Quarterly report pursuant to Section 13 or 15(d)

Balance Sheets And Statements Of Operations Details

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Balance Sheets And Statements Of Operations Details
9 Months Ended
Sep. 30, 2011
Balance Sheets And Statements Of Operations Details [Abstract]  
Balance Sheets And Statements Of Operations Details

5. Balance Sheets and Statements of Operations Details

Cash Equivalents and Marketable Securities At September 30, 2011, cash equivalents and marketable securities consisted of the following (in thousands):

 

     September 30, 2011         
     Cost or
Amortized
Cost
     Gross
Unrealized
Gains
     Gross
Unrealized
Losses
    Estimated
Fair Value
     Average
Contractual
Maturities
 
            (in days)  

Money market funds

   $ 23,889       $ —         $ —        $ 23,889         n/a   

Commercial paper

     3,997         —           —          3,997         103   

Corporate bonds

     30,563         11         (74     30,500         352   

U.S. Treasury obligations

     998         4         —          1,002         366   

Government-sponsored enterprise securities

     3,004         12         (1     3,015         313   

Common shares of CO2 Solution

     1,316         694         —          2,010         n/a   
  

 

 

    

 

 

    

 

 

   

 

 

    

Total

   $ 63,767       $ 721       $ (75   $ 64,413      
  

 

 

    

 

 

    

 

 

   

 

 

    

 

The total cash and cash equivalents balance of $30.1 million as of September 30, 2011 was comprised of money market funds of $23.9 million and $6.2 million held as cash with major financial institutions worldwide.

At December 31, 2010, cash equivalents and marketable securities consisted of the following (in thousands):

 

     December 31, 2010         
     Cost or
Amortized
Cost
     Gross
Unrealized
Gains
     Gross
Unrealized
Losses
     Estimated
Fair Value
     Average
Contractual
Maturities
 
                                 (in days)  

Money market funds

   $ 64,956       $ —         $ —         $ 64,956         n/a   

Common shares of CO2 Solution

     1,316         334         —           1,650         n/a   
  

 

 

    

 

 

    

 

 

    

 

 

    

Total

   $ 66,272       $ 334       $ —         $ 66,606      
  

 

 

    

 

 

    

 

 

    

 

 

    

Inventories

Inventories consisted of the following (in thousands):

 

     September 30,
2011
     December 31,
2010
 

Raw materials

   $ 3,095       $ 1,963   

Work in process

     149         38   

Finished goods

     1,996         816   
  

 

 

    

 

 

 

Total inventories

   $ 5,240       $ 2,817   
  

 

 

    

 

 

 

Property and Equipment, net

Property and equipment consisted of the following (in thousands):

 

     September 30,
2011
    December 31,
2010
 

Laboratory equipment

   $ 33,354      $ 29,931   

Leasehold improvements

     12,859        10,961   

Computer equipment and software

     4,170        3,050   

Office equipment and furniture

     947        865   

Construction in progress (1)

     1,766        838   
  

 

 

   

 

 

 
     53,096        45,645   

Less: accumulated depreciation and amortization

     (29,775     (24,193
  

 

 

   

 

 

 

Property and equipment, net

   $ 23,321      $ 21,452   
  

 

 

   

 

 

 

 

(1) Construction in progress includes equipment received but not yet placed into service pending installation.

 

Due to the extension of the lease period for certain currently occupied facilities, we re-evaluated the depreciable lives of existing leasehold improvements, totaling $2.3 million in net book value at the time of reassessment in February 2011. Since leasehold improvements are typically depreciated over the lesser of the assets' useful life or the remaining lease period, the extension of contracted facilities leases through 2020 necessitated a change in our estimate of depreciable lives on leasehold improvements. While some lives have been shortened under this reassessment with the vacating of a portion of our facilities, the majority of depreciable lives have been extended up to as much as 5 years from the assets' in service date, in accordance with our leasehold improvements' standard useful lives. The net effect of this reassessment is lower monthly depreciation being recognized on leasehold improvements over a longer period of time. These changes' net effect on depreciation expense recognized is not expected to be material on a quarterly or annual basis.

Intangible Assets

Intangible assets consisted of the following (in thousands):

 

     September 30, 2011      December 31, 2010  
     Gross Carrying
Amount
     Accumulated
Amortization
    Net Carrying
Amount
     Gross Carrying
Amount
     Accumulated
Amortization
    Net Carrying
Amount
 

Customer relationships

   $ 3,098       $ (3,016   $ 82       $ 3,098       $ (2,943   $ 155   

Developed and core technology

     1,534         (1,395     139         1,534         (1,212     322   

Noncompete agreements

     90         (90     —           90         (90     —     

Intellectual property

     20,244         (3,093     17,151         20,244         (563     19,681   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 
   $ 24,966       $ (7,594   $ 17,372       $ 24,966       $ (4,808   $ 20,158   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Amortization expense for intangible assets totaled $2.8 million and $366,000 for the nine months ended September 30, 2011 and 2010, respectively. Amortization expense for intangible assets totaled $928,000 and $88,000 for the three months ended September 30, 2011 and 2010, respectively.