Basis of Presentation and Summary of Significant Accounting Policies (Tables)
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3 Months Ended |
Mar. 31, 2023 |
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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2023 |
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2022 |
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Royalties |
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Kyprolis |
$ |
6,228 |
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|
$ |
4,622 |
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Evomela |
2,550 |
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|
2,701 |
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|
|
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Teriparatide injection |
3,500 |
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|
2,911 |
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Rylaze |
2,609 |
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|
1,649 |
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Other |
2,267 |
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|
1,549 |
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$ |
17,154 |
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$ |
13,432 |
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Captisol |
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Captisol - Core |
$ |
10,622 |
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$ |
6,226 |
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Captisol - COVID(1)
|
— |
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5,896 |
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$ |
10,622 |
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$ |
12,122 |
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Contract revenue |
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License Fees |
114 |
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|
2,081 |
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Milestone |
15,300 |
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|
5,993 |
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Other |
789 |
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|
2,888 |
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$ |
16,203 |
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$ |
10,962 |
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Total |
$ |
43,979 |
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|
$ |
36,516 |
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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, 2023 and December 31, 2022 (in thousands):
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March 31, 2023 |
Amortized cost |
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Gross unrealized gains |
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Gross unrealized losses |
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Estimated fair value |
Bank deposits |
$ |
19,691 |
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$ |
3 |
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$ |
(26) |
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$ |
19,668 |
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Corporate bonds |
9,592 |
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|
63 |
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(37) |
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9,618 |
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Agency bonds |
979 |
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2 |
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— |
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|
981 |
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Commercial paper |
13,461 |
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2 |
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(9) |
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13,454 |
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Municipal bonds |
1,005 |
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— |
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(5) |
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|
1,000 |
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Corporate equity securities |
5,775 |
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— |
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(4,120) |
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|
1,655 |
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Bond fund |
82,678 |
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— |
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(807) |
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81,871 |
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US government securities |
6,243 |
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2 |
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(47) |
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|
6,198 |
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Warrants |
— |
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|
133 |
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— |
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|
133 |
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$ |
139,424 |
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$ |
205 |
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$ |
(5,051) |
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$ |
134,578 |
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Viking common stock |
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59,359 |
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Total short-term investments |
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$ |
193,937 |
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December 31, 2022 |
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Bank deposits |
$ |
5,012 |
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$ |
2 |
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$ |
(34) |
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$ |
4,980 |
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Corporate bonds |
6,701 |
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13 |
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(58) |
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6,656 |
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Commercial paper |
7,211 |
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3 |
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— |
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|
7,214 |
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Corporate equity securities |
5,807 |
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|
262 |
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(4,239) |
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|
1,830 |
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Bond fund |
81,815 |
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— |
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(1050) |
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|
80,765 |
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U.S. government securities |
2,232 |
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— |
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(70) |
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|
2,162 |
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Warrants |
— |
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|
135 |
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— |
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|
135 |
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$ |
108,778 |
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$ |
415 |
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$ |
(5,451) |
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$ |
103,742 |
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Viking common stock |
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63,122 |
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Total short-term investments |
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$ |
166,864 |
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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, 2023 |
|
Amortized Cost |
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Fair Value |
Within one year |
$ |
123,794 |
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$ |
123,681 |
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After one year through five years |
10,903 |
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|
10,962 |
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Total |
$ |
134,697 |
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$ |
134,643 |
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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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2023 |
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2022 |
Indefinite-lived intangible assets |
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Goodwill |
$ |
105,673 |
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$ |
105,673 |
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Definite lived intangible assets |
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Complete technology |
55,211 |
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|
55,211 |
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Less: accumulated amortization |
(23,450) |
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|
(22,560) |
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Trade name |
2,642 |
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|
2,642 |
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Less: accumulated amortization |
(1,610) |
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|
(1,577) |
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Customer relationships |
29,600 |
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|
29,600 |
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Less: accumulated amortization |
(18,043) |
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|
(17,670) |
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Contractual relationships |
362,000 |
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|
362,000 |
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Less: accumulated amortization |
(72,434) |
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|
(65,191) |
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Total goodwill and other identifiable intangible assets, net |
$ |
439,589 |
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$ |
448,128 |
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Schedule of Commercial License Rights |
Commercial license rights consist of the following (in thousands):
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March 31, 2023 |
|
December 31, 2022 |
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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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$ |
(9,122) |
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$ |
8,574 |
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$ |
17,696 |
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$ |
(9,538) |
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$ |
8,158 |
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Selexis and Dianomi |
|
10,602 |
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(8,745) |
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|
1,857 |
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10,602 |
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(8,578) |
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|
2,024 |
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Total |
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$ |
28,298 |
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$ |
(17,867) |
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$ |
10,431 |
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$ |
28,298 |
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$ |
(18,116) |
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$ |
10,182 |
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(1) Amounts represent accumulated amortization to principal of $11.4 million and credit loss adjustments of $6.5 million as of March 31, 2023.
(2) Amounts represent accumulated amortization to principal of $11.6 million and credit loss adjustments of $6.5 million as of December 31, 2022.
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Schedule of Accrued Liabilities |
Accrued liabilities consist of the following (in thousands):
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March 31, |
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December 31, |
|
2023 |
|
2022 |
Compensation |
$ |
1,729 |
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$ |
6,201 |
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Professional fees |
834 |
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|
662 |
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Amounts owed to former licensees |
45 |
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|
3,989 |
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Royalties owed to third parties |
7,700 |
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12 |
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Supplier |
678 |
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|
634 |
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Other |
3,991 |
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|
4,183 |
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Total accrued liabilities |
$ |
14,977 |
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$ |
15,681 |
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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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2023 |
|
2022(a)
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SBC - Research and development expenses |
$ |
1,707 |
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$ |
2,196 |
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SBC - General and administrative expenses |
4,224 |
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|
4,913 |
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$ |
5,931 |
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$ |
7,109 |
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(a) Prior period amounts have been retrospectively adjusted to reflect the effects of the Separation.
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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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2023 |
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2022 |
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Risk-free interest rate |
4.1% |
|
1.6% |
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Dividend yield |
— |
|
— |
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Expected volatility |
53% |
|
50% |
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Expected term (years) |
5.3 |
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4.7 |
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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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2023 |
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2022 |
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Weighted average shares outstanding: |
17,063 |
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|
16,824 |
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Dilutive potential common shares: |
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Restricted stock |
86 |
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— |
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Stock options |
341 |
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— |
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2023 convertible senior notes |
484 |
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— |
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Shares used to compute diluted income per share |
17,974 |
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|
16,824 |
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Potentially dilutive shares excluded from calculation due to anti-dilutive effect |
4,359 |
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|
6,001 |
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