Note 1 - Business and Basis of Presentation	3 Months Ended
Mar. 31, 2020
Notes to Financial Statements
Basis of Presentation and Significant Accounting Policies [Text Block]	1. Business and basis of presentation Description of business Oxford Immunotec Global PLC, or the Company, is a global, high-growth diagnostics company focused on developing and commercializing proprietary tests for immunology and infectious disease by leveraging the technological, product development, manufacturing, quality, regulatory, and sales and marketing capabilities it has developed over its seventeen year history. The Company’s proprietary T-SPOT. TB test utilizes its T-SPOT technology platform to test for tuberculosis, which is the leading cause of infectious disease death worldwide. Unaudited interim financial statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, for interim financial information and with the instructions to Form 10 -Q and Article 10 of Regulation S- X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the interim condensed consolidated financial statements reflect all adjustments, of a normal recurring nature, necessary for a fair statement of the financial position at March 31, 2020 , the results of operations for the three -month periods ended March 31, 2020 and 2019 and the cash flows for the three -month periods ended March 31, 2020 and 2019 . Interim results are not necessarily indicative of results for a full year. The consolidated balance sheet presented as of December 31, 2019 , has been derived from the Company's audited consolidated financial statements as of that date. The consolidated financial statements and notes included in this Quarterly Report should be read in conjunction with the 2019 consolidated financial statements and notes included in the Company’s Annual Report on Form 10 -K for the year ended December 31, 2019 , as filed with the Securities and Exchange Commission on March 6, 2020, or the 2019 Form 10 -K. Cash, cash equivalents, and restricted cash The Company considers all highly liquid investments purchased with maturities at acquisition of three months or less to be cash equivalents. Cash equivalents consist of amounts invested in money market funds and tri-party reverse repurchase agreements that are collateralized by U.S. Treasury and agency securities of at least 102% of the principal amount. The Company has a policy that the collateral has at least the prevailing credit rating of U.S. Government Treasuries and Agencies. In a tri-party reverse repurchase agreement, a third -party custodian bank is used to manage the exchange of funds and ensure that collateral received is maintained of at least 102% of the value of the reverse repurchase agreements on a daily basis thereby minimizing risk and exposure to both parties. The Company does not record an asset or liability as the Company is not permitted to sell or re-pledge the associated collateral. The reverse repurchase agreements have stated maturities of 90 days or less and are included in cash equivalents due to their high liquidity and relatively low risk. The Company holds bank accounts in the United States, the United Kingdom, Germany, Japan, China and South Korea. The Company maintains deposits in government insured financial institutions in excess of government insured limits. Management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. Restricted cash relates to collateral for procurement cards issued by a U.S. commercial bank. Software developed for internal use The Company accounts for the costs of software obtained or developed for internal use in accordance with Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, 350, Intangibles – Goodwill and Other , or ASC 350. Computer software development costs are expensed as incurred, except for internal use software costs that qualify for capitalization as described below and include the cost of computer software and costs incurred in developing features and functionality. These capitalized costs are included in property and equipment, net in the condensed consolidated balance sheets. The Company expenses costs incurred in the preliminary project and post implementation stages of software development and capitalizes costs incurred in the application development stage and costs associated with significant enhancements to existing internal use software applications. Software costs are amortized using the straight-line method over estimated useful lives commencing when the software project is ready for its intended use. Revenues The Company’s revenues include product and service revenues. Product revenue from diagnostic test kit sales and related accessories is typically recognized at a point in time based upon the amount of consideration to which the Company expects to be entitled. For sales made with variable consideration, such as discounts, refunds, incentives, or other similar items, changes to the transaction price will be re-assessed at each reporting period until a final outcome is determined. Service revenue is recorded based upon contractually established billing rates and recognized upon delivery of test results to the customer. See Note 2. Revenue for disaggregation of revenue by geography. For each arrangement that results in revenues, the Company first identifies all performance obligations. Then, in order to determine the transaction price, the Company estimates the amount of variable consideration at the outset of the contract either utilizing the expected value or most likely amount method, depending on the facts and circumstances relative to the contract. The Company constrains (reduces) the estimates of variable consideration such that there is only a remote possibility that a significant reversal of previously recognized revenue will occur. When determining if variable consideration should be constrained, management considers whether there are factors outside the Company’s control that could result in a significant reversal of revenue. In making these assessments, the Company considers the likelihood and magnitude of a potential reversal of revenue. These estimates are re-assessed each reporting period. For the three months ended March 31, 2020 , the Company had no material bad-debt expense and there were no material contract assets, contract liabilities or deferred contract costs recorded on the condensed consolidated balance sheet as of March 31, 2020 . The Company generally expenses sales commissions when incurred because the amortization period would be less than one year. Revenue expected to be recognized in any future year related to remaining performance obligations is not material. Taxes assessed by governmental authorities on revenue, including sales and value added taxes, are recorded on a net basis (excluded from revenue) in the consolidated statements of operations. Income taxes The Company calculates its interim income tax provision in accordance with ASC 270, Interim Reporting , and ASC 740, Accounting for Income Taxes . At the end of each interim period, the Company estimates its annual effective tax rate and applies that rate to its ordinary quarterly earnings to calculate the tax related to ordinary income. The tax effects for other items that are excluded from ordinary income are discretely calculated and recognized in the period in which they occur. The Company recorded income tax expense of $209,000 for the three months ended March 31, 2020, representing an effective income tax rate of ( 4.18 )%. The income tax expense for the three months ended March 31, 2020 was primarily related to discrete adjustments recorded in the period for an increase in valuation allowance on certain U.S state attributes and the write down of prepaid taxes. The Company’s effective income tax rate for the three months ended March 31, 2020 differs from the Company’s U.K statutory rate of 19%, primarily because the majority of its U.K. loss cannot be benefited due to the full valuation allowance position. The Company recorded an income tax benefit of $1.5 million for the three months ended March 31, 2019. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, was enacted in response to the COVID- 19 pandemic. The CARES Act, among other provisions, permits carryovers and carrybacks of net operating losses generated in 2018 through 2020 to offset 100% of taxable income. In addition, the CARES Act allows net operating losses incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company is currently evaluating the impact of the CARES Act, but at present does not expect it to have a material impact on its financial statements. The remainder of the significant accounting estimates and policies used in preparation of the condensed consolidated financial statements disclosed in Note 1. Description of business and significant accounting policies to the consolidated financial statements in the 2019 Form 10 -K remain unchanged. Recently a dopted a ccounting p ronouncements In January 2017, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2017 - 04, Intangibles – Goodwill and Other , or ASU 2017 - 04. ASU 2017 - 04 simplifies subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The Company adopted ASU 2017 - 04 as of January 1, 2020 on a prospective basis. The adoption of ASU 2017 - 04 has not had a material impact on the Company's results of operations, financial position or related disclosures. In August 2018, the FASB issued ASU 2018 - 13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, or ASU 2018 - 13, which modifies certain disclosure requirements on fair value measurements. The amendments regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty are required to be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments are required to be applied retrospectively to all periods presented upon their effective date. The Company adopted ASU 2018 - 13 as of January 1, 2020. The adoption of ASU 2018 - 13 has not had a material impact on the Company's disclosures. In August 2018, the FASB issued ASU No. 2018 - 15 , Intangibles—Goodwill and Other—Internal-Use Software: Customers Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , or ASU 2018 - 15, which aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted ASU 2018 - 15 as of January 1, 2020 using the prospective transition approach, which allows the Company to change the accounting method without restating prior periods or recording a cumulative adjustment. The adoption of ASU 2018 - 15 has not had a material impact on the Company's results of operations, financial position or related disclosures. In March 2019, the FASB issued ASU 2019 - 01, Leases (Topic 842 ) Codification Improvements , or ASU 2019 - 01, to clarify certain requirements of Accounting Standards Codification 842, Leases . The Company adopted ASU 2019 - 01 as of January 1, 2020. The adoption of ASU 2019 - 01 has not had a material impact on the Company's results of operations, financial position or related disclosures. Recently i ssued but not yet adopted a ccounting p ronouncements In June 2016, the FASB issued ASU 2016 - 13, Financial Instruments-Credit Losses , or ASU 2016 - 13. ASU 2016 - 13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. Under current U.S. GAAP, a company only considered past events and current conditions in measuring an incurred loss. Under ASU 2016 - 13, the information that a company must consider is broadened in developing an expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss. The new guidance is to be effective for smaller reporting companies for interim and annual periods beginning after December 15, 2022. Early adoption is permitted. The guidance is applied using a modified retrospective, or prospective approach, depending on a specific amendment. The Company is currently evaluating ASU 2016 - 13. In December 2019, the FASB issued ASU 2019 - 12, Simplifying the Accounting for Income Taxes , or ASU 2019 - 12, which includes amendments to simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC 740, Income Taxes , or ASC 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC 740 by clarifying and amending existing guidance. The new guidance will be effective for the Company for interim and annual periods beginning after December 15, 2020. Early adoption of the amendments is permitted. The Company is currently evaluating ASU 2019 - 12.

Business and basis of presentation

Description of business

Oxford Immunotec Global PLC, or the Company, is a global, high-growth diagnostics company focused on developing and commercializing proprietary tests for immunology and infectious disease by leveraging the technological, product development, manufacturing, quality, regulatory, and sales and marketing capabilities it has developed over its

seventeen

year history. The Company’s proprietary T-SPOT.

test utilizes its T-SPOT technology platform to test for tuberculosis, which is the leading cause of infectious disease death worldwide.

Unaudited interim financial statements

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, for interim financial information and with the instructions to Form

-Q and Article

of Regulation S-

Accordingly, they do

not

include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the interim condensed consolidated financial statements reflect all adjustments, of a normal recurring nature, necessary for a fair statement of the financial position at

March 31, 2020

, the results of operations for the

three

-month periods ended

March 31, 2020

and

2019

and the cash flows for the

three

-month periods ended

March 31, 2020

and

2019

. Interim results are

not

necessarily indicative of results for a full year.

The consolidated balance sheet presented as of

December 31, 2019

, has been derived from the Company's audited consolidated financial statements as of that date. The consolidated financial statements and notes included in this Quarterly Report should be read in conjunction with the

2019

consolidated financial statements and notes included in the Company’s Annual Report on Form

-K for the year ended

December 31, 2019

, as filed with the Securities and Exchange Commission on

March 6, 2020,

or the

2019

Form

-K.

Cash, cash equivalents, and restricted cash

The Company considers all highly liquid investments purchased with maturities at acquisition of

three

months or less to be cash equivalents. Cash equivalents consist of amounts invested in money market funds and tri-party reverse repurchase agreements that are collateralized by U.S. Treasury and agency securities of at least

102%

of the principal amount. The Company has a policy that the collateral has at least the prevailing credit rating of U.S. Government Treasuries and Agencies. In a tri-party reverse repurchase agreement, a

third

-party custodian bank is used to manage the exchange of funds and ensure that collateral received is maintained of at least

102%

of the value of the reverse repurchase agreements on a daily basis thereby minimizing risk and exposure to both parties. The Company does

not

record an asset or liability as the Company is

not

permitted to sell or re-pledge the associated collateral. The reverse repurchase agreements have stated maturities of

days or less and are included in cash equivalents due to their high liquidity and relatively low risk.

The Company holds bank accounts in the United States, the United Kingdom, Germany, Japan, China and South Korea. The Company maintains deposits in government insured financial institutions in excess of government insured limits. Management believes that the Company is

not

exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held.

Restricted cash relates to collateral for procurement cards issued by a U.S. commercial bank.

Software developed for internal use

The Company accounts for the costs of software obtained or developed for internal use in accordance with Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC,

350,

Intangibles – Goodwill and Other

, or ASC

350.

Computer software development costs are expensed as incurred, except for internal use software costs that qualify for capitalization as described below and include the cost of computer software and costs incurred in developing features and functionality. These capitalized costs are included in property and equipment, net in the condensed consolidated balance sheets. The Company expenses costs incurred in the preliminary project and post implementation stages of software development and capitalizes costs incurred in the application development stage and costs associated with significant enhancements to existing internal use software applications. Software costs are amortized using the straight-line method over estimated useful lives commencing when the software project is ready for its intended use.

Revenues

The Company’s revenues include product and service revenues. Product revenue from diagnostic test kit sales and related accessories is typically recognized at a point in time based upon the amount of consideration to which the Company expects to be entitled. For sales made with variable consideration, such as discounts, refunds, incentives, or other similar items, changes to the transaction price will be re-assessed at each reporting period until a final outcome is determined. Service revenue is recorded based upon contractually established billing rates and recognized upon delivery of test results to the customer. See Note

Revenue

for disaggregation of revenue by geography.

For each arrangement that results in revenues, the Company

first

identifies all performance obligations. Then, in order to determine the transaction price, the Company estimates the amount of variable consideration at the outset of the contract either utilizing the expected value or most likely amount method, depending on the facts and circumstances relative to the contract. The Company constrains (reduces) the estimates of variable consideration such that there is only a remote possibility that a significant reversal of previously recognized revenue will occur. When determining if variable consideration should be constrained, management considers whether there are factors outside the Company’s control that could result in a significant reversal of revenue. In making these assessments, the Company considers the likelihood and magnitude of a potential reversal of revenue. These estimates are re-assessed each reporting period.

For the

three

months ended

March 31, 2020

, the Company had

material bad-debt expense and there were

material contract assets, contract liabilities or deferred contract costs recorded on the condensed consolidated balance sheet as of

March 31, 2020

. The Company generally expenses sales commissions when incurred because the amortization period would be less than

one

year.

Revenue expected to be recognized in any future year related to remaining performance obligations is

not

material.

Taxes assessed by governmental authorities on revenue, including sales and value added taxes, are recorded on a net basis (excluded from revenue) in the consolidated statements of operations.

Income taxes

The Company calculates its interim income tax provision in accordance with ASC

270,

Interim Reporting

, and ASC

740,

Accounting for Income Taxes

. At the end of each interim period, the Company estimates its annual effective tax rate and applies that rate to its ordinary quarterly earnings to calculate the tax related to ordinary income. The tax effects for other items that are excluded from ordinary income are discretely calculated and recognized in the period in which they occur.

The Company recorded income tax expense of

$209,000

for the

three

months ended

March 31, 2020,

representing an effective income tax rate of (

4.18

)%. The income tax expense for the

three

months ended

March 31, 2020

was primarily related to discrete adjustments recorded in the period for an increase in valuation allowance on certain U.S state attributes and the write down of prepaid taxes. The Company’s effective income tax rate for the

three

months ended

March 31, 2020

differs from the Company’s U.K statutory rate of

19%,

primarily because the majority of its U.K. loss cannot be benefited due to the full valuation allowance position. The Company recorded an income tax benefit of

$1.5

million for the

three

months ended

March 31, 2019.

March 27, 2020,

the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, was enacted in response to the COVID-

pandemic. The CARES Act, among other provisions, permits carryovers and carrybacks of net operating losses generated in

2018

through

2020

to offset

100%

of taxable income. In addition, the CARES Act allows net operating losses incurred in

2018,

2019,

and

2020

to be carried back to each of the

five

preceding taxable years to generate a refund of previously paid income taxes. The Company is currently evaluating the impact of the CARES Act, but at present does

not

expect it to have a material impact on its financial statements.

The remainder of the significant accounting estimates and policies used in preparation of the condensed consolidated financial statements disclosed in Note

Description of business and significant accounting policies

to the consolidated financial statements in the

2019

Form

-K remain unchanged.

Recently

dopted

ccounting

ronouncements

January 2017,

the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU,

2017

04,

Intangibles – Goodwill and Other

, or ASU

2017

04.

ASU

2017

simplifies subsequent measurement of goodwill by eliminating Step

from the goodwill impairment test. The Company adopted ASU

2017

as of

January 1, 2020

on a prospective basis. The adoption of ASU

2017

has

not

had a material impact on the Company's results of operations, financial position or related disclosures.

August 2018,

the FASB issued ASU

2018

13,

Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement,

or ASU

2018

13,

which modifies certain disclosure requirements on fair value measurements. The amendments regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level

fair value measurements, and the narrative description of measurement uncertainty are required to be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments are required to be applied retrospectively to all periods presented upon their effective date. The Company adopted ASU

2018

as of

January 1, 2020.

The adoption of ASU

2018

has

not

had a material impact on the Company's disclosures.

August 2018,

the FASB issued ASU

No.

2018

, Intangibles—Goodwill and Other—Internal-Use Software: Customers Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

, or ASU

2018

15,

which aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted ASU

2018

as of

January 1, 2020

using the prospective transition approach, which allows the Company to change the accounting method without restating prior periods or recording a cumulative adjustment. The adoption of ASU

2018

has

not

had a material impact on the Company's results of operations, financial position or related disclosures.

March 2019,

the FASB issued ASU

2019

01,

Leases (Topic

842

) Codification Improvements

, or ASU

2019

01,

to clarify certain requirements of Accounting Standards Codification

842,

Leases

. The Company adopted ASU

2019

as of

January 1, 2020.

The adoption of ASU

2019

has

not

had a material impact on the Company's results of operations, financial position or related disclosures.

Recently

ssued but

not

yet adopted

ccounting

ronouncements

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments-Credit Losses

, or ASU

2016

13.

ASU

2016

requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. Under current U.S. GAAP, a company only considered past events and current conditions in measuring an incurred loss. Under ASU

2016

13,

the information that a company must consider is broadened in developing an expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss. The new guidance is to be effective for smaller reporting companies for interim and annual periods beginning after

December 15, 2022.

Early adoption is permitted. The guidance is applied using a modified retrospective, or prospective approach, depending on a specific amendment. The Company is currently evaluating ASU

2016

13.

December 2019,

the FASB issued ASU

2019

12,

Simplifying the Accounting for Income Taxes

, or ASU

2019

12,

which includes amendments to simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC

740,

Income Taxes

, or ASC

740.

The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC

740

by clarifying and amending existing guidance. The new guidance will be effective for the Company for interim and annual periods beginning after

December 15, 2020.

Early adoption of the amendments is permitted. The Company is currently evaluating ASU

2019

12.