Quarterly report pursuant to Section 13 or 15(d)

Significant Accounting Policies (Tables)

v3.5.0.2
Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of computation of basic and diluted net income (loss) per share
The following table presents the computation of basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share amounts) as restated for the impact of the $0.4 million adjustment to net income (loss) per share:

 
Three months ended
 
Six months ended
 
June 30,
 
June 30,
 
2016
 
2015
 
2016
 
2015
Net (loss) income from continuing operations
$
(6,170
)
 
$
23,564

 
$
(293
)
 
$
24,318

Net income from discontinued operations

 

 
731

 

Net (loss) income
$
(6,170
)
 
$
23,564

 
$
438

 
$
24,318

 
 
 
 
 
 
 
 
Shares used to compute basic income per share
20,831,809

 
19,725,410

 
20,765,053

 
19,668,183

Dilutive potential common shares:
 
 
 
 
 
 
 
Restricted stock

 
42,836

 

 
52,187

     Stock options

 
1,044,926

 

 
1,001,147

     2019 convertible senior notes

 
463,232

 

 
231,617

Shares used to compute diluted income per share
20,831,809

 
21,276,404

 
20,765,053

 
20,953,134

 
 
 
 
 
 
 
 
Basic per share amounts(2):
 
 
 
 
 
 
 
(Loss) income from continuing operations
$
(0.30
)
 
$
1.19

 
$
(0.01
)
 
$
1.24

Income from discontinued operations

 

 
0.04

 

Basic net (loss) income per share
$
(0.30
)
 
$
1.19

 
$
0.02

 
$
1.24

 
 
 
 
 
 
 
 
Diluted per share amounts(2):
 
 
 
 
 
 
 
(Loss) income from continuing operations
$
(0.30
)
 
$
1.11

 
$
(0.01
)
 
$
1.16

Income from discontinued operations

 

 
0.04

 

Diluted net (loss) income per share
$
(0.30
)
 
$
1.11

 
$
0.02

 
$
1.16

Summary of investment categories
The following table summarizes the various investment categories at June 30, 2016 and December 31, 2015 (in thousands):

 
Amortized cost
 
Gross unrealized
gains
 
Gross unrealized
losses
 
Estimated
fair value
June 30, 2016
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 


     Bank deposits
$
10,000

 
$
28

 
$

 
$
10,028

     Corporate bonds
23,210

 
174

 
(1
)
 
23,383

     Commercial paper
6,665

 
3

 

 
6,668

     Asset backed securities
695

 

 

 
695

     Corporate equity securities
1,700

 
3,129

 

 
4,829

 
$
42,270

 
$
3,334

 
$
(1
)
 
$
45,603

December 31, 2015
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 
 
     Bank deposits
$
43,043

 
$

 
$
(4
)
 
$
43,039

     Corporate bonds
41,238

 

 
(35
)
 
41,203

     Commercial paper
1,747

 

 

 
1,747

     Asset backed securities
10,020

 

 
(5
)
 
10,015

     Corporate equity securities
1,843

 
4,944

 

 
6,787

 
$
97,891

 
$
4,944

 
$
(44
)
 
$
102,791

Summary of goodwill and other identifiable intangible assets
Goodwill and other identifiable intangible assets consist of the following (in thousands):

 
June 30,
 
December 31,
 
2016
 
2015
Indefinite lived intangible assets
 
 
 
     Acquired IPR&D
$
12,556

 
$
12,556

     Goodwill
72,360

 
12,238

Definite lived intangible assets
 
 
 
     Complete technology
182,267

 
15,267

          Less: Accumulated amortization
(8,161
)
 
(3,762
)
     Trade name
2,642

 
2,642

          Less: Accumulated amortization
(718
)
 
(652
)
     Customer relationships
29,600

 
29,600

          Less: Accumulated amortization
(8,044
)
 
(7,304
)
Total goodwill and other identifiable intangible assets, net
$
282,502

 
$
60,585

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

 
June 30,
 
December 31,
 
2016
 
2015
CorMatrix
$
17,692

 
$

Selexis
8,602

 
8,602

 
26,294

 
8,602

Less: accumulated amortization
(153
)
 
(48
)
     Total commercial rights, net
$
26,141

 
$
8,554

Summary of property and equipment
Property and equipment is stated at cost and consists of the following (in thousands):

 
June 30,
 
December 31,
 
2016
 
2015
Lab and office equipment
$
1,063

 
$
2,248

Leasehold improvements
929

 
273

Computer equipment and software
692

 
632

 
2,684

 
3,153

Less accumulated depreciation and amortization
(1,503
)
 
(2,781
)
     Total property and equipment, net
$
1,181

 
$
372

Summary of other current assets
Other current assets consist of the following (in thousands):

 
June 30,
 
December 31,
 
2016
 
2015
Prepaid expenses
$
2,122

 
$
1,177

Other receivables
480

 
731

     Total other current assets
$
2,602

 
$
1,908

Summary of accrued liabilities
Accrued liabilities consist of the following (in thousands):

 
June 30,
 
December 31,
 
2016
 
2015
Compensation
$
1,463

 
$
1,711

Professional fees
828

 
726

Amounts owed to former licensees
852

 
915

Royalties owed to third parties
1,037

 
823

Other
771

 
1,222

     Total accrued liabilities
$
4,951

 
$
5,397

Summary of other long-term liabilities
Other long-term liabilities consist of the following (in thousands):

 
June 30,
 
December 31,
 
2016
 
2015
Deposits
$
42

 
$
268

Deferred rent
326

 

Other
30

 
29

     Total other long-term liabilities
$
398

 
$
297

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,
 
2016
 
2015
 
2016
 
2015
Stock-based compensation expense as a component of:
 
 
 
 
 
 
 
Research and development expenses
$
2,089

 
$
1,253

 
$
3,674

 
$
2,174

General and administrative expenses
2,558

 
2,507

 
5,092

 
4,501

 
$
4,647

 
$
3,760

 
$
8,766

 
$
6,675

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,
 
2016
 
2015
 
2016
 
2015
Risk-free interest rate
1.7%
 
1.7%
 
1.5%
 
1.8%
Dividend yield
 
 
 
Expected volatility
49%
 
58%
 
50%
 
58%
Expected term
6.7
 
6.6
 
6.6
 
6.6
Forfeiture rate
5.0%
 
8.5%
 
5.0%
 
8.5%