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December 31, 2016 | December 31, 2015 | ||||||
(In thousands) | |||||||
Cash and cash equivalents | $ | 22,058 | $ | 32,838 | |||
Long-term restricted cash equivalents | 6,336 | — | |||||
Total cash, cash equivalents and restricted cash equivalents | $ | 28,394 | $ | 32,838 |
• | The Company recognizes share-based payment forfeitures as they occur. Prior to adoption, forfeitures were estimated in order to arrive at current period expense. There was a cumulative effect adjustment of $0.4 million to Accumulated deficit on the Consolidated Balance Sheet as of January 1, 2016 as a result of the adoption of this amendment on a modified retrospective basis. |
• | The Company, upon election by an employee, withholds award shares with a fair value up to the amount of tax owed upon vesting or exercise using the maximum statutory tax rate in the employee's applicable jurisdiction while still qualifying for equity classification. Prior to adoption, the Company was only able to withhold award shares with a fair value up to the minimum statutory tax rate. There was no cumulative effect adjustment as a result of the adoption of this amendment on a modified retrospective basis. |
• | The Company presents employee taxes paid by the Company through the withholding of award shares as a financing activity in the Consolidated Statements of Cash Flows. The effect of this retrospective change on the Company's Consolidated Statements of Cash Flows was not significant. |
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December 31, 2016 | December 31, 2015 | ||||||
(In thousands) | |||||||
Equity Method: | |||||||
Partner companies | $ | 154,219 | $ | 150,898 | |||
Private equity funds | 447 | 942 | |||||
154,666 | 151,840 | ||||||
Cost Method: | |||||||
Partner companies | 2,112 | 5,024 | |||||
Private equity funds | 1,550 | 1,966 | |||||
3,662 | 6,990 | ||||||
Advances to partner companies | 25,142 | 12,771 | |||||
$ | 183,470 | $ | 171,601 |
As of December 31, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Balance Sheets: | |||||||
Current assets | $ | 229,756 | $ | 213,884 | |||
Non-current assets | 106,555 | 89,987 | |||||
Total assets | $ | 336,311 | $ | 303,871 | |||
Current liabilities | $ | 215,622 | $ | 192,025 | |||
Non-current liabilities | 110,315 | 74,208 | |||||
Shareholders’ equity | 10,374 | 37,638 | |||||
Total liabilities and shareholders’ equity | $ | 336,311 | $ | 303,871 | |||
Number of partner companies | 5 | 6 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In thousands) | |||||||||||
Results of Operations: | |||||||||||
Revenue | $ | 272,216 | $ | 301,132 | $ | 249,157 | |||||
Gross profit | $ | 200,811 | $ | 208,883 | $ | 164,514 | |||||
Net loss | $ | (40,815 | ) | $ | (46,558 | ) | $ | (55,394 | ) |
As of December 31, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Balance Sheets: | |||||||
Current assets | $ | 66,204 | $ | 84,041 | |||
Non-current assets | 17,756 | 16,762 | |||||
Total assets | $ | 83,960 | $ | 100,803 | |||
Current liabilities | $ | 40,660 | $ | 40,268 | |||
Non-current liabilities | 14,851 | 27,449 | |||||
Shareholders’ equity | 28,449 | 33,086 | |||||
Total liabilities and shareholders’ equity | $ | 83,960 | $ | 100,803 | |||
Number of partner companies | 7 | 7 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In thousands) | |||||||||||
Results of Operations: | |||||||||||
Revenue | $ | 61,293 | $ | 53,002 | $ | 39,391 | |||||
Gross profit | $ | 34,682 | $ | 30,928 | $ | 26,158 | |||||
Net loss | $ | (52,111 | ) | $ | (34,064 | ) | $ | (30,012 | ) |
As of December 31, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Balance Sheets: | |||||||
Current assets | $ | 73,698 | $ | 59,738 | |||
Non-current assets | 4,915 | 2,705 | |||||
Total assets | $ | 78,613 | $ | 62,443 | |||
Current liabilities | $ | 29,431 | $ | 21,399 | |||
Non-current liabilities | 33,385 | 9,172 | |||||
Shareholders’ equity | 15,797 | 31,872 | |||||
Total liabilities and shareholders’ equity | $ | 78,613 | $ | 62,443 | |||
Number of partner companies | 17 | 15 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In thousands) | |||||||||||
Results of Operations: | |||||||||||
Revenue | $ | 31,172 | $ | 15,071 | $ | 9,661 | |||||
Gross profit | $ | 18,777 | $ | 10,234 | $ | 6,008 | |||||
Net loss | $ | (93,440 | ) | $ | (57,762 | ) | $ | (23,588 | ) |
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Carrying Value | Fair Value Measurement at December 31, 2016 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
(in thousands) | |||||||||||||||
Cash and cash equivalents | $ | 22,058 | $ | 22,058 | $ | — | $ | — | |||||||
Long-term restricted cash equivalents | 6,336 | 6,336 | — | — | |||||||||||
Marketable securities—held-to-maturity: | |||||||||||||||
Certificates of deposit | $ | 15,686 | $ | 15,686 | $ | — | $ | — | |||||||
Total marketable securities | $ | 15,686 | $ | 15,686 | $ | — | $ | — |
Carrying Value | Fair Value Measurement at December 31, 2015 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | |||||||||||||||
Cash and cash equivalents | $ | 32,838 | $ | 32,838 | $ | — | $ | — | |||||||
Marketable securities—held-to-maturity: | |||||||||||||||
Government agency bonds | $ | 1,329 | $ | 1,329 | $ | — | $ | — | |||||||
Certificates of deposit | 39,434 | 39,434 | — | — | |||||||||||
Total marketable securities | $ | 40,763 | $ | 40,763 | $ | — | $ | — |
|
• | during any calendar quarter commencing after the calendar quarter ending on December 31, 2012, if the last reported sale price of the common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; |
• | during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on such trading day; |
• | if the notes have been called for redemption; or |
• | upon the occurrence of specified corporate events. |
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Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In thousands) | |||||||||||
General and administrative expense | $ | 2,394 | $ | 1,611 | $ | 1,935 | |||||
$ | 2,394 | $ | 1,611 | $ | 1,935 |
Year Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Service-Based Options | ||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | ||
Expected volatility | 25 | % | 26 | % | 32 | % | ||
Average expected option life | 5 years | 5 years | 5 years | |||||
Risk-free interest rate | 1.5 | % | 1.5 | % | 1.7 | % | ||
Year Ended December 31, | ||||||||
2014 | ||||||||
Performance-Based Options | ||||||||
Dividend yield | 0 | % | ||||||
Expected volatility | 32 | % | ||||||
Average expected option life | 4.8 years | |||||||
Risk-free interest rate | 1.7 | % |
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||
(In thousands) | (In years) | (In thousands) | ||||||||||
Outstanding at December 31, 2013 | 1,828 | $ | 12.51 | |||||||||
Options granted | 31 | 19.38 | ||||||||||
Options exercised | (365 | ) | 11.48 | |||||||||
Options canceled/forfeited | (178 | ) | 13.58 | |||||||||
Outstanding at December 31, 2014 | 1,316 | 12.81 | ||||||||||
Options granted | 31 | 17.26 | ||||||||||
Options exercised | (155 | ) | 13.12 | |||||||||
Options canceled/forfeited | (107 | ) | 13.06 | |||||||||
Outstanding at December 31, 2015 | 1,085 | 12.86 | ||||||||||
Options granted | 27 | 13.03 | ||||||||||
Options exercised | (170 | ) | 7.56 | |||||||||
Options canceled/forfeited | (264 | ) | 11.06 | |||||||||
Outstanding at December 31, 2016 | 678 | 14.90 | 4.37 | $ | 314 | |||||||
Options exercisable at December 31, 2016 | 279 | 15.37 | 3.01 | 122 | ||||||||
Options vested and expected to vest at December 31, 2016 | 678 | 14.90 | 4.37 | 314 | ||||||||
Shares available for future grant | 2,077 |
Shares | Weighted Average Grant Date Fair Value | |||||
(In thousands) | ||||||
Unvested at December 31, 2014 | 455 | $ | 17.09 | |||
Granted | 286 | 15.02 | ||||
Vested | (64 | ) | 17.42 | |||
Forfeited | (7 | ) | 18.76 | |||
Unvested at December 31, 2015 | 670 | 16.16 | ||||
Granted | 413 | 13.27 | ||||
Vested | (89 | ) | 16.46 | |||
Forfeited | (61 | ) | 17.08 | |||
Unvested at December 31, 2016 | 933 | 14.79 |
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Year ended December 31, 2016: | |||
Loss on impairment of Penn Mezzanine debt and equity participations | $ | (2,360 | ) |
Gain on sale of Bridgevine | 424 | ||
Other | 254 | ||
$ | (1,682 | ) |
Year ended December 31, 2015: | |||
Gain on proceeds received from escrow related to sale of Crescendo | $ | 2,914 | |
Loss on impairment of Dabo Health | (2,356 | ) | |
Loss on impairment of legacy private equity fund | (398 | ) | |
Other | 57 | ||
$ | 217 |
Year ended December 31, 2014: | |||
Gain on sale of Crescendo Bioscience | $ | 27,365 | |
Gain on sale of NuPathe | 3,017 | ||
Gain on sale of Sotera Wireless | 1,453 | ||
Loss on sale of Penn Mezzanine equity participation | (255 | ) | |
Other | 77 | ||
$ | 31,657 |
|
Year Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Statutory tax (benefit) expense | (35.0 | )% | (35.0 | )% | (35.0 | )% | ||
Increase in taxes resulting from: | ||||||||
Stock-based compensation | 0.2 | 0.1 | 1.5 | |||||
Nondeductible expenses | 0.4 | 0.2 | 2.9 | |||||
Valuation allowance | 34.4 | 34.7 | 30.6 | |||||
0.0 | % | 0.0 | % | 0.0 | % |
As of December 31, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Deferred tax asset: | |||||||
Carrying values of partner companies and other holdings | $ | 95,134 | $ | 83,042 | |||
Tax loss and credit carryforwards | 82,775 | 84,493 | |||||
Accrued expenses | 1,183 | 1,391 | |||||
Stock-based compensation | 1,763 | 1,655 | |||||
Other | 1,310 | 1,369 | |||||
182,165 | 171,950 | ||||||
Valuation allowance | (182,165 | ) | (171,950 | ) | |||
Net deferred tax asset | $ | — | $ | — |
Total | |||
(In thousands) | |||
2017 | $ | — | |
2018 | — | ||
2019 | — | ||
2020 | — | ||
2021 and thereafter | 225,369 | ||
$ | 225,369 |
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Total | |||
(In thousands) | |||
2017 | $ | 584 | |
2018 | 591 | ||
2019 | 602 | ||
2020 | 601 | ||
2021 and thereafter | 3,242 | ||
$ | 5,620 |
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Safeguard Primary Ownership as of December 31, | ||||||||||
Partner Company | Revenue Stage | 2016 | 2015 | 2014 | Accounting Method | |||||
AdvantEdge Healthcare Solutions, Inc. | High Traction | 40.1% | 40.1% | 40.1% | Equity | |||||
Aktana, Inc. | Initial Revenue | 31.2% | NA | NA | Equity | |||||
Apprenda, Inc. | Expansion | 29.4% | 29.5% | 21.6% | Equity | |||||
Beyond.com, Inc. | High Traction | 38.2% | 38.2% | 38.2% | Equity | |||||
Brickwork | Initial Revenue | 20.3% | NA | NA | Equity | |||||
Cask Data, Inc. | Initial Revenue | 31.3% | 34.2% | NA | Equity | |||||
CloudMine, Inc. | Initial Revenue | 30.1% | 30.1% | NA | Equity | |||||
Clutch Holdings, Inc. | Expansion | 42.8% | 39.3% | 29.6% | Equity | |||||
Full Measure Education, Inc. | Initial Revenue | 35.2% | 25.4% | NA | Equity | |||||
Good Start Genetics, Inc. | High Traction | 29.6% | 29.6% | 29.9% | Equity | |||||
Hoopla Software, Inc. | Initial Revenue | 25.5% | 25.6% | 25.6% | Equity | |||||
InfoBionic, Inc. | Initial Revenue | 39.7% | 38.5% | 27.8% | Equity | |||||
Lumesis, Inc. | Initial Revenue | 44.1% | 44.7% | 45.7% | Equity | |||||
MediaMath, Inc. | High Traction | 20.5% | 20.6% | 20.7% | Equity | |||||
meQuilibrium | Initial Revenue | 31.5% | 31.5% | NA | Equity | |||||
Moxe Health Corporation | Initial Revenue | 32.4% | NA | NA | Equity | |||||
NovaSom, Inc. | High Traction | 31.7% | 31.7% | 31.7% | Equity | |||||
Pneuron Corporation | Initial Revenue | 35.4% | 35.4% | 27.6% | Equity | |||||
Prognos (formerly Medivo) | Expansion | 35.2% | 34.5% | 34.5% | Equity | |||||
Propeller Health, Inc. | Initial Revenue | 24.0% | 24.6% | 24.6% | Equity | |||||
QuanticMind, Inc. | Initial Revenue | 23.2% | 23.6% | NA | Equity | |||||
Sonobi, Inc. | Expansion | 21.6% | 22.6% | NA | Equity | |||||
Spongecell, Inc. | Expansion | 23.0% | 23.0% | 23.0% | Equity | |||||
Syapse, Inc. | Initial Revenue | 26.2% | 24.4% | 27.0% | Equity | |||||
T-REX Group, Inc. | Initial Revenue | 23.6% | NA | NA | Equity | |||||
Transactis, Inc. | Expansion | 24.2% | 24.5% | 24.8% | Equity | |||||
Trice Medical, Inc. | Initial Revenue | 27.6% | 27.7% | 31.9% | Equity | |||||
WebLinc, Inc. | Expansion | 38.0% | 29.2% | 29.2% | Equity | |||||
Zipnosis, Inc | Initial Revenue | 25.4% | 26.3% | NA | Equity |
|
Three Months Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2016: | |||||||||||||||
General and administrative expense | $ | 5,228 | $ | 4,849 | $ | 4,687 | $ | 3,928 | |||||||
Operating loss | (5,228 | ) | (4,849 | ) | (4,687 | ) | (3,928 | ) | |||||||
Other income (loss), net | — | 659 | (2,405 | ) | 64 | ||||||||||
Interest income | 420 | 527 | 513 | 615 | |||||||||||
Interest expense | (1,149 | ) | (1,155 | ) | (1,161 | ) | (1,169 | ) | |||||||
Equity income (loss) | (9,495 | ) | 43,794 | (16,345 | ) | (17,283 | ) | ||||||||
Net income (loss) before income taxes | (15,452 | ) | 38,976 | (24,085 | ) | (21,701 | ) | ||||||||
Income tax benefit (expense) | — | — | — | — | |||||||||||
Net income (loss) | $ | (15,452 | ) | $ | 38,976 | $ | (24,085 | ) | $ | (21,701 | ) | ||||
Net income (loss) per share (a) | |||||||||||||||
Basic | $ | (0.76 | ) | $ | 1.92 | $ | (1.18 | ) | $ | (1.07 | ) | ||||
Diluted | $ | (0.76 | ) | $ | 1.70 | $ | (1.18 | ) | $ | (1.07 | ) | ||||
2015: | |||||||||||||||
General and administrative expense | $ | 4,880 | $ | 4,754 | $ | 3,962 | $ | 3,958 | |||||||
Operating loss | (4,880 | ) | (4,754 | ) | (3,962 | ) | (3,958 | ) | |||||||
Other income (loss), net | (388 | ) | (15 | ) | 704 | (84 | ) | ||||||||
Interest income | 449 | 640 | 398 | 448 | |||||||||||
Interest expense | (1,122 | ) | (1,128 | ) | (1,133 | ) | (1,140 | ) | |||||||
Equity loss | (8,662 | ) | (13,765 | ) | (7,635 | ) | (9,537 | ) | |||||||
Net loss before income taxes | (14,603 | ) | (19,022 | ) | (11,628 | ) | (14,271 | ) | |||||||
Income tax benefit (expense) | — | — | — | — | |||||||||||
Net loss | $ | (14,603 | ) | $ | (19,022 | ) | $ | (11,628 | ) | $ | (14,271 | ) | |||
Net loss per share (a) | |||||||||||||||
Basic | $ | (0.70 | ) | $ | (0.91 | ) | $ | (0.56 | ) | $ | (0.69 | ) | |||
Diluted | $ | (0.70 | ) | $ | (0.91 | ) | $ | (0.56 | ) | $ | (0.69 | ) |
(a) | Per share amounts for the quarters have each been calculated separately. Accordingly, quarterly amounts may not add to the annual amounts because of differences in the average common shares outstanding during each period. Additionally, in regard to diluted per share amounts only, quarterly amounts may not add to the annual amounts because of the inclusion of the effect of potentially dilutive securities only in the periods in which such effect would have been dilutive, and because of the adjustments to net income (loss) for the dilutive effect of partner company common stock equivalents and convertible securities. |
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December 31, 2016 | December 31, 2015 | ||||||
(In thousands) | |||||||
Cash and cash equivalents | $ | 22,058 | $ | 32,838 | |||
Long-term restricted cash equivalents | 6,336 | — | |||||
Total cash, cash equivalents and restricted cash equivalents | $ | 28,394 | $ | 32,838 |
• | The Company recognizes share-based payment forfeitures as they occur. Prior to adoption, forfeitures were estimated in order to arrive at current period expense. There was a cumulative effect adjustment of $0.4 million to Accumulated deficit on the Consolidated Balance Sheet as of January 1, 2016 as a result of the adoption of this amendment on a modified retrospective basis. |
• | The Company, upon election by an employee, withholds award shares with a fair value up to the amount of tax owed upon vesting or exercise using the maximum statutory tax rate in the employee's applicable jurisdiction while still qualifying for equity classification. Prior to adoption, the Company was only able to withhold award shares with a fair value up to the minimum statutory tax rate. There was no cumulative effect adjustment as a result of the adoption of this amendment on a modified retrospective basis. |
• | The Company presents employee taxes paid by the Company through the withholding of award shares as a financing activity in the Consolidated Statements of Cash Flows. The effect of this retrospective change on the Company's Consolidated Statements of Cash Flows was not significant. |
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December 31, 2016 | December 31, 2015 | ||||||
(In thousands) | |||||||
Equity Method: | |||||||
Partner companies | $ | 154,219 | $ | 150,898 | |||
Private equity funds | 447 | 942 | |||||
154,666 | 151,840 | ||||||
Cost Method: | |||||||
Partner companies | 2,112 | 5,024 | |||||
Private equity funds | 1,550 | 1,966 | |||||
3,662 | 6,990 | ||||||
Advances to partner companies | 25,142 | 12,771 | |||||
$ | 183,470 | $ | 171,601 |
As of December 31, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Balance Sheets: | |||||||
Current assets | $ | 229,756 | $ | 213,884 | |||
Non-current assets | 106,555 | 89,987 | |||||
Total assets | $ | 336,311 | $ | 303,871 | |||
Current liabilities | $ | 215,622 | $ | 192,025 | |||
Non-current liabilities | 110,315 | 74,208 | |||||
Shareholders’ equity | 10,374 | 37,638 | |||||
Total liabilities and shareholders’ equity | $ | 336,311 | $ | 303,871 | |||
Number of partner companies | 5 | 6 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In thousands) | |||||||||||
Results of Operations: | |||||||||||
Revenue | $ | 272,216 | $ | 301,132 | $ | 249,157 | |||||
Gross profit | $ | 200,811 | $ | 208,883 | $ | 164,514 | |||||
Net loss | $ | (40,815 | ) | $ | (46,558 | ) | $ | (55,394 | ) |
As of December 31, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Balance Sheets: | |||||||
Current assets | $ | 66,204 | $ | 84,041 | |||
Non-current assets | 17,756 | 16,762 | |||||
Total assets | $ | 83,960 | $ | 100,803 | |||
Current liabilities | $ | 40,660 | $ | 40,268 | |||
Non-current liabilities | 14,851 | 27,449 | |||||
Shareholders’ equity | 28,449 | 33,086 | |||||
Total liabilities and shareholders’ equity | $ | 83,960 | $ | 100,803 | |||
Number of partner companies | 7 | 7 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In thousands) | |||||||||||
Results of Operations: | |||||||||||
Revenue | $ | 61,293 | $ | 53,002 | $ | 39,391 | |||||
Gross profit | $ | 34,682 | $ | 30,928 | $ | 26,158 | |||||
Net loss | $ | (52,111 | ) | $ | (34,064 | ) | $ | (30,012 | ) |
As of December 31, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Balance Sheets: | |||||||
Current assets | $ | 73,698 | $ | 59,738 | |||
Non-current assets | 4,915 | 2,705 | |||||
Total assets | $ | 78,613 | $ | 62,443 | |||
Current liabilities | $ | 29,431 | $ | 21,399 | |||
Non-current liabilities | 33,385 | 9,172 | |||||
Shareholders’ equity | 15,797 | 31,872 | |||||
Total liabilities and shareholders’ equity | $ | 78,613 | $ | 62,443 | |||
Number of partner companies | 17 | 15 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In thousands) | |||||||||||
Results of Operations: | |||||||||||
Revenue | $ | 31,172 | $ | 15,071 | $ | 9,661 | |||||
Gross profit | $ | 18,777 | $ | 10,234 | $ | 6,008 | |||||
Net loss | $ | (93,440 | ) | $ | (57,762 | ) | $ | (23,588 | ) |
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Carrying Value | Fair Value Measurement at December 31, 2016 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
(in thousands) | |||||||||||||||
Cash and cash equivalents | $ | 22,058 | $ | 22,058 | $ | — | $ | — | |||||||
Long-term restricted cash equivalents | 6,336 | 6,336 | — | — | |||||||||||
Marketable securities—held-to-maturity: | |||||||||||||||
Certificates of deposit | $ | 15,686 | $ | 15,686 | $ | — | $ | — | |||||||
Total marketable securities | $ | 15,686 | $ | 15,686 | $ | — | $ | — |
Carrying Value | Fair Value Measurement at December 31, 2015 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | |||||||||||||||
Cash and cash equivalents | $ | 32,838 | $ | 32,838 | $ | — | $ | — | |||||||
Marketable securities—held-to-maturity: | |||||||||||||||
Government agency bonds | $ | 1,329 | $ | 1,329 | $ | — | $ | — | |||||||
Certificates of deposit | 39,434 | 39,434 | — | — | |||||||||||
Total marketable securities | $ | 40,763 | $ | 40,763 | $ | — | $ | — |
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Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In thousands) | |||||||||||
General and administrative expense | $ | 2,394 | $ | 1,611 | $ | 1,935 | |||||
$ | 2,394 | $ | 1,611 | $ | 1,935 |
Year Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Service-Based Options | ||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | ||
Expected volatility | 25 | % | 26 | % | 32 | % | ||
Average expected option life | 5 years | 5 years | 5 years | |||||
Risk-free interest rate | 1.5 | % | 1.5 | % | 1.7 | % | ||
Year Ended December 31, | ||||||||
2014 | ||||||||
Performance-Based Options | ||||||||
Dividend yield | 0 | % | ||||||
Expected volatility | 32 | % | ||||||
Average expected option life | 4.8 years | |||||||
Risk-free interest rate | 1.7 | % |
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||
(In thousands) | (In years) | (In thousands) | ||||||||||
Outstanding at December 31, 2013 | 1,828 | $ | 12.51 | |||||||||
Options granted | 31 | 19.38 | ||||||||||
Options exercised | (365 | ) | 11.48 | |||||||||
Options canceled/forfeited | (178 | ) | 13.58 | |||||||||
Outstanding at December 31, 2014 | 1,316 | 12.81 | ||||||||||
Options granted | 31 | 17.26 | ||||||||||
Options exercised | (155 | ) | 13.12 | |||||||||
Options canceled/forfeited | (107 | ) | 13.06 | |||||||||
Outstanding at December 31, 2015 | 1,085 | 12.86 | ||||||||||
Options granted | 27 | 13.03 | ||||||||||
Options exercised | (170 | ) | 7.56 | |||||||||
Options canceled/forfeited | (264 | ) | 11.06 | |||||||||
Outstanding at December 31, 2016 | 678 | 14.90 | 4.37 | $ | 314 | |||||||
Options exercisable at December 31, 2016 | 279 | 15.37 | 3.01 | 122 | ||||||||
Options vested and expected to vest at December 31, 2016 | 678 | 14.90 | 4.37 | 314 | ||||||||
Shares available for future grant | 2,077 |
Shares | Weighted Average Grant Date Fair Value | |||||
(In thousands) | ||||||
Unvested at December 31, 2014 | 455 | $ | 17.09 | |||
Granted | 286 | 15.02 | ||||
Vested | (64 | ) | 17.42 | |||
Forfeited | (7 | ) | 18.76 | |||
Unvested at December 31, 2015 | 670 | 16.16 | ||||
Granted | 413 | 13.27 | ||||
Vested | (89 | ) | 16.46 | |||
Forfeited | (61 | ) | 17.08 | |||
Unvested at December 31, 2016 | 933 | 14.79 |
|
Year ended December 31, 2016: | |||
Loss on impairment of Penn Mezzanine debt and equity participations | $ | (2,360 | ) |
Gain on sale of Bridgevine | 424 | ||
Other | 254 | ||
$ | (1,682 | ) |
Year ended December 31, 2015: | |||
Gain on proceeds received from escrow related to sale of Crescendo | $ | 2,914 | |
Loss on impairment of Dabo Health | (2,356 | ) | |
Loss on impairment of legacy private equity fund | (398 | ) | |
Other | 57 | ||
$ | 217 |
Year ended December 31, 2014: | |||
Gain on sale of Crescendo Bioscience | $ | 27,365 | |
Gain on sale of NuPathe | 3,017 | ||
Gain on sale of Sotera Wireless | 1,453 | ||
Loss on sale of Penn Mezzanine equity participation | (255 | ) | |
Other | 77 | ||
$ | 31,657 |
|
Year Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Statutory tax (benefit) expense | (35.0 | )% | (35.0 | )% | (35.0 | )% | ||
Increase in taxes resulting from: | ||||||||
Stock-based compensation | 0.2 | 0.1 | 1.5 | |||||
Nondeductible expenses | 0.4 | 0.2 | 2.9 | |||||
Valuation allowance | 34.4 | 34.7 | 30.6 | |||||
0.0 | % | 0.0 | % | 0.0 | % |
As of December 31, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Deferred tax asset: | |||||||
Carrying values of partner companies and other holdings | $ | 95,134 | $ | 83,042 | |||
Tax loss and credit carryforwards | 82,775 | 84,493 | |||||
Accrued expenses | 1,183 | 1,391 | |||||
Stock-based compensation | 1,763 | 1,655 | |||||
Other | 1,310 | 1,369 | |||||
182,165 | 171,950 | ||||||
Valuation allowance | (182,165 | ) | (171,950 | ) | |||
Net deferred tax asset | $ | — | $ | — |
Total | |||
(In thousands) | |||
2017 | $ | — | |
2018 | — | ||
2019 | — | ||
2020 | — | ||
2021 and thereafter | 225,369 | ||
$ | 225,369 |
|
Safeguard Primary Ownership as of December 31, | ||||||||||
Partner Company | Revenue Stage | 2016 | 2015 | 2014 | Accounting Method | |||||
AdvantEdge Healthcare Solutions, Inc. | High Traction | 40.1% | 40.1% | 40.1% | Equity | |||||
Aktana, Inc. | Initial Revenue | 31.2% | NA | NA | Equity | |||||
Apprenda, Inc. | Expansion | 29.4% | 29.5% | 21.6% | Equity | |||||
Beyond.com, Inc. | High Traction | 38.2% | 38.2% | 38.2% | Equity | |||||
Brickwork | Initial Revenue | 20.3% | NA | NA | Equity | |||||
Cask Data, Inc. | Initial Revenue | 31.3% | 34.2% | NA | Equity | |||||
CloudMine, Inc. | Initial Revenue | 30.1% | 30.1% | NA | Equity | |||||
Clutch Holdings, Inc. | Expansion | 42.8% | 39.3% | 29.6% | Equity | |||||
Full Measure Education, Inc. | Initial Revenue | 35.2% | 25.4% | NA | Equity | |||||
Good Start Genetics, Inc. | High Traction | 29.6% | 29.6% | 29.9% | Equity | |||||
Hoopla Software, Inc. | Initial Revenue | 25.5% | 25.6% | 25.6% | Equity | |||||
InfoBionic, Inc. | Initial Revenue | 39.7% | 38.5% | 27.8% | Equity | |||||
Lumesis, Inc. | Initial Revenue | 44.1% | 44.7% | 45.7% | Equity | |||||
MediaMath, Inc. | High Traction | 20.5% | 20.6% | 20.7% | Equity | |||||
meQuilibrium | Initial Revenue | 31.5% | 31.5% | NA | Equity | |||||
Moxe Health Corporation | Initial Revenue | 32.4% | NA | NA | Equity | |||||
NovaSom, Inc. | High Traction | 31.7% | 31.7% | 31.7% | Equity | |||||
Pneuron Corporation | Initial Revenue | 35.4% | 35.4% | 27.6% | Equity | |||||
Prognos (formerly Medivo) | Expansion | 35.2% | 34.5% | 34.5% | Equity | |||||
Propeller Health, Inc. | Initial Revenue | 24.0% | 24.6% | 24.6% | Equity | |||||
QuanticMind, Inc. | Initial Revenue | 23.2% | 23.6% | NA | Equity | |||||
Sonobi, Inc. | Expansion | 21.6% | 22.6% | NA | Equity | |||||
Spongecell, Inc. | Expansion | 23.0% | 23.0% | 23.0% | Equity | |||||
Syapse, Inc. | Initial Revenue | 26.2% | 24.4% | 27.0% | Equity | |||||
T-REX Group, Inc. | Initial Revenue | 23.6% | NA | NA | Equity | |||||
Transactis, Inc. | Expansion | 24.2% | 24.5% | 24.8% | Equity | |||||
Trice Medical, Inc. | Initial Revenue | 27.6% | 27.7% | 31.9% | Equity | |||||
WebLinc, Inc. | Expansion | 38.0% | 29.2% | 29.2% | Equity | |||||
Zipnosis, Inc | Initial Revenue | 25.4% | 26.3% | NA | Equity |
|
Three Months Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2016: | |||||||||||||||
General and administrative expense | $ | 5,228 | $ | 4,849 | $ | 4,687 | $ | 3,928 | |||||||
Operating loss | (5,228 | ) | (4,849 | ) | (4,687 | ) | (3,928 | ) | |||||||
Other income (loss), net | — | 659 | (2,405 | ) | 64 | ||||||||||
Interest income | 420 | 527 | 513 | 615 | |||||||||||
Interest expense | (1,149 | ) | (1,155 | ) | (1,161 | ) | (1,169 | ) | |||||||
Equity income (loss) | (9,495 | ) | 43,794 | (16,345 | ) | (17,283 | ) | ||||||||
Net income (loss) before income taxes | (15,452 | ) | 38,976 | (24,085 | ) | (21,701 | ) | ||||||||
Income tax benefit (expense) | — | — | — | — | |||||||||||
Net income (loss) | $ | (15,452 | ) | $ | 38,976 | $ | (24,085 | ) | $ | (21,701 | ) | ||||
Net income (loss) per share (a) | |||||||||||||||
Basic | $ | (0.76 | ) | $ | 1.92 | $ | (1.18 | ) | $ | (1.07 | ) | ||||
Diluted | $ | (0.76 | ) | $ | 1.70 | $ | (1.18 | ) | $ | (1.07 | ) | ||||
2015: | |||||||||||||||
General and administrative expense | $ | 4,880 | $ | 4,754 | $ | 3,962 | $ | 3,958 | |||||||
Operating loss | (4,880 | ) | (4,754 | ) | (3,962 | ) | (3,958 | ) | |||||||
Other income (loss), net | (388 | ) | (15 | ) | 704 | (84 | ) | ||||||||
Interest income | 449 | 640 | 398 | 448 | |||||||||||
Interest expense | (1,122 | ) | (1,128 | ) | (1,133 | ) | (1,140 | ) | |||||||
Equity loss | (8,662 | ) | (13,765 | ) | (7,635 | ) | (9,537 | ) | |||||||
Net loss before income taxes | (14,603 | ) | (19,022 | ) | (11,628 | ) | (14,271 | ) | |||||||
Income tax benefit (expense) | — | — | — | — | |||||||||||
Net loss | $ | (14,603 | ) | $ | (19,022 | ) | $ | (11,628 | ) | $ | (14,271 | ) | |||
Net loss per share (a) | |||||||||||||||
Basic | $ | (0.70 | ) | $ | (0.91 | ) | $ | (0.56 | ) | $ | (0.69 | ) | |||
Diluted | $ | (0.70 | ) | $ | (0.91 | ) | $ | (0.56 | ) | $ | (0.69 | ) |
(a) | Per share amounts for the quarters have each been calculated separately. Accordingly, quarterly amounts may not add to the annual amounts because of differences in the average common shares outstanding during each period. Additionally, in regard to diluted per share amounts only, quarterly amounts may not add to the annual amounts because of the inclusion of the effect of potentially dilutive securities only in the periods in which such effect would have been dilutive, and because of the adjustments to net income (loss) for the dilutive effect of partner company common stock equivalents and convertible securities. |
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