Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 09, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PSNL | |
Entity Registrant Name | Personalis, Inc. | |
Entity Central Index Key | 0001527753 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 31,128,674 | |
Entity Current Reporting Status | No | |
Entity Shell Company | false | |
Entity File Number | 001-38943 | |
Entity Tax Identification Number | 275411038 | |
Entity Address, Address Line One | 1330 O’Brien Drive | |
Entity Address, City or Town | Menlo Park | |
Entity Address, State or Province | California | |
Entity Address, Postal Zip Code | 94025 | |
City Area Code | 650 | |
Local Phone Number | 752-1300 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 163,269 | $ 19,744 |
Accounts receivable | 7,465 | 4,457 |
Inventory and other deferred costs | 3,538 | 3,432 |
Prepaid expenses and other current assets | 1,897 | 1,926 |
Total current assets | 176,169 | 29,559 |
Property and equipment, net | 13,409 | 11,452 |
Operating lease right-of-use assets | 1,320 | |
Other long-term assets | 947 | 659 |
Total assets | 191,845 | 41,670 |
Current liabilities | ||
Accounts payable | 8,781 | 6,565 |
Accrued and other current liabilities | 4,676 | 3,392 |
Contract liabilities | 41,866 | 42,897 |
Short-term debt | 1,020 | 4,996 |
Total current liabilities | 56,343 | 57,850 |
Redeemable convertible preferred stock warrant liability | 683 | |
Long-term debt | 18,016 | |
Other long-term liabilities | 468 | 121 |
Total liabilities | 74,827 | 58,654 |
Commitments and Contingencies (Note 12) | ||
Redeemable convertible preferred stock | 0 | 89,404 |
Stockholders’ equity (deficit) | ||
Common stock, $0.0001 par value — 200,000,000 shares authorized and 31,121,605 shares issued and outstanding as of June 30, 2019; 102,700,000 shares authorized and 3,085,307 shares issued and outstanding as of December 31, 2018 | 3 | 1 |
Additional paid-in-capital | 244,089 | 9,131 |
Accumulated other comprehensive loss | (15) | (15) |
Accumulated deficit | (127,059) | (115,505) |
Total stockholders’ equity (deficit) | 117,018 | (106,388) |
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit) | $ 191,845 | $ 41,670 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 102,700,000 |
Common stock, shares, issued | 31,121,605 | 3,085,307 |
Common stock, shares, outstanding | 31,121,605 | 3,085,307 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 15,825 | $ 8,799 | $ 29,900 | $ 12,963 |
Costs and expenses | ||||
Costs of revenues | 9,923 | 6,403 | 20,014 | 10,468 |
Research and development | 4,497 | 3,500 | 9,742 | 6,449 |
Selling, general and administrative | 5,466 | 2,604 | 9,636 | 4,917 |
Total costs and expenses | 19,886 | 12,507 | 39,392 | 21,834 |
Loss from operations | (4,061) | (3,708) | (9,492) | (8,871) |
Interest income | 200 | 71 | 284 | 132 |
Interest expense | (745) | (573) | (929) | (1,195) |
Loss on debt extinguishment | (3,322) | (3,322) | ||
Other (expense) income, net | (1,261) | 218 | (1,413) | 569 |
Loss before income taxes | (5,867) | (7,314) | (11,550) | (12,687) |
Provision for income taxes | (2) | (1) | (4) | (3) |
Net loss | $ (5,869) | $ (7,315) | $ (11,554) | $ (12,690) |
Net loss per share, basic and diluted | $ (0.89) | $ (2.39) | $ (2.38) | $ (4.15) |
Weighted-average shares outstanding, basic and diluted | 6,597,007 | 3,063,126 | 4,853,325 | 3,061,069 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (5,869) | $ (7,315) | $ (11,554) | $ (12,690) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment | (15) | (5) | (2) | |
Comprehensive loss | $ (5,884) | $ (7,320) | $ (11,554) | $ (12,692) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS EQUITY (DEFICIT) (unaudited) - USD ($) $ in Thousands | Total | Common Stock and Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Redeemable Convertible Preferred Stock |
Total redeemable convertible preferred stock, beginning balances at Dec. 31, 2017 | $ 75,995 | ||||
Conversion of redeemable convertible preferred stock to common stock | $ 0 | $ 0 | |||
Total redeemable convertible preferred stock, ending balances at Jun. 30, 2018 | 75,995 | ||||
Beginning balances at Dec. 31, 2017 | 3,026 | $ (95,619) | $ (10) | ||
Equity component credited to additional paid-in capital upon Convertible Notes modification on May 31, 2018 | 3,890 | ||||
Proceeds from initial public offering, net of expenses | 0 | ||||
Conversion of redeemable convertible preferred stock warrants to common stock warrants | 0 | ||||
Proceeds from exercise of common stock warrant | 0 | ||||
Issuance of common stock warrants | 0 | ||||
Proceeds from exercise of stock options | 24 | ||||
Stock-based compensation | 583 | ||||
Net loss | (12,690) | (12,690) | |||
Foreign currency translation adjustment | (2) | (2) | |||
Ending balances at Jun. 30, 2018 | (100,798) | 7,523 | (108,309) | (12) | |
Total redeemable convertible preferred stock, beginning balances at Mar. 31, 2018 | 75,995 | ||||
Conversion of redeemable convertible preferred stock to common stock | 0 | 0 | |||
Total redeemable convertible preferred stock, ending balances at Jun. 30, 2018 | 75,995 | ||||
Beginning balances at Mar. 31, 2018 | 3,219 | (100,994) | (7) | ||
Equity component credited to additional paid-in capital upon Convertible Notes modification on May 31, 2018 | 3,890 | ||||
Proceeds from initial public offering, net of expenses | 0 | ||||
Conversion of redeemable convertible preferred stock warrants to common stock warrants | 0 | ||||
Proceeds from exercise of common stock warrant | 0 | ||||
Issuance of common stock warrants | 0 | ||||
Proceeds from exercise of stock options | 0 | ||||
Stock-based compensation | 414 | ||||
Net loss | (7,315) | (7,315) | |||
Foreign currency translation adjustment | (5) | (5) | |||
Ending balances at Jun. 30, 2018 | (100,798) | 7,523 | (108,309) | (12) | |
Total redeemable convertible preferred stock, beginning balances at Dec. 31, 2018 | 89,404 | ||||
Conversion of redeemable convertible preferred stock to common stock | 89,404 | (89,404) | |||
Total redeemable convertible preferred stock, ending balances at Jun. 30, 2019 | 0 | ||||
Beginning balances at Dec. 31, 2018 | (106,388) | 9,132 | (115,505) | (15) | |
Equity component credited to additional paid-in capital upon Convertible Notes modification on May 31, 2018 | 0 | ||||
Proceeds from initial public offering, net of expenses | 140,024 | ||||
Conversion of redeemable convertible preferred stock warrants to common stock warrants | 2,086 | ||||
Proceeds from exercise of common stock warrant | 8 | ||||
Issuance of common stock warrants | 572 | ||||
Proceeds from exercise of stock options | 611 | ||||
Stock-based compensation | 2,255 | ||||
Net loss | (11,554) | (11,554) | |||
Foreign currency translation adjustment | 0 | ||||
Ending balances at Jun. 30, 2019 | 117,018 | 244,092 | (127,059) | (15) | |
Total redeemable convertible preferred stock, beginning balances at Mar. 31, 2019 | 89,404 | ||||
Conversion of redeemable convertible preferred stock to common stock | 89,404 | $ (89,404) | |||
Total redeemable convertible preferred stock, ending balances at Jun. 30, 2019 | 0 | ||||
Beginning balances at Mar. 31, 2019 | 10,667 | (121,190) | 0 | ||
Equity component credited to additional paid-in capital upon Convertible Notes modification on May 31, 2018 | 0 | ||||
Proceeds from initial public offering, net of expenses | 140,024 | ||||
Conversion of redeemable convertible preferred stock warrants to common stock warrants | 2,086 | ||||
Proceeds from exercise of common stock warrant | 8 | ||||
Issuance of common stock warrants | 0 | ||||
Proceeds from exercise of stock options | 257 | ||||
Stock-based compensation | 1,646 | ||||
Net loss | (5,869) | (5,869) | |||
Foreign currency translation adjustment | (15) | (15) | |||
Ending balances at Jun. 30, 2019 | $ 117,018 | $ 244,092 | $ (127,059) | $ (15) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (11,554) | $ (12,690) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ||
Depreciation and amortization | 2,192 | 1,200 |
Noncash lease expense | 429 | |
Stock-based compensation expense | 2,255 | 583 |
Loss on debt extinguishment | 3,322 | |
Change in fair value of convertible preferred stock warrant liability | 1,403 | |
Change in fair value of compound derivative instrument | (574) | |
Accretion of noncash interest and debt reduction | 103 | 900 |
Other | (2) | 3 |
Changes in operating assets and liabilities | ||
Accounts receivable | (3,009) | (2,240) |
Inventories and other deferred costs | (106) | (1,675) |
Prepaid expenses and other current assets | (257) | (250) |
Accounts payable | (163) | 634 |
Accrued and other current liabilities | (567) | (49) |
Contract liabilities | (1,030) | 13,679 |
Other long-term liabilities | (530) | (43) |
Net cash (used in) provided by operating activities | (10,836) | 2,800 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2,801) | (5,237) |
Net cash used in investing activities | (2,801) | (5,237) |
Cash flows from financing activities: | ||
Proceeds from initial public offering, net of underwriting discounts and commissions | 144,025 | |
Payment of costs related to initial public offering | (1,991) | |
Proceeds from borrowings | 20,000 | |
Payments of borrowing costs | (490) | |
Repayments under borrowing arrangements | (5,000) | (427) |
Proceeds from exercise of common stock warrants | 8 | |
Proceeds from exercise of stock options | 611 | 24 |
Net cash provided by (used in) financing activities | 157,163 | (403) |
Effect of exchange rates on cash flows and cash equivalents | (1) | 1 |
Net increase (decrease) in cash and cash equivalents | 143,525 | (2,839) |
Cash and cash equivalents, beginning of period | 19,744 | 22,617 |
Cash and cash equivalents, end of period | $ 163,269 | $ 19,778 |
Company and Nature of Business
Company and Nature of Business | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Company and Nature of Business | Note 1. Company and Nature of Business Description of Business Personalis, Inc. (the “Company”) was incorporated in Delaware on February 21, 2011, and began operations in September 2011. The Company formed a wholly owned subsidiary, Personalis (UK) Ltd., in August 2013. The Company is a growing cancer genomics company transforming the development of next-generation therapies by providing more comprehensive molecular data about each patient’s cancer and immune response. The Company operates and manages its business as one reportable operating segment, which is the sale of sequencing and data analysis services. Significant Risks and Uncertainties The Company has incurred net operating losses and negative cash flows from operations every year. As of June 30, 2019, the Company had an accumulated deficit of $127.1 million. In June 2019, the Company completed an initial public offering (“IPO”) of its common stock and raised proceeds of $140.0 million, after deducting underwriting discounts, commissions and offering expenses. Management believes that these proceeds combined with existing sources of liquidity will be sufficient to fund operations for at least one year from the issuance of these unaudited condensed consolidated financial statements. However, there can be no assurance that additional financing will not be required or that the Company will be successful in raising additional capital on terms which are acceptable to the Company. If the Company requires but is unable to obtain additional funding, the Company could be required to modify, delay, or abandon some of its planned future expansion or expenditures or reduce some of its ongoing operating costs, which could harm its business, operating results, financial condition, and ability to achieve its intended business objectives. Approval of Amended and Restated Certificate of Incorporation An amended and restated certificate of incorporation, which authorized 200,000,000 shares of common stock and 10,000,000 shares of preferred stock became effective in June 2019 in connection with the closing of the Company’s IPO. As of June 30, 2019 no shares of preferred stock are outstanding. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s final prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on June 20, 2019 (the “Prospectus”). The condensed consolidated balance sheet as of December 31, 2018 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by U.S. GAAP. The condensed consolidated financial statements include the accounts of Personalis, Inc. and its wholly owned subsidiary, Personalis (UK) Ltd. All intercompany balances and transactions have been eliminated. The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year ending December 31, 2019. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the condensed consolidated financial statements and the reported amounts of revenues and expense during the reporting period. The estimates include, but are not limited to, useful lives assigned to long-lived assets, the valuation of common and convertible redeemable preferred stock and related warrants and options, the valuation of the compound derivative instrument, the valuation of stock-based awards, and provisions for income taxes and contingencies. Actual results could differ from these estimates, and such differences could be material to the Company’s condensed consolidated financial position and results of operations. Reverse Stock Split On June 4, 2019, the Company filed an amendment to the Company’s amended and restated certificate of incorporation to effect a reverse split of shares of the Company’s common stock and redeemable convertible preferred stock on a four-for-one basis (the “Reverse Stock Split”). The par value of the common stock and redeemable convertible preferred stock was not adjusted as a result of the Reverse Stock Split. All references to common stock, options to purchase common stock, share data, per share data, redeemable convertible preferred stock and related information contained in these consolidated financial statements have been retrospectively adjusted to reflect the effect of the Reverse Stock Split for all periods presented. Initial Public Offering On June 20, 2019, the Company completed an IPO in which it issued and sold 9,109,725 shares of its common stock at a public offering price of $17.00 per share. The Company received net proceeds of $140.0 million after deducting underwriting discounts, commissions and offering expenses. A warrant to purchase 188,643 shares of our common stock was exercised prior to completion of the IPO. In addition, in connection with the IPO, all shares of the Company’s then-outstanding redeemable convertible preferred stock were automatically converted into 18,474,703 shares of the Company’s common stock, and all then-outstanding warrants to purchase the Company’s convertible preferred stock were automatically converted into warrants to purchase 84,585 shares of the Company’s common stock. Deferred Offering Costs Deferred offering costs consist of fees and expenses incurred in connection with the anticipated sale of the Company’s common stock in the IPO, including legal, accounting, printing and other IPO-related costs. In June 2019, upon completion of the IPO, the Company reclassified deferred offering costs of $4.0 million into additional paid-in capital as a reduction of the net proceeds received from the IPO. During the six months ended June 30, 2019, $2.0 million of the deferred offering costs were paid. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that subject the Company to concentration of credit risk consist of cash and cash equivalents. The Company’s cash and cash equivalents are deposited with a high-quality financial institution. Deposits at this institution may, at times, exceed federally insured limits. Management believes that this financial institution is financially sound and, accordingly, that minimal credit risk exists. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company purchases various reagents and sequencing materials from sole source suppliers. Any extended interruption in the supply of these materials could result in the Company’s inability to secure sufficient materials to conduct business and meet customer demand. The Company routinely assesses the creditworthiness of its customers. The Company has not experienced any material losses related to receivables from individual customers, or groups of customers. The Company does not require collateral. Due to these factors, no additional credit risk is believed by management to be probable in the Company’s accounts receivable. Significant customers are those which represent more than 10% of the Company’s total revenue or accounts receivable balance at each respective condensed consolidated balance sheet date. For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable are as follows: Revenue (unaudited) Revenue (unaudited) Accounts Receivable Three Months Ended June 30 Six Months Ended June 30 June 30, 2019 December 31, 2018 2019 2018 2019 2018 (unaudited) VA MVP 54 % 45 % 56 % 46 % 30 % * Merck & Co., Inc. * 16 % * 14 % * 10 % Pfizer Inc. 23 % * 20 % * 38 % 33 % Customer D 12 % * * * 18 % * Customer E * 10 % * * * * Customer F * * * * * 17 % Customer G * * * * * 10 % * Less than 10% of revenue or accounts receivable Revenue Recognition The Company applies the revenue recognition guidance in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”). Revenue Recognition The revenue guidance provides a five-step framework through which revenue is recognized when control of promised goods or services is transferred to a customer at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for arrangements that the Company concludes are within the scope of the new revenue recognition standard, management performs the following five steps: (i) identifies the contract(s) with a customer; (ii) identifies the performance obligations in the contract(s); (iii) determines the transaction price, including whether there are any constraints on variable consideration; (iv) allocates the transaction price to the performance obligations; and (v) recognizes revenue when (or as) the Company satisfies a performance obligation. At contract inception, once a contract is determined to be within the scope of the new revenue standard, the Company assesses whether individual goods or services promised within each contract are distinct and, therefore, represent separate performance obligation. The Company derives revenues from sequencing and data analysis services to support the development of personalized cancer vaccines and other next-generation cancer immunotherapies. The Company’s contracts are in the form of a combination of signed agreements, statements of work, and/or purchase orders. Under ASC Topic 606, the Company accounts for a contract with a customer when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and it is probable that the Company will collect substantially all of the consideration to which it will be entitled. The sequencing and data analysis services are the only distinct services that meet the definition of a performance obligation and are accounted for as one performance obligation under ASC Topic 606. The Company recognizes revenue from such services at the point in time when control of the test results is transferred to the customer. The Company has elected to exclude all sales and value added taxes from the measurement of the transaction price. Sequencing and data analysis services are based on a fixed price per test. Payment terms and conditions vary by contract and customer. The Company’s standard payment terms are less than 90 days from the invoice date. In instances where the timing of the Company’s revenue recognition differs from the timing of its invoicing, the Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised services to the customer will be one year or less. The Company assessed each of its revenue-generating arrangements in order to determine whether a significant financing component exists and concluded that a significant financing component does not exist in any of its arrangements. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s services and provides payment protection for the Company. Practical Expedients and Exemptions As a practical expedient, the Company recognizes the incremental costs of obtaining contracts, such as sales commissions, as an expense when incurred since the amortization period of the asset the Company otherwise would have recognized is one year or less. Sales commissions are recorded within selling, general, and administrative expenses in the consolidated statements of operations. Cost of Revenues The Company’s costs of revenues primarily consist of production materials, personnel costs (e.g., salaries, bonuses, benefit, and stock-based compensation), cost of expensed equipment, consumables and laboratory supplies, information technology (“IT”) and facility costs, and depreciation and service maintenance contracts on capitalized equipment. Net Loss per Share Attributable to Common Stockholders Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, the redeemable convertible preferred stock, convertible preferred stock warrants, common stock warrants, common stock subject to repurchase, and stock options are considered to be potentially dilutive securities. Basic and diluted net loss attributable to common stockholders per share is presented in conformity with the two-class method required for participating securities as the redeemable convertible preferred stock is considered a participating security. The Company’s participating securities do not have a contractual obligation to share in the Company’s losses. As such, the net loss is attributed entirely to common stockholders. Because the Company has reported a net loss for the reporting periods presented, the diluted net loss per common share is the same as basic net loss per common share for those periods. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In May 2014, the FASB issued Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). Subsequently, the FASB also issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), which adjusted the effective date of ASU No. 2014-09; ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which amends the principal-versus-agent implementation guidance and illustrations in ASU No. 2014-09; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies identifying performance obligation and licensing implementation guidance and illustrations in ASU No. 2014-09; and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which addresses implementation issues and is intended to reduce the cost and complexity of applying the new revenue standard in ASU No. 2014-09 (collectively, the “Revenue ASUs”). The Revenue ASUs provide an accounting standard for a single comprehensive model for use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The accounting standard is effective for interim and annual periods beginning after December 15, 2017. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (the full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company performed a detailed review of its revenue agreements and assessed the differences in accounting for such contracts under this guidance compared with previous revenue accounting standards. On January 1, 2017, the Company early adopted ASU No. 2014-09 using the full retrospective method. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Results for all periods presented are under ASC Topic 606. In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting (“ASU No. 2018-07”). ASU No. 2018-07 simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. For all entities, the amendments are effective for annual periods beginning after December 15, 2019, and interim periods within annual periods beginning after December 15, 2020. Early adoption is permitted for any entity in any interim or annual period for which consolidated financial statements have not been issued or made available for issuance, but not before an entity adopts ASC Topic 606. The Company early adopted this guidance on January 1, 2017, which did not result in a material impact on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU No. 2016-02”). In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, which provides clarification to ASU 2016-02. These ASUs (collectively, the “new lease standard”) require an entity to recognize a lease liability and a right-of-use (“ROU”) asset on the balance sheet for leases with lease terms of more than twelve months. Lessor accounting is largely unchanged, while lessees will no longer be provided with a source of off-balance sheet financing. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842)—Targeted Improvements, which allows entities to elect a modified retrospective transition method where entities may continue to apply the existing lease guidance during the comparative periods and apply the new lease requirements through a cumulative effect adjustment in the period of adoptions rather than in the earliest period presented. On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842), and its associated amendments using the modified retrospective transition method by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. There was no cumulative-effect adjustment recorded to retained earnings upon adoption. Under the standard, a lessee is required to recognize a lease liability and ROU asset for all leases. The new guidance also modified the classification criteria and requires additional disclosures to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. Consistent with current guidance, a lessee’s recognition, measurement, and presentation of expenses and cash flows arising from a lease continues to depend primarily on its classification. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward its historical lease classification, its assessment on whether a contract was or contains a lease, and its initial direct costs for any leases that existed prior to January 1, 2019. In addition, the Company elected the short-term lease exception as a practical expedient. At the date of adoption, the Company derecognized a deferred rent liability in the amount of $0.3 million, and recognized a ROU asset and respective lease liability in the amount of $1.7 million and $2.0 million, respectively. As of June 30, 2019, lease liabilities in the amount of $1.0 million and $0.5 million are included in “Accrued and other current liabilities” and “Other long-term liabilities,” respectively. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. The guidance is effective for the Company beginning in the first quarter of 2020. Early adoption beginning January 1, 2019 is permitted. The Company is currently evaluating the impact of the new guidance on its condensed consolidated financial statements and related disclosures. JOBS Act Accounting Election The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has irrevocably elected not to avail itself of this exemption from new or revised accounting standards, and therefore, the Company will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | Note 3. Revenues The following table presents the Company’s revenues disaggregated by customer type (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 VA MVP $ 8,536 $ 3,976 $ 16,879 $ 5,952 All other customers 7,289 4,823 13,021 7,011 Total $ 15,825 $ 8,799 $ 29,900 $ 12,963 Countries outside of the United States, based on the billing addresses of customers, represented less than 1% and 4% of the Company’s revenues for the three months ended June 30, 2019 and 2018, respectively, and less than 2% and 4% for the six months ended June 30, 2019 and 2018, respectively. Contract Assets and Liabilities The Company had no contract assets as of June 30, 2019 and December 31, 2018, respectively. The Company’s contract liabilities consist of customer deposits in excess of revenues recognized and are presented as current liabilities in the condensed consolidated balance sheets. The balance of contract liabilities was $41.9 million and $42.9 million as of June 30, 2019 and December 31, 2018, respectively. Contract liabilities of $8.4 million and $0.5 million were recognized in revenues during the three months ended June 30, 2019 and 2018, respectively. Contract liabilities of $16.1 million and $2.0 million were recognized in revenues during the six months ended June 30, 2019 and 2018, respectively. As of December 31, 2018, the remaining performance obligations under contracts for which revenues are expected to be recognized over a period of more than one year is $73.0 million. Management expects to recognize such revenues over a three-year period. As of June 30, 2019, the remaining performance obligations under contracts for which revenues are expected to be recognized over a period of more than one year is $57.4 million. Management expects to recognize such revenues over a two-year period. The Company does not disclose remaining performance obligations under its other contracts since contract terms are less than one year and are recognized over a term of less than 12 months. |
Balance Sheet Details
Balance Sheet Details | 6 Months Ended |
Jun. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Note 4. Balance Sheet Details Inventory and other deferred costs consist of the following (in thousands): June 30, December 31, 2019 2018 Raw materials $ 1,625 $ 2,134 Other deferred costs 1,913 1,298 Total inventory and other deferred costs $ 3,538 $ 3,432 Property and equipment. Depreciation and amortization expense for the three months ended June 30, 2019 and 2018 was $1.1 million and $0.7 million, respectively, and for the six months ended June 30, 2019 and 2018 was $2.2 million and $1.2 million, respectively. Accrued and other current liabilities consist of the following (in thousands): June 30, December 31, 2019 2018 Accrued compensation $ 2,457 $ 2,843 Operating lease right-of-use liabilities 1,030 — Accrued taxes 354 181 Accrued interest 280 207 Deferred rent — 99 Accrued liabilities 547 59 Deferred revenues 8 3 Total accrued and other current liabilities $ 4,676 $ 3,392 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 5. Fair Value Measurements Financial assets and liabilities are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The authoritative guidance establishes a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based upon whether such inputs are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions made by the reporting entity. The three-level hierarchy for the inputs to valuation techniques is briefly summarized as follows: Level 1 — Unadjusted quoted prices in active markets that are accessible to the reporting entity at the measurement date for identical assets and liabilities. Level 2 — Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: • Quoted prices for similar assets and liabilities in active markets • Quoted prices for identical or similar assets or liabilities in markets that are not active • Observable inputs other than quoted prices that are used in the valuation of the asset or liabilities (e.g., interest rate and yield curve quotes at commonly quoted intervals) • Inputs that are derived principally from or corroborated by observable market data by correlation or other means Level 3 — Unobservable inputs for the assets or liabilities (i.e., supported by little or no market activity). Level 3 inputs include management’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The following table represents the fair value hierarchy for the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands): As of June 30, 2019 Level 1 Level 2 Level 3 Total Assets Money market funds $ 160,352 $ — $ — $ 160,352 Total assets measured at fair value $ 160,352 $ — $ — $ 160,352 As of December 31, 2018 Level 1 Level 2 Level 3 Total Assets Money market funds $ 18,142 $ — $ — $ 18,142 Total assets measured at fair value $ 18,142 $ — $ — $ 18,142 Liabilities Convertible preferred stock warrants liability $ — $ — $ 683 $ 683 Total liabilities measured at fair value $ — $ — $ 683 $ 683 The Black-Scholes option-pricing model was used to estimate the fair value of the convertible preferred stock warrants at the date of issuance and at each subsequent consolidated balance sheet date. The fair value of the convertible preferred stock warrants was also estimated at the time of conversion to common stock warrants (see Note 10). Under this option-pricing model, convertible preferred stock warrants were valued by creating a series of call options with exercise prices based on the liquidation preferences and conversion terms of each equity class. The values of the redeemable convertible preferred stock and common stock are inferred by analyzing these options. The fair value of each convertible preferred stock warrant was estimated using the Black-Scholes option-pricing model with the assumptions described below. For the periods indicated the Company has limited historical volatility information available, and the expected volatility was based on actual volatility for comparable public companies projected over the expected terms of the warrants. The Company did not apply a forfeiture rate to the warrants as there is not enough historical information available to estimate such a rate. The risk-free interest rate was based on the U.S. Treasury yield curve over the expected term of the warrants. Six Months Ended Year Ended June 30, 2019 December 31, 2018 Expected term (in years) 5.01 - 5.26 5.17 - 7.00 Volatility 57.20% - 57.24% 55.56% - 56.42% Risk-free interest rate 1.75% 2.58% - 3.01% Dividend yield 0% 0% The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial instruments (in thousands): Warrant Liability Balance — December 31, 2018 $ 683 Change in fair value $ 1,403 Reclassification of warrant liability to additional paid in capital on conversion (2,086 ) Balance — June 30, 2019 $ — |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 6. Borrowings Amounts outstanding under the Company’s financing arrangements consisted of the following (in thousands): June 30, December 31, 2019 2018 Credit agreement Revolving Loan $ — $ 5,000 Growth Capital Loan 20,000 — Total principal payments due 20,000 5,000 Less reduction in carrying value (964 ) (4 ) Total amounts outstanding 19,036 4,996 Less: Current portion (1,020 ) (4,996 ) Long-Term portion $ 18,016 $ — The repayment schedule relating to the Company’s long-term debt as of June 30, 2019 is as follows (in thousands): June 30, 2019 2019 (remaining six months) $ — 2020 4,395 2021 6,463 2022 7,212 2023 1,930 Thereafter — Total $ 20,000 Term Loan In September 2014, the Company entered into a loan and security agreement with Silicon Valley Bank, to borrow up to $3.0 million under an equipment loan that will be secured with the equipment financed (the “Term Loan”). On October 3, 2014, the Company borrowed $2.4 million under the Term Loan. The Term Loan required 12 interest-only payments, followed by 36 equal monthly installments of principal, plus interest, which began on October 3, 2015. In connection with the Term Loan, the Company issued to the bank a warrant exercisable for ten years from the date of grant to purchase 22,489 shares of the Company’s Series B redeemable convertible preferred stock at an exercise price of $4.60 per share (see Note 10). The estimated fair value of the warrants upon draw down of $0.1 million was based on the Black-Scholes option-pricing model. The Company recorded the fair value of the warrant at issuance as a reduction in the debt-carrying value and as a warrant liability. The debt-carrying value reduction is being accreted using the effective interest method as additional interest expense over the contractual period of four years for the Term Loan. On September 30, 2018, the Term Loan was repaid in full. Revolving Loan In June 2017, the Company entered into a $10.0 million revolving loan and security agreement (the “Revolving Loan”) with TriplePoint Capital LLC (“TriplePoint”). Borrowings under the Revolving Loan bear an interest rate of prime, plus 6.75%. The Revolving Loan also has a 5.5% end of term loan payment on the highest outstanding principal amount. The Revolving Loan requires monthly interest-only payments until the maturity date. The Revolving Loan’s original maturity date was December 31, 2018, and in December 2018 the maturity date was further extended until March 22, 2019. Upon determining that the change in cash flows between the previous and current credit facility was not greater than 10%, the Company accounted for the transaction as a debt modification. As of December 31, 2018, the Company’s outstanding principal under the Revolving Loan was $5.0 million and $5.0 million was available to borrow. In connection with the Revolving Loan, the Company issued to TriplePoint a warrant to purchase up to 62,096 shares of the Company’s Series C redeemable convertible preferred stock at an exercise price of $8.052 per share (see Note 10). The estimated fair value of the warrant upon draw down of $0.1 million was based on the Black-Scholes option-pricing model. The Company recorded the fair value of the warrant at issuance as a reduction in the debt-carrying value and as a warrant liability. The debt-carrying value reduction is being accreted using the effective interest method as additional interest expense over the contractual period of 1.5 years for the Revolving Loan. The Revolving Loan had an effective interest rate of 19.22% per year. The Revolving Loan interest expense for the three and six months ended June 30, 2018 was $0.2 million and $0.4 million, respectively. Interest expense for the three and six months ended June 30, 2019 was not significant. The Company accrued $0.2 million as of December 31, 2018 related to accretion of final payment due at maturity per agreement using the effective interest rate method. On March 22, 2019, this Revolving Loan was repaid in full. Growth Capital Loan On March 22, 2019, the Company entered into a growth capital loan (the “Growth Capital Loan”) with TriplePoint to provide for a $20.0 million growth capital loan facility and as of June 30, 2019 had drawn down the full $20.0 million available under the facility. The Company used $5.3 million of the growth capital loan facility to repay, in its entirety, all amounts outstanding under the Revolving Loan. Borrowings under the Growth Capital Loan bear interest at a floating rate of prime rate plus 5.00% for borrowings up to $15.0 million and the prime rate plus 6.50% for borrowing greater than $15.0 million; provided, however, that in an event of default, as defined in the loan and security agreement, the interest rate applicable to borrowings under such agreement will be increased by 5.0%. Under the agreement, the Company is required to make monthly interest-only payments through April 1, 2020 and is required to make 36 equal monthly payments of principal, plus accrued interest, from April 1, 2020 through March 1, 2023, when all unpaid principal and interest becomes due and payable. The Company may voluntarily prepay all, but not part, of the outstanding principal at any time prior to the maturity date, subject to a prepayment fee of 1.00% of the outstanding balance, if prepaid in months one through 12 of the loan term. If prepaid after month 12 of the loan term of any growth capital loan, no additional prepayment premium shall be due. In addition to the final payment, the Company will pay an amount equal to 2.75% of each principal amount drawn under this growth capital loan facility. In connection with the growth capital loan facility, the Company issued a warrant to purchase 65,502 shares of common stock to TriplePoint at an exercise price of $9.16 per share. The Company recorded the issuance-date fair value of the warrant of $0.6 million and fees paid to TriplePoint of $0.3 million as a debt discount which is amortized over the term of the Growth Capital Loan using the effective interest rate method. Upon issuance, the Growth Capital loan had an effective interest rate of 15.23% per year. Convertible Notes On June 29, 2017, the Company entered into a convertible promissory note agreement with certain existing redeemable convertible preferred stockholders and third parties (collectively, the “Investors”) for the issuance of convertible promissory notes with a face value of $12.2 million (the “Convertible Notes”). Under the terms of the Convertible Notes agreement, the Convertible Notes bear interest of 8% per annum, with a maturity date of June 28, 2018. In the event that the Company issued and sold shares of its equity securities (the “Equity Securities”) to Investors on or before the maturity date in an equity financing with total proceeds to the Company of not less than $10 million (including the conversion of the Convertible Notes or other convertible securities issued for capital raising purposes) (a “Qualified Financing”), then the outstanding principal amount of the Convertible Notes and any unpaid accrued interest would have automatically converted in whole without any further action by the holder into such Equity Securities sold in the Qualified Financing at a conversion price equal to the price paid per share for Equity Securities by the Investors in the Qualified Financing multiplied by 0.8. If the Company consummated a change of control while the Convertible Notes remained outstanding, the Company would have repaid the holders in cash an amount equal to 150% of the outstanding principal amount of the Convertible Notes, plus any unpaid accrued interest on the original principal. The Convertible Notes had customary events of default. Certain conversion and redemption features of the Convertible Notes met the requirements for separate accounting and were accounted for as a single, compound derivative instrument. The compound derivative instrument was recorded at fair value at inception and was subject to remeasurement to fair value at each consolidated balance sheet date, with any changes in fair value recognized in the consolidated statements of operations as other income (expense). The estimated fair value of the compound derivative instrument was $0.5 million at issuance and was recorded as a reduction in the carrying value of the Convertible Notes and as a single compound derivative liability. The Convertible Notes carrying value reduction was accreted using the effective interest method as interest expense over the Convertible Notes contractual period of one year. The Convertible Notes had an effective interest rate of 12.69% per year. The compound derivative instrument fair value was $0 as of December 2018 and June 30, 2019. On May 31, 2018, the original maturity date for the Convertible Notes was extended to June 28, 2019 (previously June 28, 2018). The maturity date extension was deemed substantial and was accounted for as a debt extinguishment under ASC 470, Debt On August 20, 2018, the maturity date for the Convertible Notes was changed to September 20, 2018 (previously June 28, 2019). The term change was deemed substantial and was accounted for as a debt extinguishment under ASC 470. In connection with the debt extinguishment on August 20, 2018, the fair value of the Convertible Notes was allocated between the new carrying amount of the Convertible Notes and accrued interest of $13.4 million, and an equity component of $0.8 million, which resulted in an additional credit to additional paid-in capital. A $0.8 million loss on debt extinguishment was also recorded in the consolidated statements of operations. The new carrying value of Convertible Notes was accreted using the effective interest method as interest expense over the new contractual period of one month. On September 20, 2018, upon the maturity of the Convertible Notes, the carrying amount, including accrued interest of $13.4 million was converted into 1,667,997 shares of the Company’s Series C redeemable convertible preferred stock at a conversion price equal to $8.052 per share. No gain or loss was recorded on the conversion. The interest expense on the Convertible Notes for the three and six months ended June 30, 2018 was $0.3 million and $0.7 million, respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 7. Leases Operating Lease Obligations In February 2015, the Company entered into a noncancelable operating lease for approximately 31,280 square feet of space used for its current laboratory and office space. The lease expires on November 30, 2020 and includes an option to extend the term for a period of three years immediately following the expiration of the term with rent payments equal to then current fair market rental for the space. The Company recognizes rent expense on a straight-line basis over the noncancelable lease term. The Company’s rent expense was $0.3 million and $0.5 million for the three and six months ended June 30, 2018, respectively. The Company adopted ASC 842 as of January 1, 2019. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date if the rate implicit in the lease is not readily determinable. At the date of adoption of ASC 842, the Company determined the amounts of lease liability using a discount rate of 8%, which represents the Company’s incremental borrowing rate. The Company determines its incremental borrowing rate for lease liability using its current borrowing rate, adjusted for various factors including level of collateralization and term. The optional renewal period was not recognized as part of the right-of-use asset or lease liability. Operating lease cost for the three and six month periods ended June 30, 2019 was $0.3 million and $0.5 million, respectively. Cash paid for operating lease liabilities, included in cash flow from operating activities in the Condensed Consolidated Statement of Cash Flows was $0.5 million for the six month period ended June 30, 2019. As of June 30, 2019, the remaining lease term for the lease is 1.4 years. Future minimum lease payments at December 31, 2018 under this noncancelable operating lease were as follows (in thousands): Amount 2019 $ 1,091 2020 1,030 Total future minimum lease payments $ 2,121 Future minimum lease payments at June 30, 2019 under this noncancelable operating lease were as follows (in thousands): Amount 2019 (remaining six months) $ 552 2020 1,030 Total future minimum lease payments 1,582 Less: Imputed interest (84 ) Present value of future minimum lease payments 1,498 Less: Current portion of operating lease liability (1,030 ) Operating lease liabilities - noncurrent $ 468 |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 6 Months Ended |
Jun. 30, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Convertible Preferred Stock | Note 8. Redeemable Convertible Preferred Stock Series A redeemable convertible preferred stock, Series B redeemable convertible preferred stock and Series C redeemable convertible preferred stock (collectively the “Redeemable Convertible Preferred Stock”) outstanding consisted of the following as of December 31, 2018 and as of immediately prior to the automatic conversion of the Redeemable Convertible Preferred Stock into common stock: December 31, 2018 Shares Authorized Shares Issued and Outstanding Aggregate Liquidation Preference Net Carrying Value (in thousands) Series A 31,250,000 7,812,497 $ 20,500 $ 20,261 Series B 19,288,150 4,799,548 22,078 22,047 Series C 24,700,000 5,862,697 47,206 47,096 Total redeemable convertible preferred stock 75,238,150 18,474,742 $ 89,784 $ 89,404 Immediately prior to the closing of the Company’s IPO, all shares of the Company’s then-outstanding Redeemable Convertible Preferred Stock, as shown in the table above, automatically converted on a one-for-one basis into an aggregate of 18,474,703 shares of common stock. The Reverse Stock Split was effected on a holder-by-holder basis with no fractional shares issued, which resulted in 39 fewer shares of common stock issued as compared to the amounts shown in the above table. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 9. Stock-Based Compensation 2011 Equity Incentive Plan and 2019 Equity Incentive Plan In 2011, the Company established its 2011 Equity Incentive Plan (the “2011 Plan”) that provided for the granting of stock options to employees and nonemployees of the Company. Under the 2011 Plan, the Company had the ability to issue incentive stock options (“ISOs”), nonstatutory stock options (“NSOs”), stock appreciation rights, restricted stock awards, and restricted stock unit awards. Options under the 2011 Plan could be granted for periods of up to 10 years. The ISOs could be granted at a price per share not less than the fair value at the date of grant. The exercise price of an ISO granted to a 10% stockholder was not less than 110% of the estimated fair value of the shares on the date of grant, as determined by the board of directors (the “Board”). Options granted to new hires generally vested over a four-year period, with 25% vesting at the end of one year and the remaining vesting monthly thereafter; options granted as merit awards generally vested monthly over a four-year period. For stock option grants issued prior to December 31, 2015, the Company allowed employees to exercise options granted under the 2011 Plan prior to vesting (early exercise of stock options). The unvested shares are subject to the Company’s repurchase rights at the original purchase price. Initially, the proceeds were recorded as an accrued liability from the early exercise of stock options and reclassified to common stock as the Company’s repurchase rights lapse. There were 262 and 548 unvested shares subject to the Company’s repurchase rights as of December 31, 2018 and June 30, 2019, respectively. The Company’s Board adopted and the Company’s stockholders approved the Company’s 2019 Equity Incentive Plan (the “2019 Plan”) in May 2019 and June 2019, respectively. The 2019 Plan became effective in June 2019 in connection with the Company’s IPO, and no further grants will be made under the 2011 Plan. Shares reserved and remaining available for issuance under the 2011 Plan were added to the 2019 Plan reserve upon its effectiveness. No stock awards have yet been granted under the 2019 Plan as of June 30, 2019. The 2019 Plan provides for the grant of ISOs, NSOs, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance-based stock awards, and other forms of equity compensation. Additionally, the 2019 Plan provides for the grant of performance cash awards. ISOs may be granted only to the Company’s employees and to any of the Company’s parent or subsidiary corporation’s employees. All other awards may be granted to employees, including officers, and to non-employee directors and consultants of the Company and any of the Company’s affiliates. The exercise price of a stock option generally cannot be less than 100% of the fair market value of our common stock on the date of grant. Options under the 2019 Plan may be granted for periods of up to 10 years. At December 31, 2018 there were 4,647,839 shares of common stock available for issuance under the 2011 Plan. At June 30, 2019 there were 4,563,163 shares of common stock available for issuance under the 2011 Plan and 2,726,681 available for issuance under the 2019 Plan. Stock Option Activity A summary of the Company’s stock option activity under the 2011 Plan for the six months ended June 30, 2019 is as follows: Outstanding Options (in thousands, except share and per share data) Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Balance—December 31, 2018 4,110,130 $ 3.16 6.94 $ 24,716 Options granted 724,940 11.19 — Options exercised (244,189 ) 2.51 — Options cancelled (27,718 ) 6.91 — Balance—June 30, 2019 4,563,163 $ 4.44 7.02 $ 103,632 The aggregate intrinsic value of unexercised stock options is calculated as the difference between the closing price of the Company’s common stock of $27.15 on June 28, 2019 (the last trading day of the quarter) and the exercise prices of the underlying stock options. The weighted-average grant date fair value of options granted was $8.40 and $3.37 per share for the three months ended June 30, 2019 and 2018, respectively, and $8.07 and $3.37 per share for the six months ended June 30, 2019 and 2018, respectively. As of June 30, 2019, the unrecognized stock-based compensation of unvested options was $10.3 million, which is expected to be recognized over a weighted-average period of 3.3 years. Valuation of Stock Options The Company estimated the fair value of stock options using the Black-Scholes option-pricing model. The fair value of stock options is recognized on a straight-line basis over the requisite service periods of the awards. The fair value of stock options was estimated using the following weighted-average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Expected term (in years) 5.00 - 6.08 5.99 5.00 - 6.87 5.99 Volatility 56.89 - 57.27% 56.20% 56.20 - 57.27% 56.20% Risk-free interest rate 2.31 - 2.36% 2.84 - 2.88% 2.31 - 2.52% 2.84 - 2.88% Dividend yield 0% 0% 0% 0% Expected Term. The expected term is calculated using the simplified method, which is available if there is insufficient historical data about exercise patterns and post-vesting employment termination behavior. The simplified method is based on the vesting period and the contractual term for each grant, or for each vesting tranche for awards with graded vesting. The midpoint of the vesting date and the maximum contractual expiration date is used as the expected term under this method. For awards with multiple vesting tranches, the times from grant until the midpoints for each of the tranches may be averaged to provide an overall expected term. Expected Volatility. The Company used an average historical stock price volatility of a peer group of publicly traded companies to be representative of its expected future stock price volatility, as the Company did not have sufficient trading history for its common stock. For purposes of identifying these peer companies, the Company considered the industry, stage of development, size, and financial leverage of potential comparable companies. For each grant, the Company measured historical volatility over a period equivalent to the expected term. Risk-Free Interest Rate. The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero-coupon issues with remaining terms equivalent to the expected term of a stock award. Expected Dividend Rate. The Company has not paid and does not anticipate paying any dividends in the near future. Accordingly, the Company has estimated the dividend yield to be zero. 2019 Employee Stock Purchase Plan In May 2019, the Board adopted the 2019 Employee Stock Purchase Plan (the “ESPP”), which was approved by the Company’s stockholders in June 2019. A total of 250,000 shares of common stock are initially reserved for issuance under the ESPP. The number of shares may be increased in accordance with the terms of the ESPP. Subject to any plan limitations, the ESPP allows eligible employees to contribute, normally through payroll deductions, up to 15% of their earnings for the purchase of the Company’s common stock at a discounted price per share. The price at which common 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 last day of the offering period, whichever is lower. Except for the initial offering period, the ESPP provides for separate six-month offering periods beginning on May 1 and November 1 of each year. The initial offering period runs from June 20, 2019 through October 31, 2019. During the six-months ended June 30, 2019, no shares of common stock were purchased under the ESPP. The total compensation expense related to the ESPP for the six-months ended June 30, 2019 was not material. The following assumptions were used to calculate the stock-based compensation for each stock purchase right granted under the ESPP: a weighted-average expected life of 0.37 years; expected volatility of 59.1%; a risk-free interest rate of 2.1%; and a zero dividend yield. Stock-based Compensation Expense The following is a summary of stock-based compensation expense by function (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Cost of revenues $ 105 $ 39 $ 190 $ 63 Research and development 193 103 357 167 Selling, general, and administrative 1,348 272 1,708 353 Total stock-based compensation expense $ 1,646 $ 414 $ 2,255 $ 583 During the three months ended June 30, 2019, 67,418 shares with performance conditions vested. The awards were subject to two vesting criteria: (i) a time-based service criterion, and (ii) a performance criterion of an initial public offering, which were met in connection with our June 20, 2019 IPO. The Company recognized $0.3 million of stock-based compensation expense for all such awards. |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock Warrants | 6 Months Ended |
Jun. 30, 2019 | |
Convertible Preferred Stock Warrants [Abstract] | |
Redeemable Convertible Preferred Stock Warrants | Note 10. Redeemable Convertible Preferred Stock Warrants In September 2014, in connection with the Term Loan (see Note 6), the Company issued a warrant to purchase 22,489 shares of its Series B redeemable convertible preferred stock at an exercise price of $4.60 per share. The estimated fair value of the Series B convertible preferred stock warrant on the date of issuance of $0.1 million was recorded as a debt reduction. As of the issuance date, the fair value of the Series B convertible preferred stock warrant was calculated using the Black-Scholes option-pricing model and was based on a contractual term of ten years, a risk-free interest rate of 2.52%, expected volatility of 66.53%, and 0% expected dividend yield. In June 2017, as additional consideration for the Revolving Loan (see Note 6), the Company issued a warrant to purchase up to 62,096 shares of its Series C redeemable convertible preferred stock at an exercise price of $8.052, subject to certain adjustments, such as any stock splits, stock dividends, recapitalizations, reclassifications, combinations, or similar transactions. The remaining term of the Series C convertible preferred stock warrant is seven years from June 28, 2017. The estimated fair value of the Series C convertible preferred stock warrant on the date of issuance of $0.1 million was recorded as a debt reduction. As of the issuance date, the fair value of the Series C convertible preferred stock warrant was calculated using the Black-Scholes option-pricing model and was based on a contractual term of seven years, a risk-free interest rate of 1.97%, expected volatility of 64.33%, and 0% expected dividend yield. At initial recognition, the convertible preferred stock warrants were recorded at their estimated fair values and were subject to remeasurement at each consolidated balance sheet date, with changes in fair value recognized as a component of net income. As of December 31, 2018, the fair values of the convertible preferred stock warrants were calculated to be $0.7 million. Immediately prior to the closing of the Company’s IPO, the redeemable convertible preferred stock warrants automatically converted to common stock warrants, and were reclassified as common stock warrants. As a result of the automatic conversion of the redeemable convertible preferred stock warrants to common stock warrants, the Company revalued the redeemable convertible preferred stock warrants as of the completion of the IPO and reclassified the outstanding preferred stock warrant liability balance to additional paid-in capital with no further remeasurements as the common stock warrants are now deemed permanent equity. The fair value transferred to additional paid-in capital was $2.1 million. Subsequent to the conversion to a common stock warrant and before the end of the quarter ended June 30, 2019, the common stock warrant for 22,489 shares was exercised. As a result, the Company issued 19,069 shares of common stock as the contract allows a net share settlement. As of June 30, 2019, the common stock warrant for 62,096 shares was still outstanding. |
Common Stock Warrants
Common Stock Warrants | 6 Months Ended |
Jun. 30, 2019 | |
Common Stock Warrants [Abstract] | |
Common Stock Warrants | Note 11. Common Stock Warrants In connection with the sale of Series A redeemable convertible preferred stock in August 2011, the Company issued a warrant to purchase 188,643 shares of common stock to an investor who purchased Series A redeemable convertible preferred stock in August 2011 at an exercise price of $0.04 per share. The Company recorded the issuance-date fair value of the warrant of $0.1 million in equity as the warrant met all criteria for equity classification. The common stock warrant was exercised in June 2019 prior to the Company’s IPO and is no longer outstanding as of June 30, 2019. In connection with the Growth Capital Loan agreement (see Note 6), the Company issued a warrant to purchase 65,502 shares of common stock to the lender at an exercise price of $9.16 per share. The Company recorded the issuance-date fair value of the warrant of $0.6 million in equity as the warrant met all criteria for equity classification. The warrant is still outstanding at June 30, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12 . Commitments and Contingencies Contingencies The Company is subject to claims and assessments from time to time in the ordinary course of business. Accruals for litigation and contingencies are reflected in the consolidated financial statements based on management’s assessment, including the advice of legal counsel, of the expected outcome of litigation or other dispute resolution proceedings and/or the expected resolution of contingencies. Liabilities for estimated losses are accrued if the potential losses from any claims or legal proceedings are considered probable and the amounts can be reasonably estimated. Significant judgment is required in both the determination of probability of loss and the determination as to whether the amount can be reasonably estimated. Accruals are based only on information available at the time of the assessment due to the uncertain nature of such matters. As additional information becomes available, management reassesses potential liabilities related to pending claims and litigation and may revise its previous estimates, which could materially affect the Company’s consolidated results of operations in a given period. As of December 31, 2018 and June 30, 2019, the Company was not involved in any material legal proceedings. Indemnification In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but that have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stockholders | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common Stockholders | Note 13. Net Loss per Share Attributable to Common Stockholders Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period. Because the Company reported a net loss for the three and six months ended June 30, 2019 and 2018, the number of shares used to calculate diluted net loss per common share is the same as the number of shares used to calculate basic net loss per common share for those periods presented because the potentially dilutive shares would have been antidilutive if included in the calculation. The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net loss attributable to common stockholders $ (5,869 ) $ (7,315 ) $ (11,554 ) $ (12,690 ) Denominator: Weighted-average shares outstanding 6,597,811 3,064,123 4,854,125 3,062,435 Less weighted-average shares subject to repurchase (804 ) (997 ) (800 ) (1,366 ) Weighted-average shares outstanding used in computing net loss per share attributable to common stockholders — basic and diluted 6,597,007 3,063,126 4,853,325 3,061,069 Net loss per share attributable to common stockholders — basic and diluted $ (0.89 ) $ (2.39 ) $ (2.38 ) $ (4.15 ) The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Redeemable convertible preferred stock — 16,806,746 — 16,806,746 Conversion of Convertible Notes ( 1) — 1,639,716 — 1,639,716 Common stock warrant 127,598 188,643 127,598 188,643 Series B preferred stock warrant — 22,489 — 22,489 Series C preferred stock warrant — 62,096 — 62,096 Options to purchase common stock 4,563,163 3,398,484 4,563,163 3,398,484 Unvested early exercised common stock options 548 195 548 195 Employee stock purchase plan 61,892 — 61,892 — Total 4,753,201 22,118,369 4,753,201 22,118,369 (1) Calculated as $12.2 million principal and $1.0 million accrued but unpaid interest as of June 30, 2018. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s final prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on June 20, 2019 (the “Prospectus”). The condensed consolidated balance sheet as of December 31, 2018 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by U.S. GAAP. The condensed consolidated financial statements include the accounts of Personalis, Inc. and its wholly owned subsidiary, Personalis (UK) Ltd. All intercompany balances and transactions have been eliminated. The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year ending December 31, 2019. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the condensed consolidated financial statements and the reported amounts of revenues and expense during the reporting period. The estimates include, but are not limited to, useful lives assigned to long-lived assets, the valuation of common and convertible redeemable preferred stock and related warrants and options, the valuation of the compound derivative instrument, the valuation of stock-based awards, and provisions for income taxes and contingencies. Actual results could differ from these estimates, and such differences could be material to the Company’s condensed consolidated financial position and results of operations. |
Reverse Stock Split | Reverse Stock Split On June 4, 2019, the Company filed an amendment to the Company’s amended and restated certificate of incorporation to effect a reverse split of shares of the Company’s common stock and redeemable convertible preferred stock on a four-for-one basis (the “Reverse Stock Split”). The par value of the common stock and redeemable convertible preferred stock was not adjusted as a result of the Reverse Stock Split. All references to common stock, options to purchase common stock, share data, per share data, redeemable convertible preferred stock and related information contained in these consolidated financial statements have been retrospectively adjusted to reflect the effect of the Reverse Stock Split for all periods presented. |
Initial Public Offering | Initial Public Offering On June 20, 2019, the Company completed an IPO in which it issued and sold 9,109,725 shares of its common stock at a public offering price of $17.00 per share. The Company received net proceeds of $140.0 million after deducting underwriting discounts, commissions and offering expenses. A warrant to purchase 188,643 shares of our common stock was exercised prior to completion of the IPO. In addition, in connection with the IPO, all shares of the Company’s then-outstanding redeemable convertible preferred stock were automatically converted into 18,474,703 shares of the Company’s common stock, and all then-outstanding warrants to purchase the Company’s convertible preferred stock were automatically converted into warrants to purchase 84,585 shares of the Company’s common stock. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs consist of fees and expenses incurred in connection with the anticipated sale of the Company’s common stock in the IPO, including legal, accounting, printing and other IPO-related costs. In June 2019, upon completion of the IPO, the Company reclassified deferred offering costs of $4.0 million into additional paid-in capital as a reduction of the net proceeds received from the IPO. During the six months ended June 30, 2019, $2.0 million of the deferred offering costs were paid. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that subject the Company to concentration of credit risk consist of cash and cash equivalents. The Company’s cash and cash equivalents are deposited with a high-quality financial institution. Deposits at this institution may, at times, exceed federally insured limits. Management believes that this financial institution is financially sound and, accordingly, that minimal credit risk exists. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company purchases various reagents and sequencing materials from sole source suppliers. Any extended interruption in the supply of these materials could result in the Company’s inability to secure sufficient materials to conduct business and meet customer demand. The Company routinely assesses the creditworthiness of its customers. The Company has not experienced any material losses related to receivables from individual customers, or groups of customers. The Company does not require collateral. Due to these factors, no additional credit risk is believed by management to be probable in the Company’s accounts receivable. Significant customers are those which represent more than 10% of the Company’s total revenue or accounts receivable balance at each respective condensed consolidated balance sheet date. For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable are as follows: Revenue (unaudited) Revenue (unaudited) Accounts Receivable Three Months Ended June 30 Six Months Ended June 30 June 30, 2019 December 31, 2018 2019 2018 2019 2018 (unaudited) VA MVP 54 % 45 % 56 % 46 % 30 % * Merck & Co., Inc. * 16 % * 14 % * 10 % Pfizer Inc. 23 % * 20 % * 38 % 33 % Customer D 12 % * * * 18 % * Customer E * 10 % * * * * Customer F * * * * * 17 % Customer G * * * * * 10 % * Less than 10% of revenue or accounts receivable |
Revenue Recognition | Revenue Recognition The Company applies the revenue recognition guidance in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”). Revenue Recognition The revenue guidance provides a five-step framework through which revenue is recognized when control of promised goods or services is transferred to a customer at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for arrangements that the Company concludes are within the scope of the new revenue recognition standard, management performs the following five steps: (i) identifies the contract(s) with a customer; (ii) identifies the performance obligations in the contract(s); (iii) determines the transaction price, including whether there are any constraints on variable consideration; (iv) allocates the transaction price to the performance obligations; and (v) recognizes revenue when (or as) the Company satisfies a performance obligation. At contract inception, once a contract is determined to be within the scope of the new revenue standard, the Company assesses whether individual goods or services promised within each contract are distinct and, therefore, represent separate performance obligation. The Company derives revenues from sequencing and data analysis services to support the development of personalized cancer vaccines and other next-generation cancer immunotherapies. The Company’s contracts are in the form of a combination of signed agreements, statements of work, and/or purchase orders. Under ASC Topic 606, the Company accounts for a contract with a customer when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and it is probable that the Company will collect substantially all of the consideration to which it will be entitled. The sequencing and data analysis services are the only distinct services that meet the definition of a performance obligation and are accounted for as one performance obligation under ASC Topic 606. The Company recognizes revenue from such services at the point in time when control of the test results is transferred to the customer. The Company has elected to exclude all sales and value added taxes from the measurement of the transaction price. Sequencing and data analysis services are based on a fixed price per test. Payment terms and conditions vary by contract and customer. The Company’s standard payment terms are less than 90 days from the invoice date. In instances where the timing of the Company’s revenue recognition differs from the timing of its invoicing, the Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised services to the customer will be one year or less. The Company assessed each of its revenue-generating arrangements in order to determine whether a significant financing component exists and concluded that a significant financing component does not exist in any of its arrangements. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s services and provides payment protection for the Company. Practical Expedients and Exemptions As a practical expedient, the Company recognizes the incremental costs of obtaining contracts, such as sales commissions, as an expense when incurred since the amortization period of the asset the Company otherwise would have recognized is one year or less. Sales commissions are recorded within selling, general, and administrative expenses in the consolidated statements of operations. |
Cost of Revenues | Cost of Revenues The Company’s costs of revenues primarily consist of production materials, personnel costs (e.g., salaries, bonuses, benefit, and stock-based compensation), cost of expensed equipment, consumables and laboratory supplies, information technology (“IT”) and facility costs, and depreciation and service maintenance contracts on capitalized equipment. |
Net Loss per Share Attributable to Common Stockholders | Net Loss per Share Attributable to Common Stockholders Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, the redeemable convertible preferred stock, convertible preferred stock warrants, common stock warrants, common stock subject to repurchase, and stock options are considered to be potentially dilutive securities. Basic and diluted net loss attributable to common stockholders per share is presented in conformity with the two-class method required for participating securities as the redeemable convertible preferred stock is considered a participating security. The Company’s participating securities do not have a contractual obligation to share in the Company’s losses. As such, the net loss is attributed entirely to common stockholders. Because the Company has reported a net loss for the reporting periods presented, the diluted net loss per common share is the same as basic net loss per common share for those periods. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In May 2014, the FASB issued Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). Subsequently, the FASB also issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), which adjusted the effective date of ASU No. 2014-09; ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which amends the principal-versus-agent implementation guidance and illustrations in ASU No. 2014-09; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies identifying performance obligation and licensing implementation guidance and illustrations in ASU No. 2014-09; and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which addresses implementation issues and is intended to reduce the cost and complexity of applying the new revenue standard in ASU No. 2014-09 (collectively, the “Revenue ASUs”). The Revenue ASUs provide an accounting standard for a single comprehensive model for use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The accounting standard is effective for interim and annual periods beginning after December 15, 2017. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (the full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company performed a detailed review of its revenue agreements and assessed the differences in accounting for such contracts under this guidance compared with previous revenue accounting standards. On January 1, 2017, the Company early adopted ASU No. 2014-09 using the full retrospective method. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Results for all periods presented are under ASC Topic 606. In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting (“ASU No. 2018-07”). ASU No. 2018-07 simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. For all entities, the amendments are effective for annual periods beginning after December 15, 2019, and interim periods within annual periods beginning after December 15, 2020. Early adoption is permitted for any entity in any interim or annual period for which consolidated financial statements have not been issued or made available for issuance, but not before an entity adopts ASC Topic 606. The Company early adopted this guidance on January 1, 2017, which did not result in a material impact on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU No. 2016-02”). In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, which provides clarification to ASU 2016-02. These ASUs (collectively, the “new lease standard”) require an entity to recognize a lease liability and a right-of-use (“ROU”) asset on the balance sheet for leases with lease terms of more than twelve months. Lessor accounting is largely unchanged, while lessees will no longer be provided with a source of off-balance sheet financing. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842)—Targeted Improvements, which allows entities to elect a modified retrospective transition method where entities may continue to apply the existing lease guidance during the comparative periods and apply the new lease requirements through a cumulative effect adjustment in the period of adoptions rather than in the earliest period presented. On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842), and its associated amendments using the modified retrospective transition method by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. There was no cumulative-effect adjustment recorded to retained earnings upon adoption. Under the standard, a lessee is required to recognize a lease liability and ROU asset for all leases. The new guidance also modified the classification criteria and requires additional disclosures to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. Consistent with current guidance, a lessee’s recognition, measurement, and presentation of expenses and cash flows arising from a lease continues to depend primarily on its classification. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward its historical lease classification, its assessment on whether a contract was or contains a lease, and its initial direct costs for any leases that existed prior to January 1, 2019. In addition, the Company elected the short-term lease exception as a practical expedient. At the date of adoption, the Company derecognized a deferred rent liability in the amount of $0.3 million, and recognized a ROU asset and respective lease liability in the amount of $1.7 million and $2.0 million, respectively. As of June 30, 2019, lease liabilities in the amount of $1.0 million and $0.5 million are included in “Accrued and other current liabilities” and “Other long-term liabilities,” respectively. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. The guidance is effective for the Company beginning in the first quarter of 2020. Early adoption beginning January 1, 2019 is permitted. The Company is currently evaluating the impact of the new guidance on its condensed consolidated financial statements and related disclosures. |
JOBS Act Accounting Election | JOBS Act Accounting Election The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has irrevocably elected not to avail itself of this exemption from new or revised accounting standards, and therefore, the Company will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Percentage of Revenues and Accounts Receivables from Customers | For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable are as follows: Revenue (unaudited) Revenue (unaudited) Accounts Receivable Three Months Ended June 30 Six Months Ended June 30 June 30, 2019 December 31, 2018 2019 2018 2019 2018 (unaudited) VA MVP 54 % 45 % 56 % 46 % 30 % * Merck & Co., Inc. * 16 % * 14 % * 10 % Pfizer Inc. 23 % * 20 % * 38 % 33 % Customer D 12 % * * * 18 % * Customer E * 10 % * * * * Customer F * * * * * 17 % Customer G * * * * * 10 % * Less than 10% of revenue or accounts receivable |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disaggregation Of Revenue [Abstract] | |
Schedule of Revenues Disaggregated by Customer Type | The following table presents the Company’s revenues disaggregated by customer type (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 VA MVP $ 8,536 $ 3,976 $ 16,879 $ 5,952 All other customers 7,289 4,823 13,021 7,011 Total $ 15,825 $ 8,799 $ 29,900 $ 12,963 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Inventory and Other Deferred Costs | Inventory and other deferred costs consist of the following (in thousands): June 30, December 31, 2019 2018 Raw materials $ 1,625 $ 2,134 Other deferred costs 1,913 1,298 Total inventory and other deferred costs $ 3,538 $ 3,432 |
Schedule of Accrued and Other Current Liabilities | Accrued and other current liabilities consist of the following (in thousands): June 30, December 31, 2019 2018 Accrued compensation $ 2,457 $ 2,843 Operating lease right-of-use liabilities 1,030 — Accrued taxes 354 181 Accrued interest 280 207 Deferred rent — 99 Accrued liabilities 547 59 Deferred revenues 8 3 Total accrued and other current liabilities $ 4,676 $ 3,392 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table represents the fair value hierarchy for the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands): As of June 30, 2019 Level 1 Level 2 Level 3 Total Assets Money market funds $ 160,352 $ — $ — $ 160,352 Total assets measured at fair value $ 160,352 $ — $ — $ 160,352 As of December 31, 2018 Level 1 Level 2 Level 3 Total Assets Money market funds $ 18,142 $ — $ — $ 18,142 Total assets measured at fair value $ 18,142 $ — $ — $ 18,142 Liabilities Convertible preferred stock warrants liability $ — $ — $ 683 $ 683 Total liabilities measured at fair value $ — $ — $ 683 $ 683 |
Schedule of Risk-free Interest Rate Based on U.S. Treasury Yield Curve Over Expected Term of Warrants | The risk-free interest rate was based on the U.S. Treasury yield curve over the expected term of the warrants. Six Months Ended Year Ended June 30, 2019 December 31, 2018 Expected term (in years) 5.01 - 5.26 5.17 - 7.00 Volatility 57.20% - 57.24% 55.56% - 56.42% Risk-free interest rate 1.75% 2.58% - 3.01% Dividend yield 0% 0% |
Summary of Changes in Fair Value of Level 3 Financial Instruments | The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial instruments (in thousands): Warrant Liability Balance — December 31, 2018 $ 683 Change in fair value $ 1,403 Reclassification of warrant liability to additional paid in capital on conversion (2,086 ) Balance — June 30, 2019 $ — |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Amounts Outstanding Under Company's Financing Arrangements | Amounts outstanding under the Company’s financing arrangements consisted of the following (in thousands): June 30, December 31, 2019 2018 Credit agreement Revolving Loan $ — $ 5,000 Growth Capital Loan 20,000 — Total principal payments due 20,000 5,000 Less reduction in carrying value (964 ) (4 ) Total amounts outstanding 19,036 4,996 Less: Current portion (1,020 ) (4,996 ) Long-Term portion $ 18,016 $ — |
Summary of Repayment Schedule Relating to Long-Term Debt | The repayment schedule relating to the Company’s long-term debt as of June 30, 2019 is as follows (in thousands): June 30, 2019 2019 (remaining six months) $ — 2020 4,395 2021 6,463 2022 7,212 2023 1,930 Thereafter — Total $ 20,000 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments | Future minimum lease payments at December 31, 2018 under this noncancelable operating lease were as follows (in thousands): Amount 2019 $ 1,091 2020 1,030 Total future minimum lease payments $ 2,121 |
Schedule of Future Minimum Lease Payments under ASC 842 | Future minimum lease payments at June 30, 2019 under this noncancelable operating lease were as follows (in thousands): Amount 2019 (remaining six months) $ 552 2020 1,030 Total future minimum lease payments 1,582 Less: Imputed interest (84 ) Present value of future minimum lease payments 1,498 Less: Current portion of operating lease liability (1,030 ) Operating lease liabilities - noncurrent $ 468 |
Redeemable Convertible Prefer_3
Redeemable Convertible Preferred Stock (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Summary of Redeemable Convertible Preferred Stock Outstanding | Series A redeemable convertible preferred stock, Series B redeemable convertible preferred stock and Series C redeemable convertible preferred stock (collectively the “Redeemable Convertible Preferred Stock”) outstanding consisted of the following as of December 31, 2018 and as of immediately prior to the automatic conversion of the Redeemable Convertible Preferred Stock into common stock: December 31, 2018 Shares Authorized Shares Issued and Outstanding Aggregate Liquidation Preference Net Carrying Value (in thousands) Series A 31,250,000 7,812,497 $ 20,500 $ 20,261 Series B 19,288,150 4,799,548 22,078 22,047 Series C 24,700,000 5,862,697 47,206 47,096 Total redeemable convertible preferred stock 75,238,150 18,474,742 $ 89,784 $ 89,404 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity under the 2011 Plan for the six months ended June 30, 2019 is as follows: Outstanding Options (in thousands, except share and per share data) Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Balance—December 31, 2018 4,110,130 $ 3.16 6.94 $ 24,716 Options granted 724,940 11.19 — Options exercised (244,189 ) 2.51 — Options cancelled (27,718 ) 6.91 — Balance—June 30, 2019 4,563,163 $ 4.44 7.02 $ 103,632 |
Summary of Weighted-average Assumptions Used in Determination of Fair Value of Stock Options | The fair value of stock options was estimated using the following weighted-average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Expected term (in years) 5.00 - 6.08 5.99 5.00 - 6.87 5.99 Volatility 56.89 - 57.27% 56.20% 56.20 - 57.27% 56.20% Risk-free interest rate 2.31 - 2.36% 2.84 - 2.88% 2.31 - 2.52% 2.84 - 2.88% Dividend yield 0% 0% 0% 0% |
Stock Based Compensation Expense by Function | The following is a summary of stock-based compensation expense by function (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Cost of revenues $ 105 $ 39 $ 190 $ 63 Research and development 193 103 357 167 Selling, general, and administrative 1,348 272 1,708 353 Total stock-based compensation expense $ 1,646 $ 414 $ 2,255 $ 583 |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Common Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss per Share | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net loss attributable to common stockholders $ (5,869 ) $ (7,315 ) $ (11,554 ) $ (12,690 ) Denominator: Weighted-average shares outstanding 6,597,811 3,064,123 4,854,125 3,062,435 Less weighted-average shares subject to repurchase (804 ) (997 ) (800 ) (1,366 ) Weighted-average shares outstanding used in computing net loss per share attributable to common stockholders — basic and diluted 6,597,007 3,063,126 4,853,325 3,061,069 Net loss per share attributable to common stockholders — basic and diluted $ (0.89 ) $ (2.39 ) $ (2.38 ) $ (4.15 ) |
Schedule of Dilutive Securities Excluded from Computation of Diluted Net Loss per Share | The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Redeemable convertible preferred stock — 16,806,746 — 16,806,746 Conversion of Convertible Notes ( 1) — 1,639,716 — 1,639,716 Common stock warrant 127,598 188,643 127,598 188,643 Series B preferred stock warrant — 22,489 — 22,489 Series C preferred stock warrant — 62,096 — 62,096 Options to purchase common stock 4,563,163 3,398,484 4,563,163 3,398,484 Unvested early exercised common stock options 548 195 548 195 Employee stock purchase plan 61,892 — 61,892 — Total 4,753,201 22,118,369 4,753,201 22,118,369 (1) Calculated as $12.2 million principal and $1.0 million accrued but unpaid interest as of June 30, 2018. |
Company and Nature of Business
Company and Nature of Business - Additional Information (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jun. 30, 2019USD ($)shares | Jun. 30, 2019USD ($)Segmentshares | Dec. 31, 2018USD ($)shares | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of reportable segments | Segment | 1 | ||
Accumulated deficit | $ | $ 127,059 | $ 127,059 | $ 115,505 |
Proceeds from issuance of common stock after deducting underwriting discounts, commissions and offering expenses upon completion of initial public offering | $ | $ 144,025 | ||
Common stock, shares authorized | shares | 200,000,000 | 200,000,000 | 102,700,000 |
Preferred stock, shares authorized | shares | 10,000,000 | 10,000,000 | |
Preferred stock, shares outstanding | shares | 0 | 0 | |
Common Stock | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Proceeds from issuance of common stock after deducting underwriting discounts, commissions and offering expenses upon completion of initial public offering | $ | $ 140,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Thousands | Jun. 20, 2019USD ($)$ / sharesshares | Jun. 30, 2019USD ($) | Jan. 01, 2019USD ($) |
Summary Of Significant Accounting Policies [Line Items] | |||
Reverse stock split of common stock, description | four-for-one | ||
Reverse stock split of common stock, ratio | 0.25 | ||
Conversion from convertible warrants | shares | 188,643 | ||
Operating lease right-of-use assets | $ 1,320 | ||
Lease liability | 1,498 | ||
ASU 2016-02 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cumulative-effect adjustment recorded to retained earnings | $ 0 | ||
Derecognized deferred rent liability | 300 | ||
Operating lease right-of-use assets | 1,700 | ||
Lease liability | $ 2,000 | ||
ASU 2016-02 | Accrued and Other Current Liabilities | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Lease liability | 1,000 | ||
ASU 2016-02 | Other Long-term Liabilities | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Lease liability | $ 500 | ||
Minimum | ASU 2014-09 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Standard payment terms | 90 days | ||
Maximum | ASU 2014-09 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Period between payment by customer and transfer of promised services | 1 year | ||
Recognition period of incremental costs | 1 year | ||
IPO | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Reverse stock split of common stock, description | The Reverse Stock Split was effected on a holder-by-holder basis with no fractional shares issued, which resulted in 39 fewer shares of common stock issued as compared to the amounts shown in the above table | ||
Number of shares issued | shares | 9,109,725 | ||
Shares issued price per share | $ / shares | $ 17 | ||
Proceeds from issuance of common stock after deducting underwriting discounts, commissions and offering expenses upon completion of initial public offering | $ 140,000 | ||
Conversion from convertible common stock | shares | 18,474,703 | ||
Reclassification of deferred offering costs to additional paid in capital | $ 4,000 | ||
Payment of deferred offering costs | $ 2,000 | ||
IPO | Convertible Preferred Stock | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Conversion from convertible warrants to purchase common stock | shares | 84,585 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Percentage of Revenues and Accounts Receivables from Customers (Details) - Customer | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
VA MVP | Revenue | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 54.00% | 45.00% | 56.00% | 46.00% | |
VA MVP | Accounts Receivable | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 30.00% | ||||
Merck & Co., Inc. | Revenue | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 16.00% | 14.00% | |||
Merck & Co., Inc. | Accounts Receivable | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 10.00% | ||||
Pfizer Inc. | Revenue | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 23.00% | 20.00% | |||
Pfizer Inc. | Accounts Receivable | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 38.00% | 33.00% | |||
Customer D | Revenue | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 12.00% | ||||
Customer D | Accounts Receivable | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 18.00% | ||||
Customer E | Revenue | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 10.00% | ||||
Customer F | Accounts Receivable | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 17.00% | ||||
Customer G | Accounts Receivable | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 10.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Percentage of Revenues and Accounts Receivables from Customers (Parenthetical) (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Accounts Receivable | Minimum | Customer | |
Summary Of Significant Accounting Policies [Line Items] | |
Concentration risk percentage | 10.00% |
Revenues - Schedule of Revenues
Revenues - Schedule of Revenues Disaggregated by Customer Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 15,825 | $ 8,799 | $ 29,900 | $ 12,963 |
VA MVP | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 8,536 | 3,976 | 16,879 | 5,952 |
All Other Customers | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 7,289 | $ 4,823 | $ 13,021 | $ 7,011 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||||
Contract assets | $ 0 | $ 0 | $ 0 | ||
Contract liabilities | 41,900,000 | 41,900,000 | $ 42,900,000 | ||
Contract liability, revenue recognized | $ 8,400,000 | $ 500,000 | $ 16,100,000 | $ 2,000,000 | |
Customer Concentration Risk | Revenues | Maximum | Outside of United States | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenue | 1.00% | 4.00% | 2.00% | 4.00% |
Revenues - Additional Informa_2
Revenues - Additional Information (Details 1) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation, amount | $ 73 | |
Remaining performance obligation, expected time of satisfaction | 3 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation, amount | $ 57.4 | |
Remaining performance obligation, expected time of satisfaction | 2 years |
Balance Sheet Details - Schedul
Balance Sheet Details - Schedule of Inventory and Other Deferred Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory And Other Deferred Costs [Abstract] | ||
Raw materials | $ 1,625 | $ 2,134 |
Other deferred costs | 1,913 | 1,298 |
Total inventory and other deferred costs | $ 3,538 | $ 3,432 |
Balance Sheet Details - Additio
Balance Sheet Details - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Depreciation and amortization expense | $ 1,100 | $ 700 | $ 2,192 | $ 1,200 |
Balance Sheet Details - Sched_2
Balance Sheet Details - Schedule of Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued compensation | $ 2,457 | $ 2,843 |
Operating lease right-of-use liabilities | 1,030 | |
Accrued taxes | 354 | 181 |
Accrued interest | 280 | 207 |
Deferred rent | 99 | |
Accrued liabilities | 547 | 59 |
Deferred revenues | 8 | 3 |
Total accrued and other current liabilities | $ 4,676 | $ 3,392 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Total assets measured at fair value | $ 160,352 | $ 18,142 |
Liabilities | ||
Total liabilities measured at fair value | 683 | |
Convertible Preferred Stock Warrants Liability | ||
Liabilities | ||
Total liabilities measured at fair value | 683 | |
Money Market Funds | ||
Assets | ||
Total assets measured at fair value | 160,352 | 18,142 |
Level 1 | ||
Assets | ||
Total assets measured at fair value | 160,352 | 18,142 |
Liabilities | ||
Total liabilities measured at fair value | 0 | |
Level 1 | Convertible Preferred Stock Warrants Liability | ||
Liabilities | ||
Total liabilities measured at fair value | 0 | |
Level 1 | Money Market Funds | ||
Assets | ||
Total assets measured at fair value | 160,352 | 18,142 |
Level 2 | ||
Assets | ||
Total assets measured at fair value | 0 | 0 |
Liabilities | ||
Total liabilities measured at fair value | 0 | |
Level 2 | Convertible Preferred Stock Warrants Liability | ||
Liabilities | ||
Total liabilities measured at fair value | 0 | |
Level 2 | Money Market Funds | ||
Assets | ||
Total assets measured at fair value | 0 | 0 |
Level 3 | ||
Assets | ||
Total assets measured at fair value | 0 | 0 |
Liabilities | ||
Total liabilities measured at fair value | 683 | |
Level 3 | Convertible Preferred Stock Warrants Liability | ||
Liabilities | ||
Total liabilities measured at fair value | 683 | |
Level 3 | Money Market Funds | ||
Assets | ||
Total assets measured at fair value | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Risk-free Interest Rate Based on U.S. Treasury Yield Curve Over Expected Term of Warrants (Details) | Jun. 30, 2019 | Dec. 31, 2018 |
Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Expected term (in years) | 5 years 3 days | 5 years 2 months 1 day |
Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Expected term (in years) | 5 years 3 months 3 days | 7 years |
Volatility | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Warrants measurement input | 57.20 | 55.56 |
Volatility | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Warrants measurement input | 57.24 | 56.42 |
Risk-free Interest Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Warrants measurement input | 1.75 | |
Risk-free Interest Rate | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Warrants measurement input | 2.58 | |
Risk-free Interest Rate | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Warrants measurement input | 3.01 | |
Dividend Yield | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Warrants measurement input | 0 | 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Level 3 Financial Instruments (Details) - Level 3 - Warrant Liability $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Balance | $ 683 |
Change in fair value | 1,403 |
Reclassification of warrant liability to additional paid in capital on conversion | (2,086) |
Balance | $ 0 |
Borrowings - Summary of Amounts
Borrowings - Summary of Amounts Outstanding Under Company's Financing Arrangements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Line Items] | ||
Total principal payments due | $ 20,000 | $ 5,000 |
Less reduction in carrying value | (964) | (4) |
Total amounts outstanding | 19,036 | 4,996 |
Less: Current portion | (1,020) | (4,996) |
Long-Term portion | 18,016 | |
Revolving Loan | ||
Debt Disclosure [Line Items] | ||
Total principal payments due | $ 5,000 | |
Growth Capital Loan | ||
Debt Disclosure [Line Items] | ||
Total principal payments due | $ 20,000 |
Borrowings - Summary of Repayme
Borrowings - Summary of Repayment Schedule Relating to Long-Term Debt (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 4,395 |
2021 | 6,463 |
2022 | 7,212 |
2023 | 1,930 |
Total | $ 20,000 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) | Mar. 22, 2019USD ($)$ / sharesshares | Sep. 20, 2018USD ($)$ / sharesshares | Aug. 20, 2018USD ($) | May 31, 2018USD ($) | Jun. 29, 2017USD ($)NumberofTime | Jun. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 20, 2019shares | Dec. 31, 2018USD ($) | Oct. 03, 2014USD ($) |
Debt Disclosure [Line Items] | |||||||||||||
Line of credit outstanding | $ 20,000,000 | $ 5,000,000 | |||||||||||
Warrant issued to purchase stock | shares | 188,643 | ||||||||||||
Compound derivative instrument fair value | $ 0 | 0 | |||||||||||
Loss on debt extinguishment | $ (3,322,000) | $ (3,322,000) | |||||||||||
Convertible Notes | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Debt instrument, face value | $ 12,200,000 | ||||||||||||
Debt instrument, interest rate | 8.00% | ||||||||||||
Debt instrument, maturity date | Jun. 28, 2018 | ||||||||||||
Debt instrument, convertible, threshold of proceeds from equity financing, qualified financing | $ 10,000,000 | ||||||||||||
Debt instrument, convertible, conversion price. number of times multiplied on qualified financing | NumberofTime | 0.8 | ||||||||||||
Debt instrument, percentage of outstanding principal amount to be repaid in cash in change of control | 150.00% | ||||||||||||
Estimated fair value of compound derivative instrument | $ 500,000 | ||||||||||||
Debt instrument, carrying value, reduction accretion period, based on effective interest method | 1 year | ||||||||||||
Debt instrument, effective interest rate | 12.69% | ||||||||||||
Debt instrument, extended maturity date | Sep. 20, 2018 | ||||||||||||
Conversion of redeemable convertible preferred stock to common stock | $ 13,400,000 | ||||||||||||
Convertible notes, equity component | 800,000 | ||||||||||||
Loss on debt extinguishment | $ (800,000) | ||||||||||||
Debt instrument, carrying value, accretion period, based on effective interest method | 1 year 1 month 6 days | ||||||||||||
Interest expense, debt | 300,000 | 700,000 | |||||||||||
Revolving Loan | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Line of credit outstanding | 5,000,000 | ||||||||||||
Series C Redeemable Convertible Preferred Stock | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Conversion of redeemable convertible preferred stock to common stock | $ 13,400,000 | ||||||||||||
Fair value of convertible notes, conversion of convertible securities | shares | 1,667,997 | ||||||||||||
Debt instrument, convertible, conversion price | $ / shares | $ 8.052 | ||||||||||||
Series C Redeemable Convertible Preferred Stock | Revolving Loan | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Warrant issued to purchase stock | shares | 62,096 | ||||||||||||
Warrant exercise price per share | $ / shares | $ 8.052 | ||||||||||||
Term Loan | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Estimated fair value of warrants | $ 100,000 | ||||||||||||
Debt Instrument, term | 4 years | ||||||||||||
Term Loan | Series B Redeemable Convertible Preferred Stock | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Warrant exercisable term | 10 years | ||||||||||||
Warrant issued to purchase stock | shares | 22,489 | ||||||||||||
Warrant exercise price per share | $ / shares | $ 4.60 | ||||||||||||
Convertible Notes | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Debt instrument, extended maturity date | Jun. 28, 2019 | ||||||||||||
Conversion of redeemable convertible preferred stock to common stock | $ 13,100,000 | ||||||||||||
Convertible notes, compound derivate asset | 600,000 | ||||||||||||
Convertible notes, equity component | 3,900,000 | ||||||||||||
Loss on debt extinguishment | $ (3,300,000) | ||||||||||||
Debt instrument, carrying value, accretion period, based on effective interest method | 1 year 1 month 6 days | ||||||||||||
Silicon Valley Bank | Term Loan | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 3,000,000 | ||||||||||||
Line of credit outstanding | $ 2,400,000 | ||||||||||||
Line of credit facility, frequency of payments | 12 interest-only payments, followed by 36 equal monthly installments of principal, plus interest | ||||||||||||
TriplePoint Capital LLC | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 20,000,000 | ||||||||||||
Line of credit outstanding | $ 20,000,000 | ||||||||||||
Line of credit facility, frequency of payments | 36 equal monthly payments of principal, plus accrued interest, from April 1, 2020 through March 1, 2023 | ||||||||||||
Estimated fair value of warrants | $ 600,000 | ||||||||||||
Line of credit facility interest rate | 5.00% | 15.23% | |||||||||||
Percentage of prepayment fee | 1.00% | ||||||||||||
Additional prepayment premium | 0.00% | ||||||||||||
Percentage of principle payment amount | 2.75% | ||||||||||||
Fees paid to lender | $ 300,000 | ||||||||||||
TriplePoint Capital LLC | Common Stock | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Warrant issued to purchase stock | shares | 65,502 | ||||||||||||
Warrant exercise price per share | $ / shares | $ 9.16 | ||||||||||||
TriplePoint Capital LLC | Maximum | Option One | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Line of credit outstanding | $ 15,000,000 | ||||||||||||
TriplePoint Capital LLC | Minimum | Option Two | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Line of credit outstanding | $ 15,000,000 | ||||||||||||
TriplePoint Capital LLC | Prime Rate | Option One | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Interest rate, prime rate plus | 5.00% | ||||||||||||
TriplePoint Capital LLC | Prime Rate | Option Two | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Interest rate, prime rate plus | 6.50% | ||||||||||||
TriplePoint Capital LLC | Revolving Loan | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 10,000,000 | ||||||||||||
Line of credit outstanding | 5,000,000 | ||||||||||||
Estimated fair value of warrants | $ 100,000 | ||||||||||||
Debt Instrument, term | 1 year 6 months | ||||||||||||
Line of credit facility interest rate | 5.50% | 19.22% | |||||||||||
Line of credit facility maturity date | Dec. 31, 2018 | ||||||||||||
Line of credit facility extended maturity date | Mar. 22, 2019 | ||||||||||||
Line of credit facility, amount available to borrow | 5,000,000 | ||||||||||||
Interest expense | $ 200,000 | $ 400,000 | |||||||||||
Accrued interest, related with accretion | $ 200,000 | ||||||||||||
Repayments of amount outstanding | $ 5,300,000 | ||||||||||||
TriplePoint Capital LLC | Revolving Loan | Prime Rate | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Interest rate, prime rate plus | 6.75% | ||||||||||||
TriplePoint Capital LLC | Series C Redeemable Convertible Preferred Stock | Revolving Loan | |||||||||||||
Debt Disclosure [Line Items] | |||||||||||||
Warrant issued to purchase stock | shares | 62,096 | ||||||||||||
Warrant exercise price per share | $ / shares | $ 8.052 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2015ft² | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jan. 01, 2019 | |
Leases [Abstract] | ||||||
Area of office space | ft² | 31,280 | |||||
Lease expiration date | Nov. 30, 2020 | |||||
Operating lease, existence of option to extend | true | |||||
Operating lease, option to extend | an option to extend the term for a period of three years | |||||
Operating lease option to extend term | 3 years | |||||
Rent expense | $ 0.3 | $ 0.5 | ||||
Incremental borrowing rate | 8.00% | |||||
Operating lease cost | $ 0.3 | $ 0.5 | ||||
Cash paid for operating lease liabilities | $ 0.5 | |||||
Remaining lease term | 1 year 4 months 24 days | 1 year 4 months 24 days |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 1,091 |
2020 | 1,030 |
Total future minimum lease payments | $ 2,121 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Lease Payments under ASC 842 (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (remaining six months) | $ 552 |
2020 | 1,030 |
Total future minimum lease payments | 1,582 |
Less: Imputed interest | (84) |
Present value of future minimum lease payments | 1,498 |
Less: Current portion of operating lease liability | (1,030) |
Operating lease liabilities - noncurrent | $ 468 |
Redeemable Convertible Prefer_4
Redeemable Convertible Preferred Stock - Summary of Redeemable Convertible Preferred Stock Outstanding (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Temporary Equity [Line Items] | ||||||
Redeemable convertible preferred stock, Shares Authorized | 75,238,150 | |||||
Redeemable convertible preferred stock, Shares Issued | 18,474,742 | |||||
Redeemable convertible preferred stock, Shares Outstanding | 18,474,742 | |||||
Redeemable convertible preferred stock, Aggregate Liquidation Preference | $ 89,784 | |||||
Redeemable convertible preferred stock, Net Carrying Value | $ 0 | $ 89,404 | $ 89,404 | $ 75,995 | $ 75,995 | $ 75,995 |
Series A Redeemable Convertible Preferred Stock | ||||||
Temporary Equity [Line Items] | ||||||
Redeemable convertible preferred stock, Shares Authorized | 31,250,000 | |||||
Redeemable convertible preferred stock, Shares Issued | 7,812,497 | |||||
Redeemable convertible preferred stock, Shares Outstanding | 7,812,497 | |||||
Redeemable convertible preferred stock, Aggregate Liquidation Preference | $ 20,500 | |||||
Redeemable convertible preferred stock, Net Carrying Value | $ 20,261 | |||||
Series B Redeemable Convertible Preferred Stock | ||||||
Temporary Equity [Line Items] | ||||||
Redeemable convertible preferred stock, Shares Authorized | 19,288,150 | |||||
Redeemable convertible preferred stock, Shares Issued | 4,799,548 | |||||
Redeemable convertible preferred stock, Shares Outstanding | 4,799,548 | |||||
Redeemable convertible preferred stock, Aggregate Liquidation Preference | $ 22,078 | |||||
Redeemable convertible preferred stock, Net Carrying Value | $ 22,047 | |||||
Series C Redeemable Convertible Preferred Stock | ||||||
Temporary Equity [Line Items] | ||||||
Redeemable convertible preferred stock, Shares Authorized | 24,700,000 | |||||
Redeemable convertible preferred stock, Shares Issued | 5,862,697 | |||||
Redeemable convertible preferred stock, Shares Outstanding | 5,862,697 | |||||
Redeemable convertible preferred stock, Aggregate Liquidation Preference | $ 47,206 | |||||
Redeemable convertible preferred stock, Net Carrying Value | $ 47,096 |
Redeemable Convertible Prefer_5
Redeemable Convertible Preferred Stock - Additional Information (Details) - shares | Jun. 20, 2019 | Jun. 30, 2019 |
Temporary Equity [Line Items] | ||
Reverse stock split of common stock, description | four-for-one | |
IPO | ||
Temporary Equity [Line Items] | ||
Redeemable convertible preferred stock, terms of conversion | Immediately prior to the closing of the Company’s IPO, all shares of the Company’s then-outstanding Redeemable Convertible Preferred Stock, as shown in the table above, automatically converted on a one-for-one basis into an aggregate of 18,474,703 shares of common stock. | |
Fair value of convertible notes, conversion of convertible securities | 18,474,703 | |
Number of fractional shares issued | 0 | |
Number of issued common shares reduced upon conversion | 39 | |
Reverse stock split of common stock, description | The Reverse Stock Split was effected on a holder-by-holder basis with no fractional shares issued, which resulted in 39 fewer shares of common stock issued as compared to the amounts shown in the above table |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 28, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unvested shares subject to repurchase rights | 548 | 548 | 262 | |||
Closing price of common stock | $ 27.15 | |||||
Weighted-average grant date fair value of options granted | $ 8.40 | $ 3.37 | $ 8.07 | $ 3.37 | ||
Unrecognized stock-based compensation of unvested options | $ 10,300 | $ 10,300 | ||||
Unrecognized stock-based compensation of unvested options, recognized over weighted-average period | 3 years 3 months 18 days | |||||
Weighted-average expected life | 5 years 11 months 26 days | 5 years 11 months 26 days | ||||
Expected volatility | 56.20% | 56.20% | ||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | ||
Share-based compensation expense | $ 1,646 | $ 414 | $ 2,255 | $ 583 | ||
Performance Awards | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Outstanding shares with performance conditions vested | 67,418 | 67,418 | ||||
Share-based compensation expense | $ 300 | |||||
Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Weighted-average expected life | 6 years 29 days | 6 years 10 months 13 days | ||||
Minimum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Weighted-average expected life | 5 years | 5 years | ||||
2011 Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Options granted | 724,940 | |||||
Common stock available for issuance | 4,563,163 | 4,563,163 | 4,647,839 | |||
Outstanding shares with performance conditions vested | 4,563,163 | 4,563,163 | 4,110,130 | |||
2011 Plan | Tranche One | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
Vesting rate at the end of one year | 25.00% | |||||
2011 Plan | ISO | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of exercise price granted to stockholder | 10.00% | |||||
2011 Plan | Options Granted as Merit Awards | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
2011 Plan | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options granted in years | 10 years | |||||
2011 Plan | Minimum | ISO | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of exercise price options granted | 110.00% | |||||
2019 Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options granted | 0 | |||||
Common stock available for issuance | 2,726,681 | 2,726,681 | ||||
2019 Plan | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options granted in years | 10 years | |||||
2019 Plan | Minimum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of exercise price options granted | 100.00% | |||||
2019 Employee Stock Purchase Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock shares reserved for issuance | 250,000 | 250,000 | ||||
Percentage of purchase price of common stock | 85.00% | |||||
Common stock shares purchased | 0 | |||||
Weighted-average expected life | 4 months 13 days | |||||
Expected volatility | 59.10% | |||||
Risk-free interest rate | 2.10% | |||||
Dividend yield | 0.00% | |||||
2019 Employee Stock Purchase Plan | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of earnings for purchase of common stock at discounted price | 15.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - 2011 Plan - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding Options, Number of Shares, Beginning Balance | 4,110,130 | |
Outstanding Options, Number of Shares, granted | 724,940 | |
Outstanding Options, Number of Shares, exercised | (244,189) | |
Outstanding Options, Number of Shares, cancelled | (27,718) | |
Outstanding Options, Number of Shares, Ending Balance | 4,563,163 | 4,110,130 |
Outstanding Options, Weighted Average Exercise Price, Beginning Balance | $ 3.16 | |
Outstanding Options, Weighted Average Exercise Price, granted | 11.19 | |
Outstanding Options, Weighted Average Exercise Price, exercised | 2.51 | |
Outstanding Options, Weighted Average Exercise Price, cancelled | 6.91 | |
Outstanding Options, Weighted Average Exercise Price, Ending Balance | $ 4.44 | $ 3.16 |
Outstanding Options, Weighted-Average Remaining Contractual Term (in years) | 7 years 7 days | 6 years 11 months 8 days |
Outstanding Options, Aggregate Intrinsic Value | $ 103,632 | $ 24,716 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Weighted-average Assumptions Used in Determination of Fair Value of Stock Options (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years 11 months 26 days | 5 years 11 months 26 days | ||
Volatility | 56.20% | 56.20% | ||
Volatility, minimum | 56.89% | 56.20% | ||
Volatility, maximum | 57.27% | 57.27% | ||
Risk-free interest rate, minimum | 2.31% | 2.84% | 2.31% | 2.84% |
Risk-free interest rate, maximum | 2.36% | 2.88% | 2.52% | 2.88% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years | 5 years | ||
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years 29 days | 6 years 10 months 13 days |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Stock-based Compensation Expense by Function (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,646 | $ 414 | $ 2,255 | $ 583 |
Cost of revenues | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | 105 | 39 | 190 | 63 |
Research and development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | 193 | 103 | 357 | 167 |
Selling, general, and administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,348 | $ 272 | $ 1,708 | $ 353 |
Redeemable Convertible Prefer_6
Redeemable Convertible Preferred Stock Warrants - Additional Information (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | |||
Jun. 30, 2017$ / sharesshares | Sep. 30, 2014$ / sharesshares | Jun. 30, 2019USD ($)shares | Jun. 20, 2019shares | Dec. 31, 2018USD ($) | |
Convertible Preferred Stock Warrants [Line Items] | |||||
Warrant issued to purchase stock | 188,643 | ||||
Fair values of convertible preferred stock warrants | $ | $ 0.7 | ||||
Fair value transferred to additional paid-in capital | $ | $ 2.1 | ||||
Common stock warrant exercised | 22,489 | ||||
Common stock issued for exercise of warrant | 19,069 | ||||
Common Stock | |||||
Convertible Preferred Stock Warrants [Line Items] | |||||
Warrant outstanding | 62,096 | ||||
Series B Redeemable Convertible Preferred Stock | |||||
Convertible Preferred Stock Warrants [Line Items] | |||||
Estimated fair value of convertible preferred stock | 100,000 | ||||
Contractual term | 10 years | ||||
Series B Redeemable Convertible Preferred Stock | Term Loan | |||||
Convertible Preferred Stock Warrants [Line Items] | |||||
Warrant issued to purchase stock | 22,489 | ||||
Warrant exercise price per share | $ / shares | $ 4.60 | ||||
Series B Redeemable Convertible Preferred Stock | Risk-free Interest Rate | |||||
Convertible Preferred Stock Warrants [Line Items] | |||||
Warrants and rights outstanding, measurement input | 2.52 | ||||
Series B Redeemable Convertible Preferred Stock | Volatility | |||||
Convertible Preferred Stock Warrants [Line Items] | |||||
Warrants and rights outstanding, measurement input | 66.53 | ||||
Series B Redeemable Convertible Preferred Stock | Dividend Yield | |||||
Convertible Preferred Stock Warrants [Line Items] | |||||
Warrants and rights outstanding, measurement input | 0 | ||||
Series C Redeemable Convertible Preferred Stock | Revolving Loan | |||||
Convertible Preferred Stock Warrants [Line Items] | |||||
Warrant issued to purchase stock | 62,096 | ||||
Warrant exercise price per share | $ / shares | $ 8.052 | ||||
Estimated fair value of convertible preferred stock | 100,000 | ||||
Contractual term | 7 years | ||||
Series C Redeemable Convertible Preferred Stock | Risk-free Interest Rate | Revolving Loan | |||||
Convertible Preferred Stock Warrants [Line Items] | |||||
Warrants and rights outstanding, measurement input | 1.97 | ||||
Series C Redeemable Convertible Preferred Stock | Volatility | Revolving Loan | |||||
Convertible Preferred Stock Warrants [Line Items] | |||||
Warrants and rights outstanding, measurement input | 64.33 | ||||
Series C Redeemable Convertible Preferred Stock | Dividend Yield | Revolving Loan | |||||
Convertible Preferred Stock Warrants [Line Items] | |||||
Warrants and rights outstanding, measurement input | 0 |
Common Stock Warrants - Additio
Common Stock Warrants - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 30, 2019 | Jun. 20, 2019 | Mar. 22, 2019 | Aug. 31, 2011 |
Common Stock Warrants [Line Items] | ||||
Warrant issued to purchase stock | 188,643 | |||
TriplePoint Capital LLC | ||||
Common Stock Warrants [Line Items] | ||||
Estimated fair value of warrants | $ 0.6 | |||
Series A Redeemable Convertible Preferred Stock | ||||
Common Stock Warrants [Line Items] | ||||
Estimated fair value of warrants | $ 0.1 | |||
Common Stock | ||||
Common Stock Warrants [Line Items] | ||||
Warrants outstanding | 62,096 | |||
Common Stock | TriplePoint Capital LLC | ||||
Common Stock Warrants [Line Items] | ||||
Warrant issued to purchase stock | 65,502 | |||
Warrant exercise price per share | $ 9.16 | |||
Common Stock | Series A Redeemable Convertible Preferred Stock | ||||
Common Stock Warrants [Line Items] | ||||
Warrant issued to purchase stock | 188,643 | |||
Warrant exercise price per share | $ 0.04 | |||
Warrants outstanding | 0 |
Net Loss per Share Attributab_3
Net Loss per Share Attributable to Common Stockholders - Schedule of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net loss attributable to common stockholders | $ (5,869) | $ (7,315) | $ (11,554) | $ (12,690) |
Denominator: | ||||
Weighted-average shares outstanding | 6,597,811 | 3,064,123 | 4,854,125 | 3,062,435 |
Less weighted-average shares subject to repurchase | (804) | (997) | (800) | (1,366) |
Weighted-average shares outstanding used in computing net loss per share attributable to common stockholders — basic and diluted | 6,597,007 | 3,063,126 | 4,853,325 | 3,061,069 |
Net loss per share, basic and diluted | $ (0.89) | $ (2.39) | $ (2.38) | $ (4.15) |
Net Loss per Share Attributab_4
Net Loss per Share Attributable to Common Stockholders - Schedule of Dilutive Securities Excluded from Computation of Diluted Net Loss per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from computation of diluted net loss per share | 4,753,201 | 22,118,369 | 4,753,201 | 22,118,369 |
Redeemable Convertible Preferred Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from computation of diluted net loss per share | 0 | 16,806,746 | 0 | 16,806,746 |
Conversion of Convertible Notes | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from computation of diluted net loss per share | 0 | 1,639,716 | 0 | 1,639,716 |
Common Stock Warrant | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from computation of diluted net loss per share | 127,598 | 188,643 | 127,598 | 188,643 |
Series B Preferred Stock Warrant | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from computation of diluted net loss per share | 0 | 22,489 | 0 | 22,489 |
Series C Preferred Stock Warrant | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from computation of diluted net loss per share | 0 | 62,096 | 0 | 62,096 |
Options To Purchase Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from computation of diluted net loss per share | 4,563,163 | 3,398,484 | 4,563,163 | 3,398,484 |
Unvested Early Exercised Common Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from computation of diluted net loss per share | 548 | 195 | 548 | 195 |
Employee Stock Purchase Plan | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from computation of diluted net loss per share | 61,892 | 0 | 61,892 | 0 |
Net Loss per Share Attributab_5
Net Loss per Share Attributable to Common Stockholders - Schedule of Dilutive Securities Excluded from Computation of Diluted Net Loss per Share (Parenthetical) (Details) - Conversion of Convertible Notes $ in Millions | Jun. 30, 2018USD ($) |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Debt instrument, face value | $ 12.2 |
Accrued but unpaid interest | $ 1 |