Annual report pursuant to Section 13 and 15(d)

Balance Sheets and Statements of Operations Details

v2.4.0.6
Balance Sheets and Statements of Operations Details
12 Months Ended
Dec. 31, 2012
Balance Sheets Details [Abstract]  
Balance Sheets and Statements of Operations Details
Balance Sheets and Statements of Operations Details
Cash Equivalents, Marketable Securities and Other Investments
At December 31, 2012, cash equivalents, marketable securities and other investments consisted of the following (in thousands): 
 
December 31, 2012
 
 
 
Adjusted Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Average
Contractual
Maturities
 
 
 
(in days)
Money market funds
$
24,789

 
$

 
$

 
$
24,789

 
n/a
Commercial paper
1,499

 
1

 

 
1,500

 
70
Corporate bonds (unamortized cost)
9,512

 
10

 

 
9,522

 
156
U.S. Treasury obligations (unamortized cost)
5,511

 
5

 

 
5,516

 
262
Common shares of CO2 Solutions
563

 
47

 

 
610

 
n/a
Total
$
41,874

 
$
63

 
$

 
$
41,937

 
 

The total cash and cash equivalents balance of $32.0 million as of December 31, 2012 was comprised of money market funds of $24.8 million and cash of $7.2 million held with major financial institutions worldwide. At December 31, 2012, we had no marketable security in an unrealized loss position.
At December 31, 2011, cash equivalents, marketable securities and other investments consisted of the following (in thousands): 
 
December 31, 2011
 
Adjusted Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Average
Contractual
Maturities
 
 
 
(in days)
Money market funds
$
18,866

 
$

 
$

 
$
18,866

 
n/a
Commercial paper
1,999

 

 

 
1,999

 
55
Corporate bonds (unamortized cost)
30,908

 
29

 
(45
)
 
30,892

 
270
U.S. Treasury obligations (unamortized cost)
998

 
4

 

 
1,002

 
274
Government-sponsored enterprise securities
3,003

 
12

 

 
3,015

 
373
Common shares of CO2 Solutions
1,316

 

 
(155
)
 
1,161

 
n/a
Total
$
57,090

 
$
45

 
$
(200
)
 
$
56,935

 
 

The total cash and cash equivalents balance of $25.8 million as of December 31, 2011 was comprised of money market funds of $18.9 million and $6.9 million held as cash primarily with major financial institutions in North America. At December 31, 2011, we had 14 marketable securities, including corporate bonds and government-sponsored enterprise securities, in a loss position for less than 12 months with an aggregated unrealized loss of $46,000 and an aggregated fair value of $18.5 million.
Inventories
Inventories, net consisted of the following (in thousands): 
 
December 31,
 
2012
 
2011
Raw materials
$
588

 
$
2,779

Work in process
52

 
54

Finished goods
662

 
1,655

Total inventories
$
1,302

 
$
4,488


Property and Equipment, net
Property and equipment consisted of the following (in thousands): 
 
December 31,
 
2012
 
2011
Laboratory equipment
$
33,776

 
$
34,903

Leasehold improvements
4,388

 
13,058

Computer equipment and software
11,099

 
4,671

Office equipment and furniture
1,531

 
1,319

Construction in progress (1)
28

 
1,972

 
50,822

 
55,923

Less: accumulated depreciation and amortization
(34,172
)
 
(31,747
)
Property and equipment, net
$
16,650

 
$
24,176

(1)
Construction in progress also 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): 
 
December 31, 2012
 
December 31, 2011
 
 
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Weighted-
Average
Amortization
Period
 
 
 
 
 
 
 
 
 
(years)
Customer relationships
$
3,098

 
$
(3,098
)
 
$

 
$
3,098

 
$
(3,040
)
 
$
58

 
5
Developed and core technology
1,534

 
(1,534
)
 

 
1,534

 
(1,457
)
 
77

 
5
Maxygen intellectual property
20,244

 
(7,310
)
 
12,934

 
20,244

 
(3,937
)
 
16,307

 
6
Total
$
24,876

 
$
(11,942
)
 
$
12,934

 
$
24,876

 
$
(8,434
)
 
$
16,442

 
6

The estimated amortization expense to be charged to research and development through the year ending December 31, 2016 is as follows at December 31, 2012 (in thousands):
Year ending December 31:
Total
2013
$
3,374

2014
3,374

2015
3,374

2016
2,812

2017

 
$
12,934


Goodwill
There were no changes in the carrying value of goodwill during 2012, 2011 and 2010.
Interest Expense and Other, Net
Interest expense and other, net consisted of the following (in thousands): 
 
Years Ended December 31,
 
2012
 
2011
 
2010
Interest expense
$

 
$

 
$
529

Foreign exchange losses
348

 
706

 
314

Re-measurement of redeemable convertible preferred stock warrant liabilities

 

 
677

Other
(22
)
 
(31
)
 
(321
)
Interest expense and other, net
$
326

 
$
675

 
$
1,199