Basis of Presentation and Summary of Significant Accounting Policies (Tables)
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6 Months Ended |
Jun. 30, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
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Schedule of Revenue by Source |
The following table represents disaggregation of royalties, Captisol and contract revenue (in thousands):
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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2021 |
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2020 |
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2021 |
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2020 |
Royalties |
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Kyprolis |
$ |
5,440 |
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$ |
5,481 |
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$ |
9,727 |
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$ |
9,886 |
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Evomela |
2,193 |
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1,199 |
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4,526 |
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2,775 |
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Other |
983 |
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|
501 |
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1,475 |
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1,085 |
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$ |
8,616 |
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$ |
7,181 |
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$ |
15,728 |
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$ |
13,746 |
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Captisol |
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$ |
62,509 |
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$ |
24,468 |
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$ |
93,781 |
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$ |
45,577 |
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Contract revenue |
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Service Revenue |
$ |
7,360 |
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$ |
4,582 |
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$ |
12,822 |
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$ |
7,939 |
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License Fees |
1,050 |
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660 |
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2,093 |
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1,635 |
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Milestone |
3,600 |
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3,472 |
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12,017 |
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3,806 |
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Other |
1,540 |
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1,057 |
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3,384 |
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1,878 |
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$ |
13,550 |
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$ |
9,771 |
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$ |
30,316 |
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$ |
15,258 |
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Total |
$ |
84,675 |
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$ |
41,420 |
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$ |
139,825 |
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$ |
74,581 |
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Schedule of Short-Term Investments |
Our short-term investments consist of the following at June 30, 2021 and December 31, 2020 (in thousands):
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June 30, 2021 |
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December 31, 2020 |
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Amortized cost |
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Gross unrealized gains |
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Gross unrealized losses |
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Estimated fair value |
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Amortized cost |
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Gross unrealized gains |
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Gross unrealized losses |
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Estimated fair value |
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Bank deposits |
$ |
33,560 |
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$ |
13 |
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$ |
(2) |
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$ |
33,571 |
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$ |
84,120 |
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$ |
35 |
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$ |
(1) |
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$ |
84,154 |
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Corporate bonds |
25,965 |
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62 |
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(2) |
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26,025 |
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30,512 |
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99 |
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(1) |
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30,610 |
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Agency bonds |
2,500 |
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— |
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(1) |
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2,499 |
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4,499 |
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2 |
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— |
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4,501 |
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Commercial paper |
19,258 |
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12 |
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— |
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19,270 |
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45,459 |
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27 |
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(1) |
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45,485 |
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Corporate equity securities |
5,807 |
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172 |
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(310) |
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5,669 |
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4,466 |
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360 |
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(1,388) |
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3,438 |
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Mutual fund |
151,949 |
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53 |
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— |
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152,002 |
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151,512 |
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386 |
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— |
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151,898 |
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Treasury bill |
— |
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— |
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— |
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— |
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3,999 |
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— |
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— |
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3,999 |
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Warrants |
— |
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713 |
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— |
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|
713 |
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— |
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|
393 |
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— |
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|
393 |
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$ |
239,039 |
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$ |
1,025 |
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$ |
(315) |
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$ |
239,749 |
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$ |
324,567 |
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$ |
1,302 |
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$ |
(1,391) |
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$ |
324,478 |
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Viking common stock |
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40,223 |
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32,763 |
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Viking warrants |
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— |
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6,326 |
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Total short-term investments |
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$ |
279,972 |
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$ |
363,567 |
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Schedule of Available-for-Sale Debt Securities |
The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands):
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June 30, 2021 |
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Amortized Cost |
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Fair Value |
Within one year |
$ |
57,997 |
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$ |
58,050 |
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After one year through five years |
23,286 |
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23,316 |
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Total |
$ |
81,283 |
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$ |
81,366 |
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Schedule of Goodwill and Other Identifiable Intangible Assets |
Goodwill and other identifiable intangible assets consist of the following (in thousands):
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June 30, |
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December 31, |
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2021 |
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2020 |
Indefinite-lived intangible assets |
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Goodwill |
$ |
190,517 |
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$ |
189,662 |
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Definite lived intangible assets |
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Complete technology |
277,980 |
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277,740 |
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Less: accumulated amortization |
(71,276) |
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(63,600) |
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Trade name |
2,642 |
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2,642 |
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Less: accumulated amortization |
(1,378) |
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(1,312) |
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Customer relationships |
40,700 |
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40,700 |
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Less: accumulated amortization |
(16,932) |
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(15,597) |
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Contractual relationships |
362,000 |
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362,000 |
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Less: accumulated amortization |
(21,730) |
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(7,243) |
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Total goodwill and other identifiable intangible assets, net |
$ |
762,523 |
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$ |
784,992 |
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Schedule of Commercial License and Other Economic Rights |
Commercial license and other economic rights consist of the following (in thousands):
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June 30, 2021 |
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December 31, 2020 |
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Gross |
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Adjustments(1)
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Net |
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Gross |
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Adjustments(2)
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Net |
Aziyo and CorMatrix |
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$ |
17,696 |
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$ |
(9,470) |
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$ |
8,226
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$ |
17,696 |
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$ |
(9,588) |
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$ |
8,108
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Selexis and Dianomi |
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10,602 |
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(8,190) |
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2,412
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10,602 |
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(7,731) |
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2,871
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Total |
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$ |
28,298 |
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$ |
(17,660) |
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$ |
10,638
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$ |
28,298 |
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$ |
(17,319) |
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$ |
10,979
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(1) Amounts represent accumulated amortization to principal of $11.7 million and credit loss adjustments of $6.0 million as of June 30, 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.
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Schedule of Accrued Liabilities |
Accrued liabilities consist of the following (in thousands):
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June 30, |
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December 31, |
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2021 |
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2020 |
Compensation |
$ |
3,684 |
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$ |
8,810 |
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Professional fees |
977 |
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|
977 |
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Amounts owed to former licensees |
446 |
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421 |
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Royalties owed to third parties |
52 |
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|
693 |
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Return reserve |
105 |
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|
687 |
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Acquisition related liabilities |
1,500 |
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1,500 |
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Subcontractor |
— |
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|
733 |
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Supplier |
681 |
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|
604 |
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Accrued interest |
295 |
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|
464 |
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Other |
2,367 |
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3,641 |
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Total accrued liabilities |
$ |
10,107 |
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$ |
18,530 |
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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):
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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2021 |
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2020 |
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2021 |
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2020 |
SBC - Research and development expenses |
$ |
4,556 |
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$ |
3,019 |
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$ |
8,495 |
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$ |
5,416 |
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SBC - General and administrative expenses |
5,660 |
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4,340 |
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10,126 |
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7,596 |
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$ |
10,216 |
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$ |
7,359 |
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$ |
18,621 |
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$ |
13,012 |
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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:
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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2021 |
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2020 |
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2021 |
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2020 |
Risk-free interest rate |
0.9% |
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0.4% |
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0.5% |
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1.1% |
Dividend yield |
— |
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— |
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— |
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— |
Expected volatility |
54% |
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69% |
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62% |
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55% |
Expected term |
5.5 |
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5.1 |
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5.0 |
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4.8 |
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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):
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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2021 |
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2020 |
|
2021 |
|
2020 |
Weighted average shares outstanding: |
16,659 |
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|
16,055 |
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16,548 |
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16,292 |
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Dilutive potential common shares: |
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Restricted stock |
69 |
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40 |
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|
90 |
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— |
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Stock options |
444 |
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|
599 |
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|
572 |
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— |
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Shares used to compute diluted income per share |
17,172 |
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16,694 |
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17,210 |
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16,292 |
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Potentially dilutive shares excluded from calculation due to anti-dilutive effect |
5,087 |
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|
7,832 |
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4,684 |
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|
8,988 |
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