2018 Q2 Form 10-Q Financial Statement

#000162828018010708 Filed on August 07, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q2
Revenue $1.692M $699.0K
YoY Change 142.06% 3395.0%
Cost Of Revenue $717.0K $135.0K
YoY Change 431.11%
Gross Profit $975.0K $564.0K
YoY Change 72.87% 2720.0%
Gross Profit Margin 57.62% 80.69%
Selling, General & Admin $15.33M $11.46M
YoY Change 33.77% 24.03%
% of Gross Profit 1572.31% 2031.91%
Research & Development $6.060M $5.527M
YoY Change 9.64% -34.4%
% of Gross Profit 621.54% 979.96%
Depreciation & Amortization $500.0K $540.0K
YoY Change -7.41% -10.74%
% of Gross Profit 51.28% 95.74%
Operating Expenses $21.39M $5.527M
YoY Change 287.01% -34.4%
Operating Profit -$20.42M -$16.42M
YoY Change 24.31% -8.19%
Interest Expense $3.205M $0.00
YoY Change
% of Operating Profit
Other Income/Expense, Net -$2.709M $141.0K
YoY Change -2021.28%
Pretax Income -$23.12M -$16.28M
YoY Change 42.02% -8.87%
Income Tax $101.0K $175.0K
% Of Pretax Income
Net Earnings -$23.23M -$16.46M
YoY Change 41.13% -7.89%
Net Earnings / Revenue -1372.64% -2354.36%
Basic Earnings Per Share
Diluted Earnings Per Share -$430.2K -$307.3K
COMMON SHARES
Basic Shares Outstanding 54.00M shares 53.57M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2018 Q2 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $197.4M $135.2M
YoY Change 46.01% 32.03%
Cash & Equivalents $66.81M $62.61M
Short-Term Investments $130.6M $72.60M
Other Short-Term Assets $643.0K $496.0K
YoY Change 29.64% -59.74%
Inventory $11.32M $5.720M
Prepaid Expenses
Receivables $1.800M $700.0K
Other Receivables $0.00 $0.00
Total Short-Term Assets $212.6M $143.3M
YoY Change 48.39% 35.93%
LONG-TERM ASSETS
Property, Plant & Equipment $5.443M $4.844M
YoY Change 12.37% -2.34%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $78.00K
YoY Change
Total Long-Term Assets $5.645M $4.984M
YoY Change 13.26% -2.5%
TOTAL ASSETS
Total Short-Term Assets $212.6M $143.3M
Total Long-Term Assets $5.645M $4.984M
Total Assets $218.3M $148.3M
YoY Change 47.21% 34.15%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.355M $1.534M
YoY Change 53.52% -14.25%
Accrued Expenses $5.300M $3.600M
YoY Change 47.22% 38.46%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $7.842M $6.223M
YoY Change 26.02% 39.09%
LONG-TERM LIABILITIES
Long-Term Debt $115.5M $0.00
YoY Change
Other Long-Term Liabilities $26.00K $0.00
YoY Change -100.0%
Total Long-Term Liabilities $26.00K $0.00
YoY Change -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.842M $6.223M
Total Long-Term Liabilities $26.00K $0.00
Total Liabilities $123.4M $6.223M
YoY Change 1882.44% 13.68%
SHAREHOLDERS EQUITY
Retained Earnings -$286.1M -$208.6M
YoY Change 37.13% 45.01%
Common Stock $426.1M $350.6M
YoY Change 21.54% 40.92%
Preferred Stock
YoY Change
Treasury Stock (at cost) $45.07M
YoY Change
Treasury Stock Shares
Shareholders Equity $94.89M $142.0M
YoY Change
Total Liabilities & Shareholders Equity $218.3M $148.3M
YoY Change 47.21% 34.15%

Cashflow Statement

Concept 2018 Q2 2017 Q2
OPERATING ACTIVITIES
Net Income -$23.23M -$16.46M
YoY Change 41.13% -7.89%
Depreciation, Depletion And Amortization $500.0K $540.0K
YoY Change -7.41% -10.74%
Cash From Operating Activities -$19.35M -$12.62M
YoY Change 53.33% -15.19%
INVESTING ACTIVITIES
Capital Expenditures $590.0K -$1.410M
YoY Change -141.84% 252.5%
Acquisitions
YoY Change
Other Investing Activities -$63.77M -$18.65M
YoY Change 241.93% -8.26%
Cash From Investing Activities -$63.18M -$20.06M
YoY Change 214.96% -3.28%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 22.62M 85.24M
YoY Change -73.46% 7941.51%
NET CHANGE
Cash From Operating Activities -19.35M -12.62M
Cash From Investing Activities -63.18M -20.06M
Cash From Financing Activities 22.62M 85.24M
Net Change In Cash -59.91M 52.56M
YoY Change -213.98% -252.08%
FREE CASH FLOW
Cash From Operating Activities -$19.35M -$12.62M
Capital Expenditures $590.0K -$1.410M
Free Cash Flow -$19.94M -$11.21M
YoY Change 77.88% -22.58%

Facts In Submission

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us-gaap Interest Expense
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us-gaap Interest Expense
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us-gaap Interest Expense Debt Excluding Amortization
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1100000 USD
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377000 USD
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842000 USD
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153000 USD
us-gaap Investment Income Interest And Dividend
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290000 USD
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774000 USD
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146000 USD
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us-gaap Lease And Rental Expense
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346000 USD
us-gaap Lease And Rental Expense
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688000 USD
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11000 USD
us-gaap Lease Income
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12000 USD
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172000 USD
us-gaap Lease Income
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181000 USD
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123367000 USD
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125512000 USD
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218253000 USD
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6787000 USD
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7842000 USD
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0 USD
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44000 USD
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206000 USD
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0 USD
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3000 USD
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3000 USD
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204000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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204000 USD
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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21000 USD
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26000 USD
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5000 USD
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5000 USD
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25000 USD
us-gaap Other Nonoperating Expense
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25000 USD
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141000 USD
us-gaap Other Nonoperating Income Expense
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252000 USD
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45069000 USD
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0 USD
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4991000 USD
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39342000 USD
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91272000 USD
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1643000 USD
us-gaap Payments To Acquire Productive Assets
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702000 USD
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6500000 USD
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0 USD
us-gaap Proceeds From Sale And Maturity Of Available For Sale Securities
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4890000 USD
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5443000 USD
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5527000 USD
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6060000 USD
us-gaap Research And Development Expense
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699000 USD
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1000000 USD
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P4Y
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695000 USD
us-gaap Sales Revenue Goods Net
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1224000 USD
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1671000 USD
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2467000 USD
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699000 USD
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1230000 USD
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1692000 USD
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2493000 USD
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4000 USD
us-gaap Sales Revenue Services Net
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6000 USD
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21000 USD
us-gaap Sales Revenue Services Net
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26000 USD
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7450000 USD
us-gaap Share Based Compensation
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9011000 USD
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0
CY2018Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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0
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23.43
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0.75
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
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20.97
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25.45
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0.64
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0.0202
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0.0282
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7328000 shares
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10.16
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P6Y1M13D
CY2018Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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P6Y0M22D
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83067000 USD
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SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P5Y1M17D
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P6Y2M5D
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1000 USD
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61000 USD
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192000 USD
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StandardProductWarrantyAccrual
199000 USD
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us-gaap Standard Product Warranty Accrual Payments
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122000 USD
us-gaap Standard Product Warranty Accrual Payments
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us-gaap Standard Product Warranty Accrual Warranties Issued
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145000 USD
us-gaap Standard Product Warranty Accrual Warranties Issued
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axdx License Agreement
LicenseAgreement
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;color:#000000;font-style:normal;font-weight:bold;text-decoration:none;">NOTE 9. LICENSE AGREEMENTS AND GRANTS</font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;text-decoration:none;">National Institute of Health Grant</font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In February 2015, the National Institute of Health awarded Denver Health and the Company a </font><font style="font-family:Arial;font-size:10pt;">five</font><font style="font-family:Arial;font-size:10pt;">-year, </font><font style="font-family:Arial;font-size:10pt;">$5.0 million</font><font style="font-family:Arial;font-size:10pt;"> grant to develop a fast and reliable identification and categorical susceptibility test for carbepenem-resistant Enterobacteriaceae directly from whole blood. The cumulative amount awarded to date under these subawards is </font><font style="font-family:Arial;font-size:10pt;">$1.1 million</font><font style="font-family:Arial;font-size:10pt;">. The amounts invoiced for the </font><font style="font-family:Arial;font-size:10pt;">three months ended</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">June&#160;30, 2018</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">2017</font><font style="font-family:Arial;font-size:10pt;"> were </font><font style="font-family:Arial;font-size:10pt;">$38,000</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">$0</font><font style="font-family:Arial;font-size:10pt;">, respectively, and for the </font><font style="font-family:Arial;font-size:10pt;">six months ended</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">June&#160;30, 2018</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">2017</font><font style="font-family:Arial;font-size:10pt;"> were </font><font style="font-family:Arial;font-size:10pt;">$98,000</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">$3,000</font><font style="font-family:Arial;font-size:10pt;">, respectively.</font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;text-decoration:none;">Arizona Commerce Authority</font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In August 2012, the Company entered into a Grant Agreement (the &#8220;Grant Agreement&#8221;) with the Arizona Commerce Authority, an agency of the State of Arizona (the &#8220;Authority&#8221;), pursuant to which the Authority provided certain state and county sponsored incentives for the Company relocating its corporate headquarters to, and expanding its business within, the State of Arizona (the &#8220;Project&#8221;). Pursuant to the Grant Agreement, the Authority provided a total grant in the amount of </font><font style="font-family:Arial;font-size:10pt;">$1.0 million</font><font style="font-family:Arial;font-size:10pt;"> (the &#8220;Grant&#8221;). The Grant was paid in </font><font style="font-family:Arial;font-size:10pt;">four</font><font style="font-family:Arial;font-size:10pt;"> installments, upon the achievement of the following milestones:</font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;padding-left:72px;text-indent:-24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Milestone 1 &#8211; Relocation of Company&#8217;s operations and corporate headquarters to Arizona and creation of </font><font style="font-family:Arial;font-size:10pt;">15</font><font style="font-family:Arial;font-size:10pt;"> Qualified Jobs (as defined below).</font></div></td></tr></table><div style="line-height:120%;padding-bottom:0px;text-align:justify;padding-left:72px;text-indent:-24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Milestone 2 &#8211; Creation of </font><font style="font-family:Arial;font-size:10pt;">30</font><font style="font-family:Arial;font-size:10pt;"> Qualified Jobs (including Qualified Jobs under Milestone 1).</font></div></td></tr></table><div style="line-height:120%;padding-bottom:0px;text-align:justify;padding-left:72px;text-indent:-24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Milestone 3 &#8211; Creation of </font><font style="font-family:Arial;font-size:10pt;">40</font><font style="font-family:Arial;font-size:10pt;"> Qualified Jobs (including Qualified Jobs under Milestones 1 and 2).</font></div></td></tr></table><div style="line-height:120%;padding-bottom:0px;text-align:justify;padding-left:72px;text-indent:-24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Milestone 4 &#8211; Creation of </font><font style="font-family:Arial;font-size:10pt;">65</font><font style="font-family:Arial;font-size:10pt;"> Qualified Jobs (including Qualified Jobs under Milestones 1, 2 and 3) and capital investment of at least </font><font style="font-family:Arial;font-size:10pt;">$4.5 million</font><font style="font-family:Arial;font-size:10pt;">.</font></div></td></tr></table><div style="line-height:120%;padding-bottom:0px;text-align:justify;padding-left:72px;text-indent:-24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">For purposes of the Grant Agreement, a &#8220;Qualified Job&#8221; was a job which was permanent, full-time, new to Arizona and for which the Company paid an average annual wage of at least </font><font style="font-family:Arial;font-size:10pt;">$63,000</font><font style="font-family:Arial;font-size:10pt;"> and included health insurance benefits, for which the Company paid at least </font><font style="font-family:Arial;font-size:10pt;">65%</font><font style="font-family:Arial;font-size:10pt;"> of the premiums. The Grant Agreement also contained other customary provisions, including representations, warranties and covenants of both parties. As of </font><font style="font-family:Arial;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:Arial;font-size:10pt;">, the full amount was collected and recorded in current deferred revenue and income.</font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In January 2018, the full amount was recognized due to the economic development provisions of the grant being satisfied in full, and the &#8220;claw-back&#8221; provisions expiring. The </font><font style="font-family:Arial;font-size:10pt;">$1.0 million</font><font style="font-family:Arial;font-size:10pt;"> was recognized as an offset to expense. Further details are included in </font><font style="font-family:Arial;font-size:10pt;">Note 10, Deferred Revenue, Income and Remaining Performance Obligations</font><font style="font-family:Arial;font-size:10pt;">.</font></div></div>
us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;color:#000000;font-style:normal;font-weight:bold;text-decoration:none;">NOTE 10. DEFERRED REVENUE, INCOME AND REMAINING PERFORMANCE OBLIGATIONS</font></div><div style="line-height:120%;padding-bottom:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Deferred revenue consists of amounts received for products or services not yet delivered or earned. Deferred income consists of amounts received for commitments not yet fulfilled. If we anticipate that the revenue or income will not be earned within the following twelve months, the amount is reported as long-term deferred income. A summary of the balances as of </font><font style="font-family:Arial;font-size:10pt;">June&#160;30, 2018</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:Arial;font-size:10pt;"> follows (in thousands):</font></div><div style="line-height:120%;padding-bottom:0px;text-align:center;text-indent:0px;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="7" rowspan="1"></td></tr><tr><td style="width:70%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:13%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:13%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">June 30,</font></div></td><td colspan="3" style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">December 31,</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:top;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">2018</font></div></td><td colspan="3" style="vertical-align:top;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">2017</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Products and services not yet delivered</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">185</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">71</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Arizona Commerce Authority grant</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">1,000</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Deferred revenue and income</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">185</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">1,071</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr></table></div><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We recognized $</font><font style="font-family:Arial;font-size:10pt;">14,000</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">$35,000</font><font style="font-family:Arial;font-size:10pt;"> of revenues that were included in the contract liabilities balances during the the </font><font style="font-family:Arial;font-size:10pt;">three and six</font><font style="font-family:Arial;font-size:10pt;"> months ended </font><font style="font-family:Arial;font-size:10pt;">June&#160;30, 2018</font><font style="font-family:Arial;font-size:10pt;">, respectively. No material amount of revenue recognized during the period was from performance obligations satisfied in prior periods.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Transaction Price Allocated to Remaining Performance Obligations</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">As of </font><font style="font-family:Arial;font-size:10pt;">June&#160;30, 2018</font><font style="font-family:Arial;font-size:10pt;">, $</font><font style="font-family:Arial;font-size:10pt;">1.0 million</font><font style="font-family:Arial;font-size:10pt;"> of revenue is expected to be recognized from remaining performance obligations. This balance primarily relates to executed, service contracts that begin as warranty periods expire. These contracts typically provide for </font><font style="font-family:Arial;font-size:10pt;">four</font><font style="font-family:Arial;font-size:10pt;">-year terms and revenue is recognized on a straight-line basis over the contract term.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The Company elects not to disclose the value of unsatisfied performance obligations for (i) contracts with an expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;text-decoration:none;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The Company&#8217;s consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (&#8220;GAAP&#8221;). The preparation of the Company&#8217;s consolidated financial statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to accounts receivable, inventories, property and equipment, intangible assets, accruals, warranty liabilities, tax valuation accounts and stock-based compensation. Actual results could differ materially from those estimates.</font></div></div>

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