Basis of Presentation and Summary of Significant Accounting Policies (Tables)
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3 Months Ended |
Mar. 31, 2022 |
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):
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Three months ended |
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March 31, |
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2022 |
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2021 |
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Royalties |
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|
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Kyprolis |
$ |
4,622 |
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|
$ |
4,287 |
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Evomela |
2,701 |
|
|
2,333 |
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|
|
|
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Teriparatide injection |
2,911 |
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|
16 |
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|
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Rylaze |
1,649 |
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|
— |
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Other |
1,812 |
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|
476 |
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$ |
13,695 |
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$ |
7,112 |
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Captisol |
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Captisol - Core |
$ |
6,226 |
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$ |
1,253 |
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Captisol - COVID(1)
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5,896 |
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30,019 |
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$ |
12,122 |
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$ |
31,272 |
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Contract revenue |
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Service Revenue |
$ |
5,146 |
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$ |
5,462 |
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License Fees |
3,086 |
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|
1,043 |
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Milestone |
9,089 |
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|
8,417 |
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Other |
2,555 |
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|
1,844 |
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$ |
19,876 |
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$ |
16,766 |
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Total |
$ |
45,693 |
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$ |
55,150 |
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(1) Captisol - COVID represents revenue on Captisol supplied for use in formulation with remdesivir, an antiviral treatment for COVID-19.
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Schedule of Short-Term Investments |
Our short-term investments consist of the following at March 31, 2022 and December 31, 2021 (in thousands):
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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 |
|
March 31, 2022 |
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Bank deposits |
$ |
6,231 |
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|
$ |
— |
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$ |
(50) |
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$ |
6,181 |
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Corporate bonds |
4,899 |
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— |
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(84) |
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4,815 |
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Commercial paper |
— |
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— |
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|
— |
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|
— |
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Corporate equity securities |
5,807 |
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|
344 |
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(3,043) |
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|
3,108 |
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Mutual fund |
152,253 |
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— |
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(854) |
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|
151,399 |
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US government securities |
3,245 |
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— |
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(74) |
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|
3,171 |
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Warrants |
— |
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|
187 |
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— |
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|
187 |
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$ |
172,435 |
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$ |
531 |
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$ |
(4,105) |
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$ |
168,861 |
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Viking common stock |
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|
20,145 |
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Total short-term investments |
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$ |
189,006 |
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December 31, 2021 |
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Bank deposits |
$ |
63,389 |
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$ |
13 |
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$ |
(21) |
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$ |
63,381 |
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Corporate bonds |
29,308 |
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17 |
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(38) |
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29,287 |
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Commercial paper |
36,008 |
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2 |
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(12) |
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35,998 |
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Corporate equity securities |
5,807 |
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|
402 |
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(2,027) |
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|
4,182 |
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Mutual fund |
152,136 |
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— |
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(249) |
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|
151,887 |
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US government securities |
5,577 |
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— |
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(23) |
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|
5,554 |
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Warrants |
— |
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|
408 |
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— |
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|
408 |
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$ |
292,225 |
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$ |
842 |
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$ |
(2,370) |
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$ |
290,697 |
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Viking common stock |
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|
30,889 |
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Total short-term investments |
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$ |
321,586 |
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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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March 31, 2022 |
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Amortized Cost |
|
Fair Value |
Within one year |
$ |
10,095 |
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$ |
10,011 |
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After one year through five years |
6,523 |
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|
6,398 |
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Total |
$ |
16,618 |
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$ |
16,409 |
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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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March 31, |
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December 31, |
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2022 |
|
2021 |
Indefinite-lived intangible assets |
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Goodwill |
$ |
181,206 |
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$ |
181,206 |
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Definite lived intangible assets |
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Complete technology |
281,097 |
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|
280,617 |
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Less: accumulated amortization |
(82,861) |
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|
(78,991) |
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Trade name |
2,642 |
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|
2,642 |
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Less: accumulated amortization |
(1,477) |
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|
(1,444) |
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Customer relationships |
40,700 |
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|
40,700 |
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Less: accumulated amortization |
(18,934) |
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|
(18,267) |
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Contractual relationships |
362,000 |
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|
362,000 |
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Less: accumulated amortization |
(43,460) |
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|
(36,217) |
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Total goodwill and other identifiable intangible assets, net |
$ |
720,913 |
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$ |
732,246 |
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Schedule of Commercial License Rights |
Commercial license rights consist of the following (in thousands):
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March 31, 2022 |
|
December 31, 2021 |
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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 |
|
$ |
17,696 |
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|
$ |
(9,456) |
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$ |
8,240 |
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$ |
17,696 |
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$ |
(9,461) |
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$ |
8,235 |
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Selexis and Dianomi |
|
10,602 |
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(8,721) |
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|
1,881 |
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|
10,602 |
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|
(8,727) |
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|
1,875 |
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Total |
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$ |
28,298 |
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$ |
(18,177) |
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$ |
10,121 |
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$ |
28,298 |
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$ |
(18,188) |
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$ |
10,110 |
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(1) Amounts represent accumulated amortization to principal of $11.7 million and credit loss adjustments of $6.5 million as of March 31, 2022.
(2) Amounts represent accumulated amortization to principal of $11.7 million and credit loss adjustments of $6.5 million as of December 31, 2021.
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Schedule of Accrued Liabilities |
Accrued liabilities consist of the following (in thousands):
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March 31, |
|
December 31, |
|
2022 |
|
2021 |
Compensation |
$ |
3,620 |
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|
$ |
6,532 |
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Professional fees |
3,974 |
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|
2,046 |
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Amounts owed to former licensees |
2,677 |
|
|
630 |
|
Royalties owed to third parties |
— |
|
|
149 |
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Return reserve |
— |
|
|
2,420 |
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Acquisition related liabilities |
— |
|
|
1,000 |
|
Subcontractor |
1,757 |
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|
1,759 |
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Supplier |
1,697 |
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|
848 |
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Accrued interest |
394 |
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|
291 |
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Other |
1,758 |
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|
1,904 |
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Total accrued liabilities |
$ |
15,877 |
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|
$ |
17,579 |
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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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March 31, |
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2022 |
|
2021 |
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SBC - Research and development expenses |
$ |
3,914 |
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$ |
3,939 |
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SBC - General and administrative expenses |
5,130 |
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|
4,466 |
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$ |
9,044 |
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$ |
8,405 |
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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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March 31, |
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2022 |
|
2021 |
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Risk-free interest rate |
1.6% |
|
0.5% |
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Dividend yield |
— |
|
— |
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Expected volatility |
50% |
|
63% |
|
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Expected term (years) |
4.7 |
|
5 |
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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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March 31, |
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2022 |
|
2021 |
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Weighted average shares outstanding: |
16,824 |
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|
16,435 |
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Dilutive potential common shares: |
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Restricted stock |
— |
|
|
112 |
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Stock options |
— |
|
|
701 |
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Shares used to compute diluted income per share |
16,824 |
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|
17,248 |
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Potentially dilutive shares excluded from calculation due to anti-dilutive effect |
6,001 |
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|
4,277 |
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