Consolidated Financial Statement Detail
|12 Months Ended|
Dec. 31, 2016
|Consolidated Financial Statement Detail [Abstract]|
|Consolidated Financial Statement Detail||
3. Consolidated Financial Statement Detail
Cash and Cash Equivalents
At December 31, 2016, cash and cash equivalents consisted of demand deposits of $21.5 million and money market funds of $4.2 million with maturities of less than 90 days at the date of purchase. At December 31, 2015, cash and cash equivalents consisted of demand deposits of $23.2 million and money market funds of $42.6 million with maturities of less than 90 days at the date of purchase.
At December 31, 2015, marketable securities of $0.5 million consisted of an investment in the common stock of a public entity. In August 2016, the Company sold its marketable securities and recognized a gain of $0.1 million in the Company’s consolidated statement of comprehensive loss. Accordingly, as of December 31, 2016, the Company did not hold any marketable securities.
Foreign Exchange Options
The Company holds debt and may incur revenue and expenses denominated in foreign currencies, which exposes it to market risk associated with foreign currency exchange rate fluctuations between the U.S. dollar and the Euro. The Company is required in the future to make principal and accrued interest payments in Euros on its €15.0 million loan from Les Laboratories Servier (“Servier”) (see Note 8). In order to manage its foreign currency exposure related to these payments, in May 2011, the Company entered into two foreign exchange option contracts to buy €1.5 million and €15.0 million in January 2014 and January 2016, respectively. By having these option contracts in place, the Company’s foreign exchange rate risk was reduced if the U.S. dollar weakens against the Euro. However, if the U.S. dollar strengthens against the Euro, the Company was not required to exercise these options, but would not receive any refund on premiums paid.
Upfront premiums paid on these foreign exchange option contracts totaled $1.5 million. The fair values of these option contracts were revalued at each reporting period and were estimated based on pricing models using readily observable inputs from actively quoted markets. The fair values of these option contracts were included in other assets on the consolidated balance sheet and changes in fair value on these contracts were included in other income (expense), net on the consolidated statements of comprehensive loss.
As of December 31, 2016, the Company has no foreign exchange option contracts outstanding. The Company recognized losses of zero, $6,000 and $0.4 million, related to the revaluation of these options for the years ended December 31, 2016, 2015, and 2014, respectively.
Trade and Other Receivables, net
Trade receivables are stated at their net realizable value. Specific allowances are recorded for doubtful accounts or based on other available information. The Company reviews their exposure to accounts receivable, including the requirement for allowances based on management’s judgment. The Company has not historically experienced any significant losses. As of December 31, 2016 and 2015, the allowance for doubtful accounts amounted to $13,000 and $0.2 million, respectively.
Trade and other receivables consisted of the following (in thousands):
Property and Equipment, net
Property and equipment, net consisted of the following (in thousands):
As of December 31, 2016, property and equipment held under capital leases, included under equipment and furniture above, amounted to $0.3 million, with accumulated amortization of $0.1 million. As of December 31, 2015, property and equipment held under capital leases, included under construction-in-progress above, amounted to $0.2 million, with accumulated amortization of zero. Depreciation and amortization expense was $0.8 million, $1.5 million, and $1.9 million for the years ended December 31, 2016, 2015, and 2014, respectively. In December 2015, the Company completed the sale of its land, building and certain equipment used for its manufacturing operations (see Note 6). The related cost and accumulated depreciation and amortization amounts of $15.9 million and $13.7 million, respectively, have been removed from the consolidated balance sheet and a gain of $3.5 million was recorded on the other income (expense), net line of the Company’s consolidated statement of comprehensive loss.
In connection with the restructuring implemented in December 2016, the Company determined that the leasehold improvements located in one of its leased facilities are no longer expected to be used by the Company. The Company determined that an impairment charge equal to the net book value of the leasehold improvements of $0.2 million should be recorded as the economic value, if any, that may be realized from the leasehold improvements would be negligible in a sublease transaction. The impairment charge is reflected within the restructuring charge in the consolidated statement of comprehensive loss for the year ended December 31, 2016. There were no impairment charges recognized during the years ended December 31, 2015 and 2014.
Accrued and Other Liabilities
Accrued and other liabilities consisted of the following (in thousands):
The entire disclosures of supplemental information, including descriptions and amounts, related to the balance sheet, income statement, and/or cash flow statement.
No definition available.