XML 30 R26.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Assets and Liabilities Measured at Fair Value on Recurring Basis
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018 are as follows:
 
($ in thousands)
      Fair Value Measurements at Reporting Date Using 
Description
  Balance as of
December 31,
2019		   Quoted Prices in
Active Markets for
Identical
Assets/Liabilities
(Level 1)		   Significant Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
Cash equivalents
  $68,031   $68,031   $—     $—   
  
 
 
   
 
 
   
 
 
   
 
 
 
($ in thousands)
      Fair Value Measurements at Reporting Date Using 
Description
  Balance as of
December 31,
2018		   Quoted Prices in
Active Markets for
Identical
Assets/Liabilities
(Level 1)		   Significant Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
Cash equivalents
  $24,437   $24,437   $—     $—   
  
 
 
   
 
 
   
 
 
   
 
 
 
Impact of Topic 606 Adoption on Financial Statements
Impact of Topic 606 Adoption
As a result of adopting ASC 606, the Company recorded an $8.1 million adjustment to the opening balance of accumulated deficit in the first quarter of 2018 as a result of the treatment of the
up-front
consideration received in July 2015 under ASC
605-25
versus ASC 606. Refer below for a summary of the amount by which each financial statement line item was affected by the impact of the cumulative adjustment:
 
($ in thousands)
  Impact of Topic 606 Adoption
on the Balance Sheet
as of January 1, 2018		 
Description
  As reported under
Topic 606		   Adjustments   Balances without
adoption of
Topic 606		 
Contract liability, current portion
  $622   $(5,767)   $6,389 
Contract liability, net of current portion
  $49,037   $13,898   $35,139 
Accumulated deficit
  $(720,573)   $(8,131)   $(712,442) 
($ in thousands)
  Impact of Topic 606 Adoption
on the Statement of Operations
for the Year Ended December 31, 2018		 
Description
  As reported under
Topic 606		   Adjustments   Balances without
adoption of
Topic 606		 
Collaboration revenue
  $146   $(4,732)   $4,878 
Net loss
  $(53,117)   $(4,732)   $(48,385) 
Net income (loss) applicable to common shareholders
  $137,246   $(4,732)   $141,978 
Net income (loss) per share - basic
  $0.96   $(0.03)   $0.99 
Net income (loss) per share - diluted
  $0.96   $(0.03)   $0.99 
($ in thousands)
  Impact of Topic 606 Adoption
on the Statement of Cash Flows
for the Year Ended December 31, 2018		 
Description
  As reported under
Topic 606		   Adjustments   Balances without
adoption of
Topic 606		 
Net loss
  $(53,117)   $(4,732)   $(48,385) 
Changes in contract liability
  $—     $—   $—   
Share-Based Compensation Expense Included in Statements of Operations The following table presents share-based compensation expense included in the Company’s Statements of Operations:
   
Year ended December 31,
 
(in thousands)
  
2019
   
2018
   
2017
 
Research and development
  $1,461   $1,683   $2,401 
General and administrative
   4,880    5,851    6,053 
  
 
 
   
 
 
   
 
 
 
Share based employee compensation expense before tax
  $6,341   $7,534   $8,454 
Income tax benefit
   —      —      —   
  
 
 
   
 
 
   
 
 
 
Net share based employee compensation expense
  $6,341   $7,534   $8,454 
  
 
 
   
 
 
   
 
 
 
Assumptions for Volatility, Expected life, Dividend Yield and Risk-free Interest Rate The assumptions for volatility, expected life, dividend yield and risk-free interest rate are presented in the table below:
   
2019
 
2018
 
2017
Weighted average risk-free interest rate
  
1.39 - 2.53%
 
2.55 - 3.06%
 
1.85 - 2.27%
Expected life in years
  5.75 - 6.25 6 6
Expected volatility
  
71.39 - 85.00%
 
80.75 - 84.71%
 
80.31 - 81.03%
Expected dividend yield
  0 0 0
Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method
Net
Income (
Loss
)
Per Share
Basic net loss per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is computed using the weighted-average number of common shares outstanding during the period, plus the dilutive effect of outstanding options and warrants, using the treasury stock method and the average market price of the Company’s common stock during the applicable period.
 
   For the Year Ended December 31, 
in thousands, except share and per share data
  2019   2018   2017 
Basic
      
Net loss
  $(117,796)   $(53,117)   $(54,323) 
Preferred stock dividends
   —      (16,998)    (18,938) 
Settlement of a related party relationship
   —      207,361    —   
  
 
 
   
 
 
   
 
 
 
Net income / (loss) applicable to common shareholders
  $(117,796)   $137,246   $(73,261) 
  
 
 
   
 
 
   
 
 
 
Weighted-average common shares outstanding
   167,952,114    143,508,674    136,938,264 
  
 
 
   
 
 
   
 
 
 
Earnings per share, basic
  $(0.70)   $0.96   $(0.53) 
  
 
 
   
 
 
   
 
 
 
Diluted
      
Net Loss
  $(117,796)   $(53,117)   $(54,323) 
Preferred stock dividends
   —      (16,998)    (18,938) 
Precigen license transaction
   —      207,361    —   
  
 
 
   
 
 
   
 
 
 
Net income / (loss) applicable to common shareholders
  $(117,796)   $137,246   $(73,261) 
  
 
 
   
 
 
   
 
 
 
Weighted-average common shares outstanding
   167,952,114    143,508,674    136,938,264 
Effect of dilutive securities
      
Stock options
   —      201,362    —   
Unvested restricted common stock
   —      124    —   
Warrants
   —      —      —   
  
 
 
   
 
 
   
 
 
 
Dilutive potential common shares
   —      201,486    —   
  
 
 
   
 
 
   
 
 
 
Shares used in calculating diluted earnings per share
   167,952,114    143,710,160    136,938,264 
  
 
 
   
 
 
   
 
 
 
Earnings per share, diluted
  $(0.70)   $0.96   $(0.53) 
  
 
 
   
 
 
   
 
 
 
Schedule of Reconciliation of Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows.
   
December 31,
 
(in thousands)
  
2019
   
2018
   
2017
 
Cash and cash equivalents
  $79,741   $61,729   $70,946 
Restricted cash included in prepaid expenses and other current assets
   —      —      388 
  
 
 
   
 
 
   
 
 
 
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows
  $79,741   $61,729   $71,334