Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information
Our common stock began trading on The Nasdaq Global Market on September 19, 2019 under the symbol "XGN." Prior to September 19, 2019, there was no public market for our common stock.
Holders of Record
As of March 12, 2021, there were approximately 47 stockholders of record of our common stock. This number was derived from our shareholder records and does not include beneficial owners of our common stock whose shares are held in "street" name with various dealers, clearing agencies, banks, brokers and other fiduciaries.
Dividend Policy
We have never declared or paid any cash dividends on our capital stock. We intend to retain future earnings, if any, to finance the operation of our business and do not anticipate paying any cash dividends in the foreseeable future. Any future determination related to dividend policy will be made at the discretion of our board of directors after considering our financial condition, results of operations, capital requirements, business prospects and other factors the board of directors deems relevant, and subject to the restrictions contained in any future financing instruments. In addition, our ability to pay cash dividends is currently prohibited by the terms of our Amended Loan Agreement.
Securities Authorized for Issuance under Equity Compensation Plans
See Part III, Item 12 of this Annual Report under the section titled "Security Ownership of Certain Beneficial Owners and Management" for information about our equity compensation plans which is incorporated by reference herein.
Performance Graph
Not applicable.
Recent Sales of Unregistered Securities
None.
Use of Proceeds
On September 18, 2019, the SEC declared effective our registration statement on Form S-1 (File No. 333-233446), as amended, filed in connection with our IPO. At the closing of the offering on September 23, 2019, we issued and sold 4,140,00 shares of our common stock at the initial public offering price to the public of $14.00 per share, which included the exercise in full of the underwriters’ option to purchase additional shares. We received gross proceeds from the IPO of $58.0 million, before deducting underwriting discounts, commissions and other offering expenses, which resulted in net proceeds of approximately $50.4 million and offering-related transaction costs of approximately $7.5 million. Cowen and Company, LLC, Cantor Fitzgerald & Co. and William Blair & Company, L.L.C. acted as joint book-running managers for the offering. No offering expenses were paid or are payable, directly or indirectly, to our directors or officers, to persons owning 10% or more of any class of our equity securities or to any of our affiliates.
As of December 31, 2020, we have used approximately $16.8 million of the proceeds from our IPO primarily related to selling and marketing activities. There has been no material change in the planned use of such proceeds from that described in the final prospectus filed by us with the SEC on September 20, 2019.
Purchases of Equity Securities by the Issuer
None.
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Item 6. Selected Financial Data
The following tables set forth our selected historical financial data as of, and for the periods ended on, the dates indicated. We have derived the selected statements of operations data for the years ended December 31, 2020 and 2019 and the balance sheet data as of December 31, 2020 and 2019 from our audited financial statements included elsewhere in this Annual Report on Form 10-K. We have derived the selected statements of operations data for the years ended December 31, 2018 and 2017 and the balance sheet data as of December 31, 2018 and 2017 from our audited financial statements not included in this Annual Report on Form 10-K. You should read this data together with our audited financial statements and the related notes included elsewhere in this Annual Report on Form 10-K and the section of this prospectus entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Our historical results for any prior period are not necessarily indicative of our future results.
Years Ended December 31,
(in thousands, except share and per share data) 2020 2019 2018 2017
Statements of Operations Data:
Revenue $ 41,975 $ 40,387 $ 32,440 $ 26,807
Operating expenses:
Costs of revenue (excluding amortization of purchased technology) 16,559 18,808 15,379 14,137
Selling, general and administrative expenses 37,033 28,702 19,675 18,820
Research and development expenses 3,568 2,176 2,125 1,551
Amortization of intangible assets — — 141 186
Change in fair value of acquisition-related liabilities — — — (51)
Total operating expenses 57,160 49,686 37,320 34,643
Loss from operations (15,185) (9,299) (4,880) (7,836)
Interest expense (2,565) (3,491) (2,868) (2,948)
Loss on extinguishment of share purchase rights and 2013 Term Loan — — — (6,050)
Change in fair value of financial instruments — 267 (318) (9,391)
Other income, net 984 510 112 45
Loss before income taxes (16,766) (12,013) (7,954) (26,180)
Income tax benefit (expense) 79 (25) (58) 549
Net loss (16,687) (12,038) (8,012) (25,631)
Accretion of redeemable convertible preferred stock — (4,640) (9,318) (5,353)
Deemed dividend recorded in connection with financing transactions — (13,601) (1,152) (1,790)
Net loss attributable to common stockholders $ (16,687) $ (30,279) $ (18,482) $ (32,774)
Net loss per share, basic and diluted $ (1.32) $ (8.46) $ (293.34) $ (520.18)
Weighted-average number of shares used to compute net loss per share, basic and diluted 12,632,780 3,578,771 63,005 63,005
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December 31,
(in thousands) 2020 2019 2018 2017
Balance Sheet Data:
Cash and cash equivalents $ 57,448 $ 72,084 $ 13,164 $ 11,241
Working capital (1) 61,746 75,355 12,360 8,270
Total assets 78,375 88,310 28,887 20,390
Borrowings, non-current portion, net of discounts and debt issuance costs 26,659 25,854 24,617 18,809
Capital lease obligations, including current portion 884 874 360 108
Redeemable convertible preferred stock warrant liabilities — — 1,503 896
Redeemable convertible preferred stock — — 105,232 92,046
Total stockholders' equity (deficit) 41,839 55,659 (111,966) (96,684)
(1) We define working capital as current assets less current liabilities. See our audited financial statements and the related notes included elsewhere in this Annual Report on Form 10-K for further details regarding our current assets and current liabilities.
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