2019 Q4 Form 10-K Financial Statement

#000144702820000038 Filed on March 05, 2020

View on sec.gov

Income Statement

Concept 2019 Q4 2019 Q3 2019 Q2
Revenue $1.618M $3.061M $653.0K
YoY Change -3.58% 92.88% -47.51%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $1.880M $3.250M $8.190M
YoY Change -68.3% 23.57% 116.67%
% of Gross Profit
Research & Development $12.42M $17.73M $12.74M
YoY Change 12.3% 7.03% -22.11%
% of Gross Profit
Depreciation & Amortization $510.0K $507.0K $505.0K
YoY Change 2.0% 2.01% -12.63%
% of Gross Profit
Operating Expenses $14.80M $94.09M $21.30M
YoY Change -15.43% 176.62% -8.55%
Operating Profit -$13.09M -$91.03M -$20.65M
YoY Change -22.58% 180.72% -6.35%
Interest Expense -$11.57M $1.100M $2.000K
YoY Change 386.13%
% of Operating Profit
Other Income/Expense, Net -$4.134M -$2.670M
YoY Change -212.61% -110.62%
Pretax Income -$24.65M -$95.16M -$23.32M
YoY Change 35.07% 230.93% -854.29%
Income Tax $0.00 -$12.66M $0.00
% Of Pretax Income
Net Earnings -$24.65M -$82.50M -$23.32M
YoY Change 35.1% 237.12% -854.29%
Net Earnings / Revenue -1523.73% -2695.3% -3570.44%
Basic Earnings Per Share -$0.46 -$1.50 -$0.46
Diluted Earnings Per Share -$418.0K -$1.451M -$0.46
COMMON SHARES
Basic Shares Outstanding 56.85M shares 56.85M shares 56.81M shares
Diluted Shares Outstanding 56.81M shares

Balance Sheet

Concept 2019 Q4 2019 Q3 2019 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $90.83M $90.10M $95.30M
YoY Change -27.1% -36.55% -38.48%
Cash & Equivalents $31.80M $90.08M $78.87M
Short-Term Investments $59.04M $0.00 $16.40M
Other Short-Term Assets $1.800M $1.800M $2.800M
YoY Change -35.71% 63.64% 133.33%
Inventory
Prepaid Expenses
Receivables $1.204M $2.488M $1.531M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $93.83M $94.34M $99.58M
YoY Change -27.39% -34.5% -36.88%
LONG-TERM ASSETS
Property, Plant & Equipment $8.676M $9.150M $9.402M
YoY Change -14.48% -12.2% -11.97%
Goodwill $0.00 $0.00 $22.47M
YoY Change -100.0% -100.0% 0.0%
Intangibles $0.00 $0.00 $43.84M
YoY Change -100.0% -100.0% -25.25%
Long-Term Investments $0.00 $10.97M $14.38M
YoY Change -100.0% -55.53% -47.62%
Other Assets $293.0K
YoY Change
Total Long-Term Assets $11.71M $22.94M $92.99M
YoY Change -88.14% -77.38% -22.02%
TOTAL ASSETS
Total Short-Term Assets $93.83M $94.34M $99.58M
Total Long-Term Assets $11.71M $22.94M $92.99M
Total Assets $105.5M $117.3M $192.6M
YoY Change -53.69% -52.21% -30.48%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.400M $1.400M $700.0K
YoY Change -25.0% -54.84% -78.13%
Accrued Expenses $5.200M $7.300M $8.000M
YoY Change -31.58% 17.74% 50.94%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $7.828M $8.817M $8.799M
YoY Change -30.35% -30.4% -23.76%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $25.00M $24.80M $6.600M
YoY Change 557.89% 416.67% -37.14%
Total Long-Term Liabilities $25.00M $24.80M $6.600M
YoY Change 557.89% 416.67% -37.14%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.828M $8.817M $8.799M
Total Long-Term Liabilities $25.00M $24.80M $6.600M
Total Liabilities $32.79M $33.64M $28.10M
YoY Change 18.5% 11.59% -27.83%
SHAREHOLDERS EQUITY
Retained Earnings -$970.1M -$942.6M -$857.3M
YoY Change 20.48% 20.17% 13.2%
Common Stock $898.5M $884.6M $884.6M
YoY Change 2.18% 0.66% 0.73%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $72.74M $83.64M $164.5M
YoY Change
Total Liabilities & Shareholders Equity $105.5M $117.3M $192.6M
YoY Change -53.69% -52.21% -30.48%

Cashflow Statement

Concept 2019 Q4 2019 Q3 2019 Q2
OPERATING ACTIVITIES
Net Income -$24.65M -$82.50M -$23.32M
YoY Change 35.1% 237.12% -854.29%
Depreciation, Depletion And Amortization $510.0K $507.0K $505.0K
YoY Change 2.0% 2.01% -12.63%
Cash From Operating Activities -$13.35M -$23.47M -$17.61M
YoY Change -21.84% 77.75% -0.1%
INVESTING ACTIVITIES
Capital Expenditures -$60.00K $255.0K $240.0K
YoY Change -73.91% 7.59% -43.53%
Acquisitions
YoY Change
Other Investing Activities -$58.76M $16.41M $10.22M
YoY Change -230.55% 36.64% -33.68%
Cash From Investing Activities -$58.82M $16.16M $9.972M
YoY Change -231.35% -33.73% -33.43%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00 $2.477M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 13.90M $18.55M $2.479M
YoY Change 12536.36% 4164.14% 237.28%
NET CHANGE
Cash From Operating Activities -13.35M -$23.47M -$17.61M
Cash From Investing Activities -58.82M $16.16M $9.972M
Cash From Financing Activities 13.90M $18.55M $2.479M
Net Change In Cash -58.27M $11.21M -$5.097M
YoY Change -309.53% -4.51% 124.74%
FREE CASH FLOW
Cash From Operating Activities -$13.35M -$23.47M -$17.61M
Capital Expenditures -$60.00K $255.0K $240.0K
Free Cash Flow -$13.29M -$23.73M -$17.85M
YoY Change -21.13% 76.51% -1.12%

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-1.21
CY2019 us-gaap Earnings Per Share Basic And Diluted
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-2.89
CY2018 us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
EffectOfExchangeRateOnCashAndCashEquivalents
-1003000 USD
CY2019 us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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68000 USD
CY2018 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.27
CY2019 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.27
CY2019Q4 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
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6846000 USD
CY2019 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
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P25M
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0.40
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22224000 USD
CY2019Q4 us-gaap Equity Method Investments
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0 USD
CY2018 us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
-1003000 USD
CY2019 us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
41000 USD
CY2018 us-gaap Foreign Currency Transaction Gain Loss Unrealized
ForeignCurrencyTransactionGainLossUnrealized
-1003000 USD
CY2019 us-gaap Foreign Currency Transaction Gain Loss Unrealized
ForeignCurrencyTransactionGainLossUnrealized
68000 USD
CY2018 us-gaap Gain Loss On Sale Of Property Plant Equipment
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26000 USD
CY2019 us-gaap Gain Loss On Sale Of Property Plant Equipment
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-20000 USD
CY2018 us-gaap General And Administrative Expense
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16002000 USD
CY2019 us-gaap General And Administrative Expense
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17727000 USD
CY2018Q4 us-gaap Goodwill
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22471000 USD
CY2019Q4 us-gaap Goodwill
Goodwill
0 USD
CY2019Q4 us-gaap Goodwill
Goodwill
0 USD
CY2018 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 USD
CY2019 us-gaap Goodwill Impairment Loss
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22500000 USD
CY2019 us-gaap Goodwill Impairment Loss
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22471000 USD
CY2019Q3 us-gaap Goodwill Impairment Loss Net Of Tax
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22500000 USD
CY2018 us-gaap Impairment Of Intangible Assets Excluding Goodwill
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14811000 USD
CY2019 us-gaap Impairment Of Intangible Assets Excluding Goodwill
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43836000 USD
CY2018 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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-61342000 USD
CY2019 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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-166379000 USD
CY2018 us-gaap Income Tax Expense Benefit
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-4282000 USD
CY2019 us-gaap Income Tax Expense Benefit
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-12656000 USD
CY2019 us-gaap Income Tax Expense Benefit Continuing Operations Adjustment Of Deferred Tax Asset Liability
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-12700000 USD
CY2018 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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13062000 USD
CY2019 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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19078000 USD
CY2018 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
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0 USD
CY2019 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
IncomeTaxReconciliationChangeInEnactedTaxRate
8356000 USD
CY2018 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
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-138000 USD
CY2019 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
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-3343000 USD
CY2018 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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-16563000 USD
CY2019 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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-44922000 USD
CY2018 us-gaap Income Tax Reconciliation Nondeductible Expense Impairment Losses
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0 USD
CY2019 us-gaap Income Tax Reconciliation Nondeductible Expense Impairment Losses
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4719000 USD
CY2018 us-gaap Income Tax Reconciliation Nondeductible Expense Share Based Compensation Cost
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1685000 USD
CY2019 us-gaap Income Tax Reconciliation Nondeductible Expense Share Based Compensation Cost
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523000 USD
CY2018 us-gaap Income Tax Reconciliation Other Adjustments
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-2328000 USD
CY2019 us-gaap Income Tax Reconciliation Other Adjustments
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3458000 USD
CY2018 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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-1266000 USD
CY2019 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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-2410000 USD
CY2018 us-gaap Increase Decrease In Accounts Receivable
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1029000 USD
CY2019 us-gaap Increase Decrease In Accounts Receivable
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-227000 USD
CY2018 us-gaap Increase Decrease In Contract With Customer Asset
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-128000 USD
CY2019 us-gaap Increase Decrease In Contract With Customer Asset
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0 USD
CY2018 us-gaap Increase Decrease In Contract With Customer Liability
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-2742000 USD
CY2019 us-gaap Increase Decrease In Contract With Customer Liability
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0 USD
CY2018 us-gaap Increase Decrease In Income Taxes Receivable
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49000 USD
CY2019 us-gaap Increase Decrease In Income Taxes Receivable
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0 USD
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0 USD
CY2019 us-gaap Increase Decrease In Other Operating Liabilities
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-665000 USD
CY2018 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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648000 USD
CY2019 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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2111000 USD
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1331000 USD
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0 USD
CY2019Q4 us-gaap Intangible Assets Net Including Goodwill
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0 USD
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226000 USD
CY2019 us-gaap Interest Expense
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2108000 USD
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104000 USD
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0 USD
CY2018 us-gaap Investment Income Interest
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3047000 USD
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LegalFees
6266000 USD
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4552000 USD
CY2019Q4 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
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1423000 USD
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657000 USD
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Five
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616000 USD
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Four
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598000 USD
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Three
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581000 USD
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Two
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677000 USD
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1193000 USD
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27671000 USD
CY2019Q4 us-gaap Liabilities
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32791000 USD
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227905000 USD
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105535000 USD
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11239000 USD
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7828000 USD
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55646000 USD
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37457000 USD
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28338000 USD
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CY2019 us-gaap Net Cash Provided By Used In Operating Activities
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3091000 USD
us-gaap Net Income Loss
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550000 USD
us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2018Q4 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2018 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2019Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2019Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2019Q4 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2019 us-gaap Net Income Loss Available To Common Stockholders Basic
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28438000 USD
CY2019 us-gaap Nonoperating Income Expense
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CY2018 us-gaap Operating Expenses
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us-gaap Operating Income Loss
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CY2019 us-gaap Operating Income Loss
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CY2019 us-gaap Operating Lease Expense
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1200000 USD
CY2019Q4 us-gaap Operating Lease Liability
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3359000 USD
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0 USD
CY2019Q4 us-gaap Operating Lease Liability Current
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340000 USD
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0 USD
CY2019Q4 us-gaap Operating Lease Liability Noncurrent
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3018000 USD
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CY2019 us-gaap Operating Lease Payments
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1116000 USD
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0 USD
CY2019Q4 us-gaap Operating Lease Right Of Use Asset
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2738000 USD
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0.089
CY2019Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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P7Y0M1D
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309000 USD
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144000 USD
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0 USD
CY2019Q4 us-gaap Other Assets Noncurrent
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293000 USD
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15000 USD
CY2019 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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CY2019 us-gaap Other Comprehensive Income Loss Net Of Tax
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CY2018 us-gaap Payments To Acquire Investments
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121580000 USD
CY2019 us-gaap Payments To Acquire Investments
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58759000 USD
CY2018 us-gaap Payments To Acquire Property Plant And Equipment
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1138000 USD
CY2019 us-gaap Payments To Acquire Property Plant And Equipment
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589000 USD
CY2018 us-gaap Preferred Stock Accretion Of Redemption Discount
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0 USD
CY2019 us-gaap Preferred Stock Accretion Of Redemption Discount
PreferredStockAccretionOfRedemptionDiscount
0 USD
CY2018 us-gaap Preferred Stock Dividends And Other Adjustments
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10091000 USD
CY2019 us-gaap Preferred Stock Dividends And Other Adjustments
PreferredStockDividendsAndOtherAdjustments
11149000 USD
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126136000 USD
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137285000 USD
CY2018Q4 us-gaap Preferred Stock No Par Value
PreferredStockNoParValue
CY2019Q4 us-gaap Preferred Stock No Par Value
PreferredStockNoParValue
CY2018Q4 us-gaap Preferred Stock Shares Authorized
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1164000 shares
CY2019Q4 us-gaap Preferred Stock Shares Authorized
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1164000 shares
CY2018Q4 us-gaap Preferred Stock Shares Issued
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1164000 shares
CY2019Q4 us-gaap Preferred Stock Shares Issued
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1164000 shares
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1164000 shares
CY2019Q4 us-gaap Preferred Stock Shares Outstanding
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1164000 shares
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3181000 USD
CY2019Q4 us-gaap Prepaid Expense And Other Assets Current
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1790000 USD
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0 USD
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18601000 USD
CY2018 us-gaap Proceeds From Issuance Of Convertible Preferred Stock
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66265000 USD
CY2019 us-gaap Proceeds From Issuance Of Convertible Preferred Stock
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0 USD
CY2018 us-gaap Proceeds From Sale Maturity And Collections Of Investments
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118566000 USD
CY2019 us-gaap Proceeds From Sale Maturity And Collections Of Investments
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87675000 USD
CY2018 us-gaap Proceeds From Sale Of Property Plant And Equipment
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25000 USD
CY2019 us-gaap Proceeds From Sale Of Property Plant And Equipment
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11000 USD
CY2018 us-gaap Proceeds From Stock Options Exercised
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1382000 USD
CY2019 us-gaap Proceeds From Stock Options Exercised
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307000 USD
CY2019 us-gaap Property Plant And Equipment Disposals
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3400000 USD
CY2018Q4 us-gaap Property Plant And Equipment Gross
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17041000 USD
CY2019Q4 us-gaap Property Plant And Equipment Gross
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14318000 USD
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10145000 USD
CY2019Q4 us-gaap Property Plant And Equipment Net
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8676000 USD
CY2018 us-gaap Repayments Of Notes Payable
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12001000 USD
CY2019 us-gaap Repayments Of Notes Payable
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0 USD
CY2018 us-gaap Research And Development Expense
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57934000 USD
CY2019 us-gaap Research And Development Expense
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57601000 USD
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12601000 USD
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4797000 USD
CY2019 us-gaap Restructuring Charges
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156000 USD
CY2018 us-gaap Restructuring Costs
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396000 USD
CY2019 us-gaap Restructuring Costs
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0 USD
CY2019Q4 us-gaap Restructuring Reserve
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137000 USD
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1331000 USD
CY2019Q4 us-gaap Restructuring Reserve Current
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137000 USD
CY2018Q4 us-gaap Retained Earnings Accumulated Deficit
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CY2018Q1 us-gaap Revenues
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1436000 USD
CY2018Q2 us-gaap Revenues
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1244000 USD
us-gaap Revenues
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1587000 USD
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1678000 USD
CY2018 us-gaap Revenues
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5945000 USD
CY2019Q1 us-gaap Revenues
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679000 USD
CY2019Q2 us-gaap Revenues
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653000 USD
CY2019Q3 us-gaap Revenues
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3061000 USD
CY2019Q4 us-gaap Revenues
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1618000 USD
CY2019 us-gaap Revenues
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6011000 USD
CY2018 us-gaap Share Based Compensation
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6241000 USD
CY2019 us-gaap Share Based Compensation
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6799000 USD
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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0.0000
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.0000
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
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0.7520
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
1.1310
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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0.0248
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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0.0159
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Additional Shares Authorized
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2424703 shares
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3.83
CY2019Q4 us-gaap Share Price
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2.78
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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P8Y0M
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P2Y2M
CY2019 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P1Y7M
CY2018Q4 us-gaap Short Term Investments
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87675000 USD
CY2019Q4 us-gaap Short Term Investments
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59035000 USD
CY2019 us-gaap Stock Issued During Period Value New Issues
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18601000 USD
CY2018 us-gaap Stock Issued During Period Value Stock Options Exercised
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1382000 USD
CY2019 us-gaap Stock Issued During Period Value Stock Options Exercised
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307000 USD
CY2017Q4 us-gaap Stockholders Equity
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182473000 USD
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
200234000 USD
CY2019Q4 us-gaap Stockholders Equity
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72744000 USD
CY2018 us-gaap Sublease Income
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200000 USD
CY2019 us-gaap Sublease Income
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200000 USD
CY2019 us-gaap Variable Lease Cost
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300000 USD
CY2019 us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Nature of business and future operations</font></div><div style="line-height:120%;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Arbutus Biopharma Corporation (the &#8220;Company&#8221; or &#8220;Arbutus&#8221;) is a biopharmaceutical business dedicated to discovering developing, and commercializing a cure for patients suffering from chronic hepatitis B infection, a disease of the liver caused by the hepatitis B virus (&#8220;HBV&#8221;). To pursue our strategy of developing a treatment for chronic HBV, we are developing a diverse product pipeline consisting of multiple drug candidates with complementary mechanisms of action, which have the potential to improve upon the SOC and contribute to a curative combination regimen. Our pipeline includes agents that have the potential to form an effective proprietary combination therapy. </font></div><div style="line-height:120%;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s pipeline includes:</font></div><div style="line-height:120%;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="padding-top:0px;padding-bottom:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">AB-729, a subcutaneously-delivered RNA interference (&#8220;RNAi&#8221;) therapeutic product candidate currently in a Phase 1a/1b clinical trial with preliminary results anticipated in late March 2020;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:0px;padding-bottom:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">AB-836, a next-generation capsid inhibitor product candidate currently advancing through IND-enabling studies; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:0px;padding-bottom:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">other compounds early in the development process, including back-up capsid inhibitors, next-generation oral HBV RNA destabilizers and compounds that inhibit PD-L1.</font></div></td></tr></table><div style="line-height:120%;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The success of the Company is dependent on obtaining the necessary regulatory approvals to bring its products to market and achieve profitable operations. The Company&#8217;s research and development activities and commercialization of its products are dependent on its ability to successfully complete these activities and to obtain adequate financing through a combination of financing activities and operations. It is not possible to predict either the outcome of the Company&#8217;s existing or future research and development programs or the Company&#8217;s ability to continue to fund these programs in the future.</font></div></div>
CY2019 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of estimates</font></div><div style="line-height:120%;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events that affect the reported amounts of assets, liabilities, revenue, expenses and contingent liabilities as of the end or during the reporting period. Actual results could significantly differ from those estimates. Significant areas requiring the use of management estimates relate to valuation of intangible assets and goodwill, stock-based compensation, and the amounts recorded as accrued liabilities, contingent consideration, and income tax recovery.</font></div></div>

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