2019 Q1 Form 10-K Financial Statement

#000120037519000005 Filed on March 01, 2019

View on sec.gov

Income Statement

Concept 2019 Q1 2018 2017 Q4
Revenue $15.58M $60.59M $21.72M
YoY Change 10.97% 21.13% 117.85%
Cost Of Revenue $4.391M $12.62M $3.560M
YoY Change 14.8% -11.91% 55.46%
Gross Profit $11.19M $47.97M $18.16M
YoY Change 9.54% 34.39% 136.46%
Gross Profit Margin 71.82% 79.17% 83.61%
Selling, General & Admin $8.415M $29.29M $7.870M
YoY Change 8.64% 0.98% 12.91%
% of Gross Profit 75.19% 61.06% 43.34%
Research & Development $8.016M $29.98M $9.420M
YoY Change 11.67% 1.08% 58.05%
% of Gross Profit 71.62% 62.49% 51.87%
Depreciation & Amortization $319.0K $1.147M $240.0K
YoY Change 34.03% 10.08% -62.5%
% of Gross Profit 2.85% 2.39% 1.32%
Operating Expenses $20.82M $71.89M $17.28M
YoY Change 11.06% -1.51% 33.64%
Operating Profit -$5.239M -$11.30M $880.0K
YoY Change 11.3% -50.83% -116.76%
Interest Expense $230.0K $700.0K $50.00K
YoY Change 228.57% 600.0% 150.0%
% of Operating Profit 5.68%
Other Income/Expense, Net -$125.0K -$291.0K -$10.00K
YoY Change 108.33% -416.3% -83.33%
Pretax Income -$5.133M -$10.65M $920.0K
YoY Change 9.31% -53.67% -117.39%
Income Tax $3.000K -$37.00K $34.05M
% Of Pretax Income 3701.09%
Net Earnings -$5.136M -$10.88M $970.0K
YoY Change 9.42% -52.7% -118.44%
Net Earnings / Revenue -32.96% -17.95% 4.47%
Basic Earnings Per Share
Diluted Earnings Per Share -$94.89K -$208.8K $20.12K
COMMON SHARES
Basic Shares Outstanding 54.16M shares 48.35M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q1 2018 2017 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $47.30M $53.00M $31.20M
YoY Change 94.65% 69.87% 62.5%
Cash & Equivalents $47.32M $53.00M $31.22M
Short-Term Investments
Other Short-Term Assets $1.200M $1.100M $1.000M
YoY Change -20.0% 10.0% -16.67%
Inventory $633.0K $600.0K $1.036M
Prepaid Expenses
Receivables $12.60M $13.50M $11.45M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $63.71M $68.20M $45.04M
YoY Change 77.15% 51.56% 65.42%
LONG-TERM ASSETS
Property, Plant & Equipment $4.535M $4.800M $2.815M
YoY Change 73.09% 71.43% 30.63%
Goodwill $3.200M $3.241M
YoY Change -1.27% 1.28%
Intangibles
YoY Change
Long-Term Investments $500.0K $600.0K $700.0K
YoY Change -28.57% -14.29% -36.36%
Other Assets $1.013M $2.500M $302.0K
YoY Change 115.53% 31.58% 16.6%
Total Long-Term Assets $37.41M $11.10M $8.586M
YoY Change 338.1% 29.07% 1.96%
TOTAL ASSETS
Total Short-Term Assets $63.71M $68.20M $45.04M
Total Long-Term Assets $37.41M $11.10M $8.586M
Total Assets $101.1M $79.30M $53.63M
YoY Change 127.21% 47.95% 50.43%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.180M $3.100M $3.545M
YoY Change -16.06% -11.43% -16.23%
Accrued Expenses $7.127M $9.400M $4.362M
YoY Change 34.37% 11.9% 106.63%
Deferred Revenue $1.554M $12.29M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $200.0K
YoY Change
Total Short-Term Liabilities $18.65M $18.10M $24.95M
YoY Change -13.45% -27.6% 101.76%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $100.0K $302.0K
YoY Change -100.0% -66.67%
Other Long-Term Liabilities $1.320M $4.800M $1.863M
YoY Change -24.96% 26.32% -16.49%
Total Long-Term Liabilities $1.320M $4.900M $2.165M
YoY Change -34.07% 19.51% -2.96%
TOTAL LIABILITIES
Total Short-Term Liabilities $18.65M $18.10M $24.95M
Total Long-Term Liabilities $1.320M $4.900M $2.165M
Total Liabilities $49.91M $23.00M $29.08M
YoY Change 69.55% -20.96% 75.71%
SHAREHOLDERS EQUITY
Retained Earnings -$335.6M -$315.1M
YoY Change 3.49% 7.87%
Common Stock $5.000K $5.000K
YoY Change 0.0% 25.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $51.21M $56.30M $24.55M
YoY Change
Total Liabilities & Shareholders Equity $101.1M $79.30M $53.63M
YoY Change 127.21% 47.95% 50.43%

Cashflow Statement

Concept 2019 Q1 2018 2017 Q4
OPERATING ACTIVITIES
Net Income -$5.136M -$10.88M $970.0K
YoY Change 9.42% -52.7% -118.44%
Depreciation, Depletion And Amortization $319.0K $1.147M $240.0K
YoY Change 34.03% 10.08% -62.5%
Cash From Operating Activities -$2.851M -$14.09M $7.620M
YoY Change -31.88% 60.98% 47.67%
INVESTING ACTIVITIES
Capital Expenditures $445.0K $2.768M -$250.0K
YoY Change 2681.25% 181.02% 150.0%
Acquisitions
YoY Change
Other Investing Activities $0.00 -$10.00K
YoY Change
Cash From Investing Activities -$445.0K -$2.766M -$240.0K
YoY Change 2681.25% 181.38% 140.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $37.50M
YoY Change 57.67%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$2.082M $38.57M 30.00K
YoY Change -24.67% 78.15% -66.67%
NET CHANGE
Cash From Operating Activities -$2.851M -$14.09M 7.620M
Cash From Investing Activities -$445.0K -$2.766M -240.0K
Cash From Financing Activities -$2.082M $38.57M 30.00K
Net Change In Cash -$5.378M $21.71M 7.410M
YoY Change -22.79% 82.24% 43.88%
FREE CASH FLOW
Cash From Operating Activities -$2.851M -$14.09M $7.620M
Capital Expenditures $445.0K $2.768M -$250.0K
Free Cash Flow -$3.296M -$16.86M $7.870M
YoY Change -21.54% 73.12% 49.62%

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12620000 USD
CY2018Q4 us-gaap Cumulative Effect Of New Accounting Principle In Period Of Adoption
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CY2016 us-gaap Current Federal Tax Expense Benefit
CurrentFederalTaxExpenseBenefit
0 USD
CY2017 us-gaap Current Federal Tax Expense Benefit
CurrentFederalTaxExpenseBenefit
0 USD
CY2018 us-gaap Current Federal Tax Expense Benefit
CurrentFederalTaxExpenseBenefit
0 USD
CY2017Q4 us-gaap Contract With Customer Liability Noncurrent
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1501000 USD
CY2018Q4 us-gaap Contract With Customer Liability Noncurrent
ContractWithCustomerLiabilityNoncurrent
3352000 USD
CY2018 us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
60594000 USD
CY2016 us-gaap Cost Of Goods And Services Sold
CostOfGoodsAndServicesSold
9753000 USD
CY2016 us-gaap Current Foreign Tax Expense Benefit
CurrentForeignTaxExpenseBenefit
-14000 USD
CY2017 us-gaap Current Foreign Tax Expense Benefit
CurrentForeignTaxExpenseBenefit
64000 USD
CY2018 us-gaap Current Foreign Tax Expense Benefit
CurrentForeignTaxExpenseBenefit
-13000 USD
CY2016 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
-9000 USD
CY2017 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
69000 USD
CY2018 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
-8000 USD
CY2016 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
5000 USD
CY2017 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
5000 USD
CY2018 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
5000 USD
CY2016 us-gaap Deferred Federal Income Tax Expense Benefit
DeferredFederalIncomeTaxExpenseBenefit
0 USD
CY2017 us-gaap Deferred Federal Income Tax Expense Benefit
DeferredFederalIncomeTaxExpenseBenefit
0 USD
CY2018 us-gaap Deferred Federal Income Tax Expense Benefit
DeferredFederalIncomeTaxExpenseBenefit
0 USD
CY2016 us-gaap Deferred Foreign Income Tax Expense Benefit
DeferredForeignIncomeTaxExpenseBenefit
-31000 USD
CY2017 us-gaap Deferred Foreign Income Tax Expense Benefit
DeferredForeignIncomeTaxExpenseBenefit
12000 USD
CY2018 us-gaap Deferred Foreign Income Tax Expense Benefit
DeferredForeignIncomeTaxExpenseBenefit
-29000 USD
CY2016 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
-31000 USD
CY2017 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
12000 USD
CY2018 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
-29000 USD
CY2017Q4 us-gaap Deferred Income Tax Liabilities
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115000 USD
CY2018Q4 us-gaap Deferred Income Tax Liabilities
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64000 USD
CY2017Q4 us-gaap Deferred Rent Credit Current
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258000 USD
CY2018Q4 us-gaap Deferred Rent Credit Current
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343000 USD
CY2016 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
0 USD
CY2017 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
0 USD
CY2018 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
0 USD
CY2017Q4 us-gaap Deferred Tax Assets Capital Loss Carryforwards
DeferredTaxAssetsCapitalLossCarryforwards
576000 USD
CY2018Q4 us-gaap Deferred Tax Assets Capital Loss Carryforwards
DeferredTaxAssetsCapitalLossCarryforwards
576000 USD
CY2017Q4 us-gaap Deferred Tax Assets Deferred Income
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3334000 USD
CY2018Q4 us-gaap Deferred Tax Assets Deferred Income
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1879000 USD
CY2017Q4 us-gaap Deferred Tax Assets Goodwill And Intangible Assets
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3172000 USD
CY2018Q4 us-gaap Deferred Tax Assets Goodwill And Intangible Assets
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2557000 USD
CY2017Q4 us-gaap Deferred Tax Assets Gross
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74050000 USD
CY2018Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
79240000 USD
CY2017Q4 us-gaap Deferred Tax Assets Investments
DeferredTaxAssetsInvestments
295000 USD
CY2018Q4 us-gaap Deferred Tax Assets Investments
DeferredTaxAssetsInvestments
297000 USD
CY2017Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
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53901000 USD
CY2017Q4 us-gaap Deferred Tax Assets Other
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78000 USD
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60455000 USD
CY2018Q4 us-gaap Equity Securities Fv Ni
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588000 USD
CY2018Q4 us-gaap Equity Securities Fv Ni Cost
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563000 USD
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83000 USD
CY2017Q4 us-gaap Deferred Tax Assets Property Plant And Equipment
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1573000 USD
CY2018Q4 us-gaap Deferred Tax Assets Property Plant And Equipment
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1376000 USD
CY2017Q4 us-gaap Deferred Tax Assets Tax Credit Carryforwards
DeferredTaxAssetsTaxCreditCarryforwards
6221000 USD
CY2018Q4 us-gaap Deferred Tax Assets Tax Credit Carryforwards
DeferredTaxAssetsTaxCreditCarryforwards
7174000 USD
CY2017Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Share Based Compensation Cost
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2872000 USD
CY2018Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Share Based Compensation Cost
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost
2967000 USD
CY2017Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals
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2028000 USD
CY2018Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals
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1876000 USD
CY2017Q4 us-gaap Deferred Tax Assets Valuation Allowance
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74010000 USD
CY2018Q4 us-gaap Deferred Tax Assets Valuation Allowance
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79222000 USD
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75000 USD
CY2018Q4 us-gaap Deferred Tax Liabilities
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46000 USD
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115000 USD
CY2018Q4 us-gaap Deferred Tax Liabilities Other
DeferredTaxLiabilitiesOther
64000 USD
CY2016 us-gaap Defined Benefit Plan Contributions By Employer
DefinedBenefitPlanContributionsByEmployer
400000 USD
CY2017 us-gaap Defined Benefit Plan Contributions By Employer
DefinedBenefitPlanContributionsByEmployer
600000 USD
CY2018 us-gaap Defined Benefit Plan Contributions By Employer
DefinedBenefitPlanContributionsByEmployer
600000 USD
CY2016 us-gaap Depreciation
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1734000 USD
CY2017 us-gaap Depreciation
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1042000 USD
CY2018 us-gaap Depreciation
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1147000 USD
CY2016 us-gaap Earnings Per Share Basic And Diluted
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-0.21
CY2017 us-gaap Earnings Per Share Basic And Diluted
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-0.50
CY2018 us-gaap Earnings Per Share Basic And Diluted
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-0.21
CY2017Q4 us-gaap Employee Related Liabilities Current
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4753000 USD
CY2018Q4 us-gaap Employee Related Liabilities Current
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5272000 USD
CY2018Q4 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions
3500000 USD
CY2018 us-gaap Equity Securities Fv Ni Unrealized Gain
EquitySecuritiesFvNiUnrealizedGain
25000 USD
CY2018 us-gaap Equity Securities Fv Ni Unrealized Loss
EquitySecuritiesFvNiUnrealizedLoss
0 USD
CY2016 us-gaap Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
42000 USD
CY2017 us-gaap Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
-9000 USD
CY2018 us-gaap Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
-8000 USD
CY2016 us-gaap Gains Losses On Extinguishment Of Debt
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0 USD
CY2017 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
207000 USD
CY2018 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
0 USD
CY2017Q4 us-gaap Goodwill
Goodwill
3241000 USD
CY2018Q4 us-gaap Goodwill
Goodwill
3241000 USD
CY2018Q4 us-gaap Goodwill
Goodwill
3200000 USD
CY2016 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 USD
CY2017 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 USD
CY2018 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 USD
CY2016 us-gaap Impairment Of Long Lived Assets Held For Use
ImpairmentOfLongLivedAssetsHeldForUse
0 USD
CY2017 us-gaap Impairment Of Long Lived Assets Held For Use
ImpairmentOfLongLivedAssetsHeldForUse
0 USD
CY2018 us-gaap Impairment Of Long Lived Assets Held For Use
ImpairmentOfLongLivedAssetsHeldForUse
0 USD
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic
-8174000 USD
CY2017 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic
-22994000 USD
CY2018 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic
-10653000 USD
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
-424000 USD
CY2017 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
79000 USD
CY2018 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
-262000 USD
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
-8598000 USD
CY2017 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
-22915000 USD
CY2018 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
-10915000 USD
CY2016 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-40000 USD
CY2017 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
81000 USD
CY2018 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-37000 USD
CY2016 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
1901000 USD
CY2017 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
-26058000 USD
CY2018 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
4301000 USD
CY2016 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
IncomeTaxReconciliationChangeInEnactedTaxRate
0 USD
CY2017 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
IncomeTaxReconciliationChangeInEnactedTaxRate
34100000 USD
CY2018 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
IncomeTaxReconciliationChangeInEnactedTaxRate
0 USD
CY2016 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
IncomeTaxReconciliationForeignIncomeTaxRateDifferential
30000 USD
CY2017 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
IncomeTaxReconciliationForeignIncomeTaxRateDifferential
-2000 USD
CY2018 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
IncomeTaxReconciliationForeignIncomeTaxRateDifferential
-17000 USD
CY2016 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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-2924000 USD
CY2017 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
-7791000 USD
CY2018 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
-2292000 USD
CY2016 us-gaap Income Tax Reconciliation Nondeductible Expense Other
IncomeTaxReconciliationNondeductibleExpenseOther
405000 USD
CY2017 us-gaap Income Tax Reconciliation Nondeductible Expense Other
IncomeTaxReconciliationNondeductibleExpenseOther
326000 USD
CY2018 us-gaap Income Tax Reconciliation Nondeductible Expense Other
IncomeTaxReconciliationNondeductibleExpenseOther
-3000 USD
CY2016 us-gaap Income Tax Reconciliation Nondeductible Expense Share Based Compensation Cost
IncomeTaxReconciliationNondeductibleExpenseShareBasedCompensationCost
327000 USD
CY2017 us-gaap Income Tax Reconciliation Nondeductible Expense Share Based Compensation Cost
IncomeTaxReconciliationNondeductibleExpenseShareBasedCompensationCost
-216000 USD
CY2018 us-gaap Income Tax Reconciliation Nondeductible Expense Share Based Compensation Cost
IncomeTaxReconciliationNondeductibleExpenseShareBasedCompensationCost
-2587000 USD
CY2016 us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
127000 USD
CY2017 us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
48000 USD
CY2018 us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
222000 USD
CY2016 us-gaap Income Tax Reconciliation Tax Credits Research
IncomeTaxReconciliationTaxCreditsResearch
161000 USD
CY2017 us-gaap Income Tax Reconciliation Tax Credits Research
IncomeTaxReconciliationTaxCreditsResearch
399000 USD
CY2018 us-gaap Income Tax Reconciliation Tax Credits Research
IncomeTaxReconciliationTaxCreditsResearch
499000 USD
CY2016 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
5000 USD
CY2017 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
32000 USD
CY2018 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
5000 USD
CY2016 us-gaap Increase Decrease In Accounts Payable
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942000 USD
CY2017 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
-801000 USD
CY2018 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
-524000 USD
CY2016 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
-1405000 USD
CY2017 us-gaap Increase Decrease In Accounts Receivable
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5298000 USD
CY2018 us-gaap Increase Decrease In Accounts Receivable
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-960000 USD
CY2016 us-gaap Increase Decrease In Contract With Customer Asset
IncreaseDecreaseInContractWithCustomerAsset
0 USD
CY2017 us-gaap Increase Decrease In Contract With Customer Asset
IncreaseDecreaseInContractWithCustomerAsset
0 USD
CY2018 us-gaap Increase Decrease In Contract With Customer Asset
IncreaseDecreaseInContractWithCustomerAsset
35000 USD
CY2016 us-gaap Increase Decrease In Contract With Customer Liability
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-6442000 USD
CY2017 us-gaap Increase Decrease In Contract With Customer Liability
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11017000 USD
CY2018 us-gaap Increase Decrease In Contract With Customer Liability
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-10631000 USD
CY2016 us-gaap Increase Decrease In Employee Related Liabilities
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983000 USD
CY2017 us-gaap Increase Decrease In Employee Related Liabilities
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439000 USD
CY2018 us-gaap Increase Decrease In Employee Related Liabilities
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519000 USD
CY2016 us-gaap Increase Decrease In Inventories
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-167000 USD
CY2017 us-gaap Increase Decrease In Inventories
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210000 USD
CY2018 us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-447000 USD
CY2016 us-gaap Increase Decrease In Other Accrued Liabilities
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-593000 USD
CY2017 us-gaap Increase Decrease In Other Accrued Liabilities
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1399000 USD
CY2018 us-gaap Increase Decrease In Other Accrued Liabilities
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-17000 USD
CY2016 us-gaap Increase Decrease In Other Noncurrent Assets
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-52000 USD
CY2017 us-gaap Increase Decrease In Other Noncurrent Assets
IncreaseDecreaseInOtherNoncurrentAssets
44000 USD
CY2018 us-gaap Increase Decrease In Other Noncurrent Assets
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-228000 USD
CY2016 us-gaap Increase Decrease In Other Noncurrent Liabilities
IncreaseDecreaseInOtherNoncurrentLiabilities
0 USD
CY2017 us-gaap Increase Decrease In Other Noncurrent Liabilities
IncreaseDecreaseInOtherNoncurrentLiabilities
0 USD
CY2018 us-gaap Increase Decrease In Other Noncurrent Liabilities
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-904000 USD
CY2016 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-7000 USD
CY2017 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-157000 USD
CY2018 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
37000 USD
CY2016 us-gaap Interest Paid Net
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14000 USD
CY2017 us-gaap Interest Paid Net
InterestPaidNet
141000 USD
CY2018 us-gaap Interest Paid Net
InterestPaidNet
84000 USD
CY2017Q4 us-gaap Inventory Finished Goods
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825000 USD
CY2018Q4 us-gaap Inventory Finished Goods
InventoryFinishedGoods
377000 USD
CY2017Q4 us-gaap Inventory Net
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1036000 USD
CY2018Q4 us-gaap Inventory Net
InventoryNet
589000 USD
CY2017Q4 us-gaap Inventory Raw Materials
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158000 USD
CY2018Q4 us-gaap Inventory Raw Materials
InventoryRawMaterials
165000 USD
CY2017Q4 us-gaap Inventory Work In Process
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53000 USD
CY2018Q4 us-gaap Inventory Work In Process
InventoryWorkInProcess
47000 USD
CY2016 us-gaap Investment Income Interest
InvestmentIncomeInterest
60000 USD
CY2017 us-gaap Investment Income Interest
InvestmentIncomeInterest
147000 USD
CY2018 us-gaap Investment Income Interest
InvestmentIncomeInterest
671000 USD
CY2016 us-gaap Lease And Rental Expense
LeaseAndRentalExpense
2900000 USD
CY2017 us-gaap Lease And Rental Expense
LeaseAndRentalExpense
3200000 USD
CY2018 us-gaap Lease And Rental Expense
LeaseAndRentalExpense
3200000 USD
CY2017Q4 us-gaap Lease Incentive Payable Current
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425000 USD
CY2018Q4 us-gaap Lease Incentive Payable Current
LeaseIncentivePayableCurrent
425000 USD
CY2016Q4 us-gaap Lessee Finance Lease Lease Not Yet Commenced Term Of Contract1
LesseeFinanceLeaseLeaseNotYetCommencedTermOfContract1
P3Y
CY2017Q2 us-gaap Lessee Finance Lease Lease Not Yet Commenced Term Of Contract1
LesseeFinanceLeaseLeaseNotYetCommencedTermOfContract1
P3Y
CY2017Q4 us-gaap Liabilities
Liabilities
29078000 USD
CY2018Q4 us-gaap Liabilities
Liabilities
22977000 USD
CY2017Q4 us-gaap Liabilities And Stockholders Equity
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53625000 USD
CY2018Q4 us-gaap Liabilities And Stockholders Equity
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79283000 USD
CY2017Q4 us-gaap Liabilities Current
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24952000 USD
CY2018Q4 us-gaap Liabilities Current
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18113000 USD
CY2017Q4 us-gaap Marketable Securities Noncurrent
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671000 USD
CY2018Q4 us-gaap Marketable Securities Noncurrent
MarketableSecuritiesNoncurrent
588000 USD
CY2017Q4 us-gaap Money Market Funds At Carrying Value
MoneyMarketFundsAtCarryingValue
6800000 USD
CY2018Q4 us-gaap Money Market Funds At Carrying Value
MoneyMarketFundsAtCarryingValue
31200000 USD
CY2016 us-gaap Net Cash Provided By Used In Financing Activities
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-490000 USD
CY2017 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
21650000 USD
CY2018 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
38569000 USD
CY2016 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-846000 USD
CY2017 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-983000 USD
CY2018 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-2766000 USD
CY2016 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-1860000 USD
CY2017 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-8755000 USD
CY2018 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-14094000 USD
CY2016 us-gaap Net Income Loss
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-8558000 USD
CY2017 us-gaap Net Income Loss
NetIncomeLoss
-22996000 USD
CY2018 us-gaap Net Income Loss
NetIncomeLoss
-10878000 USD
CY2016 us-gaap Noncash Or Part Noncash Acquisition Fixed Assets Acquired1
NoncashOrPartNoncashAcquisitionFixedAssetsAcquired1
0 USD
CY2017 us-gaap Noncash Or Part Noncash Acquisition Fixed Assets Acquired1
NoncashOrPartNoncashAcquisitionFixedAssetsAcquired1
862000 USD
CY2018 us-gaap Noncash Or Part Noncash Acquisition Fixed Assets Acquired1
NoncashOrPartNoncashAcquisitionFixedAssetsAcquired1
0 USD
CY2017 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 segment
CY2018 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
2 segment
CY2018 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
2 segment
CY2016 us-gaap Operating Expenses
OperatingExpenses
57401000 USD
CY2017 us-gaap Operating Expenses
OperatingExpenses
72994000 USD
CY2018 us-gaap Operating Expenses
OperatingExpenses
71889000 USD
CY2016 us-gaap Operating Income Loss
OperatingIncomeLoss
-8564000 USD
CY2017 us-gaap Operating Income Loss
OperatingIncomeLoss
-22970000 USD
CY2018 us-gaap Operating Income Loss
OperatingIncomeLoss
-11295000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
4523000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due Current
OperatingLeasesFutureMinimumPaymentsDueCurrent
3280000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due Future Minimum Sublease Rentals
OperatingLeasesFutureMinimumPaymentsDueFutureMinimumSubleaseRentals
900000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Five Years
OperatingLeasesFutureMinimumPaymentsDueInFiveYears
0 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Four Years
OperatingLeasesFutureMinimumPaymentsDueInFourYears
41000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
490000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
712000 USD
CY2016 us-gaap Operating Leases Rent Expense Sublease Rentals1
OperatingLeasesRentExpenseSubleaseRentals1
1200000 USD
CY2017 us-gaap Operating Leases Rent Expense Sublease Rentals1
OperatingLeasesRentExpenseSubleaseRentals1
1400000 USD
CY2018 us-gaap Operating Leases Rent Expense Sublease Rentals1
OperatingLeasesRentExpenseSubleaseRentals1
1100000 USD
CY2017Q4 us-gaap Other Accrued Liabilities Current And Noncurrent
OtherAccruedLiabilitiesCurrentAndNoncurrent
345000 USD
CY2018Q4 us-gaap Other Accrued Liabilities Current And Noncurrent
OtherAccruedLiabilitiesCurrentAndNoncurrent
575000 USD
CY2018Q4 us-gaap Other Assets Miscellaneous Noncurrent
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265000 USD
CY2017Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
302000 USD
CY2018Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
1051000 USD
CY2016 us-gaap Other Comprehensive Income Availableforsale Securities Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeAvailableforsaleSecuritiesAdjustmentNetOfTaxPortionAttributableToParent
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9.56
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24000 USD
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400000 USD
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300000 USD
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;text-align:left;padding-left:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Concentrations of Credit Risk</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, contract assets, equity securities, and restricted cash. Cash that is not required for immediate operating needs is invested principally in money market funds. Cash and cash equivalents are invested through banks and other financial institutions in the United States, India, and the Netherlands. Such deposits in those countries may be in excess of insured limits.</font></div></div>
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;"></font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Description of Business</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In these notes to the consolidated financial statements, the &#8220;Company,&#8221; &#8220;we,&#8221; &#8220;us,&#8217;&#8221; and &#8220;our&#8221; refers to Codexis, Inc. and its subsidiaries on a consolidated basis.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We discover, develop and sell proteins that deliver value to our clients in a growing set of industries. We view proteins as a vast untapped source of value-creating materials, and we are using our proven technologies, which have been continuously improved over our fifteen year history, to commercialize an increasing number of novel proteins, both as proprietary Codexis products and in partnership with our customers.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are a pioneer in the harnessing of computational technologies to drive biology advancements. Over the last fifteen years, we have made substantial investments in the development of our CodeEvolver</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> protein engineering technology platform, the primary source of our competitive advantage. Our technology platform is powered by proprietary, artificial intelligence-based, computational algorithms that rapidly mine our large and continuously growing library of protein variants&#8217; performance attributes. These computational outputs enable increasingly reliable predictions for next generation protein variants to be engineered, enabling delivery of targeted performance enhancements in a time-efficient manner. In addition to its computational prowess, our CodeEvolver</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> protein engineering technology platform integrates additional modular competencies, including robotic high-throughput screening and genomic sequencing, organic chemistry and process development which are all coordinated to create our novel protein innovations.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our approach to developing commercially viable biocatalytic manufacturing processes begins by conceptually designing the most cost-effective and practical process for a targeted product. We then develop optimized protein catalysts to enable that process design, using our CodeEvolver</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> protein engineering platform technology. Engineered protein catalyst candidates - many thousands for each protein engineering project - are then rapidly screened and validated in high throughput screening under relevant manufacturing operating conditions. This approach results in an optimized protein catalyst enabling cost-efficient processes that typically are relatively simple to run in conventional manufacturing equipment. This also allows for the efficient technical transfer of our process to our manufacturing partners.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The successful embodiment of our CodeEvolver</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> protein engineering technology platform in commercial manufacturing processes requires well-integrated expertise in a number of technical disciplines. In addition to those directly involved in practicing our CodeEvolver</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> protein engineering platform technology, such as molecular biology, enzymology, microbiology, cellular engineering, metabolic engineering, bioinformatics, biochemistry and high throughput analytical chemistry, our process development projects also involve integrated expertise in organic chemistry, chemical process development, chemical engineering, fermentation process development and fermentation engineering. Our integrated, multi-disciplinary approach to biocatalyst and process development is a critical success factor for our company.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We initially commercialized our CodeEvolver</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> protein engineering technology platform and products in the pharmaceuticals market, which remains our primary business focus. Our customers, which include many large global pharmaceutical companies, use our technology, products and services in their manufacturing processes and process development.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We have also used the technology to develop protein catalysts for use in the fine chemicals market. The fine chemicals market consists of several large market verticals, including food and food ingredients, animal feed, flavors, fragrances, and agricultural chemicals.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We have also begun using the CodeEvolver</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> protein engineering technology platform to develop early stage, novel biotherapeutic product candidates, both for our customers and for our own business, most notably our lead program for the potential treatment of PKU in humans. PKU is an inherited metabolic disorder in which the enzyme that converts the essential amino acid phenylalanine into tyrosine is deficient. In October 2017, we entered into a Global Development, Option and License Agreement with Nestec, Ltd. (&#8220;Nestl&#233; Health Science&#8221;) to advance CDX-6114, our enzyme biotherapeutic product candidate for the potential treatment of PKU. In February 2019, Nestl&#233; Health Science exercised its option to obtain an exclusive license to develop and commercialize CDX-6114.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2018, we entered into a strategic agreement (the "Porton Agreement") with Porton Pharma Solutions, Ltd. ("Porton") to license key elements of our platform technology to Porton&#8217;s global custom intermediate and active pharmaceutical ingredients ("API") development and manufacturing business. This gives us access to a wide variety of small and medium-sized pharmaceutical customers.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are also using our technology to develop enzymes for customers using next generation sequencing ("NGS") and polymerase chain reaction ("PCR/qPCR") for </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">in vitro</font><font style="font-family:inherit;font-size:10pt;"> molecular diagnostic and genomic research applications. Our first enzyme is a ligase</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;background-color:#ffffff;">which we began marketing to customers in 2018.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Below are brief descriptions of our business segments:</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Performance Enzymes</font></div><div style="line-height:120%;padding-top:8px;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We initially commercialized our CodeEvolver</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> protein engineering technology platform and products in the pharmaceuticals market, and to date this continues to be our largest market served. Our customers, which include many large global pharmaceutical companies, use our technology, products and services in their manufacturing processes and process development. We have also used the technology to develop customized enzymes for use in other industrial markets. These markets consist of several large industrial verticals, including food and food ingredients, animal feed, flavors, fragrances, and agricultural chemicals. We also use our technology to develop enzymes for customers using NGS and PCR/qPCR for </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">in vitro</font><font style="font-family:inherit;font-size:10pt;"> molecular diagnostic and molecular biology research applications. In April 2018, we entered into the Porton Agreement related to our strategic collaboration with Porton to license key elements of our world-leading biocatalyst technology for use in Porton&#8217;s global custom intermediate and API development and manufacturing business. </font></div><div style="line-height:120%;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-bottom:4px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Novel Biotherapeutics</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are also targeting new opportunities in the pharmaceutical industry to discover, improve, and/or develop biotherapeutic drug candidates. We believe that our CodeEvolver</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> protein engineering platform technology can be used to discover novel biotherapeutic drug candidates that will target human diseases that are in need of improved therapeutic interventions. Similarly, we believe that we can deploy our platform technology to improve specific characteristics of a customer&#8217;s pre-existing biotherapeutic drug candidate, such as its activity, stability or immunogenicity. Most notable is our lead program for the potential treatment of hyperphenylalaninemia (&#8220;HPA&#8221;) (also referred to as PKU) in humans. PKU is an inherited metabolic disorder in which the enzyme that converts the essential amino acid phenylalanine into tyrosine is deficient. In October 2017, we announced a strategic collaboration with Nestl&#233; Health Science to advance CDX-6114, our own novel orally administrable enzyme therapeutic candidate for the potential treatment of PKU. In July 2018, we announced that we had dosed the first subjects in a first-in-human Phase 1a dose-escalation trial with CDX-6114, which was conducted in Australia. In November 2018, we announced top-line results from the Phase 1a study in healthy volunteers with CDX-6114. In December 2018, Nestl&#233; Health Science became obligated to pay us an additional </font><font style="font-family:inherit;font-size:10pt;">$1.0 million</font><font style="font-family:inherit;font-size:10pt;"> within </font><font style="font-family:inherit;font-size:10pt;">60 days</font><font style="font-family:inherit;font-size:10pt;"> after the achievement of a milestone relating to formulation of CDX-6114. In January 2019, we received notice from the U.S. Food and Drug Administration (the &#8220;FDA&#8221;) that it had completed its review of our investigational new drug application (&#8220;IND&#8221;) for CDX-6114 and concluded that we may proceed with the proposed Phase 1b multiple ascending dose study in healthy volunteers in the United States. In February 2019, Nestl&#233; Health Science exercised its option to obtain an exclusive, worldwide, royalty-bearing, sub-licensable license for the global development and commercialization of CDX-6114 for the management of PKU. As a result of the option exercise, Nestl&#233; Health Science is obligated to pay us </font><font style="font-family:inherit;font-size:10pt;">$3.0 million</font><font style="font-family:inherit;font-size:10pt;"> within </font><font style="font-family:inherit;font-size:10pt;">60 days</font><font style="font-family:inherit;font-size:10pt;"> after exercise of the option. Upon exercising its option, Nestl&#233; Health Science has assumed all responsibilities for future clinical development and commercialization of CDX-6114, with the exception of the completion of an extension study, CDX - 6114-004, which is expected to be completed in the second quarter of 2019. See Note 16, &#8220;Subsequent Events&#8221; for additional details. Other potential payments from Nestl&#233; Health Science to us under the Nestl&#233; Agreement include (i) development and approval milestones of up to </font><font style="font-family:inherit;font-size:10pt;">$86.0 million</font><font style="font-family:inherit;font-size:10pt;">, (ii) sales-based milestones of up to </font><font style="font-family:inherit;font-size:10pt;">$250.0 million</font><font style="font-family:inherit;font-size:10pt;"> in the aggregate, which aggregate amount is achievable if net sales exceed </font><font style="font-family:inherit;font-size:10pt;">$1.0 billion</font><font style="font-family:inherit;font-size:10pt;"> in a single year, and (iii) tiered royalties, at percentages ranging from the middle single digits to low double-digits, of net sales of Product.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We have also developed a pipeline of other biotherapeutic drug candidates in which we expect to continue to make additional investments with the aim of advancing additional product candidates targeting other therapeutic areas.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For additional discussion of our business segments, see Note 15, "Segment, Geographical and Other Revenue Information."</font></div></div>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;text-align:left;padding-left:16px;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:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. We regularly assess these estimates which primarily affect revenue recognition, accounts receivable, inventories, the valuation of equity securities, goodwill arising out of business acquisitions, accrued liabilities, stock awards and the valuation allowances associated with deferred tax assets. Actual results could differ from those estimates and such differences may be material to the consolidated financial statements.</font></div></div>

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