XML 22 R10.htm IDEA: XBRL DOCUMENT
v3.23.2

Condensed Consolidated Financial Statement Details | 6 Months Ended
--- | ---
Jun. 30, 2023
Inventory Disclosure [Abstract] |
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details Inventory Inventory consists of the following (in thousands):
| June 30, 2023 |  | December 31, 2022
Raw materials | $ | 2,045 |  |  | $ | 2,575 |
Work-in-process | 12,879 |  |  | 10,749 |
Finished goods | 5,765 |  |  | 5,878 |
Total inventory | $ | 20,689 |  |  | $ | 19,202 |
We manufacture finished goods inventory upon receipt of firm purchase orders, and we may manufacture certain intermediate work-in-process materials and purchase raw materials based on purchase forecasts from our collaboration partners. We include direct materials, direct labor, and manufacturing overhead in inventory and determine cost on a first-in, first-out basis for raw materials and on a specific identification basis for work-in-process and finished goods. We value inventory at the lower of cost or net realizable value, and we write down defective or excess inventory to net realizable value based on historical experience or projected usage. We expense inventory related to our research and development activities as manufactured by us or when purchased. Other Current Assets Other current assets consist of the following (in thousands):
| June 30, 2023 |  | December 31, 2022
Prepaid research and development expenses | $ | 3,265 |  |  | $ | 7,398 |
Other prepaid expenses | 3,804 |  |  | 5,987 |
Non-trade receivables and other | 2,533 |  |  | 2,423 |
Total other current assets | $ | 9,602 |  |  | $ | 15,808 |
Property, Plant and Equipment Property, plant and equipment consists of the following (in thousands):
| June 30, 2023 |  | December 31, 2022
Building and leasehold improvements | $ | 62,526 |  |  | $ | 74,889 |
Computer equipment and computer software | 24,623 |  |  | 26,205 |
Manufacturing equipment | 25,404 |  |  | 25,052 |
Laboratory equipment | 13,109 |  |  | 24,243 |
Furniture, fixtures and other | 4,068 |  |  | 4,263 |
Depreciable property, plant and equipment at cost | 129,730 |  |  | 154,652 |
Less: accumulated depreciation | (107,637) |  |  | (124,731) |
Depreciable property, plant and equipment, net | 22,093 |  |  | 29,921 |
Construction in process | 461 |  |  | 2,530 |
Property, plant and equipment, net | $ | 22,554 |  |  | $ | 32,451 |
As a result of the sustained decrease in the fair value of our single reporting unit during the three months ended March 31, 2023 and due to the weakening lease markets during the three months ended June 30, 2023, we recorded non-cash impairment charges of $1.6 million and $5.1 million for property, plant and equipment for the three and six months ended June 30, 2023, respectively, which we report in restructuring, impairment and costs of terminated program in our Condensed Consolidated Statement of Operations. See Note 6 for additional information. Goodwill The following is a reconciliation of the changes in our goodwill for the six months ended June 30, 2023 (in thousands):
|  | Six months ended June 30, 2023
Goodwill – beginning balance |  | $ | 76,501 |
Impairment of goodwill |  | (76,501) |
Goodwill – ending balance |  | $ | — |
As a result of the decrease in the fair value of our single reporting unit during the three months ended March 31, 2023, we recorded a non-cash goodwill impairment charge of $76.5 million, which we report as impairment of goodwill in our Condensed Consolidated Statement of Operations. We had previously recognized goodwill primarily from our acquisitions of Shearwater Corp. and Aerogen, Inc. in 2001 and 2005, respectively. See Note 6 for additional information. Accrued Expenses Accrued expenses consist of the following (in thousands):
| June 30, 2023 |  | December 31, 2022
Accrued compensation | $ | 10,670 |  |  | $ | 9,582 |
Accrued clinical trial expenses | 5,517 |  |  | 12,262 |
Liability to collaboration partners | 4,472 |  |  | 3,808 |
Accrued contract termination costs | 3,084 |  |  | 3,902 |
Other accrued expenses | 5,399 |  |  | 7,003 |
Total accrued expenses | $ | 29,142 |  |  | $ | 36,557 |
Liabilities Related to the Sales of Future Royalties In 2012 and 2020, we sold to RPI Finance Trust (RPI) and entities managed by Healthcare Royalty Management, LLC (collectively, HCR), respectively, our rights to receive royalties under our license and manufacturing agreements with certain pharmaceutical partners under the 2012 Purchase and Sale Agreement and the 2020 Purchase and Sale Agreement, respectively. We account for these transactions as debt and recognize non-cash royalty revenue and non-cash interest expense to amortize the proceeds over the lives of the respective arrangements. We periodically update our prospective non-cash interest rate based on our estimates of future royalties. As of June 30, 2023, our imputed interest rates for the arrangements with RPI and HCR were 10% and 20%, respectively. The following is a reconciliation of the changes in our liabilities related to the sales of future royalties for the six months ended June 30, 2023 (in thousands):
| Six Months Ended June 30, 2023
| 2012 Purchase and Sale Agreement |  | 2020 Purchase and Sale Agreement |  | Total
Liabilities related to the sales of future royalties, net – beginning balance | $ | 55,167 |  |  | $ | 100,211 |  |  | $ | 155,378 |
Non-cash royalty revenue | (17,496) |  |  | (15,197) |  |  | (32,693) |
Non-cash interest expense | 2,538 |  |  | 10,019 |  |  | 12,557 |
Amortization of transaction costs | — |  |  | 417 |  |  | 417 |
Liabilities related to the sales of future royalties, net – ending balance | $ | 40,209 |  |  | $ | 95,450 |  |  | $ | 135,659 |
Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in accumulated other comprehensive income (loss) by component (in thousands):
| Foreign currency translation |  |  | Available-for-sale securities |  |  | Accumulated Other Comprehensive Income
Balance at December 31, 2022 | $ | (5,131) |  |  |  | $ | (1,776) |  |  |  | $ | (6,907) |
Foreign currency translation adjustments | 139 |  |  |  | — |  |  |  | 139 |
Unrealized gain on available-for-sale securities | — |  |  |  | 1,087 |  |  |  | 1,087 |
Balance at March 31, 2023 | $ | (4,992) |  |  |  | $ | (689) |  |  |  | $ | (5,681) |
Foreign currency translation adjustments | 13 |  |  |  | — |  |  |  | 13 |
Unrealized gain on available-for-sale securities | — |  |  |  | 244 |  |  |  | 244 |
Reclassification adjustments to income | (1,026) |  |  |  | — |  |  |  | (1,026) |
Balance at June 30, 2023 | $ | (6,005) |  |  |  | $ | (445) |  |  |  | $ | (6,450) |
The reclassification from accumulated other comprehensive loss relates to the closure of one of our foreign subsidiaries and has been included within interest income and other income (expense), net in our Condensed Consolidated Statement of Operations.

X
- References No definition available. + Details
Name: | us-gaap_InventoryDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for inventory. Includes, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the classes of inventory, and the nature of the cost elements included in inventory. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 330 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//330/tableOfContent + Details
Name: | us-gaap_InventoryDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration