Quarterly report pursuant to Section 13 or 15(d)

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

v3.7.0.1
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of investment categories
The Company's investments consist of the following at June 30, 2017 and December 31, 2016 (in thousands):
 
June 30, 2017
 
December 31, 2016
 
Amortized cost
 
Gross unrealized
gains
 
Gross unrealized
losses
 
Estimated
fair value
 
Amortized cost
 
Gross unrealized
gains
 
Gross unrealized
losses
 
Estimated
fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 


 
 
 
 
 
 
 
 
     Bank deposits
$
55,847

 
$
12

 
$
(9
)
 
$
55,850

 
$
40,715

 
$
19

 
$

 
$
40,734

     Corporate bonds
30,043

 
2

 
(24
)
 
30,021

 
11,031

 

 
(5
)
 
11,026

     Commercial paper
13,948

 

 
(3
)
 
13,945

 
33,074

 
2

 
(9
)
 
33,067

     Agency bonds

 

 

 

 
7,294

 
1

 

 
7,295

     U.S Government Bonds
8,474

 

 
(8
)
 
8,466

 
7,508

 

 
(1
)
 
7,507

     Municipal Bonds
1,784

 

 

 
1,784

 
19,624

 

 
(11
)
 
19,613

     Corporate equity securities
287

 
2,051

 

 
2,338

 
1,512

 
1,542

 

 
3,054

 
$
110,383

 
$
2,065

 
$
(44
)
 
$
112,404

 
$
120,758

 
$
1,564

 
$
(26
)
 
$
122,296

Summary of goodwill and other identifiable intangible assets
Goodwill and other identifiable intangible assets consist of the following (in thousands):
 
June 30,
 
December 31,
 
2017
 
2016
Indefinite lived intangible assets
 
 
 
     IPR&D
$
12,246

 
$
12,246

     Goodwill
72,207

 
72,207

Definite lived intangible assets
 
 
 
     Complete technology
182,577

 
182,577

          Less: Accumulated amortization
(17,407
)
 
(12,792
)
     Trade name
2,642

 
2,642

          Less: Accumulated amortization
(850
)
 
(784
)
     Customer relationships
29,600

 
29,600

          Less: Accumulated amortization
(9,524
)
 
(8,784
)
Total goodwill and other identifiable intangible assets, net
$
271,491

 
$
276,912

Schedule of commercial license rights
Commercial license rights consist of the following (in thousands):

 
June 30,
 
December 31,
 
2017
 
2016
CorMatrix
$
14,431

 
$
17,284

Selexis
8,531

 
8,537

 
22,962

 
25,821

Summary of accrued liabilities
Accrued liabilities consist of the following (in thousands):
 
June 30,
 
December 31,
 
2017
 
2016
Compensation
$
1,878

 
$
2,603

Professional fees
448

 
829

Amounts owed to former licensees
853

 
899

Royalties owed to third parties
908

 
942

Other
1,238

 
1,124

     Total accrued liabilities
$
5,325

 
$
6,397

Schedule for accounting for share-based compensation
The following table summarizes stock-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands):
 
Three months ended
 
Six months ended
 
June 30,
 
June 30,
 
2017
 
2016
 
2017
 
2016
Stock-based compensation expense as a component of:
 
 
 
 
 
 
 
Research and development expenses
$
1,928

 
$
2,089

 
$
5,867

 
$
3,674

General and administrative expenses
2,696

 
2,558

 
4,802

 
5,092

 
$
4,624

 
$
4,647

 
$
10,669

 
$
8,766

Summary of fair-value options awarded to employees and directors
The fair-value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions:
 
Three months ended
 
Six months ended
 
June 30,
 
June 30,
 
2017
 
2016
 
2017
 
2016
Risk-free interest rate
2.1%
 
1.7%
 
2.1%
 
1.5%
Dividend yield
 
 
 
Expected volatility
47%
 
49%
 
47%
 
50%
Expected term
6.5
 
6.7
 
6.8
 
6.6
Summary of computation of basic and diluted net income (loss) per share
The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share:
 
Three months ended
 
Six months ended
 
June 30,
 
June 30,
 
2017
 
2016
 
2017
 
2016
Weighted average shares outstanding:
21,012,611

 
20,831,809

 
20,974,738

 
20,765,053

Dilutive potential common shares:
 
 
 
 
 
 
 
Restricted stock
156,054

 

 
170,900

 

     Stock options
967,533

 

 
961,021

 

     2019 Convertible Senior Notes
1,079,702

 

 
1,010,505

 

Shares used to compute diluted income per share
23,215,900

 
20,831,809

 
23,117,164

 
20,765,053

Potentially dilutive shares excluded from calculation due to anti-dilutive effect
3,811,813

 

 
3,761,440