(State or other jurisdiction | (I.R.S. Employer Identification No.) | ||
of incorporation or organization) | |||
(Address of principal executive offices) | (Zip Code) | ||
Title of each class | Trading Symbol | Name of each exchange on which registered |
value per share | (The Nasdaq Capital Market) | |
☑ | ||
Accelerated filer | ☐ | |
Non-accelerated file | ☐ | |
Smaller reporting company | ||
Emerging growth company | ||
June 30, | December 31, | |||||
2019 | 2018 | |||||
Unaudited | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | $ | ||||
Investments | ||||||
Trade accounts receivable | ||||||
Inventory | ||||||
Prepaid expenses | ||||||
Other current assets | ||||||
Total current assets | ||||||
Property and equipment, net | ||||||
Right of use assets | — | |||||
Other non-current assets | ||||||
Total assets | $ | $ | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | $ | ||||
Accrued liabilities | ||||||
Accrued interest | ||||||
Deferred revenue and income | ||||||
Current operating lease liability | — | |||||
Total current liabilities | ||||||
Non-current operating lease liability | — | |||||
Other non-current liabilities | ||||||
Convertible notes | ||||||
Total liabilities | $ | $ | ||||
Commitments and contingencies | ||||||
Stockholders’ equity: | ||||||
Preferred shares, $0.001 par value; | ||||||
5,000,000 preferred shares authorized and none outstanding as of June 30, 2019 and December 31, 2018 | ||||||
Common stock, $0.001 par value; | ||||||
85,000,000 common shares authorized with 54,512,492 shares issued and outstanding on June 30, 2019 and 75,000,000 common shares authorized with 54,231,876 shares issued and outstanding on December 31, 2018 | ||||||
Contributed capital | ||||||
Treasury stock | ( | ) | ( | ) | ||
Accumulated deficit | ( | ) | ( | ) | ||
Accumulated other comprehensive income (loss) | ( | ) | ||||
Total stockholders’ equity | ||||||
Total liabilities and stockholders’ equity | $ | $ | ||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Net sales | $ | $ | $ | $ | |||||||||
Cost of sales | |||||||||||||
Gross profit | |||||||||||||
Costs and expenses: | |||||||||||||
Research and development | |||||||||||||
Sales, general and administrative | |||||||||||||
Total costs and expenses | |||||||||||||
Loss from operations | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Other income (expense): | |||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Foreign currency exchange gain (loss) | ( | ) | ( | ) | ( | ) | |||||||
Interest income | |||||||||||||
Other expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Total other expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Net loss before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Provision for income taxes | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |
Basic and diluted net loss per share | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |
Weighted average shares outstanding | |||||||||||||
Other comprehensive loss: | |||||||||||||
Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |
Net unrealized gain (loss) on available-for-sale investments | ( | ) | ( | ) | |||||||||
Foreign currency translation adjustment | ( | ) | ( | ) | ( | ) | |||||||
Comprehensive loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |
Six Months Ended | ||||||
June 30, | June 30, | |||||
2019 | 2018 | |||||
Cash flows from operating activities: | ||||||
Net loss | $ | ( | ) | $ | ( | ) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
Depreciation and amortization | ||||||
Amortization of investment discount | ( | ) | ( | ) | ||
Equity-based compensation | ||||||
Amortization of debt discount and issuance costs | ||||||
Loss on disposal of property and equipment | ||||||
(Increase) decrease in assets: | ||||||
Accounts receivable | ( | ) | ||||
Inventory | ( | ) | ( | ) | ||
Prepaid expense and other | ( | ) | ( | ) | ||
Increase (decrease) in liabilities: | ||||||
Accounts payable | ||||||
Accrued liabilities, and other | ( | ) | ||||
Accrued interest | ||||||
Deferred revenue and income | ( | ) | ||||
Deferred compensation | ( | ) | ||||
Net cash used in operating activities | ( | ) | ( | ) | ||
Cash flows from investing activities: | ||||||
Purchases of equipment | ( | ) | ( | ) | ||
Purchase of marketable securities | ( | ) | ( | ) | ||
Proceeds from sales of marketable securities | ||||||
Maturities of marketable securities | ||||||
Net cash provided by (used in) investing activities | ( | ) | ||||
Cash flows from financing activities: | ||||||
Proceeds from issuance of common stock | ||||||
Proceeds from exercise of options | ||||||
Proceeds from issuance of convertible note | ||||||
Prepayment of forward stock repurchase transaction | ( | ) | ||||
Payment of debt issuance costs | ( | ) | ||||
Net cash provided by financing activities | ||||||
Effect of exchange rate on cash | ( | ) | ( | ) | ||
Increase in cash and cash equivalents | ||||||
Cash and cash equivalents, beginning of period | ||||||
Cash and cash equivalents, end of period | $ | $ | ||||
Six Months Ended | ||||||
June 30, | June 30, | |||||
2019 | 2018 | |||||
Non-cash investing activities: | ||||||
Transfer of instruments from inventory to property and equipment | $ | $ | ||||
Supplemental cash flow information: | ||||||
Interest paid | $ | $ | ||||
Income taxes paid | $ | $ | ||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Common stock shares outstanding | |||||||||||||
Beginning | |||||||||||||
Exercise of options | |||||||||||||
Issuance of common stock under employee purchase plan | |||||||||||||
Repurchase of common stock under prepaid forward contract | — | — | — | ( | ) | ||||||||
Ending | |||||||||||||
Common stock | |||||||||||||
Beginning | $ | $ | $ | $ | |||||||||
Exercise of Options | — | — | |||||||||||
Repurchase of common stock under prepaid forward contract | — | — | — | ( | ) | ||||||||
Ending | $ | $ | $ | $ | |||||||||
Contributed capital | |||||||||||||
Beginning | $ | $ | $ | $ | |||||||||
Exercise of options | |||||||||||||
Issuance of common stock under employee purchase plan | |||||||||||||
Issuance of convertible note | — | — | |||||||||||
Equity based compensation | |||||||||||||
Ending | $ | $ | $ | $ | |||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Accumulated deficit | |||||||||||||
Beginning | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |
Cumulative effect of accounting changes | — | — | — | ( | ) | ||||||||
Net loss | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Ending | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |
Treasury stock | |||||||||||||
Beginning | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | |||
Repurchase of common stock under prepaid forward contract | — | — | — | ( | ) | ||||||||
Ending | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |
Accumulated other comprehensive (loss) income | |||||||||||||
Beginning | $ | ( | ) | $ | $ | ( | ) | $ | |||||
Unrealized gain (loss) on available-for-sale securities | ( | ) | ( | ) | |||||||||
Foreign currency translation adjustment | ( | ) | ( | ) | ( | ) | |||||||
Ending | $ | $ | ( | ) | $ | $ | ( | ) | |||||
Total stockholders' equity | $ | $ | $ | $ | |||||||||
• | 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 |
• | 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). |
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||
Provisions | |||||||||||||
Warranty incurred | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Ending balance | $ | $ | $ | $ | |||||||||
• | 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 |
• | 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 |
Three Months Ended | Six Months Ended | ||||
June 30, | June 30, | ||||
2019 | 2018 | 2019 | 2018 | ||
Company A | * | * | * | ||
Company B | * | * | * | ||
Company C | * | * | * | ||
Company D | * | * | * | ||
Company E | * | * | * | ||
Company F | * | * | * | ||
June 30, 2019 | ||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||
Assets: | ||||||||||||
Cash and cash equivalents: | ||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||
Commercial paper | ||||||||||||
Asset-backed securities | ||||||||||||
Corporate notes and bonds | ||||||||||||
Total cash and cash equivalents | $ | $ | $ | $ | ||||||||
Investments: | ||||||||||||
Certificates of deposit | ||||||||||||
U.S. Treasury securities | ||||||||||||
U.S. Agency securities | ||||||||||||
Commercial paper | ||||||||||||
Corporate notes and bonds | ||||||||||||
Total investments | ||||||||||||
Total assets measured at fair value | $ | $ | $ | $ | ||||||||
December 31, 2018 | ||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||
Assets: | ||||||||||||
Cash and cash equivalents: | ||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||
Commercial paper | ||||||||||||
Total cash and cash equivalents | ||||||||||||
Investments: | ||||||||||||
Certificates of deposit | ||||||||||||
U.S. Treasury securities | ||||||||||||
U.S. Agency securities | ||||||||||||
Commercial paper | ||||||||||||
Asset-backed securities | ||||||||||||
Corporate notes and bonds | ||||||||||||
Total investments | ||||||||||||
Total assets measured at fair value | $ | $ | $ | $ | ||||||||
June 30, 2019 | ||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||
Certificates of deposit | $ | $ | $ | ( | ) | $ | ||||||
U.S. Treasury securities | ( | ) | ||||||||||
U.S. Agency securities | ( | ) | ||||||||||
Commercial paper | ||||||||||||
Corporate notes and bonds | ( | ) | ||||||||||
Total | $ | $ | $ | ( | ) | $ | ||||||
December 31, 2018 | ||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||
Certificates of deposit | $ | $ | $ | $ | ||||||||
U.S. Treasury securities | ( | ) | ||||||||||
U.S. Agency securities | ( | ) | ||||||||||
Commercial paper | ||||||||||||
Asset-backed securities | ( | ) | ||||||||||
Corporate notes and bonds | ( | ) | ||||||||||
Total | $ | $ | $ | ( | ) | $ | ||||||
June 30, 2019 | December 31, 2018 | |||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||
Due in less than 1 year | $ | $ | $ | $ | ||||||||
Due in 1-3 years | ||||||||||||
$ | $ | $ | $ | |||||||||
June 30, | December 31, | |||||
2019 | 2018 | |||||
Raw materials | $ | $ | ||||
Work in process | ||||||
Finished goods | ||||||
$ | $ | |||||
June 30, | December 31, | |||||
2019 | 2018 | |||||
Computer equipment | $ | $ | ||||
Technical equipment | ||||||
Facilities | ||||||
Instruments | ||||||
Capital projects in progress | ||||||
Total property and equipment | $ | $ | ||||
Accumulated depreciation | ( | ) | ( | ) | ||
Property and equipment, net | $ | $ | ||||
June 30, | December 31, | |||||
2019 | 2018 | |||||
Products and services not yet delivered | $ | $ | ||||
• | if the Company’s stock price exceeds |
• | during the 5 business day period after any 5 consecutive trading day period in which the Notes’ trading price is less than |
• | the occurrence of certain corporate events, such as a change of control, merger or liquidation. |
June 30, | December 31, | |||||
2019 | 2018 | |||||
Outstanding principal | $ | $ | ||||
Unamortized debt discount | ( | ) | ( | ) | ||
Unamortized debt issuance | ( | ) | ( | ) | ||
Net carrying amount of the liability component | ||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, | June 30, | June 30, | June 30, | ||||||
2019 | 2018 | 2019 | 2018 | ||||||
Shares issuable upon the release of restricted stock awards | |||||||||
Shares issuable upon exercise of stock options | |||||||||
Number of Shares | Weighted Average Exercise Price per Share | ||||
Options Outstanding January 1, 2019 | $ | ||||
Granted | |||||
Forfeited | ( | ) | |||
Exercised | ( | ) | |||
Expired | ( | ) | |||
Options Outstanding June 30, 2019 | $ | ||||
Three Months Ended | ||||||
June 30, | June 30, | |||||
2019 | 2018 | |||||
Expected term (in years) | ||||||
Volatility | % | % | ||||
Expected dividends | ||||||
Risk free interest rates | % | % | ||||
Weighted average fair value | $ | $ | ||||
Options Outstanding | Options Exercisable | |||||
Number of options | ||||||
Weighted average remaining contractual term (in years) | ||||||
Weighted average exercise price | $ | $ | ||||
Weighted average fair value | $ | $ | ||||
Aggregate intrinsic value (in thousands) | $ | $ | ||||
Number of Shares | Weighted Average Grant Date Fair Value per Share | ||||
Outstanding January 1, 2019 | $ | ||||
Granted | |||||
Forfeited | ( | ) | |||
Vested/released | ( | ) | |||
Outstanding June 30, 2019 | |||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Cost of sales | $ | $ | $ | $ | |||||||||
Research and development | |||||||||||||
Sales, general and administrative | |||||||||||||
$ | $ | $ | $ | ||||||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2019 | 2019 | ||||||
Cash paid for amounts included in lease liabilities | |||||||
Operating cash flows from operating leases | $ | $ | |||||
ROU assets obtained in exchange for lease obligations | |||||||
Operating leases | $ | $ | |||||
Lease Cost | |||||||
Operating leases | $ | $ | |||||
Short-term leases | $ | $ | |||||
Remainder of 2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total lease payments | |||
Less imputed interest | ( | ) | |
$ | |||
Remainder of 2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total undiscounted cash flows | |||
Less imputed interest | ( | ) | |
Present value of lease payments | $ | ||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Domestic | $ | $ | $ | $ | |||||||||
Foreign | |||||||||||||
$ | $ | $ | $ | ||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Accelerate Pheno™ revenue | $ | $ | $ | $ | |||||||||
Other revenue | |||||||||||||
$ | $ | $ | $ | ||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Products | $ | $ | $ | $ | |||||||||
Services | |||||||||||||
$ | $ | $ | $ | ||||||||||
June 30, | December 31, | |||||
2019 | 2018 | |||||
Domestic | $ | $ | ||||
Foreign | ||||||
$ | $ | |||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | ||||||||||||||||
Net sales | $ | 1,806 | $ | 1,692 | $ | 114 | 7 | % | $ | 3,557 | $ | 2,493 | $ | 1,064 | 43 | % | |||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | ||||||||||||||||
Cost of sales | $ | 907 | $ | 717 | $ | 190 | 26 | % | $ | 1,823 | $ | 1,210 | $ | 613 | 51 | % | |||||||
Gross profit | $ | 899 | $ | 975 | $ | (76 | ) | (8 | )% | $ | 1,734 | $ | 1,283 | $ | 451 | 35 | % | ||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | ||||||||||||||||
Research and development | $ | 6,149 | $ | 6,060 | $ | 89 | 1 | % | $ | 13,083 | $ | 12,842 | $ | 241 | 2 | % | |||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | ||||||||||||||||
Sales, general and administrative | $ | 12,837 | $ | 15,330 | $ | (2,493 | ) | (16 | )% | $ | 25,559 | $ | 29,682 | $ | (4,123 | ) | (14 | )% | |||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | ||||||||||||||||
Loss from operations | $ | (18,087 | ) | $ | (20,415 | ) | $ | 2,328 | (11 | )% | $ | (36,908 | ) | $ | (41,241 | ) | $ | 4,333 | (11 | )% | |||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | ||||||||||||||||
Total other expense, net | $ | (2,711 | ) | $ | (2,709 | ) | $ | (2 | ) | — | % | $ | (5,390 | ) | $ | (2,511 | ) | $ | (2,879 | ) | 115 | % | |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | ||||||||||||||||
Provision for income taxes | $ | (17 | ) | $ | (101 | ) | $ | 84 | (83 | )% | $ | (238 | ) | $ | (285 | ) | $ | 47 | (16 | )% | |||
Cash Flow Summary (in thousands) | ||||||||||
Six Months Ended | ||||||||||
June 30, | June 30, | Change | ||||||||
2019 | 2018 | |||||||||
Net cash used in operating activities | $ | (33,562 | ) | $ | (35,417 | ) | $ | 1,855 | ||
Net cash provided by (used in) investing activities | 50,170 | (50,702 | ) | 100,872 | ||||||
Net cash provided by financing activities | 4,620 | 124,472 | (119,852 | ) | ||||||
Exhibit No. | Description | Filing Information |
3.1 | Incorporated by reference to Appendix B to the Registrant’s Definitive Proxy Statement on Schedule 14A filed on November 13, 2012 | |
3.1.1 | Incorporated by reference to Exhibit A to the Registrant’s Definitive Information Statement on Schedule 14C filed on July 12, 2013 | |
3.1.2 | Incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on March 15, 2016 | |
3.1.3 | Incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on May 15, 2019 | |
3.2 | Incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed on August 8, 2019 | |
10.1* | Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on May 15, 2019 | |
31.1 | Filed herewith | |
31.2 | Filed herewith | |
32 | Furnished herewith | |
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | Filed herewith |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | Filed herewith |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | Filed herewith |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith |
104 | Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101) | Filed herewith |
August 8, 2019 | /s/ Lawrence Mehren |
Lawrence Mehren President and Chief Executive Officer | |
(Principal Executive Officer) | |
August 8, 2019 | /s/ Steve Reichling |
Steve Reichling Chief Financial Officer | |
(Principal Financial and Accounting Officer) | |
1. | I have reviewed this quarterly report on Form 10-Q of Accelerate Diagnostics, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
August 8, 2019 | /s/ Lawrence Mehren |
Lawrence Mehren President and Chief Executive Officer | |
(Principal Executive Officer) | |
1. | I have reviewed this quarterly report on Form 10-Q of Accelerate Diagnostics, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
August 8, 2019 | /s/ Steve Reichling |
Steve Reichling Chief Financial Officer | |
(Principal Financial and Accounting Officer) | |
August 8, 2019 | /s/ Lawrence Mehren |
Lawrence Mehren President and Chief Executive Officer | |
(Principal Executive Officer) | |
August 8, 2019 | /s/ Steve Reichling |
Steve Reichling Chief Financial Officer | |
(Principal Financial and Accounting Officer) | |
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares |
Jun. 30, 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) | 85,000,000 | 75,000,000 |
| Common Stock, shares issued (shares) | 54,512,492 | 54,231,876 |
| Common Stock, shares outstanding (shares) | 54,512,492 | 54,231,876 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Income Statement [Abstract] | ||||
| Net sales | $ 1,806 | $ 1,692 | $ 3,557 | $ 2,493 |
| Cost of sales | 907 | 717 | 1,823 | 1,210 |
| Gross profit | 899 | 975 | 1,734 | 1,283 |
| Costs and expenses: | ||||
| Research and development | 6,149 | 6,060 | 13,083 | 12,842 |
| Sales, general and administrative | 12,837 | 15,330 | 25,559 | 29,682 |
| Total costs and expenses | 18,986 | 21,390 | 38,642 | 42,524 |
| Loss from operations | (18,087) | (20,415) | (36,908) | (41,241) |
| Other income (expense): | ||||
| Interest expense | (3,528) | (3,205) | (6,987) | (3,363) |
| Foreign currency exchange gain (loss) | 6 | (253) | (53) | (198) |
| Interest income | 812 | 774 | 1,653 | 1,075 |
| Other expense, net | (1) | (25) | (3) | (25) |
| Total other expense, net | (2,711) | (2,709) | (5,390) | (2,511) |
| Net loss before income taxes | (20,798) | (23,124) | (42,298) | (43,752) |
| Provision for income taxes | (17) | (101) | (238) | (285) |
| Net loss | $ (20,815) | $ (23,225) | $ (42,536) | $ (44,037) |
| Basic and diluted net loss per share (usd per share) | $ (0.38) | $ (0.43) | $ (0.78) | $ (0.80) |
| Weighted average shares outstanding (shares) | 54,476 | 54,003 | 54,407 | 54,821 |
| Other comprehensive loss: | ||||
| Net loss | $ (20,815) | $ (23,225) | $ (42,536) | $ (44,037) |
| Net unrealized gain (loss) on available-for-sale investments | 98 | (2) | 219 | (55) |
| Foreign currency translation adjustment | 50 | (191) | (26) | (79) |
| Comprehensive loss | $ (20,667) | $ (23,418) | $ (42,343) | $ (44,171) |
Organization and Nature of Business; Basis of Presentation; Principles of Consolidation; Significant Accounting Policies |
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| 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:
the asset or liability;
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 June 30, 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 and six months ended June 30, 2019 and 2018 is as follows (in thousands):
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:
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 and six months ended June 30, 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 June 30, 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, whereby 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.
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.
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Recently Issued Accounting Pronouncements |
6 Months Ended |
|---|---|
Jun. 30, 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 Accounting Standards Update (“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. No cumulative-effect adjustment was recorded to the opening balance of retained earnings. 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 had no impact to 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 Cuts and Jobs Act (the “Tax Act”) that the FASB refers to as having been stranded in AOCI. The Company adopted ASU 2018-02 on January 1, 2019, which had 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, which had no impact to our 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, which was subsequently clarified and amended by ASU 2019-05, ASU 2019-04 and ASU 2018-19. 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.
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Concentration of Credit Risk |
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| Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Concentration of Credit Risk | NOTE 3. 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 June 30, 2019, two of the Company's financial institutions held 55% and 41% 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 19% of the Company’s net accounts receivable balance as of June 30, 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 and six months ended June 30, 2019 and 2018 were as follows:
* Less than 10% for the period indicated
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Fair Value of Financial Instruments |
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| Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value of Financial Instruments | NOTE 4. FAIR VALUE OF FINANCIAL INSTRUMENTS The following tables represent the financial instruments measured at fair value on a recurring basis in the financial statements of the Company and the valuation approach applied to each class of financial instruments at June 30, 2019 and December 31, 2018 (in thousands):
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 six months ended June 30, 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 June 30, 2019 and December 31, 2018, the fair value of the Notes was $150.1 million and $121.4 million, respectively. 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.
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Investments |
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| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments | NOTE 5. INVESTMENTS The following tables summarize the Company’s available-for-sale investments at June 30, 2019 and December 31, 2018 (in thousands):
The following table summarizes the maturities of the Company’s available-for-sale securities at June 30, 2019 and December 31, 2018 (in thousands):
Proceeds from sales of marketable securities (including principal paydowns) for the three months ended June 30, 2019 and 2018 were $4.4 million and $0.0 million, respectively, and for the six months ended June 30, 2019 and 2018 were $13.4 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 and six months ended June 30, 2019 and 2018. No material balances were reclassified out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2019 and 2018. The Company monitors investments for other-than-temporary impairment. It was determined that unrealized gains and losses as of June 30, 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.
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Inventory |
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| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory | NOTE 6. INVENTORY Inventories consisted of the following at June 30, 2019 and December 31, 2018 (in thousands):
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Property and Equipment |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment | NOTE 7. PROPERTY AND EQUIPMENT Property and equipment consisted of the following at June 30, 2019 and December 31, 2018 (in thousands):
Depreciation expense for each of the three months ended June 30, 2019 and 2018 was $0.5 million and for each of the six months ended June 30, 2019 and 2018 was $1.1 million. The underlying gross assets under operating leases where the Company is the lessor is $0.8 million at June 30, 2019. The underlying accumulated depreciation under operating leases were the Company is the lessor is $0.1 million at June 30, 2019.
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License Agreements and Grants |
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Jun. 30, 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 June 30, 2019 and 2018 was $0.1 million and $38,000, respectively, and for the six months ended June 30, 2019 and 2018 was $0.2 million and $0.1 million, respectively. Arizona Commerce Authority In August 2012, the Company entered into a Grant Agreement (the “Grant Agreement”) with the Arizona Commerce Authority, an agency of the State of Arizona (the “Authority”), pursuant to which the Authority provided certain state and county sponsored incentives for the Company relocating its corporate headquarters to, and expanding its business within, the State of Arizona. 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.
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Deferred Revenue, Income and Remaining Performance Obligations |
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| 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 June 30, 2019 and December 31, 2018 follows (in thousands):
We recognized $58,000 and $95,000 of revenues that were included in the beginning contract liabilities balances during the three and six months ended June 30, 2019, respectively. We recognized $14,000 and $35,000 of revenues that were included in the contract liabilities balances during the three and six months ended June 30, 2018, respectively. No material amount of revenue recognized during the period was from performance obligations satisfied in prior periods. Transaction Price Allocated to Remaining Performance Obligations As of June 30, 2019, $2.0 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 on a straight-line basis. 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.
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Convertible Notes |
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| 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:
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. The Notes at June 30, 2019 and December 31, 2018 consisted of the following (in thousands):
The Company recorded $1.1 million and $1.0 million for contractual coupon interest for the three months ended June 30, 2019 and 2018, respectively, and $2.1 million and $1.1 million for the six months ended June 30, 2019 and 2018, respectively. The Company also recorded $0.1 million for amortization of debt issuance for each of the three months ended June 30, 2019 and 2018, and $0.3 million and $0.1 million for the six months ended June 30, 2019 and 2018, respectively. Amortization of the debt discount for the three months ended June 30, 2019 and 2018 was $2.3 million and $2.0 million, respectively, and for the six months ended June 30, 2019 and 2018 was $4.6 million and $2.1 million, respectively. As of June 30, 2019, no Notes were convertible pursuant to their terms. In connection with the Notes 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.
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Earnings Per Share |
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| 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 and six months ended June 30, 2019 and 2018 (in thousands):
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 June 30, 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.
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| Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Employee Equity-Based Compensation | NOTE 12. EMPLOYEE EQUITY-BASED COMPENSATION The following table summarizes option activity under all plans during the six months ended June 30, 2019:
The table below summarizes the resulting weighted average inputs used to calculate the estimated fair value of options awarded during the periods shown below:
The following table shows summary information for outstanding options and options that are exercisable (vested) as of June 30, 2019:
The following table summarizes RSU and restricted stock award activity during the six months ended June 30, 2019:
Equity-based compensation expense is summarized below (in thousands):
During the three months ended June 30, 2019 and 2018, $0.2 million and $0.1 million, respectively, of share-based compensation cost was capitalized to inventory or inventory transferred to property and equipment (also referred to as instruments). During the six months ended June 30, 2019 and 2018, $0.4 million and $0.5 million, respectively, of share-based compensation cost was capitalized to inventory or inventory transferred to property and equipment (also referred to as instruments). As of June 30, 2019, unrecognized equity-based compensation expense related to unvested stock options and unvested RSUs was $19.5 million and $0.3 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 six months ended June 30, 2019 for performance-based stock options.
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Income Taxes |
6 Months Ended |
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Jun. 30, 2019 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | NOTE 13. INCOME TAXES For the three and six months ended June 30, 2019, the Company recorded a provision for income taxes of $17,000 and $238,000, respectively, which primarily relates to profitable foreign jurisdictions without any net operating loss carryforwards. The Company’s tax expense for the three and six months ended June 30, 2019 differs from the tax expense computed by applying the U.S. statutory tax rate to its year-to-date pre-tax loss of $20.8 million and $42.3 million, respectively, as no tax benefits were recorded for tax losses generated in the U.S. and other foreign jurisdictions. At June 30, 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 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 and six months ended June 30, 2019, we did not note any significant changes to our uncertain tax positions. We do not anticipate significant changes to uncertain tax positions within the next 12 months.
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Commitments |
6 Months Ended |
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Jun. 30, 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 indemnifying these sites for losses.
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Leases |
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| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | NOTE 15. LEASES The following presents supplemental information related to our leases in which we are the lessee for the three and six months ended June 30, 2019 (in thousands):
The weighted average remaining lease term on our operating leases is 2.1 years. The weighted average discount rate on those leases is 6.9%. Rent expense including common area charges was $346,000 and $688,000 for the three and six months ended June 30, 2018, respectively. The following presents maturities of operating lease liabilities in which we are the lessee as of June 30, 2019 (in thousands):
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 June 30, 2019, the total net investment in these leases was $0.5 million. The following presents maturities of lease receivables under sales-type leases as of June 30, 2019 (in thousands):
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| Leases | NOTE 15. LEASES The following presents supplemental information related to our leases in which we are the lessee for the three and six months ended June 30, 2019 (in thousands):
The weighted average remaining lease term on our operating leases is 2.1 years. The weighted average discount rate on those leases is 6.9%. Rent expense including common area charges was $346,000 and $688,000 for the three and six months ended June 30, 2018, respectively. The following presents maturities of operating lease liabilities in which we are the lessee as of June 30, 2019 (in thousands):
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 June 30, 2019, the total net investment in these leases was $0.5 million. The following presents maturities of lease receivables under sales-type leases as of June 30, 2019 (in thousands):
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Industry, Geographic and Revenue Disaggregation |
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| 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 24% and 28% for the three months ended June 30, 2019 and 2018, respectively, and 28% and 27% for the six months ended June 30, 2019 and 2018, respectively. As of June 30, 2019 and December 31, 2018, balances due from foreign customers, in U.S. dollars, were $1.1 million and $0.9 million, respectively. The following presents total net sales by geographic territory for the three and six months ended June 30, 2019 and 2018 (in thousands):
The following presents total net sales by line of business for the three and six months ended June 30, 2019 and 2018 (in thousands):
The following presents total net sales by products and services for the three and six months ended June 30, 2019 and 2018 (in thousands):
Lease income included in net sales was $0.2 million for each of the three months ended June 30, 2019 and 2018, respectively, and $0.4 million and $0.2 million for the six months ended June 30, 2019 and 2018, 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):
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Related Party Transactions |
6 Months Ended |
|---|---|
Jun. 30, 2019 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | NOTE 17. RELATED PARTY TRANSACTIONS As discussed in Note 10, Convertible Notes the Company issued Notes in March 2018. As part of this issuance an affiliate of one member of the Company's board of directors purchased an aggregate of $30.0 million of the Notes. In May 2019, this affiliate purchased an additional $10.0 million of Notes on the open market. The affiliated entity is a Qualified Institutional Buyer which purchased and holds an aggregate of $40.0 million of the Notes at June 30, 2019.
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Organization and Nature of Business; Basis of Presentation; Principles of Consolidation; Significant Accounting Policies (Policies) |
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| 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.
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| 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.
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| 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.
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| 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:
the asset or liability;
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. |
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| 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. |
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| 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). |
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| 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. |
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| Accounts Receivable | Accounts Receivable |
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| 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. |
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| 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. |
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| 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. |
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| 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.
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| 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:
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 and six months ended June 30, 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. |
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| Leases, Lessee | 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 June 30, 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.
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| Leases, Lessor | Lessor The Company leases instruments to customers under “reagent rental” agreements, whereby 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.
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| 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.
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.
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| 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. |
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| 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. |
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| 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. |
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| Standards that were adopted and standards not yet adopted | Standards that were adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. No cumulative-effect adjustment was recorded to the opening balance of retained earnings. 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 had no impact to 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 Cuts and Jobs Act (the “Tax Act”) that the FASB refers to as having been stranded in AOCI. The Company adopted ASU 2018-02 on January 1, 2019, which had 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, which had no impact to our 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, which was subsequently clarified and amended by ASU 2019-05, ASU 2019-04 and ASU 2018-19. 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.
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Organization and Nature of Business; Basis of Presentation; Principles of Consolidation; Significant Accounting Policies (Tables) |
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| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Product Warranty Reserve Activity | Warranty reserve activity for the three and six months ended June 30, 2019 and 2018 is as follows (in thousands):
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Concentration of Credit Risk (Tables) |
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| Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Customer Concentration | Customers who represented 10% or more of the Company’s total revenue for the three and six months ended June 30, 2019 and 2018 were as follows:
* Less than 10% for the period indicated
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Fair Value of Financial Instruments (Tables) |
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| 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 June 30, 2019 and December 31, 2018 (in thousands):
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Investments (Tables) |
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Jun. 30, 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 June 30, 2019 and December 31, 2018 (in thousands):
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| Schedule of Available-For-Sale Investment Maturities | The following table summarizes the maturities of the Company’s available-for-sale securities at June 30, 2019 and December 31, 2018 (in thousands):
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Inventory (Tables) |
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| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Inventories | Inventories consisted of the following at June 30, 2019 and December 31, 2018 (in thousands):
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Property and Equipment (Tables) |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment | Property and equipment consisted of the following at June 30, 2019 and December 31, 2018 (in thousands):
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Deferred Revenue, Income and Remaining Performance Obligations (Tables) |
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| Deferred Revenue Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||
| Deferred Revenue and Income Summary | A summary of the balances as of June 30, 2019 and December 31, 2018 follows (in thousands):
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Convertible Notes (Tables) |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Convertible Notes | The Notes at June 30, 2019 and December 31, 2018 consisted of the following (in thousands):
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Earnings Per Share (Tables) |
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| 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 and six months ended June 30, 2019 and 2018 (in thousands):
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Employee Equity-Based Compensation (Tables) |
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| Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Option Activity | The following table summarizes option activity under all plans during the six months ended June 30, 2019:
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| 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:
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| Stock Option Supplemental Information | The following table shows summary information for outstanding options and options that are exercisable (vested) as of June 30, 2019:
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| Restricted Stock Unit (RSU) Activity | The following table summarizes RSU and restricted stock award activity during the six months ended June 30, 2019:
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| Equity-Based Compensation Expenses | Equity-based compensation expense is summarized below (in thousands):
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Leases (Tables) |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets And Liabilities | The following presents supplemental information related to our leases in which we are the lessee for the three and six months ended June 30, 2019 (in thousands):
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| Lease Costs | The following presents supplemental information related to our leases in which we are the lessee for the three and six months ended June 30, 2019 (in thousands):
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| Maturities of Lease Liabilities | The following presents maturities of operating lease liabilities in which we are the lessee as of June 30, 2019 (in thousands):
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| Sales-type Lease Receivable Maturity | The following presents maturities of lease receivables under sales-type leases as of June 30, 2019 (in thousands):
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Industry, Geographic and Revenue Disaggregation (Tables) |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disaggregation of Revenue | The following presents total net sales by geographic territory for the three and six months ended June 30, 2019 and 2018 (in thousands):
The following presents total net sales by line of business for the three and six months ended June 30, 2019 and 2018 (in thousands):
The following presents total net sales by products and services for the three and six months ended June 30, 2019 and 2018 (in thousands):
|
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| Long-lived Assets by Geographic Territory | The following presents long-lived assets (excluding intangible assets) by geographic territory (in thousands):
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Organization and Nature of Business; Basis of Presentation; Principles of Consolidation; Significant Accounting Policies - Narrative (Details) |
3 Months Ended | 6 Months Ended | |
|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
|
| Property, Plant and Equipment [Line Items] | |||
| Instrument warranty term | 1 year | ||
| Kits and accessories warranty term | 60 days | ||
| Term of lease | 5 years | 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 | 2 years | |
| Maximum | |||
| Property, Plant and Equipment [Line Items] | |||
| Estimated useful life of assets | 7 years | ||
| Payment terms | 150 days | ||
| Lease term | 5 years | 5 years | |
| Instruments | |||
| Property, Plant and Equipment [Line Items] | |||
| Estimated useful life of assets | 5 years | ||
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 | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
| Beginning balance | $ 206 | $ 176 | $ 215 | $ 192 |
| Provisions | 0 | 145 | 70 | 266 |
| Warranty incurred | (10) | (122) | (89) | (259) |
| Ending balance | $ 196 | $ 199 | $ 196 | $ 199 |
Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Jan. 01, 2019 |
|---|---|---|
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
| Right of use assets | $ 375 | |
| Lessee lease liabilities | $ 375 | $ 600 |
| ASU 2016-02 | ||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
| Right of use assets | $ 600 |
Fair Value of Financial Instruments - Narrative (Details) - USD ($) |
Apr. 04, 2018 |
Mar. 27, 2018 |
Jun. 30, 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 | $ 150,000,000.0 | ||
| Interest rate | 2.50% | |||
| Proceeds received | $ 171,500,000 | |||
| Fair value | $ 150,100,000 | $ 121,400,000 |
Investments - Schedule of Available-for-Sale Investment Maturities (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
|---|---|---|
| Amortized Cost | ||
| Due in less than 1 year | $ 47,839 | $ 83,030 |
| Due in 1-3 years | 2,461 | 17,359 |
| Total | 50,300 | 100,389 |
| Fair Value | ||
| Due in less than 1 year | 47,870 | 82,893 |
| Due in 1-3 years | 2,479 | 17,325 |
| Total | $ 50,349 | $ 100,218 |
Investments - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Investments, Debt and Equity Securities [Abstract] | ||||
| Proceeds from sales of marketable securities | $ 4,400 | $ 0 | $ 13,400 | $ 3,000 |
| Gross realized gains or losses from sales of marketable securities | $ 0 | $ 0 | $ 0 | $ 0 |
Inventory (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
|---|---|---|
| Inventory Disclosure [Abstract] | ||
| Raw materials | $ 5,220 | $ 4,064 |
| Work in process | 1,327 | 495 |
| Finished goods | 1,751 | 3,187 |
| Inventory | $ 8,298 | $ 7,746 |
License Agreements and Grants - National Institute of Health Grant (Details) - National Institute of Health Grant - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | 53 Months Ended | ||
|---|---|---|---|---|---|---|
Feb. 28, 2015 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 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 | $ 5,000 | $ 100 | $ 38 | $ 200 | $ 100 | |
| Cumulative amount awarded | $ 1,300 | |||||
License Agreements and Grants - Arizona Commerce Authority (Details) $ in Millions |
1 Months Ended |
|---|---|
|
Jan. 31, 2018
USD ($)
| |
| Arizona Commerce Authority | |
| Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
| Arizona Commerce Authority grant | $ 1.0 |
Deferred Revenue, Income and Remaining Performance Obligations (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
| Disaggregation of Revenue [Line Items] | |||||
| Deferred revenue and income | $ 255 | $ 255 | $ 217 | ||
| Revenues recognized included in contract liabilities balances | 58 | $ 14 | 95 | $ 35 | |
| Revenue expected to be recognized from remaining performance obligations | 2,000 | $ 2,000 | |||
| 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 | $ 255 | $ 255 | $ 217 | ||
Convertible Notes - Schedule of Convertible Notes (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
|---|---|---|
| Debt Disclosure [Abstract] | ||
| Outstanding principal | $ 171,500 | $ 171,500 |
| Unamortized debt discount | (43,869) | (48,430) |
| Unamortized debt issuance | (2,714) | (2,996) |
| Net carrying amount of the liability component | $ 124,917 | $ 120,074 |
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 | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Antidilutive common stock instruments outstanding (shares) | 9,127 | 8,109 | 9,127 | 8,109 |
| 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) | 25 | 16 | 25 | 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) | 9,102 | 8,093 | 9,102 | 8,093 |
Earnings Per Share - Narrative (Details) |
6 Months Ended | ||
|---|---|---|---|
|
Apr. 04, 2018
USD ($)
shares
|
Mar. 27, 2018
USD ($)
|
Jun. 30, 2019
shares
|
|
| Debt Instrument [Line Items] | |||
| Conversion ratio | 0.0323428 | ||
| 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 | $ 150,000,000.0 | |
| Conversion multiple | $ | $ 1,000 | ||
| Shares issued (shares) | 0 | ||
| Number of shares issuable upon conversion (shares) | 5,500,000 |
Employee Equity-Based Compensation - Stock Option Activity (Details) |
6 Months Ended |
|---|---|
|
Jun. 30, 2019
$ / shares
shares
| |
| Number of Shares | |
| Outstanding, beginning balance (shares) | shares | 8,090,636 |
| Granted (shares) | shares | 1,594,929 |
| Forfeited (shares) | shares | (283,856) |
| Exercised (shares) | shares | (260,821) |
| Expired (shares) | shares | (38,878) |
| Outstanding, ending balance (shares) | shares | 9,102,010 |
| Weighted Average Exercise Price per Share | |
| Outstanding, beginning balance (dollars per share) | $ / shares | $ 12.22 |
| Granted (dollars per share) | $ / shares | 12.36 |
| Forfeited (dollars per share) | $ / shares | 20.68 |
| Exercised (dollars per share) | $ / shares | 16.75 |
| Expired (dollars per share) | $ / shares | 23.16 |
| Outstanding, ending balance (dollars per share) | $ / shares | $ 11.80 |
Employee Equity-Based Compensation - Inputs to Calculate Estimated Fair Value of Options Awarded (Details) - $ / shares |
3 Months Ended | 6 Months Ended | |
|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
|
| Share-based Payment Arrangement [Abstract] | |||
| Expected term (in years) | 5 years 7 months 24 days | 6 years 21 days | |
| Volatility | 58.00% | 64.00% | |
| Expected dividends | 0.00% | 0.00% | 0.00% |
| Risk free interest rates | 2.38% | 2.82% | |
| Weighted average fair value (dollars per share) | $ 11.08 | $ 13.53 | $ 11.08 |
Employee Equity-Based Compensation - Stock Option Supplemental Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
| Options Outstanding | ||
| Number of options (shares) | 9,102,010 | 8,090,636 |
| Weighted average remaining contractual term (in years) | 5 years 9 months 29 days | |
| Weighted average exercise price (dollars per share) | $ 11.80 | $ 12.22 |
| Weighted average fair value (dollars per share) | $ 7.85 | |
| Aggregate intrinsic value (in thousands) | $ 104,986 | |
| Options Exercisable | ||
| Number of options (shares) | 6,096,976 | |
| Weighted average remaining contractual term (in years) | 4 years 5 months 19 days | |
| Weighted average exercise price (dollars per share) | $ 8.94 | |
| Weighted average fair value (dollars per share) | $ 6.03 | |
| Aggregate intrinsic value (in thousands) | $ 86,768 |
Employee Equity-Based Compensation - Restricted Stock Activity (Details) - RSUs and RSAs |
6 Months Ended |
|---|---|
|
Jun. 30, 2019
$ / shares
shares
| |
| Number of Shares | |
| Beginning balance (shares) | shares | 76,000 |
| Granted (shares) | shares | 11,000 |
| Forfeited (shares) | shares | (55,000) |
| Vested/Released (shares) | shares | (7,000) |
| Ending balance (shares) | shares | 25,000 |
| 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 | 20.24 |
| Vested/Released (dollars per share) | $ / shares | 19.47 |
| Ending balance (dollars per share) | $ / shares | $ 15.81 |
Employee Equity-Based Compensation - Equity-Based Compensation Expense and Tax Benefit (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Equity-based compensation expense | $ 2,881 | $ 3,409 | $ 6,278 | $ 9,011 |
| Cost of sales | ||||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Equity-based compensation expense | 52 | 58 | 107 | 104 |
| Research and development | ||||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Equity-based compensation expense | 802 | 838 | 2,329 | 2,450 |
| Sales, general and administrative | ||||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Equity-based compensation expense | $ 2,027 | $ 2,513 | $ 3,842 | $ 6,457 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Income Tax Disclosure [Abstract] | ||||
| Provision for income taxes | $ 17 | $ 101 | $ 238 | $ 285 |
| Pre-tax loss | $ 20,798 | $ 23,124 | $ 42,298 | $ 43,752 |
Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Cash paid for amounts included in lease liabilities | ||||
| Operating cash flows from operating leases | $ 83 | $ 165 | ||
| ROU assets obtained in exchange for lease obligations | ||||
| Operating leases | 0 | 0 | ||
| Lease Cost | ||||
| Operating leases | 83 | 165 | ||
| Short-term leases | $ 299 | $ 590 | ||
| Weighted average remaining lease term (years) | 2 years 1 month 6 days | 2 years 1 month 6 days | ||
| Weighted average discount rate (%) | 6.90% | 6.90% | ||
| Rent expense | $ 346 | $ 688 | ||
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Jan. 01, 2019 |
|---|---|---|
| Leases [Abstract] | ||
| Remainder of 2019 | $ 118 | |
| 2020 | 150 | |
| 2021 | 97 | |
| 2022 | 39 | |
| 2023 | 0 | |
| Thereafter | 0 | |
| Total lease payments | 404 | |
| Less imputed interest | (29) | |
| Total | $ 375 | $ 600 |
Leases - Sales-type Lease Receivable Maturity (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
|
|---|---|
| Leases [Abstract] | |
| Net Investment in Lease | $ 500 |
| Remainder of 2019 | 99 |
| 2020 | 169 |
| 2021 | 109 |
| 2022 | 86 |
| 2023 | 53 |
| Thereafter | 13 |
| Total undiscounted cash flows | 529 |
| Less imputed interest | (3) |
| Present value of lease payments | $ 526 |
Industry, Geographic and Revenue Disaggregation - Narrative (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
segment
|
Jun. 30, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
| Segment Reporting [Abstract] | |||||
| Number of operating segments | segment | 1 | ||||
| Segment Reporting Information [Line Items] | |||||
| Trade accounts receivable | $ 1,911 | $ 1,911 | $ 1,860 | ||
| Lease Income | $ 200 | $ 400 | |||
| Lease income | $ 200 | $ 200 | |||
| Geographic concentration | Foreign | Total revenue | |||||
| Segment Reporting Information [Line Items] | |||||
| Risk concentration | 24.00% | 28.00% | 28.00% | 27.00% | |
| Geographic concentration | Foreign | Net accounts receivable | |||||
| Segment Reporting Information [Line Items] | |||||
| Trade accounts receivable | $ 1,100 | $ 1,100 | $ 900 | ||
Industry, Geographic and Revenue Disaggregation - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Disaggregation of Revenue [Line Items] | ||||
| Net sales | $ 1,806 | $ 1,692 | $ 3,557 | $ 2,493 |
| Accelerate Pheno™ revenue | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net sales | 1,777 | 1,665 | 3,483 | 2,435 |
| Other revenue | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net sales | 29 | 27 | 74 | 58 |
| Products | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net sales | 1,695 | 1,671 | 3,389 | 2,467 |
| Services | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net sales | 111 | 21 | 168 | 26 |
| Domestic | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net sales | 1,380 | 1,220 | 2,551 | 1,815 |
| Foreign | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net sales | $ 426 | $ 472 | $ 1,006 | $ 678 |
Industry, Geographic and Revenue Disaggregation - Long-lived Assets by Geographic Territory (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
|---|---|---|
| Segment Reporting Information [Line Items] | ||
| Long-lived assets (excluding intangible assets) | $ 7,624 | $ 7,303 |
| Property and equipment | Geographic concentration | ||
| Segment Reporting Information [Line Items] | ||
| Long-lived assets (excluding intangible assets) | 7,624 | 7,303 |
| Property and equipment | Geographic concentration | Domestic | ||
| Segment Reporting Information [Line Items] | ||
| Long-lived assets (excluding intangible assets) | 6,710 | 6,309 |
| Property and equipment | Geographic concentration | Foreign | ||
| Segment Reporting Information [Line Items] | ||
| Long-lived assets (excluding intangible assets) | $ 914 | $ 994 |
Related Party Transaction (Details) - USD ($) |
Jun. 30, 2019 |
May 31, 2019 |
Mar. 31, 2018 |
|---|---|---|---|
| Director | Note holder | |||
| Related Party Transaction [Line Items] | |||
| Aggregate principal amount | $ 40,000,000.0 | $ 10,000,000.0 | $ 30,000,000.0 |
| Label | Element | Value |
|---|---|---|
| Retained Earnings [Member] | ||
| Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (49,000) |