Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 25, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-08568 | ||
Entity Registrant Name | Teligent, Inc. | ||
Entity Central Index Key | 0000352998 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 01-0355758 | ||
Entity Address, Address Line One | 105 Lincoln Ave. | ||
Entity Address, City or Town | Buena | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 08310 | ||
City Area Code | 856 | ||
Local Phone Number | 697-1441 | ||
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | ||
Trading Symbol | TLGT | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 27.4 | ||
Entity Common Stock, Shares Outstanding | 53,899,495 | ||
Documents Incorporated by Reference | The following documents (or parts thereof) are incorporated by reference into the following parts of this Form 10-K: Certain information required in Part III of this Annual Report on Form 10-K is incorporated from the Registrant’s Proxy Statement for the Annual Meeting of Stockholders to be held on May 19, 2020. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 15,508 | $ 9,705 |
Restricted cash | 206 | 2,892 |
Accounts receivable, net of allowance for doubtful accounts of $2,208 and $2,636, as of December 31, 2019 and December 31, 2018, respectively | 20,374 | 16,120 |
Inventories | 23,031 | 16,296 |
Prepaid expenses and other receivables | 2,525 | 3,373 |
Total current assets | 61,644 | 48,386 |
Property, plant and equipment, net | 96,349 | 91,775 |
Intangible assets, net | 44,645 | 48,375 |
Goodwill | 491 | 470 |
Other | 3,776 | 1,886 |
Total assets | 206,905 | 190,892 |
Current liabilities: | ||
Accounts payable | 6,875 | 5,933 |
Accrued expenses | 9,285 | 9,842 |
Deferred income, current | 0 | 2,426 |
Convertible 3.75% Senior Notes, net of debt discount and debt issuance costs (face of $15,702 as of December 31, 2018 ) | 0 | 14,411 |
Capital lease obligation, current | 446 | |
Total current liabilities | 16,606 | 32,612 |
Convertible 4.75% Senior Notes, net of debt discount and debt issuance costs (face of $66,090 and $75,090 as of December 31, 2019 and December 31, 2018, respectively) | 53,093 | 56,909 |
Revolver (face of $25,000 and $15,000 as of December 31, 2019 and December 31, 2018, respectively) | 25,000 | 15,000 |
Series B Senior Convertible Notes, net of debt discount and debt issuance costs (face of $34,405 as of December 31, 2019) | 21,824 | 0 |
2023 Term Loan, net of debt issuance costs (face of $88,464 and $70,000 as of December 31, 2019 and December 31, 2018, respectively) | 86,452 | 67,662 |
Derivative liability | 6,776 | 0 |
Deferred tax liability | 205 | 215 |
Other long term liabilities | 2,256 | 73 |
Total liabilities | 212,212 | 172,471 |
Commitments and Contingencies | ||
Stockholders’ (deficit)/equity: | ||
Common stock, $0.01 par value, 100,000,000 shares authorized; 53,850,427 and 53,774,221 shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively | 558 | 557 |
Additional paid-in capital | 117,967 | 116,864 |
Accumulated deficit | (121,474) | (96,350) |
Accumulated other comprehensive loss, net of taxes | (2,358) | (2,650) |
Total stockholders’ (deficit)/equity | (5,307) | 18,421 |
Total liabilities and stockholders’ (deficit)/equity | $ 206,905 | $ 190,892 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts | $ 2,208,000 | $ 2,636,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 53,850,427 | 53,774,221 |
Common stock, shares outstanding (in shares) | 53,850,427 | 53,774,221 |
Convertible Notes Payable | ||
Face amount of the Notes | $ 213,959,000 | $ 160,090,000 |
Convertible debt | ||
Stated interest rate | 3.75% | 3.75% |
Senior Notes, due December 2019 | Convertible Notes Payable | ||
Stated interest rate | 3.75% | |
Face amount of the Notes | $ 0 | $ 15,702,000 |
Senior Notes, due December 2019 | Convertible debt | ||
Stated interest rate | 4.75% | 4.75% |
Face amount of the Notes | $ 66,090,000 | $ 75,090,000 |
Series B Senior Unsecured Convertible Notes | Convertible Notes Payable | ||
Face amount of the Notes | 34,405,000 | 0 |
Term Loan | Initial Term Loan | ||
Face amount of the Notes | 88,464,000 | 70,000,000 |
Convertible debt | Series B Senior Unsecured Convertible Notes | ||
Face amount of the Notes | 34,405,000 | |
Revolving Credit Facility | Line of Credit | ||
Face amount of the Notes | $ 25,000,000 | $ 15,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Components of Revenue: | ||
Revenue, net | $ 65,896 | $ 65,865 |
Costs and Expenses: | ||
Cost of revenues | 42,373 | 43,480 |
Selling, general and administrative expenses | 20,785 | 23,408 |
Product development and research expenses | 10,758 | 14,076 |
Total costs and expenses | 73,916 | 80,964 |
Operating loss | (8,020) | (15,099) |
Other Expense: | ||
Foreign currency exchange loss | (1,523) | (3,371) |
Debt partial extinguishment of 2019 Notes | (185) | (4,235) |
Debt extinguishment of Prior Term Loan | 0 | (1,315) |
Interest and other expense, net | (21,154) | (12,298) |
Change in the fair value of derivative liability | 6,769 | 0 |
Loss on debt restructuring | (920) | 0 |
Loss before income tax expense | (25,033) | (36,318) |
Income tax expense / (benefit) | 91 | (62) |
Net loss attributable to common stockholders | $ (25,124) | $ (36,256) |
Basic and diluted loss per share (in dollars per share) | $ (0.47) | $ (0.68) |
Weighted average shares of common stock outstanding: | ||
Basic and diluted (in shares) | 53,839,139 | 53,592,930 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (25,124) | $ (36,256) |
Other comprehensive loss, net of tax | ||
Foreign currency translation adjustment | 292 | (631) |
Other comprehensive loss | 292 | (631) |
Comprehensive loss | $ (24,832) | $ (36,887) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (25,124) | $ (36,256) |
Reconciliation of net loss to net cash provided by (used in) operating activities: | ||
Depreciation of fixed assets | 3,688 | 2,579 |
Gain on sale of assets | 0 | (20) |
Provision for write down of inventory | (459) | 1,363 |
Provision for bad debt | (428) | 452 |
Issuance of stock to consultant | 0 | 102 |
Stock based compensation | 1,076 | 1,970 |
Amortization of debt costs and debt discount | 6,514 | 9,226 |
Amortization of intangibles | 3,008 | 3,096 |
Non cash lease expense | 408 | 0 |
Deferred income taxes | (22) | 73 |
Foreign currency exchange loss (gain) | 1,523 | 3,371 |
Partial extinguishment of 3.75% senior notes | 185 | 4,235 |
Non cash interest expense | 8,464 | 0 |
Extinguishment of prior term loan | 0 | 1,315 |
Loss on impairment of intangible assets | 0 | 1,924 |
Loss on debt restructuring | 920 | 0 |
Change in the fair value of derivative liability | (6,769) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,655) | (4,047) |
Inventories | (6,145) | (1,877) |
Prepaid expenses and other current receivables | 803 | 224 |
Other assets | 12 | (26) |
Operating liabilities | (369) | 0 |
Accounts payable and accrued expenses | 377 | (3,405) |
Deferred income | (2,426) | 2,426 |
Net cash used in operating activities | (18,419) | (13,275) |
Cash flows from investing activities: | ||
Capital expenditures | (8,203) | (25,332) |
Disposal of fixed assets | 0 | 38 |
Net cash used in investing activities | (8,203) | (25,294) |
Cash flows from financing activities: | ||
Proceeds from 2023 Series B senior notes | 17,750 | 0 |
Proceeds from 2023 Series B bifurcated conversion option | 11,525 | 0 |
Proceeds from revolver | 12,500 | 15,000 |
Repayment of revolver | (2,500) | 0 |
Repayment of prior term loan, net | 0 | (25,550) |
Repayment of 3.75% senior notes | (13,022) | 0 |
Debt issuance costs | (3,107) | (6,239) |
Repurchase of 3.75% senior notes | (2,686) | (53,123) |
Proceeds from exercise of common stock options and warrants | 0 | 251 |
Principal payments on capital lease obligations | (11) | (6) |
Net cash provided by financing activities | 30,449 | 25,333 |
Effect of exchange rate on cash, cash equivalents and restricted cash | (714) | (860) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,827 | (13,236) |
Cash, cash equivalents and restricted cash at beginning of year | 13,069 | 27,165 |
Cash, cash equivalents and restricted cash at end of year | 16,182 | 13,069 |
Supplemental Cash flow information: | ||
Cash payments for interest | 5,633 | 7,340 |
Cash payments for income taxes | 150 | 89 |
Non cash investing and financing transactions: | ||
Acquisition of capital expenditures in accounts payable and accrued expenses | 46 | 568 |
Capitalized stock compensation in capital expenditures | 28 | 96 |
Issuance of stock to consultant | 0 | 102 |
2021 Term Loan | ||
Cash flows from financing activities: | ||
Proceeds from term loan | 0 | 25,000 |
2023 Term Loan | ||
Cash flows from financing activities: | ||
Proceeds from term loan | $ 10,000 | $ 70,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Balance at Dec. 31, 2017 | $ 44,753 | $ 554 | $ 106,312 | $ (60,094) | $ (2,019) |
Balance (in shares) at Dec. 31, 2017 | 53,400,281 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of stock to consultant | 102 | 102 | |||
Issuance of stock to consultant (in shares) | 25,000 | ||||
Stock based compensation expense | 2,066 | 2,066 | |||
Stock options exercised | 251 | $ 2 | 249 | ||
Stock options exercised (in shares) | 239,000 | ||||
Issuance of stock for vested restricted stock units | 0 | $ 1 | (1) | ||
Issuance of stock for vested restricted stock units (in shares) | 109,940 | ||||
Fair value of conversion feature on Convertible 4.75% Senior Notes | 18,658 | 18,658 | |||
Partial extinguishment of equity component of Convertible 3.75% Senior Notes | (10,522) | (10,522) | |||
Cumulative translation adjustment | (631) | (631) | |||
Net loss | (36,256) | (36,256) | |||
Balance at Dec. 31, 2018 | 18,421 | $ 557 | 116,864 | (96,350) | (2,650) |
Balance (in shares) at Dec. 31, 2018 | 53,774,221 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock based compensation expense | 1,104 | 1,104 | |||
Issuance of stock for vested restricted stock units | 0 | $ 1 | (1) | ||
Issuance of stock for vested restricted stock units (in shares) | 76,206 | ||||
Cumulative translation adjustment | 292 | 292 | |||
Net loss | (25,124) | ||||
Balance at Dec. 31, 2019 | $ (5,307) | $ 558 | $ 117,967 | $ (121,474) | $ (2,358) |
Balance (in shares) at Dec. 31, 2019 | 53,850,427 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - Convertible debt | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 27, 2018 |
Stated interest rate | 3.75% | 3.75% | |
Senior Notes, Due 2023 | |||
Stated interest rate | 4.75% | 4.75% |
Nature of the Business and Goin
Nature of the Business and Going Concern | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business and Going Concern | Nature of the Business and Going Concern Nature of the Business Teligent, Inc. is a Delaware corporation incorporated in 1977 and is a specialty generic pharmaceutical company. Under its own label, the Company markets and sells generic topical and branded generic and generic injectable pharmaceutical products in the United States and Canada. In the United States, the Company currently markets 38 generic topical pharmaceutical products and four branded generic pharmaceutical products. In Canada, the Company sells over 32 generic and branded generic injectable products and medical devices. Generic pharmaceutical products are bioequivalent to their brand name counterparts. The Company also provides contract manufacturing services to the pharmaceutical, over-the-counter, ("OTC"), and cosmetic markets. The Company operates its business under one segment. Our common stock has traded on the Nasdaq Global Select Market, under the trading symbol “TLGT” since October 26, 2015. Teligent also develops, manufactures, fills, and packages topical semi-solid and liquid products for branded and generic pharmaceutical customers, as well as the OTC and cosmetic markets. These products are used in a wide range of applications from cosmetics and cosmeceuticals to the prescription treatment of conditions like dermatitis, psoriasis, and eczema. Teligent received its certification of expanded facility in the fourth quarter of 2018 and continued to develop and file ANDAs with the FDA in 2019. As the Company continues to execute the expansion of its development and commercial base beyond topical generics to include injectable generics, complex generics and ophthalmic generics (what we call our “TICO strategy”), it will compete in other markets, including the ophthalmic generic pharmaceutical market, and expects to face other competitors. Going Concern ASU 205-40 – Presentation of Financial Statements – Going Concern requires management to evaluate an entity’s ability to continue as a going concern within one year after the date the financial statements are available for issuance. Specifically, management is required to evaluate whether the presence of negative conditions or events, when considered individually and in the aggregate, raise substantial doubt about an entity’s ability to continue as a going concern. Substantial doubt exists when it is probable that the entity will be unable to meet its obligations as they become due within one year after the date the financial statements are available for issuance. Management has identified the following negative conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern as of December 31, 2019: • The Company has incurred significant losses and generated negative cash flows from operations in recent years and expects to continue to incur losses and generate negative cash flow for the foreseeable future. As a result, the Company had an accumulated deficit of $121.5 million, total principal amount of outstanding borrowings of $214.0 million, and limited capital resources to fund ongoing operations at December 31, 2019. These capital resources were comprised of cash and equivalents of $15.5 million at December 31, 2019 and the generation of cash inflows from working capital. The Company’s available capital resources may not be sufficient for it to continue to meet its obligations as they become due over the next twelve months if the Company cannot improve its operating results or increase its operating cash inflows. In the event these capital resources are not sufficient, the Company may need to raise additional capital through the sale of equity or debt securities, enter into strategic business collaboration agreements with other companies, seek other funding facilities, or sell assets. However, the Company cannot provide assurances that additional capital will be available on acceptable terms or at all. Moreover, if the Company is unable to meet its obligations when they become due over the next twelve months through its available capital resources, or obtain new sources of capital when needed, the Company may have to delay expenditures, reduce the scope of its manufacturing operations, reduce or eliminate one or more of its development programs, make significant changes to its operating plan or cease its operations. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. • As disclosed in Note 17-Subsequent Events, the Company is subject to certain financial covenants as set forth in the April 6, 2020 amendments to the Senior Credit Facilities. These financial covenants include a trailing twelve months (“TTM”) Minimum Revenue covenant that is required to be met each quarterly period from March 31, 2020 through December 31, 2020, a TTM Minimum Adjusted EBITDA that is required to be met each quarterly period from March 31, 2021 through maturity, and a minimum liquidity covenant tested at all times through the term of the agreement. These amendments supersede the financial covenants included in the original and amended agreements disclosed in Note 6-Debt. In the event the Company is unable to comply with these covenants, or obtain a waiver from its lenders, the lender shall have the right, but not the obligation, to permanently reduce the commitment in whole or in part or to declare all or any portion of the outstanding balance due and payable. Furthermore, in the event that outstanding balances under the Ares Credit agreements are declared due and payable by the lender, the lenders of the 2023 Series A and Series B Unsecured Convertible Notes shall have the right, but not the obligation, to declare all of the outstanding balance due and payable as well. If the Company is unable to raise additional capital to meet these obligations, the Company may have to seek other strategic alternatives, including ceasing its operations. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. • In June 2019, the Company received a de-listing notice from the NASDAQ due to its share price being below $1.00 for 30 consecutive trading days. The notice specified that the Company's share price must trade above $1.00 per share for ten consecutive trading days prior to December 2, 2019 in order to prevent its common stock from being de-listed. For the 180 days preceding December 2, 2019 the Company's share price remained below $1.00. The Company requested a second 180-day extension. NASDAQ denied its request and the Company chose to file for an appeal. The Company was granted a hearing date for the end of January 2020. Subsequent to the appeal hearing, NASDAQ set a deadline of April 17, 2020 for the Company to regain compliance with NASDAQ’s continuing listing requirements. In early March 2020 the COVID-19 global pandemic triggered a significant decline in global capital markets, including NASDAQ. In light of this significant decline, the Company requested NASDAQ to reconsider the April 17, 2020 deadline. NASDAQ agreed to the Company’s request and set a new deadline to regain compliance by June 1, 2020. In January 2020, the Company’s Board of Directors and shareholders approved a reverse stock split in the range of any whole number between five (5) and ten (10) to one (1). While the Company believes that the reverse stock split will ultimately increase its share price above $1.00 for the required ten consecutive trading days, it can provide no assurances that its shares will trade above $1.00 per share for the required time period. A de-listing from the NASDAQ would be a “Fundamental Change” under the Company’s 2023 Series A and Series B Unsecured Convertible Notes which triggers a right by the holders to require the Company repurchase the Convertible Notes. In such an event, the Company would need to seek financing to repurchase the Convertible Notes and there is no guarantee that such financing would be available or on terms acceptable to the Company. If noteholders demanded a repurchase of the notes and the Company could not finance the repurchase, it would be in default under the Indentures governing the Convertible Notes, and in that event the lenders of the Ares Credit agreements would have the right, but not the obligation, to declare all of the outstanding balance under those agreements due and payable as well. Therefore, in the event of the Company’s shares are de-listed from the NASDAQ, the Company would likely have to seek some combination of waivers from its lenders and noteholders and seek new capital through the sale of equity or debt securities. If the Company is unable to obtain such waivers or raise new capital to meet these obligations if they become due, it may have to seek other strategic alternatives, including ceasing operations. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying audited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company consolidates the following entities: Igen, Inc., Teligent Pharma. Inc., Teligent Luxembourg S.à.r.l., Teligent OÜ and Teligent Canada Inc, in addition to the following inactive entities: Microburst Energy, Inc., Blood Cells, Inc. and Flavorsome, Ltd. All inter-company accounts and transactions have been eliminated. Certain amounts in the prior periods presented have been reclassified to conform to the current period financial statement presentation. These reclassifications have no effect on previously reported net income. Use of Estimates The preparation of financial statements in conformity with U.S. 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the valuation of the derivative liability associated with certain Notes, sales returns and allowances, allowances for excess and obsolete inventories, allowances for doubtful accounts, provisions for income taxes and related valuation allowances, stock based compensation, the assessment for the impairment of long-lived assets (including intangibles, goodwill and property, plant and equipment), property, plant and equipment and legal accruals. The Company bases its estimates and assumptions on historical experience, known or expected trends and various other assumptions that it believes to be reasonable. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. Cash and cash equivalents include cash on hand and bank demand deposits used in the Company’s cash management program. The Company has restricted cash, consisting of escrow accounts and letter of credits, which are included within other long-term assets on the Consolidated Balance Sheet. In addition, pursuant to the New Credit Facilities agreement, proceeds from the 2023 Term Loan were deposited in a blocked bank account and restricted for use for the sole purpose of repurchasing the outstanding 2019 Notes. During the first quarter of 2019, the Company used a total of $2.7 million of restricted cash to repurchase a portion of the remaining 2019 Notes. The remaining 2019 Notes were settled on their maturity (Note 6). The Company presents restricted cash with cash and cash equivalents in the Consolidated Statement of Cash Flows. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total amounts in the Consolidated Statement of Cash Flows as follows (in thousands): December 31, 2019 December 31, 2018 Cash and cash equivalents $ 15,508 $ 9,705 Restricted cash 206 2,892 Restricted cash in other assets 468 472 Cash, cash equivalents and restricted cash in the statement of cash flows $ 16,182 $ 13,069 Inventories Inventories are valued at the lower of cost, using the first-in, first-out (“FIFO”) method, or market. The Company records an inventory reserve for losses associated with dated, expired, excess and obsolete items. This reserve is based on management’s current knowledge with respect to inventory levels, planned production, and extension capabilities of materials on hand. Management does not believe the Company’s inventory is subject to significant risk of obsolescence in the near term. Property, Plant and Equipment Depreciation and amortization of property, plant and equipment is provided for under the straight-line method over the assets’ estimated useful lives as follows: Descriptions Useful Lives Buildings and improvements 10-40 years Machinery and equipment 5-15 years Computer hardware and software 3-5 years Furniture and fixtures 5 years Leasehold improvements are amortized over the shorter of the estimated useful life or lease term. Repair and maintenance costs are charged to operations as incurred while major improvements are capitalized. Construction in progress ("CIP") costs are depreciated based on their respective asset class when they are put into service. When assets are retired or disposed, the historical cost and accumulated depreciation thereon are removed with any gains or losses included in operating results. Intangible Assets Definite-lived intangible assets are stated at cost less accumulated amortization. Amortization of definite-lived intangible assets are computed on a straight-line basis over the assets’ estimated useful life, generally for periods ranging from 10 to 15 years. The Company continually evaluates the reasonableness of the useful lives of these assets. Indefinite-lived intangible assets are not amortized, but instead are tested at least annually for impairment. Costs to renew or extend the term of a recognized intangible asset are expensed as incurred. An impairment is recognized in the amount, if any, by which the carrying amount of such assets exceeds its respective fair value and would be recorded in selling, general and administrative expense on the Consolidated Statements of Operations. In-Process Research and Development Amounts allocated to in-process research and development (“IPR&D”) in connection with a business combination are recorded at fair value and are considered indefinite-lived intangible assets subject to annual impairment testing. As products in development are approved for sale, the associate balance will be allocated to product rights and amortized over their estimated useful lives. These valuations reflect, among other things, the impact of changes to the development programs, the projected development and regulatory time frames and the current competitive environment. The IPR&D are solely those assets acquired in the 2015 business combination of Alveda. The Company performed its annual impairment test and does not believe an impairment existed as of December 31, 2019. Long-Lived Assets In accordance with the provisions of ASC 360-10-55, the Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In performing such review for recoverability, the Company compares expected future cash flows of assets to the carrying value of the long-lived assets and related identifiable intangibles. If the expected future cash flows (undiscounted) are less than the carrying amount of such assets, the Company recognizes an impairment loss for the difference between the carrying value of the assets and their estimated fair value, with fair values being determined using projected discounted cash flows at the lowest level of cash flows identifiable in relation to the assets being reviewed. Product Acquisition Costs Product acquisition costs represent ANDAs and NDAs acquired in asset acquisitions, which are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The Company expects to amortize these costs over a 10-year useful life commencing when the product is sold. At December 31, 2019, product acquisition costs included assets acquired from AstraZeneca, Valeant and Sebela. The Company performed its annual impairment test and does not believe an impairment existed as of December 31, 2019. Goodwill Goodwill, which represents the excess of purchase price over the fair value of the net assets acquired, is carried at cost. Goodwill is tested for impairment on an annual basis on October 1 of each fiscal year or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company early adopted ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment” in the fourth quarter of 2019. This amendment eliminates Step Two of the goodwill impairment test. Under the amendments in this update, an entity has the option to perform a qualitative assessment to determine if the quantitative impairment test is required. If the quantitative impairment test is required, the Company would perform the annual goodwill impairment test by comparing the carrying value of its reporting unit to its fair value. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value would be recorded. In accordance with the amendment, the Company performed the qualitative impairment test on October 1, 2019 and concluded its Goodwill was not impaired. The carrying value of goodwill at December 31, 2019 was $0.5 million. We believe it is unlikely that there will be a material change in the future estimates or assumptions used to test for impairment losses on goodwill. However, if actual results were not consistent with our estimates or assumptions, we could be exposed to an impairment charge. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, trade receivables, restricted cash, accounts payable and other accrued liabilities at December 31, 2019 approximate their fair value for all periods presented. The Company measures fair value in accordance with ASC 820-10, “Fair Value Measurements and Disclosures”. ASC 820-10 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820-10 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As of December 31, 2019, based on level 2 inputs, the fair value of our 2023 Notes was approximately$23.0 million compared to their carrying value of $53.1 million and the fair value of our 2023 Series B Notes was approximately $28.9 million including the derivative liability of $6.8 million as mentioned below. As of December 31, 2019, based on level 3 inputs, the fair value of the derivative liability associated with our 2023 Series B Notes was $6.8 million. (Note 7). Debt Issuance Costs Expenses related to debt financing activities are capitalized and amortized on an effective interest method, over the term of the loan and are to be netted against the carrying value of the financial liability, as required by ASU 2015-3. This standard aligns the treatment of debt issuance costs and debt discounts in that both reduce the carrying value of the liability. Amortization of debt issuance costs are recorded as interest expense on the Consolidated Statement of Operations. Revenue Recognition The Company recognizes revenue when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The Company’s revenue is recorded net of accruals for estimated chargebacks, rebates, cash discounts, other allowances, and returns. The Company derives its revenues from three types of transactions: sales of its own pharmaceutical products (Company product sales), sales of manufactured product for its customers (contract manufacturing sales), and research and product development services performed for third parties. Due to differences in the substance of these transaction types, the transactions require, and the Company utilizes, different revenue recognition policies for each. Taxes collected from customers and remitted to government authorities and that are related to the sales of the Company’s products are excluded from revenues. Adoption of ASC Topic 606, "Revenue from Contracts with Customers” In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” The standard, including subsequently issued amendments, replaces most existing revenue recognition guidance in U.S. GAAP. The key focus of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company performed a comprehensive review of its existing revenue arrangements as of January 1, 2018 following the aforementioned five-step model. Based on the Company's analysis, there were no changes identified that impacted the amount or timing of revenues recognized under the new guidance as compared to the previous guidance. Additionally, the Company's analysis indicated that there were no changes to how costs to obtain and fulfill our customer contracts would be recognized under the new guidance as compared to the previous guidance. The impact of the adoption of this standard on the Company's Consolidated Balance Sheet, Consolidated Statement of Operations, and Consolidated Statement of Cash Flows was not material. The adoption of the new guidance impacted the way the Company analyzes, documents, and discloses revenue recognition under customer contracts beginning on January 1, 2018 and resulted in additional disclosures in the Company's financial statements. Company Product Sales Revenue from Company product sales is recognized upon transfer of control of a product to a customer at a point in time, generally as the Company's products are sold on an FOB destination basis and because inventory risk and risk of ownership passes to the customer upon delivery. Company product sales are recorded net of accruals for estimated chargebacks, rebates, cash discounts, other allowances, and returns. Contract Manufacturing Sales: The Company recognizes revenue for contract manufacturing sales over-time, as milestones are achieved. Shipments are made in accordance with sales commitments and related sales orders entered into with customers either verbally or in written form. Contract manufacturing sales are recognized net of accruals for cash discounts and returns which are established at the time of sale, and are included in Revenue, net in the Company's Consolidated Statement of Operations. Research and Development Income: The Company establishes agreed upon product development agreements with its customers to perform product development services. Revenues are recognized in accordance with the agreement upon the completion of the phases of development and when the Company has no future performance obligations relating to that phase of development. Other types of revenue include royalty or licensing revenue, which would be recognized over time, or at a point in time, based upon the contractual term upon completion of the earnings process. Judgments are required to evaluate contingencies such as potential variances in schedule and the costs, the impact of change orders, liability claims, contract disputes and achievement of contractual performance standards. Revenue and Provision for Sales Returns and Allowances As is customary in the pharmaceutical industry, the Company’s product sales are subject to a variety of deductions including chargebacks, rebates, cash discounts, other allowances, and returns. Product sales are recorded net of accruals for returns and allowances ("SRA"), which are established at the time of sale. The Company analyzes the adequacy of its accruals for returns and allowances quarterly. Amounts accrued for sales deductions are adjusted when trends or significant events indicate that an adjustment is appropriate. Accruals are also adjusted to reflect actual results. These provisions are estimates based on historical payment experience, historical relationship to revenues, estimated customer inventory levels and current contract sales terms with direct and indirect customers. The Company uses a variety of methods to assess the adequacy of its returns and allowances reserves to ensure that its financial statements are fairly stated. These include periodic reviews of customer inventory data, customer contract programs, subsequent actual payment experience, and product pricing trends to analyze and validate the return and allowances reserves. Chargebacks are one of the Company's most significant estimates for recognition of product sales. A chargeback represents an amount payable in the future to a wholesaler for the difference between the invoice price paid to the Company by its wholesale customer for a particular product and the negotiated contract price that the wholesaler’s customer pays for that product. The Company’s chargeback provision and related reserve varies with changes in product mix, changes in customer pricing and changes to estimated wholesaler inventories. The provision for chargebacks also estimates the expected wholesaler sell-through levels to indirect customers at contract prices. The Company validates the chargeback accrual quarterly through a review of the inventory reports obtained from its largest wholesale customers. This customer inventory information is used to establish the estimated liability for future chargeback claims based on historical chargeback and contract rates. These large wholesalers represent a majority of the Company’s chargeback payments. The Company continually monitors current pricing trends and wholesaler inventory levels to ensure the liability for future chargebacks is fairly stated. Rebates are used for various discounts and rebates provided to customers. The Company reviews the percentage of products sold through these programs utilizing chargeback data and applies the appropriate program percentages to calculate the rebate accrual. Rebate invoices and/or payments may be received monthly, quarterly or annually and reviewed against the accruals. Other items that could be included in accrued rebates represent price protection fees, shelf stock adjustments (SSAs), or other various amounts that would serve as one-time discounts on specific products. Net revenues and accounts receivable balances in the Company’s consolidated financial statements are presented net of SRA estimates. Certain SRA balances are included in accounts payable and accrued expenses. Accounts receivable are presented net of SRA balances of $30.5 million and $18.1 million at December 31, 2019 and 2018, respectively. The allowance for doubtful accounts was $2.2 million and $2.6 million at December 31, 2019 and 2018, respectively. These balances are primarily related to one specific customer in the amount of $1.7 million. Additionally, the Company markets and distributes four products under its own label in the U.S., where in accordance with an agreement entered into in December of 2011, the Company is required to pay a royalty calculated based on net sales to one of its pharmaceutical partners. The royalty is calculated based on contracted terms of 40% of net sales for the four products, which is to be paid quarterly to its partner. Accounts payable and accrued expenses include $0.4 million and $0.2 million at December 31, 2019 and 2018, respectively, related to these royalties. Royalty expense of $1.4 million and $2.2 million was included in cost of goods sold for the years ended December 31, 2019 and 2018 respectively. The Company includes significant estimates to arrive at the respective net product sales for wholesaler chargebacks, Medicaid and Medicare rebates, allowances and other pricing and promotional programs. Concentration of Risk Financial instruments, which subject the Company to concentration of credit risk, consist primarily of cash equivalents and trade receivables. The Company maintains its cash in accounts with quality financial institutions. Although the Company currently believes that the financial institutions with which the Company does business will be able to fulfill their commitments to us, there is no assurance that those institutions will be able to continue to do so. Major customers of the Company are defined as those constituting greater than 10% of our total revenue. In 2019, we had sales to two customers which individually accounted for more than 10% of our total revenue. These customers had sales of $17.6 million and $9.6 million respectively, which represented 41% of total revenues in the aggregate. Accounts receivable related to these major customers comprised of 25% and 6% respectively, and represented 31% of all accounts receivable as of December 31, 2019. In 2018, we had sales to three customers which individually accounted for more than 10% of our total revenue. These customers had sales of $21.2 million, $7.3 million and $6.9 million, respectively, and represented 54% of total revenues in the aggregate. Accounts receivable related to these major customers comprised of 30%, 19% and 19%, respectively, and represented 68% of all accounts receivable as of December 31, 2018. Diflorasone Diacetate Ointment USP 0.05% accounted for 15% of the Company's total revenues in 2019. There was no product which individually accounted for more than 10% of the total revenues in 2018. For the year ended December 31, 2019, domestic net revenues were $48.4 million and foreign net revenues were $17.5 million. As of December 31, 2019, domestic assets were $154.3 million and foreign assets were $52.6 million. For the year ended December 31, 2018, domestic net revenues were $45.6 million and foreign net revenues were $20.2 million. As of December 31, 2018, domestic assets were $132.7 million and foreign assets were $58.2 million. While the company purchases raw materials to manufacture certain products, it also utilizes CMO's to purchase finished products. The Company currently purchases from numerous sources which therefore reduces the risk of delays or difficulties in obtaining materials and/or products. Acquisitions The Company accounts for acquired businesses using the acquisition method of accounting, which requires with limited exceptions, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date. Transaction costs are expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded as goodwill. When net assets that do not constitute a business are acquired, no goodwill is recognized. Contingent consideration, if any, is included as part of the acquisition cost and is recognized at fair value as of the acquisition date. Any liability resulting from contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved. These changes in fair value are recognized in earnings. Accounts Receivable and Allowance for Doubtful Accounts The Company extends credit to wholesaler and distributor customers and national retail chain customers, based upon credit evaluations, in the normal course of business, primarily with 60 to 90-day terms. The Company maintains customer-related accruals and allowances that consist primarily of chargebacks, rebates, sales returns, shelf stock allowances, administrative fees and other incentive programs. Some of these adjustments relate specifically to the generic prescription pharmaceutical business. Typically, the aggregate gross-to-net adjustments related to these customers can exceed 70% of the gross sales through this distribution channel. Certain of these accruals and allowances are recorded in the balance sheet as current liabilities and others are recorded as a reduction to accounts receivable. The Company extends credit to its contract services customers based upon credit evaluations in the normal course of business, primarily with 30-day terms. The Company does not require collateral from its customers. Bad debt provisions are provided for on the allowance method based on historical experience and management’s evaluation of outstanding accounts receivable. The Company reviews the allowance for doubtful accounts regularly, and past due balances are reviewed individually for collectability. The Company charges off uncollectible receivables against the allowance when the likelihood of collection is remote. Foreign Currency Translation The net assets of international subsidiaries where the local currencies have been determined to be the functional currencies are translated into U.S. dollars using current exchange rates. The U.S. dollar effects that arise from translating the net assets of these subsidiaries at changing rates are recorded in the foreign currency translation account, which is included in accumulated other comprehensive income (loss) (AOCI) and reflected as a separate component of equity. For those subsidiaries where the U.S. dollar has been determined to be the functional currency, non-monetary foreign currency assets and liabilities are translated using historical rates, while monetary assets and liabilities are translated at current rates, with the U.S. dollar effects of rate changes included in Other (income) expense, net. Foreign exchange loss of $1.5 million was recorded for the year ended December 31, 2019, primarily related to the foreign currency translation of our intercompany loans denominated in U.S. dollars to our foreign subsidiaries. These loans are to be repaid in November 2022. Depending on the changes in foreign currency exchange rates, the Company will continue to record a non-cash gain or loss on translation for the remainder of the term of these loans. Due to the nature of this transaction, there is no economic benefit to the Company to hedge these transactions. Accounting for Environmental Costs Accruals for environmental remediation are recorded when it is probable a liability has been incurred and costs are reasonably estimable. The estimated liabilities are recorded at undiscounted amounts. Environmental insurance recoveries are included in the statement of operations in the year in which the issue is resolved through settlement or other appropriate legal process. Income Taxes The Company records income taxes in accordance with ASC 740-10, “Accounting for Income Taxes,” under the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to operating loss and tax credit carry forwards and differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded based on a determination of the ultimate realizability of future deferred tax assets. The Company complies with the provisions of ASC 740-10-25 that clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements in accordance with ASC 740-10, “Accounting for Income Taxes,” and prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. Additionally, ASC 740-10 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. There were no unrecognized tax benefits as of the date of adoption. As such, there are no unrecognized tax benefits included in the balance sheet that would, if recognized, affect the effective tax rate. The Company records interest and penalties relating to uncertain tax positions as a component of income tax expense. Stock-Based Compensation ASC 718-10 defines the fair-value-based method of accounting for stock-based employee compensation plans and transactions used by the Company to account for its issuances of equity instruments to record compensation cost for stock-based employee compensation plans at fair value as well as to acquire goods or services from non-employees. Transactions in which the Company issues stock-based compensation to employees, directors and advisors and for goods or services received from non-employees are accounted for based on the fair value of the equity instruments issued. The Company utilizes pricing models in determining the fair values of options, RSUs and warrants issued as stock-based compensation. These pricing models utilize the market price of the Company’s common stock and the exercise price of the option or warrant, as well as time value and volatility factors underlying the positions. Stock-based compensation expense is recognized over the requisite service period of the award, which usually coincides with the vesting period of the grant. Product Development and Research The Company’s research and development costs are expensed as incurred. Shipping and Handling Costs Costs related to shipping and handling are comprised of outbound freight and the associated labor. These costs are recorded in costs of sales. For the years ended December 31, 2019 and 2018, the costs relating to shipping and handling totaled $1.8 million and $2.1 million, respectively. Loss per Common Share Basic loss per share of common stock is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted loss per share of common stock is computed using the weighted average number of shares of common stock and potential dilutive common stock equivalents outstanding during the period. Potential dilutive common stock equivalents include shares issuable upon the conversion of the notes and the exercise of options and warrants. Due to the net loss for the years ended December 31, 2019 and 2018, the effect of the Company’s potential dilutive common stock equivalents was anti-dilutive; as a result, the basic and diluted weighted average number of common shares outstanding and net loss per common share are the same. As of December 31, 2019 and 2018, the shares of common stock issuable in connection with stock options and warrants have been excluded from the diluted loss per share, as their effect would have been anti-dilutive. For the years ended December 31, 2019 and 2018 (in thousands except shares and per share data) 2019 2018 Basic loss per share computation: Net loss attributable to common stockholders —basic and diluted $ (25,124) $ (36,256) Weighted average common shares —basic and diluted 53,839,139 53,592,930 Basic and diluted loss per share $ (0.47) $ (0.68) Adoption of Other Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing lease guidance under Topic 840. The new standard requires lessees to recognize Right-of-Use ("ROU") assets and lease liabilities for all leases with terms greater than 12 months, including those leases that were previously classified as operating leases. Topic 842 retains a distinction between finance leases and operating leases, with measurement and presentation of expenses and cash flows being dependent upon the classification. The Company adopted the new standard effective January 1, 2019 utilizing the optional transition method allowed under ASU 2018-11, Leases (Topic 842): Targeted Imp |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories as of December 31, 2019 and 2018 consisted of (in thousands): 2019 2018 Raw materials $ 14,117 $ 10,456 Work in progress 133 116 Finished goods 10,989 8,391 Inventories reserve (2,208) (2,667) Inventories, net $ 23,031 $ 16,296 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, at cost, as of December 31, 2019 and 2018, consisted of (in thousands): 2019 2018 Land 401 $ 401 Building and improvements 58,959 53,813 Machinery and equipment 14,897 12,229 Computer hardware and software 4,771 4,182 Furniture and fixtures 705 694 Construction in progress 30,759 30,949 110,492 102,268 Less accumulated depreciation and amortization (14,143) (10,493) Property, plant and equipment, net $ 96,349 $ 91,775 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing lease guidance under Topic 840. The new standard requires lessees to recognize Right-of-Use ("ROU") assets and lease liabilities for all leases with terms greater than 12 months, including those leases that were previously classified as operating leases. Topic 842 retains a distinction between finance leases and operating leases, with measurement and presentation of expenses and cash flows being dependent upon the classification. The Company adopted the new standard on January 1, 2019 utilizing the optional transition method allowed under ASU 2018-11, Leases (Topic 842): Targeted Improvements. The Company elected to adopt the package of practical expedients allowed under the new accounting guidance, which allows the Company to not reassess previous conclusions regarding (1) whether existing or expired leases are or contain leases, (2) the lease classification of existing or expired leases and (3) initial direct costs for existing leases. In addition, the Company adopted the practical expedient to combine lease and non-lease components for all classes of underlying assets. The Company reviewed its portfolio of lease agreements, and other service contracts to identify embedded leases, and reached conclusions on key accounting assessments related to the standard and finalized the related accounting policies. As a result of the implementation of the new standard, all leases with a term greater than 12 months previously classified as operating leases and only expensed through the Consolidated Statements of Operations are now recorded on the Consolidated Balance Sheets. Per the requirements of the standard, the Company has recorded a ROU asset and a lease liability representing the present value of future lease payments to be paid in exchange of the use of an asset of $1.9 million and $2.0 million, respectively as of January 1, 2019. However, there was no cumulative effect adjustment to the opening balance of retained earnings as the assets and the liabilities recorded upon adoption off-set each other. We have operating and finance leases for our corporate, manufacturing and international facilities as well as certain equipment. Our leases have remaining terms of less than 1 year to up to ten years, including available options to extend some of our lease terms for up to 5 years. One of our lease agreements has an early termination option within one year. As the interest rates implicit in our leases are typically not readily determinable, the Company has elected to utilize an incremental borrowing rate as the discount rate, determined based on the expected term of the lease, the Company’s credit risk and existing borrowings. The discount rates utilized ranged from 4.86% to 8.60% and were utilized to determine the present value of the lease liabilities. The components of lease expense were as follows: Year ended Operating lease cost $ 635 Finance lease cost: Amortization of right-of-use assets $ 14 Interest on lease liabilities $ 6 Total finance lease cost $ 20 Right-of-use assets obtained in exchange for new operating lease liabilities were $1.0 million during the year ended December 31, 2019. Cash paid for amounts included in the measurement of operating lease liabilities during the year ended December 31, 2019 was $0.6 million. Cash paid for amounts included in the measurement of finance lease liabilities during the three months and year ended December 31, 2019 was not material. Supplemental balance sheet information related to leases were as follows: December 31, 2019 Operating Leases Other assets $ 2,453 Other current liabilities 434 Other long-term liabilities 2,199 Total operating lease liabilities 2,633 Finance Leases Property, plant, and equipment 81 Accumulated depreciation (12) Property, plant, and equipment, net 69 Other current liabilities 12 Other long-term liabilities 57 Total finance lease liabilities $ 69 The weighted average remaining lease terms for operating and financing leases are 6.3 years and 4.7 years, respectively. The weighted average discount rates for operating and finance leases are 8.2% and 8.0%, respectively. As of December 31, 2019 maturities of lease liabilities were as follows: Operating Financing Year Ending December 31, Leases Leases 2020 $ 635 $ 18 2021 610 18 2022 550 18 2023 549 18 2024 236 12 Thereafter 843 — Total lease payments 3,423 84 Less imputed interest 790 15 Total $ 2,633 $ 69 As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, future minimum lease payments for operating leases having initial or remaining non-cancelable lease terms in excess of one year would have been as follows: Commitments 2019 $ 573 2020 611 2021 633 2022 610 2023 607 2024 200 $ 3,234 |
Leases | Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing lease guidance under Topic 840. The new standard requires lessees to recognize Right-of-Use ("ROU") assets and lease liabilities for all leases with terms greater than 12 months, including those leases that were previously classified as operating leases. Topic 842 retains a distinction between finance leases and operating leases, with measurement and presentation of expenses and cash flows being dependent upon the classification. The Company adopted the new standard on January 1, 2019 utilizing the optional transition method allowed under ASU 2018-11, Leases (Topic 842): Targeted Improvements. The Company elected to adopt the package of practical expedients allowed under the new accounting guidance, which allows the Company to not reassess previous conclusions regarding (1) whether existing or expired leases are or contain leases, (2) the lease classification of existing or expired leases and (3) initial direct costs for existing leases. In addition, the Company adopted the practical expedient to combine lease and non-lease components for all classes of underlying assets. The Company reviewed its portfolio of lease agreements, and other service contracts to identify embedded leases, and reached conclusions on key accounting assessments related to the standard and finalized the related accounting policies. As a result of the implementation of the new standard, all leases with a term greater than 12 months previously classified as operating leases and only expensed through the Consolidated Statements of Operations are now recorded on the Consolidated Balance Sheets. Per the requirements of the standard, the Company has recorded a ROU asset and a lease liability representing the present value of future lease payments to be paid in exchange of the use of an asset of $1.9 million and $2.0 million, respectively as of January 1, 2019. However, there was no cumulative effect adjustment to the opening balance of retained earnings as the assets and the liabilities recorded upon adoption off-set each other. We have operating and finance leases for our corporate, manufacturing and international facilities as well as certain equipment. Our leases have remaining terms of less than 1 year to up to ten years, including available options to extend some of our lease terms for up to 5 years. One of our lease agreements has an early termination option within one year. As the interest rates implicit in our leases are typically not readily determinable, the Company has elected to utilize an incremental borrowing rate as the discount rate, determined based on the expected term of the lease, the Company’s credit risk and existing borrowings. The discount rates utilized ranged from 4.86% to 8.60% and were utilized to determine the present value of the lease liabilities. The components of lease expense were as follows: Year ended Operating lease cost $ 635 Finance lease cost: Amortization of right-of-use assets $ 14 Interest on lease liabilities $ 6 Total finance lease cost $ 20 Right-of-use assets obtained in exchange for new operating lease liabilities were $1.0 million during the year ended December 31, 2019. Cash paid for amounts included in the measurement of operating lease liabilities during the year ended December 31, 2019 was $0.6 million. Cash paid for amounts included in the measurement of finance lease liabilities during the three months and year ended December 31, 2019 was not material. Supplemental balance sheet information related to leases were as follows: December 31, 2019 Operating Leases Other assets $ 2,453 Other current liabilities 434 Other long-term liabilities 2,199 Total operating lease liabilities 2,633 Finance Leases Property, plant, and equipment 81 Accumulated depreciation (12) Property, plant, and equipment, net 69 Other current liabilities 12 Other long-term liabilities 57 Total finance lease liabilities $ 69 The weighted average remaining lease terms for operating and financing leases are 6.3 years and 4.7 years, respectively. The weighted average discount rates for operating and finance leases are 8.2% and 8.0%, respectively. As of December 31, 2019 maturities of lease liabilities were as follows: Operating Financing Year Ending December 31, Leases Leases 2020 $ 635 $ 18 2021 610 18 2022 550 18 2023 549 18 2024 236 12 Thereafter 843 — Total lease payments 3,423 84 Less imputed interest 790 15 Total $ 2,633 $ 69 As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, future minimum lease payments for operating leases having initial or remaining non-cancelable lease terms in excess of one year would have been as follows: Commitments 2019 $ 573 2020 611 2021 633 2022 610 2023 607 2024 200 $ 3,234 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Convertible Notes 2019 Notes, 2023 Notes and 2023 Series B Notes On December 16, 2014, the Company issued $125.0 million aggregate principal amount of the 2019 Notes. On December 22, 2014, the Company announced the closing of the initial purchasers’ exercise in full of their option to purchase an additional $18.75 million aggregate principal amount of the 2019 Notes. The 2019 Notes bore interest at a fixed rate of 3.75% per year, payable semiannually in arrears on June 15 and December 15 of each year, beginning on June 15, 2015 and matured on December 15, 2019, unless earlier repurchased, redeemed or converted. The 2019 Notes were convertible into shares of the Company’s common stock, cash or a combination thereof. On May 20, 2015, the Company received shareholder approval for the increase in the number of shares of common stock authorized and available for issuance upon possible conversion of the 2019 Notes. On April 27, 2018, the Company entered into separate exchange agreements with certain holders of the 2019 Notes. The agreements gave the holders the right to exchange, in aggregate, $75.1 million of the 2019 Notes for $75.1 million of the 2023 Notes. The 2023 Notes bear a fixed interest rate of 4.75% per year, payable semi-annually with the principal payable in May 2023. At the option of the holders, the 2023 Notes are convertible into shares of the Company’s common stock, cash or a combination thereof. The initial conversion rate is $4.45 per share, subject to certain adjustments, related to either the Company's stock price volatility, or the Company's declaration of a stock dividend, stock distribution, share combination or share split expected dividends or other anti-dilutive activities. In addition, holders will be entitled to receive additional shares of common stock for a potential increase of the conversion rate up to $280.90 per share under a make-whole provision in some circumstances. The Company incurred debt issuance costs of $1.6 million upon issuance of the 2023 Notes. In accordance with accounting for convertible debt within the cash conversion guidance of ASC 470-20, the Company allocated the principal amount of the 2023 Notes between its liability and equity components. The carrying amount of the liability component was determined by measuring the fair value of a similar debt instrument of similar credit quality and maturity that did not have the conversion feature. The carrying amount of the equity component, representing the embedded conversion option, was determined by deducting the fair value of the liability component from the principal amount of the 2023 Notes as a whole. The equity component was recorded to additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the 2023 Notes over the carrying amount of the liability component was recorded as a debt discount of $19.0 million, and is being amortized to interest expense using the effective interest method through the maturity date. The Company allocated the total amount of debt issuance costs incurred to the liability and equity components using the same proportions as the proceeds from the 2023 Notes. The debt issuance costs attributable to the liability component were recorded as a direct deduction from the liability component of the 2023 Notes and are being amortized to interest expense using the effective interest method through the maturity date. Transaction costs attributable to the equity component were netted with the equity component of the 2023 Notes in additional paid-in capital. The effective interest rate of the 2023 Notes, inclusive of the debt discount and issuance costs, is 11.9%. The exchange of $75.1 million of the 2019 Notes for the 2023 Notes is considered a debt extinguishment under ASC 470-50. The 2019 Notes are accounted for under cash conversion guidance ASC 470-20, which requires the Company to allocate the fair value of the consideration transferred upon settlement to the extinguishment of the liability component and the reacquisition of the equity component upon derecognition. In accordance with the aforementioned guidance, the Company allocated a portion of the $75.1 million to the extinguishment of the liability component equal to the fair value of that component immediately before extinguishment and recognized a $2.5 million extinguishment loss in the Consolidated Statement of Operations to measure the difference between (i) the fair value of the liability component and (ii) the net carrying amount of the liability component (which is already net of any unamortized debt issuance costs). In addition, the Company recorded a $7.6 million reduction of Additional Paid in Capital in connection with the extinguishment of $75.1 million of the 2019 Notes. In December 2018 the Company used $52.8 million of proceeds from the Senior Credit Facilities (see below) to repurchase a portion of the 2019 Notes as well as $0.3 million of proceeds to pay for transaction costs. The repurchase of the 2019 Notes is considered a debt extinguishment under ASC 470-50. The 2019 Notes are accounted for under cash conversion guidance ASC 470-20, which requires the Company to allocate the fair value of the consideration transferred upon settlement to the extinguishment of the liability component and the reacquisition of the equity component upon derecognition. In accordance with the guidance above, the Company allocated a portion of the $52.8 million to the extinguishment of the liability component equal to the fair value of that component immediately before extinguishment and recognized a $1.7 million extinguishment loss in the Consolidated Statement of Operations to measure the difference between (i) the fair value of the liability component and (ii) the net carrying value amount of the liability component (which is already net of any unamortized debt issuance costs). In addition, the Company recorded a $2.9 million reduction of Additional Paid in Capital in connection with the extinguishment of the 2019 Notes. In the beginning of 2019, the Company used a total of $2.7 million of proceeds from the Senior Credit Facilities to repurchase a portion of the remaining 2019 Notes. The repurchase of the 2019 Notes is considered a debt extinguishment under ASC 470-50. The 2019 Notes are accounted for under cash conversion guidance ASC 470-20, which requires the Company to allocate the fair value of the consideration transferred upon settlement to the extinguishment of the liability component and the reacquisition of the equity component upon derecognition. In accordance with the guidance above, the Company allocated a portion of the $2.7 million to the extinguishment of the liability component equal to the fair value of that component immediately before extinguishment and recognized a $0.2 million extinguishment loss in the Consolidated Statement of Operations to measure the difference between (i) the fair value of the liability component and (ii) the net carrying value amount of the liability component (which is already net of any unamortized debt issuance costs). The reduction of Additional Paid in Capital in connection with this extinguishment was immaterial. The Company settled the remaining 2019 Notes of $13.0 million in principal upon its maturity in December 2019. 2023 Series B Notes On October 31, 2019, the Company closed its offering of the 2023 Series B Notes in the aggregate principal amount of $34.4 million. The 2023 Series B Notes will mature in May 2023 and are convertible at the option of the holder at any time prior to maturity at an initial conversion price of $0.72 per share, subject to adjustment under certain circumstances. The 2023 Series B Notes and any shares of common stock issuable upon conversion of the 2023 Series B Notes (the “Conversion Shares”) have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state or other jurisdiction’s securities laws, and the 2023 Notes and the Conversion Shares may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws. The Company does not intend to file a registration statement for the resale of the 2023 Series B Notes or any Conversion Shares. As part of the offering, the Company entered into agreements with certain holders of its existing 2023 Notes to exchange $9.0 million of the 2023 Notes for $5.1 million of the 2023 Series B Notes. The gross cash proceeds of approximately $29.3 million from the financing were used to extinguish the Company’s existing 2019 Notes in December 2019 and intended to pay amounts owing with respect to other indebtedness and to fund general corporate and working capital requirements. The 2023 Series B Notes bear interest at a rate of 7.00% per annum if paid in cash, semiannually in arrears on May 1 and November 1 of each year, beginning on May 1, 2020. The Company also has an option, and has agreed with its senior lender, to PIK the interest at 8.00% per annum, to defer cash payments. The net proceeds from the financing were $26.9 million after deducting a total of $2.3 million of the initial purchasers’ discounts and professional fees associated with the transaction. Under ASC 470-60, Troubled Debt Restructurings by Debtors, the exchange of the $9.0 million of the 2023 Notes for the $5.1 million of the 2023 Series B Notes represents a troubled debt restructuring ("TDR"). The TDR did not result in a gain recognition. As a result, a new effective interest rate was established based on the $7.2 million carrying value of the original debt, net of the $2.0 million fair value of the embedded derivative liability related to the new debt issued in the TDR and $0.2 million issuance costs, getting accreted to $6.8 million representing the total amount of the future undiscounted cash flows related to the $5.1 million of the 2023 Series B Notes. In accordance with ASC 815-15, Derivatives and hedging, Embedded Derivatives, the embedded conversion option should be bifurcated and separately accounted for as a derivative instrument, because the Company did not have enough authorized shares available to share-settle the conversion option. Such derivative instruments should be initially and subsequently measured at fair value, with changes in fair value recognized in earnings (see Note 7). The derivative liability recorded at the issuance date was $13.5 million, including the $2.0 million above accounted for in the TDR, which was subsequently remeasured to $6.8 million as of December 31, 2019, with $6.8 million recognized as a gain on change in fair value of derivative in the Company's statement of operations. Further, the $0.9 million of allocated issuance costs associated with the bifurcated conversion features embedded in the notes was recognized as a loss on debt restructuring in the Company’s statement of operations for the year ended December 31, 2019. In accordance with ASC 470-20, the initial carrying amount of the liability component of the 2023 Series B Notes, excluding the $5.1 million portion above is accounted for as a TDR, upon issuance is the residual amount between total proceeds from the transaction and the derivative liability net of allocated issuance costs. The $1.4 million debt issuance costs attributable to the liability component were recorded as a direct deduction from the liability component of the 2023 Series B Notes and are being amortized to interest expense using the effective interest method through the maturity date. The discount from the par amount of the 2023 Series B Notes will be accreted to par utilizing the effective-interest rate method over the term of the Notes from the issuance date through May 2023. The effective interest rate of the 2023 Notes, inclusive of the debt discount and issuance costs is 27.4%. Prior Term Loan On June 1, 2018, the Company entered into a credit agreement for $25.0 million in original principal amount of term loans secured by all Company assets (the “Prior Term Loan”). The Prior Term Loan incurred debt issuance costs of $0.5 million and a debt discount of $0.4 million. The debt discount is due to lender fees paid on the initial drawdown of $15.0 million. The debt issuance costs and debt discount were amortized to interest expense using the effective interest method through the maturity date. In December 2018, the Company used $25.6 million of proceeds from the Senior Credit Facilities (see below) to repay the Prior Term Loan which was comprised of $25.0 million of principal, $0.5 million of transaction costs and $0.1 million of interest. The repayment of the Prior Term Loan is considered a debt extinguishment under ASC 470-50. In 2018, the Company recorded $1.3 million of extinguishment loss related to the repayment of the Prior Term Loan in the Consolidated Statement of Operations. Senior Credit Facilities On December 13, 2018 we entered into the Senior Credit Facilities, consisting of the Revolver and Term Loans. The Senior Credit Facilities also included a $15.0 million delayed draw term loan b commitment, which remained undrawn and expired on October 31, 2019. As of December 31, 2019, $25.0 million was drawn under the Revolver and $88.5 million of Term Loans were outstanding. As of December 31, 2019, the Revolver was fully drawn. The Company extended commitments related to undrawn amounts of the Delayed Draw Term Loan A from June 30, 2019 to December 13, 2019, pursuant to an amendment the Company entered with the Second Lien Agent on July 18, 2019. The extended Delayed Draw Term Loan A was subsequently drawn down by the Company in December 2019. Drawn amounts under the Delayed Draw Term Loans mature at the same time as the Initial Term Loan. The Term Loans mature on the earliest to occur of the June 23, 2024 and the date of that is 181 days prior to the maturity date of each of (x) the 2023 Notes and (y) the 2023 Series B Notes. The Revolver matures on the earliest to occur of the June 23, 2024 and the date of that is 91 days prior to the maturity date of each of (x) the 2023 Notes and (y) the 2023 Series B Notes. The Company’s ability to borrow under the Revolver is subject to a borrowing base determined based upon eligible inventory, eligible equipment, eligible real estate and eligible receivables. The Senior Credit Facilities are secured by substantially all of the Company’s assets. All of the Company’s debt is subordinated to the Senior Credit Facilities. The liens securing the Term Loans are subordinate to the liens securing the Revolver. The Senior Credit Facilities had customary financial and non-financial covenants, including affirmative, negative and reporting covenants, representations and warranties, and events of default, including cross-defaults on other material indebtedness, as well as events of default triggered by a change of control and certain actions initiated by the FDA which were superseded by the amendments noted below. The financial covenants consisted of a minimum revenue test, a minimum adjusted EBITDA test and a maximum total net leverage ratio. The Revolver bears interest at a fluctuating rate of interest equal to one, two, three or six-month LIBOR plus a margin of 3.75% or a rate based on the prime rate plus a margin of 2.75%. The Term Loans bear interest at a fluctuating rate of interest equal to one, two, three or six-month LIBOR plus a margin of 8.75% or a rate based on the prime rate plus a margin of 7.75%. Interest on the Senior Credit Facilities is payable in cash quarterly in arrears (or more frequently in connection with customary LIBOR interest provisions), provided, that the Company may elect (and has covenanted to the lenders under its First Lien Credit Agreement to) pay interest on the Term Loans in kind until the earlier to occur of the date upon which Company has provided financial statements demonstrating twelve-months of revenue of at least $125.0 million and (ii) December 28, 2020. Amounts drawn under the Revolver may be prepaid at the option of the Company without premium or penalty, subject, in the case of acceleration of the Revolver or termination or reduction of the revolving credit commitments thereunder, to certain call protections which vary depending on the time at which such prepayments are made. Amounts drawn under the Revolver are subject to mandatory prepayment to the extent that aggregate extensions under the Revolver exceed the lesser of the revolving credit commitment then in effect and the borrowing base then in effect, and upon the occurrence of certain events and conditions, including non-ordinary course asset dispositions, receipt of certain insurance proceeds and condemnation awards and issuances of certain debt obligations. Amounts outstanding under the Term Loans may be prepaid at the option of the Company subject to applicable premiums, including a make-whole premium, and certain call protections which vary depending on the time at which such prepayments are made. Subject to payment of outstanding obligations under the Revolver as a result of any corresponding mandatory prepayment requirements thereunder, amounts outstanding under the Term Loans are subject to mandatory prepayment upon the occurrence of certain events and conditions, including non-ordinary course asset dispositions, receipt of certain insurance proceeds and condemnation awards, issuances of certain debt obligations and a change of control transaction. In connection with the Revolver the Company incurred a debt discount of $0.5 million and debt issuance issue costs of $0.3 million. The debt discount is due to annual fees and lender fees paid on the initial drawdown of $15.0 million. The debt issuance costs and debt discount are recorded as an asset on the Consolidated Balance Sheet and are amortized to interest expense using the straight-line method through the estimated Revolver maturity date. The annual fees related to the Revolver and the Initial Term Loan are amortized to interest expense using the straight-line method over the annual period they relate to. In connection with the Initial Term Loan and Delayed Draw Term Loan A, the Company incurred a debt discount of $1.8 million and debt issuance issue costs of $0.8 million. The debt discount is due to lender fees paid on the Initial Term Loan of $50.0 million and drawdown of Delayed Draw Term Loan A of $20.0 million. The debt issuance costs and debt discount costs are amortized to interest expense using the effective interest rate method through the estimated maturity date. In addition, the Company incurred $0.5 million of debt issuance costs related to the commitment fees paid to the lenders for the undrawn amounts of the Delayed Draw Term Loans. These debt issuance costs are recorded as an asset on the balance sheet and amortized on a straight-line basis over the access period of the Delayed Draw Term Loans through June 30, 2019. The effective interest rates, inclusive of the debt discounts and issuance costs, for the various borrowing tranches of the Revolver were between 6.2% and 9.1%. The effective interest rates, inclusive of the debt discounts and issuance costs for the Initial Term Loan and Delayed Draw Term Loan A were between 9.1% and 12.2%. The Initial Term Loan of $50.0 million and $15.0 million of the Revolver were drawn by the Company on December 13, 2018. On December 21, 2018, the Company drew $20.0 million of the Delayed Draw Term Loan A. In January 2019, the Company drew $5.0 million and subsequently the remaining $5.0 million under the Revolver were drawn down by the Company in April 2019. On September 18, 2019, pursuant to terms of the First Lien Credit Agreement, the Company borrowed an advance in the aggregate principal amount of $2.5 million (the “Protective Advance”). The Protective Advance is a secured Obligations under the First Lien Credit Agreement, and bears interest at the rate applicable to the Revolver. The Protective Advance was subsequently repaid in November 2019 along with a repayment fee of $0.1 million. The Company drew down the remaining $10.0 million under its borrowing capacity of Delayed Draw Term Loan A before its expiry in December of 2019. The $15.0 million Delayed Draw Term Loan B expired upon the issuance of the 2023 Series B Notes, prior to the Company drawing down any monies. The Term Loans are governed by the Second Lien Credit Agreement. The Term Loans include a 24-month paid-in-kind interest option available to the Company should it choose to defer cash payments in order to maintain the liquidity needed to continue launching new products, and preparing for an FDA prior approval inspection of its new injectable manufacturing facility. The Company has elected the paid-in-kind interest option and increased the principal balance of Term Loans by $8.5 million for the twelve month periods ended December 31, 2019 respectively. On April 6, 2020, the Company entered into amendments pertaining to the Senior Credit Facilities. The amendments collectively among other things, (i) increase the interest rates on April 6, 2020, (ii) reset certain prepayment premiums and modify the terms of certain mandatory prepayments and (iii) modify certain financial covenant levels inclusive of the disposition of prior covenants as of and for the period ended December 31, 2019. Additional information pertaining to the Senior Credit Facilities amendments is included in the Subsequent Event footnote. At December 31, 2019 and December 31, 2018, the net carrying amount of the debt and the remaining unamortized debt discounts and debt issuance costs were as follows (in thousands): December 31, 2019 December 31, 2018 (Current) (Current) Face amount of the 2019 Notes (due December 2019) $ — $ 15,702 Less unamortized discounts and debt issuance costs — 1,291 Total net carrying value $ — $ 14,411 December 31, 2019 December 31, 2018 Face amount of the 2023 Notes (due May 2023) $ 66,090 $ 75,090 Face amount of the Revolver Credit Facility (due December 2022) 25,000 15,000 Face amount of the 2023 Series B Notes (due May 2023) 34,405 — Face amount of the 2023 Loan (due February 2023) 88,464 70,000 Total carrying value, non-current $ 213,959 $ 160,090 Less unamortized discounts and debt issuance costs 27,589 20,519 Total net carrying value, non-current $ 186,370 $ 139,571 Debt Maturities Schedule Aggregate maturities of the Company’s debt are presented below (in thousands): Year Ending December 31, 2022 25,000 2023 188,959 Total $ 213,959 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company accounts for its derivative instruments in accordance with ASC 815-10, “Derivatives and Hedging”. ASC 815-10 establishes accounting and reporting standards requiring that derivative instruments, including derivative instruments embedded in other contracts, be recorded on the balance sheet as either an asset or liability measured at its fair value. ASC 815-10 also requires that changes in the fair value of derivative instruments be recognized currently in results of operations unless specific hedge accounting criteria are met. The Company has not entered into hedging activities to date. The Company's derivative liability at December 31, 2019 was the embedded convertible option of its 2023 Series B Notes issued on October 31, 2019, which has been recorded as a liability at fair value and was revalued at each reporting date, with changes in the fair value of the instruments included in the consolidated statements of operations as non-operating income (expense). The Company does not have a derivative liability at December 31, 2018. The terms and assumptions used in connection with the valuation of the convertible option of the 2023 Series B Notes are as follows: Initial Measurement Measurement Measurement date 10/31/2019 12/31/2019 Issuance date 10/31/2019 10/31/2019 Maturity date 5/1/2023 5/1/2023 Term (years) 3.5 3.33 Principal $ 34,405 $ 34,405 Coupon 7.00% cash/ 8.0% PIK 7.00% cash/ 8.0% PIK Seniority Senior unsecured Senior unsecured Conversion price $ 0.72 $ 0.72 Stock price $ 0.63 $ 0.43 Risk free rate 1.5 % 1.6 % Volatility 47.3 % 47.3 % The following table presents the Company’s liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of December 31, 2019. Quoted Prices in Active markets for Identical Assets and Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Balance as of December 31, 2019 Descriptions (Level 1) (Level 2) (Level 3) Derivative liability related to Series B Convertible Notes — — $ 6,776 $ 6,776 The following table sets forth a summary of changes in the fair value of the Company’s Level 3 liabilities for the year ended December 31, 2019. Any unrealized gains or losses on the derivative liabilities are recorded as non-operating income or expense in the Company’s statement of operations. Initial Measurement Subsequent Balance as of Descriptions 10/31/2019 (Gain) or loss recognized in earnings from Change in Fair Value 12/31/2019 Fair value of convertible feature of Series B Convertible Notes $ 13,545 $ (6,769) $ 6,776 |
Revenues, Recognition and Allow
Revenues, Recognition and Allowances | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues, Recognition and Allowances | Revenues, Recognition and Allowances Revenue Recognition As of January 1, 2018, the Company adopted the ASC 606 guidance for revenue recognition for contracts, using the modified retrospective method. The implementation of this guidance had no material impact on the measurement or recognition of revenue from customer contracts of prior periods. Upon adoption of this new guidance, the Company recognizes revenue using the following five steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price, including the identification and estimation of variable consideration; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when we satisfy a performance obligation. The Company derives its revenues from three types of transactions: sales of its own pharmaceutical products (Company product sales), sales of manufactured product for its customers (contract manufacturing sales), and research and product development services performed for third parties. Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price using the expected value method based on historical experience as well as applicable information currently available. Company Product Sales Revenue from Company product sales is recognized upon transfer of control of a product to a customer at a point in time, generally as the Company's products are sold on an FOB destination basis and because inventory risk and risk of ownership passes to the customer upon delivery. Company product sales are recorded net of accruals for estimated chargebacks, rebates, cash discounts, other allowances, and returns. Contract Manufacturing Sales The Company recognizes revenue for contract manufacturing sales over-time, as milestones are achieved. Shipments are made in accordance with sales commitments and related sales orders entered into with customers either verbally or in written form. Contract manufacturing sales are recognized net of accruals for cash discounts and returns which are established at the time of sale, and are included in Revenue, net in the Company's Consolidated Statement of Operations. Research and Development Services and Other Income The Company establishes agreed upon product development agreements with its customers to perform product development services. Revenues are recognized in accordance with the agreement upon the completion of the phases of development and when the Company has no future performance obligations relating to that phase of development. Other types of revenue include royalty or licensing revenue, which would be recognized over time, or at a point in time, based upon the contractual term upon completion of the earnings process. Judgments are required to evaluate contingencies such as potential variances in the schedule or the costs, the impact of change orders, liability claims, contract disputes and achievement of contractual performance standards. Revenues by Transaction Type The Company operates in one reportable segment and, therefore, the results of the Company's operations are reported on a consolidated basis, consistent with internal management reporting for the chief decision maker. Net Sales (in thousands) for the three years ended December 31, 2019 and 2018 were as follows (prior-period amounts are not adjusted under the modified-retrospective method of adoption): Years ended December 31, 2019 2018 Company product sales $ 64,291 $ 59,591 Contract manufacturing sales 1,362 6,047 Research and development services and other income 243 227 Revenue, net $ 65,896 $ 65,865 Disaggregated information for the Company product sales revenue has been recognized in the accompanying audited Consolidated Statements of Operations, and is presented below according to contract type (in thousands): Years ended December 31, Company Product Sales 2019 2018 Topical $ 46,150 $ 35,118 Injectables 18,141 24,473 Total $ 64,291 $ 59,591 For the twelve months ended December 31, 2019, Company did not incur, and therefore did not defer, any material incremental costs to obtain contracts. Returns and Allowances As is customary in the pharmaceutical industry, the Company’s product sales are subject to a variety of deductions including chargebacks, rebates, cash discounts, other allowances, and returns. Product sales are recorded net of accruals for returns and allowances, which are established at the time of sale. The Company analyzes the adequacy of its accruals for returns and allowances quarterly. Amounts accrued for sales deductions are adjusted when trends or significant events indicate that an adjustment is appropriate. Accruals are also adjusted to reflect actual results. These provisions are estimates based on historical payment experience, historical relationship to revenues, estimated customer inventory levels and current contract sales terms with direct and indirect customers. The Company uses a variety of methods to assess the adequacy of its returns and allowances reserves to ensure that its financial statements are fairly stated. These include periodic reviews of customer inventory data, customer contract programs, subsequent actual payment experience, and product pricing trends to analyze and validate the return and allowances reserves. Accounts receivable are presented net of returns and allowances of $30.5 million and $18.1 million at December 31, 2019 and 2018, respectively. The allowance for doubtful accounts was $2.2 million and $2.6 million at December 31, 2019 and 2018, respectively. These allowances are primarily related to one specific customer in the amount of $1.7 million. Chargebacks are one of the Company's most significant estimates for recognition of product sales. A chargeback represents an amount payable in the future to a wholesaler for the difference between the invoice price paid to the Company by its wholesale customer for a particular product and the negotiated contract price that the wholesaler’s customer pays for that product. The Company’s chargeback provision and related reserve varies with changes in product mix, changes in customer pricing and changes to estimated wholesaler inventories. The provision for chargebacks estimate the expected wholesaler sell-through levels to indirect customers at contract prices. The Company validates the chargeback accrual quarterly through a review of the inventory reports obtained from its largest wholesale customers. This customer inventory information is used to establish the estimated liability for future chargeback claims based on historical chargeback and contract rates. These large wholesalers represent the majority of the Company’s chargeback payments. The Company continually monitors current pricing trends and wholesaler inventory levels to ensure the liability for future chargebacks is fairly stated. Rebates are used for various discounts and rebates provided to customers. This account has been used for various one-time discounts given to customers. The Company reviews the percentage of products sold through these programs by reviewing chargeback data and uses the appropriate percentages to calculate the rebate accrual. Rebates are invoiced monthly or quarterly and reviewed against the accruals. Other items that could be included in accrued rebates would be price protection fees, shelf stock adjustments (SSAs), or other various amounts that would serve as one-time discounts on specific products. Net revenue and accounts receivable balances in the Company’s consolidated financial statements are presented net of sales and returns and allowances (SRA) estimates. Certain SRA balances are included in accounts payable and accrued expenses. The Company's adjustments for the deductions to gross product sales for the two years ended December 31, 2019 and 2018 are as follows (in thousands): Years ended December 31, 2019 2018 Gross product sales $ 156,301 $ 158,278 Reduction to gross product sales: Chargebacks and billbacks 60,008 60,770 Wholesaler fees for service 9,000 5,503 Sales discounts and other allowances 23,002 32,414 Total reduction to gross product sales $ 92,010 $ 98,687 Total product sales, net $ 64,291 $ 59,591 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The Company acquired the assets of Canadian pharmaceutical company Alveda Pharmaceuticals, Inc., in November 2015. As a result of the acquisition, goodwill of $0.4 million was recorded. Our annual impairment test is conducted annually on October 1. Goodwill is also tested for impairment whenever an event occurs or circumstances change that would more likely than not reduce the fair value of its reporting unit below its carrying amount. There have been no events or changes in circumstances that would have reduced the fair value of our reporting unit below its carrying value and therefore no impairment losses have been recognized pertaining to goodwill. Changes in goodwill during the two years ended December 31, 2019 and December 31, 2018 were as follows (in thousands): Goodwill January 1, 2018 $ 471 Foreign currency translation (1) December 31, 2018 470 Foreign currency translation 21 December 31, 2019 $ 491 Intangible Assets The following sets forth the major categories of the Company’s intangible assets and the weighted-average remaining amortization period as of December 31, 2019 and December 31, 2018 for those assets that are not already fully amortized (in thousands): December 31, 2019 Gross Carrying Accumulated Net Carrying Weighted Average Trademarks and Technology $ 39,943 $ (10,885) $ 29,058 10.8 Product acquisition costs 13,103 — 13,103 N/A - See description below In-process research and development 327 — 327 N/A - See description below Customer relationships 3,658 (1,501) 2,157 5.9 Total $ 57,031 $ (12,386) $ 44,645 December 31, 2018 Gross Carrying Accumulated Net Carrying Weighted Average Trademarks and Technology $ 40,169 $ (8,239) $ 31,930 11.8 Product acquisition costs 13,308 — 13,308 N/A - See description below In-process research and development 719 — 719 N/A - See description below Customer relationships 3,557 (1,139) 2,418 6.9 Total $ 57,753 $ (9,378) $ 48,375 Changes in intangibles during the year ended December 31, 2019 were as follows (in thousands): Product Acquisition Costs Trademarks and IPR&D Customer Balance at December 31, 2018 $ 13,308 $ 31,930 $ 719 $ 2,418 Amortization — (2,646) — (362) Intangible assets placed in service — 301 (301) — Foreign currency translation (205) (527) (91) 101 Balance at December 31, 2019 $ 13,103 $ 29,058 $ 327 $ 2,157 The Company recorded amortization expense of $3.0 million and $3.1 million in 2019 and 2018, respectively. The Company recorded an impairment loss of $0.7 million and $1.2 million related with product acquisition costs and IPR&D, respectively, in 2018. There were no impairment losses pertaining to intangibles for the year ending December 31, 2019. Assuming no additions, disposals or adjustments are made to the carrying values and/or useful lives of the intangible assets, annual amortization expense on trademarks and technology and customer relationships for each of the following years is estimated to be as follows (in thousands): Year ending December 31, Amortization Expense * 2020 $ 3,008 2021 3,008 2022 3,008 2023 3,008 2024 3,008 Thereafter 16,175 Total $ 31,215 *IPR&D and Product Acquisition Costs are not included in the table. The useful lives of the Company’s intangible assets are as follows: Intangibles Category Amortizable Life Product Acquisition Costs 10 years Trademarks & Technology 15 years Customer Relationships 10 years |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Options The 1999 Director Stock Option Plan, as amended (the “Director Plan”), provides for the grant of stock options to non-employee directors of the Company at an exercise price equal to the fair market value per share on the date of the grant. As of May 25, 2016, this plan is no longer active for grants. There were 485,000 and 500,000 stock options outstanding as of December 31, 2019 and 2018, respectively. On June 26, 2009, the Board of Directors adopted, and the Company’s stockholders subsequently approved by written consent, the IGI Laboratories, Inc. 2009 Equity Incentive Plan (the “2009 Plan”). The 2009 Plan became effective on July 29, 2009 and was no longer active for grants subsequent to May 25, 2016. The 2009 Plan allowed the Company to grant options and restricted stock, as well as the Board of Directors to authorize a broad range of other equity-based awards, including stock appreciation rights, restricted stock units ("RSUs") and performance awards to consultants, service providers, employees and board members. On April 12, 2010, the Board of Directors adopted, and the Company’s stockholders subsequently approved, an amendment and restatement of the 2009 Plan to increase the number of shares of Common Stock available for grant under such plan by adding 2,000,000 shares of Common Stock. The 2009 Plan, as amended on May 29, 2010, authorizes up to 5,000,000 shares of the Company’s common stock for issuance pursuant to the terms of the 2009 Plan. The maximum number of shares that may be subject to awards made to any individual in any single calendar year under the 2009 Plan is 1,000,000 shares. There were 1,847,608 stock options outstanding and 1,868,302 shares of stock outstanding as of December 31, 2019. There were no RSUs outstanding at December 31, 2019. There were 14,377 RSUs, 1,853,925 shares of stock outstanding and 2,458,106 stock options outstanding as of December 31, 2018. As of December 31, 2019, 1,369,038 options available were transferred to the superseded plan. On May 25, 2016, the Board of Directors approved the Company's 2016 Equity Incentive Plan (the "2016 Plan"). On May 21, 2018, the Board of Directors adopted, and the Company's stockholders subsequently approved, an amendment and restatement of the 2016 Plan to increase the number of shares of Common Stock available for grant under such plan by adding 2,000,000 shares of Common Stock. The 2016 Plan, as amended, provides for the issuance of awards of up to 4,000,000 shares of the Company's common stock, plus any currently forfeited, expired or canceled grants without delivery of shares of common stock to the recipient which would be returned to the plan for reissuance up to 2,500,000 shares. Generally, shares of common stock reserved for awards under the 2016 Plan that lapse or are canceled, will be added back to the share reserve available for future awards. However, shares of common stock tendered in payment for an award or shares of common stock withheld for taxes will not be available again for grant. The 2016 Plan provides that no participant may receive awards for more than 1,000,000 shares of common stock in any fiscal year. As the 2016 Plan supersedes either the Director Plan or the 2009 Plan, any available shares from either are now incorporated into the 2016 Plan. As of December 31, 2019, there were 62,680 RSUs outstanding, 136,496 shares of common stock outstanding and 2,835,131 stock options under the 2016 Plan. As of December 31, 2018, there were 161,214 RSUs outstanding, 74,667 shares of common stock outstanding and 1,394,285 stock options outstanding under the 2016 Plan. As of December 31, 2019 and December 31, 2018, there were 5,167,739 and 4,352,391 stock options outstanding respectively in the Director Plan, 2009 Plan, and the 2016 Plan. As of December 31, 2019, there were 2,334,731 options available to grant under the plan. In the interest of maintaining consistency with the Company's 2016 Equity Incentive Plan, on March 13, 2017, the Company entered into (i) an amendment to the option agreements governing each option grant currently outstanding under the Company's 2009 Equity Incentive Plan, and (ii) an amendment to the RSU agreements governing each RSU grant then outstanding under the 2009 Plan. The amendments provide for the automatic vesting upon a change of control of the Company of each option grant and RSU grant, as applicable, outstanding under the 2009 Plan. The amendments had a de minimis value to the holders as of December 31, 2019, and therefore no additional stock compensation expense was recognized related to the amendments. The fair value of each option award is estimated on the date of grant utilizing the Black-Scholes option-pricing formula and the assumptions noted in the following table. Expected volatilities and risk-free interest rates are based upon the expected life of the grant. Assumptions 2019 2018 Expected dividends 0 % 0 % Risk free rate 1.38 - 2.47% 2.44 % Expected volatility 64.33 - 76.81% 52.7 - 72.5% Expected term (in years) 3.2 – 3.3 years 3.2 – 3.3 years Volatility was estimated based on historical volatility of the Company’s stock over the expected life of the options. The expected life of the options was estimated based on the Company’s historical data. The risk-free interest rate is based on U.S. Treasury yields for securities with terms approximating the terms of the grants. Forfeitures are recognized in the period in which they occur. The assumptions utilized in the Black-Scholes option valuation model are highly subjective and can affect the resulting valuation. Stock option transactions in each of the past two years under the aforementioned plans in total were: Shares Exercise Weighted January 1, 2018 shares issuable under options 4,299,810 $0.79 - $10.67 $ 5.09 Granted 839,785 1.73-4.25 3.34 Exercised (239,000) 1.02-1.83 1.05 Expired — — — Forfeited (548,204) 2.02-10.67 8.04 December 31, 2018 shares issuable under options 4,352,391 $0.79-$10.67 $ 4.61 Granted 2,468,129 $0.55-$1.80 0.61 Exercised — — — Expired (761,780) $1.02-$10.67 2.42 Forfeited (891,001) $0.66-$8.67 1.04 December 31, 2019 shares issuable under options 5,167,739 $0.55-$10.67 $ 3.34 The following table summarizes information concerning outstanding and exercisable options as of December 31, 2019: Options Outstanding Options Exercisable Range of Number of Weighted Weighted Number of Weighted $0.00 - $0.78 195,155 9.58 $ 0.65 — $ — $0.79 - $1.50 1,781,369 4.52 1.02 1,265,000 1.03 $1.51 - $5.50 1,884,517 8.25 2.27 482,288 3.30 $5.51 - $10.67 1,306,698 5.97 8.44 1,250,518 7.73 Total 5,167,739 6.44 $ 3.34 2,997,806 $ 4.49 The following table summarizes information concerning outstanding and exercisable options as of December 31, 2018: Options Outstanding Options Exercisable Range of Number of Weighted Weighted Number of Weighted $0.79 - $1.50 1,510,000 3.12 $ 1.06 1,510,000 $ 1.06 $1.51 - $5.50 992,457 8.27 3.23 199,826 2.76 $5.51 - $10.67 1,849,934 6.99 8.24 1,528,686 8.45 Total 4,352,391 5.94 $ 4.61 3,238,512 $ 4.65 The Company has recorded $0.9 million, $1.5 million related to its stock option based compensation expenses in cost of sales, product development and research expenses, and selling, general and administrative expenses on the accompanying Consolidated Statements of Operations for the years ended December 31, 2019 and 2018, respectively. The aggregate intrinsic value of options outstanding was $0.0 million at December 31, 2019 and $0.5 million at December 31, 2018. The aggregate intrinsic value of the options exercisable was $0 million at December 31, 2019 and $0.5 million at December 31, 2018. The total intrinsic value of the options exercised during 2019 and 2018 was $0 million, $0.1 million, respectively. A summary of non-vested options at December 31, 2019 and changes during the year ended December 31, 2019 is presented below: Options Weighted Non-vested options at January 1, 2019 1,113,878 $ 2.00 Granted 2,468,129 0.61 Vested (521,073) 2.20 Forfeited (891,001) 1.04 Non-vested options at December 31, 2019 2,169,933 $ 0.77 As of December 31, 2019, there was $1.0 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements under the Plan. The costs will be recognized through November 2022. Restricted Stock and RSUs The Company periodically grants restricted stock and RSU awards to certain officers and other employees that typically vest one three expense is recognized over the vesting period of the restricted stock and RSUs. At December 31, 2019, the Company had approximately $0.1 million of total unrecognized compensation cost related to non-vested restricted stock and RSUs, all of which will be recognized through March 2021. There have been no restricted stock issuances in the years ended 2019 and 2018. A summary of non-vested RSUs and changes during each of the past two years is as follows: Number of Weighted Average Non-vested balance at January 1, 2018 188,629 $8.27 Changes during the period: Shares granted 122,949 3.36 Shares vested (109,940) 8.95 Shares forfeited (26,047) 5.76 Non-vested balance at December 31, 2018 175,591 $4.78 Changes during the period: Shares granted — — Shares vested (76,206) 5.39 Shares forfeited (36,705) 4.74 Non-vested balance at December 31, 2019 62,680 $4.07 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses represent various obligations of the Company including certain operating expenses and taxes payable. For the fiscal years ended December 31, 2019, and 2018, the largest components of accrued expenses were (in thousands): 2019 2018 Professional fees $ 1,881 $ 2,153 Payroll 1,789 1,908 Interest expense 1,539 1,042 Medicaid and Medicare 987 383 Rebates 774 714 Wholesaler Fees 747 203 Royalties 377 222 Clinical Studies 334 334 Inventory and supplies 250 1,809 Income Tax 20 45 Capital expenditures 23 275 Other 564 754 $ 9,285 $ 9,842 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is subject to U.S. federal income tax and files a consolidated federal income tax return which includes all eligible U.S. subsidiary companies. The Company is also subject to tax in the states of Alabama, Illinois, Montana, New Jersey and Tennessee. The Company conducts significant operations in certain foreign countries and is, accordingly, subject to tax in those foreign jurisdictions consisting of Canada (including the province of Ontario), Estonia, Luxembourg and Jersey. Loss before income tax for the years ended December 31, 2019 and 2018 consisted of the following (in thousands): 2019 2018 U.S. operations $ (20,212) $ (32,183) Foreign operations (4,821) (4,135) Global Total $ (25,033) $ (36,318) The Company’s current tax expense (benefit) was $0.1 million and $(0.1) million for the years ended December 31, 2019 and 2018, respectively. The provision (credit) for income taxes attributable to continuing operations before income taxes for the years ended December 31, 2019 and 2018 is as follows (in thousands): 2019 2018 Current tax expense (benefit): Federal $ — $ — State and local 23 30 Foreign 87 (157) Total current tax expense (benefit) 110 (127) Deferred tax expense: Federal — — State and local — — Foreign (19) 65 Total deferred tax (benefit) expense (19) 65 Total income tax expense (benefit) $ 91 $ (62) A comparison of income tax (benefit) expense at the U.S. statutory rate of 21% in 2019 and 2018 to the Company's effective rate is as follows (in thousands): 2019 2018 Expected Statutory benefit $ (5,257) $ (7,627) Other non-deductible expenses 133 256 Change in valuation allowance 4,674 6,572 Research credits (504) — Tax rate differential - foreign vs. U.S. 1,073 791 State income taxes, net of federal benefit 18 23 Prior year true-up (45) (93) Exchange gain (1) 16 $ 91 $ (62) During the fourth quarter of 2018, the Company completed its full assessment and finalized the accounting for the impact of the United States Tax Cuts and Jobs Act (U.S. TCJA) and concluded that there was no additional impact. Deferred tax balances included in the Consolidated Balance Sheets as of December 31, 2019 and 2018 consisted of the following (in thousands): 2019 2018 Deferred Tax Assets: Sales allowances and doubtful accounts $ 2,991 $ 1,964 Inventory reserve 652 962 Deferred revenue — 590 Accrued expenses 206 23 Property, plant and equipment 272 258 Tax operating loss carryforwards 10,851 9,951 Tax credit and other carryforwards 5,996 1,299 Stock compensation 566 538 Total deferred tax assets 21,534 15,585 Less valuation allowance (18,562) (12,120) Net deferred tax assets 2,972 3,465 Deferred Tax Liabilities: Convertible debt conversion features (3,070) (3,514) Foreign exchange (14) (28) Intangible assets (93) (138) Total deferred tax liabilities (3,177) (3,680) Net deferred tax liability $ (205) $ (215) The Company evaluates the recoverability of its deferred tax assets based on its history of operating results, its expectations for the future, and the expiration dates of the net operating loss carry forwards. Based on the preponderance of the evidence, the Company has concluded that it is more likely than not that it will be unable to realize the net deferred tax assets in the immediate future and has established a full valuation allowance for substantially all deferred tax assets. Accordingly, the Company has provided a valuation allowance of $18.6 million and $12.1 million for the years ended December 31, 2019 and 2018, respectively, on its deferred tax assets. The valuation allowance increased $6.5 million during 2019. This increase was due to $5.6 million related to changes in deferred taxes and $0.9 million related to the 2019 net operating loss. Operating loss, tax credit and other carry forwards as of December 31, 2019 and 2018 were as follows (in thousands): 2019 2018 Federal: Net operating losses (see below) $ 48,531 $ 45,081 Disallowed interest expense (no expiration) 17,783 5,018 Contributions (expiring through 2024) 658 524 Research tax credits (expiring through 2026) 1342 135 State: New Jersey (expiring in 2039) 4,942 2,976 Other states (expiring through 2039) 3,266 2,307 New Jersey research credits (expiring in 2026) 764 — Foreign Net operating losses (no expiration) $ — $ 257 At December 31, 2019, the Company’s U.S. federal net operating loss carryforwards will expire as follows (in thousands): Year Net Operating Loss 2020 - 2023 $ 8,227 2024 - 2029 9,063 2030 - 2032 9,926 2033 - 2036 6,296 2037 8,116 No expiration but subject to limitation 6,903 Total $ 48,531 Federal net operating losses arising during and after 2018 are not subject to expiration; however, their usage is limited to 80% of taxable income during the year of use. The Company’s ability to use net operating loss carry forwards is subject to substantial limitation in future periods under certain provisions of Section 382 of the Internal Revenue Code of 1986, as amended, which limit the utilization of net operating losses upon a more than 50% change in ownership of the Company’s stock that is held by 5% or greater stockholders. The Company examined the application of Section 382 with respect to an ownership change that took place during 2010, as well as the limitation on the application of net operating loss carry forwards. The Company believes that operating losses subsequent to the change date in 2010 (aggregating $26.5 million) are not subject to Section 382 limitations. The Company has estimated that the annual limitation starting in 2010 aggregates from $1.0 million to $2.3 million per year including the effect of amortization of built in gains. The Company's loss carryforwards may be further limited in the future if additional ownership changes occur. The Company is subject to the provisions of ASC 740-10-25, Income Taxes (ASC 740). ASC 740 prescribes a more likely-than-not threshold for the financial statement recognition of uncertain tax positions. ASC 740 clarifies the accounting for income taxes by prescribing a minimum recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. On a quarterly basis, the Company undergoes a process to evaluate whether income tax accruals are in accordance with ASC 740 guidance on uncertain tax positions. Federal income tax returns for the years 2014 and 2015 have been examined by the U.S. Internal Revenue Service without any income tax expense consequences. For federal purposes (except for the years 2014 and 2015), post 1998 tax years remain open to examination as a result of net operating loss carryforwards. The Company is currently open to audit by the appropriate state income taxing authorities for tax years 2014 through 2018. The Company has not recorded any liability for uncertain tax positions at December 31, 2019 or December 31, 2018. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Commitments | Commitments The Company’s commitments and contingencies consisted of leases for warehouse, office space and equipment. See Note 6 Leases for future lease payments under non-cancellable leases. The Company has certain licensing and development agreement in place under which the Company will pay certain licensing fees and milestones over the lives of certain projects. These commitments totaled approximately $2.4 million as of December 31, 2019, and will be paid over the next several years in accordance with agreed upon milestones. |
Legal and U.S. Regulatory Proce
Legal and U.S. Regulatory Proceedings | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal and U.S. Regulatory Proceedings | Legal and U.S. Regulatory Proceedings To date, thirteen putative class action antitrust lawsuits have been filed against the Company along with co-defendants, including Taro Pharmaceuticals U.S.A., Inc. and Perrigo New York Inc., regarding the pricing of generic pharmaceuticals, including econazole nitrate. The class plaintiffs seek to represent nationwide or state classes consisting of persons who directly purchased, indirectly purchased, paid and/or reimbursed patients for the purchase of generic pharmaceuticals from as early as July 1, 2009 until the time the defendants’ allegedly unlawful conduct ceased or will cease. The class plaintiffs seek treble damages for alleged overcharges during the alleged period of conspiracy, and certain of the class plaintiffs also seek injunctive relief against the defendants. The actions have been consolidated by the Judicial Panel on Multidistrict Litigation to the Eastern District of Pennsylvania for pre-trial proceedings as part of the In re Generic Pharmaceuticals Pricing Antitrust Litigation matter. On October 16, 2018 the court dismissed the class plaintiffs’ claims against the Company with leave to replead. On December 21, 2018 the class plaintiffs filed amended complaints, which the Company moved to dismiss on February 21, 2019. This motion remains pending. On December 19, 2019 certain class plaintiffs filed a further complaint that included additional claims against the Company based on the Company’s sales of fluocinolone acetonide. A motion to dismiss this complaint has not yet been filed. “Opt-out” antitrust lawsuits have additionally been filed against the Company by various plaintiffs, including Humana Inc.; The Kroger Co. et al.; United HealthCare Services, Inc.; Molina Healthcare, Inc.; MSP Recovery Claims, Series LLC; Health Care Service Corp.; and Harris County, Texas. All but one of these complaints have been consolidated into the In re Generic Pharmaceuticals Pricing Antitrust Litigation matter by the Judicial Panel on Multidistrict Litigation. Each of the opt-out complaints names up to forty-seven defendants (including the Company) and involves allegations regarding the pricing of econazole along with up to 180 other drug products, most of which were not manufactured or sold by the Company during the period at issue. The opt-out plaintiffs seek treble damages for alleged overcharges for the drug products identified in the complaint during the alleged period of conspiracy, and some also seek injunctive relief. A motion to dismiss the Humana Inc. and The Kroger Co., et al. opt-out complaints was filed on February 21, 2019. A motion to dismiss the remaining opt-out complaints has not yet been filed. Due to the early stage of these cases, the Company is unable to form a judgment at this time as to whether an unfavorable outcome is either probable or remote or to provide an estimate of the amount or range of potential loss. The Company believes these cases are without merit and it intends to vigorously defend against these claims. On October 20, 2017, a Demand for Arbitration was filed with the American Arbitration Association by Stayma Consulting Services, Inc. (“Stayma”) against the Company regarding the Company’s development and manufacture for Stayma of two generic drug products, one a lotion and one a cream, containing 0.05% of the active pharmaceutical ingredient flurandrenolide. The Company developed the two products and Stayma purchased commercial quantities of each; however, Stayma alleges that the Company breached agreements between the parties by developing an additional and different generic drug product, an ointment, containing flurandrenolide, and failing to meet certain contractual requirements. Stayma seeks monetary damages. The arbitrator has issued an interim award finding that the Company is not liable to Stayma on two of Stayma’s three claims against the Company. The third claim will proceed to a damages phase. The Company has argued that Stayma did not suffer any damages related to this claim and will vigorously pursue complete dismissal of the third claim. In addition, the arbitrator will determine money damages owed by Stayma to the Company relating to Stayma’s failure to pay several past due invoices of approximately $1.7 million. On December 13, 2018, Valdepharm SA filed a lawsuit alleging that the Company breached contracts regarding two drug products that the Company had sought to have Valdepharm manufacture. On February 12, 2019 the Company answered the complaint and counterclaimed, alleging that Valdepharm breached the contracts by failing to perform its work in compliance with FDA regulations and current Good Manufacturing Practices. Each party seeks damages associated with the alleged breach and related claims. Due to the early stage of the case the Company is unable to form a judgment at this time as to whether an unfavorable outcome is either probable or remote or to provide an estimate of the amount or range of potential loss. The Company believes the claims against Teligent are without merit, and it intends to vigorously defend against them. On April 15, 2019 a federal class action was filed the Oklahoma Police Pension Fund and Retirement System against the Company and certain individual defendants in the U.S. District Court, Southern District of New York. The lawsuit was brought on behalf of persons or entities who purchased or otherwise acquired publicly-traded Teligent, Inc. securities from March 7, 2017 through November 6, 2017. The complaint alleges that defendants made false or misleading statements regarding the Company’s business, operational, and compliance policies in violation of U.S. securities laws. The plaintiff seeks to recover compensable damages. Due to the early stage of these cases, the Company is unable to form a judgment at this time as to whether an unfavorable outcome is either probable or remote or to provide an estimate of the amount or range of potential loss.The Company believes these cases are without merit and it intends to vigorously defend against these claims. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits The Company has a 401(k) contribution plan, pursuant to which employees may elect to contribute to the plan, in whole percentages, up to 100% of compensation. Employees’ contributions are subject to a maximum contribution of $19.0 thousand for 2019 and $18.5 thousand for 2018, plus a catch-up contribution of up to for $6.0 thousand for 2019 and 2018, if a participant qualifies. The Company matches 100% of the first 3% of compensation contributed by participants and 50% of the next 2% of compensation contributed by participants. The Company contribution is in the form of cash, which is vested immediately. The Company has recorded charges to expense related to this plan of $368.7 thousand and $358.2 thousand in 2019 and 2018, respectively. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Quarterly Results (Unaudited) The following is a summary of certain quarterly financial information for the fiscal years 2019 and 2018: First Second Third Fourth Total (in thousands, except per share data) Year Ended December 31, 2019 Total revenues, net $ 13,122 $ 18,341 $ 18,466 $ 15,967 $ 65,896 Gross profit 5,762 8,541 7,280 1,940 23,523 Operating loss (2,740) 686 209 (6,175) (8,020) Net loss (8,724) (3,989) (7,113) (5,298) (25,124) Net loss attributable to common stockholders (8,724) (3,989) (7,113) (5,298) (25,124) Basic loss per share $ (0.16) $ (0.08) $ (0.13) $ (0.10) $ (0.47) Diluted loss per share $ (0.16) $ (0.08) $ (0.13) $ (0.10) $ (0.47) Year Ended December 31, 2018 Total revenues, net $ 14,545 $ 16,249 $ 18,294 $ 16,777 $ 65,865 Gross profit 5,220 4,784 6,719 5,662 22,385 Operating loss (3,531) (4,910) (1,213) (5,445) (15,099) Net loss (4,802) (13,119) (3,945) (14,390) (36,256) Net loss attributable to common stockholders (4,802) (13,119) (3,945) (14,390) (36,256) Basic loss per share $ (0.09) $ (0.25) $ (0.07) $ (0.27) $ (0.68) Diluted loss per share $ (0.09) $ (0.25) $ (0.07) $ (0.27) $ (0.68) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of novel coronavirus disease (“COVID-19”) as a pandemic, and we expect our operations in all locations to be affected as the virus continues to proliferate. We have adjusted certain aspects of our operations to protect our employees while avoiding business interruption. Only employees essential to the production and quality control aspects of our products remain on-site at our manufacturing and production facility in Buena, New Jersey. The outbreak and any preventative or protective actions that we, our customers, suppliers or other third parties with which we have business relationships, or governments may take in respect of the COVID-19 outbreak could disrupt our business and the business of our customers. Global health concerns, such as COVID-19, could also result in social, economic, and labor instability in the countries in which we or the third parties with whom we engage operate. In addition, the COVID-19 outbreak could result in a severe economic downturn and has already significantly affected the financial markets of many countries. A severe or prolonged economic downturn or political disruption could result in a variety of risks to our business, including our ability to raise capital when needed on acceptable terms, if at all. A weak or declining economy or political disruption could also strain our suppliers or third party CMOs, possibly resulting in supply disruption, or cause our customers to delay purchases or payments for our products. The COVID-19 pandemic may also create delays in the review and approval of our regulatory submissions as well as our pending reinspection related to our warning letter and pre-approval inspection for commercial production on the newly installed injectable line at the Company’s New Jersey facility by the FDA. We have initiated more frequent and detailed communications with our suppliers and the tracking of customer orders and wholesaler sell through data to help identify breaks in trends which may either facilitate the better servicing of our customers or negatively impact the achievement of our targets at risk. We will continue to monitor the situation closely and react accordingly to any future restrictions or limitations, while keeping the health of our employees and the interest of our customers and business in mind. Due to the uncertainty in the severity and duration of the pandemic, the impact on our revenues, profitability and statement of financial position is uncertain at this time. Senior Credit Facilities Amendment On April 6, 2020 (the “Amendment Closing Date”), the Company entered (i) Amendment No. 2 of the Revolver and Amendment No. 4 of the Term Loans, effective as of December 31, 2019. The amendments collectively among other things, (i) increase the interest rates, (ii) reset certain prepayment premiums and modify the terms of certain mandatory prepayments and (iii) modify certain financial covenant levels inclusive of the disposition of prior covenants as of and for the period ended December 31, 2019. The associated increase in interest rates are effective as of the Amendment Closing Date. The Revolver bears interest at a fluctuating rate of interest equal to the one, two, three or six-month LIBOR plus a margin of 5.5% or a rate based on the prime rate plus a margin of 4.5%, with a LIBOR floor of 1.5%. The Term Loans bear interest at a fluctuating rate of interest equal to the one, two, three or six-month LIBOR plus a margin of 13.0% or a rate based on the prime rate plus a margin of 12.0%, with a LIBOR floor of 1.5%. Interest on the Senior Credit Facilities is payable in cash quarterly in arrears (or more frequently in connection with customary LIBOR interest provisions), provided, that the Company may elect (and has covenanted to the lenders under its Senior Credit Facilities and subsequent amendments thereto) to pay interest on the Term Loans in kind through December 13, 2021 but only if the following occurs: (1) the Company receives a “warning letter close-out letter” from the Federal Drug Administration in response to corrective actions taken by the Company since receipt of the warning letter in November 2019 and (2) the Company receives a written recommendation from the Federal Drug Administration setting forth its approval decision in respect of the pre-approval inspection for commercial production on the newly installed injectable line at the Company’s New Jersey facility. If only one of those items occurs by December 13, 2020, then the Company may still elect to pay interest in kind during 2021, but only from the time the second condition has been satisfied until December 13, 2021. Thereafter, a portion of interest on the loans accruing at a rate of 4.25% per annum may continue to be paid in kind. Both amendments provide that in the event of receipt of net proceeds from a disposition triggering a mandatory prepayment, net proceeds of such disposition will be applied as follows: (i) first, to be retained by the Company or applied to amounts outstanding under the First Lien Credit Agreement until such time as liquidity of the Company and its subsidiaries equals $10.0 million, (ii) next to amounts outstanding under the Revolver (without a permanent reduction in the revolving loan commitments of the lenders) until such amounts are paid in full (with the first lien administrative agent having the right to waive such prepayment, in which event, such net proceeds are applied to amounts outstanding under the Second Lien Credit Agreement), and (iii) finally, to amounts outstanding under the Term Loans. In addition, pursuant to the Revolver, the Company has agreed at all times to maintain book cash of the Company and its subsidiaries not in excess of $10.0 million with any excess being required to prepay the outstanding obligations under the Revolver. The following additions and changes to financial covenants set forth in both Amendments are: (i) a new minimum net revenue covenant is added that is tested on the last day of each fiscal quarter from March 31, 2020 until the quarter ending December 31, 2020, (ii) resets a minimum consolidated adjusted EBITDA covenant that is tested on the last day of each fiscal quarter ending during the period from March 31, 2021 to maturity, (iii) eliminates a total net leverage covenant and (iv) adds a minimum liquidity covenant tested at all times during the term of the Senior Credit Facilities. In connection with the transactions contemplated by the Term Loan Amendment, on April 6, 2020, the Company issued to the Term Loan lenders certain warrants to purchase shares of the Company’s common stock (collectively, the “Warrants”). The Warrants are exercisable for up to, in the aggregate, 5,389,949 of pre-reverse stock split shares of the Company’s common stock at an exercise price of $0.01 per share of common stock. The Warrants will become exercisable at any time after the Company implements the reverse stock split previously approved by its stockholders and will remain exercisable, in whole or in part, for a period of five years. The number of shares issuable upon the exercise of the Warrants is subject to customary adjustments upon the occurrence of certain events, including (i) payment of a dividend or distribution to holders of shares of the Company’s common stock payable in shares of the Company’s common stock, (ii) a subdivision, capital reorganization or reclassification of the Company’s common stock or (iii) a merger, sale or other change of control transaction. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (in thousands) Additions Balance at Charged to Charged Deductions Balance at Year Ended December 31, 2018 Change in Tax Valuation Allowance $ 13,309 67 (1,256) — $ 12,120 Allowance for Doubtful Accounts $ 2,185 451 — — $ 2,636 Reserve for Inventory Obsolescence $ 1,304 3,343 — 1,980 $ 2,667 Year Ended December 31, 2019 Change in Tax Valuation Allowance $ 12,120 (19) 6,461 — $ 18,562 Allowance for Doubtful Accounts $ 2,636 208 — 636 $ 2,208 Reserve for Inventory Obsolescence $ 2,667 2,297 — 2,754 $ 2,210 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying audited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company consolidates the following entities: Igen, Inc., Teligent Pharma. Inc., Teligent Luxembourg S.à.r.l., Teligent OÜ and Teligent Canada Inc, in addition to the following inactive entities: Microburst Energy, Inc., Blood Cells, Inc. and Flavorsome, Ltd. All inter-company accounts and transactions have been eliminated. Certain amounts in the prior periods presented have been reclassified to conform to the current period financial statement presentation. These reclassifications have no effect on previously reported net income. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the valuation of the derivative liability associated with certain Notes, sales returns and allowances, allowances for excess and obsolete inventories, allowances for doubtful accounts, provisions for income taxes and related valuation allowances, stock based compensation, the assessment for the impairment of long-lived assets (including intangibles, goodwill and property, plant and equipment), property, plant and equipment and legal accruals. The Company bases its estimates and assumptions on historical experience, known or expected trends and various other assumptions that it believes to be reasonable. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. |
Cash Equivalents | Cash Equivalents |
Inventories | InventoriesInventories are valued at the lower of cost, using the first-in, first-out (“FIFO”) method, or market. The Company records an inventory reserve for losses associated with dated, expired, excess and obsolete items. This reserve is based on management’s current knowledge with respect to inventory levels, planned production, and extension capabilities of materials on hand. Management does not believe the Company’s inventory is subject to significant risk of obsolescence in the near term. |
Property, Plant and Equipment | Property, Plant and Equipment Depreciation and amortization of property, plant and equipment is provided for under the straight-line method over the assets’ estimated useful lives as follows: Descriptions Useful Lives Buildings and improvements 10-40 years Machinery and equipment 5-15 years Computer hardware and software 3-5 years Furniture and fixtures 5 years Leasehold improvements are amortized over the shorter of the estimated useful life or lease term. Repair and maintenance costs are charged to operations as incurred while major improvements are capitalized. Construction in progress ("CIP") costs are depreciated based on their respective asset class when they are put into service. When assets are retired or disposed, the historical cost and accumulated depreciation thereon are removed with any gains or losses included in operating results. |
Intangible Assets | Intangible Assets Definite-lived intangible assets are stated at cost less accumulated amortization. Amortization of definite-lived intangible assets are computed on a straight-line basis over the assets’ estimated useful life, generally for periods ranging from 10 to 15 years. The Company continually evaluates the reasonableness of the useful lives of these assets. Indefinite-lived intangible assets are not amortized, but instead are tested at least annually for impairment. Costs to renew or extend the term of a recognized intangible asset are expensed as incurred. An impairment is recognized in the amount, if any, by which the carrying amount of |
In-Process Research and Development | In-Process Research and DevelopmentAmounts allocated to in-process research and development (“IPR&D”) in connection with a business combination are recorded at fair value and are considered indefinite-lived intangible assets subject to annual impairment testing. As products in development are approved for sale, the associate balance will be allocated to product rights and amortized over their estimated useful lives. These valuations reflect, among other things, the impact of changes to the development programs, the projected development and regulatory time frames and the current competitive environment. The IPR&D are solely those assets acquired in the 2015 business combination of Alveda. The Company performed its annual impairment test and does not believe an impairment existed as of December 31, 2019. |
Long-Lived Assets | Long-Lived AssetsIn accordance with the provisions of ASC 360-10-55, the Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In performing such review for recoverability, the Company compares expected future cash flows of assets to the carrying value of the long-lived assets and related identifiable intangibles. If the expected future cash flows (undiscounted) are less than the carrying amount of such assets, the Company recognizes an impairment loss for the difference between the carrying value of the assets and their estimated fair value, with fair values being determined using projected discounted cash flows at the lowest level of cash flows identifiable in relation to the assets being reviewed. |
Product Acquisition Costs | Product Acquisition CostsProduct acquisition costs represent ANDAs and NDAs acquired in asset acquisitions, which are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The Company expects to amortize these costs over a 10-year useful life commencing when the product is sold. At December 31, 2019, product acquisition costs included assets acquired from AstraZeneca, Valeant and Sebela. |
Goodwill | Goodwill Goodwill, which represents the excess of purchase price over the fair value of the net assets acquired, is carried at cost. Goodwill is tested for impairment on an annual basis on October 1 of each fiscal year or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company early adopted ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment” in the fourth quarter of 2019. This amendment eliminates Step Two of the goodwill impairment test. Under the amendments in this update, an entity has the option to perform a qualitative assessment to determine if the quantitative impairment test is required. If the quantitative impairment test is required, the Company would perform the annual goodwill impairment test by comparing the carrying value of its reporting unit to its fair value. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value would be recorded. In accordance with the amendment, the Company performed the qualitative impairment test on October 1, 2019 and concluded its Goodwill was not impaired. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, trade receivables, restricted cash, accounts payable and other accrued liabilities at December 31, 2019 approximate their fair value for all periods presented. The Company measures fair value in accordance with ASC 820-10, “Fair Value Measurements and Disclosures”. ASC 820-10 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820-10 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. |
Debt Issuance Costs | Debt Issuance Costs Expenses related to debt financing activities are capitalized and amortized on an effective interest method, over the term of the loan and are to be netted against the carrying value of the financial liability, as required by ASU 2015-3. This standard aligns the treatment of debt issuance costs and debt discounts in that both reduce the carrying value of the liability. Amortization of debt issuance costs are recorded as interest expense on the Consolidated Statement of Operations. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The Company’s revenue is recorded net of accruals for estimated chargebacks, rebates, cash discounts, other allowances, and returns. The Company derives its revenues from three types of transactions: sales of its own pharmaceutical products (Company product sales), sales of manufactured product for its customers (contract manufacturing sales), and research and product development services performed for third parties. Due to differences in the substance of these transaction types, the transactions require, and the Company utilizes, different revenue recognition policies for each. Taxes collected from customers and remitted to government authorities and that are related to the sales of the Company’s products are excluded from revenues. Adoption of ASC Topic 606, "Revenue from Contracts with Customers” In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” The standard, including subsequently issued amendments, replaces most existing revenue recognition guidance in U.S. GAAP. The key focus of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company performed a comprehensive review of its existing revenue arrangements as of January 1, 2018 following the aforementioned five-step model. Based on the Company's analysis, there were no changes identified that impacted the amount or timing of revenues recognized under the new guidance as compared to the previous guidance. Additionally, the Company's analysis indicated that there were no changes to how costs to obtain and fulfill our customer contracts would be recognized under the new guidance as compared to the previous guidance. The impact of the adoption of this standard on the Company's Consolidated Balance Sheet, Consolidated Statement of Operations, and Consolidated Statement of Cash Flows was not material. The adoption of the new guidance impacted the way the Company analyzes, documents, and discloses revenue recognition under customer contracts beginning on January 1, 2018 and resulted in additional disclosures in the Company's financial statements. Company Product Sales Revenue from Company product sales is recognized upon transfer of control of a product to a customer at a point in time, generally as the Company's products are sold on an FOB destination basis and because inventory risk and risk of ownership passes to the customer upon delivery. Company product sales are recorded net of accruals for estimated chargebacks, rebates, cash discounts, other allowances, and returns. Contract Manufacturing Sales: The Company recognizes revenue for contract manufacturing sales over-time, as milestones are achieved. Shipments are made in accordance with sales commitments and related sales orders entered into with customers either verbally or in written form. Contract manufacturing sales are recognized net of accruals for cash discounts and returns which are established at the time of sale, and are included in Revenue, net in the Company's Consolidated Statement of Operations. Research and Development Income: The Company establishes agreed upon product development agreements with its customers to perform product development services. Revenues are recognized in accordance with the agreement upon the completion of the phases of development and when the Company has no future performance obligations relating to that phase of development. Other types of revenue include royalty or licensing revenue, which would be recognized over time, or at a point in time, based upon the contractual term upon completion of the earnings process. Judgments are required to evaluate contingencies such as potential variances in schedule and the costs, the impact of change orders, liability claims, contract disputes and achievement of contractual performance standards. Revenue and Provision for Sales Returns and Allowances As is customary in the pharmaceutical industry, the Company’s product sales are subject to a variety of deductions including chargebacks, rebates, cash discounts, other allowances, and returns. Product sales are recorded net of accruals for returns and allowances ("SRA"), which are established at the time of sale. The Company analyzes the adequacy of its accruals for returns and allowances quarterly. Amounts accrued for sales deductions are adjusted when trends or significant events indicate that an adjustment is appropriate. Accruals are also adjusted to reflect actual results. These provisions are estimates based on historical payment experience, historical relationship to revenues, estimated customer inventory levels and current contract sales terms with direct and indirect customers. The Company uses a variety of methods to assess the adequacy of its returns and allowances reserves to ensure that its financial statements are fairly stated. These include periodic reviews of customer inventory data, customer contract programs, subsequent actual payment experience, and product pricing trends to analyze and validate the return and allowances reserves. Chargebacks are one of the Company's most significant estimates for recognition of product sales. A chargeback represents an amount payable in the future to a wholesaler for the difference between the invoice price paid to the Company by its wholesale customer for a particular product and the negotiated contract price that the wholesaler’s customer pays for that product. The Company’s chargeback provision and related reserve varies with changes in product mix, changes in customer pricing and changes to estimated wholesaler inventories. The provision for chargebacks also estimates the expected wholesaler sell-through levels to indirect customers at contract prices. The Company validates the chargeback accrual quarterly through a review of the inventory reports obtained from its largest wholesale customers. This customer inventory information is used to establish the estimated liability for future chargeback claims based on historical chargeback and contract rates. These large wholesalers represent a majority of the Company’s chargeback payments. The Company continually monitors current pricing trends and wholesaler inventory levels to ensure the liability for future chargebacks is fairly stated. Rebates are used for various discounts and rebates provided to customers. The Company reviews the percentage of products sold through these programs utilizing chargeback data and applies the appropriate program percentages to calculate the rebate accrual. Rebate invoices and/or payments may be received monthly, quarterly or annually and reviewed against the accruals. Other items that could be included in accrued rebates represent price protection fees, shelf stock adjustments (SSAs), or other various amounts that would serve as one-time discounts on specific products. |
Concentration of Risk | Concentration of Risk Financial instruments, which subject the Company to concentration of credit risk, consist primarily of cash equivalents and trade receivables. The Company maintains its cash in accounts with quality financial institutions. Although the Company currently believes that the financial institutions with which the Company does business will be able to fulfill their commitments to us, there is no assurance that those institutions will be able to continue to do so. |
Acquisitions | Acquisitions The Company accounts for acquired businesses using the acquisition method of accounting, which requires with limited exceptions, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date. Transaction costs are expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded as goodwill. When net assets that do not constitute a business are acquired, no goodwill is recognized. Contingent consideration, if any, is included as part of the acquisition cost and is recognized at fair value as of the acquisition date. Any liability resulting from contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved. These changes in fair value are recognized in earnings. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company extends credit to wholesaler and distributor customers and national retail chain customers, based upon credit evaluations, in the normal course of business, primarily with 60 to 90-day terms. The Company maintains customer-related accruals and allowances that consist primarily of chargebacks, rebates, sales returns, shelf stock allowances, administrative fees and other incentive programs. Some of these adjustments relate specifically to the generic prescription pharmaceutical business. Typically, the aggregate gross-to-net adjustments related to these customers can exceed 70% of the gross sales through this distribution channel. Certain of these accruals and allowances are recorded in the balance sheet as current liabilities and others are recorded as a reduction to accounts receivable. |
Foreign Currency Translation | Foreign Currency Translation The net assets of international subsidiaries where the local currencies have been determined to be the functional currencies are translated into U.S. dollars using current exchange rates. The U.S. dollar effects that arise from translating the net assets of these subsidiaries at changing rates are recorded in the foreign currency translation account, which is included in accumulated other comprehensive income (loss) (AOCI) and reflected as a separate component of equity. For those subsidiaries where the U.S. dollar has been determined to be the functional currency, non-monetary foreign currency assets and liabilities are translated using historical rates, while monetary assets and liabilities are translated at current rates, with the U.S. dollar effects of rate changes included in Other (income) expense, net. |
Accounting for Environmental Costs | Accounting for Environmental Costs Accruals for environmental remediation are recorded when it is probable a liability has been incurred and costs are reasonably estimable. The estimated liabilities are recorded at undiscounted amounts. Environmental insurance recoveries are included in the statement of operations in the year in which the issue is resolved through settlement or other appropriate legal process. |
Income Taxes | Income Taxes The Company records income taxes in accordance with ASC 740-10, “Accounting for Income Taxes,” under the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to operating loss and tax credit carry forwards and differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded based on a determination of the ultimate realizability of future deferred tax assets. The Company complies with the provisions of ASC 740-10-25 that clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements in accordance with ASC 740-10, “Accounting for Income Taxes,” and prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. Additionally, ASC 740-10 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. There were no unrecognized tax benefits as of the date of adoption. As such, there are no unrecognized tax benefits included in the balance sheet that would, if recognized, affect the effective tax rate. The Company records interest and penalties relating to uncertain tax positions as a component of income tax expense. |
Stock-Based Compensation | Stock-Based Compensation ASC 718-10 defines the fair-value-based method of accounting for stock-based employee compensation plans and transactions used by the Company to account for its issuances of equity instruments to record compensation cost for stock-based employee compensation plans at fair value as well as to acquire goods or services from non-employees. Transactions in which the Company issues stock-based compensation to employees, directors and advisors and for goods or services received from non-employees are accounted for based on the fair value of the equity instruments issued. The Company utilizes pricing models in determining the fair values of options, RSUs and warrants issued as stock-based compensation. These pricing models utilize the market price of the Company’s common stock and the exercise price of the option or warrant, as well as time value and volatility factors underlying the positions. Stock-based compensation expense is recognized over the requisite service period of the award, which usually coincides with the vesting period of the grant. |
Product Development and Research | Product Development and Research The Company’s research and development costs are expensed as incurred. |
Shipping and Handling Costs | Shipping and Handling Costs |
Loss per Common Share | Loss per Common Share |
Adoption of Other Recent Accounting Pronouncements | Adoption of Other Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing lease guidance under Topic 840. The new standard requires lessees to recognize Right-of-Use ("ROU") assets and lease liabilities for all leases with terms greater than 12 months, including those leases that were previously classified as operating leases. Topic 842 retains a distinction between finance leases and operating leases, with measurement and presentation of expenses and cash flows being dependent upon the classification. The Company adopted the new standard effective January 1, 2019 utilizing the optional transition method allowed under ASU 2018-11, Leases (Topic 842): Targeted Improvements. The Company elected to adopt the package of practical expedients allowed under the new accounting guidance, which allows the Company to not reassess previous conclusions regarding 1) whether existing or expired leases are or contain leases, 2) the lease classification of existing or expired leases and 3) initial direct costs for existing leases. In addition, the Company adopted the practical expedient to combine lease and non-lease components for all classes of underlying assets. Per the requirements of the standard, the Company recorded a ROU asset and a lease liability representing the present value of future lease payments to be paid in exchange of the use of an asset of $1.9 million and $2.0 million respectively as of January 1, 2019. However, there was no cumulative effect adjustment to the opening balance of retained earnings as the assets and the liabilities recorded upon adoption off-set each other. In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This guidance is effective for all entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. The amendments in ASU 2018-02 should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company's adoption of this amendment, effective January 1, 2019, did not have a material impact on its consolidated financial statements and the related disclosures. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): “Clarifying the Interaction between Topic 808 and Topic 606”. The guidance clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer. For the Company, the amendment will be effective on January 1, 2020, with early adoption permitted. The Company early adopted this amendment in the last quarter of 2019. The adoption of this amendment did not have a material impact on the Company's consolidated financial statements and the related disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment”. The update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. In accordance with the amendment, entities should perform the annual goodwill impairment test by comparing the carrying value of their reporting units to their fair value. An entity should record an impairment charge for the amount by which its carrying amount exceeds its reporting unit’s fair value. The Company early adopted the amendment in the fourth quarter of 2019. The adoption of this amendment did not have a material impact on the Company's consolidated financial statements and the related disclosures. Recently Issued and Not Yet Adopted Accounting Pronouncements In December 2019, the FASB issued accounting standard update to simplify the accounting for income taxes. The standard’s amendments include changes in various subtopics of accounting for income taxes including, but not limited to, accounting for “hybrid” tax regimes, tax basis step-up in goodwill obtained in a transaction that is not a business combination, intraperiod tax allocation exception to incremental approach, ownership changes in investments, interim-period accounting for enacted changes in tax law, and year-to date loss limitation in interim-period tax accounting. The guidance is effective for fiscal years beginning after December 15, 2020 with early adoption permitted, including the interim periods within those years. The Company is evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total amounts in the Consolidated Statement of Cash Flows as follows (in thousands): December 31, 2019 December 31, 2018 Cash and cash equivalents $ 15,508 $ 9,705 Restricted cash 206 2,892 Restricted cash in other assets 468 472 Cash, cash equivalents and restricted cash in the statement of cash flows $ 16,182 $ 13,069 |
Schedule Useful Lives | Depreciation and amortization of property, plant and equipment is provided for under the straight-line method over the assets’ estimated useful lives as follows: Descriptions Useful Lives Buildings and improvements 10-40 years Machinery and equipment 5-15 years Computer hardware and software 3-5 years Furniture and fixtures 5 years |
Schedule of Earnings Per Share, Basic and Diluted | For the years ended December 31, 2019 and 2018 (in thousands except shares and per share data) 2019 2018 Basic loss per share computation: Net loss attributable to common stockholders —basic and diluted $ (25,124) $ (36,256) Weighted average common shares —basic and diluted 53,839,139 53,592,930 Basic and diluted loss per share $ (0.47) $ (0.68) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories as of December 31, 2019 and 2018 consisted of (in thousands): 2019 2018 Raw materials $ 14,117 $ 10,456 Work in progress 133 116 Finished goods 10,989 8,391 Inventories reserve (2,208) (2,667) Inventories, net $ 23,031 $ 16,296 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, at cost, as of December 31, 2019 and 2018, consisted of (in thousands): 2019 2018 Land 401 $ 401 Building and improvements 58,959 53,813 Machinery and equipment 14,897 12,229 Computer hardware and software 4,771 4,182 Furniture and fixtures 705 694 Construction in progress 30,759 30,949 110,492 102,268 Less accumulated depreciation and amortization (14,143) (10,493) Property, plant and equipment, net $ 96,349 $ 91,775 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Year ended Operating lease cost $ 635 Finance lease cost: Amortization of right-of-use assets $ 14 Interest on lease liabilities $ 6 Total finance lease cost $ 20 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases were as follows: December 31, 2019 Operating Leases Other assets $ 2,453 Other current liabilities 434 Other long-term liabilities 2,199 Total operating lease liabilities 2,633 Finance Leases Property, plant, and equipment 81 Accumulated depreciation (12) Property, plant, and equipment, net 69 Other current liabilities 12 Other long-term liabilities 57 Total finance lease liabilities $ 69 |
Schedule of Financing Lease Maturities | As of December 31, 2019 maturities of lease liabilities were as follows: Operating Financing Year Ending December 31, Leases Leases 2020 $ 635 $ 18 2021 610 18 2022 550 18 2023 549 18 2024 236 12 Thereafter 843 — Total lease payments 3,423 84 Less imputed interest 790 15 Total $ 2,633 $ 69 |
Schedule of Operating Lease Maturities | As of December 31, 2019 maturities of lease liabilities were as follows: Operating Financing Year Ending December 31, Leases Leases 2020 $ 635 $ 18 2021 610 18 2022 550 18 2023 549 18 2024 236 12 Thereafter 843 — Total lease payments 3,423 84 Less imputed interest 790 15 Total $ 2,633 $ 69 |
Schedule of Future Minimum Lease Payments Under Previous Guidance | As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, future minimum lease payments for operating leases having initial or remaining non-cancelable lease terms in excess of one year would have been as follows: Commitments 2019 $ 573 2020 611 2021 633 2022 610 2023 607 2024 200 $ 3,234 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Convertible debt | At December 31, 2019 and December 31, 2018, the net carrying amount of the debt and the remaining unamortized debt discounts and debt issuance costs were as follows (in thousands): December 31, 2019 December 31, 2018 (Current) (Current) Face amount of the 2019 Notes (due December 2019) $ — $ 15,702 Less unamortized discounts and debt issuance costs — 1,291 Total net carrying value $ — $ 14,411 December 31, 2019 December 31, 2018 Face amount of the 2023 Notes (due May 2023) $ 66,090 $ 75,090 Face amount of the Revolver Credit Facility (due December 2022) 25,000 15,000 Face amount of the 2023 Series B Notes (due May 2023) 34,405 — Face amount of the 2023 Loan (due February 2023) 88,464 70,000 Total carrying value, non-current $ 213,959 $ 160,090 Less unamortized discounts and debt issuance costs 27,589 20,519 Total net carrying value, non-current $ 186,370 $ 139,571 |
Debt maturities schedule | Aggregate maturities of the Company’s debt are presented below (in thousands): Year Ending December 31, 2022 25,000 2023 188,959 Total $ 213,959 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Terms and Assumptions in Valuation of Convertible Option of Notes | The terms and assumptions used in connection with the valuation of the convertible option of the 2023 Series B Notes are as follows: Initial Measurement Measurement Measurement date 10/31/2019 12/31/2019 Issuance date 10/31/2019 10/31/2019 Maturity date 5/1/2023 5/1/2023 Term (years) 3.5 3.33 Principal $ 34,405 $ 34,405 Coupon 7.00% cash/ 8.0% PIK 7.00% cash/ 8.0% PIK Seniority Senior unsecured Senior unsecured Conversion price $ 0.72 $ 0.72 Stock price $ 0.63 $ 0.43 Risk free rate 1.5 % 1.6 % Volatility 47.3 % 47.3 % |
Schedule of Liabilities Measured and Recognized at Fair Value on a Recurring Basis | The following table presents the Company’s liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of December 31, 2019. Quoted Prices in Active markets for Identical Assets and Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Balance as of December 31, 2019 Descriptions (Level 1) (Level 2) (Level 3) Derivative liability related to Series B Convertible Notes — — $ 6,776 $ 6,776 The following table sets forth a summary of changes in the fair value of the Company’s Level 3 liabilities for the year ended December 31, 2019. Any unrealized gains or losses on the derivative liabilities are recorded as non-operating income or expense in the Company’s statement of operations. Initial Measurement Subsequent Balance as of Descriptions 10/31/2019 (Gain) or loss recognized in earnings from Change in Fair Value 12/31/2019 Fair value of convertible feature of Series B Convertible Notes $ 13,545 $ (6,769) $ 6,776 |
Revenues, Recognition and All_2
Revenues, Recognition and Allowances (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | Net Sales (in thousands) for the three years ended December 31, 2019 and 2018 were as follows (prior-period amounts are not adjusted under the modified-retrospective method of adoption): Years ended December 31, 2019 2018 Company product sales $ 64,291 $ 59,591 Contract manufacturing sales 1,362 6,047 Research and development services and other income 243 227 Revenue, net $ 65,896 $ 65,865 Disaggregated information for the Company product sales revenue has been recognized in the accompanying audited Consolidated Statements of Operations, and is presented below according to contract type (in thousands): Years ended December 31, Company Product Sales 2019 2018 Topical $ 46,150 $ 35,118 Injectables 18,141 24,473 Total $ 64,291 $ 59,591 |
Schedule Of Annual Activity Allowance For Customer Deductions Disclosure | The Company's adjustments for the deductions to gross product sales for the two years ended December 31, 2019 and 2018 are as follows (in thousands): Years ended December 31, 2019 2018 Gross product sales $ 156,301 $ 158,278 Reduction to gross product sales: Chargebacks and billbacks 60,008 60,770 Wholesaler fees for service 9,000 5,503 Sales discounts and other allowances 23,002 32,414 Total reduction to gross product sales $ 92,010 $ 98,687 Total product sales, net $ 64,291 $ 59,591 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Changes in goodwill during the two years ended December 31, 2019 and December 31, 2018 were as follows (in thousands): Goodwill January 1, 2018 $ 471 Foreign currency translation (1) December 31, 2018 470 Foreign currency translation 21 December 31, 2019 $ 491 |
Finite and Indefinite Lived Intangible Assets | The following sets forth the major categories of the Company’s intangible assets and the weighted-average remaining amortization period as of December 31, 2019 and December 31, 2018 for those assets that are not already fully amortized (in thousands): December 31, 2019 Gross Carrying Accumulated Net Carrying Weighted Average Trademarks and Technology $ 39,943 $ (10,885) $ 29,058 10.8 Product acquisition costs 13,103 — 13,103 N/A - See description below In-process research and development 327 — 327 N/A - See description below Customer relationships 3,658 (1,501) 2,157 5.9 Total $ 57,031 $ (12,386) $ 44,645 December 31, 2018 Gross Carrying Accumulated Net Carrying Weighted Average Trademarks and Technology $ 40,169 $ (8,239) $ 31,930 11.8 Product acquisition costs 13,308 — 13,308 N/A - See description below In-process research and development 719 — 719 N/A - See description below Customer relationships 3,557 (1,139) 2,418 6.9 Total $ 57,753 $ (9,378) $ 48,375 |
Changes in Intangible Assets Other Than Goodwill | Changes in intangibles during the year ended December 31, 2019 were as follows (in thousands): Product Acquisition Costs Trademarks and IPR&D Customer Balance at December 31, 2018 $ 13,308 $ 31,930 $ 719 $ 2,418 Amortization — (2,646) — (362) Intangible assets placed in service — 301 (301) — Foreign currency translation (205) (527) (91) 101 Balance at December 31, 2019 $ 13,103 $ 29,058 $ 327 $ 2,157 |
Finite-Lived Intangible Assets Future Amortization Expense | Assuming no additions, disposals or adjustments are made to the carrying values and/or useful lives of the intangible assets, annual amortization expense on trademarks and technology and customer relationships for each of the following years is estimated to be as follows (in thousands): Year ending December 31, Amortization Expense * 2020 $ 3,008 2021 3,008 2022 3,008 2023 3,008 2024 3,008 Thereafter 16,175 Total $ 31,215 *IPR&D and Product Acquisition Costs are not included in the table. |
Finite-Lived Intangible Assets Useful Lives | The useful lives of the Company’s intangible assets are as follows: Intangibles Category Amortizable Life Product Acquisition Costs 10 years Trademarks & Technology 15 years Customer Relationships 10 years |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Valuation Assumptions | The fair value of each option award is estimated on the date of grant utilizing the Black-Scholes option-pricing formula and the assumptions noted in the following table. Expected volatilities and risk-free interest rates are based upon the expected life of the grant. Assumptions 2019 2018 Expected dividends 0 % 0 % Risk free rate 1.38 - 2.47% 2.44 % Expected volatility 64.33 - 76.81% 52.7 - 72.5% Expected term (in years) 3.2 – 3.3 years 3.2 – 3.3 years |
Schedule of Stock Option Transactions | Stock option transactions in each of the past two years under the aforementioned plans in total were: Shares Exercise Weighted January 1, 2018 shares issuable under options 4,299,810 $0.79 - $10.67 $ 5.09 Granted 839,785 1.73-4.25 3.34 Exercised (239,000) 1.02-1.83 1.05 Expired — — — Forfeited (548,204) 2.02-10.67 8.04 December 31, 2018 shares issuable under options 4,352,391 $0.79-$10.67 $ 4.61 Granted 2,468,129 $0.55-$1.80 0.61 Exercised — — — Expired (761,780) $1.02-$10.67 2.42 Forfeited (891,001) $0.66-$8.67 1.04 December 31, 2019 shares issuable under options 5,167,739 $0.55-$10.67 $ 3.34 |
Schedule of Outstanding and Exercisable Stock Options | The following table summarizes information concerning outstanding and exercisable options as of December 31, 2019: Options Outstanding Options Exercisable Range of Number of Weighted Weighted Number of Weighted $0.00 - $0.78 195,155 9.58 $ 0.65 — $ — $0.79 - $1.50 1,781,369 4.52 1.02 1,265,000 1.03 $1.51 - $5.50 1,884,517 8.25 2.27 482,288 3.30 $5.51 - $10.67 1,306,698 5.97 8.44 1,250,518 7.73 Total 5,167,739 6.44 $ 3.34 2,997,806 $ 4.49 The following table summarizes information concerning outstanding and exercisable options as of December 31, 2018: Options Outstanding Options Exercisable Range of Number of Weighted Weighted Number of Weighted $0.79 - $1.50 1,510,000 3.12 $ 1.06 1,510,000 $ 1.06 $1.51 - $5.50 992,457 8.27 3.23 199,826 2.76 $5.51 - $10.67 1,849,934 6.99 8.24 1,528,686 8.45 Total 4,352,391 5.94 $ 4.61 3,238,512 $ 4.65 |
Nonvested Stock Option Activity | A summary of non-vested options at December 31, 2019 and changes during the year ended December 31, 2019 is presented below: Options Weighted Non-vested options at January 1, 2019 1,113,878 $ 2.00 Granted 2,468,129 0.61 Vested (521,073) 2.20 Forfeited (891,001) 1.04 Non-vested options at December 31, 2019 2,169,933 $ 0.77 |
Schedule of Nonvested Shares of Restricted Stock | A summary of non-vested RSUs and changes during each of the past two years is as follows: Number of Weighted Average Non-vested balance at January 1, 2018 188,629 $8.27 Changes during the period: Shares granted 122,949 3.36 Shares vested (109,940) 8.95 Shares forfeited (26,047) 5.76 Non-vested balance at December 31, 2018 175,591 $4.78 Changes during the period: Shares granted — — Shares vested (76,206) 5.39 Shares forfeited (36,705) 4.74 Non-vested balance at December 31, 2019 62,680 $4.07 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | For the fiscal years ended December 31, 2019, and 2018, the largest components of accrued expenses were (in thousands): 2019 2018 Professional fees $ 1,881 $ 2,153 Payroll 1,789 1,908 Interest expense 1,539 1,042 Medicaid and Medicare 987 383 Rebates 774 714 Wholesaler Fees 747 203 Royalties 377 222 Clinical Studies 334 334 Inventory and supplies 250 1,809 Income Tax 20 45 Capital expenditures 23 275 Other 564 754 $ 9,285 $ 9,842 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Loss From Continuing Operations | Loss before income tax for the years ended December 31, 2019 and 2018 consisted of the following (in thousands): 2019 2018 U.S. operations $ (20,212) $ (32,183) Foreign operations (4,821) (4,135) Global Total $ (25,033) $ (36,318) |
Components of Income Tax Expense (Benefit) | The provision (credit) for income taxes attributable to continuing operations before income taxes for the years ended December 31, 2019 and 2018 is as follows (in thousands): 2019 2018 Current tax expense (benefit): Federal $ — $ — State and local 23 30 Foreign 87 (157) Total current tax expense (benefit) 110 (127) Deferred tax expense: Federal — — State and local — — Foreign (19) 65 Total deferred tax (benefit) expense (19) 65 Total income tax expense (benefit) $ 91 $ (62) |
Effective Income Tax Rate Reconciliation | A comparison of income tax (benefit) expense at the U.S. statutory rate of 21% in 2019 and 2018 to the Company's effective rate is as follows (in thousands): 2019 2018 Expected Statutory benefit $ (5,257) $ (7,627) Other non-deductible expenses 133 256 Change in valuation allowance 4,674 6,572 Research credits (504) — Tax rate differential - foreign vs. U.S. 1,073 791 State income taxes, net of federal benefit 18 23 Prior year true-up (45) (93) Exchange gain (1) 16 $ 91 $ (62) |
Deferred Tax Balances | Deferred tax balances included in the Consolidated Balance Sheets as of December 31, 2019 and 2018 consisted of the following (in thousands): 2019 2018 Deferred Tax Assets: Sales allowances and doubtful accounts $ 2,991 $ 1,964 Inventory reserve 652 962 Deferred revenue — 590 Accrued expenses 206 23 Property, plant and equipment 272 258 Tax operating loss carryforwards 10,851 9,951 Tax credit and other carryforwards 5,996 1,299 Stock compensation 566 538 Total deferred tax assets 21,534 15,585 Less valuation allowance (18,562) (12,120) Net deferred tax assets 2,972 3,465 Deferred Tax Liabilities: Convertible debt conversion features (3,070) (3,514) Foreign exchange (14) (28) Intangible assets (93) (138) Total deferred tax liabilities (3,177) (3,680) Net deferred tax liability $ (205) $ (215) |
Operating Loss and Tax Credit Carryforward | Operating loss, tax credit and other carry forwards as of December 31, 2019 and 2018 were as follows (in thousands): 2019 2018 Federal: Net operating losses (see below) $ 48,531 $ 45,081 Disallowed interest expense (no expiration) 17,783 5,018 Contributions (expiring through 2024) 658 524 Research tax credits (expiring through 2026) 1342 135 State: New Jersey (expiring in 2039) 4,942 2,976 Other states (expiring through 2039) 3,266 2,307 New Jersey research credits (expiring in 2026) 764 — Foreign Net operating losses (no expiration) $ — $ 257 |
Operating Loss Carryforwards Expiration | At December 31, 2019, the Company’s U.S. federal net operating loss carryforwards will expire as follows (in thousands): Year Net Operating Loss 2020 - 2023 $ 8,227 2024 - 2029 9,063 2030 - 2032 9,926 2033 - 2036 6,296 2037 8,116 No expiration but subject to limitation 6,903 Total $ 48,531 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | The following is a summary of certain quarterly financial information for the fiscal years 2019 and 2018: First Second Third Fourth Total (in thousands, except per share data) Year Ended December 31, 2019 Total revenues, net $ 13,122 $ 18,341 $ 18,466 $ 15,967 $ 65,896 Gross profit 5,762 8,541 7,280 1,940 23,523 Operating loss (2,740) 686 209 (6,175) (8,020) Net loss (8,724) (3,989) (7,113) (5,298) (25,124) Net loss attributable to common stockholders (8,724) (3,989) (7,113) (5,298) (25,124) Basic loss per share $ (0.16) $ (0.08) $ (0.13) $ (0.10) $ (0.47) Diluted loss per share $ (0.16) $ (0.08) $ (0.13) $ (0.10) $ (0.47) Year Ended December 31, 2018 Total revenues, net $ 14,545 $ 16,249 $ 18,294 $ 16,777 $ 65,865 Gross profit 5,220 4,784 6,719 5,662 22,385 Operating loss (3,531) (4,910) (1,213) (5,445) (15,099) Net loss (4,802) (13,119) (3,945) (14,390) (36,256) Net loss attributable to common stockholders (4,802) (13,119) (3,945) (14,390) (36,256) Basic loss per share $ (0.09) $ (0.25) $ (0.07) $ (0.27) $ (0.68) Diluted loss per share $ (0.09) $ (0.25) $ (0.07) $ (0.27) $ (0.68) |
Nature of the Business and Go_2
Nature of the Business and Going Concern (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)productsegment | Dec. 31, 2018USD ($) | |
Business Combination Segment Allocation [Line Items] | ||
Operating segments | segment | 1 | |
Accumulated deficit | $ | $ (121,474) | $ (96,350) |
Outstanding borrowings | $ | 214,000 | |
Cash and cash equivalents | $ | $ 15,508 | $ 9,705 |
US | ||
Business Combination Segment Allocation [Line Items] | ||
Generic products marketed | product | 38 | |
Branded generic products marketed | product | 4 | |
CANADA | ||
Business Combination Segment Allocation [Line Items] | ||
Generic and branded generic products marketed | product | 32 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Reconciliation of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of Significant Accounting Policies Details [Line Items] | |||
Cash and cash equivalents | $ 15,508 | $ 9,705 | |
Restricted Cash | 206 | 2,892 | |
Cash, cash equivalents and restricted cash in the statement of cash flows | 16,182 | 13,069 | $ 27,165 |
Other Assets | |||
Summary of Significant Accounting Policies Details [Line Items] | |||
Restricted Cash | 468 | $ 472 | |
2019 Notes | |||
Summary of Significant Accounting Policies Details [Line Items] | |||
Restricted Cash | $ 2,700 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - PP&E Useful Life (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings and improvements | Minimum | |
Summary of Significant Accounting Policies Details Depreciation of Property Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 10 years |
Buildings and improvements | Maximum | |
Summary of Significant Accounting Policies Details Depreciation of Property Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 40 years |
Machinery and equipment | Minimum | |
Summary of Significant Accounting Policies Details Depreciation of Property Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 5 years |
Machinery and equipment | Maximum | |
Summary of Significant Accounting Policies Details Depreciation of Property Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 15 years |
Computer hardware and software | Minimum | |
Summary of Significant Accounting Policies Details Depreciation of Property Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 3 years |
Computer hardware and software | Maximum | |
Summary of Significant Accounting Policies Details Depreciation of Property Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 5 years |
Furniture and fixtures | |
Summary of Significant Accounting Policies Details Depreciation of Property Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)product | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2017USD ($) | |
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Product acquisition cost useful life | 10 years | |||||||||||
Goodwill | $ 491,000 | $ 470,000 | $ 491,000 | $ 470,000 | $ 471,000 | |||||||
Allowance for doubtful accounts | 2,208,000 | 2,636,000 | 2,208,000 | 2,636,000 | ||||||||
Allowance for doubtful accounts related to one customer | 1,700,000 | $ 1,700,000 | ||||||||||
Percentage of net sales for royalty | 40.00% | |||||||||||
Royalties | 377,000 | 222,000 | $ 377,000 | 222,000 | ||||||||
Royalty expense | 1,400,000 | 2,200,000 | ||||||||||
Company product sales, net | 15,967,000 | $ 18,466,000 | $ 18,341,000 | $ 13,122,000 | 16,777,000 | $ 18,294,000 | $ 16,249,000 | $ 14,545,000 | 65,896,000 | 65,865,000 | ||
Net revenues | 156,301,000 | 158,278,000 | ||||||||||
Assets | 206,905,000 | 190,892,000 | 206,905,000 | 190,892,000 | ||||||||
Foreign currency loss | 1,500,000 | |||||||||||
Unrecognized tax benefits | 0 | 0 | ||||||||||
Unrecognized tax benefits that would impact effective tax rate | 0 | 0 | ||||||||||
Cost of revenues | 42,373,000 | $ 43,480,000 | ||||||||||
Right-of-use asset | 2,453,000 | 2,453,000 | ||||||||||
Operating lease liability | 2,633,000 | $ 2,633,000 | ||||||||||
Accounting Standards Update 2016-02 | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Right-of-use asset | $ 1,900,000 | |||||||||||
Operating lease liability | $ 2,000,000 | |||||||||||
Net sales revenue | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Concentration risk | 41.00% | 54.00% | ||||||||||
Accounts receivable | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Concentration risk | 31.00% | 68.00% | ||||||||||
Customer one | Sales | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Company product sales, net | $ 17,600,000 | $ 21,200,000 | ||||||||||
Customer one | Accounts receivable | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Concentration risk | 25.00% | 30.00% | ||||||||||
Customer two | Sales | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Company product sales, net | $ 9,600,000 | $ 7,300,000 | ||||||||||
Customer two | Accounts receivable | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Concentration risk | 6.00% | 19.00% | ||||||||||
Customer three | Sales | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Company product sales, net | $ 6,900,000 | |||||||||||
Customer three | Accounts receivable | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Concentration risk | 19.00% | |||||||||||
Maximum | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Intangible assets useful life | 15 years | |||||||||||
Minimum | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Intangible assets useful life | 10 years | |||||||||||
Net Of SRA Balance | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Accounts receivable net | 30,500,000 | 18,100,000 | $ 30,500,000 | $ 18,100,000 | ||||||||
US | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Products which the company pays royalties | product | 4 | |||||||||||
Wholesalers, Distributors, National Retail Chains | Maximum | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Terms of customer credit | 90 days | |||||||||||
Wholesalers, Distributors, National Retail Chains | Minimum | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Terms of customer credit | 60 days | |||||||||||
Diflorasone Diacetate Ointment USP 0.05% | Net sales revenue | Product Concentration Risk | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Concentration risk | 15.00% | |||||||||||
Shipping and Handling | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Cost of revenues | $ 1,800,000 | 2,100,000 | ||||||||||
Domestic | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Net revenues | 48,400,000 | 45,600,000 | ||||||||||
Assets | 154,300,000 | 132,700,000 | 154,300,000 | 132,700,000 | ||||||||
Foreign | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Net revenues | 17,500,000 | 20,200,000 | ||||||||||
Assets | 52,600,000 | $ 58,200,000 | 52,600,000 | $ 58,200,000 | ||||||||
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | The 2023 Term Loans | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Debt instrument, fair value disclosure | 23,000,000 | 23,000,000 | ||||||||||
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Series B Senior Unsecured Convertible Notes | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Debt instrument, fair value disclosure | 28,900,000 | 28,900,000 | ||||||||||
Reported Value Measurement | Fair Value, Inputs, Level 2 | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Debt instrument, fair value disclosure | 53,100,000 | 53,100,000 | ||||||||||
Reported Value Measurement | Fair Value, Inputs, Level 3 | ||||||||||||
Summary of Significant Accounting Policies Details [Line Items] | ||||||||||||
Fair value of the derivative liability | $ 6,800,000 | $ 6,800,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Computation of Earnings (Loss) per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic earnings (loss) per share computation: | ||||||||||
Net loss attributable to common stockholders —basic and diluted | $ (5,298) | $ (7,113) | $ (3,989) | $ (8,724) | $ (14,390) | $ (3,945) | $ (13,119) | $ (4,802) | $ (25,124) | $ (36,256) |
Weighted average common shares - basic and diluted (in shares) | 53,839,139 | 53,592,930 | ||||||||
Basic and diluted loss per share (in dollars per share) | $ (0.47) | $ (0.68) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 14,117 | $ 10,456 |
Work in progress | 133 | 116 |
Finished goods | 10,989 | 8,391 |
Inventories reserve | (2,208) | (2,667) |
Inventories, net | $ 23,031 | $ 16,296 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 110,492 | $ 102,268 |
Less accumulated depreciation and amortization | (14,143) | (10,493) |
Property, plant and equipment, net | 96,349 | 91,775 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 401 | 401 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 58,959 | 53,813 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 14,897 | 12,229 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 4,771 | 4,182 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 705 | 694 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 30,759 | $ 30,949 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 3,688 | $ 2,579 |
Interest costs capitalized | 4,400 | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Payroll | $ 1,200 | $ 1,800 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Other assets | $ 2,453 |
Total | $ 2,633 |
Lease renewal term | 5 years |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 1,000 |
Operating lease payments | $ 600 |
Operating lease, weighted average remaining lease term | 6 years 3 months 18 days |
Finance lease, weighted average remaining lease term | 4 years 8 months 12 days |
Operating lease, weighted average discount rate | 8.20% |
Finance lease, weighted average discount rate | 8.00% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Weighted average discount rate | 4.86% |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 10 years |
Weighted average discount rate | 8.60% |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 635 |
Amortization of right-of-use assets | 14 |
Interest on lease liabilities | 6 |
Total finance lease cost | $ 20 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Other assets | $ 2,453 |
Other current liabilities | 434 |
Other long-term liabilities | 2,199 |
Total operating lease liabilities | 2,633 |
Property, plant, and equipment | 81 |
Accumulated depreciation | (12) |
Property, plant, and equipment, net | 69 |
Other current liabilities | 12 |
Other long-term liabilities | 57 |
Total finance lease liabilities | $ 69 |
Operating lease liability, other current liabilities | us-gaap:OtherLiabilitiesCurrent |
Operating lease liability, other long-term liabilities | us-gaap:OtherLiabilitiesNoncurrent |
Leases - Schedule of Maturities
Leases - Schedule of Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2020 | $ 635 | |
2021 | 610 | |
2022 | 550 | |
2023 | 549 | |
2024 | 236 | |
Thereafter | 843 | |
Total lease payments | 3,423 | |
Less imputed interest | 790 | |
Total | 2,633 | |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2020 | 18 | |
2021 | 18 | |
2022 | 18 | |
2023 | 18 | |
2024 | 12 | |
Thereafter | 0 | |
Total lease payments | 84 | |
Less imputed interest | 15 | |
Total | $ 69 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2019 | $ 573 | |
2020 | 611 | |
2021 | 633 | |
2022 | 610 | |
2023 | 607 | |
2024 | 200 | |
Total | $ 3,234 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Oct. 31, 2019 | Sep. 18, 2019 | Dec. 21, 2018 | Dec. 13, 2018 | Jun. 01, 2018 | Apr. 27, 2018 | Dec. 31, 2019 | Nov. 30, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 22, 2014 | Dec. 16, 2014 |
Debt Instrument [Line Items] | ||||||||||||||||
Proceeds from revolver | $ 12,500,000 | $ 15,000,000 | ||||||||||||||
Loss on debt restructuring | 920,000 | 0 | ||||||||||||||
Derivative liability | $ 13,545,000 | $ 6,776,000 | $ 0 | 6,776,000 | 0 | |||||||||||
Expiration of debt | 0 | 1,315,000 | ||||||||||||||
2023 Series A Unsecured Convertible Notes for Series B Senior Unsecured Convertible Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt issuance costs | 1,400,000 | 1,400,000 | ||||||||||||||
Loss on debt restructuring | 900,000 | |||||||||||||||
Original derivative amount, before re-measurement | 13,500,000 | 13,500,000 | ||||||||||||||
Derivative liability | 6,800,000 | 6,800,000 | ||||||||||||||
Gain on change in fair value of derivatives | 6,800,000 | |||||||||||||||
Line of Credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Proceeds from revolver | 52,800,000 | |||||||||||||||
Covenant, revenue required to attain | 125,000,000 | |||||||||||||||
Line of Credit | Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount of the Notes | $ 25,000,000 | $ 15,000,000 | $ 25,000,000 | $ 15,000,000 | ||||||||||||
Debt issuance costs | $ 300,000 | |||||||||||||||
Unamortized discount | 500,000 | |||||||||||||||
Proceeds from revolver | $ 2,500,000 | 15,000,000 | $ 5,000,000 | $ 5,000,000 | ||||||||||||
Line of credit maximum borrowing capacity | 25,000,000 | |||||||||||||||
Repayment fee | $ 100,000 | |||||||||||||||
Line of Credit | Revolving Credit Facility | Minimum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate, effective percentage | 6.20% | 6.20% | ||||||||||||||
Line of Credit | Revolving Credit Facility | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate, effective percentage | 9.10% | 9.10% | ||||||||||||||
Line of Credit | Revolving Credit Facility | LIBOR | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable margin | 3.75% | |||||||||||||||
Line of Credit | Revolving Credit Facility | Base Rate | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable margin | 2.75% | |||||||||||||||
Line of Credit | Term Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt issuance costs | 800,000 | |||||||||||||||
Unamortized discount | 1,800,000 | |||||||||||||||
Line of Credit | Term Loan | LIBOR | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable margin | 8.75% | |||||||||||||||
Line of Credit | Term Loan | Base Rate | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable margin | 7.75% | |||||||||||||||
Convertible debt | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate | 3.75% | 3.75% | 3.75% | 3.75% | ||||||||||||
Initial Issuance | Convertible debt | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount of the Notes | $ 125,000,000 | |||||||||||||||
Additional Principal | Convertible debt | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount of the Notes | $ 18,750,000 | |||||||||||||||
Senior Notes, due December 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Loss on debt extinguishment | $ 1,700,000 | $ 200,000 | ||||||||||||||
Reduction of Additional Paid in Capital | (2,900,000) | |||||||||||||||
Senior Notes, due December 2019 | Convertible debt | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Proceeds from convertible debt | 29,300,000 | |||||||||||||||
Senior Notes, due December 2019 | Convertible debt | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount of the Notes | $ 66,090,000 | $ 75,090,000 | $ 66,090,000 | $ 75,090,000 | ||||||||||||
Stated interest rate | 4.75% | 4.75% | 4.75% | 4.75% | ||||||||||||
Debt transfer amount | $ 75,100,000 | |||||||||||||||
Loss on debt extinguishment | $ 2,500,000 | |||||||||||||||
Reduction of Additional Paid in Capital | (7,600,000) | |||||||||||||||
Transaction costs | $ 300,000 | |||||||||||||||
Repayment of term loan | $ 2,700,000 | $ 13,000,000 | ||||||||||||||
Senior Notes, Due 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Effective interest rate | 27.40% | 27.40% | ||||||||||||||
Senior Notes, Due 2023 | Convertible debt | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate | 4.75% | 4.75% | 4.75% | |||||||||||||
Conversion price (in dollars per share) | $ 4.45 | |||||||||||||||
Settlement conversion price (dollars per share) | $ 280.90 | |||||||||||||||
Debt issuance costs | $ 1,600,000 | |||||||||||||||
Unamortized discount | $ 19,000,000 | |||||||||||||||
Interest rate, effective percentage | 11.90% | |||||||||||||||
Series B Senior Unsecured Convertible Notes | Convertible debt | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount of the Notes | $ 34,405,000 | $ 34,405,000 | $ 34,405,000 | |||||||||||||
Stated interest rate | 7.00% | |||||||||||||||
Conversion price (in dollars per share) | $ 0.72 | $ 0.72 | $ 0.72 | |||||||||||||
Debt issuance costs | $ 2,300,000 | |||||||||||||||
Proceeds from convertible debt | $ 34,400,000 | |||||||||||||||
PIK interest, percentage | 8.00% | |||||||||||||||
Net proceeds from the financing | $ 26,900,000 | |||||||||||||||
Series B Senior Unsecured Convertible Notes | Convertible debt | 2023 Series A Unsecured Convertible Notes for Series B Senior Unsecured Convertible Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt issuance costs | $ 200,000 | $ 200,000 | ||||||||||||||
Debt conversion, converted instrument | 5,100,000 | 5,100,000 | ||||||||||||||
Carrying value of original debt | 7,200,000 | 7,200,000 | ||||||||||||||
Fair value of embedded derivative liability | 2,000,000 | 2,000,000 | ||||||||||||||
Future undiscounted cash flows | 6,800,000 | 6,800,000 | ||||||||||||||
Series A Unsecured Convertible Notes due 2023 | Convertible debt | 2023 Series A Unsecured Convertible Notes for Series B Senior Unsecured Convertible Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt conversion, original amount | $ 9,000,000 | 9,000,000 | ||||||||||||||
Term Loan, due 2021 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount of the Notes | $ 25,000,000 | |||||||||||||||
Debt issuance costs | 500,000 | |||||||||||||||
Unamortized discount | 400,000 | |||||||||||||||
Loss on debt extinguishment | $ 1,300,000 | |||||||||||||||
Proceeds from revolver | $ 15,000,000 | |||||||||||||||
Transaction costs | $ 500,000 | |||||||||||||||
Repayment of term loan | 25,600,000 | |||||||||||||||
Repayments of long-term debt, interest | 100,000 | |||||||||||||||
Initial Term Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Paid-in-kind interest option, term | 24 months | |||||||||||||||
Paid-in-kind option, increase to principal balance | $ 8,500,000 | |||||||||||||||
Initial Term Loan | Term Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount of the Notes | 88,464,000 | $ 70,000,000 | $ 88,464,000 | $ 70,000,000 | ||||||||||||
Initial Term Loan | Line of Credit | Term Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount of the Notes | 50,000,000 | |||||||||||||||
Delayed Draw Term Loan A | Term Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt issuance costs | 500,000 | |||||||||||||||
Proceeds from revolver | $ 10,000,000 | |||||||||||||||
Amount drawn on term loan | $ 20,000,000 | |||||||||||||||
Delayed Draw Term Loan A | Term Loan | Minimum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate, effective percentage | 9.10% | 9.10% | ||||||||||||||
Delayed Draw Term Loan A | Term Loan | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate, effective percentage | 12.20% | 12.20% | ||||||||||||||
Delayed Draw Term Loan B | Line of Credit | Term Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount of the Notes | $ 15,000,000 | |||||||||||||||
Carrying value of original debt | $ 88,500,000 | $ 88,500,000 | ||||||||||||||
Expiration of debt | $ 15,000,000 |
Debt - Net Carrying Amount of L
Debt - Net Carrying Amount of Liability Component of Debt Discount (Details) - Convertible Notes Payable - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Face amount of the Notes | $ 213,959,000 | $ 160,090,000 |
Less unamortized discounts and debt issuance costs | 27,589,000 | 20,519,000 |
Carrying amount of the Notes | 186,370,000 | 139,571,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Face amount of the Notes | 25,000,000 | 15,000,000 |
Senior Notes, due December 2019 | ||
Debt Instrument [Line Items] | ||
Face amount of the Notes | 0 | 15,702,000 |
Less unamortized discounts and debt issuance costs | 0 | 1,291,000 |
Total net carrying value | 0 | 14,411,000 |
Senior Notes, due May 2023 | ||
Debt Instrument [Line Items] | ||
Face amount of the Notes | 66,090,000 | 75,090,000 |
Series B Senior Unsecured Convertible Notes | ||
Debt Instrument [Line Items] | ||
Face amount of the Notes | 34,405,000 | 0 |
Senior Notes, due February 2023 | ||
Debt Instrument [Line Items] | ||
Face amount of the Notes | $ 88,464,000 | $ 70,000,000 |
Debt - Debt Maturities Schedule
Debt - Debt Maturities Schedule (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 25,000 |
2023 | 188,959 |
Long-term debt | $ 213,959 |
Derivatives - Terms and Assumpt
Derivatives - Terms and Assumptions in Valuation of Convertible Option of Notes (Details) - Series B Senior Unsecured Convertible Notes - Convertible debt - USD ($) | Dec. 31, 2019 | Oct. 31, 2019 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Term (years) | 3 years 3 months 29 days | 3 years 6 months |
Face amount of the Notes | $ 34,405,000 | $ 34,405,000 |
Coupon, cash | 7.00% | 7.00% |
Coupon, PIK | 8.00% | 8.00% |
Conversion price (in dollars per share) | $ 0.72 | $ 0.72 |
Stock price | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Measurement input | 0.43 | 0.63 |
Risk free rate | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Measurement input | 0.016 | 0.015 |
Volatility | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Measurement input | 0.473 | 0.473 |
Derivatives - Schedule of Liabi
Derivatives - Schedule of Liabilities Measured and Recognized at Fair Value on a Recurring (Details) - Fair Value, Recurring - Series B Senior Unsecured Convertible Notes - Convertible debt $ in Thousands | Dec. 31, 2019USD ($) |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative liability related to Series B Convertible Notes | $ 6,776 |
Fair Value, Inputs, Level 1 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative liability related to Series B Convertible Notes | 0 |
Fair Value, Inputs, Level 2 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative liability related to Series B Convertible Notes | 0 |
Fair Value, Inputs, Level 3 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative liability related to Series B Convertible Notes | $ 6,776 |
Derivative - Summary of Changes
Derivative - Summary of Changes in Fair Value (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities, Rollforward [Roll Forward] | |||
Beginning balance | $ 13,545 | $ 0 | |
Fair value of convertible feature of Series B Convertible Notes | (6,769) | (6,769) | $ 0 |
Ending balance | $ 6,776 | $ 6,776 | $ 0 |
Revenues, Recognition and All_3
Revenues, Recognition and Allowances - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)transaction_typesegment | Dec. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Types of transactions | transaction_type | 3 | |
Operating segments | segment | 1 | |
Allowance for doubtful accounts | $ 30,500 | $ 18,100 |
Allowance for doubtful accounts, current | 2,208 | $ 2,636 |
Allowance for doubtful accounts related to one customer | $ 1,700 |
Revenues, Recognition and All_4
Revenues, Recognition and Allowances - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue, net | $ 15,967 | $ 18,466 | $ 18,341 | $ 13,122 | $ 16,777 | $ 18,294 | $ 16,249 | $ 14,545 | $ 65,896 | $ 65,865 |
Company product sales | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue, net | 64,291 | 59,591 | ||||||||
Contract manufacturing sales | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue, net | 1,362 | 6,047 | ||||||||
Research and development services and other income | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue, net | 243 | 227 | ||||||||
Topical | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue, net | 46,150 | 35,118 | ||||||||
Injectables | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue, net | $ 18,141 | $ 24,473 |
Revenues, Recognition and All_5
Revenues, Recognition and Allowances - Adjustments to Gross Product Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||||||||
Gross product sales | $ 156,301 | $ 158,278 | ||||||||
Reduction to gross product sales: | ||||||||||
Chargebacks and billbacks | 60,008 | 60,770 | ||||||||
Wholesaler fees for service | 9,000 | 5,503 | ||||||||
Sales discounts and other allowances | 23,002 | 32,414 | ||||||||
Total reduction to gross product sales | 92,010 | 98,687 | ||||||||
Total product sales, net | $ 15,967 | $ 18,466 | $ 18,341 | $ 13,122 | $ 16,777 | $ 18,294 | $ 16,249 | $ 14,545 | 65,896 | 65,865 |
Company Product | ||||||||||
Reduction to gross product sales: | ||||||||||
Total product sales, net | $ 64,291 | $ 59,591 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2015 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 491 | $ 470 | $ 471 | |
Amortization of intangibles | 3,008 | 3,096 | ||
In-process research and development (IPR&D) | ||||
Business Acquisition [Line Items] | ||||
Intangible asset impairment | 1,200 | |||
Product Acquisition Costs | ||||
Business Acquisition [Line Items] | ||||
Amortization of intangibles | $ 0 | |||
Intangible asset impairment | $ 700 | |||
Alveda Acquisition | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 400 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill beginning balance | $ 470 | $ 471 |
Foreign currency translation | 21 | (1) |
Goodwill ending balance | $ 491 | $ 470 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Major Categories of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets accumulated amortization | $ (12,386) | $ (9,378) |
Finite-lived intangible assets, net carrying amount | 44,645 | 48,375 |
Intangible assets gross carrying amount | 57,031 | 57,753 |
Intangible assets net carrying amount | 44,645 | 48,375 |
In-process research and development (IPR&D) | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 327 | 719 |
Trademarks and Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 39,943 | 40,169 |
Intangible assets accumulated amortization | (10,885) | (8,239) |
Finite-lived intangible assets, net carrying amount | $ 29,058 | $ 31,930 |
Intangible assets remaining amortization period | 10 years 9 months 18 days | 11 years 9 months 18 days |
Product Acquisition Costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | $ 13,103 | $ 13,308 |
Intangible assets accumulated amortization | 0 | 0 |
Finite-lived intangible assets, net carrying amount | 13,103 | 13,308 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 3,658 | 3,557 |
Intangible assets accumulated amortization | (1,501) | (1,139) |
Finite-lived intangible assets, net carrying amount | $ 2,157 | $ 2,418 |
Intangible assets remaining amortization period | 5 years 10 months 24 days | 6 years 10 months 24 days |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Changes in Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible assets net beginning balance | $ 48,375 | |
Amortization | (3,008) | $ (3,096) |
Intangible assets net ending balance | 44,645 | 48,375 |
In-process research and development (IPR&D) | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Indefinite intangible assets net beginning balance | 719 | |
Intangible assets placed in service | (301) | |
Foreign currency translation | (91) | |
Indefinite intangible assets net ending balance | 327 | 719 |
Product Acquisition Costs | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible assets net beginning balance | 13,308 | |
Amortization | 0 | |
Intangible assets placed in service | 0 | |
Foreign currency translation | (205) | |
Intangible assets net ending balance | 13,103 | 13,308 |
Trademarks and Technology | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible assets net beginning balance | 31,930 | |
Amortization | (2,646) | |
Intangible assets placed in service | 301 | |
Foreign currency translation | (527) | |
Intangible assets net ending balance | 29,058 | 31,930 |
Customer Relationships | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible assets net beginning balance | 2,418 | |
Amortization | (362) | |
Intangible assets placed in service | 0 | |
Foreign currency translation | 101 | |
Intangible assets net ending balance | $ 2,157 | $ 2,418 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Schedule of Amortization Expense (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 3,008 |
2021 | 3,008 |
2022 | 3,008 |
2023 | 3,008 |
2024 | 3,008 |
Thereafter | 16,175 |
Total | $ 31,215 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets - Useful Lives of Intangibles (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Product Acquisition Costs | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets useful life | 10 years |
Trademarks and Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets useful life | 15 years |
Customer Relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets useful life | 10 years |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | May 25, 2016 | Apr. 12, 2010 | Dec. 31, 2019 | Dec. 31, 2018 | May 21, 2018 | Dec. 31, 2017 | May 29, 2010 |
Stock Based Compensation Details [Line Items] | |||||||
Number of options outstanding (in shares) | 2,334,731 | ||||||
Shares of common stock outstanding | 53,850,427 | 53,774,221 | |||||
Intrinsic value of options outstanding | $ 0 | $ 0.5 | |||||
Intrinsic value of options exercisable | 0 | 0.5 | |||||
Intrinsic value of options exercised | 0 | 0.1 | |||||
Unrecognized compensation costs | 1 | ||||||
General and Administrative Expense | |||||||
Stock Based Compensation Details [Line Items] | |||||||
Stock option based expenses | $ 0.9 | $ 1.5 | |||||
Director Stock Option Plan - 1999 | |||||||
Stock Based Compensation Details [Line Items] | |||||||
Number of options outstanding (in shares) | 485,000 | 500,000 | |||||
Plan 2009 | |||||||
Stock Based Compensation Details [Line Items] | |||||||
Number of options outstanding (in shares) | 1,847,608 | 2,458,106 | |||||
Shares approved and authorized (in shares) | 2,500,000 | 5,000,000 | |||||
Additional shares authorized (in shares) | 2,000,000 | ||||||
Maximum number of shares to any individual (in shares) | 1,000,000 | ||||||
Shares of common stock outstanding | 1,868,302 | 1,853,925 | |||||
Options transferred (in shares) | 1,369,038 | ||||||
Plan 2016 | |||||||
Stock Based Compensation Details [Line Items] | |||||||
Shares approved and authorized (in shares) | 2,000,000 | 4,000,000 | |||||
Maximum number of shares to any individual (in shares) | 1,000,000 | ||||||
Shares of common stock outstanding | 136,496 | 74,667 | |||||
Plan 2016, Plan 2009 And Director Plan | |||||||
Stock Based Compensation Details [Line Items] | |||||||
Number of options outstanding (in shares) | 5,167,739 | 4,352,391 | |||||
Restricted Stock Units (RSUs) | |||||||
Stock Based Compensation Details [Line Items] | |||||||
RSUs outstanding (in shares) | 62,680 | 175,591 | 188,629 | ||||
Restricted Stock Units (RSUs) | Plan 2009 | |||||||
Stock Based Compensation Details [Line Items] | |||||||
RSUs outstanding (in shares) | 14,377 | ||||||
Restricted Stock Units (RSUs) | Plan 2016 | |||||||
Stock Based Compensation Details [Line Items] | |||||||
RSUs outstanding (in shares) | 62,680 | 161,214 | |||||
Restricted Stock | |||||||
Stock Based Compensation Details [Line Items] | |||||||
Stock option based expenses | $ 0.2 | $ 0.5 | |||||
Unrecognized compensation costs | $ 0.1 | ||||||
Common Stock | Plan 2016 | |||||||
Stock Based Compensation Details [Line Items] | |||||||
Number of options outstanding (in shares) | 2,835,131 | 1,394,285 | |||||
Minimum | Restricted Stock | |||||||
Stock Based Compensation Details [Line Items] | |||||||
Vesting period | 1 year | ||||||
Maximum | Restricted Stock | |||||||
Stock Based Compensation Details [Line Items] | |||||||
Vesting period | 3 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Valuation Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Based Compensation [Line Items] | ||
Expected dividends | 0.00% | 0.00% |
Risk free rate | 2.44% | |
Minimum | ||
Stock Based Compensation [Line Items] | ||
Risk free rate | 1.38% | |
Expected volatility | 64.33% | 52.70% |
Expected term (in years) | 3 years 2 months 12 days | 3 years 2 months 12 days |
Maximum | ||
Stock Based Compensation [Line Items] | ||
Risk free rate | 2.47% | |
Expected volatility | 76.81% | 72.50% |
Expected term (in years) | 3 years 3 months 18 days | 3 years 3 months 18 days |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options outstanding (in shares), ending | 2,334,731 | |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options outstanding (in shares), beginning | 4,352,391 | 4,299,810 |
Number of options granted (in shares) | 2,468,129 | 839,785 |
Number of options exercised (in shares) | 0 | (239,000) |
Number of options expired (in shares) | (761,780) | 0 |
Number of options forfeited (in shares) | (891,001) | (548,204) |
Number of options outstanding (in shares), ending | 5,167,739 | 4,352,391 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Shares issuable under options exercise price per share (in dollars per share) | $ 4.61 | $ 5.09 |
Granted, exercise price per share (in dollars per share) | 0.61 | 3.34 |
Exercised, exercise price per share (in dollars per share) | 0 | 1.05 |
Expired, exercise price per share (in dollars per share) | 2,420 | 0 |
Forfeited, exercise price per share (in dollars per share) | 1.04 | 8.04 |
Shares issuable under options exercise price per share (in dollars per share) | 3.34 | 4.61 |
Employee Stock Option | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Shares issuable under options exercise price per share (in dollars per share) | 0.79 | 0.79 |
Granted, exercise price per share (in dollars per share) | 0.55 | 1.73 |
Exercised, exercise price per share (in dollars per share) | 1.02 | |
Expired, exercise price per share (in dollars per share) | 1.02 | |
Forfeited, exercise price per share (in dollars per share) | 0.66 | 2.02 |
Shares issuable under options exercise price per share (in dollars per share) | 0.55 | 0.79 |
Employee Stock Option | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Shares issuable under options exercise price per share (in dollars per share) | 10.67 | 10.67 |
Granted, exercise price per share (in dollars per share) | 1.80 | 4.25 |
Exercised, exercise price per share (in dollars per share) | 1.83 | |
Expired, exercise price per share (in dollars per share) | 10.67 | |
Forfeited, exercise price per share (in dollars per share) | 8.67 | 10.67 |
Shares issuable under options exercise price per share (in dollars per share) | $ 10.67 | $ 10.67 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Outstanding and Exercisable Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, number of options (in shares) | 5,167,739 | 4,352,391 |
Options outstanding, weighted average remaining contractual term | 6 years 5 months 8 days | 5 years 11 months 8 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 3.34 | $ 4.61 |
Options exercisable, number of options (in shares) | 2,997,806 | 3,238,512 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 4.49 | $ 4.65 |
$0.00 - $0.78 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, exercise price range, lower range limit (in dollars per share) | 0 | |
Options outstanding, exercise price range, upper range limit (in dollars per share) | $ 0.78 | |
Options outstanding, number of options (in shares) | 195,155 | |
Options outstanding, weighted average remaining contractual term | 9 years 6 months 29 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.65 | |
Options exercisable, number of options (in shares) | 0 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0 | |
$0.79 - $1.50 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, exercise price range, lower range limit (in dollars per share) | 0.79 | 0.79 |
Options outstanding, exercise price range, upper range limit (in dollars per share) | $ 1.50 | $ 1.50 |
Options outstanding, number of options (in shares) | 1,781,369 | 1,510,000 |
Options outstanding, weighted average remaining contractual term | 4 years 6 months 7 days | 3 years 1 month 13 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 1.02 | $ 1.06 |
Options exercisable, number of options (in shares) | 1,265,000 | 1,510,000 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 1.03 | $ 1.06 |
$1.51 - $5.50 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, exercise price range, lower range limit (in dollars per share) | 1.51 | 1.51 |
Options outstanding, exercise price range, upper range limit (in dollars per share) | $ 5.50 | $ 5.50 |
Options outstanding, number of options (in shares) | 1,884,517 | 992,457 |
Options outstanding, weighted average remaining contractual term | 8 years 3 months | 8 years 3 months 7 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 2.27 | $ 3.23 |
Options exercisable, number of options (in shares) | 482,288 | 199,826 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 3.30 | $ 2.76 |
$5.51 - $10.67 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, exercise price range, lower range limit (in dollars per share) | 5.51 | 5.51 |
Options outstanding, exercise price range, upper range limit (in dollars per share) | $ 10.67 | $ 10.67 |
Options outstanding, number of options (in shares) | 1,306,698 | 1,849,934 |
Options outstanding, weighted average remaining contractual term | 5 years 11 months 19 days | 6 years 11 months 26 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 8.44 | $ 8.24 |
Options exercisable, number of options (in shares) | 1,250,518 | 1,528,686 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 7.73 | $ 8.45 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Non-Vested Options (Details) - Non Vested | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Non-vested options at beginning of period (in shares) | shares | 1,113,878 |
Options, granted (in shares) | shares | 2,468,129 |
Option, Vested (in shares) | shares | (521,073) |
Options, Forfeited (in shares) | shares | (891,001) |
Non-vested options at end of period (in shares) | shares | 2,169,933 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested options at beginning of period (in dollars per share) | $ / shares | $ 2 |
Granted (in dollars per share) | $ / shares | 0.61 |
Vested (in dollars per share) | $ / shares | 2.20 |
Forfeited (in dollars per share) | $ / shares | 1.04 |
Non-vested options at end of period (in dollars per share) | $ / shares | $ 0.77 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary and Changes of Non-Vested Restricted Stock (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of restricted stock, non-vested balance beginning (in shares) | 175,591 | 188,629 |
Shares granted (in shares) | 0 | 122,949 |
Shares vested (in shares) | (76,206) | (109,940) |
Shares forfeited (in shares) | (36,705) | (26,047) |
Number of restricted stock, non-vested balance ending (in shares) | 62,680 | 175,591 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Exercise price, non-vested balance beginning (in dollars per share) | $ 4.78 | $ 8.27 |
Shares granted - exercise price (in dollars per share) | 0 | 3.36 |
Shares vested - exercise price (in dollars per share) | 5.39 | 8.95 |
Shares forfeited - exercise price (in dollars per share) | 4.74 | 5.76 |
Exercise price, non-vested balance beginning (in dollars per share) | $ 4.07 | $ 4.78 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Professional fees | $ 1,881 | $ 2,153 |
Payroll | 1,789 | 1,908 |
Interest expense | 1,539 | 1,042 |
Medicaid and Medicare | 987 | 383 |
Rebates | 774 | 714 |
Wholesaler Fees | 747 | 203 |
Royalties | 377 | 222 |
Clinical Studies | 334 | 334 |
Inventory and supplies | 250 | 1,809 |
Income Tax | 20 | 45 |
Capital expenditures | 23 | 275 |
Other | 564 | 754 |
Accrued Liabilities | $ 9,285 | $ 9,842 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Examination [Line Items] | ||
Income tax expense / (benefit) | $ 91 | $ (62) |
Deferred tax assets valuation allowance | 18,562 | $ 12,120 |
Valuation allowance increase (decrease) | 6,500 | |
Decrease related to changes in deferred taxes | 5,600 | |
Valuation allowance, net operating loss | $ 900 | |
Change in ownership percentage (more than) | 50.00% | |
Stockholder ownership (or greater) | 5.00% | |
Not Subject to Limitations | ||
Income Tax Examination [Line Items] | ||
Proceeds from sale of operating loss carryforward | $ 26,500 | |
Subject to Limitations | Minimum | ||
Income Tax Examination [Line Items] | ||
Net operating losses | 1,000 | |
Subject to Limitations | Maximum | ||
Income Tax Examination [Line Items] | ||
Net operating losses | $ 2,300 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
U.S. operations | $ (20,212) | $ (32,183) |
Foreign operations | (4,821) | (4,135) |
Loss before income tax expense | $ (25,033) | $ (36,318) |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax expense (benefit): | ||
Federal | $ 0 | $ 0 |
State and local | 23 | 30 |
Foreign | 87 | (157) |
Total current tax expense (benefit) | 110 | (127) |
Deferred tax expense: | ||
Federal | 0 | 0 |
State and local | 0 | 0 |
Foreign | (19) | 65 |
Total deferred tax (benefit) expense | (19) | 65 |
Total income tax expense (benefit) | $ 91 | $ (62) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Expected Statutory benefit | $ (5,257) | $ (7,627) |
Other non-deductible expenses | 133 | 256 |
Change in valuation allowance | 4,674 | 6,572 |
Research credits | (504) | 0 |
Tax rate differential - foreign vs. U.S. | 1,073 | 791 |
State income taxes, net of federal benefit | 18 | 23 |
Prior year true-up | (45) | (93) |
Exchange gain | (1) | 16 |
Total income tax expense (benefit) | $ 91 | $ (62) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets: | ||
Sales allowances and doubtful accounts | $ 2,991 | $ 1,964 |
Inventory reserve | 652 | 962 |
Deferred revenue | 0 | 590 |
Accrued expenses | 206 | 23 |
Property, plant and equipment | 272 | 258 |
Tax operating loss carryforwards | 10,851 | 9,951 |
Tax credit and other carryforwards | 5,996 | 1,299 |
Stock compensation | 566 | 538 |
Total deferred tax assets | 21,534 | 15,585 |
Less valuation allowance | (18,562) | (12,120) |
Net deferred tax assets | 2,972 | 3,465 |
Deferred Tax Liabilities: | ||
Convertible debt conversion features | (3,070) | (3,514) |
Foreign exchange | (14) | (28) |
Intangible assets | (93) | (138) |
Total deferred tax liabilities | (3,177) | (3,680) |
Net deferred tax liability | $ (205) | $ (215) |
Income Taxes - Schedule of Oper
Income Taxes - Schedule of Operating Loss and Tax Credit Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Loss Carryforwards [Line Items] | ||
Contributions (expiring through 2024) | $ 48,531 | |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating losses | 48,531 | $ 45,081 |
Disallowed interest expense (no expiration) | 17,783 | 5,018 |
Contributions (expiring through 2024) | 658 | 524 |
Research tax credits (expiring through 2026) | 1,342 | 135 |
State | New Jersey (expiring in 2039) | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating losses | 4,942 | 2,976 |
State | Other states (expiring through 2039) | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating losses | 3,266 | 2,307 |
State | New Jersey research credits (expiring in 2026) | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating losses | 764 | 0 |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating losses | $ 0 | $ 257 |
Income Taxes - Schedule of Fede
Income Taxes - Schedule of Federal Net Operating Loss Carryforward Expirations (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Income Tax Disclosure [Line Items] | |
Net operating loss | $ 48,531 |
2020 - 2023 | |
Income Tax Disclosure [Line Items] | |
Net operating loss | 8,227 |
2024 - 2029 | |
Income Tax Disclosure [Line Items] | |
Net operating loss | 9,063 |
2030 - 2032 | |
Income Tax Disclosure [Line Items] | |
Net operating loss | 9,926 |
2033 - 2036 | |
Income Tax Disclosure [Line Items] | |
Net operating loss | 6,296 |
2037 | |
Income Tax Disclosure [Line Items] | |
Net operating loss | 8,116 |
No expiration but subject to limitation | |
Income Tax Disclosure [Line Items] | |
Net operating loss | $ 6,903 |
Commitments - Narrative (Detail
Commitments - Narrative (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Other commitment | $ 2.4 |
Legal and U.S. Regulatory Pro_2
Legal and U.S. Regulatory Proceedings (Details) $ in Millions | Oct. 20, 2017USD ($)drugclaim | Dec. 31, 2019lawsuittransaction_typedefendant | Dec. 13, 2018drug |
Anti-Trust Lawsuit | |||
Legal and U.S. Regulatory Proceedings Details [Line Items] | |||
Number of actions | lawsuit | 13 | ||
Number of complaints not consolidated | transaction_type | 1 | ||
Number of defendants | defendant | 47 | ||
Stayma Consulting Services | |||
Legal and U.S. Regulatory Proceedings Details [Line Items] | |||
Number of generic drug products | 2 | ||
Number of claims under arbitration | claim | 3 | ||
Damages sought | $ | $ 1.7 | ||
Breach of Contract | |||
Legal and U.S. Regulatory Proceedings Details [Line Items] | |||
Number of generic drug products | 2 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Maximum annual contribution per employee, percent | 100.00% | |
Maximum annual contribution per employee | $ 19,000 | $ 18,500 |
Cost recognized | 368,700 | 358,200 |
Catchup Contribution Max | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Maximum annual contribution per employee | $ 6,000 | $ 6,000 |
Tranche one | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer matching contribution, percent of match | 100.00% | |
Percentage of participant contribution | 3.00% | |
Tranche two | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer matching contribution, percent of match | 50.00% | |
Percentage of participant contribution | 2.00% |
Quarterly Results (Unaudited)_2
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenue, net | $ 15,967 | $ 18,466 | $ 18,341 | $ 13,122 | $ 16,777 | $ 18,294 | $ 16,249 | $ 14,545 | $ 65,896 | $ 65,865 |
Gross profit | 1,940 | 7,280 | 8,541 | 5,762 | 5,662 | 6,719 | 4,784 | 5,220 | 23,523 | 22,385 |
Operating loss | (6,175) | 209 | 686 | (2,740) | (5,445) | (1,213) | (4,910) | (3,531) | (8,020) | (15,099) |
Net loss | (5,298) | (7,113) | (3,989) | (8,724) | (14,390) | (3,945) | (13,119) | (4,802) | (25,124) | (36,256) |
Net income (loss) attributable to common stockholders | $ (5,298) | $ (7,113) | $ (3,989) | $ (8,724) | $ (14,390) | $ (3,945) | $ (13,119) | $ (4,802) | $ (25,124) | $ (36,256) |
Basic loss per share (in dollars per share) | $ (0.10) | $ (0.13) | $ (0.08) | $ (0.16) | $ (0.27) | $ (0.07) | $ (0.25) | $ (0.09) | $ (0.47) | $ (0.68) |
Diluted loss per share (in dollars per share) | $ (0.10) | $ (0.13) | $ (0.08) | $ (0.16) | $ (0.27) | $ (0.07) | $ (0.25) | $ (0.09) | $ (0.47) | $ (0.68) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 06, 2020 | Dec. 31, 2019 |
Line of Credit | Revolver | Maximum | ||
Subsequent Event [Line Items] | ||
Interest rate, effective percentage | 9.10% | |
Line of Credit | Revolver | Minimum | ||
Subsequent Event [Line Items] | ||
Interest rate, effective percentage | 6.20% | |
Line of Credit | Revolver | LIBOR | ||
Subsequent Event [Line Items] | ||
Applicable margin | 3.75% | |
Line of Credit | Revolver | Base Rate | ||
Subsequent Event [Line Items] | ||
Applicable margin | 2.75% | |
Line of Credit | Term Loan | LIBOR | ||
Subsequent Event [Line Items] | ||
Applicable margin | 8.75% | |
Line of Credit | Term Loan | Base Rate | ||
Subsequent Event [Line Items] | ||
Applicable margin | 7.75% | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Exercisable pre-reverse stock split, up to (in shares) | 5,389,949 | |
Exercise price, pre-reverse stock split (in dollars per share) | $ 0.01 | |
Term of warrant remaining exercisable | 5 years | |
Subsequent Event | Line of Credit | ||
Subsequent Event [Line Items] | ||
Interest rate, effective percentage | 4.25% | |
Liquidity of the Company and its subsidiaries | $ 10 | |
Subsequent Event | Line of Credit | Revolver | LIBOR | Maximum | ||
Subsequent Event [Line Items] | ||
Applicable margin | 5.50% | |
Subsequent Event | Line of Credit | Revolver | LIBOR | Minimum | ||
Subsequent Event [Line Items] | ||
Applicable margin | 1.50% | |
Subsequent Event | Line of Credit | Revolver | Base Rate | ||
Subsequent Event [Line Items] | ||
Applicable margin | 4.50% | |
Subsequent Event | Line of Credit | Term Loan | LIBOR | Maximum | ||
Subsequent Event [Line Items] | ||
Applicable margin | 13.00% | |
Subsequent Event | Line of Credit | Term Loan | LIBOR | Minimum | ||
Subsequent Event [Line Items] | ||
Applicable margin | 1.50% | |
Subsequent Event | Line of Credit | Term Loan | Base Rate | ||
Subsequent Event [Line Items] | ||
Applicable margin | 12.00% |
SCHEDULE II-VALUATION AND QUA_2
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Tax Valuation Allowance | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowances and reserves balance, beginning of year | $ 12,120 | $ 13,309 |
Charged to Costs and Expenses | (19) | 67 |
Charged other Accounts | 6,461 | (1,256) |
Deductions | 0 | 0 |
Valuation allowances and reserves balance, end of year | 18,562 | 12,120 |
Allowance for Doubtful Accounts | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowances and reserves balance, beginning of year | 2,636 | 2,185 |
Charged to Costs and Expenses | 208 | 451 |
Charged other Accounts | 0 | 0 |
Deductions | 636 | 0 |
Valuation allowances and reserves balance, end of year | 2,208 | 2,636 |
Reserve for Inventory Obsolescence | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowances and reserves balance, beginning of year | 2,667 | 1,304 |
Charged to Costs and Expenses | 2,297 | 3,343 |
Charged other Accounts | 0 | 0 |
Deductions | 2,754 | 1,980 |
Valuation allowances and reserves balance, end of year | $ 2,210 | $ 2,667 |