XML 24 R12.htm IDEA: XBRL DOCUMENT v3.19.2
Balance Sheet Components
6 Months Ended
Jun. 30, 2019
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components

5. Balance Sheet Components

Inventories

Inventories consisted of the following (in thousands):

 

 

June 30, 2019

 

 

December 31, 2018

 

Raw materials

 

$

13,480

 

 

$

279

 

Work in process

 

 

19,282

 

 

 

14,395

 

Finished goods

 

 

393

 

 

 

2,844

 

Total inventories

 

$

33,155

 

 

$

17,518

 

 

 

 

 

 

 

 

 

 

Balance Sheet Classification

 

 

 

 

 

 

 

 

Inventories

 

$

1,547

 

 

$

7,873

 

Inventories, noncurrent portion

 

 

31,608

 

 

 

9,645

 

Total inventories

 

$

33,155

 

 

$

17,518

 

 

We began capitalizing inventory for costs associated with Andexxa Gen 1 and Gen 2 supply upon FDA approval on May 3, 2018 and December 31, 2018, respectively. As of June 30, 2019 and December 31, 2018, long-term inventories of $31.6 million and $9.6 million, respectively, are classified as inventories, noncurrent portion, as these inventories are not expected to be sold within the next twelve months, and the amount is deemed recoverable.

 

As of June 30, 2019 and December 31, 2018, we have made prepayments to manufacturers for the purchase of inventories. These are classified as short and long-term assets based on when the inventories are expected to be utilized in the manufacturing process and/or sold within the next twelve months. As of June 30, 2019 and December 31, 2018, long-term prepaid manufacturing of $7.8 million and $10.9 million, respectively, are classified as prepaid and other long-term assets as these inventories are not expected to be utilized in the manufacturing process and/or sold within the next twelve months.

We recorded an excess and obsolescence inventory charge to cost of sales of $3.8 million during the six months ended June 30, 2019. In developing the estimate for inventory reserve, we used estimates of demand compared to shelf life. If it is determined that inventory utilization will further diminish based on estimates of demand, additional inventory write-downs may be required.

Accrued and Other Liabilities

Accrued and other liabilities consist of the following (in thousands):

 

 

 

June 30, 2019

 

 

December 31, 2018

 

Manufacturing related

 

$

7,280

 

 

$

5,465

 

Compensation and employee benefits

 

 

14,217

 

 

 

10,794

 

Current portion of lease liability

 

 

3,004

 

 

 

 

Others

 

 

8,741

 

 

 

6,051

 

Total accrued and other liabilities

 

$

33,242

 

 

$

22,310