Bionano Genomics, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS BIONANO GENOMICS, INC. Condensed Consolidated Balance Sheets (Unaudited) September 30, 2020 December 31, 2019 Assets Current assets: Cash and cash equivalents $ 18,867,000 $ 17,311,000 Accounts receivable, net 3,860,000 6,334,000 Inventory, net 4,593,000 3,444,000 Prepaid expenses and other current assets 1,920,000 1,169,000 Total current assets 29,240,000 28,258,000 Property and equipment, net 3,635,000 1,950,000 Intangible assets, net 1,580,000 — Goodwill 6,941,000 — Total assets $ 41,396,000 $ 30,208,000 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 5,665,000 $ 2,699,000 Accrued expenses 4,466,000 3,225,000 Contract liabilities 412,000 358,000 Current portion of long-term debt 14,239,000 20,085,000 Total current liabilities 24,782,000 26,367,000 Long-term debt, net of current portion 1,775,000 — Long-term contract liabilities 88,000 183,000 Other non-current liabilities 75,000 44,000 Total liabilities 26,720,000 26,594,000 Commitments and contingencies Stockholders’ equity: Common stock, $ 0.0001 par value, 200,000,000 and 200,000,000 shares authorized at September 30, 2020 and December 31, 2019, respectively; 148,348,000 and 34,274,000 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively 15,000 3,000 Additional paid-in capital 146,614,000 106,188,000 Accumulated deficit ( 131,953,000 ) ( 102,577,000 ) Total stockholders’ equity 14,676,000 3,614,000 Total liabilities and stockholders’ equity $ 41,396,000 $ 30,208,000 See accompanying notes to the condensed consolidated financial statements 3 Table of Contents BIONANO GENOMICS, INC. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Revenue: Product revenue $ 1,580,000 $ 3,162,000 $ 3,503,000 $ 6,870,000 Service and other revenue 616,000 151,000 1,010,000 470,000 Total revenue 2,196,000 3,313,000 4,513,000 7,340,000 Cost of revenue: Cost of product revenue 1,136,000 2,238,000 2,426,000 4,883,000 Cost of service and other revenue 324,000 137,000 493,000 194,000 Total cost of revenue 1,460,000 2,375,000 2,919,000 5,077,000 Operating expenses: Research and development 2,304,000 2,174,000 7,379,000 6,682,000 Selling, general and administrative 8,659,000 4,449,000 21,640,000 14,295,000 Total operating expenses 10,963,000 6,623,000 29,019,000 20,977,000 Loss from operations ( 10,227,000 ) ( 5,685,000 ) ( 27,425,000 ) ( 18,714,000 ) Other expenses: Interest expense ( 589,000 ) ( 578,000 ) ( 1,911,000 ) ( 1,613,000 ) Loss on debt extinguishment — — — ( 1,333,000 ) Other expenses 54,000 ( 131,000 ) — ( 241,000 ) Total other expenses ( 535,000 ) ( 709,000 ) ( 1,911,000 ) ( 3,187,000 ) Loss before income taxes ( 10,762,000 ) ( 6,394,000 ) ( 29,336,000 ) ( 21,901,000 ) Provision for income taxes ( 30,000 ) ( 4,000 ) ( 40,000 ) ( 13,000 ) Net loss $ ( 10,792,000 ) $ ( 6,398,000 ) $ ( 29,376,000 ) $ ( 21,914,000 ) Net loss per share, basic and diluted $ ( 0.08 ) $ ( 0.59 ) $ ( 0.34 ) $ ( 2.06 ) Weighted-average common shares outstanding basic and diluted 132,942,000 10,898,000 86,632,000 10,662,000 See accompanying notes to the condensed consolidated financial statements. 4 Table of Contents BIONANO GENOMICS, INC. Condensed Consolidated Statements of Stockholders’ Equity (Deficit) (Unaudited) Common Stock Additional Paid-in Capital Accumulated Deficit Total Stockholders' Equity (Deficit) Shares Amount Balance at January 1, 2019 10,055,000 $ 1,000 $ 82,898,000 $ ( 72,762,000 ) $ 10,137,000 Stock option exercises 42,000 — 54,000 — 54,000 Stock-based compensation expense — — 289,000 — 289,000 Issue common stock 748,000 — 2,410,000 — 2,410,000 Issue warrants for debt — — 630,000 — 630,000 Issue stock for debt — — 202,000 — 202,000 Net loss — — — ( 7,852,000 ) ( 7,852,000 ) Balance at March 31, 2019 10,845,000 $ 1,000 $ 86,483,000 $ ( 80,614,000 ) $ 5,870,000 Stock option exercises 9,000 — 11,000 — 11,000 Stock-based compensation expense — — 336,000 — 336,000 Issue stock for employee stock purchase plan 44,000 — 103,000 — 103,000 Net loss — — — ( 7,665,000 ) ( 7,665,000 ) Balance at June 30, 2019 10,898,000 $ 1,000 $ 86,933,000 $ ( 88,279,000 ) $ ( 1,345,000 ) Stock-based compensation expense — — 364,000 — 364,000 Net loss — — — ( 6,398,000 ) ( 6,398,000 ) Balance at September 30, 2019 10,898,000 $ 1,000 $ 87,297,000 $ ( 94,677,000 ) $ ( 7,379,000 ) Balance at January 1, 2020 34,274,000 $ 3,000 $ 106,188,000 $ ( 102,577,000 ) $ 3,614,000 Stock-based compensation expense — — 328,000 — 328,000 Issue stock for warrant exercises 3,478,000 — 2,355,000 — 2,355,000 Net loss — — — ( 10,510,000 ) ( 10,510,000 ) Balance at March 31, 2020 37,752,000 $ 3,000 $ 108,871,000 $ ( 113,087,000 ) $ ( 4,213,000 ) Stock-based compensation expense — — 328,000 — 328,000 Issue common stock, net of issuance costs 16,896,000 2,000 16,364,000 — 16,366,000 Issue stock for employee stock purchase plan 44,000 21,000 — 21,000 Issue stock for covenant waiver 873,000 300,000 — 300,000 Issue stock for warrant exercises 36,410,000 4,000 1,105,000 — 1,109,000 Net loss — ( 8,074,000 ) ( 8,074,000 ) Balance at June 30, 2020 91,975,000 $ 9,000 $ 126,989,000 $ ( 121,161,000 ) $ 5,837,000 Stock-based compensation expense — 447,000 — 447,000 Issue stock for warrant exercises 50,205,000 5,000 15,078,000 — 15,083,000 Issue stock for acquisition 6,168,000 1,000 4,100,000 — 4,101,000 Net loss ( 10,792,000 ) ( 10,792,000 ) Balance at September 30, 2020 148,348,000 $ 15,000 $ 146,614,000 $ ( 131,953,000 ) $ 14,676,000 See accompanying notes to the condensed consolidated financial statements 5 Table of Contents BIONANO GENOMICS, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended September 30, 2020 2019 Operating activities: Net loss $ ( 29,376,000 ) $ ( 21,914,000 ) Adjustments to reconcile net loss to net cash used by operating activities: Depreciation and amortization expense 909,000 815,000 Non-cash interest 952,000 523,000 Stock-based compensation 1,103,000 990,000 Provision for bad debt expense 1,334,000 — Loss on debt extinguishment — 1,333,000 Changes in operating assets and liabilities: Accounts receivable 1,709,000 ( 1,486,000 ) Inventory ( 3,612,000 ) ( 1,886,000 ) Prepaid expenses and other current assets ( 566,000 ) 98,000 Accounts payable 925,000 1,042,000 Accrued expenses and contract liabilities 412,000 337,000 Net cash used in operating activities ( 26,210,000 ) ( 20,148,000 ) Investing Activities: Lineagen acquisition, net of cash acquired ( 2,450,000 ) — Purchases of property and equipment — ( 38,000 ) Net cash used in investing activities ( 2,450,000 ) ( 38,000 ) Financing activities: Proceeds from issuance of term debt, net of issuance costs — 19,169,000 Repayment of term-loan debt ( 5,000,000 ) ( 10,812,000 ) Proceeds from PPP Loan 1,775,000 — Proceeds from borrowing from line of credit 761,000 3,084,000 Repayments of borrowing from line of credit ( 2,258,000 ) ( 2,131,000 ) Proceeds from sale of common stock, net of offering costs 16,366,000 2,410,000 Proceeds from sale of common stock under employee stock purchase plan 21,000 103,000 Proceeds from warrant and option exercises 18,551,000 65,000 Net cash provided by financing activities 30,216,000 11,888,000 Net decrease in cash and cash equivalents 1,556,000 ( 8,298,000 ) Cash and cash equivalents at beginning of period 17,311,000 16,523,000 Cash and cash equivalents at end of period $ 18,867,000 $ 8,225,000 Supplemental cash flow disclosures: Cash paid for interest $ 991,000 $ 1,036,000 Supplemental disclosure of non-cash investing and financing activities: Fair value of common stock issued related to Lineagen acquisition $ 4,100,000 $ — Property and equipment costs incurred but not paid included in accounts payable and accrued expenses $ — $ 8,000 Fair value of warrants issued with debt $ — $ 630,000 Transfer of instruments and servers from property and equipment into inventory $ 134,000 $ 360,000 Transfer of instruments and servers from inventory to property and equipment $ 2,618,000 $ — Issue common stock for covenant waiver $ 300,000 Fair value of stock issued with debt $ — $ 202,000 Deferred equity issuance costs in accounts payable and accrued liabilities $ — $ 197,000 Debt issuance costs in accounts payable and accrued liabilities $ — $ 35,000 See accompanying notes to the condensed consolidated financial statements 6 Table of Contents BIONANO GENOMICS, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) 1. Organization and Basis of Presentation Description of Business Bionano Genomics, Inc. (collectively, with its consolidated subsidiaries, the “Company”) is a life sciences instrumentation company in the genome analysis space that provides tools and services based on its Saphyr system to scientists and clinicians conducting genetic research and patient testing, and provides diagnostic testing for those with autism spectrum disorder (“ASD”) and other neurodevelopmental disabilities through newly acquired Lineagen, Inc., a wholly owned subsidiary of the Company (“Lineagen”). The Company currently develops and markets the Saphyr system, a platform for ultra-sensitive and ultra-specific structural variation detection that is designed to enable researchers and clinicians to accelerate the search for new diagnostics and therapeutic targets and to streamline the study of changes in chromosomes, which is known as cytogenetics. The Saphyr system is comprised of an instrument, chip consumables, reagents and a suite of data analysis tools, and genome analysis services to provide access to data generated by the Saphyr system for researchers who want to evaluate Saphyr data quickly and with a low up-front investment. Basis of Presentation The accompanying financial information has been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim reporting purposes. The condensed consolidated financial statements are unaudited. The unaudited condensed consolidated financial statements reflect, in the opinion of the Company's management, all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of financial position, results of operations, changes in equity, and comprehensive loss and cash flows for each period presented in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All intercompany transactions and balances have been eliminated. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. Certain prior year numbers were reclassified to conform with current year presentation. Such reclassification had no impact on the previously reported results of operations. Going Concern The Company has experienced recurring net losses from operations, negative cash flows from operating activities, financial covenant breaches, and significant accumulated deficit since its inception and expects to continue to incur net losses into the foreseeable future. The Company had an accumulated deficit of $ 132.0 million as of September 30, 2020. The Company had cash and cash equivalents of $ 18.9 million as of September 30, 2020. Management expects operating losses and negative cash flows to continue for at least the next year as the Company continues to incur costs related to research and commercialization efforts. As a result, there is substantial doubt about the Company’s ability to continue as a going concern within twelve months after the date these financial statements are issued. The Company is subject to additional risks and uncertainties as a result of the continued spread of COVID-19 and uncertain market conditions, which could continue to have a material impact on the Company’s business and financial results. The Company closely monitors and complies with various applicable guidelines and legal requirements in the jurisdictions in which it operates, which may continue to result in reduced business operations in response to new or existing stay-at-home orders, travel restrictions and other social distancing measures. The Company’s manufacturing partners, suppliers, and customers, have implemented similar operational reductions. This overall reduction in activity has contributed to a decrease in sales which has negatively impacted the Company’s first, second and third quarter 2020 financial results. The future effects of COVID-19 are unknown and the Company’s financial results may continue to be negatively affected in the future. There may be long-term negative effects of the COVID-19 pandemic, even after it has subsided. Specifically, product demand may be reduced due to an economic recession, a decrease in corporate capital expenditures, prolonged unemployment, reduction in consumer confidence, or any similar negative economic condition. These negative effects could have a material impact on the Company’s operations, business, earnings, and liquidity. The Company’s ability to continue as a going concern is dependent upon its ability to raise additional funding. The Company will need to raise additional capital through equity offerings or debt financings to fulfill its operating and capital requirements for at least 12 months and to maintain compliance with certain financial covenants in the Innovatus LSA (as defined below). To raise such additional capital, the Company may pursue equity or debt financings, strategic collaborations, licensing arrangements, asset sales, or other arrangements. The Company may not be able to secure such financing in a timely manner or on favorable terms, if at all, and may not be able to comply with current covenants, which could cause an acceleration of its 7 Table of Contents debt. For example, for the three months ended September 30, 2020, the Company was not in compliance with its revenue covenant under the Innovatus LSA and, while the Company is currently in discussions with Innovatus, the Company has not yet secured a waiver for its noncompliance. Furthermore, if the Company issues equity securities to raise additional funds, its existing stockholders may experience dilution, and the new equity securities may have rights, preferences and privileges senior to those of the Company’s existing stockholders. If the Company raises additional funds through collaboration, licensing or other similar arrangements, it may be necessary to relinquish valuable rights to its products or proprietary technologies or grant licenses on terms that are not favorable to the Company. If the Company does not have or is not able to obtain sufficient funds, it may have to reduce commercialization efforts or delay its development of new products. The Company also may have to reduce marketing, customer support or other resources devoted to its products or cease operations. As a result, the aforementioned conditions, among others, raise substantial doubt about the Company's ability to continue as a going concern within one year after the date these financial statements are issued. Such financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities in the normal course of business, and do not include any adjustments to reflect the outcome of this uncertainty. As a publicly-traded company listed on The Nasdaq Stock Market LLC ("Nasdaq"), the Company is required to comply with rules and regulations issued by Nasdaq. If the Company is not able to comply with such rules and regulations, which it has not met from time-to-time since the Company's initial public offering in August 2018, the Company may not be able to maintain its Nasdaq listing. In April 2020, the Company received a Notice (the “Notice”) from The Nasdaq Stock Market LLC (“Nasdaq”) advising the Company that for 30 consecutive trading days preceding the date of the Notice, the bid price of the Company’s common stock had closed below the $1.00 per share minimum required for continued listing on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”). The Notice has no effect on the listing of the Company’s common stock at this time, and the Company’s common stock continues to trade on The Nasdaq Capital Market under the symbol “BNGO.” Under Nasdaq Listing Rule 5810(c)(3)(A), the Company has 180 calendar days following the date of the Notice to regain compliance with the Minimum Bid Price Requirement. However, due to recent extraordinary market conditions, Nasdaq has determined to toll the compliance period for the Minimum Bid Price Requirement through June 30, 2020 (the “Tolling Period”). As a result, the compliance Period will end on December 28, 2020 (the “Compliance Period”) instead of October 20, 2020. If at any time during the Tolling Period or the Compliance Period the closing bid price of the Company’s common stock is at least $1.00 for a minimum of 10 consecutive business days, the Company will regain compliance with the Minimum Bid Price Requirement and its common stock will continue to be eligible for listing on The Nasdaq Capital Market absent noncompliance with any other requirement for continued listing. If the Company does not regain compliance with the Minimum Bid Price Requirement by the end of the Compliance Period, the Company may be afforded an additional 180 calendar days to regain compliance with the Minimum Bid Price Requirement (the “Additional Compliance Period”) if on the last day of the Compliance Period the Company is in compliance with the market value of publicly held shares requirement for continued listing as well as all other standards for initial listing of its common stock on The Nasdaq Capital Market (other than the Minimum Bid Price Requirement), unless the Company does not indicate its intent to cure the deficiency, or if it appears to Nasdaq that it is not possible for the Company to cure the deficiency. If the Company does not regain compliance with the Minimum Bid Price Requirement by the end of the Compliance Period, or the Additional Compliance Period, if applicable, the Company’s common stock will be subject to delisting. We intend to monitor the closing bid price of our common stock and may, if appropriate, consider implementing available options to regain compliance with the Minimum Bid Price Requirement. Significant Accounting Policies During the nine months ended September 30, 2020, there were no changes to the Company's significant accounting policies as described in the Company's Annual Report on Form 10-K for the year ended December 31, 2019, except as described below. 8 Table of Contents Lineagen Acquisition On August 21, 2020, the Company, Alta Merger Sub, Inc., a wholly owned subsidiary of the Company (“Merger Sub”), Lineagen, a Delaware corporation, and Michael S. Paul, Ph.D., solely in his capacity as exclusive agent and attorney-in-fact of the securityholders of Lineagen, entered into an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the terms and conditions of the Merger Agreement, Merger Sub merged with and into Lineagen (the “Merger”) whereupon the separate corporate existence of Merger Sub ceased, with Lineagen continuing as the surviving corporation of the Merger as a wholly owned subsidiary of the Company. The Company accounted for its acquisition of Lineagen using the acquisition method of accounting pursuant to Accounting Standards Codification Topic 805, Business Combinations ("ASC 805") . Under ASC 805, the tangible and identifiable intangible assets acquired and liabilities assumed in a business combination are recorded based on their estimated fair values as of the acquisition date. Any excess purchase price over the estimated fair value assigned to the tangible and identifiable intangible assets acquired and liabilities assumed is recorded to goodwill. The Company based the estimated fair value of identifiable intangible assets acquired on independent valuations that use information and assumptions provided by the Company’s management. The use of alternative valuation assumptions, including estimated revenue projections, growth rates, cash flows, discount rates and useful lives could result in different purchase price allocations and amortization expense in current and future periods. Under ASC 805, acquisition-related transaction costs (such as advisory, legal, valuation, other professional fees) are expensed in the statements of operations in the periods incurred. Long-Lived Assets (including Finite-Lived Purchased Intangible Assets) Long-lived assets consist of property and equipment and purchased finite-lived intangible assets. The Company records property and equipment at cost, and records purchased finite-lived intangible assets based on their fair values at the date of acquisition. Property and equipment generally consist of laboratory equipment, computer and office equipment, furniture and fixtures, and leasehold improvements. Property and equipment are recorded at cost and depreciated or amortized using the straight-line method over the estimated useful lives of the assets (generally three to five years , or the remaining term of the lease for leasehold improvements, whichever is shorter). Repairs and maintenance costs are charged to expense as incurred. Intangible assets acquired in a business combination are recognized separately from goodwill and are initially recognized at their fair value at the acquisition date (which is regarded as their cost). Intangible assets are amortized over the estimated useful life of the asset on a basis that approximates the pattern of economic benefit. Intangible assets are reviewed for impairment if indicators of potential impairment exist. There was no indication of impairment of intangible assets for any of the periods presented. As a result of the Lineagen acquisition the Company recorded intangible assets, which consist of a trade name intangible and customer relationship intangible, which will be amortized using the straight-line method over the estimated useful lives of the assets of five years , which is consistent with the pattern of economic benefit of the assets. If the Company identifies a change in the circumstances related to its long-lived assets, such as property and equipment and intangible assets (other than goodwill), that indicates the carrying value of any such asset may not be recoverable, the Company will perform an impairment analysis. A long-lived asset (other than goodwill) is not recoverable when the undiscounted cash flows expected to be generated by the asset (or asset group) are less than the asset’s carrying amount. Any required impairment loss would be measured as the amount by which the asset’s carrying value exceeds its fair value, and would be recorded as a reduction in the carrying value of the related asset and a charge to operating expense. Goodwill Goodwill arises when the purchase price of an acquired business exceeds the fair value of the identifiable net assets acquired, with such excess recorded as goodwill on the balance sheet. Goodwill is not subsequently amortized. Goodwill is reviewed for impairment annually (during the fourth quarter) or more frequently if indications of impairment exist. In testing goodwill for impairment, the Company will first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the qualitative assessment indicates that it is more likely than not that the fair value of the reporting unit is less than its carrying value, then the Company will perform a quantitative impairment analysis by comparing the fair value of the reporting unit to the carrying value of the reporting unit, including goodwill. An impairment charge for goodwill is recognized for the amount by which the carrying value of the reporting unit exceeds its fair value, not to exceed the total goodwill allocated to the reporting unit. Revenue Recognition for Diagnostic Services 9 Table of Contents The Company generates revenue by performing diagnostic testing services. Revenue from the completion of diagnostic testing services is recorded at the billed value less estimated contractual adjustments. The Company performs its obligation under a contract with a customer by processing diagnostic tests and communication of test results, which is the point at which the Company has determined control is transferred to the customer for revenue recognition purposes. Recently Issued But Not Yet Adopted Accounting Pronouncements In April 2012, the Jump-Start Our Business Startups Act (the “JOBS Act”) was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for an emerging growth company. As an emerging growth company, the Company may elect to adopt new or revised accounting standards when they become effective for non-public companies, which typically is later than when public companies must adopt the standards. The Company has elected to take advantage of the extended transition period afforded by the JOBS Act and, as a result, will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for emerging growth companies, which are the dates included below. In February 2015, the FASB issued Accounting Standards Update ("ASU") 2016-2, Leases (Topic 842) , which amends the accounting guidance for leases and increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requires disclosures of key information about leasing arrangements. ASU 2016-2 initially mandated a modified retrospective transition method, however, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which amends ASU 2016-2, permitting entities the option to adopt this standard prospectively with a cumulative-effect adjustment to opening equity in the year of adoption and include required disclosures for prior periods but will not restate prior periods. The Company anticipates implementing the accounting guidance for leases using the alternative method beginning with the annual reporting period ending December 31, 2022 and interim reporting periods in 2023. The Company is in the process of evaluating the impact of adoption of the lease accounting guidance on the consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of credit Losses on Financial Instruments (ASU 2016-13) , which amends the impairment model by requiring entities to use a forward looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. The standard is effective for the company beginning in the first quarter of 2023, with early adoption permitted. the Company is currently evaluating the expected impact of ASU 2016-13 on its financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06") , which simplifies accounting for convertible instruments by removing major seperation models required under current U.S. GAAP. ASU 2020-06 removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exceptions and also simplifies the diluted earnings per share calculation in certain areas. The standard is effective for public business entities, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years and interim periods within those fiscal years beginning after December 15, 2021. For all other entities, the standard will be effective for fiscal years beginning after December 15, 2023. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and adoption must be as of the beginning of the Company's annual fiscal year. The company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. 2. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common share equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. The Company’s potentially dilutive securities which include warrants and outstanding stock options under the Company’s equity incentive plan have been excluded from the computation of diluted net loss per share as they would be anti-dilutive to the net loss per share. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position. Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares): 10 Table of Contents September 30, 2020 September 30, 2019 Stock options 5,331,000 1,844,000 Warrants 29,709,000 4,224,000 Total 35,040,000 6,068,000 3. Revenue Recognition Revenue by Source Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Instruments $ 724,000 $ 2,370,000 $ 1,487,000 $ 5,262,000 Consumables 856,000 792,000 2,016,000 1,608,000 Total product revenue 1,580,000 3,162,000 3,503,000 6,870,000 Service and other 616,000 151,000 1,010,000 470,000 Total revenue $ 2,196,000 $ 3,313,000 $ 4,513,000 $ 7,340,000 Service and other for the three and nine months includes diagnostics for the period from August 21, 2020 through September 30, 2020. Revenue by Geographic Location Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 $ % $ % $ % $ % North America $ 874,000 40 % $ 1,831,000 56 % $ 2,388,000 53 % $ 4,050,000 55 % EMEIA 1,204,000 55 % 943,000 28 % 1,908,000 42 % 2,367,000 32 % Asia Pacific 118,000 5 % 539,000 16 % 217,000 5 % 923,000 13 % Total $ 2,196,000 100 % $ 3,313,000 100 % $ 4,513,000 100 % $ 7,340,000 100 % The table above provides revenue from contracts with customers by source and geographic region (based on the customer's billing address) on a disaggregated basis. North America consists of the United States and Canada. EMEIA consists of Europe, the Middle East, India and Africa. Asia Pacific includes China, Japan, South Korea, Singapore and Australia. For the three months ended September 30, 2020 and 2019, the United States represented 40 % and 48 % of total revenue, and for the nine months ended September 30, 2020 and 2019, 51 % and 52 %, respectively. Remaining Performance Obligations As of September 30, 2020, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied was $ 500,000 . These remaining performance obligations primarily relate to extended warranty and support and maintenance obligations. The Company expects to recognize approximately 27.6 % of this amount as revenue during the remainder of 2020, 61.2 % in 2021, 7.6 % in 2022, and 3.6 % in 2023. Warranty revenue is included in Service and other revenue. The Company recognized revenue of $ 66,000 and $ 39,000 during the three months ended September 30, 2020 and 2019, respectively, and revenue of $ 299,000 and $ 117,000 during the nine months ended September 30, 2020 and 2019, respectively, which was included in the contract liability balance at the end of the previous year. Concentrations As of September 30, 2020 and December 31, 2019, one customer represented 9 % and 10 %, respectively, of the Company's accounts receivable balance. 11 Table of Contents 4. Balance Sheet Account Details September 30, 2020 December 31, 2019 Accounts receivable, net: Accounts receivable, trade 1 $ 5,749,000 $ 6,889,000 Less allowance for doubtful accounts ( 1,889,000 ) ( 555,000 ) $ 3,860,000 $ 6,334,000 1 Includes $ 635,000 of accounts receivable from diagnostic services. The Company extends credit to its customers in the normal course of business based upon an evaluation of each customer’s credit history, financial condition, and other factors. Estimates of allowances for doubtful accounts are determined by evaluating individual customer circumstances, historical payment patterns, length of time past due, and economic and other factors. During the nine months ended September 30, 2020, the Company recorded bad debt expense of $ 1,334,000 , which is included in selling, general and administrative expenses. September 30, 2020 December 31, 2019 Inventory: Materials and supplies $ 2,622,000 $ 951,000 Finished goods 1,971,000 2,493,000 $ 4,593,000 $ 3,444,000 5. Debt Paycheck Protection Program On April 17, 2020, the Company received loan proceeds of approximately $ 1.8 million (the “PPP Loan”) pursuant to the Paycheck Protection Program (“the PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) administered by the U.S. Small Business Administration (the “SBA”). The PPP Loan is scheduled to mature on April 17, 2022 (the “Maturity Date”), bears interest at a rate of 1.00% per annum, and is subject to the standard terms and conditions applicable to loans administered by the SBA under the CARES Act. The PPP Loan is evidenced by a promissory note, dated as of April 17, 2020, issued by East West Bank (the “PPP Lender”), which contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. Upon an event of default under the PPP Note, the PPP Lender may, among other things, require immediate payment of all amounts owing under the PPP Note or file suit and obtain judgment. Under the terms of the CARES Act, recipients of loans under the PPP can apply for and be granted forgiveness for all or a portion of such loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and certain other eligible costs (the “Eligible Costs”). Pursuant to the Paycheck Protection Program Flexibility Act (the “PPPFA”), enacted on June 5, 2020, the Company was permitted to use loan proceeds on Eligible Costs through October 2, 2020, or the date that was 24 weeks from the PPP Loan origination date (the “Covered Period”). The Company is continuing to evaluate guidance released by the SBA regarding qualification for forgiveness of the PPP Loan, however, no assurance is provided that forgiveness for any portion of the Company’s PPP Loan will be obtained. Under the PPPFA, payments of principal and interest due under the PPP Loan are deferred until the date on which the SBA remits the forgiveness amount, if any, back to the PPP Lender, or if forgiveness isn't sought within 10 months after the last day of the Covered Period, until the date that is 10 months from the last day of the Covered Period. The amounts outstanding under the PPP Loan may be prepaid by the Company at any time prior to maturity without penalty. In order to apply for the PPP Loan, the Company was required to certify, among other things, that the current economic uncertainty made the PPP Loan request necessary to support the Company’s ongoing operations. This certification further 12 Table of Contents required the Company to take into account the maintenance of its workforce, the Company’s need for additional funding to continue operations, and the Company’s ability to access alternative forms of capital in the current market environment to offset the effects of the COVID-19 pandemic. Loan Agreements The carrying value of the Company's debt for the periods presented was as follows: September 30, 2020 December 31, 2019 Term Loans $ 15,860,000 $ 20,473,000 Revolver — 1,498,000 PPP Loan 1,775,000 — Total principal 17,635,000 21,971,000 Less unamortized debt issuance costs ( 1,621,000 ) ( 1,886,000 ) Total carrying value of debt $ 16,014,000 $ 20,085,000 In March 2019, the Company entered into a Loan and Security Agreement (the “Innovatus LSA”) by and among Innovatus Life Sciences Lending Fund I, LP, a Delaware limited partnership (“Innovatus”), as collateral agent and the lenders listed on Schedule 1.1 thereto, including East West Bank. The Innovatus LSA provided a first term loan of $ 17.5 million, a second term loan of $ 2.5 million and a third term loan of $ 5.0 million (collectively, “Term Loans”) if the Company satisfied certain funding conditions. Interest on the Term Loans is due on the first of each month at a rate of 10.25 % per annum in cash or a discounted rate of 7.25 % in cash with 3.0 % of the 10.25 % per annum rate added to the principal of the loan and subject to accruing interest through the end of the interest only payment period, which ends March 1, 2022. At inception, the Company elected to pay interest in cash at a rate of 7.25 % per annum and have 3.0 % per annum of the interest added back to the outstanding principal. As of September 30, 2020, the effective interest rate, including debt issuance costs, for Term Loans was 16.7 %. Beginning in April 2022, the Company must make 24 equal monthly payments of principal and interest with a final maturity date in March 2024, which may be earlier due to an event of default if not cured within time specified. The Innovatus LSA also provides for a revolving line of credit in an amount not to exceed $ 5.0 million (the “Revolver”). The Company may repay and reborrow amounts under the Revolver at any time prior to the March 1, 2024 maturity date without penalty or premium. The outstanding balance of amounts borrowed under the Revolver bears interest at a rate equal to 2.0 % above the prime rate, per annum, as specified in the terms of the Revolver. The Innovatus LSA is collateralized by substantially all of the Company’s assets, including its intellectual property. The Innovatus LSA requires the Company to comply with various affirmative and negative covenants, including: (1) a liquidity covenant requiring the Company to maintain a minimum cash balance at all times in a collateral account; (2) a revenue covenant requiring the Company to meet certain minimum revenue targets measured at the end of each calendar quarter. The Innovatus LSA also includes standard events of default, including a provision that Innovatus could declare an event of default upon the occurrence of any event that it interprets as having a material adverse change in the Company's business, operations, or condition, a material impairment on the Company's ability to pay the secured obligations under the Innovatus LSA, or upon a material adverse effect on the collateral under the agreement, thereby requiring us to repay the loan immediately, together with a prepayment fee and other applicable fees. As of September 30, 2020, the Company has not received any notification or indication from Innovatus to invoke the material adverse change clause. However, due to the Company’s current cash flow position and the substantial doubt about its ability to continue as a going concern, the entire principal amount of the Term Loans are presented as short-term. The Company will continue to evaluate the debt classification on a quarterly basis and evaluate for reclassification in the future should its financial condition improve. As of December 31, 2019, the Company did not achieve certain financial covenants under the Innovatus LSA. As a result, in March 2020, the Company and Innovatus entered into an amendment to the Innovatus LSA (the “Second Amendment”) to, among other things: (i) waive the events of default from not achieving the specific financial covenants for the December 31, 2019 measurement date, (ii) require an immediate partial repayment of $ 2.1 million, (iii) require an additional partial repayment of $ 2.9 million on the earlier of completion of an Equity Event (as defined in the Second Amendment), or April 30, 2020, (iv) modify the liquidity covenant, such that the Company’s minimum cash balance shall vary based on outstanding borrowing capacity under the Revolver (provided, however, that the Company shall maintain a minimum cash balance of $ 2 million at any given time), (v) reduce the dollar amount of certain minimum revenue covenants measured as of the end of each 13 Table of Contents calendar quarter (each, a “Revenue Covenant”) and (vi) modify the terms of certain events of default. For example, the Second Amendment provides for a cure period in connection with the breach of certain minimum revenue financial covenants, as long as the Company submits an updated management plan and financial projections, which are subject to Innovatus approval, and completes a Qualified Financing Event (as defined in the Second Amendment) within 45 days of such breach. In connection with the Second Amendment, the Company was obligated to pay Innovatus a waiver fee in the amount of $ 200,000 and a prepayment fee of $ 100,000 , payable in cash or in shares of the Company’s common stock at the Company's election, no later than following completion of the Equity Event. As described in Note 6 below, the Company completed a follow-on public offering in April 2020 that constituted an Equity Event under the Second Amendment. A portion of the proceeds from the follow-on offering were used to pay-down $ 2.9 million of principal balance outstanding under the Term Loans in accordance with the Second Amendment. In addition, the Company issued 872,601 shares of its common stock to Innovatus to satisfy the $ 200,000 waiver fee and $ 100,000 prepayment fee due under the Second Amendment. Also pursuant to the Second Amendment, the Company subsequently registered such shares for resale on a registration statement on Form S-3 (the “Registration Statement”) filed with the Securities and Exchange Commission on June 22, 2020 and declared effective on July 7, 2020. We have not and will not receive any of the proceeds from the offering described in the Registration Statement. In connection with the Merger, the Company and Lineagen entered into a Third Amendment (the “Third Amendment”) to the Innovatus LSA. Among other things, the Third Amendment adds Lineagen as a “Borrower” under the Innovatus LSA and updates certain financial covenants in light of Lineagen becoming a wholly owned subsidiary of the Company. For the three months ended September 30, 2020, the Company was not in compliance with their revenue covenant under the Innovatus LSA. 6. Stockholders’ Equity and Stock-Based Compensation Follow-on Public Offering In April 2020, the Company completed an underwritten public offering of 16,896,000 shares of its common stock and, to certain investors, pre-funded warrants to purchase 37,650,000 shares of its common stock, and accompanying common warrants to purchase up to an aggregate of 54,546,000 shares of its common stock. Each share of common stock and pre-funded warrant to purchase one share of common stock was sold together with a common warrant to purchase one share of common stock. The public offering price of each share of common stock and accompanying common warrant was $ 0.33 and $ 0.329 for each pre-funded warrant. The pre-funded warrants are immediately exercisable at a price of $ 0.001 per share of common stock. The common warrants are immediately exercisable at a price of $ 0.33 per share of common stock and will expire five years from the date of issuance. The shares of common stock and pre-funded warrants, and the accompanying common warrants, were issued separately and were immediately separable upon issuance. The gross proceeds to the Company were approximately $ 18.0 million before deducting underwriting discounts and commissions and other offering expenses of $ 1.6 million. Stock Warrants A summary of the Company’s warrant activity for the nine months ended September 30, 2020 was as follows: Shares of Stock under Warrants Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2020 24,406,000 $ 1.76 4.82 $ 7,933,000 Granted 95,396,000 0.22 4.53 Exercised ( 90,093,000 ) 0.21 37,150,000 Canceled — Outstanding at September 30, 2020 29,709,000 $ 1.54 4.11 $ 1,813,000 Vested and exercisable at September 30, 2020 29,709,000 $ 1.54 4.11 $ — Shelf Registration Statement and At-the-Market Facility 14 Table of Contents In August 2020, the Company filed a shelf registration statement on Form S-3 with the SEC covering the offering, issuance and sale of up to $ 125.0 million of the Company’s securities, including up to $ 40.0 million of common stock pursuant to an at-the-market facility (“ATM”) with Ladenburg Thalmann & Co. Inc. acting as sales agent. As of September 30, 2020, the Company had not sold any shares of common stock under the ATM. Stock-Based Compensation Stock Options A summary of the Company’s stock option activity under the Company's equity incentive plans for the nine months ended September 30, 2020 was as follows: Shares of Stock under Stock Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2020 1,743,000 $ 5.73 8.2 $ 4,000 Granted 4,250,000 0.67 Exercised — — $ — Canceled ( 662,000 ) 3.52 Outstanding at September 30, 2020 5,331,000 $ 1.97 8.96 $ 353,000 Vested and exercisable at September 30, 2020 1,119,000 $ 5.10 7.31 $ — For the three months ended September 30, 2020 and 2019, the Company granted to its employees options to purchase 2,659,000 and 29,800 shares with a weighted average exercise price of $ 0.55 and $ 2.33 per share, respectively. For the nine months ended September 30, 2020 and 2019, the Company granted to its employees options to purchase 4,250,000 and 706,640 shares with a weighted average exercise price of $ 0.67 and $ 3.82 per share, respectively. For the three months ended September 30, 2020 and 2019, the weighted-average grant date fair value of stock options granted was $ 0.35 and $ 1.42 per share, respectively. For the nine months ended September 30, 2020 and 2019, the weighted-average grant date fair value of stock options granted was $ 0.43 and $ 2.19 per share, respectively. The Company recognized stock-based compensation expense for the periods presented were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Research and development $ 122,000 $ 59,000 $ 255,000 $ 169,000 General and administrative 325,000 305,000 848,000 821,000 Total stock-based compensation expense $ 447,000 $ 364,000 $ 1,103,000 $ 990,000 The weighted-average assumptions used in the Black-Scholes option pricing model to determine the fair value of the employee stock option grants during the periods presented were as follows: Three Months Ended September 30, Nine months Ended September 30, 2020 2019 2020 2019 Risk-free interest rate 0.4 % 1.8 % 0.8 % 2.4 % Expected volatility 77.9 % 68.2 % 74.8 % 68.2 % Expected term (in years) 5.5 6.1 5.9 5.1 Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % 15 Table of Contents 7. Legal Proceedings The Company is subject to potential liabilities under various claims and legal actions that are pending or may be asserted. These matters arise in the ordinary course and conduct of the business. The Company intends to continue to defend itself vigorously in such matters. The Company regularly assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in the financial statements. An estimated loss contingency is accrued in the financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on the Company’s assessment, it currently does not have any amount accrued as it is not a defendant in any claims or legal actions. 8. Income Taxes The Company is subject to taxation in the United States, United Kingdom and various state jurisdictions. The Company computes its quarterly income tax provision by using a forecasted annual effective tax rate and adjusts for any discrete items arising during the quarter. The primary difference between the effective tax rate and the federal statutory tax rate relates to the full valuation allowance on the Company's U.S. net operating losses. In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020. The CARES Act, among other things, includes tax provisions relating to refundable payroll tax credits, deferment of employer’s social security payments, net operating loss utilization and carryback periods, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property (QIP). The CARES Act did not have a material impact on the Company’s income tax provision for the three and nine months ended September 30, 2020. 9. Acquisition of Lineagen On August 21, 2020, the Company, Merger Sub, Lineagen, and Michael S. Paul, Ph.D., solely in his capacity as exclusive agent and attorney-in-fact of the securityholders of Lineagen, entered into the Merger Agreement. Pursuant to the terms and conditions of the Merger Agreement, Merger Sub merged with and into Lineagen whereupon the separate corporate existence of Merger Sub ceased, with Lineagen continuing as the surviving corporation of the Merger as a wholly owned subsidiary of the Company. Pursuant to the terms of the Merger Agreement, at the effective time of the Merger (the “Effective Time”), the shares of capital stock of Lineagen and all options of Lineagen that were issued and outstanding immediately prior to the Effective Time were automatically cancelled and extinguished without any payment with respect thereto. Certain holders of convertible notes and other indebtedness of Lineagen at the closing of the Merger (the “Closing”) received common stock of the Company. The total number of shares of the Company’s common stock issued or reserved for issuance as consideration for the Merger is 6,167,510 shares, subject to adjustment for cash, accounts receivable, unpaid indebtedness, unpaid transaction expenses and certain other liabilities of Lineagen (the “Merger Shares”). 925,126 of the Merger Shares (the “Escrowed Shares”) will be held in an escrow fund for purposes of satisfying any post-closing purchase price adjustments and indemnification claims under the Merger Agreement. Also as consideration for the Merger, pursuant to the Merger Agreement, the Company paid approximately $ 1.9 million in cash to certain creditors and assumed certain liabilities of Lineagen totaling approximately $ 2.9 million, reflective of the Company's preliminary estimate of the post-closing purchase price adjustment (which adjustment is subject to finalization pursuant to the terms of the Merger Agreement). In addition, on August 21, 2020, concurrent with the Closing, the Company paid approximately $ 1.1 million to satisfy all outstanding principal and accrued interest amounts due pursuant to that certain Promissory Note, dated April 22, 2020, by and between Lineagen and Silicon Valley Bank (the “Lineagen PPP Loan”), issued pursuant to the CARES Act administered by the SBA. The amount outstanding under the Lineagen PPP Loan previously accrued interest of 1.00% per annum and was subject to the standard terms and conditions applicable to loans administered by the SBA under the CARES Act. The Lineagen PPP Loan was repaid by the Company prior to maturity without penalty. The Company accounted for its acquisition of Lineagen using the acquisition method of accounting pursuant to ASC 805. The tangible and identifiable intangible assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date, and the excess of the purchase price over the estimated fair value assigned to the tangible and identifiable intangible assets acquired and liabilities assumed was recorded to goodwill. The purchase price allocation for the acquisition of Lineagen is preliminary and subject to revision as additional information about the fair value of assets and liabilities becomes available. As permitted under ASC 805, the Company is allowed a measurement period, which may not exceed one year, in which to complete its accounting for the acquisition. The Company has recognized provisional amounts for certain items, and subsequent adjustments during the measurement period to any of these items may affect the amount of goodwill recognized. In particular, the Company has not yet completed its accounting for any acquired tax liabilities. 16 Table of Contents As discussed above, the purchase price for the acquisition of Lineagen is subject to adjustment for cash, accounts receivable, unpaid indebtedness, unpaid transaction expenses and certain other liabilities of Lineagen. The following is the estimated purchase price for the acquisition of Lineagen: Cash (a) $ 1,940,000 Cash transferred for repayment of Lineage PPP Loan (b) $ 1,104,000 Shares common stock issued as consideration (c) 6,167,510 Estimated shares of common stock to be returned to the Company (c) ( 138,247 ) Stock price per share on Effective Date $ 0.68 Value of estimated common stock consideration (c) $ 4,100,000 Total estimated purchase price (c) $ 7,144,000 (a) The Company paid approximately $ 1.9 million in cash to certain creditors of Lineagen. (b) The Company paid approximately $ 1.1 million to satisfy all outstanding principal and accrued interest amounts due pursuant to the Lineagen PPP Loan. (c) The total number of shares of the Company’s common stock issued or reserved for issuance as consideration for the Merger was 6,167,510 shares. 925,126 of the Merger Shares will be held in an escrow fund for purposes of satisfying any post-closing purchase price adjustments and indemnification claims under the Merger Agreement. The total number of Merger Shares is subject to adjustment for cash, accounts receivable, unpaid indebtedness, unpaid transaction expenses and certain other liabilities of Lineagen. The value of the estimated common stock consideration and the total estimated purchase price incorporate the return of an estimated 138,247 Escrowed Shares to the Company based on a preliminary estimate of this adjustment. The total estimated purchase price was allocated to Lineagen’s tangible and identifiable intangible assets acquired and liabilities assumed on based on their estimated fair values as of the acquisition date, with the excess recorded as goodwill, as follows: Cash and cash equivalents $ 596,000 Accounts receivable 569,000 Other assets 209,000 Property and equipment, net 111,000 Intangible assets 1,580,000 Goodwill 6,941,000 Accounts payable and other accrued liabilities ( 2,862,000 ) Net assets acquired $ 7,144,000 The acquisition date fair values of identifiable intangible assets acquired are as following: Customer relationships $ 950,000 Trade name 630,000 Fair value of identifiable intangible assets $ 1,580,000 The customer relationships and trade name intangibles are both being amortized on a straight-line basis over their estimated useful lives of five years . Straight-line amortization was determined to be materially consistent with the pattern of expected use of the intangible assets. The Company recognized $ 1.1 million of acquisition-related costs, including financial advisor fees, legal expenses and accounting fees during the nine months ended September 30, 2020. These costs are included in the condensed consolidated statement of operations in selling, general and administrative expense. The amounts of revenue and net loss of Lineagen included in the Company’s Services and Other Revenue on the condensed consolidated statement of operations from the acquisition date to September 30, 2020 are as follows (in thousands): Revenue $ 445,000 Net loss $ ( 330,000 ) The unaudited pro forma financial information in the table below summarizes the combined results of operations for the Company and Lineagen as if the companies had been combined as of January 1, 2019. These amounts have been calculated after applying the Company’s accounting policies and adjusting the results of Lineagen to reflect the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied on January 1, 2019. The following unaudited pro forma financial information is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved as if the acquisition had taken place as of January 1, 2019. 17 Table of Contents Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Revenue $ 3,018,000 $ 5,123,000 $ 7,948,000 $ 13,287,000 Net loss ( 10,087,000 ) ( 7,588,000 ) ( 30,375,000 ) ( 26,892,000 ) Basic and diluted net loss per share $ ( 0.07 ) $ ( 0.45 ) $ ( 0.33 ) $ ( 1.61 )