0001564590-20-051270 | 10-Q | XBRL Viewer

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Nov. 03, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Trading Symbol	TTOO
Entity Registrant Name	T2 Biosystems, Inc.
Entity Central Index Key	0001492674
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-36571
Entity Tax Identification Number	20-4827488
Entity Address, Address Line One	101 Hartwell Avenue
Entity Address, City or Town	Lexington
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02421
City Area Code	781
Local Phone Number	761-4646
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, par value $0.001
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		147,955,531

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 19,059	$ 11,033
Marketable securities	21,990
Accounts receivable	3,860	2,825
Inventories	3,569	3,599
Prepaid expenses and other current assets	2,969	1,438
Total current assets	51,447	18,895
Property and equipment, net	3,585	5,845
Operating lease right-of-use assets	1,729	3,360
Restricted cash	551	180
Marketable securities	20,186
Other assets	133	206
Total assets	77,631	28,486
Current liabilities:
Notes payable		42,902
Accounts payable	2,407	3,753
Accrued expenses and other current liabilities	7,654	11,207
Derivative liability		2,425
Deferred revenue	290	285
Total current liabilities	10,351	60,572
Notes payable, net of current portion	44,612
Operating lease liabilities, net of current portion	479	1,873
Deferred revenue, net of current portion	300	46
Derivative liability	1,235
Other liabilities	3,080
Commitments and contingencies (see Note 13)
Stockholders’ equity (deficit):
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding at September 30, 2020 and December 31, 2019
Common stock, $0.001 par value; 200,000,000 shares authorized; 147,954,385 and 50,651,535 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively	147	51
Additional paid-in capital	430,529	342,121
Accumulated other comprehensive loss	(36)
Accumulated deficit	(413,066)	(376,177)
Total stockholders’ equity (deficit)	17,574	(34,005)
Total liabilities and stockholders’ equity (deficit)	$ 77,631	$ 28,486

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	147,954,385	50,651,535
Common stock, shares outstanding	147,954,385	50,651,535

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue:
Total revenue	$ 5,245	$ 1,677	$ 10,342	$ 5,266
Costs and expenses:
Research and development	3,965	4,098	12,883	12,047
Selling, general and administrative	5,083	5,981	16,691	19,756
Total costs and expenses	15,881	14,023	43,378	44,956
Loss from operations	(10,636)	(12,346)	(33,036)	(39,690)
Interest expense, net	(646)	(1,876)	(3,906)	(5,658)
Other income, net	27	51	53	383
Net loss	$ (11,255)	$ (14,171)	$ (36,889)	$ (44,965)
Net loss per share — basic and diluted	$ (0.08)	$ (0.31)	$ (0.33)	$ (1.01)
Weighted-average number of common shares used in computing net loss per share — basic and diluted	147,793,891	45,413,215	112,371,006	44,711,463
Other comprehensive loss:
Net loss	$ (11,255)	$ (14,171)	$ (36,889)	$ (44,965)
Net unrealized gain (loss) on marketable securities	(36)		(36)
Comprehensive loss	(11,291)	(14,171)	(36,925)	(44,965)
Product [Member]
Revenue:
Total revenue	3,757	1,177	5,843	3,765
Costs and expenses:
Cost of product revenue	6,833	3,944	13,804	13,153
Research [Member]
Revenue:
Total revenue		56	11	269
Contribution [Member]
Revenue:
Total revenue	$ 1,488	$ 444	$ 4,488	$ 1,232

Condensed Consolidated Statements Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Common Stock [Member]	Common Stock [Member] Purchase Agreement [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Dec. 31, 2018	$ 11,387	$ 44		$ 328,514	$ (317,171)
Balance (in shares) at Dec. 31, 2018		44,175,441
Stock-based compensation expense	2,033			2,033
Issuance of common stock from vesting of restricted stock, exercise of stock options and employee stock purchase plan (in shares)		163,802
Change in fair value of warrants upon modification	147			147
Net loss	(15,147)				(15,147)
Balance at Mar. 31, 2019	(1,580)	$ 44		330,694	(332,318)
Balance (in shares) at Mar. 31, 2019		44,339,243
Balance at Dec. 31, 2018	11,387	$ 44		328,514	(317,171)
Balance (in shares) at Dec. 31, 2018		44,175,441
Net loss	(44,965)
Balance at Sep. 30, 2019	(25,912)	$ 45		336,179	(362,136)
Balance (in shares) at Sep. 30, 2019		46,678,746
Balance at Mar. 31, 2019	(1,580)	$ 44		330,694	(332,318)
Balance (in shares) at Mar. 31, 2019		44,339,243
Stock-based compensation expense	1,277			1,277
Issuance of common stock from vesting of restricted stock, exercise of stock options and employee stock purchase plan	330			330
Issuance of common stock from vesting of restricted stock, exercise of stock options and employee stock purchase plan (in shares)		196,329
Net loss	(15,647)				(15,647)
Balance at Jun. 30, 2019	(15,620)	$ 44		332,301	(347,965)
Balance (in shares) at Jun. 30, 2019		44,535,572
Stock-based compensation expense	1,165			1,165
Issuance of common stock from vesting of restricted stock, exercise of stock options and employee stock purchase plan	53			53
Issuance of common stock from vesting of restricted stock, exercise of stock options and employee stock purchase plan (in shares)		50,438
Issuance of common stock	1,884	$ 1		1,883
Issuance of common stock (in shares)		1,679,387	413,349
Change in fair value of warrants upon modification	117			117
Issuance of warrants	660			660
Net loss	(14,171)				(14,171)
Balance at Sep. 30, 2019	(25,912)	$ 45		336,179	(362,136)
Balance (in shares) at Sep. 30, 2019		46,678,746
Balance at Dec. 31, 2019	$ (34,005)	$ 51		342,121	(376,177)
Balance (in shares) at Dec. 31, 2019	50,651,535	50,651,535
Stock-based compensation expense	$ 1,160			1,160
Issuance of common stock from vesting of restricted stock, exercise of stock options and employee stock purchase plan (in shares)		370,417
Issuance of common stock	40,097	$ 68		40,029
Issuance of common stock (in shares)		68,150,678
Net loss	(14,949)				(14,949)
Balance at Mar. 31, 2020	(7,697)	$ 119		383,310	(391,126)
Balance (in shares) at Mar. 31, 2020		119,172,630
Balance at Dec. 31, 2019	$ (34,005)	$ 51		342,121	(376,177)
Balance (in shares) at Dec. 31, 2019	50,651,535	50,651,535
Unrealized loss on marketable securities	$ (36)
Net loss	(36,889)
Balance at Sep. 30, 2020	$ 17,574	$ 147		430,529	(413,066)	$ (36)
Balance (in shares) at Sep. 30, 2020	147,954,385	147,954,385
Balance at Mar. 31, 2020	$ (7,697)	$ 119		383,310	(391,126)
Balance (in shares) at Mar. 31, 2020		119,172,630
Stock-based compensation expense	994			994
Issuance of common stock from vesting of restricted stock, exercise of stock options and employee stock purchase plan	180			180
Issuance of common stock from vesting of restricted stock, exercise of stock options and employee stock purchase plan (in shares)		407,183
Issuance of common stock	12,820	$ 9		12,811
Issuance of common stock (in shares)		8,881,466
Net loss	(10,685)				(10,685)
Balance at Jun. 30, 2020	(4,388)	$ 128		397,295	(401,811)
Balance (in shares) at Jun. 30, 2020		128,461,279
Stock-based compensation expense	855			855
Issuance of common stock from exercise of stock options	4			4
Issuance of common stock from exercise of stock options (in shares)		5,083
Issuance of common stock	32,394	$ 19		32,375
Issuance of common stock (in shares)		19,488,023
Unrealized loss on marketable securities	(36)					(36)
Net loss	(11,255)				(11,255)
Balance at Sep. 30, 2020	$ 17,574	$ 147		$ 430,529	$ (413,066)	$ (36)
Balance (in shares) at Sep. 30, 2020	147,954,385	147,954,385

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities
Net loss	$ (36,889)	$ (44,965)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,323	1,694
Amortization of operating lease right-of-use assets	1,149	1,065
Stock-based compensation expense	3,009	4,475
Change in fair value of derivative instrument	(1,190)	461
Gain on disposal of property and equipment	(2)	(3)
Impairment of operating lease asset	523
Impairment of property and equipment	636
Non-cash interest expense	2,345	1,763
Changes in operating assets and liabilities:
Accounts receivable	(1,035)	213
Prepaid expenses and other assets	(1,458)	(577)
Inventories	723	(1,464)
Accounts payable	(1,281)	2,683
Accrued expenses and other liabilities	(1,099)	1,250
Deferred revenue	259	(143)
Operating lease liabilities	(1,478)	(1,694)
Net cash used in operating activities	(34,465)	(35,242)
Cash flows from investing activities
Purchases of marketable securities	(50,462)
Proceeds from maturities of marketable securities	8,250
Proceeds from sale of property and equipment	4
Purchases and manufacture of property and equipment	(425)	(735)
Net cash used in investing activities	(42,633)	(735)
Cash flows from financing activities
Proceeds from issuance of shares from employee stock purchase plan and stock option exercises, net	184	383
Proceeds from issuance of common stock in public offering, net of offering costs	85,311	1,884
Principal repayments of finance leases		(882)
Net cash provided by financing activities	85,495	1,385
Net increase (decrease) in cash, cash equivalents and restricted cash	8,397	(34,592)
Cash, cash equivalents and restricted cash at beginning of period	11,213	50,985
Cash, cash equivalents and restricted cash at end of period	19,610	16,393
Supplemental disclosures of cash flow information
Cash paid for interest	1,820	3,435
Supplemental disclosures of noncash activities
Transfer of T2 owned instruments and components to (from) inventory	693	31
Change in fair value of warrants issued and modified		924
Right-of-use assets obtained in exchange for new operating lease liabilities		4,805
Purchases of property and equipment included in accounts payable and accrued expenses	$ 61	$ 43

Condensed Consolidated Statement of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Reconciliation of cash, cash equivalents and restricted cash at end of period
Cash and cash equivalents	$ 19,059	$ 11,033
Restricted cash	551	180
Total cash, cash equivalents and restricted cash	$ 19,610	$ 11,213	$ 16,393	$ 50,985

Nature of Business

9 Months Ended

Sep. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Nature of Business

1. Nature of Business

T2 Biosystems, Inc. (the “Company”) was incorporated on April 27, 2006 as a Delaware corporation with operations based in Lexington, Massachusetts. The Company is an in vitro diagnostics company that has developed an innovative and proprietary technology platform that offers a rapid, sensitive and simple alternative to existing diagnostic methodologies. The Company is using its T2 Magnetic Resonance technology (“T2MR”) to develop a broad set of applications aimed at lowering mortality rates, improving patient outcomes and reducing the cost of healthcare by helping medical professionals make targeted treatment decisions earlier. T2MR enables rapid detection of pathogens, biomarkers and other abnormalities in a variety of unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum, cerebral spinal fluid and urine, and can detect cellular targets at limits of detection as low as one colony forming unit per milliliter (“CFU/mL”). The Company’s initial development efforts target sepsis and Lyme disease, which are areas of significant unmet medical need in which existing therapies could be more effective with improved diagnostics. On September 22, 2014, the Company received market clearance from the U.S. Food and Drug Administration (“FDA”) for its first two products, the T2Dx^® Instrument (the “T2Dx”) and T2Candida^® Panel (“T2Candida”). On May 24, 2018, the Company received market clearance from the FDA for its T2Bacteria^® Panel (“T2Bacteria”). On February 6, 2019, the FDA granted the Company’s T2Resistance^TM Panel (“T2Resistance”) designation as a Breakthrough Device. On August 2, 2019, the Center for Medicare & Medicaid Services (CMS) granted approval for a New Technology Add-on Payment (NTAP) for the T2Bacteria Panel for fiscal year 2020 and in September 2020, CMS extended the approval for 2021. On November 20, 2019, the Company’s T2Resistance Panel was granted a CE-Mark. On June 30, 2020, the Company announced the U.S. launch of its COVID-19 molecular diagnostic test, the T2SARS-CoV-2 Panel, after validation of the test meeting the FDA’s requirements for an Emergency Use Authorization (EUA). In August 2020, the FDA issued EUA for the Company’s T2SARS-CoV-2 Panel. The test is designed to detect the presence of the SARS-CoV-2 virus in a nasopharyngeal swab sample.

Liquidity and Going Concern

At September 30, 2020, the Company had cash and cash equivalents of $19.1 million, marketable securities of $42.2 million, an accumulated deficit of $413.1 million, a stockholders’ equity of $17.6 million, and has experienced cash outflows from operating activities over the past years. The future success of the Company is dependent on its ability to successfully commercialize its products, obtain regulatory clearance for and successfully launch its future product candidates, obtain additional capital and ultimately attain profitable operations. Historically, the Company has funded its operations primarily through its August 2014 initial public offering, its December 2015 public offering, its September 2016 private investment in public equity (“PIPE”) financing, its September 2017 public offering, its June 2018 public offering, its July 2019 establishment of an Equity Distribution Agreement and Equity Purchase Agreement, private placements of redeemable convertible preferred stock and through debt financing arrangements.

The Company is subject to a number of risks similar to other early commercial stage life science companies, including, but not limited to commercially launching the Company’s products, development and market acceptance of the Company’s product candidates, development by its competitors of new technological innovations, protection of proprietary technology, and raising additional capital.

The COVID-19 pandemic has impacted and may continue to impact operations. The Company has established protocols for continued manufacturing, distribution and servicing of its products with safe social distancing and personal protective equipment measures and for remote work for certain employees not essential to on-site operations. To date these measures have been successful but may not continue to function should the pandemic escalate and impact personnel. The Company’s hospital customers have restricted the sales team’s access to their facilities and as a result, the Company significantly reduced its sales and general and administrative staffing levels to reduce expenses. The Company’s customers may reduce their purchases of products. Customers may cease to comply with the terms of sales agreements and this may impact the ability to recognize revenue and hinder receivables collections. The Company has a significant development contract with a United States government agency and should the agency reduce, cancel or not grant additional milestone projects, the Company’s ability to continue its future product development may be impacted. The ability of the Company’s shipping carriers to deliver products to customers may be disrupted. The Company has reviewed its suppliers and quantities of key materials and believes that it has sufficient stocks and alternate sources of critical materials including personal protective equipment should the supply chains become disrupted, although raw materials for the manufacturing of reagents is in high demand, and interruptions in supply are difficult to predict. As further described in Note 5, the Company believes the pandemic’s impact on its sales has impacted the recoverability of the value of T2-owned instruments and components. The COVID-19 pandemic also caused the Company to reassess its build plan and evaluate its inventories accordingly, which resulted in an additional charge to cost of product revenue.

Having obtained authorization from the FDA to market the T2Dx, T2Candida, and T2Bacteria, the Company has incurred significant commercialization expenses related to product sales, marketing, manufacturing and distribution. The Company may seek to fund its operations through public equity, private equity or debt financings, as well as other sources. However, the Company may be unable to raise additional funds or enter into such other arrangements when needed, on favorable terms, or at all. The Company’s failure to raise capital or enter into such other arrangements if and when needed would have a negative impact on the Company’s business, results of operations, financial condition and the Company’s ability to develop and commercialize T2Dx, T2Candida, T2Bacteria and other product candidates.

Pursuant to the requirements of Accounting Standards Codification (“ASC”) 205-40, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. This evaluation initially does not take into consideration the potential mitigating effect of management’s plans that have not been fully implemented as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued.

Management believes that its existing cash and cash equivalents and marketable securities at September 30, 2020 will be sufficient to allow the Company to fund its current operating plan, at least a year from issuance of these financial statements. Certain elements of the Company’s operating plan are outside of the Company’s control, those elements cannot be considered probable; under ASC 205-40, the future receipt of potential funding from the Company’s Co-Development partners and other resources cannot be considered probable at this time because none of the plans are entirely within the Company’s control. During the three months ended March 31, 2020, management implemented a cost improvement strategy which is focused on reducing operating expenses and improving cost of goods sold. The Company reduced its total employee headcount by 22% as compared to headcount at December 31, 2019, resulting in severance of $0.4 million, all of which was paid by September 30, 2020. The Term Loan Agreement with CRG Servicing LLC (“CRG”) (Note 6) has certain covenants which require the Company to achieve certain annual revenue targets, whereby the Company is required to pay double the amount of any shortfall as an acceleration of principal payments, and maintain a minimum cash balance of $5.0 million. As of the date of these financial statements, it is probable that the Company will achieve the revenue target of $15.0 million for the twenty-four month period ended December 31, 2020, however there are no assurances that the Company will achieve the revenue target of $43.0 million for the twenty-four month period ended December 31, 2021. Should the Company fail to meet the revenue target, it would seek a waiver of this provision. There can be no assurances that the Company would be successful in obtaining a waiver. If the Company is unsuccessful in obtaining a waiver, it would pay the cure amount set forth under the Term Loan Agreement. While the Company believes it can continue as a going concern for at least a year from issuance of these financial statements, there can be no assurances the Company will continue to be in compliance with the cash covenant in future periods without additional funding.

On April 7, 2020, the Company received a letter from The Nasdaq Stock Market LLC (“Nasdaq”) indicating that, for the last thirty consecutive business days, the bid price for the Company’s common stock had closed below the minimum $1.00 per share requirement for continued listing on the Nasdaq Global Market under Nasdaq Listing Rule 5450(a)(1). On June 16, 2020, the Company received a letter from the Nasdaq stating that the Company had regained compliance.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The Company’s financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States GAAP as defined in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). The Company’s condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, T2 Biosystems Securities Corporation. All intercompany balances and transactions have been eliminated.

Unaudited Interim Financial Information

Certain information and footnote disclosures normally included in the Company’s annual financial statements have been condensed or omitted. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

The accompanying interim condensed consolidated balance sheet as of September 30, 2020, the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2020 and 2019, the condensed consolidated statements of stockholders’ equity (deficit) for the three and nine months ended September 30, 2020 and 2019, the condensed consolidated statements of cash flows for the nine months ended September 30, 2020 and 2019 and the related financial data and other information disclosed in these notes are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements, and, in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of September 30, 2020, and the results of its operations for the three and nine months ended September 30, 2020 and 2019 and its cash flows for the nine months ended September 30, 2020 and 2019. The results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020, any other interim periods, or any future year or period.

Segment Information

Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the Chief Executive Officer. The Company views its operations and manages its business in one operating segment, which is the business of developing and, upon regulatory clearance, commercializing its diagnostic products aimed at lowering mortality rates, improving patient outcomes and reducing the cost of healthcare by helping medical professionals make targeted treatment decisions earlier.

Geographic Information

The Company sells its products domestically and internationally. Total international sales were approximately $0.6 million or 12% of total revenue and $0.6 million or 36% of total revenue for the three months ended September 30, 2020 and 2019, respectively. Total international sales were approximately $1.4 million or 13% of total revenue and $1.8 million and 34% of total revenue for the nine months ended September 30, 2020 and 2019, respectively.

For the three and nine months ended September 30, 2020, there was no international customer that represented greater than 10% of total revenue. For the three and nine months ended September 30, 2019, there were no international customers that represented greater than 10% of its total revenue.

As of September 30, 2020 and December 31, 2019, the Company had outstanding receivables of $0.5 million and $1.2 million, respectively, from customers located outside of the U.S.

Net Loss Per Share

Basic net loss per share is calculated by dividing net loss by the weighted-average number of shares of common stock outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is calculated by adjusting the weighted-average number of shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method. For purposes of the diluted net loss per share calculation, stock options and unvested restricted stock and restricted stock contingently issuable upon achievement of certain market conditions are considered to be common stock equivalents, but have been excluded from the calculation of diluted net loss per share, as their effect would be anti-

dilutive for all periods presented. Therefore, basic and diluted net loss per share applicable to common stockholders was the same for all periods presented.

Marketable Securities

The Company’s marketable securities typically consist of certificates of deposit and U.S. treasury securities, which are classified as available-for-sale and included in current and non-current assets. Available-for-sale securities are carried at fair value with unrealized gains and losses reported as a component of shareholders’ deficit in accumulated other comprehensive income (loss). Realized gains and losses, if any, are included in other income in the condensed consolidated statements of operations.

Available-for-sale securities are reviewed for possible impairment at least quarterly, or more frequently if circumstances arise that may indicate impairment. When the fair value of the securities declines below the amortized cost basis, impairment is indicated and it must be determined whether it is other than temporary. Impairment is considered to be other than temporary if the Company: (i) intends to sell the security, (ii) will more likely than not be forced to sell the security before recovering its cost, or (iii) does not expect to recover the security’s amortized cost basis. If the decline in fair value is considered other than temporary, the cost basis of the security is adjusted to its fair market value and the realized loss is reported in earnings. Subsequent increases or decreases in fair value are reported as a component of shareholders’ deficit in accumulated other comprehensive income (loss). There were no other-than-temporary unrealized losses as of September 30, 2020.

The following table summarizes the Company’s marketable securities at September 30, 2020 (in thousands):

	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Certificates of deposit	$	1,500	$	1	$	—		$	1,501
U.S. treasury securities		40,712		—		(37	)		40,675
Total	$	42,212	$	1	$	(37	)	$	42,176

The following table summarizes the maturities of the Company’s marketable securities at September 30, 2020 (in thousands):

	September 30, 2020
	Amortized Cost		Fair Value
Due in less than 1 year	$	21,983	$	21,990
Due in 1-2 years		20,229		20,186
Total	$	42,212	$	42,176

Guarantees

As permitted under Delaware law, the Company indemnifies its officers and directors for certain events or occurrences while each such officer or director is, or was, serving at the Company’s request in such capacity. The term of the indemnification is the officer’s or director’s lifetime. The maximum potential amount of future payments the Company could be required to make is unlimited; however, the Company has directors’ and officers’ liability insurance coverage that limits its exposure and enables the Company to recover a portion of any future amounts paid.

The Company leases office, laboratory and manufacturing space under noncancelable operating leases. The Company has standard indemnification arrangements under the leases that require it to indemnify the landlords against all costs, expenses, fines, suits, claims, demands, liabilities, and actions directly resulting from any breach, violation or nonperformance of any covenant or condition of the Company’s leases.

In the ordinary course of business, the Company enters into indemnification agreements with certain suppliers and business partners where the Company has certain indemnification obligations limited to the costs, expenses, fines, suits, claims, demands, liabilities and actions directly resulting from the Company’s gross negligence or willful misconduct, and in certain instances, breaches, violations or nonperformance of covenants or conditions under the agreements.

As of September 30, 2020 and December 31, 2019, the Company had not experienced any material losses related to these indemnification obligations, and no material claims with respect thereto were outstanding. The Company does not expect significant claims related to these indemnification obligations and, consequently, concluded that the fair value of these obligations is negligible, and no related reserves were established.

Leases

Pursuant to Topic 842, Leases (“ASC 842”), at the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets, lease liabilities and long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. The exercise of lease renewal options is at our discretion and the renewal to extend the lease terms are not included in the Company’s right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company will evaluate the renewal options and when they are reasonably certain of exercise, the Company will include the renewal period in its lease term. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. However, certain adjustments to the right-of-use asset may be required for items such as prepaid or accrued lease payments. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Then the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components.

The Company made the policy election to not separate lease and non-lease components. Each lease component and the related non-lease components are accounted for together as a single component.

Revenue Recognition

The Company generates revenue from the sale of instruments, consumable diagnostic tests, related services, reagent rental agreements and research and development agreements with third parties. Pursuant to ASC 606, Revenue from Contracts with Customers (“ASC 606”), revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration the Company expects to be entitled to receive in exchange for these goods and services.

Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company's performance obligations are transferred to customers at a point in time, typically upon shipment, or over time, as services are performed.


Most of the Company’s contracts with distributors in geographic regions outside the United States contain only a single performance obligation; whereas, most of the Company’s contracts with direct sales customers in the United States contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Excluded from the transaction price are sales tax and other similar taxes which are presented on a net basis.

Product revenue is generated by the sale of instruments and consumable diagnostic tests predominantly through the Company’s direct sales force in the United States and distributors in geographic regions outside the United States. The Company does not offer product return or exchange rights (other than those relating to defective goods under warranty) or price protection allowances to its customers, including its distributors. Payment terms granted to distributors are the same as those granted to end-user customers and payments are not dependent upon the distributors’ receipt of payment from their end-user customers. The Company either sells instruments to customers and international distributors, or retains title and places the instrument at the customer site pursuant to a reagent rental agreement. When an instrument is purchased by a customer, the Company recognizes revenue when the related performance obligation is satisfied (i.e. when the control of an instrument has passed to the customer; typically, at shipping point). When the instrument is placed under a reagent rental agreement, the Company’s customers generally agree to fixed term agreements, which can be extended, and incremental charges on each consumable diagnostic test purchased. Revenue from the sale of consumable diagnostic tests (under a reagent rental agreement) is recognized upon shipment. The transaction price from consumables purchases is allocated between the lease of the instrument (under a contingent rent methodology as provided for in ASC 842, Leases), and the consumables when related performance obligations are satisfied, as a component of lease and product revenue, and is included as Instrument Rentals in the below table. Revenue associated with reagent rental consumables purchases is currently classified as variable consideration and constrained until a purchase order is received and related performance obligations have been satisfied. Revenue from the sale of consumable diagnostic tests (under instrument purchase agreements) is recognized upon shipment. Shipping and handling costs billed to customers in connection with a product sale are recorded as a component of the transaction price and

allocated to product revenue in the condensed consolidated statements of operations and comprehensive loss as they are incurred by the Company in fulfilling its performance obligations.

Direct sales of instruments include warranty, maintenance and technical support services typically for one year following the installation of the purchased instrument (“Maintenance Services”). Maintenance Services are separate performance obligations as they are service based warranties and are recognized on a straight-line basis over the service delivery period. After the completion of the initial Maintenance Services period, customers have the option to renew or extend the Maintenance Services typically for additional one-year periods in exchange for additional consideration. The extended Maintenance Services are also service based warranties that represent separate purchasing decisions. The Company recognizes revenue allocated to the extended Maintenance Services performance obligation on a straight-line basis over the service delivery period.

Fees paid to member-owned group purchasing organizations (“GPOs”) are deducted from related product revenues.

The Company warrants that consumable diagnostic tests will be free from defects, when handled according to product specifications, for the stated life of the product. To fulfill valid warranty claims, the Company provides replacement product free of charge. Accordingly, the Company accrues warranty expense associated with the estimated defect rates of the consumable diagnostic tests.

Revenue earned from activities performed pursuant to research and development agreements is reported as research revenue in the condensed consolidated statements of operations and comprehensive loss, and is recognized over time using an input method as the work is completed. The related costs are expensed as incurred as research and development expense. The timing of receipt of cash from the Company’s research and development agreements generally differs from when revenue is recognized. Milestones are contingent on the occurrence of future events and are considered variable consideration being constrained until the Company believes a significant revenue reversal will not occur. Refer to Note 11 for further details regarding the Company’s research and development arrangements.

Grants received, including cost reimbursement agreements, are assessed to determine if the agreement should be accounted for as an exchange transaction or a contribution. An agreement is accounted for as a contribution if the resource provider does not receive commensurate value in return for the assets transferred. Contribution revenue is recognized when all donor-imposed conditions have been met.

Our customers may cease to comply with the terms of our sales agreements and this may impact our ability to recognize revenue and hinder receivables collections. We have a significant development contract with a United States government agency and should the agency reduce, cancel or not grant additional milestone projects our ability to continue our future product development may be impacted.

Disaggregation of Revenue

The Company disaggregates revenue from contracts with customers by type of products and services, as it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The following table disaggregates our revenue by major source (in thousands):

	Three Months Ended, September 30,				Nine Months Ended, September 30,
	2020		2019		2020		2019
Product Revenue
Instruments	$	1,402	$	543	$	1,819	$	1,540
Consumables		2,332		604		3,930		2,054
Instrument rentals		23		30		94		171
Total Product Revenue		3,757		1,177		5,843		3,765
Research Revenue		—		56		11		269
Contribution Revenue		1,488		444		4,488		1,232
Total Revenue	$	5,245	$	1,677	$	10,342	$	5,266

Remaining Performance Obligations

Remaining performance obligations represent the transaction price of firm orders for which work has not been performed or goods and services have not been delivered. As of September 30, 2020, the aggregate amount of transaction price allocated to remaining performance obligations for contracts with an original duration greater than one year was $0.4 million. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts

for which we recognize revenue at the amount to which we have the right to invoice for services performed. The Company expects to recognize revenue on the remaining performance obligations over the next 23 months.

Significant Judgments

Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Once we determine the performance obligations, the Company determines the transaction price, which includes estimating the amount of variable consideration, based on the most likely amount, to be included in the transaction price, if any. We then allocate the transaction price to each performance obligation in the contract based on a relative stand-alone selling price method. The corresponding revenue is recognized as the related performance obligations are satisfied as discussed in the revenue categories above.

Judgment is required to determine the standalone selling price for each distinct performance obligation. We determine standalone selling price based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price taking into account available information such as market conditions and the expected costs and margin related to the performance obligations.

Contract Assets and Liabilities

The Company did not record any contract assets at September 30, 2020 and December 31, 2019.

The Company’s contract liabilities consist of upfront payments for research and development contracts and Maintenance Services on instrument sales. We classify these contract liabilities in deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. Contract liabilities were $0.6 million and $0.2 million at September 30, 2020 and December 31, 2019, respectively. Revenue recognized during the three months ended September 30, 2020 relating to contract liabilities at December 31, 2019 was immaterial. Revenue recognized during the nine months ended September 30, 2020 relating to contract liabilities at December 31, 2019 was $0.2 million and related to straight-line revenue recognition associated with maintenance agreements.

Cost to Obtain and Fulfill a Contract

The Company does not meet the recoverability criteria to capitalize costs to obtain or fulfill instrument purchases. Reagent rental agreements do not meet the recoverability criteria to capitalize costs to obtain the contracts and the costs to fulfill the contracts are under the scope of ASC 842. At the end of each reporting period, the Company assesses whether any circumstances have changed to meet the criteria for capitalization. The Company did not incur any expenses to obtain research and development agreements and costs to fulfill those contracts do not generate or enhance resources of the entity. As such, no costs to obtain or fulfill contracts were capitalized.

Cost of Product Revenue

Cost of product revenue includes the cost of materials, direct labor and manufacturing overhead costs used in the manufacture of consumable diagnostic tests sold to customers and related license and royalty fees. Cost of product revenue also includes depreciation on revenue generating T2Dx instruments that have been placed with customers under reagent rental agreements; costs of materials, direct labor and manufacturing overhead costs on the T2Dx instruments sold to customers; and other costs such as customer support costs, royalties and license fees, warranty and repair and maintenance expense on the T2Dx instruments that have been placed with customers under reagent rental agreements.

Research and Development Costs

Costs incurred in the research and development of the Company’s product candidates are expensed as incurred. Research and development expenses consist of costs incurred in performing research and development activities, including activities associated with performing services under research revenue arrangements and contribution agreements, costs associated with the manufacture of developed products and include salaries and benefits, stock compensation, research‑related facility and overhead costs, laboratory supplies, equipment and contract services.

Recent Accounting Standards

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

Accounting Standards Adopted

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This ASU requires measurement and recognition of expected credit losses for financial assets. The Company adopted ASU 2016-13 on January 1, 2020. The adoption did not have a material impact on our financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (“ASU 2018-13”), which eliminates, adds and modifies certain disclosure requirements for fair value measurements. The Company adopted ASU 2018-13 on January 1, 2020. The results of adoption are presented in Note 3.

In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (“ASU 2018-18”), which clarifies the interaction between ASC 808, Collaborative Arrangements and ASC 606, Revenue from Contracts with Customers. Certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. In addition, ASU 2018-18 precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue if the counterparty is not a customer for that transaction. ASU 2018-18 should be applied retrospectively to the date of initial application of ASC 606. We adopted ASU 2018-18 on January 1, 2020. The adoption did not have a material impact on our financial statements.

Accounting Standards Issued, Not Adopted

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020, with early adoption permitted. Adoption of the standard requires certain changes to be made prospectively, with some changes to be made retrospectively. We do not expect the adoption of this standard to have a material impact on our financial position, results of operations or cash flows.

Fair Value Measurements

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. Fair Value Measurements

The Company measures the following financial assets at fair value on a recurring basis. There were no transfers between levels of the fair value hierarchy during any of the periods presented. The following tables set forth the Company’s financial assets carried at fair value categorized using the lowest level of input applicable to each financial instrument as of September 30, 2020 and December 31, 2019 (in thousands):

	Balance at September 30, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Marketable securities	$	42,176	$	42,176	$	—	$	—
Restricted cash		551		551		—		—
	$	42,727	$	42,727	$	—	$	—


Liabilities:
Derivative liability	$	1,235	$	—	$	—	$	1,235
	$	1,235	$	—	$	—	$	1,235

	Balance at December 31, 2019		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Money market funds	$	4,301	$	4,301	$	—	$	—
Restricted cash		180		180		—		—
	$	4,481	$	4,481	$	—	$	—


Liabilities:
Derivative liability	$	2,425	$	—	$	—	$	2,425
	$	2,425	$	—	$	—	$	2,425

The Company’s cash equivalents and available-for-sale marketable securities are comprised of certificates of deposit and government securities. Securities are classified as cash equivalents when the original maturities are within 90 days of the purchase dates. The Company also maintains money market accounts classified as restricted cash for $0.6 million at September 30, 2020 and certificates of deposit classified as restricted cash for $0.2 million at December 31, 2019 (Note 4).

The Company’s Term Loan Agreement with CRG (Note 6) contains certain provisions that change the underlying cash flows of the instrument, including acceleration of the obligations under the Term Loan Agreement under an event of default. In addition, under certain circumstances, a default interest rate of an additional 4.0% per annum will apply at the election of CRG on all outstanding obligations during the occurrence and continuance of an event of default. The Company concluded that these features are not clearly and closely related to the host instrument and represent a single compound derivative that is required to be re-measured at fair value on a quarterly basis.

The fair value of the derivative at September 30, 2020 and December 31, 2019 is $1.2 million and $2.4 million, respectively, and is classified as a non-current liability on the balance sheet at September 30, 2020, and a current liability at December 31, 2019 to match the classification of the related Term Loan Agreement (Note 6). While the Company’s fair value assessment as of September 30, 2020 assessed the likelihood of paying contingent interest as remote within the next twelve months and as of the date of this filing the Company continues to assess and believes the probability is remote that the contingent interest will commence within the next twelve months which, accordingly, provided for the non-current classification of the derivative liability. Management continues to reassess at each balance sheet and filing date based on facts and circumstances and can provide no assurances regarding the probability of payment of the contingent interest in future periods.

The estimated fair value of the derivative at September 30, 2020 was determined using a probability-weighted discounted cash flow model that includes contingent interest payments under the following scenarios:

	Range
4% contingent interest beginning in 2021		10	%
4% contingent interest beginning in 2022		90	%

Should the Company’s assessment of these probabilities change, including amendments of certain revenue targets, there could be a change to the fair value of the derivative liability.

The following table provides a roll-forward of the fair value of the derivative liability (in thousands):

Balance at December 31, 2019	$	2,425
Change in fair value of derivative liability, recorded as interest expense		(1,190	)
Balance at September 30, 2020	$	1,235

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Restricted Cash

9 Months Ended

Sep. 30, 2020

Restricted Cash [Abstract]

Restricted Cash

4. Restricted Cash

The Company is required to maintain security deposits for its operating lease agreements for the duration of the lease agreements and for a particular credit card program as long it is in place. At September 30, 2020, the Company had money market accounts for $0.6 million, which represented collateral as security deposits for its operating lease agreements for two facilities. At December 31, 2019, the Company had certificates of deposit for $0.2 million, which represented collateral as security deposits for its operating lease agreement for its facility and for a particular credit card program which was no longer in place as of September 30, 2020.

Supplemental Balance Sheet Information

9 Months Ended

Sep. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Supplemental Balance Sheet Information

5. Supplemental Balance Sheet Information

Inventories

Inventories are stated at the lower of cost or net realizable value on a first-in, first-out basis and are comprised of the following (in thousands):

	September 30, 2020		December 31, 2019
Raw materials	$	1,717	$	1,617
Work-in-process		1,430		1,227
Finished goods		422		755
Total inventories, net	$	3,569	$	3,599

The COVID-19 pandemic caused the Company to reassess its build plan and evaluate its inventories accordingly, which resulted in an additional $0.6 million charge to cost of product revenue during the nine months ended September 30, 2020.

Property and Equipment

Property and equipment consist of the following (in thousands):

	September 30, 2020			December 31, 2019
Office and computer equipment	$	538		$	538
Software		762			762
Laboratory equipment		4,953			4,747
Furniture		194			194
Manufacturing equipment		672			672
Manufacturing tooling and molds		255			255
T2-owned instruments and components		5,274			6,775
Leasehold improvements		3,655			3,497
Construction in progress		1,635			1,641
		17,938			19,081
Less accumulated depreciation and amortization		(14,353	)		(13,236	)
Property and equipment, net	$	3,585		$	5,845

Construction in progress is primarily comprised of equipment that has not been placed in service. T2-owned instruments and components is comprised of raw materials and work-in-process inventory that are expected to be used or used to produce T2-owned instruments, based on our business model and forecast, and completed instruments that will be used for internal research and development, clinical studies or reagent rental agreements with customers. At September 30, 2020, there were no raw materials or work-in-process inventory in T2-owned instruments and components compared with $0.6 million at December 31, 2019. Completed T2-owned instruments are placed in service once installation procedures are completed and are depreciated over five years. Depreciation expense for T2-owned instruments placed at customer sites pursuant to reagent rental agreements is recorded as a component of cost of product revenue and totaled approximately $0.1 million and $0.2 million for the three months ended September 30, 2020 and 2019, respectively, and $0.3 million and $0.6 million for the nine months ended September 30, 2020 and 2019, respectively.

At the beginning of the COVID-19 pandemic, the Company believed the pandemic would reduce product sales and impair the ability to recover the cost of the T2-owned instruments and components. The Company assessed the impact on the related cash flows

of the T2-owned instruments and reduced the respective carrying values by $0.6 million as of September 30, 2020, which is recorded as cost of product revenue impairment expense.

Depreciation expense for T2-owned instruments used for internal research and development and clinical studies is recorded as a component of research and development expense. Depreciation and amortization expense of $0.4 million and $0.5 million was charged to operations for the three months ended September 30, 2020 and 2019, respectively. Depreciation and amortization expense of $1.3 million and $1.7 million was charged to operations for the nine months ended September 30, 2020 and 2019, respectively.

Accrued Expenses

Accrued expenses consist of the following (in thousands):

	September 30, 2020		December 31, 2019
Accrued payroll and compensation	$	2,954	$	3,193
Accrued final fee		—		2,445
Accrued research and development expenses		474		267
Accrued professional services		569		511
Accrued interest		932		908
Operating lease liabilities		1,941		1,983
Other accrued expenses		784		1,900
Total accrued expenses and other current liabilities	$	7,654	$	11,207

At December 31, 2019, a fee associated with the Company’s Term Loan Agreement (Note 6) of $2.4 million is included as accrued final fee in the table above to match the current classification of the associated debt. At September 30, 2020, the Company’s Term Loan Agreement with CRG and the associated fee of $3.1 million are classified as non-current liabilities. Included within other accrued expenses in the table above, at September 30, 2020 is $0.3 million from the Second Amendment to Employment Agreement with John McDonough (the “Transition Agreement”) (Note 13). Included within other accrued expenses and accrued payroll and compensation in the table above at December 31, 2019 are $1.0 million and $0.2 million, respectively, related to the Transition Agreement.

Notes Payable

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Notes Payable

6. Notes Payable

Future principal payments on the notes payable are as follows (in thousands):

	September 30, 2020			December 31, 2019
Term loan agreement before unamortized PIK interest, discount and issuance costs	$	48,077		$	48,077
Less: unamortized paid-in-kind interest		(2,080	)		(3,284	)
Less: unamortized discount and deferred issuance costs		(1,385	)		(1,891	)
Total notes payable	$	44,612		$	42,902

The Term Loan Agreement with CRG is classified as a non-current liability at September 30, 2020 as the Company has sufficient cash, cash equivalents and marketable securities as of the date of this filing that the minimum liquidity covenant would not be triggered even upon default of the revenue covenant at December 31, 2020 as a result of having sufficient funds to pay the cure amount set forth under the Term Loan Agreement. The Term Loan Agreement with CRG is classified as a current liability on the balance sheet at December 31, 2019 based on the Company’s consideration of the probability of violating the 2020 revenue covenant, which in turn would trigger violation of the minimum liquidity covenant included in the Term Loan Agreement. The Term Loan Agreement includes a subjective acceleration clause whereby an event of default, including a material adverse change in the business, operations, or conditions (financial or otherwise), could result in the acceleration of the obligations under the Term Loan Agreement. The contractual terms of the agreement, as amended, require quarterly principal payments of $12.0 million commencing March 31, 2022 through maturity December 31, 2022. The Company has assessed the classification of the note payable as non-current based on facts and circumstances as of the date of this filing, specifically as it relates to achieving the minimum liquidity and revenue covenants. As of the date of this filing, the Company believes that should it be unable to meet such covenants as of December 31, 2020, it is probable that it would be able to pay the cure of default. Management continues to reassess at each balance sheet and filing

date based on facts and circumstances and can provide no assurances regarding the probability of meeting its aforementioned covenants in future periods.

Term Loan Agreement

In December 2016, the Company entered into a Term Loan Agreement (the “Term Loan Agreement”) with CRG. The Company initially borrowed $40.0 million pursuant to the Term Loan Agreement, which has a six-year term with four years of interest-only payments (through December 30, 2020), after which quarterly principal and interest payments will be due through the December 30, 2022 maturity date. Interest on the amounts borrowed under the Term Loan Agreement accrues at an annual fixed rate of 11.5%, 3.5% of which may be deferred during the interest-only period by adding such amount to the aggregate principal loan amount. In addition, if the Company achieves certain financial performance metrics, the loan will convert to interest-only until the December 30, 2022 maturity, at which time all unpaid principal and accrued unpaid interest will be due and payable. The Company is required to pay CRG a financing fee based on the loan principal amount drawn. The Company is also required to pay a final payment fee of 8.0%, subsequently amended to 10%, of the principal outstanding upon repayment. The Company is accruing the final payment fee as interest expense and it is included as a non-current liability at September 30, 2020 and a current liability at December 31, 2019 on the balance sheet to conform to the classification of the associated debt in those periods.

The Company may prepay all or a portion of the outstanding principal and accrued unpaid interest under the Term Loan Agreement at any time upon prior notice subject to a certain prepayment fee during the first five years of the term and no prepayment fee thereafter. As security for its obligations under the Term Loan Agreement the Company entered into a security agreement with CRG whereby the Company granted a lien on substantially all of its assets, including intellectual property. The Term Loan Agreement also contains customary affirmative and negative covenants for a credit facility of this size and type, including a requirement to maintain a minimum cash balance. The Term Loan Agreement also requires the Company to achieve certain revenue targets, whereby the Company is required to pay double the amount of any shortfall as an acceleration of principal payments. In March 2019, the Term Loan Agreement was amended to reduce the 2019 minimum revenue target to $9.0 million and eliminate the 2018 revenue covenant. In exchange for the amendment, the Company agreed to reset the strike price of the warrants to purchase a total of 528,958 shares of the Company’s common stock, issued in connection with the Term Loan Agreement, from $8.06 per share to $4.35 per share (Note 9).

In September 2019, the Term Loan Agreement was amended to extend the interest-only payment period through December 31, 2021, to extend the initial principal repayment to March 31, 2022, and to reduce the minimum product revenue target for 2019 from $9 million to $4 million, for the twenty-four month period beginning on January 1, 2019 from $95 million to $15 million and for the twenty-four month period beginning on January 1, 2020 from $140 million to $43 million. The final payment fee was increased from 8% to 10% of the principal amount outstanding upon repayment. The Company issued to CRG warrants to purchase 568,291 shares of the Company’s common stock (“New Warrants”) (Note 9) at an exercise price of $1.55, with typical provisions for termination upon a change of control or a sale of all or substantially all of the assets of the Company. The Company also reduced the exercise price for the warrants previously issued to CRG to purchase an aggregate of 528,958 shares of the Company’s common stock to $1.55. All of the New Warrants are exercisable any time prior to September 9, 2029, and all of the previously issued warrants are exercisable any time prior to December 30, 2026. The Company accounted for the March 2019 and September 2019 amendments as modifications to the Term Loan Agreement.

The Term Loan Agreement includes a subjective acceleration clause whereby an event of default, including a material adverse change in the business, operations, or conditions (financial or otherwise), could result in the acceleration of the obligations under the Term Loan Agreement. Under certain circumstances, a default interest rate of an additional 4.0% per annum will apply at the election of CRG on all outstanding obligations during the occurrence and continuance of an event of default.

Equipment Lease Credit Facility

In October 2015, the Company signed a $10.0 million Credit Facility (the “Credit Facility”) with Essex Capital Corporation (the “Lessor”) to fund capital equipment needs. As one of the conditions of the Term Loan Agreement, the Credit Facility was capped at a maximum of $5.0 million. Under the Credit Facility, Essex funded capital equipment purchases presented by the Company. The Company repaid the amounts borrowed in 36 equal monthly installments from the date of the amount funded. At the end of the 36 month lease term, the Company had the option to (a) repurchase the leased equipment at the lesser of fair market value or 10% of the original equipment value, (b) extend the applicable lease for a specified period of time, which will not be less than one year, or (c) return the leased equipment to the Lessor.

In April 2016 and June 2016, the Company completed the first two draws under the Credit Facility, of $2.1 million and $2.5 million, respectively. The Company made monthly payments of $67,000 under the first draw and $79,000 under the second draw. The borrowings under the Credit Facility were treated as finance leases and are included in property and equipment on the balance sheet. The amortization of the assets conveyed under the Credit Facility was included as a component of depreciation expense. During

the year ended December 31, 2019, the Company repurchased the equipment for $0.3 million in accordance with the terms of the Credit Facility.

Stockholders' Equity (Deficit)

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Stockholders' Equity (Deficit)

7. Stockholders’ Equity (Deficit)

Equity Distribution Agreement

On July 30, 2019, the Company entered into the Sales Agreement with Canaccord, as agent, pursuant to which the Company may offer and sell shares of common stock, for aggregate gross sale proceeds of up to $30.0 million from time to time through Canaccord. On March 9, 2020, the Company entered into an amendment to the Sales Agreement to increase the aggregate gross sales amount from $30.0 million to $65.0 million. On April 8, 2020, the Company entered into an amendment to the Sales Agreement to increase the aggregate gross sales amount from $65.0 million to $95.0 million. As of September 30, 2020, the Company had sold 101,606,667 shares of common stock with an aggregate gross sales amount of $95.0 million.

Upon delivery of a placement notice based on the Company’s instructions and subject to the terms and conditions of the Sales Agreement, Canaccord was able to sell the shares by methods deemed to be an “at the market” offering, subject to shelf limitations if any, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices, or by any other method permitted by law, including negotiated transactions, subject to the prior written consent of the Company. The Company was not obligated to make any sales of shares under the Sales Agreement. The Company or Canaccord were able to suspend or terminate the offering of shares upon notice to the other party, subject to certain conditions. Canaccord acted as sales agent on a commercially reasonable efforts basis consistent with its normal trading and sales practices and applicable state and federal law, rules and regulations and the rules of Nasdaq.

The Company had agreed to pay Canaccord for its services of acting as agent an amount equal to 3% of the gross proceeds from the sale of the shares pursuant to the Sales Agreement. The Company had also agreed to provide Canaccord with customary indemnification for certain liabilities. Legal and accounting fees were changed to share capital upon issuance of shares under the Sales Agreement.

During the nine months ended September 30, 2020, the Company sold 96,120,167 shares under the Sales Agreement for net proceeds of $85.0 million after expenses.

Purchase Agreement

On July 29, 2019, the Company entered into a $30.0 million Purchase Agreement with Lincoln Park, pursuant to which the Company was able to sell and issue to Lincoln Park, and Lincoln Park was obligated to purchase, up to $30.0 million in value of its shares of common stock from time to time over a 36-month period starting from the effective date of the respective registration statement. On April 7, 2020, the Company terminated the Purchase Agreement, effective April 8, 2020.

The Company was able to direct Lincoln Park, at its sole discretion, and subject to certain conditions, to purchase up to 200,000 shares of common stock on any business day, provided that at least one business day had passed since the most recent purchase. The amount of a purchase could be increased under certain circumstances provided, however, that Lincoln Park’s committed obligation under any single purchase would not exceed $2.0 million. The purchase price of shares of common stock related to the future funding was based on the then prevailing market prices of such shares at the time of sales as described in the Purchase Agreement.

In consideration for the execution and delivery of the Purchase Agreement, the Company issued 413,349 shares of common stock to Lincoln Park.

During the nine months ended September 30, 2020, the Company sold 400,000 shares for proceeds of $0.3 million in connection with the Purchase Agreement.

Stock-Based Compensation

9 Months Ended

Sep. 30, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

8. Stock-Based Compensation

Stock Incentive Plans

2006 Stock Incentive Plan

The Company’s 2006 Stock Option Plan (“2006 Plan”) was established for granting stock incentive awards to directors, officers, employees and consultants of the Company. Upon closing of the Company’s IPO in August 2014, the Company ceased granting stock incentive awards under the 2006 Plan. The 2006 Plan provided for the grant of incentive and non-qualified stock options and restricted

stock grants as determined by the Company’s board of directors. Under the 2006 Plan, stock options were generally granted with exercise prices equal to or greater than the fair value of the common stock as determined by the board of directors, expired no later than 10 years from the date of grant, and vested over various periods not exceeding 4 years.

2014 Stock Incentive Plan

The Company’s 2014 Incentive Award Plan (“2014 Plan”, and together with the 2006 Plan, the “Stock Incentive Plans”), provides for the issuance of shares of common stock in the form of stock options, awards of restricted stock, awards of restricted stock units, performance awards, dividend equivalent awards, stock payment awards and stock appreciation rights to directors, officers, employees and consultants of the Company. Since the establishment of the 2014 Plan, the Company has primarily granted stock options and restricted stock units. Generally, stock options are granted with exercise prices equal to or greater than the fair value of the common stock on the date of grant, expire no later than 10 years from the date of grant, and vest over various periods not exceeding 4 years.

The number of shares reserved for future issuance under the 2014 Plan is the sum of (1) 823,529 shares, (2) any shares that were granted under the 2006 Plan which are forfeited, lapse unexercised or are settled in cash subsequent to the effective date of the 2014 Plan and (3) an annual increase on the first day of each calendar year beginning January 1, 2015 and ending on January 1, 2026, equal to the lesser of (A) 4% of the shares outstanding (on an as-converted basis) on the final day of the immediately preceding calendar year and (B) such smaller number of shares determined by the Company’s board of directors. As of September 30, 2020, there were 1,724,563 shares available for future grant under the Stock Incentive Plans.

Inducement Award Plan

The Company’s Amended and Restated Inducement Award Plan (“Inducement Plan”), which was adopted in March 2018 and most recently amended and restated in January 2020, provides for the granting of equity awards to new employees, including options, restricted stock awards, restricted stock units, performance awards, dividend equivalent awards, stock payment awards and stock appreciation rights. The aggregate number of shares of common stock which may be issued or transferred pursuant to awards under the Inducement Plan is 5,625,000 shares. Any awards that forfeit, expire, lapse, or are settled for cash without the delivery of shares to the holder are available for the grant of an award under the Inducement Plan. Any shares repurchased by or surrendered to the Company that are returned shall be available for the grant of an award under the Inducement Plan. The payment of dividend equivalents in cash in conjunction with any outstanding award shall not be counted against the shares available for issuance under the Inducement Plan. As of September 30, 2020, there were 2,067,812 shares available for future grant under the Inducement Plan.

Stock Options

During the nine months ended September 30, 2020 and 2019, the Company granted stock options with an aggregate fair value of $3.2 million and $3.8 million, respectively, which are being amortized into compensation expense over the vesting period of the options as the services are being provided.

The following is a summary of option activity under the Stock Incentive Plans and Inducement Plan (in thousands, except share and per share amounts):

	Number of Shares			Weighted-Average Exercise Price Per Share			Weighted-Average Remaining Contractual Term (In years)		Aggregate Intrinsic Value
Outstanding at December 31, 2019		6,353,330		$	4.95			7.29	$	229
Granted		4,527,452			1.38
Exercised		(15,083	)		0.75
Forfeited		(1,193,940	)		3.08
Cancelled		(493,526	)		(3.56	)
Outstanding at September 30, 2020		9,178,233		$	3.51			7.48	$	1,551
Exercisable at September 30, 2020		4,254,113		$	5.61			5.68	$	324
Vested or expected to vest at September 30, 2020		8,080,663		$	3.79			7.25	$	1,257

ended September 30, 2020 and 2019 were $0.71 per share and $1.40 per share, respectively, and were calculated using the following estimated assumptions:

	Nine Months Ended
	September 30,
	2020			2019
Weighted-average risk-free interest rate		1.35	%		1.98	%
Expected dividend yield		—	%		—	%
Expected volatility		92	%		78	%
Expected terms	5.9 years			6.0 years

The total fair values of options that vested during the nine months ended September 30, 2020 and 2019 were $2.9 million and $2.4 million, respectively.

As of September 30, 2020, there was $4.5 million of total unrecognized compensation cost related to non-vested stock options granted under the Stock Incentive Plans and Inducement Plan. Total unrecognized compensation cost will be adjusted for future changes in the estimated forfeiture rate. The Company expects to recognize that cost over a remaining weighted-average period of 2.6 years as of September 30, 2020.

Restricted Stock Units

During the nine months ended September 30, 2020, the Company awarded restricted stock units to certain employees and directors at no cost to them. The restricted stock units, excluding any restricted stock units with market conditions, vest through the passage of time, assuming continued service. Restricted stock units are not included in issued and outstanding common stock until the underlying shares are vested and released. During the year ended December 31, 2018, an additional 73,172 restricted stock units vested but were not reflected as outstanding shares at December 31, 2019 due to a deferred release date. These restricted stock units are reflected as outstanding shares at September 30, 2020. The fair value of the restricted stock units, at the time of the grant, is expensed on a straight line basis. The granted restricted stock units had an aggregate fair value of $1.2 million, which are being amortized into compensation expense over the vesting period of the restricted stock units as the services are being provided.

Included in the nonvested restricted stock units at September 30, 2020 are 318,898 restricted stock units with market conditions, which vest upon the achievement of stock price targets. The compensation cost for restricted stock units with market conditions is being recorded over the derived service period and was immaterial for the three and nine months ended September 30, 2020 and $0.2 million and $1.0 million for the three and nine months ended September 30, 2019, respectively.

The following is a summary of restricted stock unit activity under the 2014 Plan (in thousands, except share and per share amounts):

	Number of Shares			Weighted-Average Grant Date Fair Value
Nonvested at December 31, 2019		1,295,508			4.19
Granted		1,323,423			0.88
Vested		(331,433	)		3.45
Forfeited		(673,469	)		3.47
Nonvested at September 30, 2020		1,614,029			1.92

As of September 30, 2020, there was $1.4 million of total unrecognized compensation cost related to nonvested restricted stock units granted under the 2014 Plan. Total unrecognized compensation cost will be adjusted for future changes in the estimated forfeiture rate. The Company expects to recognize that cost over a remaining weighted-average period of 1.8 years, as of September 30, 2020.

Employee Stock Purchase Plan

The 2014 Employee Stock Purchase Plan (the “2014 ESPP”) period is semi-annual and allows participants to purchase the Company’s common stock at 85% of the lower of (i) the market value per share of common stock on the first day of the offering period or (ii) the market value per share of the common stock on the purchase date. Each participant can purchase up to a maximum of $25,000 per calendar year in fair market value. The first plan period began on August 7, 2014. Stock-based compensation expense from the 2014 ESPP for the three months ended September 30, 2020 and 2019 was approximately $0.1 million. Stock-based compensation expense from the 2014 ESPP for the nine months ended September 30, 2020 and 2019 was approximately $0.2 million and $0.3 million, respectively. During the nine months ended September 30, 2020 and 2019, 362,995 and 142,329 shares were purchased through the 2014 ESPP, respectively.

The 2014 ESPP, which was amended and restated effective August 6, 2020, provides for the granting of up to 4,523,944 shares of the Company’s common stock to eligible employees. At September 30, 2020, there were 3,358,959 shares available under the 2014 ESPP.

Stock-Based Compensation Expense

The following table summarizes the stock-based compensation expense resulting from awards granted under Stock Incentive Plans, the Inducement Plan and the 2014 Employee Stock Purchase Plan, that was recorded in the Company’s results of operations for the periods presented (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Cost of product revenue	$	33	$	7	$	164	$	295
Research and development		127		283		646		975
Selling, general and administrative		675		862		2,180		3,216
Total stock-based compensation expense	$	835	$	1,152	$	2,990	$	4,486

For the three and nine months ended September 30, 2020 and 2019, stock-based compensation expenses capitalized as part of inventory or T2Dx instruments and components were immaterial.

Warrants

9 Months Ended

Sep. 30, 2020

Warrants And Rights Note Disclosure [Abstract]

Warrants

9. Warrants

In connection with the Term Loan Agreement entered into in December 2016, the Company issued to CRG warrants to purchase a total of 528,958 shares of the Company’s common stock. The warrants are exercisable any time prior to December 30, 2026 at a price of $4.35 per share, which was amended in March 2019 from an original price of $8.06 per share, with typical provisions for termination upon a change of control or a sale of all or substantially all of the assets of the Company. The warrants are classified within stockholders’ equity, and the proceeds were allocated between the debt and warrants based on their relative fair value. The fair value of the warrants was determined by the Black-Scholes-Merton option pricing model. The fair value of the amended warrants was $0.9 million. The incremental fair value of the modified instrument of $0.1 million was recorded as debt discount and additional paid-in-capital.

In connection with the September 2019 amendment of the Term Loan Agreement, the Company issued to CRG warrants to purchase 568,291 shares of the Company’s common stock at an exercise price of $1.55, with typical provisions for termination upon a change of control or a sale of all or substantially all of the assets of the Company. The Company also reduced the exercise price for the warrants previously issued to CRG to $1.55. All of the New Warrants are exercisable any time prior to September 9, 2029. The warrants are classified within shareholders’ equity, and the proceeds were allocated between the debt and warrants based on their relative fair value. The fair value of the new and amended warrants was determined by the Black-Scholes-Merton option pricing model. The incremental fair value of the amended warrants of $0.1 million and the fair value of the New Warrants of $0.7 million were recorded as debt discount and additional paid-in-capital.

Net Loss Per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Net Loss Per Share

10. Net Loss Per Share

The following shares were excluded from the calculation of diluted net loss per share applicable to common stockholders, prior to the application of the treasury stock method, because their effect would have been anti-dilutive for the periods presented:

	Three and Nine Months Ended September 30,
	2020		2019
Options to purchase common shares		9,178,233		6,431,437
Restricted stock units		1,614,029		1,311,758
Warrants to purchase common stock		1,097,249		1,097,249
Total		11,889,511		8,840,444

Co-Development Agreements

9 Months Ended

Sep. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Co-Development Agreements

11. Co-Development Agreements

Canon U.S. Life Sciences

On February 3, 2015, the Company entered into a Co-Development Partnership Agreement (the “Co-Development Agreement”) with Canon U.S. Life Sciences, Inc. (“Canon”) to develop a diagnostic test panel to rapidly detect Lyme disease. On September 21, 2016, Canon became a related party when the Company sold the Canon shares for an aggregate cash purchase price of $39.7 million, which represented 19.9% of the outstanding shares of common stock of the Company.

The Co-Development Agreement was completed in 2019 and the Company did not record any revenue for the three and nine months ended September 30, 2020 and recorded revenue of $0.1 million and $0.2 million for the three and nine months ended September 30, 2019, respectively.

CARB-X

In March 2018, the Company was awarded a grant of up to $2.0 million from CARB-X. The collaboration with CARB-X will be used to accelerate the development of new tests to identify bacterial pathogens and resistance markers directly in whole blood more rapidly than is possible using today’s diagnostic tools. The new tests aim to expand the T2Dx instrument product line by detecting 20 additional bacterial species and resistance targets, with a focus on blood borne pathogens on the United States Centers for Disease Control and Prevention (“CDC”) antibiotic resistance threat list.

Under this cost-sharing agreement, the Company may be reimbursed up to $1.1 million, with the possibility of up to an additional $0.9 million based on the achievement of certain project milestones. In January 2019, the Company was awarded the $0.9 million reimbursement option.

The Company did not record any revenue for the three and nine months ended September 30, 2020. The Company recognized the $0.9 million that was awarded under the reimbursement option in 2019, and recorded revenue of $0.1 million and $0.9 million for the three and nine months ended September 30, 2019, respectively, under the CARB-X Agreement. The Company will not recognize any additional revenue under the CARB-X agreement.

U.S. Government Contract

In September 2019, the Biomedical Advanced Research and Development Authority (“BARDA”) awarded the Company a milestone-based contract, with an initial value of $6.0 million, and a potential value of up to $69.0 million, if BARDA awards all contract options (the “U.S. Government Contract”). BARDA operates within the Office of the Assistant Secretary for Preparedness and Response (“ASPR”) at the U.S. Department of Health and Human Services’ (“HHS”). If BARDA awards and the Company completes all options, the Company’s management believes it will enable a significant expansion of the Company’s current portfolio of diagnostics for sepsis-causing pathogen and anti-biotic resistance genes. In September 2020, BARDA exercised the first contract option valued at $10.5 million.

The Company recorded revenue of $1.5 million and $4.5 million for the three and nine months ended September 30, 2020, respectively. The contract began in September 2019 and the Company recorded revenue of $0.3 million under the U.S. Government Contract for the three and nine months ended September 30, 2019.

Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

12. Leases

Operating Leases

The Company leases certain office space, laboratory space, and equipment. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. The Company does not recognize right-of-use assets or lease liabilities for leases determined to have a term of 12 months or less. For new and amended leases beginning in 2019 and after, the Company has elected to account for the lease and non-lease components as a combined lease component.

In August 2010, the Company entered into an operating lease for office and laboratory space at its headquarters in Lexington, Massachusetts. The lease commenced in January 2011, with the Company providing a security deposit of $400,000. In accordance with the operating lease agreement, the Company reduced its security deposit to $160,000 in January 2018, which is recorded as restricted cash in the condensed consolidated balance sheets. In March 2017, the Company entered into an amendment to extend the term to December 2021. In October 2020, the Company entered into an amendment to extend the term to December 31, 2028. In accordance with the October 2020 amendment, the Company increased its security deposit to $420,438, which is classified as restricted cash at September 30, 2020.

In May 2013, the Company entered into an operating lease for additional office, laboratory and manufacturing space in Wilmington, Massachusetts. In August 2018, the Company entered into an amendment to extend the term to December 2020. In October 2020, the Company entered into an amendment to extend the term to December 31, 2022.

In November 2014, the Company entered into an agreement to rent additional office space in Lexington, Massachusetts. In April 2015, the Company entered into an amendment to extend the term to December 31, 2017. In connection with this agreement, the Company paid a security deposit of $50,000, which is recorded as a component of other assets in the condensed consolidated balance sheets. In May 2015, the Company entered into an amendment to expand existing manufacturing facilities in Lexington, Massachusetts. In September 2017, the Company entered into an amendment to extend the term to December 31, 2021. In June 2020, the Company vacated this office space and determined that subleasing it to a tenant was unlikely due to the impact of the COVID-19 pandemic on the local commercial real estate sub-lease market. As a result, the Company recorded an impairment charge of $0.5 million to selling, general and administrative.

In November 2014, the Company entered into a lease for additional laboratory space in Lexington, Massachusetts. The lease term commenced in April 2015 and extended for six years. The rent expense, inclusive of the escalating rent payments, is recognized on a straight-line basis over the lease term. As an incentive to enter into the lease, the landlord paid approximately $1.4 million of the $2.2 million space build-out costs. The unamortized balance of the lease incentive as of January 1, 2019 was reclassified as a reduction to the initial recognition of the right-of-use asset related to this lease. In connection with this lease agreement, the Company paid a security deposit of $281,000, which was recorded as a component of both prepaid expenses and other current assets and other assets in the condensed consolidated balance sheets at December 31, 2019. In October 2020, the Company entered into an amendment to extend the term of the lease to October 31, 2025. In accordance with this amendment, the Company paid a replacement security deposit of $130,977, which is classified as restricted cash at September 30, 2020. Prepaid expenses and other current assets at September 30, 2020 includes the initial security deposit of $281,000 as it is due back from the landlord.

Operating leases are amortized over the lease term and included in costs and expenses in the condensed consolidated statement of operations and comprehensive loss. Variable lease costs are recognized in costs and expenses in the condensed consolidated statement of operations and comprehensive loss as incurred.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

13. Commitments and Contingencies

Leases

Refer to Note 12, Leases, for discussion of the commitments associated with the Company’s leases.

License Agreement

In 2006, the Company entered into a license agreement with a third party, pursuant to which the third party granted the Company an exclusive, worldwide, sublicenseable license under certain patent rights to make, use, import and commercialize products and processes for diagnostic, industrial and research and development purposes. The Company agreed to pay an annual license fee

ranging from $5,000 to $25,000 for the royalty‑bearing license to certain patents. The Company also issued a total of 84,678 shares of common stock pursuant to the agreement in 2006 and 2007, which were recorded at fair value at the date of issuance. The Company is required to pay royalties on net sales of products and processes that are covered by patent rights licensed under the agreement at a percentage ranging between 0.5% - 3.5%, subject to reductions and offsets in certain circumstances, as well as a royalty on net sales of products that the Company sublicenses at 10% of specified gross revenue. Royalties for the three and nine months ended September 30, 2020 and 2019 were immaterial.

Worldwide Licensing Agreement

In March 2020, the Company entered into a worldwide licensing agreement for a rapid COVID-19, novel coronavirus test developed by the Center of Discovery and Innovation at Hackensack Meridian Health. The licensed coronavirus assay has been used by healthcare professionals within the Hackensack Meridian Health network, under the U.S. Food and Drug Administration’s (“FDA”) Emergency Use Authorization guidance, to test and treat patients suspected of having coronavirus. Under the terms of the agreement, the Company will adapt the coronavirus test to run on its T2Dx Instrument. Hackensack Meridian Health will also adopt the T2Dx Instrument and test panels within its Center of Discovery and Innovation.

In June 2020, the Company completed the validation of its COVID-19 molecular diagnostic test, the T2SARS-CoV-2^TM Panel and on June 30, 2020, the Company launched its COVID-19 test under FDA Emergency Use Authorization rules. The test is designed to detect the presence of the SARS-CoV-2 virus in a nasopharyngeal swab sample. The Company will pay a 3% royalty of its SARS-CoV-2 product to the Center of Discovery and Innovation at Hackensack Meridian Health. Royalties for the three and nine months ended September 30, 2020 were immaterial.

Transition Agreement

On July 30, 2019, the Company announced that founding CEO John McDonough was named Executive Chairman of the Board until a successor is named at which time Mr. McDonough will become non-executive Chairman of the Board. John Sperzel was named CEO in January 2020. In connection with John McDonough’s transition to Non-Executive Chairman of the Board from CEO, the Company agreed to transition payments and health benefits to be paid over the 15-month period following Mr. Sperzel’s start date. At December 31, 2019, included within other accrued expenses is $1.0 million related to Mr. McDonough’s transition payments and health benefits and included within accrued payroll and compensation is $0.2 million related to Mr. McDonough’s bonus. At September 30, 2020, included within other accrued expenses is $0.3 million related to Mr. McDonough’s transition payments and health benefits.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Basis of Presentation

Unaudited Interim Financial Information

Segment Information

Geographic Information

As of September 30, 2020 and December 31, 2019, the Company had outstanding receivables of $0.5 million and $1.2 million, respectively, from customers located outside of the U.S.

Net Loss Per Share

dilutive for all periods presented. Therefore, basic and diluted net loss per share applicable to common stockholders was the same for all periods presented.

Marketable Securities

The following table summarizes the Company’s marketable securities at September 30, 2020 (in thousands):

	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Certificates of deposit	$	1,500	$	1	$	—		$	1,501
U.S. treasury securities		40,712		—		(37	)		40,675
Total	$	42,212	$	1	$	(37	)	$	42,176

The following table summarizes the maturities of the Company’s marketable securities at September 30, 2020 (in thousands):

	September 30, 2020
	Amortized Cost		Fair Value
Due in less than 1 year	$	21,983	$	21,990
Due in 1-2 years		20,229		20,186
Total	$	42,212	$	42,176

Guarantees

Leases

The Company made the policy election to not separate lease and non-lease components. Each lease component and the related non-lease components are accounted for together as a single component.

Revenue Recognition


Most of the Company’s contracts with distributors in geographic regions outside the United States contain only a single performance obligation; whereas, most of the Company’s contracts with direct sales customers in the United States contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Excluded from the transaction price are sales tax and other similar taxes which are presented on a net basis.

allocated to product revenue in the condensed consolidated statements of operations and comprehensive loss as they are incurred by the Company in fulfilling its performance obligations.

Fees paid to member-owned group purchasing organizations (“GPOs”) are deducted from related product revenues.

Disaggregation of Revenue

	Three Months Ended, September 30,				Nine Months Ended, September 30,
	2020		2019		2020		2019
Product Revenue
Instruments	$	1,402	$	543	$	1,819	$	1,540
Consumables		2,332		604		3,930		2,054
Instrument rentals		23		30		94		171
Total Product Revenue		3,757		1,177		5,843		3,765
Research Revenue		—		56		11		269
Contribution Revenue		1,488		444		4,488		1,232
Total Revenue	$	5,245	$	1,677	$	10,342	$	5,266

Remaining Performance Obligations

Significant Judgments

Contract Assets and Liabilities

The Company did not record any contract assets at September 30, 2020 and December 31, 2019.

Cost to Obtain and Fulfill a Contract

Cost of Product Revenue

Research and Development Costs

Recent Accounting Standards

Accounting Standards Adopted

Accounting Standards Issued, Not Adopted

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Summary of Marketable Securities

The following table summarizes the Company’s marketable securities at September 30, 2020 (in thousands):

	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Certificates of deposit	$	1,500	$	1	$	—		$	1,501
U.S. treasury securities		40,712		—		(37	)		40,675
Total	$	42,212	$	1	$	(37	)	$	42,176

Summary of Maturities of Marketable Securities

The following table summarizes the maturities of the Company’s marketable securities at September 30, 2020 (in thousands):

	September 30, 2020
	Amortized Cost		Fair Value
Due in less than 1 year	$	21,983	$	21,990
Due in 1-2 years		20,229		20,186
Total	$	42,212	$	42,176

Disaggregation of Revenue by Major Source

The following table disaggregates our revenue by major source (in thousands):

	Three Months Ended, September 30,				Nine Months Ended, September 30,
	2020		2019		2020		2019
Product Revenue
Instruments	$	1,402	$	543	$	1,819	$	1,540
Consumables		2,332		604		3,930		2,054
Instrument rentals		23		30		94		171
Total Product Revenue		3,757		1,177		5,843		3,765
Research Revenue		—		56		11		269
Contribution Revenue		1,488		444		4,488		1,232
Total Revenue	$	5,245	$	1,677	$	10,342	$	5,266

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities at Fair value on a Recurring Basis

	Balance at September 30, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Marketable securities	$	42,176	$	42,176	$	—	$	—
Restricted cash		551		551		—		—
	$	42,727	$	42,727	$	—	$	—


Liabilities:
Derivative liability	$	1,235	$	—	$	—	$	1,235
	$	1,235	$	—	$	—	$	1,235

	Balance at December 31, 2019		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Money market funds	$	4,301	$	4,301	$	—	$	—
Restricted cash		180		180		—		—
	$	4,481	$	4,481	$	—	$	—


Liabilities:
Derivative liability	$	2,425	$	—	$	—	$	2,425
	$	2,425	$	—	$	—	$	2,425

Summary of Contingent Interest Payments

	Range
4% contingent interest beginning in 2021		10	%
4% contingent interest beginning in 2022		90	%

Roll-Forward of Fair Value of Derivative Liability

The following table provides a roll-forward of the fair value of the derivative liability (in thousands):

Balance at December 31, 2019	$	2,425
Change in fair value of derivative liability, recorded as interest expense		(1,190	)
Balance at September 30, 2020	$	1,235

Supplemental Balance Sheet Information (Tables)

9 Months Ended

Sep. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Inventory

Inventories are stated at the lower of cost or net realizable value on a first-in, first-out basis and are comprised of the following (in thousands):

	September 30, 2020		December 31, 2019
Raw materials	$	1,717	$	1,617
Work-in-process		1,430		1,227
Finished goods		422		755
Total inventories, net	$	3,569	$	3,599

Schedule of Property and Equipment

Property and equipment consist of the following (in thousands):

	September 30, 2020			December 31, 2019
Office and computer equipment	$	538		$	538
Software		762			762
Laboratory equipment		4,953			4,747
Furniture		194			194
Manufacturing equipment		672			672
Manufacturing tooling and molds		255			255
T2-owned instruments and components		5,274			6,775
Leasehold improvements		3,655			3,497
Construction in progress		1,635			1,641
		17,938			19,081
Less accumulated depreciation and amortization		(14,353	)		(13,236	)
Property and equipment, net	$	3,585		$	5,845

Components of Accrued Expenses

Accrued expenses consist of the following (in thousands):

	September 30, 2020		December 31, 2019
Accrued payroll and compensation	$	2,954	$	3,193
Accrued final fee		—		2,445
Accrued research and development expenses		474		267
Accrued professional services		569		511
Accrued interest		932		908
Operating lease liabilities		1,941		1,983
Other accrued expenses		784		1,900
Total accrued expenses and other current liabilities	$	7,654	$	11,207

Notes Payable (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of Debt

Future principal payments on the notes payable are as follows (in thousands):

	September 30, 2020			December 31, 2019
Term loan agreement before unamortized PIK interest, discount and issuance costs	$	48,077		$	48,077
Less: unamortized paid-in-kind interest		(2,080	)		(3,284	)
Less: unamortized discount and deferred issuance costs		(1,385	)		(1,891	)
Total notes payable	$	44,612		$	42,902

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Stock Option Activity

The following is a summary of option activity under the Stock Incentive Plans and Inducement Plan (in thousands, except share and per share amounts):

	Number of Shares			Weighted-Average Exercise Price Per Share			Weighted-Average Remaining Contractual Term (In years)		Aggregate Intrinsic Value
Outstanding at December 31, 2019		6,353,330		$	4.95			7.29	$	229
Granted		4,527,452			1.38
Exercised		(15,083	)		0.75
Forfeited		(1,193,940	)		3.08
Cancelled		(493,526	)		(3.56	)
Outstanding at September 30, 2020		9,178,233		$	3.51			7.48	$	1,551
Exercisable at September 30, 2020		4,254,113		$	5.61			5.68	$	324
Vested or expected to vest at September 30, 2020		8,080,663		$	3.79			7.25	$	1,257

Schedule of Estimated Assumptions Used to Calculate Weighted-Average Grant Date Fair Value of Options Granted

There were 15,083 options exercised in the nine months ended September 30, 2020 and 938 options exercised in the nine months ended September 30, 2019. The weighted-average grant date fair values of stock options granted in the nine month periods ended September 30, 2020 and 2019 were $0.71 per share and $1.40 per share, respectively, and were calculated using the following estimated assumptions:

	Nine Months Ended
	September 30,
	2020			2019
Weighted-average risk-free interest rate		1.35	%		1.98	%
Expected dividend yield		—	%		—	%
Expected volatility		92	%		78	%
Expected terms	5.9 years			6.0 years

Schedule of Nonvested Restricted Stock Units Activity

The following is a summary of restricted stock unit activity under the 2014 Plan (in thousands, except share and per share amounts):

	Number of Shares			Weighted-Average Grant Date Fair Value
Nonvested at December 31, 2019		1,295,508			4.19
Granted		1,323,423			0.88
Vested		(331,433	)		3.45
Forfeited		(673,469	)		3.47
Nonvested at September 30, 2020		1,614,029			1.92

Summary of Stock-Based Compensation Expense for Stock Options Granted that was Recorded in the Company's Results of Operations

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Cost of product revenue	$	33	$	7	$	164	$	295
Research and development		127		283		646		975
Selling, general and administrative		675		862		2,180		3,216
Total stock-based compensation expense	$	835	$	1,152	$	2,990	$	4,486

Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

	Three and Nine Months Ended September 30,
	2020		2019
Options to purchase common shares		9,178,233		6,431,437
Restricted stock units		1,614,029		1,311,758
Warrants to purchase common stock		1,097,249		1,097,249
Total		11,889,511		8,840,444

Nature of Business - Additional Information (Detail) - USD ($)	1 Months Ended		9 Months Ended	24 Months Ended
	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Apr. 07, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Nature of Business
Cash and cash equivalents			$ 19,059,000						$ 11,033,000
Marketable securities			42,200,000
Accumulated deficit			(413,066,000)						(376,177,000)
Stockholders' equity	$ (25,912,000)	$ (1,580,000)	$ 17,574,000			$ (4,388,000)		$ (7,697,000)	$ (34,005,000)	$ (15,620,000)	$ 11,387,000
Reduction in employee headcount			22.00%
Severance costs			$ 400,000
Minimum bid price of common stock for continued listing							$ 1.00
Term Loan Agreement [Member] \| CRG [Member]
Nature of Business
Minimum cash balance			$ 5,000,000.0
Debt instrument covenant compliance revenue target	$ 4,000,000	$ 9,000,000.0
Term Loan Agreement [Member] \| CRG [Member] \| Scenario Forecast [Member]
Nature of Business
Debt instrument covenant compliance revenue target				$ 140,000,000	$ 95,000,000
Term Loan Agreement, Amended [Member] \| CRG [Member] \| Scenario Forecast [Member]
Nature of Business
Debt instrument covenant compliance revenue target				$ 43,000,000	$ 15,000,000

Summary of Significant Accounting Policies - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) Segment	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Product Information [Line Items]
Number of operating segments \| Segment			1
Total revenue	$ 5,245,000	$ 1,677,000	$ 10,342,000	$ 5,266,000
Outstanding receivable	3,860,000		3,860,000		$ 2,825,000
Other-than-temporary unrealized losses			0
Aggregate amount of transaction price allocated to remaining performance obligations for contracts with original duration greater than one year	400,000		$ 400,000
Remaining performance obligation, expected timing of satisfaction			The Company expects to recognize revenue on the remaining performance obligations over the next 23 months.
Contract assets	0		$ 0		0
Contract liabilities	600,000		600,000		200,000
Revenue recognized relating to contract liabilities			200,000
Costs to obtain or fulfill contract capitalized	$ 0		$ 0
Accounting Standards Update 2016-13 [Member]
Product Information [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true		true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2020		Jan. 01, 2020
Change in accounting principle, accounting standards update, immaterial effect [true false]	true		true
Accounting Standards Update 2018-13 [Member]
Product Information [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true		true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2020		Jan. 01, 2020
Accounting Standards Update 2018-18 [Member]
Product Information [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true		true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2020		Jan. 01, 2020
Change in accounting principle, accounting standards update, immaterial effect [true false]	true		true
Accounting Standards Update 2019-12 [Member]
Product Information [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	false		false
T2 Dx [Member]
Product Information [Line Items]
Maintenance Services period (in years)			1 year
Additional period for Maintenance Service option (in years)			1 year
Maximum [Member]
Product Information [Line Items]
Original expected period of contracts for which value of unsatisfied performance obligations not to be disclosed			1 year
Minimum [Member]
Product Information [Line Items]
Aggregate amount of transaction price allocated to remaining performance obligations, original duration			1 year
Non-US [Member]
Product Information [Line Items]
Total revenue	$ 600,000	$ 600,000	$ 1,400,000	$ 1,800,000
Outstanding receivable	$ 500,000		$ 500,000		$ 1,200,000
Revenue [Member] \| Geographic Concentration Risk [Member] \| Non-US [Member]
Product Information [Line Items]
Total revenue (as a percent)	12.00%	36.00%	13.00%	34.00%
Revenue [Member] \| Geographic Concentration Risk [Member] \| Non-US [Member] \| Maximum [Member]
Product Information [Line Items]
Total revenue (as a percent)	10.00%	10.00%	10.00%	10.00%

Summary of Significant Accounting Policies - Summary of Marketable Securities (Detail) $ in Thousands	Sep. 30, 2020 USD ($)
Marketable Securities [Line Items]
Amortized Cost	$ 42,212
Gross Unrealized Gains	1
Gross Unrealized Losses	(37)
Fair Value	42,176
Certificates of Deposit [Member]
Marketable Securities [Line Items]
Amortized Cost	1,500
Gross Unrealized Gains	1
Fair Value	1,501
U.S. Treasury Securities [Member]
Marketable Securities [Line Items]
Amortized Cost	40,712
Gross Unrealized Losses	(37)
Fair Value	$ 40,675

Summary of Significant Accounting Policies - Summary of Maturities of Marketable Securities (Detail) $ in Thousands	Sep. 30, 2020 USD ($)
Accounting Policies [Abstract]
Marketable Securities, Amortized Cost, Due in less than 1 year	$ 21,983
Marketable Securities, Amortized Cost, Due in 1-2 years	20,229
Amortized Cost	42,212
Marketable Securities, Fair Value, Due in less than 1 year	21,990
Marketable Securities, Fair Value, Due in 1-2 years	20,186
Marketable Securities, Fair Value	$ 42,176

Summary of Significant Accounting Policies - Disaggregation of Revenue by Major Resource (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation Of Revenue [Line Items]
Total revenue	$ 5,245	$ 1,677	$ 10,342	$ 5,266
Product Instruments [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	1,402	543	1,819	1,540
Product Consumables [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	2,332	604	3,930	2,054
Instrument Rentals [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	23	30	94	171
Total Product Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	3,757	1,177	5,843	3,765
Research [Member]
Disaggregation Of Revenue [Line Items]
Total revenue		56	11	269
Contribution Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 1,488	$ 444	$ 4,488	$ 1,232

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Fair Value Measurements - Schedule of Financial Assets and Liabilities at Fair value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets:
Marketable securities	$ 42,176
Estimate of Fair Value Measurement [Member] \| Recurring [Member]
Assets:
Marketable securities	42,176
Restricted cash	551	$ 180
Total assets	42,727	4,481
Liabilities:
Derivative liability	1,235	2,425
Total Liabilities	1,235	2,425
Estimate of Fair Value Measurement [Member] \| Recurring [Member] \| Money Market Funds [Member]
Assets:
Cash equivalents		4,301
Level 1 [Member] \| Estimate of Fair Value Measurement [Member] \| Recurring [Member]
Assets:
Marketable securities	42,176
Restricted cash	551	180
Total assets	42,727	4,481
Level 1 [Member] \| Estimate of Fair Value Measurement [Member] \| Recurring [Member] \| Money Market Funds [Member]
Assets:
Cash equivalents		4,301
Level 3 [Member] \| Estimate of Fair Value Measurement [Member] \| Recurring [Member]
Liabilities:
Derivative liability	1,235	2,425
Total Liabilities	$ 1,235	$ 2,425

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability, current		$ 2,425
Derivative liability, noncurrent	$ 1,235
Certificates of deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Restricted cash		200
Money Market Accounts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Restricted cash	$ 600
CRG [Member] \| Term Loan Agreement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Additional interest rate, event of default (as a percent)	4.00%
Derivative liability, current		$ 2,400
Derivative liability, noncurrent	$ 1,200

Fair Value Measurements - Summary of Contingent Interest Payments (Detail) - CRG [Member] - Term Loan Agreement [Member] - Measurement Input, Discount Rate [Member]	9 Months Ended
	Sep. 30, 2020
Contingent Interest Beginning in 2021 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
4% contingent interest beginning, Range	10.00%
Contingent Interest Beginning in 2022 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
4% contingent interest beginning, Range	90.00%

Fair Value Measurements - Summary of Contingent Interest Payments (Parenthetical) (Detail) - CRG [Member] - Term Loan Agreement [Member]	9 Months Ended
	Sep. 30, 2020
Contingent Interest Beginning in 2021 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent payment of interest rate	4.00%
Contingent Interest Beginning in 2022 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent payment of interest rate	4.00%

Fair Value Measurements - Roll-Forward of Fair Value of Derivative Liability (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value of derivative liability, recorded as interest expense	$ (1,190)	$ 461
Probability-Weighted Discounted Cash Flow Model [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance at December 31, 2019	2,425
Change in fair value of derivative liability, recorded as interest expense	(1,190)
Balance at September 30, 2020	$ 1,235

Restricted Cash - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2020 USD ($) Facility	Dec. 31, 2019 USD ($)
Money Market Accounts [Member]
Restricted Cash And Cash Equivalents Items [Line Items]
Security deposits	$ 0.6
Number of facilities \| Facility	2
Certificates of deposit [Member]
Restricted Cash And Cash Equivalents Items [Line Items]
Security deposits		$ 0.2

Supplemental Balance Sheet Information - Schedule of Inventory (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 1,717	$ 1,617
Work-in-process	1,430	1,227
Finished goods	422	755
Total inventories, net	$ 3,569	$ 3,599

Supplemental Balance Sheet Information - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 17,938	$ 19,081
Less accumulated depreciation and amortization	(14,353)	(13,236)
Property and equipment, net	3,585	5,845
Office and Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	538	538
Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	762	762
Laboratory Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,953	4,747
Furniture [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	194	194
Manufacturing Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	672	672
Manufacturing Tooling and Molds [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	255	255
T2-Owned Instruments and Components [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,274	6,775
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,655	3,497
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,635	$ 1,641

Supplemental Balance Sheet Information - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Supplemental Balance Sheet Information [Line Items]
Raw materials and work-in-process inventory	$ 0		$ 0		$ 600,000
Impairment of property and equipment			636,000
Depreciation and amortization	400,000	$ 500,000	1,323,000	$ 1,694,000
Accrued final fee					2,445,000
Accrued final fee noncurrent	3,100,000		3,100,000
Other accrued expenses	784,000		784,000		1,900,000
Accrued payroll and compensation	2,954,000		2,954,000		3,193,000
Transition Agreement [Member]
Supplemental Balance Sheet Information [Line Items]
Other accrued expenses	300,000		$ 300,000		1,000,000.0
Accrued payroll and compensation					$ 200,000
T2 Owned Instruments in Service [Member]
Supplemental Balance Sheet Information [Line Items]
Estimated useful lives (in years)			5 years
T2 Owned Instruments in Service [Member] \| Product [Member]
Supplemental Balance Sheet Information [Line Items]
Depreciation expense recorded as a component of cost of product revenue	$ 100,000	$ 200,000	$ 300,000	$ 600,000
T2-Owned Instruments and Components [Member] \| COVID-19 [Member]
Supplemental Balance Sheet Information [Line Items]
Decrease in carrying value of property and equipment			600,000
Impairment of property and equipment			$ 600,000

Supplemental Balance Sheet Information - Components of Accrued Expenses (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accrued Liabilities Current [Abstract]
Accrued payroll and compensation	$ 2,954	$ 3,193
Accrued final fee		2,445
Accrued research and development expenses	474	267
Accrued professional services	569	511
Accrued interest	932	908
Operating lease liabilities	1,941	1,983
Other accrued expenses	784	1,900
Total accrued expenses and other current liabilities	$ 7,654	$ 11,207

Notes Payable - Schedule of Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Term loan agreement before unamortized PIK interest, discount and issuance costs	$ 48,077	$ 48,077
Less: unamortized paid-in-kind interest	(2,080)	(3,284)
Less: unamortized discount and deferred issuance costs	(1,385)	(1,891)
Total notes payable	$ 44,612	$ 42,902

Notes Payable - Term Loan Agreement - Additional Information (Detail) - USD ($)	1 Months Ended			9 Months Ended		24 Months Ended
	Sep. 30, 2019	Mar. 31, 2019	Dec. 31, 2016	Dec. 31, 2022	Sep. 30, 2020	Dec. 31, 2021	Dec. 31, 2020
Common Stock [Member]
Debt Instrument
Number of shares issuable for warrants outstanding (in shares)	568,291		528,958
Exercise price of warrants	$ 1.55	$ 4.35	$ 8.06
CRG [Member] \| Term Loan Agreement [Member]
Debt Instrument
Proceeds from issuance of long-term debt			$ 40,000,000.0
Debt term (in years)			6 years
Debt instrument, term of interest-only payments (in years)			4 years
Final fee as a percentage of the principal outstanding (as a percent)	10.00%		8.00%		10.00%
Annual fixed rate (as a percent)			11.50%
Deferred interest rate (as a percent)			3.50%
Debt instrument, prepayment fee term (in years)			5 years
Debt instrument covenant compliance revenue target	$ 4,000,000	$ 9,000,000.0
Additional interest rate, event of default (as a percent)					4.00%
CRG [Member] \| Term Loan Agreement [Member] \| Scenario Forecast [Member]
Debt Instrument
Debt instrument, quarterly principal payment				$ 12,000,000.0
Debt instrument covenant compliance revenue target						$ 140,000,000	$ 95,000,000
CRG [Member] \| Term Loan Agreement, Amended [Member] \| Scenario Forecast [Member]
Debt Instrument
Debt instrument covenant compliance revenue target						$ 43,000,000	$ 15,000,000

Notes Payable - Equipment Lease Credit Facility - Additional Information (Detail) - Finance Lease Obligations [Member]	1 Months Ended			12 Months Ended
	Jun. 30, 2016 USD ($) Draw	Apr. 30, 2016 USD ($)	Oct. 31, 2015 USD ($)	Dec. 31, 2019 USD ($)
Debt Instrument
Initial borrowing capacity			$ 10,000,000.0
Maximum borrowings available (up to)			$ 5,000,000.0
Debt term (in months)			36 months
Repurchase price as percentage of original equipment value that the equipment under lease may be repurchased by lessee			10.00%
Minimum lease period to extend lease (in years)			1 year
Amount of draw	$ 2,500,000	$ 2,100,000
Amount of monthly payment	$ 79,000	$ 67,000
Number of draws \| Draw	2
Repurchase of equipment				$ 300,000

Stockholders' Equity (Deficit) - Additional Information (Detail) - USD ($)						9 Months Ended
	Apr. 08, 2020	Apr. 07, 2020	Mar. 09, 2020	Jul. 30, 2019	Jul. 29, 2019	Sep. 30, 2020
Lincoln Park [Member]
Class Of Stock [Line Items]
Purchase agreement termination effective date		Apr. 08, 2020
Equity Distribution Agreement [Member] \| Canaccord [Member]
Class Of Stock [Line Items]
Number of shares issued/sold						101,606,667
Aggregate gross sales amount of common stock						$ 95,000,000.0
Sales Agreement [Member] \| Canaccord [Member]
Class Of Stock [Line Items]
Sale of common stock authorized, amount	$ 95,000,000.0		$ 65,000,000.0	$ 30,000,000.0
Number of shares issued/sold						96,120,167
Percentage of agent service fee				3.00%
Proceeds from issuance of common stock						$ 85,000,000.0
Purchase Agreement [Member] \| Lincoln Park [Member]
Class Of Stock [Line Items]
Sale of common stock authorized, amount					$ 30,000,000.0
Number of shares issued/sold					413,349	400,000
Proceeds from issuance of common stock						$ 300,000
Effective period for sale of common stock					36 months
Maximum number of shares issue per business day					200,000
Maximum amount of shares to be issue per business day					$ 2,000,000.0

Stock-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2018	Aug. 06, 2020	Mar. 31, 2018
Share-Based Compensation
Fair value of vested stock options			$ 2,900,000	$ 2,400,000
Stock-based compensation expense	$ 835,000	$ 1,152,000	$ 2,990,000	4,486,000
Employee Stock Purchase Plan [Member]
Share-Based Compensation
Shares available for grant	3,358,959		3,358,959
Shares available for authorization						4,523,944
Percentage of full share price paid in purchase of common stock			85.00%
Maximum amount of annual employee common stock purchases			$ 25,000
Stock-based compensation expense	$ 100,000	100,000	$ 200,000	$ 300,000
Number of shares purchased by participants			362,995	142,329
Restricted Stock Units [Member]
Share-Based Compensation
Weighted-average period			1 year 9 months 18 days
Unrecognized compensation cost related to unvested stock options	$ 1,400,000		$ 1,400,000
2014 Stock Option Plan [Member] \| Stock Options [Member]
Share-Based Compensation
Shares available for future issuance under stock incentive plan	823,529		823,529
Percentage of common shares outstanding	4.00%		4.00%
Shares available for grant	1,724,563		1,724,563
2014 Stock Option Plan [Member] \| Restricted Stock Units [Member]
Share-Based Compensation
Restricted stock units vested			331,433
Restricted stock units granted			1,323,423
Inducement Award Plan [Member]
Share-Based Compensation
Shares available for grant	2,067,812		2,067,812
Shares available for authorization							5,625,000
2006 and 2014 Stock Option Plans [Member] \| Stock Options [Member]
Share-Based Compensation
Aggregate fair value of options granted			$ 3,200,000	$ 3,800,000
Unrecognized compensation cost related to non-vested stock options	$ 4,500,000		$ 4,500,000
Weighted-average period			2 years 7 months 6 days
2006 and 2014 Stock Option Plans and Inducement Plan [Member] \| Stock Options [Member]
Share-Based Compensation
Issuance of common stock from exercise of stock options (in shares)			15,083	938
Weighted average fair value of options granted			$ 0.71	$ 1.40
2006 and 2014 Stock Option Plans and Inducement Plan [Member] \| Restricted Stock Units [Member]
Share-Based Compensation
Aggregate fair value of restricted stock units granted			$ 1,200,000
2006 and 2014 Stock Option Plans and Inducement Plan [Member] \| Restricted Stock Units [Member] \| Restricted Stock Units Vested, Not Reflected As Outstanding Shares [Member]
Share-Based Compensation
Restricted stock units vested					73,172
2006 and 2014 Stock Option Plans and Inducement Plan [Member] \| Restricted Stock Units with Market Condition [Member]
Share-Based Compensation
Restricted stock units granted			318,898
Compensation Cost		$ 200,000		$ 1,000,000.0
Maximum [Member] \| 2006 Stock Option Plan [Member] \| Stock Options [Member]
Share-Based Compensation
Expiration period			10 years
Vesting period			4 years
Maximum [Member] \| 2014 Stock Option Plan [Member] \| Stock Options [Member]
Share-Based Compensation
Expiration period			10 years
Vesting period			4 years

Stock-Based Compensation - Summary of Stock Option Activity (Detail) - 2006 and 2014 Stock Option Plans and Inducement Plan [Member] - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Share-Based Compensation
Number of Shares Outstanding, beginning of the period	6,353,330
Number of Shares, Granted	4,527,452
Number of Shares, Exercised	(15,083)	(938)
Number of Shares, Forfeited	(1,193,940)
Number of Shares, Cancelled	(493,526)
Number of Shares Outstanding, end of the period	9,178,233		6,353,330
Number of Shares, Exercisable	4,254,113
Number of Shares, Vested or expected to vest	8,080,663
Weighted-Average Exercise Price Per Share Outstanding, beginning of the period	$ 4.95
Weighted-Average Exercise Price Per Share, Granted	1.38
Weighted-Average Exercise Price Per Share, Exercised	0.75
Weighted-Average Exercise Price Per Share, Forfeited	3.08
Weighted-Average Exercise Price Per Share, Cancelled	(3.56)
Weighted-Average Exercise Price Per Share Outstanding, end of the period	3.51		$ 4.95
Weighted-Average Exercise Price Per Share, Exercisable	5.61
Weighted-Average Exercise Price Per Share, Vested or expected to vest	$ 3.79
Weighted-Average Remaining Contractual Term, Outstanding	7 years 5 months 23 days		7 years 3 months 14 days
Weighted-Average Remaining Contractual Term, Exercisable	5 years 8 months 4 days
Weighted-Average Remaining Contractual Term, Vested or expected to vest	7 years 3 months
Aggregate Intrinsic Value, Outstanding, beginning of the period	$ 229
Aggregate Intrinsic Value Outstanding, end of the period	1,551		$ 229
Aggregate Intrinsic Value, Exercisable	324
Aggregate Intrinsic Value, Vested or expected to vest	$ 1,257

Stock-Based Compensation - Schedule of Estimated Assumptions Used to Calculate Weighted-Average Grant Date Fair Value of Options Granted (Detail) - Stock Options [Member] - 2006 and 2014 Stock Option Plans and Inducement Plan [Member]	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Share-Based Compensation
Weighted-average risk-free interest rate	1.35%	1.98%
Expected volatility	92.00%	78.00%
Expected terms	5 years 10 months 24 days	6 years

Stock-Based Compensation - Schedule of Nonvested Restricted Stock Units Activity (Detail) - 2014 Stock Option Plan [Member] - Restricted Stock Units [Member]	9 Months Ended
	Sep. 30, 2020 $ / shares shares
Share-Based Compensation
Number of Shares, Nonvested restricted shares at the beginning of the period \| shares	1,295,508
Number of Shares, Restricted shares granted \| shares	1,323,423
Number of Shares, Restricted shares vested \| shares	(331,433)
Number of Shares, Restricted shares forfeited \| shares	(673,469)
Number of Shares, Nonvested restricted shares at the end of the period \| shares	1,614,029
Weighted-Average Grant Date Fair Value, Nonvested restricted shares at the beginning of the period \| $ / shares	$ 4.19
Weighted-Average Grant Date Fair Value, Granted \| $ / shares	0.88
Weighted-Average Grant Date Fair Value, Vested \| $ / shares	3.45
Weighted-Average Grant Date Fair Value, Forfeited \| $ / shares	3.47
Weighted-Average Grant Date Fair Value, Nonvested restricted shares at the end of the period \| $ / shares	$ 1.92

Stock-Based Compensation - Summary of Stock-Based Compensation Expense for Stock Options Granted that was Recorded in the Company's Results of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Stock-based compensation expense
Stock-based compensation expense	$ 835	$ 1,152	$ 2,990	$ 4,486
Cost of Product Revenue [Member]
Stock-based compensation expense
Stock-based compensation expense	33	7	164	295
Research and Development [Member]
Stock-based compensation expense
Stock-based compensation expense	127	283	646	975
Selling, General and Administrative [Member]
Stock-based compensation expense
Stock-based compensation expense	$ 675	$ 862	$ 2,180	$ 3,216

Warrants - Additional Information (Detail) - Common Stock [Member] - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Sep. 30, 2019	Mar. 31, 2019	Dec. 31, 2016
Class of Warrant or Right [Line Items]
Number of shares issuable for warrants outstanding	568,291		528,958
Exercise price of warrants	$ 1.55	$ 4.35	$ 8.06
Fair market value of amended warrants	$ 0.7	$ 0.9
Incremental fair value of warrants adjustment	$ 0.1	$ 0.1

Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per share	11,889,511	8,840,444	11,889,511	8,840,444
Options to Purchase Common Shares [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per share	9,178,233	6,431,437	9,178,233	6,431,437
Restricted Stock Units [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per share	1,614,029	1,311,758	1,614,029	1,311,758
Warrants to Purchase Common Stock [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per share	1,097,249	1,097,249	1,097,249	1,097,249

Co-Development Agreements - Additional Information (Detail)		1 Months Ended			3 Months Ended		9 Months Ended
	Sep. 21, 2016 USD ($)	Sep. 30, 2020 USD ($)	Jan. 31, 2019 USD ($)	Mar. 31, 2018 USD ($) specie	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue					$ 5,245,000	$ 1,677,000	$ 10,342,000	$ 5,266,000
Co Development Partnership Agreement [Member] \| Canon U.S. Life Sciences Inc [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue					0	100,000	0	200,000
Co Development Partnership Agreement [Member] \| CARB-X [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue					0	100,000	0	900,000
Number of additional bacteria species added to existing product candidate \| specie				20
Co Development Partnership Agreement [Member] \| CARB-X [Member] \| Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Aggregate consideration receivable				$ 2,000,000.0
Collaborative arrangement reimbursement amount			$ 900,000	1,100,000				900,000
Milestone payment				$ 900,000
Co Development Partnership Agreement [Member] \| Biomedical Advanced Research and Development Authority [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue					$ 1,500,000	300,000	$ 4,500,000	300,000
Initial value of consideration receivable						6,000,000.0		6,000,000.0
First contract option value exercised		$ 10,500,000
Co Development Partnership Agreement [Member] \| Biomedical Advanced Research and Development Authority [Member] \| Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Aggregate consideration receivable						$ 69,000,000.0		$ 69,000,000.0
Private Placement [Member] \| Canon U S A Inc [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Proceeds from sale of shares in related party	$ 39,700,000
Percentage of outstanding shares at date of sale	19.90%

Leases - Additional Information (Detail) - USD ($)		1 Months Ended						9 Months Ended
Leases - Additional Information (Detail) - USD ($)	Sep. 30, 2017	Oct. 31, 2020	Jun. 30, 2020	Aug. 31, 2018	Mar. 31, 2017	Apr. 30, 2015	Nov. 30, 2014	Sep. 30, 2020	Dec. 31, 2019	Jan. 31, 2018	Jan. 11, 2011
Leases [Line Items]
Right-of-use assets								$ 1,729,000	$ 3,360,000
Impairment of operating lease asset								523,000
Operating Lease Entered into November 2014 [Member] \| License Agreement [Member] \| Office Space [Member]
Leases [Line Items]
Lease expiration date	Dec. 31, 2021					Dec. 31, 2017
Security deposit							$ 50,000
Operating Lease Entered into November 2014 [Member] \| License Agreement [Member] \| Office Space [Member] \| Selling, General and Administrative [Member] \| COVID-19 [Member]
Leases [Line Items]
Impairment of operating lease asset			$ 500,000
Office Space, Laboratory Space, and Equipment [Member]
Leases [Line Items]
Right-of-use assets								0
Lease liabilities								$ 0
Maximum lease period to not recognize right of use assets or lease liabilities								12 months
Office and Laboratory Space [Member] \| Operating Lease Entered into August 2010 [Member]
Leases [Line Items]
Lease expiration date					Dec. 31, 2021
Security deposit								$ 420,438		$ 160,000	$ 400,000
Office and Laboratory Space [Member] \| Operating Lease Entered into August 2010 [Member] \| Subsequent Event [Member]
Leases [Line Items]
Lease expiration date		Dec. 31, 2028
Office, Laboratory and Manufacturing Space [Member] \| Operating Lease Entered into May 2013 [Member]
Leases [Line Items]
Lease expiration date				Dec. 31, 2020
Office, Laboratory and Manufacturing Space [Member] \| Operating Lease Entered into May 2013 [Member] \| Subsequent Event [Member]
Leases [Line Items]
Lease expiration date		Dec. 31, 2022
Laboratory Space [Member] \| Operating Lease Entered into November 2014 [Member]
Leases [Line Items]
Security deposit								130,977	$ 281,000
Term of lease							6 years
Space build-out costs paid							$ 1,400,000
Space build-out costs							$ 2,200,000
Security deposit receivable from landlord								$ 281,000
Laboratory Space [Member] \| Operating Lease Entered into November 2014 [Member] \| Subsequent Event [Member]
Leases [Line Items]
Lease expiration date		Oct. 31, 2025

Commitments and Contingencies - Additional Information (Details) - USD ($)	1 Months Ended	9 Months Ended	24 Months Ended
	Jun. 30, 2020	Sep. 30, 2020	Dec. 31, 2007	Dec. 31, 2019	Dec. 31, 2006
Commitments and Contingencies [Line Items]
Accrued payroll and compensation		$ 2,954,000		$ 3,193,000
COVID-19 [Member] \| SARS-CoV-2 [Member] \| Hackensack Meridian Health [Member]
Commitments and Contingencies [Line Items]
Royalty on product to center of discovery and innovation	3.00%
License Agreement [Member]
Commitments and Contingencies [Line Items]
Shares issued			84,678
Royalty on net sales sublicensing gross revenue		10.00%
Transition Agreement [Member]
Commitments and Contingencies [Line Items]
Payment period on transition and health benefits		15 months
Transition Agreement [Member] \| Bonus [Member]
Commitments and Contingencies [Line Items]
Accrued payroll and compensation				200,000
Transition Agreement [Member] \| Other Accrued Expenses [Member]
Commitments and Contingencies [Line Items]
Transition payments and health benefits		$ 300,000		$ 1,000,000.0
Minimum [Member] \| License Agreement [Member]
Commitments and Contingencies [Line Items]
Annual license fee payable					$ 5,000
Percentage of royalty on net sales		0.50%
Maximum [Member] \| License Agreement [Member]
Commitments and Contingencies [Line Items]
Annual license fee payable					$ 25,000
Percentage of royalty on net sales		3.50%