Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies (Tables)

v3.19.3.a.u2
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Impact of adoption on financial statements
In accordance with ASC 606, the disclosure of the impact of adoption to our consolidated statements of operations and balance sheets was as follows (in thousands, except per share amounts):

Year Ended December 31, 2018
As reported Adjustments Balances without adoption of ASC 606
Revenues:
Product Revenue $ 25,590    $ (3,422)   $ 22,168   
Research and development revenue 35,004    (1,609)   33,395   
Total revenues 60,594    (5,031)   55,563   
Costs and operating expenses:
Cost of product revenue 12,620 (285)   12,335
Research and development 29,978    (196)   29,782   
Selling, general and administrative 29,291    —    29,291   
Total costs and operating expenses 71,889    (481)   71,408   
Loss from operations (11,295)   (4,550)   (15,845)  
Interest income 671    —    671   
Other expenses (291)   —    (291)  
Loss before income taxes (10,915)   (4,550)   (15,465)  
Provision for (benefit from) income taxes (37)   —    (37)  
Net loss $ (10,878)   $ (4,550)   $ (15,428)  
Net loss per share, basic and diluted $ (0.21)   $ (0.09)   $ 0.30   
Weighted average common shares used in computing net loss per share, basic and diluted 52,205    52,205   


December 31, 2018
As reported Adjustments Balances without adoption of ASC 606
Assets
Accounts receivable $ 11,551    $ (1,253)   $ 10,298   
Unbilled receivables, current 1,916    (1,916)   —   
Contract assets 35    (35)   —   
Inventories 589 1 590   
Unbilled receivables, non-current 786 (786)   —   
Other non-current assets 265    (42)   223   
Liabilities
Other accrued liabilities 4,855    (520)   4,335   
Deferred revenue - current 4,936    (1,574)   3,362   
Deferred revenue - non-current 3,352    (1,445)   1,907   
Stockholders' equity
Accumulated deficit (330,474)   (492)   (330,966)  
The following table shows the reconciliation of ROU assets and lease obligations, with balances reflecting the adoption of ASC 842, related to both operating leases and finance leases and gives effect to the modified retrospective adoption and effective date method under the lease guidance on January 1, 2019 (in thousands):

Operating Leases Finance Leases
Right-of-use assets, Balance at December 31, 2018 $ —    $ —   
Changes in the period:
    Right-of-use assets created upon adoption of ASC 842 26,617    493   
Right-of-use assets, balance at January 1, 2019 $ 26,617    $ 493   
Lease obligations, balance at December 31, 2018 $ —    $ —   
Changes in the period:
    Lease obligations created upon adoption of ASC 842 27,562    302   
Lease obligations, balance at January 1, 2019 $ 27,562    $ 302   
Lease, Cost
Lease related costs under non-cancellable finance leases and operating leases under non-cancellable subleases were as follows (in thousands):
Lease costs: December 31, 2019
Finance lease costs:
Amortization of right-of-use assets $ 217   
Interest on lease obligations 10   
Finance lease costs 227   
Operating lease cost 4,556   
Sublease income (957)  
Total lease cost $ 3,826   

All short-term lease costs are related to leases with a lease term of one month or less.
Other information related to non-cancellable finance leases and operating leases under non-cancellable subleases for the year ended December 31, 2019 were as follows (in thousands, except discount rate and lease term):

Other information: Operating Leases Finance Leases
Weighted-average remaining lease term (in years) 7.7 years 0.3 years
Weighted-average discount rate 6.6  % 5.0  %
Cash paid for amounts included in measurement of lease obligations:
Operating cash flows $ 3,279    $ 10   
Financing cash flows $ —    $ 242   
Non-cash activity: Right-of-use assets obtained in exchange for lease liabilities $ 26,617    $ 493   
Lessee, Operating Lease, Liability, Maturity December 31, 2019, under ASC 842, our maturity analyses of annual undiscounted cash flows of the non-cancellable finance and operating leases are as follows (in thousands):
Years ending December 31, Finance Leases Operating Leases
2020 $ 60    $ 2,816   
2021 —    4,197   
2022 —    4,285   
2023 —    4,589   
2024 —    4,726   
Thereafter —    13,493   
Total minimum lease payments (1)
60    34,106   
Less: imputed interest —    (8,048)  
Lease obligations $ 60    $ 26,058   

(1) Operating Lease minimum payments have not been reduced by future minimum sublease rentals of $0.1 million to be received under
non-cancellable subleases.
Finance Lease, Liability, Maturity December 31, 2019, under ASC 842, our maturity analyses of annual undiscounted cash flows of the non-cancellable finance and operating leases are as follows (in thousands):
Years ending December 31, Finance Leases Operating Leases
2020 $ 60    $ 2,816   
2021 —    4,197   
2022 —    4,285   
2023 —    4,589   
2024 —    4,726   
Thereafter —    13,493   
Total minimum lease payments (1)
60    34,106   
Less: imputed interest —    (8,048)  
Lease obligations $ 60    $ 26,058   

(1) Operating Lease minimum payments have not been reduced by future minimum sublease rentals of $0.1 million to be received under
non-cancellable subleases.
Schedule of future minimum payments under non-cancellable operating leases
As of December 31, 2018, under ASC 840, maturity analysis of annual undiscounted cash flows of the non-cancellable capital and operating leases as follows (in thousands):
Years ending December 31, Capital Leases Operating Leases
2019 $ 252    $ 3,280   
2020 61    712   
2021 —    490   
2022 —    41   
2023 —    —   
Total minimum lease payments (1)
313    $ 4,523   
Less: amount representing interest    (10)  
Present value of capital lease obligations    303   
Less: current portion    (242)  
Long-term portion of capital leases    $ 61   
(1) Minimum payments have not been reduced by future minimum sublease rentals of $0.9 million to be received under non-cancellable subleases.
Schedule of future minimum lease payments for capital leases
As of December 31, 2018, under ASC 840, maturity analysis of annual undiscounted cash flows of the non-cancellable capital and operating leases as follows (in thousands):
Years ending December 31, Capital Leases Operating Leases
2019 $ 252    $ 3,280   
2020 61    712   
2021 —    490   
2022 —    41   
2023 —    —   
Total minimum lease payments (1)
313    $ 4,523   
Less: amount representing interest    (10)  
Present value of capital lease obligations    303   
Less: current portion    (242)  
Long-term portion of capital leases    $ 61   
(1) Minimum payments have not been reduced by future minimum sublease rentals of $0.9 million to be received under non-cancellable subleases.
Schedule of supply commitment
The following table provides quantitative data regarding our other commitments. Future minimum payments reflect amounts that we expect to pay including potential obligations under services agreements subject to risk of cancellation by us (in thousands):

Other Commitment Agreement Type Agreement Date Future Minimum Payment
Manufacture and supply agreement with expected future payment date of December 2022 April 2016 $ 990   
Development and manufacturing services agreements September 2019 2,264   
Total other commitments $ 3,254   
Schedule of credit facility prepayment terms
Prepayments of Term Debt and early termination of the Revolving Line of Credit are subject to prepayment and final payment fees are as follows:
Term Debt Revolving Line of Credit
Through and including the first anniversary of the funding date of the first Term Debt drawn 2.0  %
After the first anniversary of the funding date of the first Term Debt drawn and before the maturity date 1.0  %
On the earliest to occur of the maturity date, the acceleration of Term Debt drawn or prepayment of Term Debt drawn 5.5  %
Through and including the first anniversary of the closing date 3.0  %
After the first anniversary of the closing date through and including the second anniversary of the closing date 2.0  %
After the second anniversary of the closing date through and including the third anniversary of the closing date 1.0  %