2020 Q1 Form 10-K Financial Statement

#000161883520000047 Filed on March 12, 2020

View on sec.gov

Income Statement

Concept 2020 Q1 2019 Q4 2018 Q4
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue $0.00
YoY Change
Gross Profit $0.00
YoY Change
Gross Profit Margin
Selling, General & Admin $15.00M $9.440M $5.210M
YoY Change 161.14% 81.19% 157.92%
% of Gross Profit
Research & Development $4.247M $3.430M $9.770M
YoY Change -46.17% -64.89% 2691.43%
% of Gross Profit
Depreciation & Amortization $70.00K $60.00K $60.00K
YoY Change 0.0% 0.0% 200.0%
% of Gross Profit
Operating Expenses $19.24M $12.87M $14.98M
YoY Change 41.17% -14.08% -2.38%
Operating Profit -$19.24M
YoY Change 41.17%
Interest Expense $0.00 $120.0K $30.00K
YoY Change -100.0% 300.0% 200.0%
% of Operating Profit
Other Income/Expense, Net $98.00K $155.0K $0.00
YoY Change -102.21% -100.0%
Pretax Income -$19.15M -$12.72M -$14.98M
YoY Change 5.97% -15.09% 534.75%
Income Tax $0.00 $0.00 $0.00
% Of Pretax Income
Net Earnings -$19.15M -$12.72M -$14.98M
YoY Change 5.97% -15.11% -23.15%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share -$397.3K -$251.2K -$579.3K
COMMON SHARES
Basic Shares Outstanding 49.59M shares 46.81M shares 25.87M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2020 Q1 2019 Q4 2018 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $10.40M $23.80M $1.300M
YoY Change 5100.0% 1730.77% -61.76%
Cash & Equivalents $8.785M $15.57M $1.330M
Short-Term Investments $1.600M $8.200M
Other Short-Term Assets $3.000M $1.900M $700.0K
YoY Change 200.0% 171.43% 16.67%
Inventory $0.00
Prepaid Expenses
Receivables $0.00
Other Receivables
Total Short-Term Assets $13.72M $26.42M $2.478M
YoY Change 870.77% 966.22% 5.27%
LONG-TERM ASSETS
Property, Plant & Equipment $622.0K $394.0K $593.0K
YoY Change 18.03% -33.56% -30.07%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $1.044M $1.320M $939.0K
YoY Change 60.86% 40.58% 25.2%
Total Long-Term Assets $1.928M $1.874M $1.532M
YoY Change 5.88% 22.32% -4.13%
TOTAL ASSETS
Total Short-Term Assets $13.72M $26.42M $2.478M
Total Long-Term Assets $1.928M $1.874M $1.532M
Total Assets $15.65M $28.30M $4.010M
YoY Change 383.77% 605.61% 1.47%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $7.120M $6.008M $8.882M
YoY Change -40.33% -32.36% -1.3%
Accrued Expenses $2.499M $2.784M $11.51M
YoY Change -78.54% -75.82% -4.74%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $4.000M
YoY Change -100.0% -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $14.46M $12.66M $27.33M
YoY Change -54.93% -53.68% -73.56%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $200.0K $0.00 $0.00
YoY Change -100.0%
Total Long-Term Liabilities $200.0K $0.00 $0.00
YoY Change -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $14.46M $12.66M $27.33M
Total Long-Term Liabilities $200.0K $0.00 $0.00
Total Liabilities $14.62M $12.66M $27.37M
YoY Change -54.42% -53.74% -73.59%
SHAREHOLDERS EQUITY
Retained Earnings -$532.3M -$513.2M -$433.1M
YoY Change 17.97% 18.48% 40.96%
Common Stock $533.3M $528.8M $409.8M
YoY Change 26.28% 29.05% 2211.15%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.021M $15.64M -$23.36M
YoY Change
Total Liabilities & Shareholders Equity $15.65M $28.30M $4.010M
YoY Change 383.77% 605.61% 1.47%

Cashflow Statement

Concept 2020 Q1 2019 Q4 2018 Q4
OPERATING ACTIVITIES
Net Income -$19.15M -$12.72M -$14.98M
YoY Change 5.97% -15.11% -23.15%
Depreciation, Depletion And Amortization $70.00K $60.00K $60.00K
YoY Change 0.0% 0.0% 200.0%
Cash From Operating Activities -$14.88M -$13.45M -$10.25M
YoY Change 93.75% 31.22% 334.32%
INVESTING ACTIVITIES
Capital Expenditures $95.00K -$140.0K -$10.00K
YoY Change 1300.0%
Acquisitions
YoY Change
Other Investing Activities $6.900M -$4.480M $0.00
YoY Change 2660.0%
Cash From Investing Activities $6.902M -$4.630M -$10.00K
YoY Change 2660.8% 46200.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $1.364M 2.200M -500.0K
YoY Change -78.24% -540.0% -1766.67%
NET CHANGE
Cash From Operating Activities -$14.88M -13.45M -10.25M
Cash From Investing Activities $6.902M -4.630M -10.00K
Cash From Financing Activities $1.364M 2.200M -500.0K
Net Change In Cash -$6.610M -15.88M -10.76M
YoY Change 469.34% 47.58% 361.8%
FREE CASH FLOW
Cash From Operating Activities -$14.88M -$13.45M -$10.25M
Capital Expenditures $95.00K -$140.0K -$10.00K
Free Cash Flow -$14.97M -$13.31M -$10.24M
YoY Change 29.98% 333.9%

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747000 USD
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65205000 USD
CY2019Q4 us-gaap Deferred Tax Assets Valuation Allowance
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74717000 USD
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0 USD
CY2019Q4 us-gaap Deferred Tax Liabilities Leasing Arrangements
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34000 USD
CY2018 us-gaap Defined Contribution Plan Employer Discretionary Contribution Amount
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100000 USD
CY2019 us-gaap Defined Contribution Plan Employer Discretionary Contribution Amount
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200000 USD
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0.030
CY2018 us-gaap Depreciation And Amortization
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262000 USD
CY2019 us-gaap Depreciation And Amortization
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263000 USD
CY2018 us-gaap Depreciation Nonproduction
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300000 USD
CY2019 us-gaap Depreciation Nonproduction
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300000 USD
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1300000 USD
CY2016Q3 us-gaap Disposal Group Including Discontinued Operation Consideration
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1900000 USD
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5200000 USD
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0 USD
CY2019 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
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-0.1205
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-0.0001
CY2019 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
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0.0000
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-0.0056
CY2019 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense
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-0.0205
CY2018 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense Share Based Compensation Cost
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0.0103
CY2019 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense Share Based Compensation Cost
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0.0058
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0.0019
CY2019 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
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0.0000
CY2018 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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0.0021
CY2019 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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0.0037
CY2018 us-gaap Effective Income Tax Rate Reconciliation Tax Credits
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0.0160
CY2019 us-gaap Effective Income Tax Rate Reconciliation Tax Credits
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0.0135
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2924000 USD
CY2019Q4 us-gaap Employee Related Liabilities Current
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3670000 USD
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3300000 USD
CY2019 us-gaap Fair Value Adjustment Of Warrants
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7755000 USD
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0 USD
CY2019 us-gaap Gain Loss On Sale Of Property Plant Equipment
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CY2018 us-gaap General And Administrative Expense
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34227000 USD
CY2019 us-gaap General And Administrative Expense
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30512000 USD
CY2019Q4 us-gaap Held To Maturity Securities Accumulated Unrecognized Holding Gain
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42000 USD
CY2018Q4 us-gaap Held To Maturity Securities
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0 USD
CY2019Q4 us-gaap Held To Maturity Securities
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8233000 USD
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8275000 USD
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CY2019 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
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-125710000 USD
CY2019 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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-80029000 USD
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CY2019 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
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0 USD
CY2018 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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CY2019 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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CY2018 us-gaap Income Tax Expense Benefit
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2000 USD
CY2018 us-gaap Income Taxes Paid
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2000 USD
CY2019 us-gaap Income Taxes Paid
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4000 USD
CY2019 us-gaap Income Tax Expense Benefit
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4000 USD
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27329000 USD
CY2019Q4 us-gaap Liabilities Current
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12659000 USD
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CY2019 us-gaap Liabilities Fair Value Adjustment
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0 USD
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0 claim
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3799000 USD
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-2931000 USD
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CY2019 us-gaap Increase Decrease In Accrued Liabilities And Other Operating Liabilities
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307000 USD
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746000 USD
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11000 USD
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952000 USD
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127000 USD
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458000 USD
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642000 USD
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0.12
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P5Y
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201000 USD
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4000 USD
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P5Y
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P0Y3M
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12659000 USD
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4010000 USD
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28295000 USD
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78076000 USD
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2143000 USD
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578000 USD
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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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CY2018 us-gaap Noncash Or Part Noncash Acquisition Value Of Assets Acquired1
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46000 USD
CY2019 us-gaap Noncash Or Part Noncash Acquisition Value Of Assets Acquired1
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0 USD
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0 USD
CY2018Q3 us-gaap Nonoperating Income Expense
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2000 USD
CY2018Q4 us-gaap Nonoperating Income Expense
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0 USD
CY2018 us-gaap Nonoperating Income Expense
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CY2019Q1 us-gaap Nonoperating Income Expense
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155000 USD
CY2019 us-gaap Nonoperating Income Expense
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CY2018Q4 us-gaap Notes Issued1
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4000000 USD
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4010000 USD
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23242000 USD
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18433000 USD
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14981000 USD
CY2018 us-gaap Operating Expenses
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13632000 USD
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11941000 USD
CY2019Q3 us-gaap Operating Expenses
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14297000 USD
CY2019Q4 us-gaap Operating Expenses
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12872000 USD
CY2019 us-gaap Operating Expenses
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52742000 USD
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737000 USD
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200000 USD
CY2019Q4 us-gaap Operating Lease Liability
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197000 USD
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197000 USD
CY2019 us-gaap Operating Lease Payments
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834000 USD
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200000 USD
CY2019Q4 us-gaap Operating Lease Right Of Use Asset
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160000 USD
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978000 USD
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777000 USD
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520000 USD
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547000 USD
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939000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Two Years
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201000 USD
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0 USD
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1197000 USD
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1243000 USD
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593000 USD
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394000 USD
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1320000 USD
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CY2019 us-gaap Other Nonoperating Income Expense
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301000 USD
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200000 USD
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157000 USD
CY2019 us-gaap Payments Of Dividends Preferred Stock And Preference Stock
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0 USD
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1418000 USD
CY2019 us-gaap Payments Of Financing Costs
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1286000 USD
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1500000 USD
CY2018 us-gaap Payments Related To Tax Withholding For Share Based Compensation
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1592000 USD
CY2019 us-gaap Payments Related To Tax Withholding For Share Based Compensation
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1566000 USD
CY2018 us-gaap Payments To Acquire Held To Maturity Securities
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0 USD
CY2019 us-gaap Payments To Acquire Held To Maturity Securities
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8233000 USD
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7000 USD
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164000 USD
CY2018Q4 us-gaap Preferred Stock Value
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0 USD
CY2019Q4 us-gaap Preferred Stock Value
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0 USD
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717000 USD
CY2019Q4 us-gaap Prepaid Expense And Other Assets Current
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2313000 USD
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250000 USD
CY2019 us-gaap Proceeds From Divestiture Of Businesses Net Of Cash Divested
ProceedsFromDivestitureOfBusinessesNetOfCashDivested
250000 USD
CY2018 us-gaap Proceeds From Issuance Of Private Placement
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20000000 USD
CY2019 us-gaap Proceeds From Issuance Of Private Placement
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75400000 USD
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42000 USD
CY2019 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
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305000 USD
CY2018 us-gaap Proceeds From Sale Of Property Plant And Equipment
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0 USD
CY2019 us-gaap Proceeds From Sale Of Property Plant And Equipment
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32000 USD
CY2016Q3 us-gaap Proceeds From Sales Of Business Affiliate And Productive Assets
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600000 USD
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42000 USD
CY2019 us-gaap Proceeds From Stock Options Exercised
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95000 USD
CY2018 us-gaap Proceeds From Warrant Exercises
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0 USD
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6273000 USD
CY2019 us-gaap Repayments Of Notes Payable
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4010000 USD
CY2018 us-gaap Research And Development Expense
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43415000 USD
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ResearchAndDevelopmentExpense
22230000 USD
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431000 USD
CY2019Q4 us-gaap Restricted Cash Current
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304000 USD
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431000 USD
CY2019Q4 us-gaap Restricted Cash Noncurrent
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304000 USD
CY2018Q4 us-gaap Retained Earnings Accumulated Deficit
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CY2019Q4 us-gaap Retained Earnings Accumulated Deficit
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CY2019Q4 us-gaap Retained Earnings Accumulated Deficit
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CY2018 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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0 USD
CY2019 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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802000 USD
CY2019Q4 us-gaap Security Deposit
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750000 USD
CY2018 us-gaap Share Based Compensation
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17842000 USD
CY2019 us-gaap Share Based Compensation
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8579000 USD
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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0
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.870
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.763
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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0.029
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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0.018
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Maximum Employee Subscription Rate
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0.15
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28333 shares
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
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12000 USD
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
133000 USD
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
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3.99
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
3.50
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y6M
CY2019 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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P5Y10M24D
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue
4.58
CY2019 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue
3.94
CY2018 us-gaap Stock Issued1
StockIssued1
0 USD
CY2019 us-gaap Stock Issued1
StockIssued1
416000 USD
CY2019 us-gaap Stock Issued During Period Shares Employee Stock Purchase Plans
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40335 shares
CY2018 us-gaap Stock Issued During Period Value Conversion Of Convertible Securities Net Of Adjustments
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121315000 USD
CY2018 us-gaap Stock Issued During Period Value Stock Dividend
StockIssuedDuringPeriodValueStockDividend
5226000 USD
CY2018 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
42000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
-289546000 USD
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
-23356000 USD
CY2019Q4 us-gaap Stockholders Equity
StockholdersEquity
15636000 USD
CY2018 us-gaap Stockholders Equity Change In Reporting Entity
StockholdersEquityChangeInReportingEntity
1946000 USD
CY2018Q1 us-gaap Stockholders Equity Note Stock Split Conversion Ratio1
StockholdersEquityNoteStockSplitConversionRatio1
166.7000
CY2018 us-gaap Temporary Equity Accretion Of Dividends
TemporaryEquityAccretionOfDividends
223000 USD
CY2018 us-gaap Temporary Equity Dividends Adjustment
TemporaryEquityDividendsAdjustment
66000 USD
CY2019 us-gaap Temporary Equity Dividends Adjustment
TemporaryEquityDividendsAdjustment
0 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1335000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
2061000 USD
CY2019Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
2413000 USD
CY2019 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
0 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
564000 USD
CY2019 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
352000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
162000 USD
CY2018 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
0 USD
CY2019 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
0 USD
CY2018Q1 us-gaap Warrants Not Settleable In Cash Fair Value Disclosure
WarrantsNotSettleableInCashFairValueDisclosure
14100000 USD
CY2018 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
21900574 shares
CY2019 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
40228517 shares
CY2019 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Concentrations of Credit Risk</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and restricted cash. Deposits in the Company&#8217;s checking, time deposit and investment accounts are maintained in federally insured financial institutions and are subject to federally insured limits or limits set by Securities Investor Protection Corporation. The Company invests in funds through a major U.S. bank and is exposed to credit risk in the event of default to the extent of amounts recorded on the consolidated balance sheets.</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%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company has not experienced any losses in such accounts and believes it is not exposed to significant concentrations of credit risk on its cash, cash equivalents and restricted cash balances due to the financial position of the depository institutions in which these deposits are held.</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:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates</font></div><div style="line-height:120%;padding-top:8px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the notes thereto. </font></div><div style="line-height:120%;padding-top:8px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:9pt;">S</font><font style="font-family:inherit;font-size:10pt;">ignificant estimates affecting amounts reported or disclosed in the consolidated financial statements include, but not limited to: the discount rate used in estimating the fair value of the lease right-of-use (ROU) assets and lease liabilities, the measurement of the Series D 2X liquidation preference, assumptions used in estimating the fair value of warrants and Purchase Rights issued, the useful lives of property and equipment, the recoverability of long-lived assets, clinical trial accruals, and assumptions used in estimating the fair value of stock-based compensation expense. The Company&#8217;s assumptions regarding the measurement of the First Closing Warrants, the Purchase Rights, the Series D 2X liquidation preference, the lease ROU assets and lease liabilities, and stock-based compensation are more fully described in </font><a style="font-family:inherit;font-size:10pt;" href="#s496B3063D34E59E1864C4C8DE983431B"><font style="font-family:inherit;font-size:10pt;">Note 5 &#8212; Fair Value of Financial Instruments</font></a><font style="font-family:inherit;font-size:10pt;">, </font><a style="font-family:inherit;font-size:10pt;" href="#s8F38B318250258DB8B91BCE8CEBCCC46"><font style="font-family:inherit;font-size:10pt;">Note 6 &#8212; Commitments and Contingencies</font></a><font style="font-family:inherit;font-size:10pt;">, and </font><a style="font-family:inherit;font-size:10pt;" href="#s12B298797D3151D79BC693D3ABC7DB6A"><font style="font-family:inherit;font-size:10pt;">Note 12 &#8212; Stock-based Compensation</font></a><font style="font-family:inherit;font-size:10pt;">, respectively. The Company bases its estimates on historical experience and other market-specific or other relevant assumptions that it believes to be reasonable under the circumstances and adjusts when facts and circumstances dictate. The estimates are the basis for making judgments about the carrying values of assets and liabilities and recorded expenses that are not readily apparent from other sources. As future events and their effects cannot be determined with precision, actual results may materially differ from those estimates or assumptions.</font></div></div>

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