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Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Major Customers | Revenue from significant partners, which is defined as 10% or more of our total revenue, was as follows:
| December 31, |  |  |  |
| 2018 |  | 2017 |  | 2016
Partner A | 40 | % |  | 46 | % |  | 41 | %
Partner B | 13 | % |  | 19 | % |  | 14 | %
Partner C | 20 | % |  | < 10% |  | < 10%
Schedule of Commercial License Rights | Commercial license rights consist of the following (in thousands):
| December 31, |  | December 31,
| 2018 |  | 2017
Aziyo & CorMatrix | $ | 17,696 |  | $ | 17,696
Palvella | 10,000 |  | —
Selexis | 8,602 |  | 8,602
| 36,298 |  | 26,298
Less: accumulated amortization | (4,838) |  | (6,772)
Total commercial license rights, net | $ | 31,460 |  | $ | 19,526
Schedule of Disaggregation of Revenue | The following table represents disaggregation of Material Sales and License fees, milestone and other (in thousands), which are not affected by the adoption of ASC 606:
|  | Year ended December 31, |  |  |  |
|  | 2018 |  | 2017 |  | 2016
Material Sales |  |  |  |  |  |
Captisol |  | $ | 29,123 |  | $ | 22,070 |  | $ | 22,502
License fees, milestones and other |  |  |  |  |  |
License fees |  | 78,195 |  | 13,665 |  | 10,570
Milestones |  | 6,577 |  | 11,093 |  | 16,091
Other |  | 9,002 |  | 5,589 |  | 387
|  | $ | 93,774 |  | $ | 30,347 |  | $ | 27,048
Schedule of Inputs and Assumptions Used to Calculate Fair Value of Derivatives | The following table summarizes the inputs and assumptions used in the Black-Scholes model to calculate the fair value of the assets and the inputs and assumptions used in the Binomial model to calculate the fair value of the derivative liabilities associated with the 2023 Notes:
|  | As of May 22, 2018 |  | As of June 19, 2018
Common stock price |  | $187.09 |  | $195.91
Exercise price, conversion premium and bond hedge |  | $248.48 |  | $248.48
Exercise price, warrant |  | 315.38 |  | 315.38
Risk-free interest rate |  | 2.9% |  |  | 2.8% |
Volatility |  | 30%-35% |  | 30%-35%
Dividend yield |  | — |  | —
Annual coupon rate |  | 0.75% |  |  | 0.75% |
Remaining contractual term (in years) |  | 5.05 |  | 4.98
In connection with our 2019 Notes, which we issued in August 2014 for $245.0 million aggregate principal amount, on May 22, 2018, we amended it making an irrevocable election to settle the entire note in cash. As a result, we reclassified from equity to derivative liability the fair value of the conversion premium as of May 22, 2018. Amounts paid in excess of the principal amount will be offset by an equal receipt of cash under the corresponding convertible bond hedge. As a result, we reclassified from equity to derivative asset the fair value of the bond hedge as of May 22, 2018. Changes in the fair value of these derivatives are reflected in other expense, net, in our condensed consolidated statements of operations. The following table summarizes the inputs and assumptions used in the Black-Scholes model to calculate the fair value of the derivative assets and the inputs and assumptions used in the Binomial model to calculate the fair value of the derivative liability associated with the 2019 Notes:
|  | As of May 22, 2018 |  | As of December 31, 2018
Common stock price |  | $187.09 |  | $135.70
Exercise price, conversion premium and bond hedge |  | $75.05 |  | $75.05
Risk-free interest rate |  | 2.47% |  |  | 2.60% |
Volatility |  | 30%-35% |  | 30%-35%
Dividend yield |  | — |  | —
Annual coupon rate |  | 0.75% |  |  | 0.75% |
Remaining contractual term (in years) |  | 1.25 |  | 0.63
Schedule of Computation of Basic and Diluted Net Income (Loss) per Share | The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in thousands):
| Year Ended December 31, |  |  |  |
| 2018 |  | 2017 |  | 2016
Weighted average shares outstanding: | 21,160 |  | 21,032 |  | 20,831
Dilutive potential common shares: |  |  |  |  |
Restricted stock | 72 |  | 141 |  | —
Stock options | 1,125 |  | 1,000 |  | —
Warrants associated with 2019 Notes | 1,017 |  | 94 |  | —
2019 Convertible Senior Notes | 693 |  | 1,214 |  | —
Shares used to compute diluted income per share | 24,067 |  | 23,481 |  | 20,831
Potentially dilutive shares excluded from calculation due to anti-dilutive effect | 2,845 |  | 335 |  | 3,544

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