COMPLETE GENOMICS INC

CIK:0001361103|SEC Filings

NET LOSS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2012

Antidilutive Securities Excluded from Computation of Earnings Per Share

The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:


	September 30,
	2012		2011
Common stock issuable upon conversion of the Note		1,904,761		—
Options to purchase common stock		4,124,736		4,176,872
Employee Stock Purchase Plan purchase rights		286,927		83,562
Restricted stock units for common stock		1,079,335		27,500
Warrants to purchase common stock		1,533,823		1,533,823

Total		8,929,582		5,821,757

Condensed Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities
Net loss	$ (57,048)	$ (50,026)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	10,142	8,368
Increase in inventory reserves	269	480
Change in fair value of warrant liability		361
Stock-based compensation	4,725	2,905
Noncash interest expense related to notes payable	621	350
Other	194	25
Changes in assets and liabilities
Accounts receivable	1,100	2
Inventory	(2,912)	232
Prepaid expenses	(192)	291
Other current assets	246	(281)
Other assets	276	(368)
Accounts payable	456	1,357
Accrued liabilities	441	2,317
Deferred revenue	(937)	1,190
Deferred rent	(640)	(580)
Net cash used in operating activities	(43,259)	(33,377)
Cash flows from investing activities
Purchase of available-for-sale securities	(15,998)	(52,653)
Proceeds from maturities of available-for-sale securities	21,998	12,451
Purchase of property and equipment	(8,944)	(15,563)
Purchase of patent		(250)
Net cash used in investing activities	(2,944)	(56,015)
Cash flows from financing activities
Proceeds from notes payable		20,000
Proceeds from convertible notes payable	6,000
Repayment of notes payable	(4,307)	(9,096)
Proceeds from issuance of common stock, net of costs	1,091	73,932
Proceeds from issuance of common stock under equity incentive plans	1,060	549
Net cash provided by financing activities	3,844	85,385
Net decrease in cash and cash equivalents	(42,359)	(4,007)
Cash and cash equivalents at beginning of period	77,074	68,918
Cash and cash equivalents at end of period	34,715	64,911
Supplemental disclosure of cash flow information
Cash paid for interest	1,683	1,578
Supplemental disclosure of noncash investing and financing activities
Issuance of warrants for common stock in connection with term debt		987
Acquisition of property and equipment under accounts payable	(845)	777
Reclassification of warrant liability to additional-paid-in capital upon exercise of warrant		$ 643

Balance Sheet Components

9 Months Ended

Sep. 30, 2012

Balance Sheet Components

7. BALANCE SHEET COMPONENTS

Inventory

Inventory consists of the following:


	September 30, 2012		December 31, 2011
	(in thousands)
Raw materials	$	2,505	$	1,617
Work-in-progress		2,826		1,923
Finished goods		1,433		581

	$	6,764	$	4,121

Property and equipment, net

Property and equipment, net, consist of the following:


	September 30, 2012			December 31, 2011
	(in thousands)
Computer equipment	$	10,612		$	10,442
Computer software		2,631			2,398
Furniture and fixtures		575			586
Machinery and equipment		32,811			30,017
Leasehold improvements		11,095			10,800
Equipment under construction		7,725			3,301

		65,449			57,544
Less: Accumulated depreciation and amortization		(34,056	)		(23,952	)

	$	31,393		$	33,592

Depreciation and amortization expense for the three months ended September 30, 2012 and 2011 was $2.6 million and $3.1 million, respectively. Depreciation and amortization expense for the nine months ended September 30, 2012 and 2011 was $10.1 million and $8.4 million, respectively.

In June 2012, the Company accelerated the amortization of certain leasehold improvements and depreciation of certain furniture and fixtures associated with a leased facility the Company vacated in July 2012 (see Note 8) as part of its restructuring plan announced on June 5, 2012 (see Note 12). The impact of the accelerated depreciation and amortization related to the vacated facility for the three and nine months ended September 30, 2012 was $0.3 million and $0.6 million, respectively.

Accrued liabilities

Accrued liabilities consist of the following:


	September 30, 2012		December 31, 2011
	(in thousands)
Accrued paid time off	$	2,317	$	1,840
Accrued compensation and benefits—other		2,036		1,909
Accrued restructuring charges		43		—
Deferred rent, current		855		793
Other		729		858

	$	5,980	$	5,400