Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | Accelerate Diagnostics, Inc. | |
Entity Central Index Key | 727,207 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 54,198,743 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 61,622 | $ 28,513 |
Investments | 118,982 | 80,648 |
Trade accounts receivable | 1,440 | 1,946 |
Inventory | 9,406 | 8,063 |
Prepaid expenses | 940 | 850 |
Other current assets | 494 | 468 |
Total current assets | 192,884 | 120,488 |
Property and equipment, net | 7,412 | 4,890 |
Intellectual property, net | 119 | 134 |
Other non-current assets | 241 | 0 |
Total assets | 200,656 | 125,512 |
Current liabilities: | ||
Accounts payable | 1,559 | 2,080 |
Accrued liabilities | 3,518 | 3,636 |
Accrued interest | 191 | 0 |
Deferred revenue and income | 202 | 1,071 |
Total current liabilities | 5,470 | 6,787 |
Other long term liabilities | 26 | 21 |
Convertible notes | 117,754 | 0 |
Total liabilities | 123,250 | 6,808 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred shares | 0 | 0 |
Common stock | 54 | 56 |
Contributed capital | 430,734 | 360,620 |
Treasury Stock | (45,067) | 0 |
Accumulated deficit | (308,156) | (241,972) |
Accumulated other comprehensive loss | (159) | 0 |
Total stockholders’ equity | 77,406 | 118,704 |
Total liabilities and stockholders’ equity | $ 200,656 | $ 125,512 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized (shares) | 5,000,000 | 5,000,000 |
Preferred Stock, shares outstanding (shares) | 0 | 0 |
Common Stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (shares) | 75,000,000 | 75,000,000 |
Common Stock, shares issued (shares) | 54,196,876 | 55,673,810 |
Common Stock, shares outstanding (shares) | 54,196,876 | 55,673,810 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,355 | $ 828 | $ 3,848 | $ 2,058 |
Cost of sales | 680 | 191 | 1,889 | 352 |
Gross profit | 675 | 637 | 1,959 | 1,706 |
Costs and expenses: | ||||
Research and development | 7,891 | 6,351 | 20,734 | 16,166 |
Sales, general and administrative | 12,153 | 11,601 | 41,835 | 33,589 |
Total costs and expenses | 20,044 | 17,952 | 62,569 | 49,755 |
Loss from operations | (19,369) | (17,315) | (60,610) | (48,049) |
Other income (expense): | ||||
Interest expense | (3,357) | 0 | (6,720) | 0 |
Foreign currency exchange loss | (133) | (40) | (331) | (73) |
Interest income | 908 | 323 | 1,983 | 612 |
Other income, net | 0 | 2 | ||
Other (expense), net | (25) | (3) | ||
Total other income (expense), net | (2,582) | 285 | (5,093) | 536 |
Net loss before income taxes | (21,951) | (17,030) | (65,703) | (47,513) |
Provision for income taxes | (147) | (45) | (432) | (220) |
Net loss | $ (22,098) | $ (17,075) | $ (66,135) | $ (47,733) |
Basic and diluted net loss per share (usd per share) | $ (0.41) | $ (0.31) | $ (1.21) | $ (0.89) |
Weighted average shares outstanding (shares) | 54,145 | 55,316 | 54,591 | 53,603 |
Other comprehensive loss: | ||||
Net loss | $ (22,098) | $ (17,075) | $ (66,135) | $ (47,733) |
Net unrealized (loss) gain on available-for-sale investments | 1 | (7) | (54) | (4) |
Foreign currency translation adjustment | (26) | 91 | (105) | 295 |
Comprehensive loss | $ (22,123) | $ (16,991) | $ (66,294) | $ (47,442) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (66,135,000) | $ (47,733,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 1,734,000 | 1,595,000 |
Amortization of intangible assets | 15,000 | 9,000 |
Amortization of investment discount | (413,000) | 298,000 |
Equity-based compensation | 12,476,000 | 10,970,000 |
Amortization of debt discount and issuance costs | 4,529,000 | 0 |
Loss on disposal of property and equipment | 540,000 | 3,000 |
(Increase) decrease in assets: | ||
Accounts receivable | 506,000 | (1,077,000) |
Inventory | (5,206,000) | (7,079,000) |
Prepaid expense and other | 55,000 | (392,000) |
Other current assets | (26,000) | (277,000) |
Other non-current assets | (241,000) | 0 |
Increase (decrease) in liabilities: | ||
Accounts payable | (524,000) | 359,000 |
Accrued liabilities | (18,000) | 780,000 |
Accrued interest | 191,000 | 0 |
Deferred revenue and income | (918,000) | 46,000 |
Deferred compensation | 5,000 | 0 |
Net cash used in operating activities | (53,430,000) | (42,498,000) |
Cash flows from investing activities: | ||
Purchases of equipment | (842,000) | (2,055,000) |
Purchases of available-for-sale securities | (115,634,000) | (68,423,000) |
Sales of available-for-sale securities | 3,000,000 | 9,522,000 |
Maturity of available-for-sale securities | 74,496,000 | 30,049,000 |
Net cash used in investing activities | (38,980,000) | (30,907,000) |
Cash flows from financing activities: | ||
Issuance of common stock net of issuance costs | 447,000 | 83,741,000 |
Exercise of options and warrants | 3,710,000 | 4,562,000 |
Proceeds from issuance of convertible note | 171,500,000 | 0 |
Prepayment of forward stock repurchase transaction | (45,069,000) | 0 |
Payment of debt issuance costs | (4,992,000) | 0 |
Net cash provided by financing activities | 125,596,000 | 88,303,000 |
Effect of exchange rate on cash | (77,000) | 289,000 |
Increase in cash and cash equivalents | 33,109,000 | 15,187,000 |
Cash and cash equivalents, beginning of period | 28,513,000 | 19,244,000 |
Cash and cash equivalents, end of period | 61,622,000 | 34,431,000 |
Non-cash investing activities: | ||
Transfer of instruments from inventory to property and equipment | 4,061,000 | 0 |
Interest paid | 2,001,000 | 0 |
Income taxes paid | $ 435,000 | $ 0 |
Organization and Nature of Busi
Organization and Nature of Business; Basis of Presentation; Principles of Consolidation; Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization and Nature of Business; Basis of Presentation; Principles of Consolidation; Significant Accounting Policies | NOTE 1. ORGANIZATION AND NATURE OF BUSINESS; BASIS OF PRESENTATION; PRINCIPLES OF CONSOLIDATION; SIGNIFICANT ACCOUNTING POLICIES Accelerate Diagnostics, Inc. (“we” or “us” or “our” or “Accelerate” or “the Company”) is an in vitro diagnostics company dedicated to providing solutions that improve patient outcomes and lower healthcare costs through the rapid diagnosis of serious infections. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 , as filed with the SEC on March 1, 2018. The condensed consolidated balance sheet as of December 31, 2017 included herein was derived from the audited financial statements as of that date, but does not include all disclosures such as notes required by U.S. GAAP. The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods presented, but are not necessarily indicative of the results of operations to be anticipated for the entire year ending December 31, 2018 , or any future period. All amounts are rounded to the nearest thousand dollars unless otherwise indicated. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after elimination of intercompany transactions and balances. Use of Estimates The preparation of the Company’s consolidated financial statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to accounts receivable, inventories, property and equipment, intangible assets, accruals, warranty liabilities, tax valuation accounts and stock-based compensation. Actual results could differ materially from those estimates. Estimated Fair Value of Financial Instruments The Company follows Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements, which has defined fair value and requires the Company to establish a framework for measuring fair value and disclose fair value measurements. The framework requires the valuation of assets and liabilities subject to fair value measurements using a three tiered approach and fair value measurement be classified and disclosed in one of the following three categories: • Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; • Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). The carrying amounts of financial instruments such as cash and cash equivalents, trade accounts receivable, prepaid expenses, other current assets, accounts payable, accrued liabilities, and other current liabilities approximate the related fair values due to the short-term maturities of these instruments. The estimated fair value of the Company’s long-term debt represents a Level 2 measurement. See Note 11, Convertible Notes for further detail on the Company’s long-term debt. Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less at time of purchase are considered to be cash equivalents. Cash and cash equivalents include overnight repurchase agreement accounts and other investments. As part of our cash management process, excess operating cash is invested in overnight repurchase agreements with our bank. Repurchase agreements and other investments classified as cash and cash equivalents are not deposits and are not insured by the U.S. Government, the FDIC or any other government agency and involve investment risk including possible loss of principal. We believe however, that the market risk arising from holding these financial instruments is minimal. Investments The Company invests excess funds in various investments which are primarily held in the custody of major financial institutions. Investments consist of certificates of deposit, debt securities in U.S. government and agency securities, commercial paper, asset-backed securities and corporate notes and bonds. Management classifies its investments as available-for-sale investments and records these investments in the condensed consolidated balance sheet at fair value. The Company considers all available-for-sale securities, including those with maturity dates beyond 12 months, as available to support current operational liquidity needs. Unrealized gains or losses for available-for-sale securities are included in accumulated other comprehensive income (loss), a component of stockholders’ equity. The Company classifies its investments as current based on the nature of the investments and their availability for use in current operations. The Company assesses whether an other-than-temporary impairment loss has occurred due to declines in fair value or other market conditions when an investment’s fair value remains less than its cost for more than twelve months. This assessment includes a determination of whether the investment is expected to recover in value and whether the Company has the intent and ability to hold the investment until the anticipated recovery in value occurs. When an investment is identified as having an other-than-temporary impairment loss, we adjust the cost basis of the investment down to fair value resulting in a realized loss. The new cost basis is not changed for subsequent recoveries in fair value and temporary future increases or decreases in fair value are included in other comprehensive income (loss) . Inventory The Company writes down its inventory for estimated obsolescence or in an amount equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand, market conditions and, where applicable, product expiration. Accounts Receivable Accounts receivable consist of amounts due to the Company for sales to customers and are recorded net of an allowance for doubtful accounts. Allowances on accounts receivable are recorded when circumstances indicate collection is doubtful for a particular accounts receivable. Receivables are written off if reasonable collection efforts prove unsuccessful. The Company provides for allowances on a specific account basis. The Company has not included an allowance for doubtful accounts as of September 30, 2018 and December 31, 2017 , due to no circumstances arising that would indicate collection of any particular or grouping of customer accounts receivable is doubtful. Property and Equipment Property and equipment are recorded at cost. Maintenance and repairs are charged to expense as incurred and expenditures for major improvements are capitalized. Gains and losses from retirement or replacement are included in costs and expenses. Depreciation of property and equipment is computed using the straight-line method over the estimated useful life of the assets, ranging from one to seven years . Leasehold improvements are depreciated over the remaining life of the lease or the life of the asset, whichever is less. Property and equipment includes diagnostic instruments used for sales demonstrations, evaluations, and instruments under rental agreements. The Company retains title to the instruments under these arrangements. Long-lived Assets Long-lived assets and certain identifiable intangibles to be held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company continuously evaluates the recoverability of its long-lived assets based on estimated future cash flows from and the estimated fair value of such long-lived assets, and provides for impairment if such undiscounted cash flows or the estimated fair value are insufficient to recover the carrying amount of the long-lived asset. Warranty Reserve Instruments are typically sold with a one year limited warranty, while kits and accessories are typically sold with a 60 days limited warranty. Accordingly, a provision for the estimated cost of the limited warranty repair is recorded at the time revenue is recognized. Our estimated warranty provision is based on historical and anticipated rates of warranty repairs. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. The expense incurred for these provisions is included in cost of sales on the condensed consolidated statements of operations and comprehensive loss. Warranty reserve activity for the three and nine months ended September 30, 2018 and 2017 is as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2018 2017 2018 2017 Beginning balance $ 199 $ 61 $ 192 $ 1 Provisions 128 62 394 143 Warranty incurred (138 ) (34 ) (397 ) (55 ) Ending balance $ 189 $ 89 $ 189 $ 89 Convertible Notes The Company issued convertible notes that had conversion prices which resulted in an embedded beneficial conversion feature. The intrinsic value of the beneficial conversion feature was recorded as a debt discount with the corresponding amount recorded to contributed capital. The debt discount is amortized to interest expense over the life of the convertible notes using the effective interest method. Revenue Recognition Effective January 1, 2018, the Company adopted the requirements of ASC 606, Revenue from Contracts with Customers , ("Topic 606") and recognizes revenue when control of the promised good or service is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Sales taxes are excluded from revenues. We determine revenue recognition through the following steps: • Identification of the contract with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations • Recognition of revenue as we satisfy a performance obligation Product revenue is derived from the sale or rental of our instruments and sales of related consumable products. When an instrument is sold, revenue is generally recognized upon installation of the unit consistent with contract terms, which do not include a right of return. When a consumable product is sold, revenue is generally recognized upon shipment. Invoices are generally issued when revenue is recognized. Service revenue is derived from the sale of extended service agreements which are generally non-cancellable. This revenue is recognized on a straight-line basis over the contract term beginning on the effective date of the contract because the Company is standing ready to provide services. Invoices are generally issued annually and coincide with the beginning of individual service terms. Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine relative standalone selling prices based on the price charged to customers for each individual performance obligation. We also provide instruments to customers under bundled rental agreements. Under these agreements, we install the instrument in the customer’s facility and provide service. The customer agrees to purchase consumable products at a stated price over the term of the agreement, which is typically five years or less. Contracts sometimes have renewal clauses but such clauses do not provide for a bargain renewal option or penalize the customer if they do not renew. The instrument remains the Company’s property throughout the term of the agreement and there is no transfer of title upon expiration. Our payment terms vary by the type and location of our customers and the product or services offered and typically range between 30 and 60 days . Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. The Company has determined these costs would have an amortization period of less than one year and has elected to recognize them as an expense when incurred. Contract asset opening and closing balances were immaterial for the quarter ended September 30, 2018 . The Company adopted Topic 606 using the modified retrospective method applied to those contracts that were not fully performed by the Company as of January 1, 2018. We recorded a decrease to opening retained earnings and an increase in deferred revenue of $49,000 as of January 1, 2018 due to the cumulative impact of adopting Topic 606. The impact to revenues for the three and nine months ended September 30, 2018 was not material as a result of applying Topic 606. The reported results for 2017 and prior were prepared and are presented under the guidance of ASC 605, Revenue Recognition . Cost of Sales Cost of sales consists of raw materials, depreciation, direct labor and stock-based compensation expense, manufacturing overhead, facility costs and warranty costs. Shipping and Handling Shipping and handling costs billed to customers are included as a component of revenue. The corresponding expense incurred with third party carriers is included as a component of sales, general and administrative costs on the condensed consolidated statements of operations and comprehensive loss. Leases The Company accounts for leases in accordance with ASC 840, Leases, which requires leases to be classified as either operating or capital leases. In general, the Company classifies leases as capital leases when there is either a transfer of ownership at the end of the lease term, the lease contains a bargain purchase option, the lease term is seventy-five percent or more of the estimated economic life of the leased property or the minimum lease payments are ninety percent or more of the fair value of the leased property at lease inception. The Company has entered into bundled rental agreements that qualify as sales-type leases. In those instances, the present value of the minimum lease payments, computed at the interest rate implicit in the lease, is recorded as the sales price and a lease investment is recorded in current and non-current assets. Other leases are classified as operating leases. Operating lease rent is recorded as an operating expense on a monthly basis. For capital leases, both an asset and liability are recorded at the inception of the lease based on the present value of lease payments. The asset is included with property and equipment on the condensed consolidated balance sheet and amortization is recorded on a straight-line basis over the term of the lease with the amortization expense included with depreciation on the statements of operations and comprehensive loss. For the liability, the amount due within the next year is recorded as a current liability and the amount due in more than a year is recorded as a long-term liability on the condensed consolidated balance sheet. Interest expense is recorded based on the implicit or explicit interest rate used in the lease and is included as non-operating interest expense on the statements of operations and comprehensive loss. As of September 30, 2018 and December 31, 2017 , the Company did not carry any capital leases. Equity-Based Compensation The Company may award stock options, restricted stock units, performance-based options and other equity-based instruments to its employees, directors and consultants. Compensation cost related to equity-based instruments is based on the fair value of the instrument on the grant date, and is recognized over the requisite service period on a straight-line basis over the vesting period for each tranche (an accelerated attribution method) except for performance-based options. Performance-based stock options vest based on the achievement of performance targets. Compensation costs associated with performance-based option awards are recognized over the requisite service period based on probability of achievement. Performance-based stock options require management to make assumptions regarding the likelihood of achieving performance targets. The Company estimates the fair value of service based and performance based stock option awards, including modifications of stock option awards, using the Black-Scholes option pricing model. This model derives the fair value of stock options based on certain assumptions related to expected stock price volatility, expected option life, risk-free interest rate and dividend yield. The Company records the fair value of restricted stock units or stock grants based on published closing market price on the day before the grant date. Income Taxes and Deferred Tax Assets Deferred tax assets and liabilities are recorded for the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the accompanying condensed consolidated balance sheets. The change in deferred tax assets and liabilities for the period represents the deferred tax provision or benefit for the period. Effects of changes in enacted tax laws in deferred tax assets and liabilities are reflected as an adjustment to the tax provision or benefit in the period of enactment. The Company follows the provisions of ASC 740, Income Taxes , to account for any uncertainty in income taxes with respect to the accounting for all tax positions taken (or expected to be taken) on any income tax return. This guidance applies to all open tax periods in all tax jurisdictions in which the Company is required to file an income tax return. Under U.S. GAAP, in order to recognize an uncertain tax benefit the taxpayer must determine it is more likely than not certain that its tax position will be sustained, and the measurement of the benefit is calculated as the largest amount that is more likely than not to be realized upon resolution of the position. Interest and penalties, if any, would be recorded within tax expense. Foreign Currency Translation and Foreign Currency Transactions The Company follows ASC 830, Foreign Currency Matters , which provides guidance on foreign currency transactions and translation of financial statements. Adjustments resulting from translating foreign functional currency financial statements into U.S. Dollars are included in the foreign currency translation adjustment, a component of accumulated other comprehensive income (loss) in the consolidated statements of stockholders’ equity. The Company has assets and liabilities, including receivables and payables, which are denominated in currencies other than their functional currency. These balance sheet items are subject to re-measurement, the impact of which is recorded in foreign currency exchange gain and loss, within the condensed consolidated statements of operations and comprehensive loss. Earnings Per Share Basic earnings (loss) per share includes no dilution and is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share are computed similarly to basic earnings (loss) per share except the denominator includes additional common shares that would have been outstanding if notes convertible at the balance sheet date were converted and share-based payments had been issued. Diluted earnings are not presented when the effect of adding such additional common shares is antidilutive. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | NOTE 2. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-13, Fair Value Measurement (Topic 820); Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements for fair value measurements. This ASU is effective for us on January 1, 2020, with early adoption permitted. We are currently assessing the impact this will have on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718); Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 simplifies the accounting for share-based payments made to nonemployees so the accounting for such payments is substantially the same as those made to employees. Under this ASU, share-based awards to nonemployees will be measured at fair value on the grant date of the awards, entities will need to assess the probability of satisfying performance conditions if any are present, and awards will continue to be classified according to ASC 718 upon vesting, which eliminates the need to reassess classification upon vesting, consistent with awards granted to employees. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. We do not anticipate this update will have an effect on our consolidated financial statements because all share-based awards granted to nonemployees are fully vested. In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740); Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. ASU 2018-05 provides guidance regarding the recording of tax impacts where uncertainty exists, in the period of adoption of the 2017 U.S. Tax Cuts and Jobs Act (the “Tax Act”). In accordance with this guidance, the Company’s financial results reflect provisional amounts for those specific income tax effects of the Tax Act for which the accounting under ASC 740 is incomplete but a reasonable estimate could be determined. During the nine months ended September 30, 2018 , the Company did not recognize any changes to the provisional amounts recorded in its 2017 Annual Report on Form 10-K in connection with the Tax Act. Additionally, the Company filed its 2017 U.S. income tax return in the fourth quarter of 2018. 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 (AOCI). ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for tax effects resulting from the Tax Act that the FASB refers to as having been stranded in AOCI. This ASU is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company is evaluating the impact of the adoption of the ASU on our consolidated financial statements, though its effects are not expected to be material. In March 2017, the FASB issued ASU 2017-08, Receivable - Nonrefundable Fees and Other Costs (Topic 310-20); Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendment requires premiums to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. This ASU is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. If an entity early adopts in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments should be applied on a modified retrospective basis, with a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently assessing the impact this will have on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740); Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 is effective for periods after December 15, 2017 and eliminates the requirement that the Company recognize the income tax consequences of an intra-entity transfer of an asset upon transfer other than inventory, eliminating the current recognition requirement. The Company adopted this ASU on January 1, 2018. In adopting this ASU, the Company recorded no cumulative-effect adjustment to retained earnings at January 1, 2018. As the U.S. and the consolidated group are in a net operating loss position, no prepaid tax has been recorded. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326); Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the guidance on measuring credit losses on financial assets (including trade accounts receivable and available for sale debt securities) held at amortized cost. Currently, an “incurred loss” methodology is used for recognizing credit losses which delays recognition until it is probable a loss has been incurred. The amendment requires assets valued at amortized cost to be presented at the net amount expected to be collected using an allowance for credit losses. Reversal of credit losses on available for sale debt securities will be recorded in the current period net income. This ASU is effective for us on January 1, 2020, with early adoption permitted. We do not anticipate this guidance will have a significant impact on our consolidated financial statements and plan to adopt on the effective date. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The FASB also issued several subsequent updates to provide improvements to ASC 842. ASC 842 amends the existing accounting standards for leases to increase transparency and comparability among organizations. The new guidance requires a lessee to recognize a lease right-of-use asset and related lease liability for most leases, including those classified as operating leases under current U.S. GAAP. ASC 842 also changes the definition of a lease and requires expanded quantitative and qualitative disclosures for both lessees and lessors. Accounting by lessors will remain largely similar to existing U.S. GAAP. The Company plans to adopt ASC 842 on January 1, 2019 using the modified retrospective approach , and the Company will recognize a cumulative-effect adjustment to the opening balance of retained earnings in the earliest period presented in its financial statements. The Company is in the process of evaluating the impact the adoption of ASC 842 will have on its financial statements, and the Company expects the most significant changes will be the recognition of right-of-use assets and lease liabilities on the Company’s consolidated financial statements for its facilities. We do not expect the new guidance to have any significant impact on our earnings or cash flows. In January, 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Topic 825); Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 requires equity investments, with some exceptions, be measured at fair value with valuation changes recognized in net income, simplifies the impairment assessment of some equity investments, eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost, requires the use of the exit price notion when measuring the fair value of financial instruments, requires separate presentation of some changes in other comprehensive income, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial assets, and clarifies the need for a valuation allowance on some deferred tax assets. The Company adopted this ASU on January 1, 2018, and the adoption did not have a material impact on the Company’s consolidated financial statements. |
FDA Clearance
FDA Clearance | 9 Months Ended |
Sep. 30, 2018 | |
Research and Development [Abstract] | |
FDA Clearance | NOTE 3. FDA CLEARANCE On February 23, 2017, the U.S. Food and Drug Administration (“FDA”) granted Accelerate’s de novo request to market the Accelerate Pheno™ system and Accelerate PhenoTest™ BC Kit for identification and antibiotic susceptibility testing of pathogens directly from positive blood culture samples. Due to various factors, the Company manufactured inventory in advance of regulatory approval (“pre-launch inventory”). On January 1, 2017, the regulatory review process had progressed to a point that objective and persuasive evidence of approval was sufficiently probable, and a future economic benefit existed. On January 1, 2017, the Company started capitalizing pre-launch inventory. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 4. FAIR VALUE OF FINANCIAL INSTRUMENTS The following tables represent the financial instruments measured at fair value on a recurring basis on the financial statements of the Company and the valuation approach applied to each class of financial instruments at September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 Quoted Prices Significant Significant Total Assets: Cash and cash equivalents: Money market funds $ 27,160 $ — $ — $ 27,160 Commercial paper — 2,644 — 2,644 Asset-backed securities — 3,001 — 3,001 Total cash and cash equivalents $ 27,160 $ 5,645 $ — $ 32,805 Investments: Certificates of deposit — 12,481 — 12,481 U.S. Treasury securities 34,268 — — 34,268 U.S. Agency securities — 7,951 — 7,951 Commercial paper — 18,456 — 18,456 Asset-backed securities — 11,967 — 11,967 Corporate notes and bonds — 33,859 — 33,859 Total investments 34,268 84,714 — 118,982 Total assets measured at fair value $ 61,428 $ 90,359 $ — $ 151,787 December 31, 2017 Quoted Prices Significant Significant Total Assets: Cash and cash equivalents: Money market funds $ 7,832 $ — $ — $ 7,832 Investments: Certificates of deposit — 13,441 — 13,441 U.S. Treasury securities 14,716 — — 14,716 U.S. Agency securities — 8,459 — 8,459 Commercial paper — 9,171 — 9,171 Asset-backed securities — 3,025 — 3,025 Corporate notes and bonds — 31,836 — 31,836 Total investments 14,716 65,932 — 80,648 Total assets measured at fair value $ 22,548 $ 65,932 $ — $ 88,480 Highly liquid investments with an original maturity of three months or less at time of purchase are included in cash and cash equivalents on the condensed consolidated balance sheet. Level 1 assets are priced using quoted prices in active markets for identical assets which include money market funds and U.S. Treasury securities as these specific assets are liquid. Level 2 available-for-sale securities are priced using quoted market prices for similar instruments or nonbinding market prices that are corroborated by observable market data. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data, which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets and liabilities. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs. There were no transfers between levels during the nine months ended September 30, 2018 . On March 27, 2018 , the Company issued $150.0 million aggregate principal amount of 2.50% Convertible Senior Notes due 2023 (“Notes”). In connection with the offering of the Notes, the Company granted the initial purchasers of the Notes a 13 -day option to purchase up to an additional $22.5 million aggregate principal amount of the Notes on the same terms and conditions. On April 4, 2018 the option was partially exercised, which resulted in $21.5 million of additional proceeds, for total proceeds of $171.5 million , as described in Note 11, Convertible Notes . The calculated fair value of the Notes, of $162.9 million , is highly correlated to the Company’s stock price and as a result, significant changes to the Company’s stock price will have a significant impact on the calculated fair value of the Notes. The fair value of the Notes are classified as Level 2 within the fair value hierarchy. |
Concentration of Credit Risk
Concentration of Credit Risk | 9 Months Ended |
Sep. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | NOTE 5. CONCENTRATION OF CREDIT RISK Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, short-term investments and accounts receivable, including receivables from major customers. The Company has financial institutions for banking operations that hold 10% or more of the Company’s cash and cash equivalents. As of September 30, 2018 , three of the Company's financial institutions held 57% , 31% and 12% of the Company’s cash and cash equivalents, respectively. As of December 31, 2017 , two of the Company's financial institutions held 82% and 12% of the Company’s cash and cash equivalents, respectively. The Company grants credit to domestic and international clients in various industries. Exposure to losses on accounts receivable is principally dependent on each client's financial position. The Company had two customers that accounted for 18% and 13% of the Company’s net accounts receivable balance as of September 30, 2018 , and one customer that accounted for 24% of the Company's net accounts receivable balance as of December 31, 2017 . Customers who represented 10% or more of the Company’s total revenue for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Company A 17% * * * Company B 18% * * * Company C 20% * * * Company D * 10% * 22% Company E * 12% * * Company F * 16% * * Company G * 19% * * Company H * 20% * 15% * Less than 10% for the period indicated |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | NOTE 6. INVESTMENTS The following tables summarize the Company’s available-for-sale investments at September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 12,481 $ — $ — $ 12,481 U.S. Treasury securities 34,390 — (122 ) 34,268 U.S. Agency securities 8,017 — (66 ) 7,951 Commercial paper 18,456 — — 18,456 Asset-backed securities 11,968 — (1 ) 11,967 Corporate notes and bonds 33,916 2 (59 ) 33,859 Total $ 119,228 $ 2 $ (248 ) $ 118,982 December 31, 2017 Amortized Gross Gross Fair Value Certificates of deposit $ 13,441 $ — $ — $ 13,441 U.S. Treasury securities 14,787 — (71 ) 14,716 U.S. Agency securities 8,510 — (51 ) 8,459 Commercial paper 9,171 — — 9,171 Asset-backed securities 3,026 — (1 ) 3,025 Corporate notes and bonds 31,906 — (70 ) 31,836 Total $ 80,841 $ — $ (193 ) $ 80,648 The following table summarizes the maturities of the Company’s available-for-sale securities at September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Amortized Fair Value Amortized Fair Value Due in less than 1 year $ 93,971 $ 93,825 $ 55,801 $ 55,735 Due in 1-3 years 25,257 25,157 25,040 24,913 Total $ 119,228 $ 118,982 $ 80,841 $ 80,648 Proceeds from sales of marketable securities (including principal paydowns), for the three months ended September 30, 2018 and 2017 were $0 and $3.0 million , respectively, and for the nine months ended September 30, 2018 and 2017 were $3.0 million and $9.5 million , respectively. The Company determines gains and losses of marketable securities based on specific identification of the securities sold. There were no realized gains from sales of marketable securities for the three and nine months September 30, 2018 and 2017 . No balances were reclassified out of accumulated other comprehensive income (loss) for the three and nine months September 30, 2018 and 2017 . The Company monitors investments for other-than-temporary impairment. It was determined that unrealized gains and losses as of September 30, 2018 and December 31, 2017 are temporary in nature because the change in market value for those securities has resulted from fluctuating interest rates rather than a deterioration of the credit worthiness of the issuers. The Company does not intend to sell investments and it is more likely than not that we will not be required to sell investments before recovering the amortized cost. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 7. INVENTORY Inventories consisted of the following at September 30, 2018 and December 31, 2017 (in thousands): September 30, December 31, 2018 2017 Raw materials $ 4,819 $ 4,220 Work in process 1,144 377 Finished goods 3,443 3,466 Inventory $ 9,406 $ 8,063 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 8. PROPERTY AND EQUIPMENT Property and equipment consisted of the following at September 30, 2018 and December 31, 2017 (in thousands): September 30, December 31, 2018 2017 Computer equipment $ 2,801 $ 2,756 Technical equipment 3,820 3,348 Facilities 4,006 3,621 Instruments 4,821 1,400 Capital projects in progress 107 349 Total property and equipment $ 15,555 $ 11,474 Accumulated depreciation (8,143 ) (6,584 ) Property and equipment, net $ 7,412 $ 4,890 Depreciation expense for the three months ended September 30, 2018 and 2017 was $662,000 and $550,000 , respectively, and for the nine months ended September 30, 2018 and 2017 was $1.7 million and $1.6 million , respectively. During the nine months ended September 30, 2018 , $1.9 million of systems in the field were reclassified out of inventory and into property and equipment, which included $1.2 million of systems in the field as a component of inventory at June 30, 2018 . These transfers were the result of a change in the Company’s principal model for instrument acquisition from outright sales of systems to placing systems with customers and recovering that cost through the sale of test kits pursuant to reagent rental agreements. The reclassification from inventory to property and equipment did not have an effect on prior period net income, and the systems will be depreciated going forward. |
License Agreements and Grants
License Agreements and Grants | 9 Months Ended |
Sep. 30, 2018 | |
Research and Development [Abstract] | |
License Agreements and Grants | NOTE 9. LICENSE AGREEMENTS AND GRANTS National Institute of Health Grant In February 2015, the National Institute of Health awarded Denver Health and the Company a five -year, $5.0 million grant to develop a fast and reliable identification and categorical susceptibility test for carbepenem-resistant Enterobacteriaceae directly from whole blood. The cumulative amount awarded to date under these subawards is $1.1 million . The amounts invoiced for the three months ended September 30, 2018 and 2017 were $69,000 and $180,000 , respectively, and for the nine months ended September 30, 2018 and 2017 were $167,000 and $183,000 , respectively. Arizona Commerce Authority In August 2012, the Company entered into a Grant Agreement (the “Grant Agreement”) with the Arizona Commerce Authority, an agency of the State of Arizona (the “Authority”), pursuant to which the Authority provided certain state and county sponsored incentives for the Company relocating its corporate headquarters to, and expanding its business within, the State of Arizona (the “Project”). Pursuant to the Grant Agreement, the Authority provided a total grant in the amount of $1.0 million (the “Grant”). The Grant was paid in four installments, upon the achievement of the following milestones: • Milestone 1 – Relocation of Company’s operations and corporate headquarters to Arizona and creation of 15 Qualified Jobs (as defined below). • Milestone 2 – Creation of 30 Qualified Jobs (including Qualified Jobs under Milestone 1). • Milestone 3 – Creation of 40 Qualified Jobs (including Qualified Jobs under Milestones 1 and 2). • Milestone 4 – Creation of 65 Qualified Jobs (including Qualified Jobs under Milestones 1, 2 and 3) and capital investment of at least $4.5 million . For purposes of the Grant Agreement, a “Qualified Job” was a job which was permanent, full-time, new to Arizona and for which the Company paid an average annual wage of at least $63,000 and included health insurance benefits, for which the Company paid at least 65% of the premiums. The Grant Agreement also contained other customary provisions, including representations, warranties and covenants of both parties. As of December 31, 2017 , the full amount was collected and recorded in current deferred revenue and income. In January 2018, the full amount was recognized due to the economic development provisions of the grant being satisfied in full, and the “claw-back” provisions expiring. The $1.0 million was recognized as an offset to expense. Further details are included in Note 10, Deferred Revenue, Income and Remaining Performance Obligations . |
Deferred Revenue, Income and Re
Deferred Revenue, Income and Remaining Performance Obligations | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue, Income and Remaining Performance Obligations | NOTE 10. DEFERRED REVENUE, INCOME AND REMAINING PERFORMANCE OBLIGATIONS Deferred revenue consists of amounts received for products or services not yet delivered or earned. Deferred income consists of amounts received for commitments not yet fulfilled. If we anticipate that the revenue or income will not be earned within the following twelve months, the amount is reported as long-term deferred income. A summary of the balances as of September 30, 2018 and December 31, 2017 follows (in thousands): September 30, December 31, 2018 2017 Products and services not yet delivered $ 202 $ 71 Arizona Commerce Authority grant — 1,000 Deferred revenue and income $ 202 $ 1,071 We recognized $ 30,000 and $65,000 of revenues that were included in the contract liabilities balances during the three and nine months ended September 30, 2018 , respectively. No material amount of revenue recognized during the period was from performance obligations satisfied in prior periods. Transaction Price Allocated to Remaining Performance Obligations As of September 30, 2018 , $ 1.4 million of revenue is expected to be recognized from remaining performance obligations. This balance primarily relates to executed, service contracts that begin as warranty periods expire. These contracts typically provide for four -year terms and revenue is recognized on a straight-line basis over the contract term. The Company elects not to disclose the value of unsatisfied performance obligations for (i) contracts with an expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
Convertible Notes
Convertible Notes | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Notes | NOTE 11. CONVERTIBLE NOTES On March 27, 2018 , the Company issued $150.0 million aggregate principal amount of 2.50% Senior Convertible Notes due 2023. In connection with the offering of the Notes, the Company granted the initial purchasers of the Notes a 13 -day option to purchase up to an additional $22.5 million aggregate principal amount of the Notes on the same terms and conditions. On April 4, 2018 the option was partially exercised, which resulted in $21.5 million of additional proceeds, for total proceeds of $171.5 million . The Notes are the Company's senior unsecured obligations and mature on March 15, 2023 (the “Maturity Date”), unless earlier repurchased or converted into shares of common stock under certain circumstances described below. The Notes are convertible into shares of the Company’s common stock, can be repurchased for cash, or a combination thereof, at the Company’s election, at an initial conversion rate of 32.3428 shares of common stock per $1,000 principal amount of the Notes, which is equivalent to an initial conversion price of approximately $30.92 per share of common stock, subject to adjustment. The Company will pay interest on the Notes semi-annually in arrears on March 15 and September 15 of each year. The $171.5 million of proceeds received from the issuance of the Notes were allocated between long-term debt (the “liability component”) of $116.6 million and contributed capital (the “equity component”) of $54.9 million . The fair value of the liability component was measured using rates determined for similar debt instruments without a conversion feature. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the aggregate face value of the Notes. The liability component will be accreted up to the face value of the Notes of $171.5 million , which will result in additional non-cash interest expense being recognized through the Maturity Date. The equity component will not be remeasured as long as it continues to meet the conditions for equity classification. The Company incurred approximately $5.0 million of issuance costs related to the issuance of the Notes, of which $3.4 million and $1.6 million were recorded to long-term debt and contributed capital, respectively. The $3.4 million of issuance costs recorded as long-term debt on the condensed consolidated balance sheet are being amortized over the five -year contractual term of the Notes using the effective interest method. The effective interest rate on the Notes, including accretion of the Notes to par and debt issuance cost amortization, is 11.52% . The Notes include customary terms and covenants, including certain events of default upon which the Notes may be due and payable immediately. Holders have the option to convert the Notes in multiples of $1,000 principal amount at any time prior to December 15, 2022, but only in the following circumstances: • if the Company’s stock price exceeds 130% of the conversion price for 20 of the last 30 trading days of any calendar quarter after June 30, 2018; • during the 5 business day period after any 5 consecutive trading day period in which the Notes’ trading price is less than 98% of the product of the common stock price times the conversion rate; or • the occurrence of certain corporate events, such as a change of control, merger or liquidation. At any time on or after December 15, 2022, a holder may convert its Notes in multiples of $1,000 principal amount. Holders of the Notes who convert their Notes in connection with a make-whole fundamental change (as defined in the Indenture pursuant to which the Notes were issued) are, under certain circumstances, entitled to an increase in the conversion rate. In addition, in the event of a fundamental change or event of default prior to the Maturity Date, holders will, subject to certain conditions, have the right, at their option, to require the Company to repurchase for cash all or part of the Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest up to, but excluding, the repurchase date. As of September 30, 2018 , the outstanding principal amount on the Notes was $171.5 million , the unamortized debt discount was $50.6 million , the unamortized debt issuance cost was $3.1 million and the net carrying amount of the liability component was $117.8 million , which was recorded as convertible notes within the condensed consolidated balance sheet. The Company recorded $1.1 million and $2.2 million for contractual coupon interest for the three and nine months ended September 30, 2018 , respectively. The Company made its first cash interest expense payment in September 2018 for $2.0 million . The Company also recorded $131,000 and $264,000 for amortization of debt issuance costs for the three and nine months ended September 30, 2018 , respectively, and $2.1 million and $4.3 million for amortization of the debt discount for the three and nine months ended September 30, 2018 , respectively. As of September 30, 2018 , no Notes were convertible pursuant to their terms. In connection with the debt issuance, the Company entered into a prepaid forward stock repurchase transaction (“Prepaid Forward”) with a financial institution (“Forward Counterparty”). Pursuant to the Prepaid Forward, the Company used approximately $45.1 million of the net proceeds from its issuance of the Notes to fund the Prepaid Forward. The aggregate number of shares of the Company’s common stock underlying the Prepaid Forward was approximately 1,858,500 . The expiration date for the Prepaid Forward is March 15, 2023, although it may be settled earlier in whole or in part. Upon settlement of the Prepaid Forward, at expiration or upon any early settlement, the Forward Counterparty will deliver to the Company the number of shares of common stock underlying the Prepaid Forward or the portion thereof being settled early. The shares purchased under the Prepaid Forward are treated as treasury stock and not outstanding for purposes of the calculation of basic and diluted earnings per share, but will remain outstanding for corporate law purposes, including for purposes of any future stockholders’ votes, until the Forward Counterparty delivers the shares underlying the Prepaid Forward to the Company. The Company’s Prepaid Forward hedge transaction exposes the Company to credit risk to the extent that its counterparty may be unable to meet the terms of the transaction. The Company mitigates this risk by limiting its counterparty to a major financial institution. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 12. EARNINGS PER SHARE Basic net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted average common shares outstanding during the period. Basic and diluted net loss per share are the same because all outstanding common stock equivalents have been excluded, as they are anti-dilutive due to the Company’s losses. The following potentially issuable common shares were not included in the computation of diluted net loss per share because they would have an anti-dilutive effect due to net losses at September 30, 2018 and December 31, 2017 (in thousands): September 30, December 31, 2018 2017 Shares issuable upon the release of restricted stock awards 66 24 Shares issuable upon exercise of stock options 8,182 7,328 8,248 7,352 |
Employee Equity-Based Compensat
Employee Equity-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Equity-Based Compensation | NOTE 13. EMPLOYEE EQUITY-BASED COMPENSATION The following table summarizes option activity under all plans during the nine -month period ended September 30, 2018 : Number of Shares Weighted Average Exercise Price per Share Options Outstanding January 1, 2018 7,328,131 $ 10.16 Granted 1,355,371 24.70 Forfeited (131,226 ) 21.35 Exercised (351,626 ) 10.55 Expired (18,266 ) 24.24 Options Outstanding September 30, 2018 8,182,384 $ 12.34 The table below summarizes the resulting weighted average inputs used to calculate the estimated fair value of options awarded during the periods shown below: Three Months Ended September 30, September 30, 2018 2017 Expected term (in years) 5.53 6.46 Volatility 58 % 74 % Expected dividends — — Risk free interest rates 2.75 % 2.02 % Weighted average fair value $ 11.48 $ 15.74 The following table shows summary information for outstanding options and options that are exercisable (vested) as of September 30, 2018 : Options Outstanding Options Exercisable Number of options 8,182,384 5,751,558 Weighted average remaining contractual term (in years) 6.05 4.95 Weighted average exercise price $ 12.34 $ 8.26 Weighted average fair value $ 8.57 $ 5.83 Aggregate intrinsic value (in thousands) $ 91,273 $ 85,694 The following table summarizes restricted stock unit and restricted stock award activity during the nine -month period ending September 30, 2018 : Number of Shares Weighted Average Grant Date Fair Value per Share Outstanding January 1, 2018 24,150 $ 26.45 Granted 50,000 20.80 Forfeited — — Vested/released (8,050 ) 26.45 Outstanding September 30, 2018 66,100 22.18 Equity-based compensation is summarized below (in thousands): Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2018 2017 2018 2017 Cost of sales $ 68 $ 22 $ 172 $ 44 Research and development 1,476 994 3,926 2,886 Sales, general and administrative 1,921 2,504 8,378 8,040 Equity-based compensation expense $ 3,465 $ 3,520 $ 12,476 $ 10,970 As of September 30, 2018 and 2017 , $380,000 and $262,000 of equity-based compensation expense was included as a component of capitalized inventory, respectively. As of September 30, 2018 and 2017 , $170,000 and $33,000 of equity-based compensation expense was included as a component of capitalized property and equipment, respectively. As of September 30, 2018 , unrecognized equity-based compensation expense related to unvested stock options and unvested restricted stock units was $21.5 million and $1.1 million , respectively. This is expected to be recognized over the years 2018 through 2023 . Included in the above-noted stock option grants and stock compensation expense are performance-based stock options which vest only upon the achievement of certain targets. These options were valued in the same manner as the time-based options. However, the Company only recognizes stock compensation expense to the extent that the targets are determined to be probable of being achieved, which triggers the vesting of the performance options. In August, 2018, the Company granted 225,000 performance based-options to certain employees. The Company recognized $545,000 of stock compensation expense for the three and nine months ended September 30, 2018 , for performance-based stock options. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 14. INCOME TAXES For the three and nine months ended September 30, 2018 , the Company recorded a provision for income taxes of approximately $147,000 and $432,000 , respectively, which primarily relates to profitable foreign jurisdictions without any net operating loss carryforwards. The Company’s tax expense for the three and nine months ended September 30, 2018 differs from the tax expense computed by applying the U.S. statutory tax rate to its year-to-date pre-tax loss of $22.0 million and $65.7 million , respectively, as no tax benefits were recorded for tax losses generated in the U.S. and other foreign jurisdictions. At September 30, 2018 , the Company had deferred tax assets primarily related to U.S. federal and state tax loss carryforwards. The Company provided a full valuation allowance against its deferred tax assets as future realization of such assets is not more likely than not to occur. We account for uncertain tax positions pursuant to the recognition and measurement criteria under ASC 740, Income Taxes . For the three and nine months ended September 30, 2018 , we did not note any significant changes to our uncertain tax positions. We do not anticipate significant changes to uncertain tax position within the next 12 months. Tax Cuts and Jobs Act On December 22, 2017 , President Trump signed into law the Tax Cuts and Jobs Act. The Tax Act reduced the corporate tax rate from the maximum federal statutory rate of 35% to 21%. The Tax Act states that the 21% corporate tax rate is effective for tax years beginning on or after January 1, 2018 . The Company revalued its net deferred tax assets for U.S. federal purposes to 21% as of December 31, 2017 , with a corresponding adjustment to the valuation allowance. Therefore, the reduction in the U.S. corporate tax rate had no impact on the Company's earnings. In conjunction with the Tax Act, the SEC staff issued SAB 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company has recognized the provisional tax impacts related to deemed repatriated earnings and the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated financial statements for the year ended December 31, 2017 . The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Act. Any subsequent determinations and adjustments will be recorded during the remainder of the year ended December 31, 2018 , as they are identified. The Tax Act subjects a U.S. shareholder to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for GILTI, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. Given the complexity of the GILTI provisions, we are still evaluating the effects of the GILTI provisions and have not yet determined our accounting policy. At September 30, 2018 , because we are still evaluating the GILTI provisions and our analysis of future taxable income subject to GILTI, we have included GILTI related to current-year operations only in our estimated annual effective tax rate, with a corresponding adjustment to the valuation allowance, and have not provided additional GILTI on deferred items. At September 30, 2018 , the Company has not completed its accounting for all of the tax effects of the Tax Act and has not made any adjustments to the provisional amounts recorded at December 31, 2017 . The Company will continue to make and refine its calculations as additional analysis is completed. The Company’s estimates may also be affected as additional guidance is issued with regards to the Tax Act. These changes are not expected to be material to the Company’s financial statements since the effective tax rate impact will be offset by the corresponding adjustment in the valuation allowance. |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | NOTE 15. COMMITMENTS Leases The Company has entered into lease agreements, lease amendments, and lease extensions (“Lease Agreements”) for office, laboratory and manufacturing space located in Tucson, Arizona and Europe, the last of which expires in 2022. Total rent expense, including common area charges was $338,000 and $303,000 for the three months ended September 30, 2018 and 2017 , respectively, and for the nine months ended September 30, 2018 and 2017 was $1.0 million and $928,000 , respectively. Future minimum lease payments under these agreements are as follows (in thousands): Year ending December 31: 2018 $ 284 2019 266 2020 145 2021 98 2022 22 Thereafter — $ 815 Clinical Trial & Study Agreements The Company has entered into master agreements with clinical trial and study sites in which we typically pay a set amount for start-up costs and then pay for work performed. These agreements typically indemnify the clinical trial sites from any and all losses arising from third party claims as a result of the Company's negligence, willful misconduct or misrepresentation. The expense incurred as part of the clinical trial is included in research and development on the Company's condensed consolidated statements of operations and comprehensive loss. Marketing Study Agreements The Company has entered into marketing study agreements with research institutions and hospitals in which we typically pay a set amount for start-up costs and then pay for work performed. These agreements typically indemnify the sites from any and all losses arising from third party claims as a result of the Company's negligence, willful misconduct or misrepresentation. |
Industry and Geographic Informa
Industry and Geographic Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Industry and Geographic Information | NOTE 16. INDUSTRY, GEOGRAPHIC AND REVENUE DISAGGREGATION The Company operates as one operating segment. Sales to customers outside the U.S. represented 14% and 39% for the three months ended September 30, 2018 and 2017 , respectively, and 22% and 24% for the nine months ended September 30, 2018 and 2017 , respectively. As of September 30, 2018 and December 31, 2017 , balances due from foreign customers, in U.S. dollars, were $621,000 and $1.0 million , respectively. Three Months Ended Nine Months Ended September 30, September 30, (in thousands) (in thousands) 2018 2017 2018 2017 Primary Geographic Markets: Domestic $ 1,172 $ 507 $ 2,988 $ 1,569 Foreign 183 321 860 489 Net sales $ 1,355 $ 828 $ 3,848 $ 2,058 Line of Business: Accelerate Pheno™ revenue $ 1,325 $ 803 $ 3,760 $ 1,983 Other revenue 30 25 88 75 Net sales $ 1,355 $ 828 $ 3,848 $ 2,058 Products and Services: Products $ 1,331 $ 820 $ 3,798 $ 2,044 Services 24 8 50 14 Net sales $ 1,355 $ 828 $ 3,848 $ 2,058 Lease income included in net sales for the three months ended September 30, 2018 and 2017 was $229,000 and $8,000 , respectively, and $410,000 and $21,000 for the nine months ended September 30, 2018 and 2017 , respectively, which does not represent revenues recognized from contracts with customers. The following presents long-lived assets (excluding intangible assets) by geographic territory (in thousands): September 30, December 31, 2018 2017 Domestic $ 6,195 $ 3,779 Foreign 1,217 1,111 Property and equipment, net $ 7,412 $ 4,890 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 17. RELATED PARTY TRANSACTIONS As part of the transaction discussed in Note 11, Convertible Notes , an affiliate of one member of the Company's board of directors purchased an aggregate of $30 million of the Notes. The affiliated entity is a Qualified Institutional Buyer which purchased and holds the Notes at September 30, 2018 . |
Organization and Nature of Bu_2
Organization and Nature of Business; Basis of Presentation; Principles of Consolidation; Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 , as filed with the SEC on March 1, 2018. The condensed consolidated balance sheet as of December 31, 2017 included herein was derived from the audited financial statements as of that date, but does not include all disclosures such as notes required by U.S. GAAP. The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods presented, but are not necessarily indicative of the results of operations to be anticipated for the entire year ending December 31, 2018 , or any future period. All amounts are rounded to the nearest thousand dollars unless otherwise indicated. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after elimination of intercompany transactions and balances. |
Use of Estimates | Use of Estimates The preparation of the Company’s consolidated financial statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to accounts receivable, inventories, property and equipment, intangible assets, accruals, warranty liabilities, tax valuation accounts and stock-based compensation. Actual results could differ materially from those estimates. |
Estimated Fair Value of Financial Instruments | Estimated Fair Value of Financial Instruments The Company follows Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements, which has defined fair value and requires the Company to establish a framework for measuring fair value and disclose fair value measurements. The framework requires the valuation of assets and liabilities subject to fair value measurements using a three tiered approach and fair value measurement be classified and disclosed in one of the following three categories: • Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; • Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). The carrying amounts of financial instruments such as cash and cash equivalents, trade accounts receivable, prepaid expenses, other current assets, accounts payable, accrued liabilities, and other current liabilities approximate the related fair values due to the short-term maturities of these instruments. The estimated fair value of the Company’s long-term debt represents a Level 2 measurement. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less at time of purchase are considered to be cash equivalents. Cash and cash equivalents include overnight repurchase agreement accounts and other investments. As part of our cash management process, excess operating cash is invested in overnight repurchase agreements with our bank. Repurchase agreements and other investments classified as cash and cash equivalents are not deposits and are not insured by the U.S. Government, the FDIC or any other government agency and involve investment risk including possible loss of principal. We believe however, that the market risk arising from holding these financial instruments is minimal. |
Investments | Investments The Company invests excess funds in various investments which are primarily held in the custody of major financial institutions. Investments consist of certificates of deposit, debt securities in U.S. government and agency securities, commercial paper, asset-backed securities and corporate notes and bonds. Management classifies its investments as available-for-sale investments and records these investments in the condensed consolidated balance sheet at fair value. The Company considers all available-for-sale securities, including those with maturity dates beyond 12 months, as available to support current operational liquidity needs. Unrealized gains or losses for available-for-sale securities are included in accumulated other comprehensive income (loss), a component of stockholders’ equity. The Company classifies its investments as current based on the nature of the investments and their availability for use in current operations. The Company assesses whether an other-than-temporary impairment loss has occurred due to declines in fair value or other market conditions when an investment’s fair value remains less than its cost for more than twelve months. This assessment includes a determination of whether the investment is expected to recover in value and whether the Company has the intent and ability to hold the investment until the anticipated recovery in value occurs. When an investment is identified as having an other-than-temporary impairment loss, we adjust the cost basis of the investment down to fair value resulting in a realized loss. The new cost basis is not changed for subsequent recoveries in fair value and temporary future increases or decreases in fair value are included in other comprehensive income (loss) . |
Inventory | Inventory The Company writes down its inventory for estimated obsolescence or in an amount equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand, market conditions and, where applicable, product expiration. |
Accounts Receivable | Accounts Receivable Accounts receivable consist of amounts due to the Company for sales to customers and are recorded net of an allowance for doubtful accounts. Allowances on accounts receivable are recorded when circumstances indicate collection is doubtful for a particular accounts receivable. Receivables are written off if reasonable collection efforts prove unsuccessful. The Company provides for allowances on a specific account basis. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Maintenance and repairs are charged to expense as incurred and expenditures for major improvements are capitalized. Gains and losses from retirement or replacement are included in costs and expenses. Depreciation of property and equipment is computed using the straight-line method over the estimated useful life of the assets, ranging from one to seven years . Leasehold improvements are depreciated over the remaining life of the lease or the life of the asset, whichever is less. Property and equipment includes diagnostic instruments used for sales demonstrations, evaluations, and instruments under rental agreements. The Company retains title to the instruments under these arrangements. |
Long-lived Assets | Long-lived Assets Long-lived assets and certain identifiable intangibles to be held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company continuously evaluates the recoverability of its long-lived assets based on estimated future cash flows from and the estimated fair value of such long-lived assets, and provides for impairment if such undiscounted cash flows or the estimated fair value are insufficient to recover the carrying amount of the long-lived asset. |
Warranty Reserve | Warranty Reserve Instruments are typically sold with a one year limited warranty, while kits and accessories are typically sold with a 60 days limited warranty. Accordingly, a provision for the estimated cost of the limited warranty repair is recorded at the time revenue is recognized. Our estimated warranty provision is based on historical and anticipated rates of warranty repairs. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. The expense incurred for these provisions is included in cost of sales on the condensed consolidated statements of operations and comprehensive loss. |
Convertible Notes | Convertible Notes The Company issued convertible notes that had conversion prices which resulted in an embedded beneficial conversion feature. The intrinsic value of the beneficial conversion feature was recorded as a debt discount with the corresponding amount recorded to contributed capital. The debt discount is amortized to interest expense over the life of the convertible notes using the effective interest method. |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, the Company adopted the requirements of ASC 606, Revenue from Contracts with Customers , ("Topic 606") and recognizes revenue when control of the promised good or service is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Sales taxes are excluded from revenues. We determine revenue recognition through the following steps: • Identification of the contract with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations • Recognition of revenue as we satisfy a performance obligation Product revenue is derived from the sale or rental of our instruments and sales of related consumable products. When an instrument is sold, revenue is generally recognized upon installation of the unit consistent with contract terms, which do not include a right of return. When a consumable product is sold, revenue is generally recognized upon shipment. Invoices are generally issued when revenue is recognized. Service revenue is derived from the sale of extended service agreements which are generally non-cancellable. This revenue is recognized on a straight-line basis over the contract term beginning on the effective date of the contract because the Company is standing ready to provide services. Invoices are generally issued annually and coincide with the beginning of individual service terms. Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine relative standalone selling prices based on the price charged to customers for each individual performance obligation. We also provide instruments to customers under bundled rental agreements. Under these agreements, we install the instrument in the customer’s facility and provide service. The customer agrees to purchase consumable products at a stated price over the term of the agreement, which is typically five years or less. Contracts sometimes have renewal clauses but such clauses do not provide for a bargain renewal option or penalize the customer if they do not renew. The instrument remains the Company’s property throughout the term of the agreement and there is no transfer of title upon expiration. Our payment terms vary by the type and location of our customers and the product or services offered and typically range between 30 and 60 days . Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. The Company has determined these costs would have an amortization period of less than one year and has elected to recognize them as an expense when incurred. Contract asset opening and closing balances were immaterial for the quarter ended September 30, 2018 . The Company adopted Topic 606 using the modified retrospective method applied to those contracts that were not fully performed by the Company as of January 1, 2018. We recorded a decrease to opening retained earnings and an increase in deferred revenue of $49,000 as of January 1, 2018 due to the cumulative impact of adopting Topic 606. The impact to revenues for the three and nine months ended September 30, 2018 was not material as a result of applying Topic 606. The reported results for 2017 and prior were prepared and are presented under the guidance of ASC 605, Revenue Recognition . Cost of Sales Cost of sales consists of raw materials, depreciation, direct labor and stock-based compensation expense, manufacturing overhead, facility costs and warranty costs. Shipping and Handling Shipping and handling costs billed to customers are included as a component of revenue. The corresponding expense incurred with third party carriers is included as a component of sales, general and administrative costs on the condensed consolidated statements of operations and comprehensive loss. |
Leases | Leases The Company accounts for leases in accordance with ASC 840, Leases, which requires leases to be classified as either operating or capital leases. In general, the Company classifies leases as capital leases when there is either a transfer of ownership at the end of the lease term, the lease contains a bargain purchase option, the lease term is seventy-five percent or more of the estimated economic life of the leased property or the minimum lease payments are ninety percent or more of the fair value of the leased property at lease inception. The Company has entered into bundled rental agreements that qualify as sales-type leases. In those instances, the present value of the minimum lease payments, computed at the interest rate implicit in the lease, is recorded as the sales price and a lease investment is recorded in current and non-current assets. Other leases are classified as operating leases. Operating lease rent is recorded as an operating expense on a monthly basis. For capital leases, both an asset and liability are recorded at the inception of the lease based on the present value of lease payments. The asset is included with property and equipment on the condensed consolidated balance sheet and amortization is recorded on a straight-line basis over the term of the lease with the amortization expense included with depreciation on the statements of operations and comprehensive loss. For the liability, the amount due within the next year is recorded as a current liability and the amount due in more than a year is recorded as a long-term liability on the condensed consolidated balance sheet. Interest expense is recorded based on the implicit or explicit interest rate used in the lease and is included as non-operating interest expense on the statements of operations and comprehensive loss. As of September 30, 2018 and December 31, 2017 , the Company did not carry any capital leases. |
Equity-Based Compensation | Equity-Based Compensation The Company may award stock options, restricted stock units, performance-based options and other equity-based instruments to its employees, directors and consultants. Compensation cost related to equity-based instruments is based on the fair value of the instrument on the grant date, and is recognized over the requisite service period on a straight-line basis over the vesting period for each tranche (an accelerated attribution method) except for performance-based options. Performance-based stock options vest based on the achievement of performance targets. Compensation costs associated with performance-based option awards are recognized over the requisite service period based on probability of achievement. Performance-based stock options require management to make assumptions regarding the likelihood of achieving performance targets. The Company estimates the fair value of service based and performance based stock option awards, including modifications of stock option awards, using the Black-Scholes option pricing model. This model derives the fair value of stock options based on certain assumptions related to expected stock price volatility, expected option life, risk-free interest rate and dividend yield. The Company records the fair value of restricted stock units or stock grants based on published closing market price on the day before the grant date. |
Income Taxes and Deferred Tax Assets | Income Taxes and Deferred Tax Assets Deferred tax assets and liabilities are recorded for the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the accompanying condensed consolidated balance sheets. The change in deferred tax assets and liabilities for the period represents the deferred tax provision or benefit for the period. Effects of changes in enacted tax laws in deferred tax assets and liabilities are reflected as an adjustment to the tax provision or benefit in the period of enactment. The Company follows the provisions of ASC 740, Income Taxes , to account for any uncertainty in income taxes with respect to the accounting for all tax positions taken (or expected to be taken) on any income tax return. This guidance applies to all open tax periods in all tax jurisdictions in which the Company is required to file an income tax return. Under U.S. GAAP, in order to recognize an uncertain tax benefit the taxpayer must determine it is more likely than not certain that its tax position will be sustained, and the measurement of the benefit is calculated as the largest amount that is more likely than not to be realized upon resolution of the position. Interest and penalties, if any, would be recorded within tax expense. |
Foreign Currency Translation and Foreign Currency Transactions | Foreign Currency Translation and Foreign Currency Transactions The Company follows ASC 830, Foreign Currency Matters , which provides guidance on foreign currency transactions and translation of financial statements. Adjustments resulting from translating foreign functional currency financial statements into U.S. Dollars are included in the foreign currency translation adjustment, a component of accumulated other comprehensive income (loss) in the consolidated statements of stockholders’ equity. The Company has assets and liabilities, including receivables and payables, which are denominated in currencies other than their functional currency. These balance sheet items are subject to re-measurement, the impact of which is recorded in foreign currency exchange gain and loss, within the condensed consolidated statements of operations and comprehensive loss. |
Earnings Per Share | Earnings Per Share Basic earnings (loss) per share includes no dilution and is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share are computed similarly to basic earnings (loss) per share except the denominator includes additional common shares that would have been outstanding if notes convertible at the balance sheet date were converted and share-based payments had been issued. Diluted earnings are not presented when the effect of adding such additional common shares is antidilutive. |
Recently Issued Accounting Pronouncements | In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-13, Fair Value Measurement (Topic 820); Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements for fair value measurements. This ASU is effective for us on January 1, 2020, with early adoption permitted. We are currently assessing the impact this will have on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718); Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 simplifies the accounting for share-based payments made to nonemployees so the accounting for such payments is substantially the same as those made to employees. Under this ASU, share-based awards to nonemployees will be measured at fair value on the grant date of the awards, entities will need to assess the probability of satisfying performance conditions if any are present, and awards will continue to be classified according to ASC 718 upon vesting, which eliminates the need to reassess classification upon vesting, consistent with awards granted to employees. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. We do not anticipate this update will have an effect on our consolidated financial statements because all share-based awards granted to nonemployees are fully vested. In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740); Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. ASU 2018-05 provides guidance regarding the recording of tax impacts where uncertainty exists, in the period of adoption of the 2017 U.S. Tax Cuts and Jobs Act (the “Tax Act”). In accordance with this guidance, the Company’s financial results reflect provisional amounts for those specific income tax effects of the Tax Act for which the accounting under ASC 740 is incomplete but a reasonable estimate could be determined. During the nine months ended September 30, 2018 , the Company did not recognize any changes to the provisional amounts recorded in its 2017 Annual Report on Form 10-K in connection with the Tax Act. Additionally, the Company filed its 2017 U.S. income tax return in the fourth quarter of 2018. 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 (AOCI). ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for tax effects resulting from the Tax Act that the FASB refers to as having been stranded in AOCI. This ASU is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company is evaluating the impact of the adoption of the ASU on our consolidated financial statements, though its effects are not expected to be material. In March 2017, the FASB issued ASU 2017-08, Receivable - Nonrefundable Fees and Other Costs (Topic 310-20); Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendment requires premiums to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. This ASU is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. If an entity early adopts in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments should be applied on a modified retrospective basis, with a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently assessing the impact this will have on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740); Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 is effective for periods after December 15, 2017 and eliminates the requirement that the Company recognize the income tax consequences of an intra-entity transfer of an asset upon transfer other than inventory, eliminating the current recognition requirement. The Company adopted this ASU on January 1, 2018. In adopting this ASU, the Company recorded no cumulative-effect adjustment to retained earnings at January 1, 2018. As the U.S. and the consolidated group are in a net operating loss position, no prepaid tax has been recorded. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326); Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the guidance on measuring credit losses on financial assets (including trade accounts receivable and available for sale debt securities) held at amortized cost. Currently, an “incurred loss” methodology is used for recognizing credit losses which delays recognition until it is probable a loss has been incurred. The amendment requires assets valued at amortized cost to be presented at the net amount expected to be collected using an allowance for credit losses. Reversal of credit losses on available for sale debt securities will be recorded in the current period net income. This ASU is effective for us on January 1, 2020, with early adoption permitted. We do not anticipate this guidance will have a significant impact on our consolidated financial statements and plan to adopt on the effective date. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The FASB also issued several subsequent updates to provide improvements to ASC 842. ASC 842 amends the existing accounting standards for leases to increase transparency and comparability among organizations. The new guidance requires a lessee to recognize a lease right-of-use asset and related lease liability for most leases, including those classified as operating leases under current U.S. GAAP. ASC 842 also changes the definition of a lease and requires expanded quantitative and qualitative disclosures for both lessees and lessors. Accounting by lessors will remain largely similar to existing U.S. GAAP. The Company plans to adopt ASC 842 on January 1, 2019 using the modified retrospective approach , and the Company will recognize a cumulative-effect adjustment to the opening balance of retained earnings in the earliest period presented in its financial statements. The Company is in the process of evaluating the impact the adoption of ASC 842 will have on its financial statements, and the Company expects the most significant changes will be the recognition of right-of-use assets and lease liabilities on the Company’s consolidated financial statements for its facilities. We do not expect the new guidance to have any significant impact on our earnings or cash flows. In January, 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Topic 825); Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 requires equity investments, with some exceptions, be measured at fair value with valuation changes recognized in net income, simplifies the impairment assessment of some equity investments, eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost, requires the use of the exit price notion when measuring the fair value of financial instruments, requires separate presentation of some changes in other comprehensive income, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial assets, and clarifies the need for a valuation allowance on some deferred tax assets. The Company adopted this ASU on January 1, 2018, and the adoption did not have a material impact on the Company’s consolidated financial statements. |
Organization and Nature of Bu_3
Organization and Nature of Business; Basis of Presentation; Principles of Consolidation; Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Product Warranty Reserve Activity | Warranty reserve activity for the three and nine months ended September 30, 2018 and 2017 is as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2018 2017 2018 2017 Beginning balance $ 199 $ 61 $ 192 $ 1 Provisions 128 62 394 143 Warranty incurred (138 ) (34 ) (397 ) (55 ) Ending balance $ 189 $ 89 $ 189 $ 89 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurement | The following tables represent the financial instruments measured at fair value on a recurring basis on the financial statements of the Company and the valuation approach applied to each class of financial instruments at September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 Quoted Prices Significant Significant Total Assets: Cash and cash equivalents: Money market funds $ 27,160 $ — $ — $ 27,160 Commercial paper — 2,644 — 2,644 Asset-backed securities — 3,001 — 3,001 Total cash and cash equivalents $ 27,160 $ 5,645 $ — $ 32,805 Investments: Certificates of deposit — 12,481 — 12,481 U.S. Treasury securities 34,268 — — 34,268 U.S. Agency securities — 7,951 — 7,951 Commercial paper — 18,456 — 18,456 Asset-backed securities — 11,967 — 11,967 Corporate notes and bonds — 33,859 — 33,859 Total investments 34,268 84,714 — 118,982 Total assets measured at fair value $ 61,428 $ 90,359 $ — $ 151,787 December 31, 2017 Quoted Prices Significant Significant Total Assets: Cash and cash equivalents: Money market funds $ 7,832 $ — $ — $ 7,832 Investments: Certificates of deposit — 13,441 — 13,441 U.S. Treasury securities 14,716 — — 14,716 U.S. Agency securities — 8,459 — 8,459 Commercial paper — 9,171 — 9,171 Asset-backed securities — 3,025 — 3,025 Corporate notes and bonds — 31,836 — 31,836 Total investments 14,716 65,932 — 80,648 Total assets measured at fair value $ 22,548 $ 65,932 $ — $ 88,480 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Schedule of Customer Concentration | Customers who represented 10% or more of the Company’s total revenue for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Company A 17% * * * Company B 18% * * * Company C 20% * * * Company D * 10% * 22% Company E * 12% * * Company F * 16% * * Company G * 19% * * Company H * 20% * 15% * Less than 10% for the period indicated |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale Investments | The following tables summarize the Company’s available-for-sale investments at September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 12,481 $ — $ — $ 12,481 U.S. Treasury securities 34,390 — (122 ) 34,268 U.S. Agency securities 8,017 — (66 ) 7,951 Commercial paper 18,456 — — 18,456 Asset-backed securities 11,968 — (1 ) 11,967 Corporate notes and bonds 33,916 2 (59 ) 33,859 Total $ 119,228 $ 2 $ (248 ) $ 118,982 December 31, 2017 Amortized Gross Gross Fair Value Certificates of deposit $ 13,441 $ — $ — $ 13,441 U.S. Treasury securities 14,787 — (71 ) 14,716 U.S. Agency securities 8,510 — (51 ) 8,459 Commercial paper 9,171 — — 9,171 Asset-backed securities 3,026 — (1 ) 3,025 Corporate notes and bonds 31,906 — (70 ) 31,836 Total $ 80,841 $ — $ (193 ) $ 80,648 |
Schedule of Available-For-Sale Investment Maturities | The following table summarizes the maturities of the Company’s available-for-sale securities at September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Amortized Fair Value Amortized Fair Value Due in less than 1 year $ 93,971 $ 93,825 $ 55,801 $ 55,735 Due in 1-3 years 25,257 25,157 25,040 24,913 Total $ 119,228 $ 118,982 $ 80,841 $ 80,648 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following at September 30, 2018 and December 31, 2017 (in thousands): September 30, December 31, 2018 2017 Raw materials $ 4,819 $ 4,220 Work in process 1,144 377 Finished goods 3,443 3,466 Inventory $ 9,406 $ 8,063 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following at September 30, 2018 and December 31, 2017 (in thousands): September 30, December 31, 2018 2017 Computer equipment $ 2,801 $ 2,756 Technical equipment 3,820 3,348 Facilities 4,006 3,621 Instruments 4,821 1,400 Capital projects in progress 107 349 Total property and equipment $ 15,555 $ 11,474 Accumulated depreciation (8,143 ) (6,584 ) Property and equipment, net $ 7,412 $ 4,890 |
Deferred Revenue, Income and _2
Deferred Revenue, Income and Remaining Performance Obligations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue and Income Summary | A summary of the balances as of September 30, 2018 and December 31, 2017 follows (in thousands): September 30, December 31, 2018 2017 Products and services not yet delivered $ 202 $ 71 Arizona Commerce Authority grant — 1,000 Deferred revenue and income $ 202 $ 1,071 |
Earnings Per Share - (Tables)
Earnings Per Share - (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Potentially Issuable Common Shares not Included in Computation of Diluted Net Loss Per Share | The following potentially issuable common shares were not included in the computation of diluted net loss per share because they would have an anti-dilutive effect due to net losses at September 30, 2018 and December 31, 2017 (in thousands): September 30, December 31, 2018 2017 Shares issuable upon the release of restricted stock awards 66 24 Shares issuable upon exercise of stock options 8,182 7,328 8,248 7,352 |
Employee Equity-Based Compens_2
Employee Equity-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity | The following table summarizes option activity under all plans during the nine -month period ended September 30, 2018 : Number of Shares Weighted Average Exercise Price per Share Options Outstanding January 1, 2018 7,328,131 $ 10.16 Granted 1,355,371 24.70 Forfeited (131,226 ) 21.35 Exercised (351,626 ) 10.55 Expired (18,266 ) 24.24 Options Outstanding September 30, 2018 8,182,384 $ 12.34 |
Inputs to Calculate Estimated Fair Value of Options Awarded | The table below summarizes the resulting weighted average inputs used to calculate the estimated fair value of options awarded during the periods shown below: Three Months Ended September 30, September 30, 2018 2017 Expected term (in years) 5.53 6.46 Volatility 58 % 74 % Expected dividends — — Risk free interest rates 2.75 % 2.02 % Weighted average fair value $ 11.48 $ 15.74 |
Stock Option Supplemental Information | The following table shows summary information for outstanding options and options that are exercisable (vested) as of September 30, 2018 : Options Outstanding Options Exercisable Number of options 8,182,384 5,751,558 Weighted average remaining contractual term (in years) 6.05 4.95 Weighted average exercise price $ 12.34 $ 8.26 Weighted average fair value $ 8.57 $ 5.83 Aggregate intrinsic value (in thousands) $ 91,273 $ 85,694 |
Restricted Stock Unit (RSU) Activity | The following table summarizes restricted stock unit and restricted stock award activity during the nine -month period ending September 30, 2018 : Number of Shares Weighted Average Grant Date Fair Value per Share Outstanding January 1, 2018 24,150 $ 26.45 Granted 50,000 20.80 Forfeited — — Vested/released (8,050 ) 26.45 Outstanding September 30, 2018 66,100 22.18 |
Equity-Based Compensation Expenses | Equity-based compensation is summarized below (in thousands): Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2018 2017 2018 2017 Cost of sales $ 68 $ 22 $ 172 $ 44 Research and development 1,476 994 3,926 2,886 Sales, general and administrative 1,921 2,504 8,378 8,040 Equity-based compensation expense $ 3,465 $ 3,520 $ 12,476 $ 10,970 |
Commitments (Tables)
Commitments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases Obligations | Future minimum lease payments under these agreements are as follows (in thousands): Year ending December 31: 2018 $ 284 2019 266 2020 145 2021 98 2022 22 Thereafter — $ 815 |
Industry and Geographic Infor_2
Industry and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Disaggregation of Revenue | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) (in thousands) 2018 2017 2018 2017 Primary Geographic Markets: Domestic $ 1,172 $ 507 $ 2,988 $ 1,569 Foreign 183 321 860 489 Net sales $ 1,355 $ 828 $ 3,848 $ 2,058 Line of Business: Accelerate Pheno™ revenue $ 1,325 $ 803 $ 3,760 $ 1,983 Other revenue 30 25 88 75 Net sales $ 1,355 $ 828 $ 3,848 $ 2,058 Products and Services: Products $ 1,331 $ 820 $ 3,798 $ 2,044 Services 24 8 50 14 Net sales $ 1,355 $ 828 $ 3,848 $ 2,058 |
Long-lived Assets by Geographic Territory | The following presents long-lived assets (excluding intangible assets) by geographic territory (in thousands): September 30, December 31, 2018 2017 Domestic $ 6,195 $ 3,779 Foreign 1,217 1,111 Property and equipment, net $ 7,412 $ 4,890 |
- Narrative (Details)
- Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Instrument warranty term | 1 year | ||
Kits and accessories warranty term | 60 days | ||
Decrease to opening retained earnings | $ 308,156 | $ 241,972 | |
Cumulative impact of adopting Topic 606 | Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Decrease to opening retained earnings | $ 49 | ||
Minimum | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Estimated useful life of assets | 1 year | ||
Payment terms | 30 days | ||
Maximum | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Estimated useful life of assets | 7 years | ||
Payment terms | 60 days |
Organization and Nature of Bu_4
Organization and Nature of Business; Basis of Presentation; Principles of Consolidation; Significant Accounting Policies - Schedule of Product Warranty Reserve Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Beginning balance | $ 199 | $ 61 | $ 192 | $ 1 |
Provisions | 128 | 62 | 394 | 143 |
Warranty incurred | (138) | (34) | (397) | (55) |
Ending balance | $ 189 | $ 89 | $ 189 | $ 89 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Fair Value Measurement (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 118,982 | $ 80,648 |
Fair value on a recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 32,805 | |
Fair Value | 118,982 | 80,648 |
Total assets measured at fair value | 151,787 | 88,480 |
Fair value on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 27,160 | |
Fair Value | 34,268 | 14,716 |
Total assets measured at fair value | 61,428 | 22,548 |
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 5,645 | |
Fair Value | 84,714 | 65,932 |
Total assets measured at fair value | 90,359 | 65,932 |
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Fair Value | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Fair value on a recurring basis | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 12,481 | 13,441 |
Fair value on a recurring basis | Certificates of deposit | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair value on a recurring basis | Certificates of deposit | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 12,481 | 13,441 |
Fair value on a recurring basis | Certificates of deposit | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair value on a recurring basis | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 34,268 | 14,716 |
Fair value on a recurring basis | U.S. Treasury securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 34,268 | 14,716 |
Fair value on a recurring basis | U.S. Treasury securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair value on a recurring basis | U.S. Treasury securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair value on a recurring basis | U.S. Agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 7,951 | 8,459 |
Fair value on a recurring basis | U.S. Agency securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair value on a recurring basis | U.S. Agency securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 7,951 | 8,459 |
Fair value on a recurring basis | U.S. Agency securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair value on a recurring basis | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 18,456 | 9,171 |
Fair value on a recurring basis | Commercial paper | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair value on a recurring basis | Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 18,456 | 9,171 |
Fair value on a recurring basis | Commercial paper | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair value on a recurring basis | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 11,967 | 3,025 |
Fair value on a recurring basis | Asset-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair value on a recurring basis | Asset-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 11,967 | 3,025 |
Fair value on a recurring basis | Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair value on a recurring basis | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 33,859 | 31,836 |
Fair value on a recurring basis | Corporate notes and bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair value on a recurring basis | Corporate notes and bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 33,859 | 31,836 |
Fair value on a recurring basis | Corporate notes and bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair value on a recurring basis | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 27,160 | 7,832 |
Fair value on a recurring basis | Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 27,160 | 7,832 |
Fair value on a recurring basis | Money market funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Fair value on a recurring basis | Money market funds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | $ 0 |
Fair value on a recurring basis | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 2,644 | |
Fair value on a recurring basis | Commercial paper | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Fair value on a recurring basis | Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 2,644 | |
Fair value on a recurring basis | Commercial paper | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Fair value on a recurring basis | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 3,001 | |
Fair value on a recurring basis | Asset-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Fair value on a recurring basis | Asset-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 3,001 | |
Fair value on a recurring basis | Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | Apr. 06, 2018 | Mar. 27, 2018 | Sep. 30, 2018 |
Debt Instrument [Line Items] | |||
Over-allotment option, term | 13 days | ||
Over-allotment option | $ 22,500,000 | ||
Additional proceeds | $ 21,500,000 | ||
Unsecured obligations | 2.50% Convertible notes due 2023 | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | 171,500,000 | $ 150,000,000 | |
Interest rate | 2.50% | ||
Proceeds received | $ 171,500,000 | ||
Fair value | $ 162,900,000 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Net accounts receivable | Customer concentration | Company A | |||||
Concentration Risk [Line Items] | |||||
Risk concentration | 18.00% | ||||
Net accounts receivable | Customer concentration | Company B | |||||
Concentration Risk [Line Items] | |||||
Risk concentration | 13.00% | ||||
Net accounts receivable | Customer concentration | Company C | |||||
Concentration Risk [Line Items] | |||||
Risk concentration | 24.00% | ||||
Total revenue | Customer concentration | Company A | |||||
Concentration Risk [Line Items] | |||||
Risk concentration | 17.00% | ||||
Total revenue | Customer concentration | Company B | |||||
Concentration Risk [Line Items] | |||||
Risk concentration | 18.00% | ||||
Total revenue | Customer concentration | Company C | |||||
Concentration Risk [Line Items] | |||||
Risk concentration | 20.00% | ||||
Total revenue | Customer concentration | Company D | |||||
Concentration Risk [Line Items] | |||||
Risk concentration | 10.00% | 22.00% | |||
Total revenue | Customer concentration | Company E | |||||
Concentration Risk [Line Items] | |||||
Risk concentration | 12.00% | ||||
Total revenue | Customer concentration | Company F | |||||
Concentration Risk [Line Items] | |||||
Risk concentration | 16.00% | ||||
Total revenue | Customer concentration | Company G | |||||
Concentration Risk [Line Items] | |||||
Risk concentration | 19.00% | ||||
Total revenue | Customer concentration | Company H | |||||
Concentration Risk [Line Items] | |||||
Risk concentration | 20.00% | 15.00% | |||
Financial institution A | Cash and cash equivalents | Concentration of credit risk | |||||
Concentration Risk [Line Items] | |||||
Risk concentration | 57.00% | 82.00% | |||
Financial institution B | Cash and cash equivalents | Concentration of credit risk | |||||
Concentration Risk [Line Items] | |||||
Risk concentration | 31.00% | 12.00% | |||
Financial institution C | Cash and cash equivalents | Concentration of credit risk | |||||
Concentration Risk [Line Items] | |||||
Risk concentration | 12.00% |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Total | $ 119,228 | $ 80,841 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | (248) | (193) |
Fair Value | 118,982 | 80,648 |
Certificates of deposit | ||
Investment [Line Items] | ||
Total | 12,481 | 13,441 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 12,481 | 13,441 |
U.S. Treasury securities | ||
Investment [Line Items] | ||
Total | 34,390 | 14,787 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (122) | (71) |
Fair Value | 34,268 | 14,716 |
U.S. Agency securities | ||
Investment [Line Items] | ||
Total | 8,017 | 8,510 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (66) | (51) |
Fair Value | 7,951 | 8,459 |
Commercial paper | ||
Investment [Line Items] | ||
Total | 18,456 | 9,171 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 18,456 | 9,171 |
Asset-backed securities | ||
Investment [Line Items] | ||
Total | 11,968 | 3,026 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | (1) |
Fair Value | 11,967 | 3,025 |
Corporate notes and bonds | ||
Investment [Line Items] | ||
Total | 33,916 | 31,906 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | (59) | (70) |
Fair Value | $ 33,859 | $ 31,836 |
Investments - Schedule of Ava_2
Investments - Schedule of Available-for-Sale Investment Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due in less than 1 year | $ 93,971 | $ 55,801 |
Due in 1-3 years | 25,257 | 25,040 |
Total | 119,228 | 80,841 |
Fair Value | ||
Due in less than 1 year | 93,825 | 55,735 |
Due in 1-3 years | 25,157 | 24,913 |
Total | $ 118,982 | $ 80,648 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of marketable securities | $ 0 | $ 3,000,000 | $ 3,000,000 | $ 9,522,000 |
Gross realized gains or losses from sales of marketable securities | $ 0 | $ 0 | $ 0 | $ 0 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,819 | $ 4,220 |
Work in process | 1,144 | 377 |
Finished goods | 3,443 | 3,466 |
Inventory | $ 9,406 | $ 8,063 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | $ 15,555 | $ 15,555 | $ 11,474 | ||
Accumulated depreciation | (8,143) | (8,143) | (6,584) | ||
Property and equipment, net | 7,412 | 7,412 | 4,890 | ||
Depreciation | 662 | $ 550 | 1,700 | $ 1,600 | |
Transfer of instruments from inventory to property and equipment | 1,200 | 1,900 | |||
Computer equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | 2,801 | 2,801 | 2,756 | ||
Technical equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | 3,820 | 3,820 | 3,348 | ||
Facilities | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | 4,006 | 4,006 | 3,621 | ||
Instruments | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | 4,821 | 4,821 | 1,400 | ||
Capital projects in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | $ 107 | $ 107 | $ 349 |
License Agreements and Grants -
License Agreements and Grants - National Institute of Health Grant (Details) - National Institute of Health Grant - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 44 Months Ended | ||
Feb. 28, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Research and Development Arrangement, Contract to Perform for Others, Proposed Period | 5 years | |||||
Total grant funding | $ 5,000 | $ 69 | $ 180 | $ 167 | $ 183 | |
Cumulative amount awarded | $ 1,100 |
License Agreements and Grants_2
License Agreements and Grants - Arizona Commerce Authority and R&D Refundable Tax Credit Program (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Jan. 31, 2018USD ($) | Aug. 31, 2012USD ($)jobmilestone | Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
Research and Development [Abstract] | ||||
Arizona Commerce Authority grant | $ | $ 1,000,000 | |||
Number of installments | milestone | 4 | |||
Qualified jobs created, milestone 1 | job | 15 | |||
Qualified jobs created, milestone 2 | job | 30 | |||
Qualified jobs created, milestone 3 | job | 40 | |||
Qualified jobs created, milestone 4 | job | 65 | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Revenue recognized | $ | $ 1,000,000 | $ 30,000 | $ 65,000 | |
Minimum | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Capital investment milestone | $ | $ 4,500,000 | |||
Grant related minimum annual wages | $ | $ 63,000 | |||
Percent of company paid premiums | 65.00% |
Deferred Revenue, Income and _3
Deferred Revenue, Income and Remaining Performance Obligations (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Jan. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue and income | $ 202 | $ 202 | $ 1,071 | |
Arizona Commerce Authority grant | 0 | 0 | 1,000 | |
Revenues recognized included in contract liabilities balances | $ 1,000 | 30 | 65 | |
Revenue expected to be recognized from remaining performance obligations | 1,400 | $ 1,400 | ||
Contact period | These contracts typically provide for four-year terms and revenue is recognized on a straight-line basis over the contract term. | |||
Products and services not yet delivered | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue and income | $ 202 | $ 202 | $ 71 |
Convertible Notes (Details)
Convertible Notes (Details) | Apr. 06, 2018USD ($)dayshares | Mar. 27, 2018USD ($)$ / shares | Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) |
Debt Instrument [Line Items] | ||||
Over-allotment option, term | 13 days | |||
Over-allotment option | $ 22,500,000 | |||
Additional proceeds | $ 21,500,000 | |||
Conversion ratio | 0.0323428 | |||
Stock price conversion threshold, percentage | 130.00% | |||
Consecutive trading days | day | 20 | |||
Threshold trading days | 30 | |||
Trading price threshold, percentage | 98.00% | |||
Repurchase principal balance, percent | 100.00% | |||
Unamortized debt discount | $ 50,600,000 | $ 50,600,000 | ||
Debt issuance costs, net | 3,100,000 | 3,100,000 | ||
Interest expense | 1,100,000 | 2,200,000 | ||
Amortization of debt issuance costs | 131,000 | 264,000 | ||
Amortization of the debt discount | 2,100,000 | 4,300,000 | ||
Interest paid | 2,001,000 | |||
Net proceeds from notes to fund Prepaid Forward | $ 45,100,000 | |||
Aggregate number of shares | shares | 1,858,500 | |||
Unsecured obligations | 2.50% Convertible notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 171,500,000 | $ 150,000,000 | ||
Interest rate | 2.50% | |||
Proceeds received | 171,500,000 | |||
Conversion multiple | 1,000 | |||
Initial conversion price (usd per share) | $ / shares | $ 30.92 | |||
Long-term debt | 116,600,000 | 171,500,000 | 171,500,000 | |
Equity component | 54,900,000 | |||
Debt issuance costs | $ 5,000,000 | |||
Contractual term | 5 years | |||
Effective interest rate | 11.52% | |||
Net carrying amount | $ 117,800,000 | $ 117,800,000 | ||
Unsecured obligations | 2.50% Convertible notes due 2023 | Long-term debt | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 3,400,000 | |||
Unsecured obligations | 2.50% Convertible notes due 2023 | Additional paid-in capital | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 1,600,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common stock instruments outstanding (shares) | 8,248 | 7,352 |
Shares issuable upon the release of restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common stock instruments outstanding (shares) | 66 | 24 |
Shares issuable upon exercise of stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common stock instruments outstanding (shares) | 8,182 | 7,328 |
Employee Equity-Based Compens_3
Employee Equity-Based Compensation - Stock Option Activity (Details) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Number of Shares | |
Outstanding, beginning balance (shares) | shares | 7,328,131 |
Granted (shares) | shares | 1,355,371 |
Forfeited (shares) | shares | (131,226) |
Exercised (shares) | shares | (351,626) |
Expired (shares) | shares | (18,266) |
Outstanding, ending balance (shares) | shares | 8,182,384 |
Weighted Average Exercise Price per Share | |
Outstanding, beginning balance (dollars per share) | $ / shares | $ 10.16 |
Granted (dollars per share) | $ / shares | 24.70 |
Forfeited (dollars per share) | $ / shares | 21.35 |
Exercised (dollars per share) | $ / shares | 10.55 |
Expired (dollars per share) | $ / shares | 24.24 |
Outstanding, ending balance (dollars per share) | $ / shares | $ 12.34 |
Employee Equity-Based Compens_4
Employee Equity-Based Compensation - Inputs to Calculate Estimated Fair Value of Options Awarded (Details) - $ / shares | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected term (in years) | 5 years 6 months 11 days | 6 years 5 months 16 days |
Volatility | 58.00% | 74.00% |
Expected dividends | 0.00% | 0.00% |
Risk free interest rates | 2.75% | 2.02% |
Weighted average fair value (dollars per share) | $ 11.48 | $ 15.74 |
Employee Equity-Based Compens_5
Employee Equity-Based Compensation - Stock Option Supplemental Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Options Outstanding | ||
Number of options (shares) | 8,182,384 | 7,328,131 |
Weighted average remaining contractual term (in years) | 6 years 18 days | |
Weighted average exercise price (dollars per share) | $ 12.34 | $ 10.16 |
Weighted average fair value (dollars per share) | $ 8.57 | |
Aggregate intrinsic value (in thousands) | $ 91,273 | |
Options Exercisable | ||
Number of options (shares) | 5,751,558 | |
Weighted average remaining contractual term (in years) | 4 years 11 months 12 days | |
Weighted average exercise price (dollars per share) | $ 8.26 | |
Weighted average fair value (dollars per share) | $ 5.83 | |
Aggregate intrinsic value (in thousands) | $ 85,694 |
Employee Equity-Based Compens_6
Employee Equity-Based Compensation - Restricted Stock Activity (Details) - RSUs and RSAs | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Number of Shares | |
Beginning balance (shares) | shares | 24,150 |
Granted (shares) | shares | 50,000 |
Forfeited (shares) | shares | 0 |
Vested/Released (shares) | shares | (8,050) |
Ending balance (shares) | shares | 66,100 |
Weighted Average Grant Date Fair Value per Share | |
Beginning balance (dollars per share) | $ / shares | $ 26.45 |
Granted (dollars per share) | $ / shares | 20.80 |
Forfeited (dollars per share) | $ / shares | 0 |
Vested/Released (dollars per share) | $ / shares | 26.45 |
Ending balance (dollars per share) | $ / shares | $ 22.18 |
Employee Equity-Based Compens_7
Employee Equity-Based Compensation - Equity-Based Compensation Expense and Tax Benefit (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Equity-based compensation expense | $ 3,465 | $ 3,520 | $ 12,476 | $ 10,970 | |
Unrecognized equity-based compensation cost | 21,500 | $ 21,500 | |||
Granted (shares) | 1,355,371 | ||||
Shares issuable upon the release of restricted stock awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Unrecognized equity-based compensation cost, restricted stock units | 1,100 | $ 1,100 | |||
Performance-based stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Equity-based compensation expense | 545 | 545 | |||
Granted (shares) | 225,000 | ||||
Cost of sales | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Equity-based compensation expense | 68 | 22 | 172 | 44 | |
Research and development | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Equity-based compensation expense | 1,476 | 994 | 3,926 | 2,886 | |
Sales, general and administrative | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Equity-based compensation expense | $ 1,921 | $ 2,504 | 8,378 | 8,040 | |
Capitalized inventory | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Equity-based compensation expense | 380 | 262 | |||
Property and equipment | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Equity-based compensation expense | $ 170 | $ 33 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 147 | $ 45 | $ 432 | $ 220 |
Pre-tax loss | $ 21,951 | $ 17,030 | $ 65,703 | $ 47,513 |
Commitments - Narrative (Detail
Commitments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rent expense | $ 338 | $ 303 | $ 1,000 | $ 928 |
Commitments - Operating Lease O
Commitments - Operating Lease Obligations (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Year ending December 31: | |
2,018 | $ 284 |
2,019 | 266 |
2,020 | 145 |
2,021 | 98 |
2,022 | 22 |
Thereafter | 0 |
Total operating lease obligations | $ 815 |
Industry and Geographic Infor_3
Industry and Geographic Information - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | |||||
Number of operating segments | segment | 1 | ||||
Segment Reporting Information [Line Items] | |||||
Trade accounts receivable | $ 1,440 | $ 1,440 | $ 1,946 | ||
Lease Income | $ 229 | $ 8 | $ 410 | $ 21 | |
Geographic concentration | Foreign | Total revenue | |||||
Segment Reporting Information [Line Items] | |||||
Risk concentration | 14.00% | 39.00% | 22.00% | 24.00% | |
Geographic concentration | Foreign | Net accounts receivable | |||||
Segment Reporting Information [Line Items] | |||||
Trade accounts receivable | $ 621 | $ 621 | $ 1,000 |
Industry and Geographic Infor_4
Industry and Geographic Information - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,355 | $ 828 | $ 3,848 | $ 2,058 |
Accelerate Pheno™ revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,325 | 803 | 3,760 | 1,983 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 30 | 25 | 88 | 75 |
Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,331 | 820 | 3,798 | 2,044 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 24 | 8 | 50 | 14 |
Domestic | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,172 | 507 | 2,988 | 1,569 |
Foreign | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 183 | $ 321 | $ 860 | $ 489 |
Industry and Geographic Infor_5
Industry and Geographic Information - Long-lived Assets by Geographic Territory (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Long-lived assets (excluding intangible assets) | $ 7,412 | $ 4,890 |
Property and equipment | Geographic concentration | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets (excluding intangible assets) | 7,412 | 4,890 |
Property and equipment | Geographic concentration | Domestic | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets (excluding intangible assets) | 6,195 | 3,779 |
Property and equipment | Geographic concentration | Foreign | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets (excluding intangible assets) | $ 1,217 | $ 1,111 |
Related Party Transaction (Deta
Related Party Transaction (Details) | Sep. 30, 2018USD ($) |
Director | Note holder | |
Related Party Transaction [Line Items] | |
Aggregate principal amount | $ 30,000,000 |