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Summary of Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2020
Summary of Significant Accounting Policies  
Contract assets and contract liabilities

The following table presents changes in the Company’s contract assets and contract liabilities during the three months ended March 31, 2020 and 2019 (in thousands):

Balance at

Balance at

Three months ended March 31, 2020

December 31, 2019

 

Additions

Deductions

Impact of Netting

March 31, 2020

Contract asset

$

3,631

$

$

(3,000)

$

359

$

990

Contract liabilities

$

127,432

$

$

(283)

$

361

$

127,510

Balance at

Balance at

Three months ended March 31, 2019

December 31, 2018

Additions

Deductions

March 31, 2019

Contract asset

$

500

$

$

(500)

$

Contract liabilities

$

80,802

$

65,287

$

(79)

$

146,010

The Company recognized the following revenues as a result of changes in contract asset and contract liability balances in the respective periods (in thousands):

Three Months Ended

March 31,

2020

2019

Revenue recognized in the period from:

Amounts included in contract liabilities at the beginning of the period

$

283

$

79

Performance obligations satisfied in previous periods

$

$

Schedule of assets that are required to be measured at fair value on a recurring basis

As of March 31, 2020, the Company held certain assets that are required to be measured at fair value on a recurring basis. The following table represents the fair value hierarchy for the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2020 (in thousands):

Fair Value Measurements at March 31, 2020 Using

Quoted Prices in

Significant

Active Markets for

Significant Other

Unobservable

Identical Assets

Observable Inputs

Inputs

    

Total

    

(Level 1)

    

(Level 2)

    

(Level 3)

Cash equivalents

$

231,280

$

231,280

$

$

As of December 31, 2019, the Company held certain assets that are required to be measured at fair value on a recurring basis. The following table represents the fair value hierarchy for the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2019 (in thousands):

Fair Value Measurements at December 31, 2019 Using

Quoted Prices in

Significant

Active Markets for

Significant Other

Unobservable

Identical Assets

Observable Inputs

Inputs

    

Total

    

(Level 1)

    

(Level 2)

    

(Level 3)

Cash equivalents

$

163,674

$

163,674

    

$

    

$

Schedule of common stock equivalents, as calculated in accordance with the treasury-stock method

The Company’s common stock equivalents, as calculated in accordance with the treasury-stock method for the options and unvested restricted stock and the if-converted method for the Convertible Notes, are shown in the following table (in thousands):

Three Months Ended

March 31,

    

2020

    

2019

Options outstanding to purchase common stock, shares issuable under the employee stock purchase plan, and unvested restricted stock/units at end of period

19,021

21,528

Common stock equivalents under treasury stock method for options, shares issuable under the employee stock purchase plan, and unvested restricted stock

1,428

1,559

Shares issuable upon conversion of convertible notes at end of period

501

501

Common stock equivalents under if-converted method for convertible notes

501

501

Schedule of assumptions

Three Months Ended March 31,

    

2020

2019

Dividend

None

None

Volatility

84.20%

73.57%

Risk-free interest rate

1.45%

2.47%

Expected life (years)

6.0

6.0

Summary of stock option activity

A summary of option activity under the Company’s equity plans as of March 31, 2020, and changes during the three month period then ended is presented below (in thousands, except weighted-average data):

    

    

Weighted-

Number

Average

of Stock

Exercise

Options

Price

Outstanding at December 31, 2019

13,518

$

7.53

Granted

5,740

4.55

Exercised

(86)

2.81

Forfeited/Canceled

(625)

8.45

Outstanding at March 31, 2020

18,547

$

6.60

Summary of restricted stock activity

A summary of restricted stock and restricted stock unit activity, inclusive of performance-based restricted stock awards, under the Company’s equity plans as of March 31, 2020 and changes during the three-month period ended March 31, 2020 is presented below (in thousands):

Number of

Weighted-

Restricted

Average Grant

Stock Shares

Date Fair Value

Unvested at December 31, 2019

 

1,297

$

2.97

Vested

 

(337)

2.47

Forfeited

(487)

3.62

Unvested at March 31, 2020

473

2.68