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Delaware
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001-37792
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27-3019889
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.)
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Item 2.02
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Results of Operations and Financial Condition.
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Item 9.01
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Financial Statements and Exhibits
.
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Exhibit No.
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Description
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Exhibit No.
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Description
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NantHealth, Inc.
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Date:
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May 9, 2019
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By:
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/s/ Bob Petrou
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Bob Petrou
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Interim Chief Financial Officer
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Investor Contact:
Robert Jaffe
rjaffe@rjaffeco.com
424.288.4098
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•
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Total revenue in Q1 was $23.7 million, up 7% from Q1 2018
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◦
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SaaS revenue of $17.8 million in Q1, up 10% from Q1 2018 and 3% sequentially
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•
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Signed Substantial Three-year Eviti Contract with Multi-state Healthcare Payer
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•
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Sequencing and Molecular Analysis, 820 total tests ordered in Q1, including 428 GPS Cancer® and 392 Liquid GPS
SM
Tests
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•
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Clinical Decision Support (Eviti):
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◦
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In Q2, signed a three-year partnership with a leading nonprofit multi-state health plan, expanding Eviti Connect’s total covered lives to over 25 million
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◦
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In Q1, released versions 7.6 and 7.7, with the following enhancements:
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▪
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Added features that alert payers when a patient begins treatment before eligibility is determined
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▪
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Clinical content teams can now publish regimens more efficiently and effectively to meet client needs
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▪
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Payer medical management groups can now customize warnings and deviations for their clinically equivalent programs
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▪
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Payers are now provided with superior insights into member eligibility and treatment timeframes
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•
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Payer Engagement (NaviNet):
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◦
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In Q1, implemented refreshed pricing for NaviNet AllPayer services, which is expected to drive enhanced SaaS financial performance in 2019
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◦
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In Q1, enhanced new workflow capabilities within the Authorizations applications to support functionality in submission workflow, and updated the Authorization Appeals application to better support users
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◦
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In Q1, upgraded the Claim Status Inquiry tool to allow for better visibility of actions taken within NaviNet for non-NaviNet Claims, increasing utility of the NaviNet solution beyond current payer partners
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◦
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In Q1, provided health plans/payers greater efficiency by allowing enhanced customization to Open Claim attachment metadata, improving automated file retrieval and processing on their backend
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•
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Connected Care (DeviceConX):
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◦
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In Q1, participated in Healthcare Information and Management Systems Society (HIMSS) Conference in Orlando FL, showcasing the DeviceConX solution’s ability to successfully deliver GE Healthcare
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◦
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In Q1, significantly increased connectivity license sales, driving improved recurring maintenance revenue on a go forward basis, as previously announced
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◦
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In Q1, as previously announced, deployed DeviceConX Version 5.15 upgrade, with the ability to push OS security patches directly to HBox Connected Care hardware devices
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◦
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In April, the company presented its VitalsConX technology at the American Nursing Informatics Association (ANIA) Annual Conference, demonstrating the ease of collecting, inputting and integrating patient data into electronic health records (EHRs)
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◦
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In Q1, total GPS orders were 820, comprised of GPS Cancer of 428 and Liquid GPS of 392
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◦
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In Q1, scientific teams from NantHealth and NantOmics presented five posters at the American Society of Clinical Oncology’s (ASCO) Gastrointestinal Cancers Symposium and two posters at the ASCO’s Genitourinary Cancers Symposium. The research presented focused on the significance of RNA expression, in tissue and blood, and individual biomarkers in determining why some patients do not respond to targeted cancer therapies based on DNA genomic profiling alone
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March 31,
2019 |
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December 31,
2018 |
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(Unaudited)
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Assets
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Current assets
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Cash and cash equivalents
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$
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12,444
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$
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18,305
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Accounts receivable, net
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15,288
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15,286
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Inventories
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416
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496
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Related party receivables, net
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735
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1,007
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Prepaid expenses and other current assets
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5,264
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4,350
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Total current assets
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34,147
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39,444
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Property, plant, and equipment, net
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20,673
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22,978
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Goodwill
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115,930
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115,930
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Intangible assets, net
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62,416
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64,703
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Investment in related party
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37,810
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40,000
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Related party receivable, net of current
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1,603
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1,611
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Operating lease right-of-use assets
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11,099
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—
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Other assets
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1,566
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1,671
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Total assets
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$
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285,244
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$
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286,337
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Liabilities and Stockholders' Equity (Deficit)
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Current liabilities
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Accounts payable
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$
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2,335
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$
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1,650
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Accrued and other current liabilities
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15,293
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13,832
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Deferred revenue
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16,892
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16,263
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Related party payables, net
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4,856
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4,791
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Total current liabilities
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39,376
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36,536
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Deferred revenue, net of current
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7,091
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6,704
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Related party liabilities
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19,313
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17,708
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Related party promissory note
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112,666
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112,666
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Related party convertible note, net
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8,494
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8,378
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Convertible notes, net
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80,674
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79,433
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Operating lease liabilities
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12,404
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—
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Other liabilities
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21,589
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22,081
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Total liabilities
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301,607
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283,506
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Stockholders' equity (deficit)
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Common stock, $0.0001 par value per share, 750,000,000 shares authorized; 109,921,647 and 109,491,277 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively (including 1 share of restricted stock at both dates)
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11
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11
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Additional paid-in capital
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887,963
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887,289
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Accumulated deficit
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(904,045
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)
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(884,122
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)
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Accumulated other comprehensive loss
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(292
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)
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(347
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)
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Total stockholders' equity (deficit)
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(16,363
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)
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2,831
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Total liabilities and stockholders' equity (deficit)
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$
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285,244
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$
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286,337
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Three Months Ended
March 31, |
||||||
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2019
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2018
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||||
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Total net revenue
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$
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23,729
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$
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22,263
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Total cost of revenue
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11,290
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11,068
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Gross Profit
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12,439
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11,195
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Operating Expenses:
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Selling, general and administrative
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16,789
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20,737
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Research and development
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5,080
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5,151
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Amortization of acquisition-related assets
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1,054
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1,054
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Total operating expenses
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22,923
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26,942
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Loss from operations
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(10,484
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)
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(15,747
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)
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Interest expense, net
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(4,414
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)
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(4,197
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)
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Other (expense) income, net
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(2,505
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)
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180
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Loss from related party equity method investment
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(2,210
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)
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(3,261
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)
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Loss from continuing operations before income taxes
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(19,613
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)
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(23,025
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)
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Provision for (benefit from) income taxes
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226
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(1,050
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)
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Net loss from continuing operations
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(19,839
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)
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(21,975
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)
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Loss from discontinued operations, net of tax
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(84
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)
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(193
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)
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Net loss
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$
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(19,923
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)
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$
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(22,168
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)
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Net loss per share:
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Continuing operations
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Basic and diluted - common stock
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$
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(0.18
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)
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$
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(0.20
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)
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||||
Discontinued operations
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Basic and diluted - common stock
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$
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—
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$
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—
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||||
Total net loss per share
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|
||||
Basic and diluted - common stock
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$
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(0.18
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)
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$
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(0.20
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)
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||||
Weighted average shares outstanding:
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|
||||
Basic and diluted - common stock
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109,904,336
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108,579,271
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Three Months Ended
March 31, |
||||||
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2019
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2018
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||||
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Revenue:
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|
||||
Software-as-a-service related
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$
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17,802
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$
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16,166
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Software and hardware related
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1,027
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1,455
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Maintenance
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2,493
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2,446
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Total software-related revenue
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21,322
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20,067
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Sequencing and molecular analysis
|
814
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|
840
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Home health care services
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1,593
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1,356
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Total net revenue
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$
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23,729
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$
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22,263
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|
||||
Cost of Revenue:
|
|
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|
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Software-as-a-service related
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$
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5,752
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$
|
6,602
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Software and hardware related
|
785
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|
|
885
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Maintenance
|
270
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|
|
215
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Amortization of developed technologies
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1,233
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|
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1,173
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Total software-related cost of revenue
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8,040
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|
|
8,875
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Sequencing and molecular analysis
|
2,427
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|
|
1,431
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Home health care services
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823
|
|
|
762
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Total cost of revenue
|
$
|
11,290
|
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$
|
11,068
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|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
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|
||||||
Net loss from continuing operations
|
$
|
(19,839
|
)
|
|
$
|
(21,975
|
)
|
Adjustments to GAAP net loss:
|
|
|
|
||||
Loss from related party equity method investment
|
2,210
|
|
|
3,261
|
|
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Stock-based compensation expense from continuing operations
|
650
|
|
|
2,718
|
|
||
Acquisition related sales incentive
|
—
|
|
|
145
|
|
||
Change in fair value of derivatives liability
|
—
|
|
|
(1
|
)
|
||
Change in fair value of Bookings Commitment
|
2,494
|
|
|
—
|
|
||
Noncash interest expense related to convertible notes
|
1,357
|
|
|
1,194
|
|
||
Intangible amortization from continuing operations
|
2,287
|
|
|
2,227
|
|
||
Securities litigation costs
|
—
|
|
|
73
|
|
||
Tax provision (benefit) resulting from certain noncash tax items
|
111
|
|
|
(1,123
|
)
|
||
Total adjustments to GAAP net loss from continuing operations
|
9,109
|
|
|
8,494
|
|
||
Net loss - Non-GAAP from continuing operations
|
$
|
(10,730
|
)
|
|
$
|
(13,481
|
)
|
|
|
|
|
||||
Weighted average shares outstanding
|
109,904,336
|
|
|
108,579,271
|
|
||
|
|
|
|
||||
Net loss per share from continuing operations - Non-GAAP
|
$
|
(0.10
|
)
|
|
$
|
(0.12
|
)
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
|
|
|
|
||||
Net loss from continuing operations
|
$
|
(0.18
|
)
|
|
$
|
(0.20
|
)
|
Adjustments to GAAP net loss per common share from continuing operations:
|
|
|
|
||||
Loss from related party equity method investment
|
0.02
|
|
|
0.03
|
|
||
Stock-based compensation expense from continuing operations
|
0.01
|
|
|
0.03
|
|
||
Acquisition related sales incentive
|
—
|
|
|
—
|
|
||
Change in fair value of derivatives liability
|
—
|
|
|
—
|
|
||
Change in fair value of Bookings Commitment
|
0.02
|
|
|
—
|
|
||
Noncash interest expense related to convertible notes
|
0.01
|
|
|
0.01
|
|
||
Intangible amortization from continuing operations
|
0.02
|
|
|
0.02
|
|
||
Securities litigation costs
|
—
|
|
|
—
|
|
||
Tax provision (benefit) resulting from certain noncash tax items
|
—
|
|
|
(0.01
|
)
|
||
Total adjustments to GAAP net loss per common share from continuing operations
|
0.08
|
|
|
0.08
|
|
||
Net loss per common share from continuing operations - Non-GAAP
|
$
|
(0.10
|
)
|
|
$
|
(0.12
|
)
|