Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Accelerate Diagnostics, Inc. | |
Entity Central Index Key | 0000727207 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 54,459,889 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 75,309 | $ 66,260 |
Investments | 75,550 | 100,218 |
Trade accounts receivable | 1,950 | 1,860 |
Inventory | 8,599 | 7,746 |
Prepaid expenses | 1,880 | 980 |
Other current assets | 712 | 576 |
Total current assets | 164,000 | 177,640 |
Property and equipment, net | 7,242 | 7,303 |
Right of use assets | 487 | |
Intellectual property, net | 108 | 114 |
Other non-current assets | 348 | 208 |
Total assets | 172,185 | 185,265 |
Current liabilities: | ||
Accounts payable | 2,505 | 1,322 |
Accrued liabilities | 3,236 | 4,962 |
Accrued interest | 191 | 1,262 |
Deferred revenue and income | 291 | 217 |
Current operating lease liability | 244 | |
Total current liabilities | 6,467 | 7,763 |
Noncurrent operating lease liability | 243 | |
Other long term liabilities | 46 | 53 |
Convertible notes | 122,461 | 120,074 |
Total liabilities | 129,217 | 127,890 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred shares | 0 | 0 |
Common stock | 54 | 54 |
Contributed capital | 440,154 | 432,885 |
Treasury Stock | (45,067) | (45,067) |
Accumulated deficit | (352,069) | (330,348) |
Accumulated other comprehensive loss | (104) | (149) |
Total stockholders’ equity | 42,968 | 57,375 |
Total liabilities and stockholders’ equity | $ 172,185 | $ 185,265 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 1,750 | $ 801 |
Cost of sales | 916 | 492 |
Gross profit | 834 | 309 |
Costs and expenses: | ||
Research and development | 6,933 | 6,782 |
Sales, general and administrative | 12,723 | 14,353 |
Total costs and expenses | 19,656 | 21,135 |
Loss from operations | (18,822) | (20,826) |
Other income (expense): | ||
Interest expense | (3,459) | (158) |
Foreign currency exchange (loss) gain | (59) | 55 |
Interest income | 842 | 301 |
Other expense (net) | (2) | 0 |
Total other (expense) income, net | (2,678) | 198 |
Net loss before income taxes | (21,500) | (20,628) |
Provision for income taxes | (221) | (184) |
Net loss | $ (21,721) | $ (20,812) |
Basic and diluted net loss per share (usd per share) | $ (0.40) | $ (0.37) |
Weighted average shares outstanding (shares) | 54,337 | 55,640 |
Other comprehensive loss: | ||
Net loss | $ (21,721) | $ (20,812) |
Net unrealized gain (loss) on available-for-sale investments | 121 | (53) |
Foreign currency translation adjustment | (76) | 112 |
Comprehensive loss | $ (21,676) | $ (20,753) |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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) | 54,454,347 | 54,231,909 |
Common Stock, shares outstanding (shares) | 54,454,347 | 54,231,909 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (21,721) | $ (20,812) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization of property and equipment and operating lease assets | 626 | 544 |
Amortization of investment discount | (180) | 19 |
Equity-based compensation | 3,397 | 5,602 |
Amortization of debt discount and issuance costs | 2,387 | 158 |
Realized gain on sale of investments | (2) | 0 |
Loss on disposal of property and equipment | 329 | 11 |
(Increase) decrease in assets: | ||
Accounts receivable | (90) | 881 |
Inventory | (1,567) | (1,917) |
Prepaid expense and other | (1,041) | (989) |
Increase (decrease) in liabilities: | ||
Accounts payable | 1,151 | 701 |
Accrued liabilities, and other | (1,790) | 733 |
Accrued interest | (1,071) | 0 |
Deferred revenue and income | 74 | (1,003) |
Deferred compensation | (7) | 4 |
Net cash used in operating activities | (19,505) | (16,068) |
Cash flows from investing activities: | ||
Purchases of equipment | (37) | (1,294) |
Purchase of marketable securities | (12,826) | (9,356) |
Proceeds from sales of marketable securities | 9,000 | 3,000 |
Maturities of marketable securities | 28,662 | 20,125 |
Net cash provided by investing activities | 24,799 | 12,475 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 139 | 134 |
Proceeds from exercise of options | 3,677 | 1,112 |
Proceeds from issuance of convertible note | 0 | 150,000 |
Prepayment of forward stock repurchase transaction | 0 | (45,069) |
Payment of debt issuance costs | 0 | (4,330) |
Net cash provided by financing activities | 3,816 | 101,847 |
Effect of exchange rate on cash | (61) | 80 |
Increase in cash and cash equivalents | 9,049 | 98,334 |
Cash and cash equivalents, beginning of period | 66,260 | 28,513 |
Cash and cash equivalents, end of period | 75,309 | 126,847 |
Non-cash investing activities: | ||
Transfer of instruments from inventory to property and equipment | 769 | 0 |
Supplemental cash flow information: | ||
Interest paid | 2,144 | 0 |
Income taxes paid | $ 2 | $ 0 |
CONDENSED CONSOLIDATEDSTATEMENT
CONDENSED CONSOLIDATEDSTATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Contributed Capital | Accumulated Deficit | Treasury stock | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance, amount at Dec. 31, 2017 | $ 118,704 | $ 56 | $ 360,620 | $ (241,972) | $ 0 | $ 0 |
Beginning Balance (shares) at Dec. 31, 2017 | 55,674,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (20,812) | (20,812) | ||||
Exercise of options | 1,112 | 1,112 | ||||
Exercise of options (shares) | 128,000 | |||||
Issuance of common stock under employee purchase plan | 134 | 134 | ||||
Issuance of common stock under employee purchase plan (shares) | 7,000 | |||||
Unrealized loss on available-for-sale securities | (53) | (53) | ||||
Foreign currency translation adjustment | 112 | 112 | ||||
Repurchase of common stock under Prepaid Forward contract | (45,069) | $ (2) | (45,067) | |||
Repurchase of common stock under Prepaid Forward contract (shares) | (1,859,000) | |||||
Issuance of convertible note | 46,614 | 46,614 | ||||
Equity-based compensation | 5,782 | 5,782 | ||||
Ending Balance, amount at Mar. 31, 2018 | 106,475 | $ 54 | 414,262 | (262,833) | (45,067) | 59 |
Ending Balance (shares) at Mar. 31, 2018 | 53,950,000 | |||||
Beginning Balance, amount at Dec. 31, 2018 | 57,375 | $ 54 | 432,885 | (330,348) | (45,067) | (149) |
Beginning Balance (shares) at Dec. 31, 2018 | 54,232,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (21,721) | (21,721) | ||||
Exercise of options | $ 3,677 | 3,677 | ||||
Exercise of options (shares) | 208,044 | 215,000 | ||||
Issuance of common stock under employee purchase plan | $ 139 | 139 | ||||
Issuance of common stock under employee purchase plan (shares) | 7,000 | |||||
Unrealized loss on available-for-sale securities | 121 | 121 | ||||
Foreign currency translation adjustment | (76) | (76) | ||||
Equity-based compensation | 3,453 | 3,453 | ||||
Ending Balance, amount at Mar. 31, 2019 | $ 42,968 | $ 54 | $ 440,154 | $ (352,069) | $ (45,067) | $ (104) |
Ending Balance (shares) at Mar. 31, 2019 | 54,454,000 |
Organization and Nature of Busi
Organization and Nature of Business; Basis of Presentation; Principles of Consolidation; Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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 condensed consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 , as filed with the SEC on March 1, 2019. The condensed consolidated balance sheet as of December 31, 2018 included herein was derived from the audited financial statements as of that date, but does not include all disclosures 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, 2019 , or any future period. All amounts are rounded to the nearest thousand dollars unless otherwise indicated. Principles of Consolidation The condensed 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 condensed 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 condensed 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, inventory, property and equipment, accrued liabilities, warranty liabilities, tax valuation accounts and equity–based compensation. Actual results could differ materially from those estimates. Estimated Fair Value of Financial Instruments The Company follows ASC 820 , Fair Value Measurement, which has defined fair value and requires the Company to establish a framework for measuring and disclosing fair value. 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 10, 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 in various investments which are primarily held in the custody of major financial institutions. Investments consist of certificates of deposit, 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 is stated at the lower of cost or net realizable value. The Company determines the cost of inventory using the first-in, first out method. The Company estimates the recoverability of inventory by reference to internal estimates of future demands and product life cycles, including expiration. The Company periodically analyzes its inventory levels to identify inventory that may expire prior to expected sale or has a cost basis in excess of its estimated net realizable value and records a charge to expense for such inventory as appropriate. Accounts Receivable Accounts receivable consist of amounts due to the Company for sales to customers and are based on what we expect to collect in exchange for goods and services. Receivables are written off if reasonable collection efforts prove unsuccessful. The Company provides for allowances on a specific account basis by recording adjustments to revenue, if necessary. No allowances were recorded at March 31, 2019 and December 31, 2018 . 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 year 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 Accelerate Pheno™ systems (also referred to as instruments) used for sales demonstrations, instruments under rental agreements and instruments used for research and development. Depreciation expense for instruments used for sales demonstrations is recorded as a component of sales, general and administrative expense. Depreciation expense for instruments placed at customer sites pursuant to reagent rental agreements is recorded as a component of cost of sales. Depreciation expense for instruments used in our laboratory and research is recorded as a component of research and development expense. The Company retains title to these instruments and depreciates them over five years . 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 sixty 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 our estimate of future repair events and the related estimated cost of 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 months ended March 31, 2019 and 2018 is as follows (in thousands): Three Months Ended March 31, March 31, 2019 2018 Beginning balance $ 215 $ 192 Provisions 70 121 Warranty incurred (79 ) (137 ) Ending balance $ 206 $ 176 Convertible Notes The Company issued convertible notes in 2018 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 The Company 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. Our payment terms vary by the type and location of our customers and the product or services offered and range between 30 and 150 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 three months ended March 31, 2019 . Cost of Sales Cost of sales includes cost of materials, direct labor, equity-based compensation, facility and other manufacturing overhead costs for consumable tests and instruments sold to customers. Cost of sales for instruments also includes depreciation on revenue generating instruments that have been placed with our customers under a reagent rental agreement. Cost of sales includes repair and maintenance cost for instruments covered by a service agreement or instruments covered by a reagent rental agreement. Cost of sales also includes warranty related expenses. 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 842, Leases , which was adopted on January 1, 2019. We determine if an arrangement is or contains a lease and the type of lease at inception. The Company classifies leases as finance leases (lessee) or sales-type leases (lessor) when there is either a transfer of ownership of the underlying asset by the end of the lease term, the lease contains an option to purchase the asset that we are reasonably certain will be exercised, the lease term is for the major part of the remaining economic life of the asset, the present value of the lease payments and any residual value guarantee equals or substantially exceeds all the fair value of the asset, or the asset is of such a specialized nature that it will have no alternative use to the lessor at the end of the lease term. Payments contingent on future events (i.e. based on usage) are considered variable and excluded from lease payments for the purposes of classification and initial measurement. Several of our leases include options to renew or extend the term upon mutual agreement of the parties and others include one-year extensions exercisable by the lessee. None of our leases contain residual value guarantees, restrictions, or covenants. To determine whether a contract contains a lease, the Company uses its judgment in assessing whether the lessor retains a material amount of economic benefit from an underlying asset, whether explicitly or implicitly identified, which party holds control over the direction and use of the asset, and whether any substantive substitution rights over the asset exist. Lessee Operating leases are included in right-of-use (“ROU”) assets and operating lease liabilities within our condensed consolidated balance sheets. These assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and their related liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Typically, we use our incremental borrowing rate based on the information available at commencement in determining the present value of lease payments. We use the implicit rate when readily determinable. ROU assets are net of lease payments made and exclude lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term, which may include options to extend or terminate the lease when it is reasonably certain that we will exercise the option. As of adoption of ASC 842 and as of March 31, 2019 , the Company was not party to finance lease arrangements. Our leases consist primarily of leased office, factory, and laboratory space in the United States and office space and automobiles in Europe, have between two and five -year terms, and typically contain penalizing, early-termination provisions. Lessor The Company leases instruments to customers under “reagent rental” agreements, under which the customer agrees to purchase consumable products over a stated term, typically five years or less, for a volume-based price that includes an embedded rental for the instruments. When collectibility is probable, that amount is recognized as income at lease commencement for sales-type leases and on a straight-line basis over the term for operating leases, which typically include a termination without cause or penalty provision given a short notice period. Consideration is allocated between lease and non-lease components based on stand-alone selling price in accordance with ASC 606, Revenue from Contracts with Customers. Net investment in sales-type leases are included within our condensed consolidated balance sheets as a component of other current assets and other non-current assets, which include the present value of lease payments not yet received and the present value of the residual asset, which is determined using the information available at commencement, including the lease term and estimated useful life and expected fair value of the instrument. Equity-Based Compensation The Company may award stock options, restricted stock units (“RSUs”), 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. • Volatility: The expected volatility is based on the historical volatility of the Company's stock price over the most recent period commensurate with the expected term of the stock option award. • Expected term: The estimated expected term for employee awards is based on the calculation published by the SEC in SAB110 for use when there is not a sufficient history of employee exercise patterns. For consultant awards, the estimated expected term is the same as the life of the award. • Risk-free interest rate: The risk-free interest rate is based on published U.S. Treasury rates for a term commensurate with the expected term. • Dividend yield: The dividend yield is estimated as zero as the Company has not paid dividends in the past and does not have any plans to pay any dividends in the foreseeable future. The Company records the fair value of RSUs or stock grants based on published closing market price on the day before the grant date. The Company accounts for forfeitures as they occur rather than on an estimated basis. 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 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 be more likely than not certain of sustaining the position, 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 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). 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 statement 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. Potentially dilutive common shares consist of shares issuable from stock options and unvested RSUs. Potentially dilutive common shares would also include common shares that would be outstanding if notes convertible at the balance sheet date were converted. Diluted earnings are not presented when the effect of adding such additional common shares is antidilutive. Earnings per share are restated when certain transactions or events, including rights offerings determined to have bonus elements have occurred. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | NOTE 2. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Standards that were adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 “Leases,” which together with subsequent amendments is included in ASC 842. ASC 842 requires a lessee to recognize a liability to make lease payments and an asset with respect to its right to use the underlying asset for the lease term. ASC 842 also addresses accounting and reporting by lessors, which is not significantly different from current accounting and reporting, and further provides for qualitative and quantitative disclosures. We adopted ASC 842 on January 1, 2019 using the optional transition method allowed by ASU 2018-11. This optional transition method allowed the Company to apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. For contracts where we are the lessee, we recorded lease liabilities and right of use assets for contracts in effect on January 1, 2019 based on the facts and circumstances as of that date. The Company elected not to reassess whether any expired or existing contracts are or contain leases, not to reassess the lease classification for any expired or existing leases, not to reassess initial direct costs for any existing leases, and not to separate the lease components from the non-lease components for all classes of underlying assets. We recognized right of use assets and lessee lease liabilities of $0.6 million with respect to operating leases where we are the lessee. We also implemented internal controls and key system functionality to enable the preparation of financial information on adoption. The adoption of ASC 842 did not have a material effect on our consolidated financial position, results of operations or cash flows. 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. The Company adopted ASU 2018-07 on January 1, 2019 , which did not have an effect on our consolidated financial statements as all share-based awards granted to nonemployees are fully vested. 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. The Company adopted ASU 2018-02 on January 1, 2019 , with no impact to our consolidated financial statements as no amounts were reclassified from accumulated other comprehensive income to retained earnings for tax effects resulting from the Tax Act. 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. 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. The Company adopted ASU 2017-08 on January 1, 2019 , with no impact to the consolidated financial statements as we do not carry callable securities held at a premium. Standards not yet adopted In August 2018, the 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 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326); Measurement of Credit Losses on Financial Instruments. ASU 2019-04 and ASU 2018-19 were issued which amended the standard. 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 will have a significant impact on our consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The following tables represent the financial instruments measured at fair value on a recurring basis in the financial statements of the Company and the valuation approach applied to each class of financial instruments at March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Quoted Prices Significant Significant Total Assets: Cash and cash equivalents: Money market funds $ 47,788 $ — $ — $ 47,788 Commercial paper — 5,182 — 5,182 Corporate notes and bonds — 1,227 — 1,227 Total cash and cash equivalents $ 47,788 $ 6,409 $ — $ 54,197 Investments: Certificates of deposit — 8,809 — 8,809 U.S. Treasury securities 25,387 — — 25,387 U.S. Agency securities — 6,501 — 6,501 Commercial paper — 8,463 — 8,463 Asset-backed securities — 4,391 — 4,391 Corporate notes and bonds — 21,999 — 21,999 Total investments 25,387 50,163 — 75,550 Total assets measured at fair value $ 73,175 $ 56,572 $ — $ 129,747 December 31, 2018 Quoted Prices Significant Significant Total Assets: Cash and cash equivalents: Money market funds $ 38,444 $ — $ — $ 38,444 Commercial paper — 1,493 — 1,493 Total cash and cash equivalents 38,444 1,493 — 39,937 Investments: Certificates of deposit — 10,787 — 10,787 U.S. Treasury securities 22,120 — — 22,120 U.S. Agency securities — 7,980 — 7,980 Commercial paper — 17,025 — 17,025 Asset-backed securities — 11,998 — 11,998 Corporate notes and bonds — 30,308 — 30,308 Total investments 22,120 78,098 — 100,218 Total assets measured at fair value $ 60,564 $ 79,591 $ — $ 140,155 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 three months ended March 31, 2019 . 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 10, Convertible Notes . At March 31, 2019 and December 31, 2018 , the respective fair value of the Notes was $141.5 million and $121.4 million . The fair value of the Notes 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. The fair value of the Notes are classified as Level 2 within the fair value hierarchy. |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Mar. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
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 March 31, 2019 , two of the Company's financial institutions held 47% and 46% of the Company’s cash and cash equivalents, respectively. As of December 31, 2018 , two of the Company's financial institutions held 46% and 43% of the Company’s cash and cash equivalents, respectively. The Company grants credit to domestic and international customers. Exposure to losses on accounts receivable is principally dependent on each client's financial position. The Company had one customer that accounted for 17% of the Company’s net accounts receivable balance as of March 31, 2019 , and one customer that accounted for 10% of the Company's net accounts receivable balance as of December 31, 2018 . Customers who represented 10% or more of the Company’s total revenue for the three months ended March 31, 2019 and 2018 were as follows: Three Months Ended March 31, 2019 2018 Company A 19% 14% Company B * 26% Company C * 12% Company D * 11% * Less than 10% for the period indicated |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | NOTE 5. INVESTMENTS The following tables summarize the Company’s available-for-sale investments at March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 8,817 $ 9 $ (17 ) $ 8,809 U.S. Treasury securities 25,401 8 (22 ) 25,387 U.S. Agency securities 6,521 — (20 ) 6,501 Commercial paper 8,463 — — 8,463 Asset-backed securities 4,390 1 — 4,391 Corporate notes and bonds 22,008 4 (13 ) 21,999 Total $ 75,600 $ 22 $ (72 ) $ 75,550 December 31, 2018 Amortized Gross Gross Fair Value Certificates of deposit $ 10,787 $ — $ — $ 10,787 U.S. Treasury securities 22,185 1 (66 ) 22,120 U.S. Agency securities 8,024 1 (45 ) 7,980 Commercial paper 17,025 — — 17,025 Asset-backed securities 12,007 — (9 ) 11,998 Corporate notes and bonds 30,361 — (53 ) 30,308 Total $ 100,389 $ 2 $ (173 ) $ 100,218 The following table summarizes the maturities of the Company’s available-for-sale securities at March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Amortized Fair Value Amortized Fair Value Due in less than 1 year $ 68,462 $ 68,394 $ 83,030 $ 82,893 Due in 1-3 years 7,138 7,156 17,359 17,325 Total $ 75,600 $ 75,550 $ 100,389 $ 100,218 Proceeds from sales of marketable securities (including principal paydowns) for the three months ended March 31, 2019 and 2018 were $9.0 million and $3.0 million , respectively. The Company determines gains and losses of marketable securities based on specific identification of the securities sold. There were no material realized gains from sales of marketable securities for the three months ended March 31, 2019 and 2018 . No material balances were reclassified out of accumulated other comprehensive income (loss) for the three months ended March 31, 2019 and 2018 . The Company monitors investments for other-than-temporary impairment. It was determined that unrealized gains and losses as of March 31, 2019 and December 31, 2018 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 | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 6. INVENTORY Inventories consisted of the following at March 31, 2019 and December 31, 2018 (in thousands): March 31, December 31, 2019 2018 Raw materials $ 5,080 $ 4,064 Work in process 735 495 Finished goods 2,784 3,187 Inventory $ 8,599 $ 7,746 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 7. PROPERTY AND EQUIPMENT Property and equipment consisted of the following at March 31, 2019 and December 31, 2018 (in thousands): March 31, December 31, 2019 2018 Computer equipment $ 2,733 $ 2,700 Technical equipment 3,949 3,868 Facilities 4,031 4,037 Instruments 5,663 5,318 Capital projects in progress 38 91 Total property and equipment $ 16,414 $ 16,014 Accumulated depreciation (9,172 ) (8,711 ) Property and equipment, net $ 7,242 $ 7,303 Depreciation expense for the three months ended March 31, 2019 and 2018 was $0.6 million and $0.5 million , respectively. The underlying gross assets under operating leases where the Company is the lessor is $0.7 million at March 31, 2019 . The underlying accumulated depreciation under operating leases were the Company is the lessor is $0.1 million at March 31, 2019 . |
License Agreements and Grants
License Agreements and Grants | 3 Months Ended |
Mar. 31, 2019 | |
Research and Development [Abstract] | |
License Agreements and Grants | NOTE 8. 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 $1.3 million . The amount invoiced for each of the three months ended March 31, 2019 and 2018 was $0.1 million . 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. Pursuant to the Grant Agreement, the Authority provided a total grant in the amount of $1.0 million , which was recognized in January 2018 as an offset to expense after the achievement of all grant requirements. |
Deferred Revenue, Income and Re
Deferred Revenue, Income and Remaining Performance Obligations | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue, Income and Remaining Performance Obligations | NOTE 9. 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 March 31, 2019 and December 31, 2018 follows (in thousands): March 31, December 31, 2019 2018 Products and services not yet delivered $ 291 $ 217 We recognized $37,000 of revenues that were included in the beginning contract liabilities balances during each of the three months ended March 31, 2019 and 2018 . 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 March 31, 2019 , $ 1.9 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 service contracts typically provide for four-year terms and revenue is recognized on a straight-line basis. The balance also includes product shipments for reagent rental, sales-type lease agreements. The agreements have between two and four year terms and revenue is recognized as product is shipped, typically in a straight-line pattern. 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 | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Notes | NOTE 10. 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. Convertible notes consisted of the following as of March 31, 2019 and December 31, 2018 follows (in thousands): March 31, December 31, 2019 2018 Outstanding principal $ 171,500 $ 171,500 Unamortized debt discount (46,182 ) (48,430 ) Unamortized debt issuance (2,857 ) (2,996 ) Net carrying amount of the liability component 122,461 120,074 The Company recorded $1.1 million and $0.1 million for contractual coupon interest for the three months ended March 31, 2019 and 2018 , respectively. The Company also recorded $0.1 million and no material amounts for amortization of debt issuance costs for the three months ended March 31, 2019 and 2018 , respectively, and $2.2 million and $0.1 million for amortization of the debt discount for the three months ended March 31, 2019 and 2018 , respectively. As of March 31, 2019 , 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 | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 11. 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 for the three months ended March 31, 2019 and 2018 (in thousands): 2019 2018 Shares issuable upon the release of restricted stock awards 30 16 Shares issuable upon exercise of stock options 9,160 8,084 9,190 8,100 Potentially dilutive common shares would also include common shares that would be outstanding if Notes convertible at the balance sheet date were converted. As discussed in Note 10, Convertible Notes , the Company issued $171.5 million of Notes due 2023. 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. As of March 31, 2019 , no Notes were convertible pursuant to their terms. The number of shares issuable upon conversion of the Notes is 5.5 million shares. In connection with the Notes, the Company entered into a prepaid forward stock repurchase transaction. The aggregate number of shares of the Company’s common stock underlying the Prepaid Forward was approximately 1,858,500 . 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. |
Employee Equity-Based Compensat
Employee Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Equity-Based Compensation | NOTE 12. EMPLOYEE EQUITY-BASED COMPENSATION The following table summarizes option activity under all plans during the three months ended March 31, 2019 : Number of Shares Weighted Average Exercise Price per Share Options Outstanding January 1, 2019 8,090,636 $ 12.22 Granted 1,468,949 11.66 Forfeited (169,423 ) 21.05 Exercised (208,044 ) 17.68 Expired (22,576 ) 23.27 Options Outstanding March 31, 2019 9,159,542 $ 11.81 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 March 31, March 31, 2019 2018 Expected term (in years) 6.17 6.11 Volatility 62 % 68 % Expected dividends — — Risk free interest rates 2.59 % 2.69 % Weighted average fair value $ 6.90 $ 16.25 The following table shows summary information for outstanding options and options that are exercisable (vested) as of March 31, 2019 : Options Outstanding Options Exercisable Number of options 9,159,542 5,987,089 Weighted average remaining contractual term (in years) 6.08 4.63 Weighted average exercise price $ 11.81 $ 8.75 Weighted average fair value $ 7.91 $ 5.95 Aggregate intrinsic value (in thousands) $ 92,541 $ 76,978 The following table summarizes RSU and restricted stock award activity during the three months ended March 31, 2019 : Number of Shares Weighted Average Grant Date Fair Value per Share Outstanding January 1, 2019 76,000 $ 18.70 Granted 11,000 20.32 Forfeited (50,000 ) 20.80 Vested/released (7,000 ) 19.47 Outstanding March 31, 2019 30,000 15.62 Equity-based compensation is summarized below (in thousands): Three Months Ended March 31, March 31, 2019 2018 Cost of sales $ 55 $ 46 Research and development 1,527 1,612 Sales, general and administrative 1,815 3,944 Equity-based compensation expense $ 3,397 $ 5,602 During the three months ended March 31, 2019 and 2018 , $0.1 million and $0.2 million , respectively, of share-based compensation cost was capitalized to inventory or inventory transfered to property and equipment (also referred to as instruments). As of March 31, 2019 , unrecognized equity-based compensation expense related to unvested stock options and unvested RSUs was $22.5 million and $0.4 million , respectively. This is expected to be recognized over the years 2019 through 2024 . 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. Performance-based options are generally granted at-the-money, contingently vest over a period of 1 to 2 years, depending on the nature of the performance goal, and have contractual lives of 10 years . These options were valued in the same manner as the time-based options, with the assumption that performance goals will be achieved. The inputs for expected volatility, expected dividends, and risk-free rate used in estimating those options’ fair value are the same as the time-based options issued under the plan. The expected term for performance-based options granted in 2018 is 5 to 6 years. 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 2018 , the Company granted 225,000 performance based-options to certain employees. The Company recognized $0.1 million of stock compensation expense for the three months ended March 31, 2019 for performance-based stock options. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 13. INCOME TAXES For the three months ended March 31, 2019 , the Company recorded a provision for income taxes of $0.2 million , which primarily relates to profitable foreign jurisdictions without any net operating loss carryforwards. The Company’s tax expense for the three months ended March 31, 2019 differs from the tax expense computed by applying the U.S. statutory tax rate to its year-to-date pre-tax loss of $21.5 million , as no tax benefits were recorded for tax losses generated in the U.S. and other foreign jurisdictions. At March 31, 2019 , the Company had deferred tax assets primarily related to U.S. federal and state tax loss carryforwards and a deferred tax liability related to amortization of the convertible notes. The Company provided a valuation allowance against its net 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 months ended March 31, 2019 , 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. |
Commitments
Commitments | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | NOTE 14. COMMITMENTS 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 expenses for start-up costs and work performed for these trials and studies is recorded as research and development or sales, general and administrative expenses on the Company's condensed consolidated statements of operations and comprehensive loss. No commitments were recorded in connection with indemnify these sites for losses. |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lesses | NOTE 15. LEASES The following presents supplemental information related to our leases in which we are the lessee for the three months ended March 31, 2019 (in thousands except lease term and discount rate): Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 82 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — Lease Cost Operating leases $ 82 Short-term leases (including leases with a term of one month or less) $ 295 Weighted average remaining lease term (years) Operating leases 2.3 years Weighted average discount rate (%) Operating leases 6.9 % Total rent expense including common area charges was $342,000 for the three months ended March 31, 2018. The following presents maturities of operating lease liabilities in which we are the lessee as of March 31, 2019 (in thousands): Remainder of 2019 $ 195 2020 174 2021 116 2022 44 2023 — Thereafter — Total lease payments 529 Less imputed interest (42 ) Total $ 487 The net investment in sales-type leases, where we are the lessor, is a component of other current assets and other non-current assets in our condensed consolidated balance sheet. As of March 31, 2019 the total net investment in leases was $0.5 million . The following presents maturities of lease receivables under sales-type leases which we are the lessor as of March 31, 2019 (in thousands): Remainder of 2019 $ 135 2020 139 2021 91 2022 73 2023 36 Thereafter 7 Total undiscounted cash flows 481 Less imputed interest (5 ) Present value of lease payments $ 476 |
Industry, Geographic and Revenu
Industry, Geographic and Revenue Disaggregation | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Industry, Geographic and Revenue Disaggregation | NOTE 16. INDUSTRY, GEOGRAPHIC AND REVENUE DISAGGREGATION The Company operates as one operating segment. Sales to customers outside the United States represented 33% and 26% for the three months ended March 31, 2019 and 2018 , respectively. As of March 31, 2019 and December 31, 2018 , balances due from foreign customers, in U.S. dollars, were $1.2 million and $0.9 million , respectively. The following presents total net sales by geographic territory for the three months ended March 31, 2019 and 2018 (in thousands): 2019 2018 Domestic $ 1,169 $ 595 Foreign 581 206 Net sales $ 1,750 $ 801 The following presents total net sales by line of business for the three months ended March 31, 2019 and 2018 (in thousands): 2019 2018 Accelerate Pheno™ revenue $ 1,705 $ 770 Other revenue 45 31 Net sales $ 1,750 $ 801 The following presents total net sales by products and services for the three months ended March 31, 2019 and 2018 (in thousands): 2019 2018 Products $ 1,693 $ 796 Services 57 5 Net sales $ 1,750 $ 801 Lease income included in net sales for the three months ended March 31, 2019 and 2018 was $0.2 million and no material amounts, 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): March 31, December 31, 2019 2018 Domestic $ 6,315 $ 6,309 Foreign 927 994 Property and equipment, net $ 7,242 $ 7,303 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 17. RELATED PARTY TRANSACTIONS As part of the transaction discussed in Note 10, Convertible Notes , an affiliate of one member of the Company's board of directors purchased an aggregate of $30.0 million of the Notes. The affiliated entity is a Qualified Institutional Buyer which purchased and holds the Notes at March 31, 2019 . |
Organization and Nature of Bu_2
Organization and Nature of Business; Basis of Presentation; Principles of Consolidation; Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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 condensed consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 , as filed with the SEC on March 1, 2019. The condensed consolidated balance sheet as of December 31, 2018 included herein was derived from the audited financial statements as of that date, but does not include all disclosures 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, 2019 , or any future period. All amounts are rounded to the nearest thousand dollars unless otherwise indicated. |
Principles of Consolidation | Principles of Consolidation The condensed 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 condensed 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 condensed 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, inventory, property and equipment, accrued liabilities, warranty liabilities, tax valuation accounts and equity–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 ASC 820 , Fair Value Measurement, which has defined fair value and requires the Company to establish a framework for measuring and disclosing fair value. 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 in various investments which are primarily held in the custody of major financial institutions. Investments consist of certificates of deposit, 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 Inventory is stated at the lower of cost or net realizable value. The Company determines the cost of inventory using the first-in, first out method. The Company estimates the recoverability of inventory by reference to internal estimates of future demands and product life cycles, including expiration. The Company periodically analyzes its inventory levels to identify inventory that may expire prior to expected sale or has a cost basis in excess of its estimated net realizable value and records a charge to expense for such inventory as appropriate. |
Accounts Receivable | Accounts Receivable Accounts receivable consist of amounts due to the Company for sales to customers and are based on what we expect to collect in exchange for goods and services. Receivables are written off if reasonable collection efforts prove unsuccessful. The Company provides for allowances on a specific account basis by recording adjustments to revenue, if necessary. |
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 year 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 Accelerate Pheno™ systems (also referred to as instruments) used for sales demonstrations, instruments under rental agreements and instruments used for research and development. Depreciation expense for instruments used for sales demonstrations is recorded as a component of sales, general and administrative expense. Depreciation expense for instruments placed at customer sites pursuant to reagent rental agreements is recorded as a component of cost of sales. Depreciation expense for instruments used in our laboratory and research is recorded as a component of research and development expense. The Company retains title to these instruments and depreciates them over five years . |
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 sixty 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 our estimate of future repair events and the related estimated cost of 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 in 2018 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 The Company 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. Our payment terms vary by the type and location of our customers and the product or services offered and range between 30 and 150 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 three months ended March 31, 2019 . Cost of Sales Cost of sales includes cost of materials, direct labor, equity-based compensation, facility and other manufacturing overhead costs for consumable tests and instruments sold to customers. Cost of sales for instruments also includes depreciation on revenue generating instruments that have been placed with our customers under a reagent rental agreement. Cost of sales includes repair and maintenance cost for instruments covered by a service agreement or instruments covered by a reagent rental agreement. Cost of sales also includes warranty related expenses. 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 842, Leases , which was adopted on January 1, 2019. We determine if an arrangement is or contains a lease and the type of lease at inception. The Company classifies leases as finance leases (lessee) or sales-type leases (lessor) when there is either a transfer of ownership of the underlying asset by the end of the lease term, the lease contains an option to purchase the asset that we are reasonably certain will be exercised, the lease term is for the major part of the remaining economic life of the asset, the present value of the lease payments and any residual value guarantee equals or substantially exceeds all the fair value of the asset, or the asset is of such a specialized nature that it will have no alternative use to the lessor at the end of the lease term. Payments contingent on future events (i.e. based on usage) are considered variable and excluded from lease payments for the purposes of classification and initial measurement. Several of our leases include options to renew or extend the term upon mutual agreement of the parties and others include one-year extensions exercisable by the lessee. None of our leases contain residual value guarantees, restrictions, or covenants. To determine whether a contract contains a lease, the Company uses its judgment in assessing whether the lessor retains a material amount of economic benefit from an underlying asset, whether explicitly or implicitly identified, which party holds control over the direction and use of the asset, and whether any substantive substitution rights over the asset exist. Lessee Operating leases are included in right-of-use (“ROU”) assets and operating lease liabilities within our condensed consolidated balance sheets. These assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and their related liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Typically, we use our incremental borrowing rate based on the information available at commencement in determining the present value of lease payments. We use the implicit rate when readily determinable. ROU assets are net of lease payments made and exclude lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term, which may include options to extend or terminate the lease when it is reasonably certain that we will exercise the option. As of adoption of ASC 842 and as of March 31, 2019 , the Company was not party to finance lease arrangements. Our leases consist primarily of leased office, factory, and laboratory space in the United States and office space and automobiles in Europe, have between two and five -year terms, and typically contain penalizing, early-termination provisions. Lessor The Company leases instruments to customers under “reagent rental” agreements, under which the customer agrees to purchase consumable products over a stated term, typically five years or less, for a volume-based price that includes an embedded rental for the instruments. When collectibility is probable, that amount is recognized as income at lease commencement for sales-type leases and on a straight-line basis over the term for operating leases, which typically include a termination without cause or penalty provision given a short notice period. Consideration is allocated between lease and non-lease components based on stand-alone selling price in accordance with ASC 606, Revenue from Contracts with Customers. Net investment in sales-type leases are included within our condensed consolidated balance sheets as a component of other current assets and other non-current assets, which include the present value of lease payments not yet received and the present value of the residual asset, which is determined using the information available at commencement, including the lease term and estimated useful life and expected fair value of the instrument. |
Equity-Based Compensation | Equity-Based Compensation The Company may award stock options, restricted stock units (“RSUs”), 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. • Volatility: The expected volatility is based on the historical volatility of the Company's stock price over the most recent period commensurate with the expected term of the stock option award. • Expected term: The estimated expected term for employee awards is based on the calculation published by the SEC in SAB110 for use when there is not a sufficient history of employee exercise patterns. For consultant awards, the estimated expected term is the same as the life of the award. • Risk-free interest rate: The risk-free interest rate is based on published U.S. Treasury rates for a term commensurate with the expected term. • Dividend yield: The dividend yield is estimated as zero as the Company has not paid dividends in the past and does not have any plans to pay any dividends in the foreseeable future. The Company records the fair value of RSUs or stock grants based on published closing market price on the day before the grant date. The Company accounts for forfeitures as they occur rather than on an estimated basis. |
Income Taxes and Deferred Tax Assets | 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 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 be more likely than not certain of sustaining the position, 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 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). 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 statement 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. Potentially dilutive common shares consist of shares issuable from stock options and unvested RSUs. Potentially dilutive common shares would also include common shares that would be outstanding if notes convertible at the balance sheet date were converted. Diluted earnings are not presented when the effect of adding such additional common shares is antidilutive. Earnings per share are restated when certain transactions or events, including rights offerings determined to have bonus elements have occurred. |
Standards that were adopted and standards not yet adopted | Standards that were adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 “Leases,” which together with subsequent amendments is included in ASC 842. ASC 842 requires a lessee to recognize a liability to make lease payments and an asset with respect to its right to use the underlying asset for the lease term. ASC 842 also addresses accounting and reporting by lessors, which is not significantly different from current accounting and reporting, and further provides for qualitative and quantitative disclosures. We adopted ASC 842 on January 1, 2019 using the optional transition method allowed by ASU 2018-11. This optional transition method allowed the Company to apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. For contracts where we are the lessee, we recorded lease liabilities and right of use assets for contracts in effect on January 1, 2019 based on the facts and circumstances as of that date. The Company elected not to reassess whether any expired or existing contracts are or contain leases, not to reassess the lease classification for any expired or existing leases, not to reassess initial direct costs for any existing leases, and not to separate the lease components from the non-lease components for all classes of underlying assets. We recognized right of use assets and lessee lease liabilities of $0.6 million with respect to operating leases where we are the lessee. We also implemented internal controls and key system functionality to enable the preparation of financial information on adoption. The adoption of ASC 842 did not have a material effect on our consolidated financial position, results of operations or cash flows. 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. The Company adopted ASU 2018-07 on January 1, 2019 , which did not have an effect on our consolidated financial statements as all share-based awards granted to nonemployees are fully vested. 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. The Company adopted ASU 2018-02 on January 1, 2019 , with no impact to our consolidated financial statements as no amounts were reclassified from accumulated other comprehensive income to retained earnings for tax effects resulting from the Tax Act. 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. 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. The Company adopted ASU 2017-08 on January 1, 2019 , with no impact to the consolidated financial statements as we do not carry callable securities held at a premium. Standards not yet adopted In August 2018, the 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 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326); Measurement of Credit Losses on Financial Instruments. ASU 2019-04 and ASU 2018-19 were issued which amended the standard. 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 will have a significant impact on our consolidated financial statements. |
Organization and Nature of Bu_3
Organization and Nature of Business; Basis of Presentation; Principles of Consolidation; Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Product Warranty Reserve Activity | Warranty reserve activity for the three months ended March 31, 2019 and 2018 is as follows (in thousands): Three Months Ended March 31, March 31, 2019 2018 Beginning balance $ 215 $ 192 Provisions 70 121 Warranty incurred (79 ) (137 ) Ending balance $ 206 $ 176 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurement | The following tables represent the financial instruments measured at fair value on a recurring basis in the financial statements of the Company and the valuation approach applied to each class of financial instruments at March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Quoted Prices Significant Significant Total Assets: Cash and cash equivalents: Money market funds $ 47,788 $ — $ — $ 47,788 Commercial paper — 5,182 — 5,182 Corporate notes and bonds — 1,227 — 1,227 Total cash and cash equivalents $ 47,788 $ 6,409 $ — $ 54,197 Investments: Certificates of deposit — 8,809 — 8,809 U.S. Treasury securities 25,387 — — 25,387 U.S. Agency securities — 6,501 — 6,501 Commercial paper — 8,463 — 8,463 Asset-backed securities — 4,391 — 4,391 Corporate notes and bonds — 21,999 — 21,999 Total investments 25,387 50,163 — 75,550 Total assets measured at fair value $ 73,175 $ 56,572 $ — $ 129,747 December 31, 2018 Quoted Prices Significant Significant Total Assets: Cash and cash equivalents: Money market funds $ 38,444 $ — $ — $ 38,444 Commercial paper — 1,493 — 1,493 Total cash and cash equivalents 38,444 1,493 — 39,937 Investments: Certificates of deposit — 10,787 — 10,787 U.S. Treasury securities 22,120 — — 22,120 U.S. Agency securities — 7,980 — 7,980 Commercial paper — 17,025 — 17,025 Asset-backed securities — 11,998 — 11,998 Corporate notes and bonds — 30,308 — 30,308 Total investments 22,120 78,098 — 100,218 Total assets measured at fair value $ 60,564 $ 79,591 $ — $ 140,155 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule of Customer Concentration | Customers who represented 10% or more of the Company’s total revenue for the three months ended March 31, 2019 and 2018 were as follows: Three Months Ended March 31, 2019 2018 Company A 19% 14% Company B * 26% Company C * 12% Company D * 11% * Less than 10% for the period indicated |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale Investments | The following tables summarize the Company’s available-for-sale investments at March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 8,817 $ 9 $ (17 ) $ 8,809 U.S. Treasury securities 25,401 8 (22 ) 25,387 U.S. Agency securities 6,521 — (20 ) 6,501 Commercial paper 8,463 — — 8,463 Asset-backed securities 4,390 1 — 4,391 Corporate notes and bonds 22,008 4 (13 ) 21,999 Total $ 75,600 $ 22 $ (72 ) $ 75,550 December 31, 2018 Amortized Gross Gross Fair Value Certificates of deposit $ 10,787 $ — $ — $ 10,787 U.S. Treasury securities 22,185 1 (66 ) 22,120 U.S. Agency securities 8,024 1 (45 ) 7,980 Commercial paper 17,025 — — 17,025 Asset-backed securities 12,007 — (9 ) 11,998 Corporate notes and bonds 30,361 — (53 ) 30,308 Total $ 100,389 $ 2 $ (173 ) $ 100,218 |
Schedule of Available-For-Sale Investment Maturities | The following table summarizes the maturities of the Company’s available-for-sale securities at March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Amortized Fair Value Amortized Fair Value Due in less than 1 year $ 68,462 $ 68,394 $ 83,030 $ 82,893 Due in 1-3 years 7,138 7,156 17,359 17,325 Total $ 75,600 $ 75,550 $ 100,389 $ 100,218 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following at March 31, 2019 and December 31, 2018 (in thousands): March 31, December 31, 2019 2018 Raw materials $ 5,080 $ 4,064 Work in process 735 495 Finished goods 2,784 3,187 Inventory $ 8,599 $ 7,746 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following at March 31, 2019 and December 31, 2018 (in thousands): March 31, December 31, 2019 2018 Computer equipment $ 2,733 $ 2,700 Technical equipment 3,949 3,868 Facilities 4,031 4,037 Instruments 5,663 5,318 Capital projects in progress 38 91 Total property and equipment $ 16,414 $ 16,014 Accumulated depreciation (9,172 ) (8,711 ) Property and equipment, net $ 7,242 $ 7,303 |
Deferred Revenue, Income and _2
Deferred Revenue, Income and Remaining Performance Obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue and Income Summary | A summary of the balances as of March 31, 2019 and December 31, 2018 follows (in thousands): March 31, December 31, 2019 2018 Products and services not yet delivered $ 291 $ 217 |
Convertible Notes (Tables)
Convertible Notes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Notes | Convertible notes consisted of the following as of March 31, 2019 and December 31, 2018 follows (in thousands): March 31, December 31, 2019 2018 Outstanding principal $ 171,500 $ 171,500 Unamortized debt discount (46,182 ) (48,430 ) Unamortized debt issuance (2,857 ) (2,996 ) Net carrying amount of the liability component 122,461 120,074 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 for the three months ended March 31, 2019 and 2018 (in thousands): 2019 2018 Shares issuable upon the release of restricted stock awards 30 16 Shares issuable upon exercise of stock options 9,160 8,084 9,190 8,100 |
Employee Equity-Based Compens_2
Employee Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity | The following table summarizes option activity under all plans during the three months ended March 31, 2019 : Number of Shares Weighted Average Exercise Price per Share Options Outstanding January 1, 2019 8,090,636 $ 12.22 Granted 1,468,949 11.66 Forfeited (169,423 ) 21.05 Exercised (208,044 ) 17.68 Expired (22,576 ) 23.27 Options Outstanding March 31, 2019 9,159,542 $ 11.81 |
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 March 31, March 31, 2019 2018 Expected term (in years) 6.17 6.11 Volatility 62 % 68 % Expected dividends — — Risk free interest rates 2.59 % 2.69 % Weighted average fair value $ 6.90 $ 16.25 |
Stock Option Supplemental Information | The following table shows summary information for outstanding options and options that are exercisable (vested) as of March 31, 2019 : Options Outstanding Options Exercisable Number of options 9,159,542 5,987,089 Weighted average remaining contractual term (in years) 6.08 4.63 Weighted average exercise price $ 11.81 $ 8.75 Weighted average fair value $ 7.91 $ 5.95 Aggregate intrinsic value (in thousands) $ 92,541 $ 76,978 |
Restricted Stock Unit (RSU) Activity | The following table summarizes RSU and restricted stock award activity during the three months ended March 31, 2019 : Number of Shares Weighted Average Grant Date Fair Value per Share Outstanding January 1, 2019 76,000 $ 18.70 Granted 11,000 20.32 Forfeited (50,000 ) 20.80 Vested/released (7,000 ) 19.47 Outstanding March 31, 2019 30,000 15.62 |
Equity-Based Compensation Expenses | Equity-based compensation is summarized below (in thousands): Three Months Ended March 31, March 31, 2019 2018 Cost of sales $ 55 $ 46 Research and development 1,527 1,612 Sales, general and administrative 1,815 3,944 Equity-based compensation expense $ 3,397 $ 5,602 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Assets And Liabilities | The following presents supplemental information related to our leases in which we are the lessee for the three months ended March 31, 2019 (in thousands except lease term and discount rate): Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 82 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — Lease Cost Operating leases $ 82 Short-term leases (including leases with a term of one month or less) $ 295 Weighted average remaining lease term (years) Operating leases 2.3 years Weighted average discount rate (%) Operating leases 6.9 % |
Lease Costs | The following presents supplemental information related to our leases in which we are the lessee for the three months ended March 31, 2019 (in thousands except lease term and discount rate): Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 82 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — Lease Cost Operating leases $ 82 Short-term leases (including leases with a term of one month or less) $ 295 Weighted average remaining lease term (years) Operating leases 2.3 years Weighted average discount rate (%) Operating leases 6.9 % |
Maturities of Lease Liabilities | The following presents maturities of operating lease liabilities in which we are the lessee as of March 31, 2019 (in thousands): Remainder of 2019 $ 195 2020 174 2021 116 2022 44 2023 — Thereafter — Total lease payments 529 Less imputed interest (42 ) Total $ 487 |
Sales-type Lease Receivable Maturity | The following presents maturities of lease receivables under sales-type leases which we are the lessor as of March 31, 2019 (in thousands): Remainder of 2019 $ 135 2020 139 2021 91 2022 73 2023 36 Thereafter 7 Total undiscounted cash flows 481 Less imputed interest (5 ) Present value of lease payments $ 476 |
Industry, Geographic and Reve_2
Industry, Geographic and Revenue Disaggregation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Disaggregation of Revenue | The following presents total net sales by geographic territory for the three months ended March 31, 2019 and 2018 (in thousands): 2019 2018 Domestic $ 1,169 $ 595 Foreign 581 206 Net sales $ 1,750 $ 801 The following presents total net sales by line of business for the three months ended March 31, 2019 and 2018 (in thousands): 2019 2018 Accelerate Pheno™ revenue $ 1,705 $ 770 Other revenue 45 31 Net sales $ 1,750 $ 801 The following presents total net sales by products and services for the three months ended March 31, 2019 and 2018 (in thousands): 2019 2018 Products $ 1,693 $ 796 Services 57 5 Net sales $ 1,750 $ 801 |
Long-lived Assets by Geographic Territory | The following presents long-lived assets (excluding intangible assets) by geographic territory (in thousands): March 31, December 31, 2019 2018 Domestic $ 6,315 $ 6,309 Foreign 927 994 Property and equipment, net $ 7,242 $ 7,303 |
Organization and Nature of Bu_4
Organization and Nature of Business; Basis of Presentation; Principles of Consolidation; Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Instrument warranty term | 1 year | ||
Kits and accessories warranty term | 60 days | ||
Term of lease | 5 years | ||
Expected dividends | 0.00% | 0.00% | 0.00% |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of assets | 1 year | ||
Payment terms | 30 days | ||
Lease term | 2 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of assets | 7 years | ||
Payment terms | 150 days | ||
Lease term | 5 years | ||
Instruments | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of assets | 5 years |
Organization and Nature of Bu_5
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 215 | $ 192 |
Provisions | 70 | 121 |
Warranty incurred | (79) | (137) |
Ending balance | $ 206 | $ 176 |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right of use assets | $ 487 | |
Lessee lease liabilities | $ 487 | $ 600 |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right of use assets | $ 600 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Fair Value Measurement (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 75,550 | $ 100,218 |
Fair value on a recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 54,197 | 39,937 |
Fair Value | 75,550 | 100,218 |
Total assets measured at fair value | 129,747 | 140,155 |
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 | 47,788 | 38,444 |
Fair Value | 25,387 | 22,120 |
Total assets measured at fair value | 73,175 | 60,564 |
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 | 6,409 | 1,493 |
Fair Value | 50,163 | 78,098 |
Total assets measured at fair value | 56,572 | 79,591 |
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 | 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 | 8,809 | 10,787 |
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 | 8,809 | 10,787 |
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 | 25,387 | 22,120 |
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 | 25,387 | 22,120 |
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 | 6,501 | 7,980 |
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 | 6,501 | 7,980 |
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 | 8,463 | 17,025 |
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 | 8,463 | 17,025 |
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 | 4,391 | 11,998 |
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 | 4,391 | 11,998 |
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 | 21,999 | 30,308 |
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 | 21,999 | 30,308 |
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 | 47,788 | 38,444 |
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 | 47,788 | 38,444 |
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 | 5,182 | 1,493 |
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 | 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 | 5,182 | 1,493 |
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 | $ 0 |
Fair value on a recurring basis | Corporate Notes and Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,227 | |
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] | ||
Cash and cash equivalents | 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] | ||
Cash and cash equivalents | 1,227 | |
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] | ||
Cash and cash equivalents | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | Apr. 04, 2018 | Mar. 27, 2018 | Mar. 31, 2019 | Dec. 31, 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 | $ 141,500,000 | $ 121,400,000 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Net accounts receivable | Customer concentration | Company A | |||
Concentration Risk [Line Items] | |||
Risk concentration | 17.00% | 10.00% | |
Total revenue | Customer concentration | Company A | |||
Concentration Risk [Line Items] | |||
Risk concentration | 19.00% | 14.00% | |
Total revenue | Customer concentration | Company B | |||
Concentration Risk [Line Items] | |||
Risk concentration | 26.00% | ||
Total revenue | Customer concentration | Company C | |||
Concentration Risk [Line Items] | |||
Risk concentration | 12.00% | ||
Total revenue | Customer concentration | Company D | |||
Concentration Risk [Line Items] | |||
Risk concentration | 11.00% | ||
Financial institution A | Cash and cash equivalents | Concentration of credit risk | |||
Concentration Risk [Line Items] | |||
Risk concentration | 47.00% | 46.00% | |
Financial institution B | Cash and cash equivalents | Concentration of credit risk | |||
Concentration Risk [Line Items] | |||
Risk concentration | 46.00% | 43.00% |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investment [Line Items] | ||
Total | $ 75,600 | $ 100,389 |
Gross Unrealized Gains | 22 | 2 |
Gross Unrealized Losses | (72) | (173) |
Fair Value | 75,550 | 100,218 |
Certificates of deposit | ||
Investment [Line Items] | ||
Total | 8,817 | 10,787 |
Gross Unrealized Gains | 9 | 0 |
Gross Unrealized Losses | (17) | 0 |
Fair Value | 8,809 | 10,787 |
U.S. Treasury securities | ||
Investment [Line Items] | ||
Total | 25,401 | 22,185 |
Gross Unrealized Gains | 8 | 1 |
Gross Unrealized Losses | (22) | (66) |
Fair Value | 25,387 | 22,120 |
U.S. Agency securities | ||
Investment [Line Items] | ||
Total | 6,521 | 8,024 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (20) | (45) |
Fair Value | 6,501 | 7,980 |
Commercial paper | ||
Investment [Line Items] | ||
Total | 8,463 | 17,025 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 8,463 | 17,025 |
Asset-backed securities | ||
Investment [Line Items] | ||
Total | 4,390 | 12,007 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | (9) |
Fair Value | 4,391 | 11,998 |
Corporate notes and bonds | ||
Investment [Line Items] | ||
Total | 22,008 | 30,361 |
Gross Unrealized Gains | 4 | 0 |
Gross Unrealized Losses | (13) | (53) |
Fair Value | $ 21,999 | $ 30,308 |
Investments - Schedule of Ava_2
Investments - Schedule of Available-for-Sale Investment Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in less than 1 year | $ 68,462 | $ 83,030 |
Due in 1-3 years | 7,138 | 17,359 |
Total | 75,600 | 100,389 |
Fair Value | ||
Due in less than 1 year | 68,394 | 82,893 |
Due in 1-3 years | 7,156 | 17,325 |
Total | $ 75,550 | $ 100,218 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales of marketable securities | $ 9,000,000 | $ 3,000,000 |
Gross realized gains or losses from sales of marketable securities | $ 0 | $ 0 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 5,080 | $ 4,064 |
Work in process | 735 | 495 |
Finished goods | 2,784 | 3,187 |
Inventory | $ 8,599 | $ 7,746 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 16,414 | $ 16,014 | |
Accumulated depreciation | (9,172) | (8,711) | |
Property and equipment, net | 7,242 | 7,303 | |
Depreciation | 600 | $ 500 | |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 2,733 | 2,700 | |
Technical equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 3,949 | 3,868 | |
Facilities | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 4,031 | 4,037 | |
Instruments | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 5,663 | 5,318 | |
Capital projects in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 38 | $ 91 | |
Assets under operating leases | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | (100) | ||
Property and equipment, net | $ 700 |
License Agreements and Grants -
License Agreements and Grants - National Institute of Health Grant (Details) - National Institute of Health Grant - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 50 Months Ended | |
Feb. 28, 2015 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | |
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 | $ 0.1 | $ 0.1 | |
Cumulative amount awarded | $ 1.3 |
License Agreements and Grants_2
License Agreements and Grants - Arizona Commerce Authority (Details) | Aug. 31, 2012USD ($) |
Research and Development [Abstract] | |
Arizona Commerce Authority grant | $ 1,000,000 |
Deferred Revenue, Income and _3
Deferred Revenue, Income and Remaining Performance Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Deferred revenue and income | $ 291 | $ 217 | |
Revenues recognized included in contract liabilities balances | 37 | $ 37 | |
Revenue expected to be recognized from remaining performance obligations | $ 1,900 | ||
Contact period | These service contracts typically provide for four-year terms and revenue is recognized on a straight-line basis. The balance also includes product shipments for reagent rental, sales-type lease agreements. The agreements have between two and four year terms and revenue is recognized as product is shipped, typically in a straight-line pattern. | ||
Products and services not yet delivered | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue and income | $ 291 | $ 217 |
Convertible Notes - Narrative (
Convertible Notes - Narrative (Details) | Apr. 04, 2018USD ($)dayshares | Mar. 27, 2018USD ($)$ / shares | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 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 | ||||
Outstanding principal | $ 171,500,000 | $ 171,500,000 | |||
Unamortized debt issuance | (2,857,000) | $ (2,996,000) | |||
Stock price conversion threshold, percentage | 130.00% | ||||
Consecutive trading days | day | 20 | ||||
Threshold trading days | day | 30 | ||||
Trading price threshold, percentage | 98.00% | ||||
Repurchase principal balance, percent | 100.00% | ||||
Interest expense | 1,100,000 | $ 100,000 | |||
Amortization of debt issuance costs | 100,000 | 0 | |||
Amortization of the debt discount | $ 2,200,000 | $ 100,000 | |||
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 | ||||
Outstanding principal | 116,600,000 | ||||
Equity component | (54,900,000) | ||||
Unamortized debt issuance | $ (5,000,000) | ||||
Contractual term | 5 years | ||||
Effective interest rate | 11.52% | ||||
Unsecured obligations | 2.50% Convertible notes due 2023 | Long-term debt | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance | $ (3,400,000) | ||||
Unsecured obligations | 2.50% Convertible notes due 2023 | Contributed Capital | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance | $ (1,600,000) |
Convertible Notes - Schedule of
Convertible Notes - Schedule of Convertible Notes (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Outstanding principal | $ 171,500 | $ 171,500 |
Unamortized debt discount | (46,182) | (48,430) |
Unamortized debt issuance | (2,857) | (2,996) |
Net carrying amount of the liability component | $ 122,461 | $ 120,074 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Potentially Issuable Common Shares not Included in Computation of Diluted Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common stock instruments outstanding (shares) | 9,190 | 8,100 |
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) | 30 | 16 |
Shares issuable upon exercise of stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common stock instruments outstanding (shares) | 9,160 | 8,084 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) | Apr. 04, 2018USD ($)shares | Mar. 27, 2018USD ($) | Mar. 31, 2019shares |
Debt Instrument [Line Items] | |||
Conversion ratio | 0.0323428 | ||
Aggregate number of 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 | |
Conversion multiple | $ | $ 1,000 | ||
Shares issued | 0 | ||
Number of shares issuable upon conversion (shares) | 5,500,000 |
Employee Equity-Based Compens_3
Employee Equity-Based Compensation - Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of Shares | |
Outstanding, beginning balance (shares) | shares | 8,090,636 |
Granted (shares) | shares | 1,468,949 |
Forfeited (shares) | shares | (169,423) |
Exercised (shares) | shares | (208,044) |
Expired (shares) | shares | (22,576) |
Outstanding, ending balance (shares) | shares | 9,159,542 |
Weighted Average Exercise Price per Share | |
Outstanding, beginning balance (dollars per share) | $ / shares | $ 12.22 |
Granted (dollars per share) | $ / shares | 11.66 |
Forfeited (dollars per share) | $ / shares | 21.05 |
Exercised (dollars per share) | $ / shares | 17.68 |
Expired (dollars per share) | $ / shares | 23.27 |
Outstanding, ending balance (dollars per share) | $ / shares | $ 11.81 |
Employee Equity-Based Compens_4
Employee Equity-Based Compensation - Inputs to Calculate Estimated Fair Value of Options Awarded (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected term (in years) | 6 years 2 months 1 day | 6 years 1 month 10 days | |
Volatility | 62.00% | 68.00% | |
Expected dividends | 0.00% | 0.00% | 0.00% |
Risk free interest rates | 2.59% | 2.69% | |
Weighted average fair value (dollars per share) | $ 6.90 | $ 16.25 |
Employee Equity-Based Compens_5
Employee Equity-Based Compensation - Stock Option Supplemental Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Options Outstanding | ||
Number of options (shares) | 9,159,542 | 8,090,636 |
Weighted average remaining contractual term (in years) | 6 years 29 days | |
Weighted average exercise price (dollars per share) | $ 11.81 | $ 12.22 |
Weighted average fair value (dollars per share) | $ 7.91 | |
Aggregate intrinsic value (in thousands) | $ 92,541 | |
Options Exercisable | ||
Number of options (shares) | 5,987,089 | |
Weighted average remaining contractual term (in years) | 4 years 7 months 17 days | |
Weighted average exercise price (dollars per share) | $ 8.75 | |
Weighted average fair value (dollars per share) | $ 5.95 | |
Aggregate intrinsic value (in thousands) | $ 76,978 |
Employee Equity-Based Compens_6
Employee Equity-Based Compensation - Restricted Stock Activity (Details) - RSUs and RSAs | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of Shares | |
Beginning balance (shares) | shares | 76,000 |
Granted (shares) | shares | 11,000 |
Forfeited (shares) | shares | (50,000) |
Vested/Released (shares) | shares | (7,000) |
Ending balance (shares) | shares | 30,000 |
Weighted Average Grant Date Fair Value per Share | |
Beginning balance (dollars per share) | $ / shares | $ 18.70 |
Granted (dollars per share) | $ / shares | 20.32 |
Forfeited (dollars per share) | $ / shares | 20.80 |
Vested/Released (dollars per share) | $ / shares | 19.47 |
Ending balance (dollars per share) | $ / shares | $ 15.62 |
Employee Equity-Based Compens_7
Employee Equity-Based Compensation - Equity-Based Compensation Expense and Tax Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Equity-based compensation expense | $ 3,397 | $ 5,602 |
Cost of sales | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Equity-based compensation expense | 55 | 46 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Equity-based compensation expense | 1,527 | 1,612 |
Sales, general and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Equity-based compensation expense | $ 1,815 | $ 3,944 |
Employee Equity-Based Compens_8
Employee Equity-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Equity-based compensation expense | $ 3,397 | $ 5,602 | |
Unrecognized equity-based compensation cost | 22,500 | ||
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 | 400 | ||
Performance-based stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Equity-based compensation expense | $ 100 | ||
Contractual life | 10 years | ||
Granted (shares) | 225,000 | ||
Performance-based stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Vesting period | 1 year | ||
Performance-based stock options | Minimum | Granted in 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Vesting period | 5 years | ||
Performance-based stock options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Vesting period | 2 years | ||
Performance-based stock options | Maximum | Granted in 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Vesting period | 6 years | ||
Property and equipment | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Equity-based compensation expense | $ 100 | $ 200 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 221 | $ 184 |
Pre-tax loss | $ 21,500 | $ 20,628 |
Leases - Assets and Liabilities
Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 82 | |
Right-of-use assets obtained in exchange for lease obligations | ||
Operating leases | 0 | |
Lease Cost | ||
Operating leases | 82 | |
Short-term leases (including leases with a term of one month or less) | $ 295 | |
Weighted average remaining lease term (years) | 2 years 3 months 18 days | |
Weighted average discount rate (%) | 6.90% | |
Rent expense | $ 342 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Remainder of 2019 | $ 195 | |
2020 | 174 | |
2021 | 116 | |
2022 | 44 | |
2023 | 0 | |
Thereafter | 0 | |
Total lease payments | 529 | |
Less imputed interest | (42) | |
Total | $ 487 | $ 600 |
Leases - Sales-type Lease Recei
Leases - Sales-type Lease Receivable Maturity (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Net Investment in Lease | $ 500 |
Remainder of 2019 | 135 |
2020 | 139 |
2021 | 91 |
2022 | 73 |
2023 | 36 |
Thereafter | 7 |
Total undiscounted cash flows | 481 |
Less imputed interest | (5) |
Present value of lease payments | $ 476 |
Industry, Geographic and Reve_3
Industry, Geographic and Revenue Disaggregation - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 1 | ||
Segment Reporting Information [Line Items] | |||
Trade accounts receivable | $ 1,950 | $ 1,860 | |
Lease Income | $ 200 | $ 0 | |
Geographic concentration | Foreign | Total revenue | |||
Segment Reporting Information [Line Items] | |||
Risk concentration | 33.00% | 26.00% | |
Geographic concentration | Foreign | Net accounts receivable | |||
Segment Reporting Information [Line Items] | |||
Trade accounts receivable | $ 1,200 | $ 900 |
Industry, Geographic and Reve_4
Industry, Geographic and Revenue Disaggregation - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,750 | $ 801 |
Accelerate Pheno™ revenue | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,705 | 770 |
Other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 45 | 31 |
Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,693 | 796 |
Services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 57 | 5 |
Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,169 | 595 |
Foreign | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 581 | $ 206 |
Industry, Geographic and Reve_5
Industry, Geographic and Revenue Disaggregation - Long-lived Assets by Geographic Territory (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Long-lived assets (excluding intangible assets) | $ 7,242 | $ 7,303 |
Property and equipment | Geographic concentration | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets (excluding intangible assets) | 7,242 | 7,303 |
Property and equipment | Geographic concentration | Domestic | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets (excluding intangible assets) | 6,315 | 6,309 |
Property and equipment | Geographic concentration | Foreign | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets (excluding intangible assets) | $ 927 | $ 994 |
Related Party Transaction (Deta
Related Party Transaction (Details) | Mar. 31, 2019USD ($) |
Director | Note holder | |
Related Party Transaction [Line Items] | |
Aggregate principal amount | $ 30,000,000 |
Uncategorized Items - axdx-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (49,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (49,000) |