Quarterly report pursuant to Section 13 or 15(d)

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

v3.21.1
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Revenue by Source
The following table represents disaggregation of royalties, Captisol and contract revenue (in thousands):

Three months ended
March 31,
2021 2020
Royalties
Kyprolis $ 4,287  $ 4,405 
Evomela 2,333  1,576 
Other 492  584 
$ 7,112  $ 6,565 
Captisol $ 31,272  $ 21,109 
Contract revenue
Service Revenue $ 5,462  $ 3,357 
License Fees 1,043  975 
Milestone 8,417  334 
Other 1,844  821 
$ 16,766  $ 5,487 
Total $ 55,150  $ 33,161 
Schedule of Short-Term Investments
Our short-term investments consist of the following at March 31, 2021 and December 31, 2020 (in thousands):
March 31, 2021 December 31, 2020
Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value
     Bank deposits $ 51,232  $ 25  $ (4) $ 51,253  $ 84,120  $ 35  $ (1) $ 84,154 
     Corporate bonds 25,853  72  (8) 25,917  30,512  99  (1) 30,610 
     Agency bonds 4,501  —  (4) 4,497  4,499  —  4,501 
     Commercial paper 19,815  —  19,824  45,459  27  (1) 45,485 
     Corporate equity securities 4,456  3,736  —  8,192  4,466  360  (1,388) 3,438 
     Mutual fund 151,830  53  —  151,883  151,512  386  —  151,898 
     Treasury bill —  —  —  —  3,999  —  —  3,999 
     Warrants —  1,422  —  1,422  —  393  —  393 
$ 257,687  $ 5,317  $ (16) $ 262,988  $ 324,567  $ 1,302  $ (1,391) $ 324,478 
     Viking common stock 44,366  32,763 
     Viking warrants —  6,326 
Total short-term investments $ 307,354  $ 363,567 
Schedule of Available-for-Sale Debt Securities
The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands):

March 31, 2021
Amortized Cost Fair Value
Within one year $ 77,913  $ 77,981 
After one year through five years 23,488  23,509 
Total $ 101,401  $ 101,490 
Schedule of Goodwill and Other Identifiable Intangible Assets
Goodwill and other identifiable intangible assets consist of the following (in thousands):
March 31, December 31,
2021 2020
Indefinite-lived intangible assets
     Goodwill $ 190,515  $ 189,662 
Definite lived intangible assets
     Complete technology 277,980  277,740 
          Less: accumulated amortization (67,441) (63,600)
     Trade name 2,642  2,642 
          Less: accumulated amortization (1,345) (1,312)
     Customer relationships 40,700  40,700 
          Less: accumulated amortization (16,264) (15,597)
     Contractual relationships 362,000  362,000 
          Less: accumulated amortization (14,487) (7,243)
Total goodwill and other identifiable intangible assets, net $ 774,300  $ 784,992 
Schedule of Commercial License and Other Economic Rights
Commercial license and other economic rights consist of the following (in thousands):
March 31, 2021 December 31, 2020
Gross
Adjustments(1)
Net Gross
Adjustments(2)
Net
Aziyo and CorMatrix $ 17,696  $ (9,530) $ 8,166  $ 17,696  $ (9,588) $ 8,108 
Selexis and Dianomi 10,602  (8,317) 2,285  10,602  (7,731) 2,871 
     Total $ 28,298  $ (17,847) $ 10,451  $ 28,298  $ (17,319) $ 10,979 

(1) Amounts represent accumulated amortization to principal of $11.9 million and credit loss adjustments of $6.0 million as of March 31, 2021.
(2) Amounts represent accumulated amortization to principal of $11.3 million and credit loss adjustments of $6.0 million as of December 31, 2020.
Schedule of Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
March 31, December 31,
2021 2020
Compensation $ 3,347  $ 8,810 
Professional fees 958  977 
Amounts owed to former licensees 468  421 
Royalties owed to third parties 102  693 
Return reserve 682  687 
Acquisition related liabilities 1,500  1,500 
Subcontractor 1,034  733 
Supplier 788  604 
Accrued interest 1,086  464 
Other 2,145  3,641 
     Total accrued liabilities $ 12,110  $ 18,530 
Schedule of Accounting for Share-Based Compensation The following table summarizes share-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
March 31,
2021 2020
SBC - Research and development expenses $ 3,939  $ 2,397 
SBC - General and administrative expenses 4,466  3,256 
$ 8,405  $ 5,653 
Schedule 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
March 31,
2021 2020
Risk-free interest rate 0.5% 1.4%
Dividend yield
Expected volatility 63% 47%
Expected term 5.0 4.7
Schedule of Computation of Basic and Diluted Earnings per Share
The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in thousands):
Three months ended
March 31,
2021 2020
Weighted average shares outstanding: 16,435  16,529 
Dilutive potential common shares:
     Restricted stock 112  — 
     Stock options 701  — 
Shares used to compute diluted income per share 17,248  16,529 
Potentially dilutive shares excluded from calculation due to anti-dilutive effect 4,277  10,144