Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of estimated ranges of useful lives of property and equipment

Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization and depreciated using the straight-line method over their estimated useful lives as follows:


			Asset classification			Estimated useful life
			Laboratory equipment			5 years
			Computer equipment and software			3 to 5 years
			Office equipment and furniture			5 years
			Leasehold improvements			Lesser of useful life or lease term

Property and equipment, net consisted of the following (in thousands):


	December 31,
	2019		2018
Laboratory equipment ⁽¹⁾	$	23,561	$	21,328
Leasehold improvements	10,804		10,359
Computer equipment and software	3,016		3,954
Office equipment and furniture	1,461		1,272
Construction in progress ⁽²⁾	691		939
Property and equipment	39,533		37,852
Less: accumulated depreciation and amortization	(33,251)		(33,093)

Property and equipment, net	$	6,282	$	4,759

⁽¹⁾ Fully depreciated laboratory equipment with a cost of $1.0 million and $0.3 million were retired during the year ended December 31, 2019 and 2018, respectively.

⁽²⁾ Construction in progress includes equipment received but not yet placed into service pending installation.

Impact of adoption on financial statements

In accordance with ASC 606, the disclosure of the impact of adoption to our consolidated statements of operations and balance sheets was as follows (in thousands, except per share amounts):


	Year Ended December 31, 2018
	As reported		Adjustments		Balances without adoption of ASC 606
Revenues:
Product Revenue	$	25,590	$	(3,422)	$	22,168
Research and development revenue	35,004		(1,609)		33,395
Total revenues	60,594		(5,031)		55,563
Costs and operating expenses:
Cost of product revenue	12,620		(285)		12,335
Research and development	29,978		(196)		29,782
Selling, general and administrative	29,291		—		29,291
Total costs and operating expenses	71,889		(481)		71,408
Loss from operations	(11,295)		(4,550)		(15,845)
Interest income	671		—		671
Other expenses	(291)		—		(291)
Loss before income taxes	(10,915)		(4,550)		(15,465)
Provision for (benefit from) income taxes	(37)		—		(37)
Net loss	$	(10,878)	$	(4,550)	$	(15,428)

Net loss per share, basic and diluted	$	(0.21)	$	(0.09)	$	0.30

Weighted average common shares used in computing net loss per share, basic and diluted	52,205				52,205


	December 31, 2018
	As reported		Adjustments		Balances without adoption of ASC 606
Assets
Accounts receivable	$	11,551	$	(1,253)	$	10,298
Unbilled receivables, current	1,916		(1,916)		—
Contract assets	35		(35)		—
Inventories	589		1		590
Unbilled receivables, non-current	786		(786)		—
Other non-current assets	265		(42)		223
Liabilities
Other accrued liabilities	4,855		(520)		4,335
Deferred revenue - current	4,936		(1,574)		3,362
Deferred revenue - non-current	3,352		(1,445)		1,907
Stockholders' equity
Accumulated deficit	(330,474)		(492)		(330,966)

The following table shows the reconciliation of ROU assets and lease obligations, with balances reflecting the adoption of ASC 842, related to both operating leases and finance leases and gives effect to the modified retrospective adoption and effective date method under the lease guidance on January 1, 2019 (in thousands):


	Operating Leases		Finance Leases
Right-of-use assets, Balance at December 31, 2018	$	—	$	—
Changes in the period:
Right-of-use assets created upon adoption of ASC 842	26,617		493
Right-of-use assets, balance at January 1, 2019	$	26,617	$	493

Lease obligations, balance at December 31, 2018	$	—	$	—
Changes in the period:
Lease obligations created upon adoption of ASC 842	27,562		302
Lease obligations, balance at January 1, 2019	$	27,562	$	302