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Subsequent Events
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12 Months Ended |
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Dec. 31, 2011
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| Subsequent Events [Abstract] | |
| Subsequent Events | 10. Subsequent Events Tandem Diabetes Care, Inc. On February 1, 2012, we entered into a non-exclusive Development and Commercialization Agreement (the "Tandem Agreement") with Tandem to integrate a future generation of our continuous glucose monitoring technology with Tandem's t:slimTM insulin delivery system in the United States. Under the terms of the Tandem Agreement, we are entitled to receive up to $1.0 million to offset certain development, clinical and regulatory expenses. We are also entitled to receive an initial payment of $0.1 million as a result of the execution of the Tandem Agreement, a payment of $0.9 million within 30 days of the execution of the Tandem Agreement, and up to an additional $2.0 million upon the achievement of certain milestones related to regulatory submissions and approvals as set forth in the Tandem Agreement. Each of the milestones related to the Tandem Agreement is considered to be substantive. Sweetspot On February 21, 2012, we entered into an Agreement and Plan of Merger (the "Merger Agreement") to acquire the stock of SweetSpot Diabetes Care, Inc. ("SweetSpot"). SweetSpot is a healthcare-focused information technology company with a platform for uploading and processing data from diabetes devices to advance the treatment of diabetes. SweetSpot specializes in turning raw output from patient devices into information for healthcare providers, patients and researchers. Through our planned acquisition of Sweetspot, we will have a software platform that enables our patients to aggregate and analyze data from numerous diabetes devices and to share it with their healthcare providers. Arrangement consideration consists of (i) up to an aggregate of $3.0 million on the closing of the Merger (the "Closing Payment") and (ii) up to $4.0 million in milestone payments, subject to the achievement of certain platform development milestones and regulatory approval of such development milestones (the "Milestone Payments"). The Closing Payment and the Milestone Payments are payable by us in shares of our Common Stock as determined in accordance with the Merger Agreement. In addition, at the effective time of the Merger, terms require us to pay $1.5 million to the holders of SweetSpot's issued and outstanding convertible promissory notes (the "Promissory Note Payments"). The Promissory Note Payments are payable in shares of our Common Stock as determined in accordance with the Merger Agreement. Closing of the Merger is subject to customary conditions.
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