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Significant Accounting Policies (Tables) | 3 Months Ended
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Mar. 31, 2021
Significant Accounting Policies [Abstract] |
Inventory | Our inventory consisted of the following (in thousands):
|  | March 31, 2021 |  |  | December 31, 2020 |
Raw materials: |  |  |  |  |  |
Raw materials- clinical |  | $ | 10,695 |  |  | $ | 9,206 |
Raw materials- commercial |  |  | 7,502 |  |  |  | 7,502 |
Total raw materials |  |  | 18,197 |  |  |  | 16,708 |
Work in process |  |  | 2,096 |  |  |  | 2,252 |
Finished goods |  |  | 1,906 |  |  |  | 3,005 |
Total inventory |  | $ | 22,199 |  |  | $ | 21,965 |
Basic Net Loss per Share | Our basic net loss per share for the three months ended March 31, 2020, was calculated as follows (in thousands, except per share amounts):
Three months ended March 31, 2020 |  | Weighted Average Shares Owned in Akcea |  |  | Akcea’s Net Loss Per Share |  |  | Basic Net Loss Per Share Calculation (as revised*) |
Ionis’ portion of Akcea’s net loss |  |  | 77,095 |  |  | $ | (0.42 | ) |  | $ | (32,674 | )
Akcea’s net loss attributable to our ownership |  |  |  |  |  |  |  |  |  | $ | (32,674 | )
Ionis’ stand-alone net loss |  |  |  |  |  |  |  |  |  |  | (7,032 | )
Net loss available to Ionis common stockholders |  |  |  |  |  |  |  |  |  | $ | (39,706 | )
Weighted average shares outstanding |  |  |  |  |  |  |  |  |  |  | 139,429 |
Basic net loss per share |  |  |  |  |  |  |  |  |  | $ | (0.28 | )
* | We revised our 2020 amounts to reflect the simplified convertible instruments accounting guidance, which we adopted retrospectively. Refer to Note 2, Significant Accounting Policies, for further information.
Adoption of ASU 2020-06 | The following table summarizes the adjustments we made to the condensed consolidated balance sheet we originally reported at December 31, 2020 to adopt ASU 2020-06 (in thousands):
|  | December 31, 2020 |
|  | As Previously Reported |  |  | ASU 2020-06 Adjustment |  |  | As Revised |
1 percent convertible senior notes |  | $ | 293,161 |  |  | $ | 15,648 |  |  | $ | 308,809 |
0.125 percent convertible senior notes |  | $ | 455,719 |  |  | $ | 84,417 |  |  | $ | 540,136 |
Additional paid-in-capital |  | $ | 2,113,646 |  |  | $ | (218,127 | ) |  | $ | 1,895,519 |
Accumulated deficit |  | $ | (1,249,368 | ) |  | $ | 118,062 |  |  | $ | (1,131,306 | )
The following table summarizes the adjustments we made to the condensed consolidated statement of operations we originally reported at March 31, 2020 to adopt ASU 2020-06 (in thousands):
|  | Three Months Ended March 31, 2020 |
|  | As Previously Reported |  |  | ASU 2020-06 Adjustment |  |  | As Revised |
Interest expense |  | $ | (10,990 | ) |  | $ | 8,783 |  |  | $ | (2,207 | )
Loss before income tax benefit |  | $ | (61,737 | ) |  | $ | 8,783 |  |  | $ | (52,954 | )
Income tax benefit |  | $ | 3,257 |  |  | $ | (185 | ) |  | $ | 3,072 |
Net loss |  | $ | (58,480 | ) |  | $ | 8,598 |  |  | $ | (49,882 | )
Net loss attributable to Ionis Pharmaceuticals, Inc. common stockholders |  | $ | (48,226 | ) |  | $ | 8,598 |  |  | $ | (39,628 | )
Basic and diluted net loss per share |  | $ | (0.35 | ) |  | $ | 0.07 |  |  | $ | (0.28 | )
The following tables summarize the adjustments we made to our condensed consolidated statements of stockholders’ equity we originally reported at December 31, 2020 and 2019 to adopt ASU 2020-06 (in thousands):
|  | December 31, 2020 |
|  | As Previously Reported |  |  | ASU 2020-06 Adjustment |  |  | As Revised |
Additional paid-in-capital |  | $ | 2,113,646 |  |  | $ | (218,127 | ) |  | $ | 1,895,519 |
Accumulated deficit |  | $ | (1,249,368 | ) |  | $ | 118,062 |  |  | $ | (1,131,306 | )
Total stockholders' equity |  | $ | 843,347 |  |  | $ | (100,065 | ) |  | $ | 743,282 |
|  | December 31, 2019 |
|  | As Previously Reported |  |  | ASU 2020-06 Adjustment |  |  | As Revised |
Additional paid-in-capital |  | $ | 2,203,778 |  |  | $ | (218,128 | ) |  | $ | 1,985,650 |
Accumulated deficit |  | $ | (707,534 | ) |  | $ | 111,039 |  |  | $ | (596,495 | )
Total stockholders' equity |  | $ | 1,684,547 |  |  | $ | (107,089 | ) |  | $ | 1,577,458 |
Weighted-Average Assumptions for Stock Options | Employee Stock Options:
|  | Three Months Ended March 31, |
|  | 2021 |  |  | 2020 |
Risk-free interest rate |  |  | 0.5 | % |  |  | 1.6 | %
Dividend yield |  |  | 0.0 | % |  |  | 0.0 | %
Volatility |  |  | 55.1 | % |  |  | 58.9 | %
Expected life |  | 4.9 years |  |  | 4.7 years |
Weighted-Average Assumptions for ESPP | ESPP:
|  | Three Months Ended March 31, |
|  | 2021 |  |  | 2020 |
Risk-free interest rate |  |  | 0.1 | % |  |  | 1.1 | %
Dividend yield |  |  | 0.0 | % |  |  | 0.0 | %
Volatility |  |  | 39.1 | % |  |  | 47.2 | %
Expected life |  | 6 months |  |  | 6 months |
Stock-Based Compensation Expense | The following table summarizes stock-based compensation expense for the three months ended March 31, 2021 and 2020 (in thousands).
|  | Three Months Ended March 31, |
|  | 2021 |  |  | 2020 |
Cost of sales |  | $ | 182 |  |  | $ | 237 |
Research, development and patent expense |  |  | 25,899 |  |  |  | 25,556 |
Selling, general and administrative expense |  |  | 11,780 |  |  |  | 14,997 |
Total |  | $ | 37,861 |  |  | $ | 40,790 |

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