☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
71-0872999
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
200 Penobscot Drive,
|
Redwood City,
|
California
|
|
94063
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of Each Class
|
Trading Symbol(s)
|
Name of Each Exchange on Which Registered
|
Common Stock, par value $0.0001 per share
|
CDXS
|
The Nasdaq Global Select Market
|
Large accelerated filer
|
☒
|
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
|
|
Emerging growth company
|
☐
|
|
PAGE
NUMBER
|
|
|
||
PART I. FINANCIAL INFORMATION
|
||
|
|
|
ITEM 1:
|
|
|
|
||
|
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|
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|
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|
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ITEM 2:
|
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ITEM 3:
|
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ITEM 4:
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||
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ITEM 1:
|
||
ITEM 1A:
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ITEM 2:
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ITEM 3:
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ITEM 4:
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ITEM 5:
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ITEM 6:
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|
June 30,
2019 |
|
December 31,
2018 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
93,421
|
|
|
$
|
53,039
|
|
Accounts receivable, net of allowances of $34 at June 30, 2019 and December 31, 2018
|
11,814
|
|
|
11,551
|
|
||
Unbilled receivables, current
|
2,336
|
|
|
1,916
|
|
||
Inventories
|
720
|
|
|
589
|
|
||
Prepaid expenses and other current assets
|
1,950
|
|
|
1,068
|
|
||
Contract assets
|
—
|
|
|
35
|
|
||
Total current assets
|
110,241
|
|
|
68,198
|
|
||
Restricted cash
|
1,749
|
|
|
1,446
|
|
||
Equity securities
|
419
|
|
|
588
|
|
||
Right-of-use assets - Operating leases, net
|
25,240
|
|
|
—
|
|
||
Right-of-use assets - Finance leases, net
|
384
|
|
|
—
|
|
||
Property and equipment, net
|
5,312
|
|
|
4,759
|
|
||
Goodwill
|
3,241
|
|
|
3,241
|
|
||
Other non-current assets
|
207
|
|
|
1,051
|
|
||
Total assets
|
$
|
146,793
|
|
|
$
|
79,283
|
|
Liabilities and Stockholders' Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
2,164
|
|
|
$
|
3,050
|
|
Accrued compensation
|
4,551
|
|
|
5,272
|
|
||
Other accrued liabilities
|
4,059
|
|
|
4,855
|
|
||
Current portion of lease obligations - Operating leases
|
683
|
|
|
—
|
|
||
Current portion of lease obligations - Finance leases
|
183
|
|
|
—
|
|
||
Deferred revenue
|
5,851
|
|
|
4,936
|
|
||
Total current liabilities
|
17,491
|
|
|
18,113
|
|
||
Deferred revenue, net of current portion
|
3,249
|
|
|
3,352
|
|
||
Long-term lease obligations - Operating leases
|
26,147
|
|
|
—
|
|
||
Long-term lease obligations - Finance leases
|
—
|
|
|
61
|
|
||
Lease incentive obligation, net of current portion
|
—
|
|
|
35
|
|
||
Other long-term liabilities
|
1,222
|
|
|
1,416
|
|
||
Total liabilities
|
48,109
|
|
|
22,977
|
|
||
|
|
|
|
||||
Commitments and Contingencies (Note 11)
|
|
|
|
|
|
||
Stockholders' equity:
|
|
|
|
||||
Preferred stock, $0.0001 par value per share; 5,000 shares authorized; none issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock, $0.0001 par value per share; 100,000 shares authorized;
57,940 shares and 54,065 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively
|
6
|
|
|
5
|
|
||
Additional paid-in capital
|
440,795
|
|
|
386,775
|
|
||
Accumulated deficit
|
(342,117
|
)
|
|
(330,474
|
)
|
||
Total stockholders' equity
|
98,684
|
|
|
56,306
|
|
||
Total liabilities and stockholders' equity
|
$
|
146,793
|
|
|
$
|
79,283
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Product revenue
|
$
|
6,249
|
|
|
$
|
3,723
|
|
|
$
|
14,236
|
|
|
$
|
9,886
|
|
Research and development revenue
|
6,070
|
|
|
9,815
|
|
|
13,665
|
|
|
17,694
|
|
||||
Total revenues
|
12,319
|
|
|
13,538
|
|
|
27,901
|
|
|
27,580
|
|
||||
Costs and operating expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of product revenue
|
2,772
|
|
|
2,611
|
|
|
7,163
|
|
|
6,436
|
|
||||
Research and development
|
8,274
|
|
|
7,370
|
|
|
16,290
|
|
|
14,548
|
|
||||
Selling, general and administrative
|
7,896
|
|
|
7,395
|
|
|
16,311
|
|
|
15,141
|
|
||||
Total costs and operating expenses
|
18,942
|
|
|
17,376
|
|
|
39,764
|
|
|
36,125
|
|
||||
Loss from operations
|
(6,623
|
)
|
|
(3,838
|
)
|
|
(11,863
|
)
|
|
(8,545
|
)
|
||||
Interest income
|
220
|
|
|
174
|
|
|
450
|
|
|
245
|
|
||||
Other expenses, net
|
(88
|
)
|
|
(82
|
)
|
|
(211
|
)
|
|
(142
|
)
|
||||
Loss before income taxes
|
(6,491
|
)
|
|
(3,746
|
)
|
|
(11,624
|
)
|
|
(8,442
|
)
|
||||
Provision for (benefit from) income taxes
|
16
|
|
|
(11
|
)
|
|
19
|
|
|
(13
|
)
|
||||
Net loss
|
$
|
(6,507
|
)
|
|
$
|
(3,735
|
)
|
|
$
|
(11,643
|
)
|
|
$
|
(8,429
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net loss per share, basic and diluted
|
$
|
(0.12
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
(0.21
|
)
|
|
$
|
(0.17
|
)
|
Weighted average common stock shares used in computing net loss per share, basic and diluted
|
54,954
|
|
|
52,787
|
|
|
54,564
|
|
|
50,598
|
|
|
|
Common Stock
|
|
Additional
paid-in Capital |
|
Accumulated Other
Comprehensive Income (Loss) |
|
Accumulated Deficit
|
|
Total Stockholders' Equity
|
|||||||||||||
Three Months Ended June 30, 2019
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance as of April 1, 2019
|
|
54,541
|
|
|
$
|
5
|
|
|
$
|
386,815
|
|
|
$
|
—
|
|
|
$
|
(335,610
|
)
|
|
$
|
51,210
|
|
Exercise of stock options
|
|
310
|
|
|
—
|
|
|
2,067
|
|
|
—
|
|
|
—
|
|
|
2,067
|
|
|||||
Release of stock awards
|
|
40
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Employee stock-based compensation
|
|
—
|
|
|
—
|
|
|
1,988
|
|
|
—
|
|
|
—
|
|
|
1,988
|
|
|||||
Taxes paid related to net share settlement of equity awards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Issuance of common stock, net of issuance costs of $74
|
|
3,049
|
|
|
1
|
|
|
49,925
|
|
|
—
|
|
|
—
|
|
|
49,926
|
|
|||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,507
|
)
|
|
(6,507
|
)
|
|||||
Balance as of June 30, 2019
|
|
57,940
|
|
|
$
|
6
|
|
|
$
|
440,795
|
|
|
$
|
—
|
|
|
$
|
(342,117
|
)
|
|
$
|
98,684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Common Stock
|
|
Additional
paid-in Capital |
|
Accumulated Other
Comprehensive Income (Loss) |
|
Accumulated Deficit
|
|
Total Stockholders' Equity
|
|||||||||||||
Three Months Ended June 30, 2018
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance as of April 1, 2018
|
|
48,925
|
|
|
$
|
5
|
|
|
$
|
339,354
|
|
|
$
|
—
|
|
|
$
|
(324,291
|
)
|
|
$
|
15,068
|
|
Exercise of stock options
|
|
224
|
|
|
—
|
|
|
1,423
|
|
|
—
|
|
|
—
|
|
|
1,423
|
|
|||||
Release of stock awards
|
|
46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Employee stock-based compensation
|
|
—
|
|
|
—
|
|
|
2,455
|
|
|
—
|
|
|
—
|
|
|
2,455
|
|
|||||
Non-employee stock-based compensation
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Issuance of common stock, net of issuance costs of $179
|
|
4,313
|
|
|
—
|
|
|
37,317
|
|
|
—
|
|
|
—
|
|
|
37,317
|
|
|||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,735
|
)
|
|
(3,735
|
)
|
|||||
Balance as of June 30, 2018
|
|
53,508
|
|
|
$
|
5
|
|
|
$
|
380,551
|
|
|
$
|
—
|
|
|
$
|
(328,026
|
)
|
|
$
|
52,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Operating activities:
|
|
|
|
||||
Net loss
|
$
|
(11,643
|
)
|
|
$
|
(8,429
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
||||
Depreciation
|
693
|
|
|
503
|
|
||
Amortization expense - right-of-use assets - operating and finance leases
|
1,486
|
|
|
—
|
|
||
Loss (Gain) on disposal of property and equipment
|
(1
|
)
|
|
1
|
|
||
Stock-based compensation
|
4,051
|
|
|
4,437
|
|
||
Unrealized loss (gain) on investment in equity securities
|
168
|
|
|
(5
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable, net
|
(262
|
)
|
|
3,057
|
|
||
Unbilled receivables
|
365
|
|
|
(103
|
)
|
||
Inventories
|
(131
|
)
|
|
—
|
|
||
Prepaid expenses and other current assets
|
(882
|
)
|
|
(132
|
)
|
||
Contract assets
|
35
|
|
|
(554
|
)
|
||
Other non-current assets
|
59
|
|
|
79
|
|
||
Accounts payable
|
(1,625
|
)
|
|
(530
|
)
|
||
Accrued compensation
|
(721
|
)
|
|
(936
|
)
|
||
Other accrued liabilities
|
402
|
|
|
451
|
|
||
Other long term liabilities
|
(715
|
)
|
|
(514
|
)
|
||
Deferred revenue
|
812
|
|
|
(9,466
|
)
|
||
Net cash used in operating activities
|
(7,909
|
)
|
|
(12,141
|
)
|
||
Investing activities:
|
|
|
|
||||
Purchase of property and equipment
|
(1,258
|
)
|
|
(1,472
|
)
|
||
Proceeds from disposal of property and equipment
|
1
|
|
|
—
|
|
||
Net cash used in investing activities
|
(1,257
|
)
|
|
(1,472
|
)
|
||
Financing activities:
|
|
|
|
||||
Proceeds from exercises of stock options
|
2,843
|
|
|
1,858
|
|
||
Proceeds from issuance of common stock in connection with public offering, net of underwriting discounts and commission
|
—
|
|
|
37,497
|
|
||
Costs incurred in connection with public placement
|
—
|
|
|
(179
|
)
|
||
Proceeds from issuance of common stock in connection with private placement
|
50,000
|
|
|
—
|
|
||
Costs incurred in connection with private placement
|
(74
|
)
|
|
—
|
|
||
Payments of lease obligations - Finance leases
|
(119
|
)
|
|
(118
|
)
|
||
Taxes paid related to net share settlement of equity awards
|
(2,799
|
)
|
|
(3,140
|
)
|
||
Net cash provided by financing activities
|
49,851
|
|
|
35,918
|
|
||
Net increase in cash, cash equivalents and restricted cash
|
40,685
|
|
|
22,305
|
|
||
Cash, cash equivalents and restricted cash at the beginning of the period
|
54,485
|
|
|
32,776
|
|
||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
95,170
|
|
|
$
|
55,081
|
|
|
|
|
|
||||
Supplemental disclosure of cash flow information
|
|
|
|
||||
Interest paid
|
$
|
9
|
|
|
$
|
42
|
|
Income taxes paid
|
$
|
—
|
|
|
$
|
5
|
|
Purchase of property and equipment recorded in accounts payable and accrued expenses
|
$
|
773
|
|
|
$
|
67
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash and cash equivalents
|
$
|
93,421
|
|
|
$
|
53,621
|
|
Restricted cash included in non-current assets
|
1,749
|
|
|
1,460
|
|
||
Total cash, cash equivalents and restricted cash at the end of the period
|
$
|
95,170
|
|
|
$
|
55,081
|
|
|
Three months ended June 30, 2019
|
|
Three months ended June 30, 2018
|
||||||||||||||||||||
(in thousands)
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
||||||||||||
Major products and service:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Product Revenue
|
$
|
6,249
|
|
|
$
|
—
|
|
|
$
|
6,249
|
|
|
$
|
3,723
|
|
|
$
|
—
|
|
|
$
|
3,723
|
|
Research and development revenue
|
4,340
|
|
|
1,730
|
|
|
6,070
|
|
|
7,442
|
|
|
2,373
|
|
|
9,815
|
|
||||||
Total revenues
|
$
|
10,589
|
|
|
$
|
1,730
|
|
|
$
|
12,319
|
|
|
$
|
11,165
|
|
|
$
|
2,373
|
|
|
$
|
13,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Primary geographical markets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Americas
|
$
|
4,076
|
|
|
$
|
—
|
|
|
$
|
4,076
|
|
|
$
|
6,058
|
|
|
$
|
—
|
|
|
$
|
6,058
|
|
EMEA
|
3,011
|
|
|
1,730
|
|
|
4,741
|
|
|
1,435
|
|
|
2,373
|
|
|
3,808
|
|
||||||
APAC
|
3,502
|
|
|
—
|
|
|
3,502
|
|
|
3,672
|
|
|
—
|
|
|
3,672
|
|
||||||
Total revenues
|
$
|
10,589
|
|
|
$
|
1,730
|
|
|
$
|
12,319
|
|
|
$
|
11,165
|
|
|
$
|
2,373
|
|
|
$
|
13,538
|
|
|
Six months ended June 30, 2019
|
|
Six months ended June 30, 2018
|
||||||||||||||||||||
(in thousands)
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
||||||||||||
Major products and service:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Product Revenue
|
$
|
14,236
|
|
|
$
|
—
|
|
|
$
|
14,236
|
|
|
$
|
9,886
|
|
|
$
|
—
|
|
|
$
|
9,886
|
|
Research and development revenue
|
6,440
|
|
|
7,225
|
|
|
13,665
|
|
|
12,008
|
|
|
5,686
|
|
|
17,694
|
|
||||||
Total revenues
|
$
|
20,676
|
|
|
$
|
7,225
|
|
|
$
|
27,901
|
|
|
$
|
21,894
|
|
|
$
|
5,686
|
|
|
$
|
27,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Primary geographical markets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Americas
|
$
|
6,913
|
|
|
$
|
—
|
|
|
$
|
6,913
|
|
|
$
|
9,655
|
|
|
$
|
—
|
|
|
$
|
9,655
|
|
EMEA
|
5,241
|
|
|
7,225
|
|
|
12,466
|
|
|
3,114
|
|
|
5,686
|
|
|
8,800
|
|
||||||
APAC
|
8,522
|
|
|
—
|
|
|
8,522
|
|
|
9,125
|
|
|
—
|
|
|
9,125
|
|
||||||
Total revenues
|
$
|
20,676
|
|
|
$
|
7,225
|
|
|
$
|
27,901
|
|
|
$
|
21,894
|
|
|
$
|
5,686
|
|
|
$
|
27,580
|
|
|
January 1, 2019 balance
|
|
Additions
|
|
Deductions (1)
|
|
June 30, 2019 balance
|
||||||
Contract Assets
|
$
|
35
|
|
|
3,510
|
|
|
(3,545
|
)
|
|
$
|
—
|
|
Unbilled receivables, current
|
$
|
1,916
|
|
|
2,758
|
|
|
(2,338
|
)
|
|
$
|
2,336
|
|
Unbilled receivables, non-current (2)
|
$
|
786
|
|
|
—
|
|
|
(786
|
)
|
|
$
|
—
|
|
Contract Costs (2)
|
$
|
42
|
|
|
—
|
|
|
(38
|
)
|
|
$
|
4
|
|
Contract Liabilities: Deferred Revenue
|
$
|
8,288
|
|
|
6,386
|
|
|
(5,574
|
)
|
|
$
|
9,100
|
|
Revenue recognized in the period from:
|
Three months ended June 30, 2019
|
|
Six months ended June 30, 2019
|
||||
Amounts included in contract liabilities at the beginning of the period:
|
|
|
|
||||
Performance obligations satisfied
|
$
|
1,367
|
|
|
$
|
3,752
|
|
Changes in the period:
|
|
|
|
||||
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods
|
(92
|
)
|
|
43
|
|
||
Performance obligations satisfied from new activities in the period - contract revenue
|
11,044
|
|
|
24,106
|
|
||
Total revenue
|
$
|
12,319
|
|
|
$
|
27,901
|
|
(in thousands)
|
Remainder of 2019
|
|
2020
|
|
2021 and Thereafter
|
|
Total
|
||||||||
Product Revenue
|
$
|
—
|
|
|
$
|
1,910
|
|
|
$
|
1,623
|
|
|
$
|
3,533
|
|
Research and development revenue
|
5,567
|
|
|
—
|
|
|
—
|
|
|
5,567
|
|
||||
Total
|
$
|
5,567
|
|
|
$
|
1,910
|
|
|
$
|
1,623
|
|
|
$
|
9,100
|
|
|
Three months ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Shares of common stock issuable pursuant to equity awards outstanding under the Equity Incentive Plan
|
6,254
|
|
|
7,462
|
|
|
6,254
|
|
|
7,462
|
|
|
June 30, 2019
|
||||||||||||||
|
Adjusted Cost
|
|
Gross Unrealized
Gains (3) |
|
Gross Unrealized
Losses(3) |
|
Estimated
Fair Value |
||||||||
Money market funds (1)
|
$
|
73,167
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
73,167
|
|
Common shares of CO2 Solutions (2)
|
563
|
|
|
—
|
|
|
(144
|
)
|
|
419
|
|
||||
Total
|
$
|
73,730
|
|
|
$
|
—
|
|
|
$
|
(144
|
)
|
|
$
|
73,586
|
|
|
December 31, 2018
|
||||||||||||||
|
Adjusted Cost
|
|
Gross Unrealized
Gains(3) |
|
Gross Unrealized
Losses(3) |
|
Estimated
Fair Value |
||||||||
Money market funds (1)
|
$
|
31,225
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31,225
|
|
Common shares of CO2 Solutions (2)
|
563
|
|
|
25
|
|
|
—
|
|
|
588
|
|
||||
Total
|
$
|
31,788
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
31,813
|
|
|
June 30, 2019
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Money market funds
|
$
|
73,167
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
73,167
|
|
Common shares of CO2 Solutions
|
419
|
|
|
—
|
|
|
—
|
|
|
419
|
|
||||
Total
|
$
|
73,586
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
73,586
|
|
|
December 31, 2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Money market funds
|
$
|
31,225
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31,225
|
|
Common shares of CO2 Solutions
|
588
|
|
|
—
|
|
|
—
|
|
|
588
|
|
||||
Total
|
$
|
31,813
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31,813
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Raw materials
|
$
|
10
|
|
|
$
|
165
|
|
Work-in-process
|
157
|
|
|
47
|
|
||
Finished goods
|
553
|
|
|
377
|
|
||
Inventories
|
$
|
720
|
|
|
$
|
589
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Laboratory equipment
|
$
|
22,464
|
|
|
$
|
21,328
|
|
Leasehold improvements
|
10,804
|
|
|
10,359
|
|
||
Computer equipment and software
|
3,772
|
|
|
3,954
|
|
||
Office equipment and furniture
|
1,402
|
|
|
1,272
|
|
||
Construction in progress
|
137
|
|
|
939
|
|
||
Property and equipment
|
38,579
|
|
|
37,852
|
|
||
Less: accumulated depreciation and amortization
|
(33,267
|
)
|
|
(33,093
|
)
|
||
Property and equipment, net
|
$
|
5,312
|
|
|
$
|
4,759
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Accrued purchases
|
$
|
2,373
|
|
|
$
|
1,492
|
|
Accrued professional and outside service fees
|
1,533
|
|
|
2,020
|
|
||
Deferred rent
|
—
|
|
|
343
|
|
||
Lease incentive obligation
|
—
|
|
|
425
|
|
||
Other
|
153
|
|
|
575
|
|
||
Total
|
$
|
4,059
|
|
|
$
|
4,855
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Research and development
|
$
|
403
|
|
|
$
|
567
|
|
|
$
|
791
|
|
|
$
|
1,003
|
|
Selling, general and administrative
|
1,585
|
|
|
1,890
|
|
|
3,260
|
|
|
3,434
|
|
||||
Total
|
$
|
1,988
|
|
|
$
|
2,457
|
|
|
$
|
4,051
|
|
|
$
|
4,437
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Stock options
|
$
|
581
|
|
|
$
|
535
|
|
|
$
|
1,135
|
|
|
$
|
1,015
|
|
RSUs and RSAs
|
386
|
|
|
436
|
|
|
847
|
|
|
878
|
|
||||
PSUs
|
316
|
|
|
426
|
|
|
707
|
|
|
844
|
|
||||
PBOs
|
705
|
|
|
1,060
|
|
|
1,362
|
|
|
1,700
|
|
||||
Total
|
$
|
1,988
|
|
|
$
|
2,457
|
|
|
$
|
4,051
|
|
|
$
|
4,437
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(1)
|
|
|
|
|
||||||||
Expected term (in years)
|
5.6
|
|
|
—
|
|
|
5.6
|
|
|
5.6
|
|
||||
Volatility
|
55
|
%
|
|
—
|
%
|
|
56
|
%
|
|
60
|
%
|
||||
Risk-free interest rate
|
2.28
|
%
|
|
—
|
%
|
|
2.48
|
%
|
|
2.70
|
%
|
||||
Dividend yield
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
||||
Weighted-average estimated fair value of stock options granted
|
$
|
10.02
|
|
|
$
|
—
|
|
|
$
|
11.40
|
|
|
$
|
5.02
|
|
|
Operating leases
|
|
Finance Leases
|
||||
Right-of-use assets, balance at December 31, 2018
|
$
|
—
|
|
|
$
|
—
|
|
Changes in the period:
|
|
|
|
||||
Right-of-use assets created upon adoption of ASC 842
|
26,617
|
|
|
493
|
|
||
Right-of-use assets, balance at January 1, 2019
|
$
|
26,617
|
|
|
$
|
493
|
|
|
|
|
|
||||
Lease obligations, balance at December 31, 2018
|
$
|
—
|
|
|
$
|
—
|
|
Changes in the period:
|
|
|
|
||||
Lease obligations created upon adoption of ASC 842
|
27,562
|
|
|
302
|
|
||
Lease obligations, balance at January 1, 2019
|
$
|
27,562
|
|
|
$
|
302
|
|
|
Three months ended June 30, 2019
|
|
Six months ended June 30, 2019
|
||||
Lease costs
|
|
|
|
||||
Finance lease cost:
|
|
|
|
|
|||
Amortization of right-of-use assets
|
$
|
54
|
|
|
$
|
109
|
|
Interest on lease obligations
|
3
|
|
|
6
|
|
||
Operating lease cost
|
1,100
|
|
|
2,278
|
|
||
Sublease income
|
(254
|
)
|
|
(465
|
)
|
||
Total lease cost
|
$
|
903
|
|
|
$
|
1,928
|
|
|
|
|
|
||||
Other information
|
|
|
|
||||
Weighted-average remaining lease term (in years):
|
|
|
|
||||
Finance leases
|
|
|
0.8
|
|
|||
Operating leases
|
|
|
8.1
|
|
|||
|
|
|
|
||||
Weighted-average discount rate:
|
|
|
|
||||
Finance leases
|
|
|
|
5.0
|
%
|
||
Operating leases
|
|
|
|
6.6
|
%
|
||
|
|
|
|
||||
Cash paid for amounts included in the measurement of lease obligations
|
|
|
|
|
|||
Operating cash flows from operating leases
|
|
|
|
$
|
(1,633
|
)
|
|
Operating cash flows from finance leases
|
|
|
|
$
|
(6
|
)
|
|
Financing cash flows from finance leases
|
|
|
|
$
|
(119
|
)
|
Years ending December 31,
|
Finance Leases
|
|
Operating Leases
|
||||
2019 (remaining 6 months)
|
$
|
126
|
|
|
$
|
1,648
|
|
2020
|
61
|
|
|
2,816
|
|
||
2021
|
—
|
|
|
4,197
|
|
||
2022
|
—
|
|
|
4,285
|
|
||
2023
|
—
|
|
|
4,589
|
|
||
2024 and thereafter
|
—
|
|
|
18,220
|
|
||
Total minimum lease payments (1)
|
$
|
187
|
|
|
$
|
35,755
|
|
Less: imputed interest
|
(4
|
)
|
|
(8,925
|
)
|
||
Lease Obligations
|
$
|
183
|
|
|
$
|
26,830
|
|
Years ending December 31,
|
Capital Leases
|
|
Operating Leases
|
||||
2019
|
$
|
252
|
|
|
$
|
3,280
|
|
2020
|
61
|
|
|
712
|
|
||
2021
|
—
|
|
|
490
|
|
||
2022
|
—
|
|
|
41
|
|
||
2023
|
—
|
|
|
—
|
|
||
Total minimum lease payments (1)
|
313
|
|
|
$
|
4,523
|
|
|
Less: amount representing interest
|
(10
|
)
|
|
|
|||
Present value of capital lease obligations
|
303
|
|
|
|
|||
Less: current portion
|
(242
|
)
|
|
|
|||
Long-term portion of capital leases
|
$
|
61
|
|
|
|
|
Other Commitment Agreement Type
|
Agreement Date
|
|
Future Minimum Payment
|
||
Manufacture and supply agreement with expected future payment date of December 2022
|
April 2016
|
|
$
|
1,269
|
|
Service agreement for clinical trial
|
December 2017
|
|
163
|
|
|
Total other commitments
|
|
|
$
|
1,432
|
|
|
|
Three months ended June 30, 2019
|
|
Three months ended June 30, 2018
|
||||||||||||||||||||
|
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Product revenue
|
|
$
|
6,249
|
|
|
$
|
—
|
|
|
$
|
6,249
|
|
|
$
|
3,723
|
|
|
$
|
—
|
|
|
$
|
3,723
|
|
Research and development revenue
|
|
4,340
|
|
|
1,730
|
|
|
6,070
|
|
|
7,442
|
|
|
2,373
|
|
|
9,815
|
|
||||||
Total revenues
|
|
10,589
|
|
|
1,730
|
|
|
12,319
|
|
|
11,165
|
|
|
2,373
|
|
|
13,538
|
|
||||||
Costs and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of product revenue
|
|
2,772
|
|
|
—
|
|
|
2,772
|
|
|
2,611
|
|
|
—
|
|
|
2,611
|
|
||||||
Research and development(1)
|
|
5,134
|
|
|
2,856
|
|
|
7,990
|
|
|
4,724
|
|
|
2,442
|
|
|
7,166
|
|
||||||
Selling, general and administrative
|
|
2,362
|
|
|
561
|
|
|
2,923
|
|
|
1,729
|
|
|
304
|
|
|
2,033
|
|
||||||
Total segment costs and operating expenses
|
|
10,268
|
|
|
3,417
|
|
|
13,685
|
|
|
9,064
|
|
|
2,746
|
|
|
11,810
|
|
||||||
Income (loss) from operations
|
|
$
|
321
|
|
|
$
|
(1,687
|
)
|
|
$
|
(1,366
|
)
|
|
$
|
2,101
|
|
|
$
|
(373
|
)
|
|
$
|
1,728
|
|
Corporate costs (2)
|
|
|
|
|
|
(4,698
|
)
|
|
|
|
|
|
(5,209
|
)
|
||||||||||
Depreciation and amortization
|
|
|
|
|
|
(427
|
)
|
|
|
|
|
|
(265
|
)
|
||||||||||
Loss before income taxes
|
|
|
|
|
|
$
|
(6,491
|
)
|
|
|
|
|
|
$
|
(3,746
|
)
|
|
|
Six months ended June 30, 2019
|
|
Six months ended June 30, 2018
|
||||||||||||||||||||
|
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Product revenue
|
|
$
|
14,236
|
|
|
$
|
—
|
|
|
$
|
14,236
|
|
|
$
|
9,886
|
|
|
$
|
—
|
|
|
$
|
9,886
|
|
Research and development revenue
|
|
6,440
|
|
|
7,225
|
|
|
13,665
|
|
|
12,008
|
|
|
5,686
|
|
|
17,694
|
|
||||||
Total revenues
|
|
20,676
|
|
|
7,225
|
|
|
27,901
|
|
|
21,894
|
|
|
5,686
|
|
|
27,580
|
|
||||||
Costs and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of product revenue
|
|
7,163
|
|
|
—
|
|
|
7,163
|
|
|
6,436
|
|
|
—
|
|
|
6,436
|
|
||||||
Research and development(1)
|
|
9,576
|
|
|
6,172
|
|
|
15,748
|
|
|
9,790
|
|
|
4,374
|
|
|
14,164
|
|
||||||
Selling, general and administrative
|
|
4,463
|
|
|
1,078
|
|
|
5,541
|
|
|
3,825
|
|
|
450
|
|
|
4,275
|
|
||||||
Total segment costs and operating expenses
|
|
21,202
|
|
|
7,250
|
|
|
28,452
|
|
|
20,051
|
|
|
4,824
|
|
|
24,875
|
|
||||||
Income (loss) from operations
|
|
$
|
(526
|
)
|
|
$
|
(25
|
)
|
|
$
|
(551
|
)
|
|
$
|
1,843
|
|
|
$
|
862
|
|
|
$
|
2,705
|
|
Corporate costs (2)
|
|
|
|
|
|
(10,271
|
)
|
|
|
|
|
|
(10,644
|
)
|
||||||||||
Depreciation and amortization
|
|
|
|
|
|
(802
|
)
|
|
|
|
|
|
(503
|
)
|
||||||||||
Loss before income taxes
|
|
|
|
|
|
$
|
(11,624
|
)
|
|
|
|
|
|
$
|
(8,442
|
)
|
|
|
Three months ended June 30, 2019
|
|
Three months ended June 30, 2018
|
||||||||||||||||||||
|
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
||||||||||||
Stock-based compensation
|
|
$
|
601
|
|
|
$
|
197
|
|
|
$
|
798
|
|
|
$
|
768
|
|
|
$
|
83
|
|
|
$
|
851
|
|
|
|
Six months ended June 30, 2019
|
|
Six months ended June 30, 2018
|
||||||||||||||||||||
|
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
||||||||||||
Stock-based compensation
|
|
$
|
1,237
|
|
|
$
|
338
|
|
|
$
|
1,575
|
|
|
$
|
1,326
|
|
|
$
|
146
|
|
|
$
|
1,472
|
|
|
Percentage of Total Revenues for the
|
||||||
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Customer A
|
35%
|
|
27%
|
|
38%
|
|
38%
|
Customer B
|
14%
|
|
18%
|
|
26%
|
|
21%
|
Customer C
|
*
|
|
34%
|
|
*
|
|
22%
|
Customer D
|
11%
|
|
*
|
|
*
|
|
*
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Americas
|
$
|
4,076
|
|
|
$
|
6,058
|
|
|
$
|
6,913
|
|
|
$
|
9,655
|
|
EMEA
|
4,741
|
|
|
3,808
|
|
|
12,466
|
|
|
8,800
|
|
||||
APAC
|
3,502
|
|
|
3,672
|
|
|
8,522
|
|
|
9,125
|
|
||||
Total revenues
|
$
|
12,319
|
|
|
$
|
13,538
|
|
|
$
|
27,901
|
|
|
$
|
27,580
|
|
Long-lived assets:
|
June 30, 2019
|
|
December 31, 2018
|
||||
United States
|
$
|
30,936
|
|
|
$
|
4,759
|
|
|
|
As of June 30, 2019 and December 31, 2018
|
||||||||||
|
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
||||||
Goodwill
|
|
$
|
2,463
|
|
|
$
|
778
|
|
|
$
|
3,241
|
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Three months ended June 30,
|
|
Change
|
|
Six months ended June 30,
|
|
Change
|
|||||||||||||||||||||
|
2019
|
|
2018
|
|
$
|
|
%
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Product revenue
|
$
|
6,249
|
|
|
$
|
3,723
|
|
|
$
|
2,526
|
|
|
68%
|
|
$
|
14,236
|
|
|
$
|
9,886
|
|
|
$
|
4,350
|
|
|
44
|
%
|
Research and development revenue
|
6,070
|
|
|
9,815
|
|
|
(3,745
|
)
|
|
(38)%
|
|
13,665
|
|
|
17,694
|
|
|
(4,029
|
)
|
|
(23
|
)%
|
||||||
Total revenues
|
12,319
|
|
|
13,538
|
|
|
(1,219
|
)
|
|
(9)%
|
|
27,901
|
|
|
27,580
|
|
|
321
|
|
|
1
|
%
|
||||||
Costs and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cost of product revenue
|
2,772
|
|
|
2,611
|
|
|
161
|
|
|
6%
|
|
7,163
|
|
|
6,436
|
|
|
727
|
|
|
11
|
%
|
||||||
Research and development
|
8,274
|
|
|
7,370
|
|
|
904
|
|
|
12%
|
|
16,290
|
|
|
14,548
|
|
|
1,742
|
|
|
12
|
%
|
||||||
Selling, general and administrative
|
7,896
|
|
|
7,395
|
|
|
501
|
|
|
7%
|
|
16,311
|
|
|
15,141
|
|
|
1,170
|
|
|
8
|
%
|
||||||
Total costs and operating expenses
|
18,942
|
|
|
17,376
|
|
|
1,566
|
|
|
9%
|
|
39,764
|
|
|
36,125
|
|
|
3,639
|
|
|
10
|
%
|
||||||
Loss from operations
|
(6,623
|
)
|
|
(3,838
|
)
|
|
(2,785
|
)
|
|
(73)%
|
|
(11,863
|
)
|
|
(8,545
|
)
|
|
(3,318
|
)
|
|
(39
|
)%
|
||||||
Interest income
|
220
|
|
|
174
|
|
|
46
|
|
|
26%
|
|
450
|
|
|
245
|
|
|
205
|
|
|
84
|
%
|
||||||
Other expenses, net
|
(88
|
)
|
|
(82
|
)
|
|
6
|
|
|
7%
|
|
(211
|
)
|
|
(142
|
)
|
|
69
|
|
|
49
|
%
|
||||||
Loss before income taxes
|
(6,491
|
)
|
|
(3,746
|
)
|
|
(2,745
|
)
|
|
(73)%
|
|
(11,624
|
)
|
|
(8,442
|
)
|
|
(3,182
|
)
|
|
(38
|
)%
|
||||||
Provision for (benefit from) income taxes
|
16
|
|
|
(11
|
)
|
|
27
|
|
|
245%
|
|
19
|
|
|
(13
|
)
|
|
32
|
|
|
246
|
%
|
||||||
Net loss
|
$
|
(6,507
|
)
|
|
$
|
(3,735
|
)
|
|
$
|
(2,772
|
)
|
|
(74)%
|
|
$
|
(11,643
|
)
|
|
$
|
(8,429
|
)
|
|
$
|
(3,214
|
)
|
|
(38
|
)%
|
•
|
Product revenue consists of sales of protein catalysts, pharmaceutical intermediates, and Codex® Biocatalyst Panels and Kits.
|
•
|
Research and development revenue includes license, technology access and exclusivity fees, research services fees, milestone payments, royalties, optimization and screening fees.
|
|
Three months ended June 30,
|
|
Change
|
|
Six months ended June 30,
|
|
Change
|
|||||||||||||||||||||
(In Thousands)
|
2019
|
|
2018
|
|
$
|
|
%
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||||||||
Product revenue
|
$
|
6,249
|
|
|
$
|
3,723
|
|
|
$
|
2,526
|
|
|
68%
|
|
$
|
14,236
|
|
|
$
|
9,886
|
|
|
$
|
4,350
|
|
|
44
|
%
|
Research and development revenue
|
6,070
|
|
|
9,815
|
|
|
(3,745
|
)
|
|
(38)%
|
|
13,665
|
|
|
17,694
|
|
|
(4,029
|
)
|
|
(23
|
)%
|
||||||
Total revenues
|
$
|
12,319
|
|
|
$
|
13,538
|
|
|
$
|
(1,219
|
)
|
|
(9)%
|
|
$
|
27,901
|
|
|
$
|
27,580
|
|
|
$
|
321
|
|
|
1%
|
|
Three months ended June 30,
|
|
Change
|
|
Six months ended June 30,
|
|
Change
|
|||||||||||||||||||||
(In Thousands)
|
2019
|
|
2018
|
|
$
|
|
%
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||||||||
Cost of product revenue
|
$
|
2,772
|
|
|
$
|
2,611
|
|
|
$
|
161
|
|
|
6%
|
|
$
|
7,163
|
|
|
$
|
6,436
|
|
|
$
|
727
|
|
|
11
|
%
|
Research and development
|
8,274
|
|
|
7,370
|
|
|
904
|
|
|
12%
|
|
16,290
|
|
|
14,548
|
|
|
1,742
|
|
|
12
|
%
|
||||||
Selling, general and administrative
|
7,896
|
|
|
7,395
|
|
|
501
|
|
|
7%
|
|
16,311
|
|
|
15,141
|
|
|
1,170
|
|
|
8
|
%
|
||||||
Total costs and operating expenses
|
$
|
18,942
|
|
|
$
|
17,376
|
|
|
$
|
1,566
|
|
|
9%
|
|
$
|
39,764
|
|
|
$
|
36,125
|
|
|
$
|
3,639
|
|
|
10
|
%
|
|
Three months ended June 30,
|
|
Change
|
|
Six months ended June 30,
|
|
Change
|
|||||||||||||||||||||
(In Thousands)
|
2019
|
|
2018
|
|
$
|
|
%
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||||||||
Product revenue
|
$
|
6,249
|
|
|
$
|
3,723
|
|
|
$
|
2,526
|
|
|
68%
|
|
$
|
14,236
|
|
|
$
|
9,886
|
|
|
$
|
4,350
|
|
|
44
|
%
|
Cost of product revenue
|
2,772
|
|
|
2,611
|
|
|
161
|
|
|
6%
|
|
7,163
|
|
|
6,436
|
|
|
727
|
|
|
11
|
%
|
||||||
Product gross profit
|
$
|
3,477
|
|
|
$
|
1,112
|
|
|
$
|
2,365
|
|
|
213%
|
|
$
|
7,073
|
|
|
$
|
3,450
|
|
|
$
|
3,623
|
|
|
105
|
%
|
Product gross margin (%)
|
56%
|
|
30%
|
|
|
|
|
|
50%
|
|
35%
|
|
|
|
|
|
|
|
Three months ended June 30,
|
|
Change
|
|
Six months ended June 30,
|
|
Change
|
|||||||||||||||||||||
(In Thousands)
|
2019
|
|
2018
|
|
$
|
|
%
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||||||||
Interest income
|
$
|
220
|
|
|
$
|
174
|
|
|
$
|
46
|
|
|
26%
|
|
$
|
450
|
|
|
$
|
245
|
|
|
$
|
205
|
|
|
84
|
%
|
Other expense, net
|
(88
|
)
|
|
(82
|
)
|
|
6
|
|
|
7%
|
|
(211
|
)
|
|
(142
|
)
|
|
69
|
|
|
49
|
%
|
||||||
Total other income (expense)
|
$
|
132
|
|
|
$
|
92
|
|
|
$
|
40
|
|
|
43%
|
|
$
|
239
|
|
|
$
|
103
|
|
|
$
|
136
|
|
|
132
|
%
|
|
Three months ended June 30,
|
|
Change
|
||||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
||||||||||||||||||||||||||||||
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||||||||
Cost of product revenue
|
$
|
2,772
|
|
|
$
|
—
|
|
|
$
|
2,772
|
|
|
$
|
2,611
|
|
|
$
|
—
|
|
|
$
|
2,611
|
|
|
$
|
161
|
|
|
6
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Research and development(1)
|
5,134
|
|
|
2,856
|
|
|
7,990
|
|
|
4,724
|
|
|
2,442
|
|
|
7,166
|
|
|
410
|
|
|
9
|
%
|
|
414
|
|
|
17
|
%
|
||||||||
Selling, general and administrative(1)
|
2,362
|
|
|
561
|
|
|
2,923
|
|
|
1,729
|
|
|
304
|
|
|
2,033
|
|
|
633
|
|
|
37
|
%
|
|
257
|
|
|
85
|
%
|
||||||||
Total segment costs and operating expenses
|
$
|
10,268
|
|
|
$
|
3,417
|
|
|
13,685
|
|
|
$
|
9,064
|
|
|
$
|
2,746
|
|
|
11,810
|
|
|
$
|
1,204
|
|
|
13
|
%
|
|
$
|
671
|
|
|
24
|
%
|
||
Corporate costs
|
|
|
|
|
4,830
|
|
|
|
|
|
|
5,301
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Depreciation and amortization
|
|
|
|
|
427
|
|
|
|
|
|
|
265
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total costs and operating expenses
|
|
|
|
|
$
|
18,942
|
|
|
|
|
|
|
$
|
17,376
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30,
|
|
Change
|
||||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
||||||||||||||||||||||||||||||
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
|
Performance Enzymes
|
|
Novel Biotherapeutics
|
|
Total
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||||||||
Cost of product revenue
|
$
|
7,163
|
|
|
$
|
—
|
|
|
$
|
7,163
|
|
|
$
|
6,436
|
|
|
$
|
—
|
|
|
$
|
6,436
|
|
|
$
|
727
|
|
|
11
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Research and development(1)
|
9,576
|
|
|
6,172
|
|
|
15,748
|
|
|
9,790
|
|
|
4,374
|
|
|
14,164
|
|
|
(214
|
)
|
|
(2
|
)%
|
|
1,798
|
|
|
41
|
%
|
||||||||
Selling, general and administrative(1)
|
4,463
|
|
|
1,078
|
|
|
5,541
|
|
|
3,825
|
|
|
450
|
|
|
4,275
|
|
|
638
|
|
|
17
|
%
|
|
628
|
|
|
140
|
%
|
||||||||
Total segment costs and operating expenses
|
$
|
21,202
|
|
|
$
|
7,250
|
|
|
28,452
|
|
|
$
|
20,051
|
|
|
$
|
4,824
|
|
|
24,875
|
|
|
$
|
1,151
|
|
|
6
|
%
|
|
$
|
2,426
|
|
|
50
|
%
|
||
Corporate costs
|
|
|
|
|
10,510
|
|
|
|
|
|
|
10,747
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Depreciation and amortization
|
|
|
|
|
802
|
|
|
|
|
|
|
503
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total costs and operating expenses
|
|
|
|
|
$
|
39,764
|
|
|
|
|
|
|
$
|
36,125
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Cash and cash equivalents
|
|
$
|
93,421
|
|
|
$
|
53,039
|
|
Working capital
|
|
$
|
92,750
|
|
|
$
|
50,085
|
|
|
|
Six months ended June 30,
|
||||||
(In Thousands)
|
|
2019
|
|
2018
|
||||
Net cash used in operating activities
|
|
$
|
(7,909
|
)
|
|
$
|
(12,141
|
)
|
Net cash used in investing activities
|
|
(1,257
|
)
|
|
(1,472
|
)
|
||
Net cash provided by financing activities
|
|
49,851
|
|
|
35,918
|
|
||
Net increase in cash, cash equivalents and restricted cash
|
|
$
|
40,685
|
|
|
$
|
22,305
|
|
|
|
|
Payments due by period
|
||||||||||||||
(In Thousands)
|
|
Total
|
|
Less than 1 year
|
|
1-3 years
|
|
>4 years
|
|||||||||
Finance lease obligations
|
|
$
|
187
|
|
|
$
|
187
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Operating leases obligations (1)
|
|
35,755
|
|
|
2,422
|
|
|
8,291
|
|
|
25,042
|
|
|||||
|
Total
|
|
$
|
35,942
|
|
|
$
|
2,609
|
|
|
$
|
8,291
|
|
|
$
|
25,042
|
|
Other Commitment Agreement Type
|
|
Agreement Date
|
|
Future Minimum Payment
|
||
Manufacture and supply agreement with expected future payment date of December 2022
|
|
April 2016
|
|
$
|
1,269
|
|
Service agreement for clinical trial
|
|
December 2017
|
|
163
|
|
|
Total other commitments
|
|
|
|
$
|
1,432
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS
|
3.1
|
|
|
|
|
|
|
|
3.2
|
|
|
|
|
|
|
|
3.3
|
|
|
|
|
|
|
|
4.1
|
|
|
Reference is made to Exhibits 3.1 through 3.3.
|
|
|
|
|
10.1
|
|
|
|
|
|
|
|
10.2
|
|
|
|
|
|
|
|
10.3A
|
|
|
|
|
|
|
|
10.3B
|
|
|
|
|
|
|
|
10.3C
|
|
|
|
|
|
|
|
10.3D
|
|
|
|
|
|
|
|
10.3E
|
|
|
|
|
|
|
|
10.3F
|
|
|
|
|
|
|
|
10.4
|
|
†
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
|
|
101
|
|
|
The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, formatted in Inline Extensible Business Reporting Language (iXBRL) includes: (i) Unaudited Condensed Consolidated Balance Sheets at June 30, 2019 and December 31, 2018, (ii) Unaudited Condensed Consolidated Statements of Operations for the Three Months and Six Months Ended June 30, 2019 and 2018, (iii) Unaudited Condensed Consolidated Statements of Stockholders' Equity for the Three Months and Six Months Ended June 30, 2019 and 2018, (iv) Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2019 and 2018, and (v) Notes to Unaudited Condensed Consolidated Financial Statements.
|
|
|
|
|
101.SCH
|
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
101.CAL
|
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
101.DEF
|
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
101.LAB
|
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
101.PRE
|
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
104
|
|
|
The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, formatted in Inline XBRL.
|
|
|
|
|
†
|
|
|
Portions of the exhibit, marked by brackets, have been omitted because the omitted information is (i) not material and (ii) would be competitively harmful if publicly disclosed.
|
|
|
|
|
|
|
Codexis, Inc.
|
|
|
|
|
|
Date:
|
August 6, 2019
|
By:
|
/s/ John J. Nicols
|
|
|
|
John J. Nicols
President and Chief Executive Officer
(principal executive officer)
|
|
|
|
|
Date:
|
August 6, 2019
|
By:
|
/s/ Gordon Sangster
|
|
|
|
Gordon Sangster
Chief Financial Officer
(principal financial and accounting officer)
|
Technology Transfer Milestone Event
|
Milestone Payment
|
Completion of Wave 2
|
$4,000,000.00
|
Completion of Wave 3
|
$5,000,000.00
|
A
|
B
|
C
|
D
|
E
|
Phase
|
Quantity of each Novartis Controlled API or Novartis Non-Controlled API manufactured using at least one (1) Enzyme in its manufacture
|
Quantity Payment for each (a) Novartis Controlled API or (b) Novartis Non-Controlled API ([***]) manufactured using one (1) Enzyme in its manufacture
|
Quantity Payment for each Novartis Non-Controlled API ([***]) manufactured using one (1) Enzyme in its manufacture
|
Quantity Payment Adder for each additional Enzyme used in the manufacture of the Novartis Controlled API or Novartis Non-Controlled API (See Note #2)
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
A
|
B
|
C
|
D
|
Phase
|
Quantity of each Novartis Controlled API or Novartis Non-Controlled API manufactured using at least one (1) Enzyme in its manufacture
|
Quantity Payment for each Novartis Controlled API or Novartis Non-Controlled API manufactured using one (1) Enzyme in its manufacture
|
Quantity Payment Adder for each additional Enzyme used in the manufacture of the Novartis Controlled API or Novartis Non-Controlled API
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
(a)
|
for purposes of verifying Novartis’ and its Affiliates’ compliance with Article 3, Section 7.3 and Section 7.7, for the immediately preceding [***]; and
|
(b)
|
for purposes of verifying the accuracy of payment reports and purchase orders submitted by Novartis (for its own behalf, and on behalf of its Affiliates and Third Party licensees, successors, transferees and assignees) pursuant to Section 7.5, for a period of [***] after the Calendar Year during which the payment report (and supporting documentation) and purchase order were issued.
|
Codexis, Inc.
|
Novartis Pharma AG
|
By: /s/ John Nicols
|
By: /s/ Reto Fischer
|
Name: John Nicols
|
Name: Dr. Reto Fischer
|
Title: President and CEO
|
Title: Global Head Technical R&D
|
|
|
Novartis Pharma AG
|
By: /s/ Melanie K. Martin
|
Name: Melanie K. Martin
|
Title: Head of Legal TRD
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Codexis, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ John J. Nicols
|
John J. Nicols
|
President and Chief Executive Officer
(principal executive officer)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Codexis, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Gordon Sangster
|
Gordon Sangster
Senior Vice President and Chief Financial Officer
|
(principal financial and accounting officer)
|
•
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
•
|
The information in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ John J. Nicols
|
John J. Nicols
|
President and Chief Executive Officer
(principal executive officer)
|
|
/s/ Gordon Sangster
|
Gordon Sangster
Senior Vice President and Chief Financial Officer |
(principal financial and accounting officer)
|