v2.4.0.6
|
LONG-TERM DEBT
|
12 Months Ended |
|
|
| Debt Disclosure [Abstract] |
|
| LONG-TERM DEBT |
NOTE 12 - LONG-TERM DEBT
On December 31, 2012, long-term debt consisted of a loan payable to TPC valued at $1.7 million and the related short term interest payable of $1.1 million.
On December 12, 2003, Tm Bioscience entered into an agreement with the Ministry of Industry of the government of Canada under which the Government agreed to invest up to $7.3 million (Cdn) relating to the development of several genetic tests. This agreement was amended in March 2009. Funds were advanced from TPC, a special operating program. The actual payments received by the Company were predicated on eligible expenditures made during the amended project period which ended July 31, 2008. As of December 31, 2012, the Company had received $4.9 million from TPC ($4.9 million (Cdn)) which is expected to be repaid along with approximately $1.6 million of imputed interest for a total of approximately $6.5 million ($6.5 million (Cdn)). Approximately $3.6 million ($3.6 million (Cdn)) of the interest and advances has been repaid as of December 31, 2012.
Tm Bioscience agreed to repay the TPC funding through a royalty on revenues. This liability was assumed by the Company as part of the acquisition and the liability was recorded at fair value as of the date of acquisition. This liability is subject to adjustments for foreign currency translation effects as it is a foreign currency denominated balance. Royalty payments commenced in 2007 at a rate of 1% of total LMD revenue and at a rate of 2.5% for 2008 and thereafter. Aggregate royalty repayment will continue until total advances plus imputed interest has been repaid or until December 31, 2016, whichever is earlier. The repayment obligation expires on December 31, 2016 and any unpaid balance will be cancelled and forgiven on that date. Should the term of repayment be shorter than expected due to higher than expected assay revenue, the effective interest rate would increase as repayment is accelerated. Repayments denominated in U.S. Dollars are currently projected to be as shown in the table below, but actual future sales generating a repayment obligation will vary from this projection and are subject to the risks and uncertainties described elsewhere in this report, including under “Risk Factors” and “Safe Harbor Cautionary Statement.” Furthermore, payments reflected in U.S. Dollars are subject to adjustment based upon applicable exchange rates as of the reporting date.
Estimated repayments on the debt for the next five years and thereafter are as follows (in thousands):
| | | | | 2013 | $ | 1,138 |
| 2014 | 1,270 |
| 2015 | 517 |
| 2016 | — |
| 2017 | — |
| Thereafter | — |
| | $ | 2,925 |
| Less: Amount representing implied interest | (56 | ) | Total principal repayments | $ | 2,869 |
| Discount | (29 | ) | Total long-term debt | $ | 2,840 |
| Less: Current portion of long-term debt | (1,138 | ) | | $ | 1,702 |
|
In 2012 and 2011, the Company had imputed interest expense related to its long-term debt of $89,000 and $125,000, respectively, recorded in the ARP segment. The effective interest rate was 3.90% and 3.96% as of December 31, 2012 and 2011, respectively. At December 31, 2012 and 2011, the fair value of the Company’s long-term debt was approximately $2.5 million and $3.2 million, respectively. The Company’s long-term debt is classified as a Level 3 instrument and the Company has used a discounted cash flow (DCF) model to determine the estimated fair value as of December 31, 2012 and 2011. The assumptions used in preparing the DCF model include estimates for (i) the amount and timing of future interest and principal payments and (ii) the rate of return indicative of the investment risk in the ownership of the TPC debt. In making these assumptions, the Company considered relevant factors including the likely timing of principal repayments and the probability of full repayment considering the timing of royalty payments based upon total revenue. |
| X |
- Details
| Name: |
us-gaap_DebtDisclosureAbstract |
| Namespace Prefix: |
us-gaap_ |
| Data Type: |
xbrli:stringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- Definition
The entire disclosure for long-term debt.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5
+ Details
| Name: |
us-gaap_LongTermDebtTextBlock |
| Namespace Prefix: |
us-gaap_ |
| Data Type: |
nonnum:textBlockItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
|
