interest — 7,098 Term Loan - 8.4% interest 50,000 — Final fee obligation 2,975 3,288 Unamortized issuance costs (4,255 ) (2,245 ) Total debt, net 48,720 36,042 Current portion of long-term debt — — Long-term debt $ 48,720 $ 36,042 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of future minimum lease payments | As of September 30, 2019 , the future minimum lease payments required under the Company's lease arrangements are as follows (in thousands): Fiscal Years Ending Future Minimum Lease Payments Remaining in 2019 $ 504 2020 1,997 2021 2,015 2022 2,077 2023 1,939 Thereafter 2,084 Total 10,616 Less: imputed interest (2,717 ) Total operating lease liabilities $ 7,899 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets measured at fair value on a recurring basis | The following table presents the financial instruments measured at fair value on a recurring basis and the valuation approach applied to each class of financial instruments as of September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents Money market funds $ 2,719 $ — $ — $ 2,719 Commercial paper — 1,596 — 1,596 Marketable securities Corporate notes and bonds — 7,081 — 7,081 U.S. government and agency securities — 1,000 — 1,000 Commercial paper — 798 — 798 Total $ 2,719 $ 10,475 $ — $ 13,194 December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents Money market funds $ 8,953 $ — $ — $ 8,953 Marketable securities Corporate notes and bonds — 6,389 — 6,389 U.S. government and agency securities — 2,493 — 2,493 Total $ 8,953 $ 8,882 $ — $ 17,835 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable securities, gross unrealized gains/losses | September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 7,078 $ 3 $ — $ 7,081 U.S. government and agency securities 1,000 — — 1,000 Commercial paper 798 — — 798 Total $ 8,876 $ 3 $ — $ 8,879 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 6,393 $ — $ (4 ) $ 6,389 Commercial paper 2,493 — — 2,493 Total $ 8,886 $ — $ (4 ) $ 8,882 |
Organization and Basis of Pre_4
Organization and Basis of Presentation - Revenue disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 20,822 | $ 15,713 | $ 60,413 | $ 51,156 |
License and other revenue | 96 | 82 | 412 | 225 |
Total revenue | 20,918 | 15,795 | 60,825 | 51,381 |
ePlex Revenue | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 13,365 | 6,743 | 41,051 | 25,757 |
XT-8 Revenue | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 7,457 | $ 8,970 | $ 19,362 | $ 25,399 |
Organization and Basis of Pre_5
Organization and Basis of Presentation - Property and equipment (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Property and Equipment | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Machinery and laboratory equipment | Minimum | |
Property and Equipment | |
Property, Plant, and Equipment, Useful Life | 3 years |
Machinery and laboratory equipment | Maximum | |
Property and Equipment | |
Property, Plant, and Equipment, Useful Life | 5 years |
Instruments | Minimum | |
Property and Equipment | |
Property, Plant, and Equipment, Useful Life | 4 years |
Instruments | Maximum | |
Property and Equipment | |
Property, Plant, and Equipment, Useful Life | 5 years |
Office equipment | Minimum | |
Property and Equipment | |
Property, Plant, and Equipment, Useful Life | 3 years |
Office equipment | Maximum | |
Property and Equipment | |
Property, Plant, and Equipment, Useful Life | 7 years |
Leasehold improvements | |
Property and Equipment | |
Property, Plant and Equipment, Estimated Useful Lives | over the shorter of the remaining life of the lease or the useful economic life of the asset |
Organization and Basis of Pre_6
Organization and Basis of Presentation - Additional information (Details Textual) | 9 Months Ended | ||
Sep. 30, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated deficit | $ (503,946,000) | $ (466,883,000) | |
Cash, cash equivalents, and marketable securities | 33,187,000 | ||
Working Capital | $ 36,632,000 | ||
Sufficient capital to fund its operations | 1 year | ||
Number of Reportable Segments | Segment | 1 | ||
Restricted cash | $ 758,000 | $ 758,000 | $ 758,000 |
Instruments | |||
Product Warranty Liability | |||
Product warranty period | one-year | ||
Reagents | |||
Product Warranty Liability | |||
Product warranty period | sixty-day |
Organization and Basis of Pre_7
Organization and Basis of Presentation Recent Accounting Pronouncements (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Text Block [Abstract] | |||
Schedule of Change in Accounting Estimate [Table Text Block] | 174000 | ||
Operating Lease, Liability, Current | $ 1,828,000 | $ 1,780,000 | $ 0 |
Operating Lease, Liability, Noncurrent | 6,071,000 | 6,832,000 | 0 |
Operating Lease, Right Of Use Asset, Noncurrent | $ 4,766,000 | $ 5,097,000 | $ 0 |
Net Loss per Common Share - Bas
Net Loss per Common Share - Basic and diluted (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Computations of diluted net loss per share | ||||
Antidilutive securities excluded from calculation | 5,687 | 5,911 | 5,687 | 5,911 |
Employee Stock Option | ||||
Computations of diluted net loss per share | ||||
Antidilutive securities excluded from calculation | 2,052 | 2,445 | 2,052 | 2,445 |
Other unvested equity awards | ||||
Computations of diluted net loss per share | ||||
Antidilutive securities excluded from calculation | 3,635 | 3,466 | 3,635 | 3,466 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock awards activity (Details) - 2010 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, outstanding at December 31, 2017, shares | 2,439,914 | |||
Options, granted, shares | 0 | |||
Options, exercised, shares | (114,883) | |||
Options, cancelled, shares | (273,414) | |||
Options, outstanding at June 30, 2018, shares | 2,051,617 | |||
Options, vested and expected to vest, shares | 2,051,617 | |||
Options, exercisable, shares | 2,051,617 | |||
Options, outstanding at December 31, 2017, weighted average exercise price | $ 9.51 | $ 9.51 | $ 9.57 | |
Options, granted, weighted average exercise price | 0 | |||
Options, exercised, weighted average exercise price | 5.99 | |||
Options, cancelled, weighted average exercise price | 11.56 | |||
Options, outstanding at June 30, 2018, weighted average exercise price | 9.51 | |||
Options, vested and expected to vest, weighted average exercise price | 9.51 | |||
Options, exercisable, weighted average exercise price | $ 9.51 | |||
Options, exercisable, weighted average remaining contractual term | 3 years 6 months | |||
Options, exercisable, intrinsic value | $ 759 | |||
Options, outstanding, weighted average remaining contractual term | 3 years 6 months | |||
Options, outstanding, intrinsic value | 759 | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity award other than options, unvested at December 31, 2017, shares | 2,665,708 | |||
Equity award other than options, granted, shares | 1,564,623 | |||
Equity award other than options, vested, shares | (1,087,440) | |||
Equity award other than options, cancelled, shares | (268,332) | |||
Equity award other than options, unvested at June 30, 2018, shares | 2,874,559 | |||
Equity award other than options, unvested, weighted average grant date fair value | $ 6.12 | |||
Equity award other than options, granted, weighted average grant date fair value | 6.73 | |||
Equity award other than options, vested, weighted average grant date fair value | 6.02 | |||
Equity award other than options, cancelled, weighted average grant date fair value | 6.72 | |||
Equity award other than options, unvested, weighted average grant date fair value | $ 6.43 | |||
Equity award other than options, vested in period, fair value | $ 7,479 | $ 4,392 | ||
Nonvested award, compensation cost not yet recognized | 14,125 | |||
Nonvested award, compensation cost not yet recognized, weighted average period for recognition | 2 years 7 months 13 days | |||
Market-based share unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity award other than options, unvested at December 31, 2017, shares | 328,739 | |||
Equity award other than options, granted, shares | 460,000 | |||
Equity award other than options, cancelled, shares | (28,334) | |||
Equity award other than options, unvested at June 30, 2018, shares | 760,405 | |||
Equity award other than options, unvested, weighted average grant date fair value | $ 10.03 | |||
Equity award other than options, granted, weighted average grant date fair value | 10.22 | $ 7.19 | ||
Equity award other than options, cancelled, weighted average grant date fair value | 9.39 | |||
Equity award other than options, unvested, weighted average grant date fair value | $ 10.16 | |||
Nonvested award, compensation cost not yet recognized | $ 2,685 | |||
Nonvested award, compensation cost not yet recognized, weighted average period for recognition | 1 year 7 months 24 days |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation assumptions (Details) - 2010 Equity Incentive Plan - Market-based share unit - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value assumptions, expected volatility rate | 64.00% | 65.00% |
Fair value assumptions, risk free interest rate | 2.50% | 2.40% |
Fair value assumptions, expected dividend rate | 0.00% | 0.00% |
Equity award other than options, granted, weighted average grant date fair value | $ 10.22 | $ 7.19 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity award other than options, granted, weighted average grant date fair value | 10 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity award other than options, granted, weighted average grant date fair value | $ 10 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense recognition (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | $ 3,129,000 | $ 3,096,000 | $ 8,840,000 | $ 8,895,000 |
Allocated share-based compensation expense, capitalized amount | 0 | 0 | 0 | 0 |
Allocated share-based compensation expense, tax benefit | 0 | 0 | 0 | 0 |
2010 Equity Incentive Plan | Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expense | 248,000 | 230,000 | 700,000 | 637,000 |
2010 Equity Incentive Plan | Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expense | 801,000 | 719,000 | 2,212,000 | 2,059,000 |
2010 Equity Incentive Plan | Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expense | 436,000 | 605,000 | 1,308,000 | 1,890,000 |
2010 Equity Incentive Plan | General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expense | $ 1,644,000 | $ 1,542,000 | $ 4,620,000 | $ 4,309,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional information (Details) - shares | 9 Months Ended | |
Sep. 30, 2019 | May 22, 2013 | |
2010 Equity Incentive Plan | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years | |
Award expiration period | 10 years | |
2010 Equity Incentive Plan | Restricted Stock Units (RSUs) | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
2010 Equity Incentive Plan | Restricted Stock Units (RSUs) | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years | |
2010 Equity Incentive Plan | Market-based share unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum MSU payout percentage | 200.00% | |
Award vesting period | 3 years | |
2013 Employee Stock Purchase Plan | Employee stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 650,000 | |
Number of shares available for grant | 835,818 | |
Discount from market price, offering date | 85.00% | |
Maximum number of shares per employee | 1,500 | |
Maximum employee subscription rate | 0.00% | |
2013 Employee Stock Purchase Plan | Employee stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Offering period | 6 months | |
2013 Employee Stock Purchase Plan | Employee stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Offering period | 27 months | |
2013 Employee Stock Purchase Plan Amended and Restated | Employee stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 1,750,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, shares in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesRateshares | |
Type of Issuance Cost [Line Items] | |
Maximum ATM Offering Amount | $ 35,000,000 |
Underwriters commission | Rate | 3.00% |
Stock Issued During Period, Shares, New Issues | shares | 392 |
Weighted Average Price Per Share | $ / shares | $ 6.58 |
Gross Proceeds from Issuance of Common Stock | $ 2,600,000 |
Payments of Stock Issuance Costs | 207,000 |
Issuance Costs Due to Canaccord | |
Type of Issuance Cost [Line Items] | |
Payments of Stock Issuance Costs | 77,000 |
Issuance Costs Due to Additional Parties | |
Type of Issuance Cost [Line Items] | |
Payments of Stock Issuance Costs | $ 130,000 |
Condensed Consolidated Financ_3
Condensed Consolidated Financial Statement Details - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Summary of inventory on hand | ||
Raw materials | $ 3,678 | $ 2,449 |
Work-in-process | 5,102 | 3,349 |
Finished goods | 3,790 | 4,446 |
Total | $ 12,570 | $ 10,244 |
Condensed Consolidated Financ_4
Condensed Consolidated Financial Statement Details - Property and equipment, net (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property and Equipment | ||
Property and equipment — at cost: | $ 44,839 | $ 43,057 |
Less: accumulated depreciation | (25,976) | (21,987) |
Property and equipment, net | 18,863 | 21,070 |
Machinery and laboratory equipment | ||
Property and Equipment | ||
Property and equipment — at cost: | 15,414 | 15,206 |
Instruments | ||
Property and Equipment | ||
Property and equipment — at cost: | 16,025 | 15,089 |
Office equipment | ||
Property and Equipment | ||
Property and equipment — at cost: | 2,141 | 2,114 |
Leasehold improvements | ||
Property and Equipment | ||
Property and equipment — at cost: | $ 11,259 | $ 10,648 |
Condensed Consolidated Financ_5
Condensed Consolidated Financial Statement Details - Accrued warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Product Warranties Disclosures [Abstract] | ||||
Beginning accrued warranty balance | $ 226 | $ 439 | $ 330 | $ 470 |
Warranty expenses incurred | (342) | (148) | (1,054) | (1,222) |
Provisions | 319 | 84 | 927 | 1,127 |
Ending accrued warranty balance | $ 203 | $ 375 | $ 203 | $ 375 |
Intangible Assets, net - Compon
Intangible Assets, net - Components of gross and net intangible asset balances (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization of intangible assets | $ 147,000 | $ 156,000 | $ 443,000 | $ 453,000 | |
Finite-lived intangible assets | |||||
Net carrying amount | 1,580,000 | $ 1,580,000 | |||
Finite-lived intangible assets, remaining amortization period | 2 years 8 months 5 days | ||||
Intellectual Property | |||||
Finite-lived intangible assets | |||||
Gross carrying amount | 4,750,000 | $ 4,750,000 | $ 4,750,000 | ||
Accumulated amortization | (3,170,000) | (3,170,000) | (2,727,000) | ||
Net carrying amount | $ 1,580,000 | $ 1,580,000 | $ 2,023,000 |
Intangible Assets, net - Future
Intangible Assets, net - Future amortization expense (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Summary of estimated future amortization expense | |
Remaining in 2019 | $ 150 |
2020 | 593 |
2021 | 593 |
2022 | 244 |
Net carrying amount | $ 1,580 |
Loan Payable - Term loans and l
Loan Payable - Term loans and line of credit (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Debt Instrument | |||||
Final fee obligation | $ 2,975,000 | $ 2,975,000 | $ 3,288,000 | ||
Unamortized debt issuance costs | (4,255,000) | (4,255,000) | (2,245,000) | ||
Long-term debt, excluding current maturities | $ 48,720,000 | 48,720,000 | 36,042,000 | ||
Amortization of deferred debt issuance costs | 1,266,000 | $ 725,000 | |||
Debt instrument, maturity date | Feb. 1, 2023 | ||||
Debt instrument, interest rate terms | (a) the greater of 2.51% or the one-month LIBOR rate then in effect as of the applicable payment date, plus (b) 5.90% per annum | ||||
Long-term Debt, Contingent Payment of Principal or Interest | December 31, 2020 | ||||
Line of credit facility, maximum borrowing capacity | $ 42,762,000 | 42,762,000 | 42,762,000 | ||
Term Loans, Debt Facility, Maximum Borrowing Capacity | $ 65,000,000 | ||||
Tranche 2 Availability Date | Dec. 31, 2019 | ||||
Proceeds from Issuance of Debt | $ 38,800,000 | ||||
Restricted cash | 758,000 | $ 758,000 | 758,000 | 758,000 | 758,000 |
Letter of credit | |||||
Debt Instrument | |||||
Letters of credit outstanding, amount | 758,000 | 758,000 | |||
Revolving credit facility | |||||
Debt Instrument | |||||
Line of credit facility, maximum borrowing capacity | 5,000,000 | 5,000,000 | |||
Line of credit facility, fair value of amount outstanding | 0 | 0 | 0 | ||
Term Loan A - 6.9% interest | |||||
Debt Instrument | |||||
Long-term debt | $ 0 | $ 0 | 7,619,000 | ||
Debt instrument, interest rate, stated percentage | 6.90% | 6.90% | |||
Line of credit facility, maximum borrowing capacity | $ 10,000,000 | $ 10,000,000 | 10,000,000 | ||
Term Loan B - 6.9% interest | |||||
Debt Instrument | |||||
Long-term debt | $ 0 | $ 0 | 7,619,000 | ||
Debt instrument, interest rate, stated percentage | 6.90% | 6.90% | |||
Line of credit facility, maximum borrowing capacity | $ 10,000,000 | $ 10,000,000 | 10,000,000 | ||
Term Loan C - 7.4% interest | |||||
Debt Instrument | |||||
Long-term debt | $ 0 | $ 0 | 12,000,000 | ||
Debt instrument, interest rate, stated percentage | 7.40% | 7.40% | |||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | $ 15,000,000 | 15,000,000 | ||
Term Loan D - 8.8% interest | |||||
Debt Instrument | |||||
Long-term debt | $ 0 | $ 0 | 663,000 | ||
Amortization of deferred debt issuance costs | $ 142,000 | $ 725,000 | |||
Debt instrument, interest rate terms | a) the greater of 1.00% or the three year treasury rate in effect at the time of funding, plus (b) an applicable margin between 4.95% and 5.90% per annum. | ||||
Debt instrument, interest rate, stated percentage | 8.80% | 8.80% | |||
Line of credit facility, maximum borrowing capacity | $ 663,455 | $ 663,455 | 663,455 | ||
Term Loan E [Member] | |||||
Debt Instrument | |||||
Debt instrument, interest rate, stated percentage | 8.80% | 8.80% | |||
Line of credit facility, maximum borrowing capacity | $ 7,098,450 | $ 7,098,450 | 7,098,450 | ||
Term Loans [Member] | |||||
Debt Instrument | |||||
Amortization of deferred debt issuance costs | $ 450,000 | $ 1,266,000 | |||
Debt instrument, interest rate, stated percentage | 8.40% | 8.40% | |||
Debt Instrument, Face Amount | $ 50,000,000 | $ 50,000,000 | 0 | ||
Term Loan E - $7.1 million at 8.8% interest | |||||
Debt Instrument | |||||
Long-term debt | 0 | 0 | 7,098,000 | ||
Term Loan - $50 million at 8.4% interest | |||||
Debt Instrument | |||||
Long-term debt | 50,000,000 | 50,000,000 | 0 | ||
Total debt, net | |||||
Debt Instrument | |||||
Long-term debt | 48,720,000 | 48,720,000 | 36,042,000 | ||
Long-term debt, current maturities | 0 | 0 | 0 | ||
Long-term debt, excluding current maturities | $ 48,720,000 | $ 48,720,000 | $ 36,042,000 | ||
Tranche 1 Loan [Member] | |||||
Debt Instrument | |||||
Debt instrument, interest only period end | Feb. 28, 2021 | ||||
Term Loans, Debt Facility, Maximum Borrowing Capacity | $ 50,000,000 | ||||
Tranche 2 Loan [Member] | |||||
Debt Instrument | |||||
Debt instrument, interest only period end | Feb. 28, 2022 | ||||
Term Loans, Debt Facility, Maximum Borrowing Capacity | $ 15,000,000 |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Schedule of future minimum lease payments | |
Remaining in 2019 | $ 504 |
2019 | 1,997 |
2020 | 2,015 |
2021 | 2,077 |
2022 | 1,939 |
Thereafter | 2,084 |
Total future minimum payments | 10,616 |
Imputed interest, operating leases | (2,717) |
Operating Lease, Liability | $ 7,899 |
Leases - Additional information
Leases - Additional information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||||||
Rent and operating expenses | $ 474,000 | $ 485,000 | $ 1,483,000 | $ 1,355,000 | ||
Operating Lease, Right Of Use Asset, Noncurrent | 4,766,000 | 4,766,000 | $ 5,097,000 | $ 0 | ||
Operating Lease, Liability, Current | 1,828,000 | 1,828,000 | 1,780,000 | 0 | ||
Operating Lease, Liability, Noncurrent | 6,071,000 | 6,071,000 | $ 6,832,000 | 0 | ||
Deferred rent | 520,000 | |||||
Deferred rent | $ 0 | $ 0 | $ 2,996,000 | |||
Operating Lease, Weighted Average Discount Rate, Percent | 11.20% | 11.20% | ||||
Operating Lease, Weighted Average Remaining Lease Term | 5 years 2 months 19 days | 5 years 2 months 19 days |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair value hierarchy (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair value, assets measured on a recurring basis | ||
Marketable securities | $ 8,879 | $ 8,882 |
Assets, Fair Value Disclosure | 13,194 | 17,835 |
Level 1 | ||
Fair value, assets measured on a recurring basis | ||
Assets, Fair Value Disclosure | 2,719 | 8,953 |
Level 2 | ||
Fair value, assets measured on a recurring basis | ||
Assets, Fair Value Disclosure | 10,475 | 8,882 |
Level 3 | ||
Fair value, assets measured on a recurring basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
US Government Corporations and Agencies Securities [Member] | ||
Fair value, assets measured on a recurring basis | ||
Marketable securities | 1,000 | 2,493 |
US Government Corporations and Agencies Securities [Member] | Level 1 | ||
Fair value, assets measured on a recurring basis | ||
Marketable securities | 0 | 0 |
US Government Corporations and Agencies Securities [Member] | Level 2 | ||
Fair value, assets measured on a recurring basis | ||
Marketable securities | 1,000 | 2,493 |
US Government Corporations and Agencies Securities [Member] | Level 3 | ||
Fair value, assets measured on a recurring basis | ||
Marketable securities | 0 | 0 |
Corporate notes and bonds | ||
Fair value, assets measured on a recurring basis | ||
Marketable securities | 7,081 | 6,389 |
Corporate notes and bonds | Level 1 | ||
Fair value, assets measured on a recurring basis | ||
Marketable securities | 0 | 0 |
Corporate notes and bonds | Level 2 | ||
Fair value, assets measured on a recurring basis | ||
Marketable securities | 7,081 | 6,389 |
Corporate notes and bonds | Level 3 | ||
Fair value, assets measured on a recurring basis | ||
Marketable securities | 0 | 0 |
Commercial Paper [Member] | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 1,596 | |
Marketable securities | 798 | |
Commercial Paper [Member] | Level 1 | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 0 | |
Marketable securities | 0 | |
Commercial Paper [Member] | Level 2 | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 1,596 | |
Marketable securities | 798 | |
Commercial Paper [Member] | Level 3 | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 0 | |
Marketable securities | 0 | |
Money Market Funds [Member] | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 2,719 | 8,953 |
Money Market Funds [Member] | Level 1 | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 2,719 | 8,953 |
Money Market Funds [Member] | Level 2 | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | 0 | 0 |
Money Market Funds [Member] | Level 3 | ||
Fair value, assets measured on a recurring basis | ||
Cash equivalents | $ 0 | $ 0 |
Marketable Securities - Gross u
Marketable Securities - Gross unrealized gains/losses (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Marketable securities | ||
Estimated fair value | $ 8,879 | $ 8,882 |
Due in one year or less | ||
Marketable securities | ||
Amortized cost | (8,876) | (8,886) |
Gross unrealized gains | 3 | 0 |
Gross unrealized losses | 0 | (4) |
Estimated fair value | 8,879 | 8,882 |
Commercial Paper [Member] | ||
Marketable securities | ||
Estimated fair value | 798 | |
Commercial Paper [Member] | Due in one year or less | ||
Marketable securities | ||
Amortized cost | (798) | (2,493) |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 798 | 2,493 |
US Government Corporations and Agencies Securities [Member] | ||
Marketable securities | ||
Estimated fair value | 1,000 | 2,493 |
US Government Corporations and Agencies Securities [Member] | Due in one year or less | ||
Marketable securities | ||
Amortized cost | (1,000) | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Estimated fair value | 1,000 | |
Corporate notes and bonds | ||
Marketable securities | ||
Estimated fair value | 7,081 | 6,389 |
Corporate notes and bonds | Due in one year or less | ||
Marketable securities | ||
Amortized cost | (7,078) | (6,393) |
Gross unrealized gains | 3 | 0 |
Gross unrealized losses | 0 | (4) |
Estimated fair value | $ 7,081 | $ 6,389 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 33 | $ (5) | $ (28) | $ (59) |