Annual report pursuant to Section 13 and 15(d)

Other Balance Sheet Details

v3.6.0.2
Other Balance Sheet Details
12 Months Ended
Dec. 31, 2016
Other Balance Sheet Details [Abstract]  
Other Balance Sheet Details
Balance Sheet Account Details

Short-term Investments
The following table summarizes the various investment categories at December 31, 2016 and 2015 (in thousands):
 
Cost
 
Gross unrealized
gains
 
Gross unrealized
losses
 
Estimated
fair value
December 31, 2016
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 
 
     Bank deposits
$
40,715

 
$
19

 
$

 
$
40,734

     Corporate bonds
11,031

 

 
(5
)
 
11,026

     Corporate equity securities
1,512

 
1,542

 

 
3,054

     Commercial paper
33,074

 
2

 
(9
)
 
33,067

     Agency bonds
7,294

 
1

 

 
7,295

     U.S. Government bonds
7,508

 

 
(1
)
 
7,507

     Municipal bonds
19,624

 

 
(11
)
 
19,613

 
$
120,758

 
$
1,564

 
$
(26
)
 
$
122,296

December 31, 2015
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 
 
     Bank deposits
$
43,043

 
$

 
$
(4
)
 
$
43,039

     Corporate bonds
41,238

 

 
(35
)
 
41,203

     Commercial paper
1,747

 

 

 
1,747

     Asset backed securities
10,020

 

 
(5
)
 
10,015

     Corporate equity securities
1,843

 
4,944

 

 
6,787

 
$
97,891

 
$
4,944

 
$
(44
)
 
$
102,791



Other current assets consist of the following (in thousands):
 
December 31,
 
2016
 
2015
Prepaid expenses
$
1,864

 
$
1,177

Other receivables
311

 
731

 
$
2,175

 
$
1,908



Property and equipment is stated at cost and consists of the following (in thousands):
 
December 31,
 
2016
 
2015
Lab and office equipment
$
1,067

 
$
2,248

Leasehold improvements
1,754

 
273

Computer equipment and software
569

 
632

 
3,390

 
3,153

Less accumulated depreciation and amortization
(1,571
)
 
(2,781
)
 
$
1,819

 
$
372


Depreciation of equipment is computed using the straight-line method over the estimated useful lives of the assets which range from three to ten years. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or their related lease term, whichever is shorter. Depreciation expense of $0.2 million, $0.2 million, and $0.3 million was recognized for the years ended December 31, 2016, 2015, and 2014, respectively and is included in operating expenses.

Goodwill and identifiable intangible assets consist of the following (in thousands):
 
December 31,
 
2016
 
2015
Indefinite lived intangible assets
 
 
 
     IPR&D
$
12,246

 
$
12,556

     Goodwill
72,207

 
12,238

Definite lived intangible assets
 
 
 
     Complete technology
182,577

 
15,267

          Less: Accumulated amortization
(12,792
)
 
(3,762
)
     Trade name
2,642

 
2,642

          Less: Accumulated amortization
(784
)
 
(652
)
     Customer relationships
29,600

 
29,600

          Less: Accumulated amortization
(8,784
)
 
(7,304
)
Total goodwill and other identifiable intangible assets, net
$
276,912

 
$
60,585



Amortization of finite lived intangible assets is computed using the straight-line method over the estimated useful life of the asset of 20 years. Amortization expense of $10.6 million, $2.4 million, and $2.4 million was recognized for the years ended December 31, 2016 and 2015, and 2014. Estimated amortization expense for the years ending December 31, 2017 through 2021 is $10.6 million per year. For each of the years ended December 31, 2016, 2015, and 2014, there was no impairment of intangible assets with finite lives.

Commercial license rights consist of the following (in thousands):
 
December 31,
 
December 31,
 
2016
 
2015
CorMatrix
$
17,696

 
$

Selexis
8,602

 
8,602

 
26,298

 
8,602

Less: accumulated amortization
(477
)
 
(48
)
     Total commercial rights, net
$
25,821

 
$
8,554



Accrued liabilities consist of the following (in thousands):
 
December 31,
 
2016
 
2015
Compensation
$
2,603

 
$
1,711

Legal
829

 
726

Amounts owed to former licensees
899

 
915

Royalties owed to third parties
942

 
823

Other
1,124

 
1,230

 
$
6,397

 
$
5,405



In connection with the acquisition of CyDex in January 2011, we issued a series of CVRs and also assumed certain contingent liabilities. We may be required to make additional payments upon achievement of certain clinical and regulatory milestones to the CyDex shareholders and former license holders. We pay CyDex shareholders, through 2016, 20% of all CyDex-related revenue, but only to the extent that, and beginning only when, CyDex-related revenue for the year exceeds $15.0 million; plus an additional 10% of all CyDex-related revenue recognized during such year, but only to the extent, and beginning only when aggregate CyDex-related revenue for such year exceeds $35.0 million.

In connection with the acquisition of Metabasis in January 2010, we entered into four CVR agreements with Metabasis shareholders. The CVRs entitle the holders to cash payments as frequently as every six months as proceeds are received by us upon the sale or licensing of any of the Metabasis drug development programs and upon the achievement of specified milestones.
  
Contingent liabilities consist of the following (in millions):
 
December 31, 2014
Payments
Fair Value Adjustment
December 31, 2015
Payments
Fair Value Adjustment
December 31, 2016
Cydex
$
11.5

$
(5.8
)
$
3.8

$
9.5

(6.2
)
$
3.3

$
6.6

Metabasis
3.7

(0.9
)
1.2

4.0

(2.6
)
0.1

1.5

Total
15.2

(6.7
)
5.0

13.5

(8.8
)
3.4

8.1


Other long-term liabilities consist of the following (in thousands):
 
December 31,
 
2016
 
2015
Deferred rent
$
357

 
$

Deposits
43

 
268

Other
287

 
29

 
$
687

 
$
297