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Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2019
Summary of Significant Accounting Policies  
Contract assets and contract liabilities

The following table presents changes in the Company’s contract assets and contract liabilities during the years ended December 31, 2019 and 2018 (in thousands):

Balance at

Balance at

Year ended December 31, 2019

December 31, 2018

 

Additions

Deductions

Impact of Netting

December 31, 2019

Contract asset

$

500

$

8,000

$

(500)

$

(4,369)

$

3,631

Contract liabilities

$

80,802

$

65,816

$

(14,817)

$

(4,369)

$

127,432

Balance at

January 1, 2018

Balance at

Year ended December 31, 2018

(ASC 606 adoption)

Additions

Deductions

Impact of Netting

December 31, 2018

Contract asset

$

$

500

$

(5,000)

$

5,000

$

500

Contract liabilities

$

89,967

$

730

$

(14,895)

$

5,000

$

80,802

During the years ended December 31, 2019 and 2018, the Company recognized the following revenue as a result of changes in contract asset and contract liability balances in the respective periods (in thousands):

Years Ended

December 31,

2019

2018

Revenue recognized in the period from:

Amounts included in contract liabilities at the beginning of the period

$

14,817

$

14,139

Performance obligations satisfied in previous periods

$

12,672

$

1,476

Schedule of assets that are required to be measured at fair value on a recurring basis

As of December 31, 2019 and 2018, the Company held certain assets that are required to be measured at fair value on a recurring basis. The following tables represent the fair value hierarchy for the Company’s financial assets measured at fair value on a recurring basis as of each date (in thousands):

Fair Value Measurements at December 31, 2019 Using

Quoted Prices in

Significant

Active Markets for

Significant Other

Unobservable

Identical Assets

Observable Inputs

Inputs

    

Total

    

(Level 1)

    

(Level 2)

    

(Level 3)

Cash equivalents

$

163,674

$

163,674

$

$

Fair Value Measurements at December 31, 2018 Using

Quoted Prices in

Significant

Active Markets for

Significant Other

Unobservable

Identical Assets

Observable Inputs

Inputs

    

Total

    

(Level 1)

    

(Level 2)

    

(Level 3)

Cash equivalents

$

242,604

$

242,604

    

$

    

$

Schedule of components of other accrued liabilities

Other accrued liabilities consisted of the following at December 31, 2019 and 2018 (in thousands):

December 31,

    

December 31,

    

2019

2018

Accrued contract payments

$

5,188

$

6,389

Accrued clinical trial costs

 

6,418

 

11,087

Accrued professional services

 

1,274

 

1,171

Accrued employee benefits

 

314

 

651

Accrued public reporting charges

 

180

 

164

Other current accrued liabilities

 

558

 

1,003

Total

$

13,932

$

20,465

Schedule of estimated useful lives of property and equipment

Machinery and equipment

    

5 years

Computer hardware and software

 

3 years

Furniture and fixtures

 

5 years

Leasehold improvements

 

Shorter of remaining lease term or 7 years

Schedule of common stock equivalents, as calculated in accordance with the treasury-stock method

The Company’s common stock equivalents, as calculated in accordance with the treasury-stock method for the options and unvested restricted stock and the if-converted method for the convertible notes, are shown in the following table (in thousands):

Years Ended December 31,

    

2019

2018

2017

Options outstanding to purchase common stock, shares issuable under the employee stock purchase plan, and unvested restricted stock/units at end of period

14,815

17,380

14,290

Common stock equivalents under treasury stock method for options, shares issuable under the employee stock purchase plan, and unvested restricted stock

 

1,020

3,001

1,579

Shares issuable upon conversion of convertible notes at end of period

501

501

501

Common stock equivalents under if-converted method for convertible notes

501

501

501

Schedule of assumptions

December 31,

2019

2018

2017

Dividend

None

None

None

Volatility

76.67%

71.02%

67.34%

Risk-free interest rate

2.20%

2.73%

2.00%

Expected life (years)

6.0

6.0

6.0

    

December 31, 2019

June 30, 2019

December 31, 2018

Dividend

None

None

None

Volatility

131.9%

67.3%

70.1%

Risk-free interest rate

2.10%

2.51%

2.14%

Expected life (years)

0.5

0.5

0.5

Summary of stock option activity

A summary of option activity under the option plans as of December 31, 2019, 2018 and 2017, is presented below (in thousands, except weighted-average data):

    

    

Weighted-

Weighted-

    

Number

Average

Average

Aggregate

of Stock

Exercise

Remaining

Intrinsic

Options

Price

Life in Yrs.

Value

Outstanding at December 31, 2016

13,679

$

10.70

6.55

$

23

Granted

 

1,589

3.21

Exercised

 

(191)

3.42

Forfeited/Canceled

 

(3,106)

10.33

Outstanding at December 31, 2017

 

11,971

9.92

6.17

$

13,513

Outstanding at December 31, 2017—vested or unvested and expected to vest

 

11,881

$

9.96

6.15

$

13,283

Exercisable at December 31, 2017

 

7,996

$

12.16

4.97

$

3,733

Outstanding at December 31, 2017

11,971

$

9.92

Granted

5,513

10.36

Exercised

(742)

4.67

Forfeited/Canceled

(1,178)

11.49

Outstanding at December 31, 2018

15,564

10.20

6.46

$

5,818

Outstanding at December 31, 2018—vested or unvested and expected to vest

 

15,386

$

10.21

6.43

$

5,781

Exercisable at December 31, 2018

 

8,405

$

11.47

4.45

$

3,122

Outstanding at December 31, 2018

15,564

$

10.20

Granted

7,820

4.20

Exercised

(794)

2.79

Forfeited/Canceled

(9,072)

9.66

Outstanding at December 31, 2019

13,518

7.53

7.18

$

10,657

Outstanding at December 31, 2019—vested or unvested and expected to vest

 

13,321

$

7.57

7.15

$

10,406

Exercisable at December 31, 2019

 

5,801

$

10.16

4.79

$

3,218

Summary of restricted stock activity

Number of

Weighted-

Restricted

Average Grant

Stock Shares

Date Fair Value

Unvested at December 31, 2016

 

199

$

4.41

Awarded

2,253

2.71

Vested

 

(25)

5.87

Forfeited

(108)

2.68

Unvested at December 31, 2017

 

2,319

$

2.82

Vested

 

(503)

2.64

Unvested at December 31, 2018

 

1,816

$

2.87

Awarded

631

2.55

Vested

 

(504)

2.64

Forfeited

(646)

2.54

Unvested at December 31, 2019

 

1,297

$

2.97

Summary of vested stock option activity

A summary of option activity for options vested during the years ended December 31, 2019, 2018, and 2017 is presented below (in thousands):

Years Ended December 31,

2019

2018

2017

 

Total fair value of options vested

$

13,747

$

7,496

$

10,964

Total intrinsic value of options exercised

556

 

3,787

 

598

Cash received for exercise of stock options

2,873

 

4,301

 

650

Schedule of percentage of total revenues recognized from each significant customer

Years Ended December 31,

Collaborative Partner:

2019

2018

2017

CytomX

13%

8%

13%

Debiopharm

-%

2%

26%

Roche

64%

60%

24%

Sanofi

-%

-%

31%

Takeda

-%

23%

4%

Jazz

18%

-%

-%