Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 08, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ARDM | |
Entity Registrant Name | ARADIGM CORP | |
Entity Central Index Key | 1,013,238 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 15,112,078 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 12,028 | $ 22,591 |
Restricted cash | 1,006 | |
Receivables | 340 | 167 |
Prepaid and other current assets | 621 | 1,037 |
Total current assets | 12,989 | 24,801 |
Property and equipment, net | 227 | 253 |
Total assets | 13,216 | 25,054 |
Current liabilities: | ||
Accounts payable | 1,058 | 711 |
Accrued clinical and cost of other studies | 476 | 3,306 |
Accrued compensation | 1,149 | 1,335 |
Deferred revenue - related party, current | 1,891 | |
Deferred revenue - other | 79 | |
Other accrued liabilities | 497 | 496 |
Total current liabilities | 5,150 | 5,848 |
Deferred revenue - related party, non-current | 5,000 | |
Convertible debt - non-current, net of discount | 2,296 | 2,212 |
Convertible debt - related party, non-current, net of discount | 11,788 | 11,007 |
Total liabilities | 19,234 | 24,067 |
Commitments and contingencies | ||
Shareholders' equity (deficit): | ||
Preferred stock, 5,000,000 shares authorized, none outstanding | ||
Common stock, no par value; authorized shares: 35,045,765 at June 30, 2017 and December 31, 2016; issued and outstanding shares: 15,112,078 at June 30, 2017; 14,951,089 at December 31, 2016 | 441,090 | 439,406 |
Accumulated deficit | (447,108) | (438,419) |
Total shareholders' equity (deficit) | (6,018) | 987 |
Total liabilities and shareholders' equity (deficit) | $ 13,216 | $ 25,054 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 35,045,765 | 35,045,765 |
Common stock, shares issued | 15,112,078 | 14,951,089 |
Common stock, shares outstanding | 15,112,078 | 14,951,089 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue: | ||||
Contract revenue - related party | $ 7,472 | $ 9,095 | ||
Contract revenue | 196 | 235 | ||
Grant revenue | 7 | $ 14 | 38 | $ 20 |
Total revenue | 7,675 | 14 | 9,368 | 20 |
Operating expenses: | ||||
Research and development | 3,794 | 6,235 | 6,568 | 12,686 |
General and administrative | 1,911 | 1,385 | 3,589 | 3,029 |
Restructuring and asset impairment | 1 | 2 | ||
Total operating expenses | 5,705 | 7,621 | 10,157 | 15,717 |
Income (loss) from operations | 1,970 | (7,607) | (789) | (15,697) |
Interest income | 22 | 26 | 50 | 36 |
Interest expense | (959) | (577) | (1,912) | (577) |
Other income (expense) | 2 | (571) | 8 | (577) |
Net income (loss) and comprehensive income (loss) | $ 1,035 | $ (8,729) | $ (2,643) | $ (16,815) |
Basic and diluted net income (loss) per common share | $ 0.07 | $ (0.59) | $ (0.18) | $ (1.14) |
Shares used in computing basic net income (loss) per common share | 14,847 | 14,778 | 14,823 | 14,769 |
Shares used in computing diluted net income (loss) per common share | 14,848 | 14,778 | 14,823 | 14,769 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (2,643) | $ (16,815) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation and amortization | 55 | 57 |
Stock-based compensation expense | 1,163 | 800 |
Amortization of convertible debt discount | 865 | 252 |
Financing costs, derivative liability and warrants | 936 | |
Change in value of derivative liability | (386) | |
Changes in operating assets and liabilities: | ||
Receivables | (173) | (180) |
Prepaid and other current assets | 416 | 1,302 |
Accounts payable | 347 | (638) |
Accrued compensation | 258 | (138) |
Deferred revenue - related party | (9,055) | |
Other accrued liabilities | (2,829) | (1,649) |
Deferred rent | (37) | |
Facility lease exit obligation | (100) | |
Net cash used in operating activities | (11,596) | (16,596) |
Cash flows from investing activities: | ||
Transfer to/from restricted cash | 1,006 | (1,800) |
Capital expenditures | (29) | (40) |
Net cash provided by (used in) investing activities | 977 | (1,840) |
Cash flows from financing activities: | ||
Proceeds from issuance of convertible debt - related party | 20,000 | |
Proceeds from issuance of common stock | 56 | 60 |
Payments for debt issuance costs | (1,873) | |
Net cash provided by financing activities | 56 | 18,187 |
Net decrease in cash and cash equivalents | (10,563) | (249) |
Cash and cash equivalents at beginning of period | 22,591 | 31,462 |
Cash and cash equivalents at end of period | 12,028 | 31,213 |
Supplemental disclosure of non-cash financing activities: | ||
Reclassification of derivative liability to equity | 8,362 | |
Reclassification of warrants to equity | 11 | |
Accrued financing costs | $ 264 | |
Supplemental disclosure of non-cash activities: | ||
Cumulative effect of adoption of new accounting standards | 6,046 | |
Stock issued in payment of officer bonus | $ 444 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Liquidity | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Basis of Presentation and Liquidity | 1. Organization, Basis of Presentation and Liquidity Organization Aradigm Corporation (the “Company,” “we,” “our,” or “us”) is a California corporation, incorporated in 1991, focused on the development and commercialization of drugs delivered by inhalation for the treatment and prevention of severe respiratory diseases. The Company’s principal activities to date have included conducting research and development and developing collaborations. Management does not anticipate receiving revenues from the sale of any of its products during the 2017 fiscal year. The Company operates as a single operating segment. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the financial statements reflect all adjustments, which are of a normal recurring nature, necessary for fair presentation. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC on March 30, 2017 (the “2016 Annual Report on Form 10-K”). The results of the Company’s consolidated operations for the interim periods presented are not necessarily indicative of operating results for the full fiscal year or any future interim period. The consolidated balance sheet at December 31, 2016 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP for complete financial statements. For further information, please refer to the consolidated financial statements and notes thereto included in the 2016 Annual Report on Form 10-K. Effective January 1, 2017, the Company elected to early adopt the requirements of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. Liquidity and Going Concern The Company has incurred significant operating losses and negative cash flows from operations. At June 30, 2017, the Company had an accumulated deficit of $447.1 million, working capital of $7.8 million and shareholders’ deficit of $6.0 million. The Company believes that its cash and cash equivalents of approximately $12 million as of June 30, 2017 will be sufficient to fund its operations at least through 2017, provided the Company receives the $5 million milestone payment from Grifols upon the first regulatory filing for Linhaliq™ in the US or EU. However, the Company will need to raise additional capital in 2017 or early in 2018 to maintain the Company’s operations for the ensuing twelve months, including efforts to obtain approval to market its leading product candidate Linhaliq in the US and EU. Accordingly, the Company anticipates raising additional capital in 2017, through issuance of debt or equity securities, royalty financing transactions, strategic transactions or otherwise. No assurance can be given that the Company will be successful in raising such additional capital on favorable terms or at all. If the Company is unable to obtain additional funds when required, it may delay or reduce the scope of all or a portion of its development programs or dispose of assets or technology. As reflected in the accompanying condensed consolidated financial statements, the Company has an accumulated deficit of $447.1 million as of June 30, 2017 that includes a net loss of $2.6 million for the six months ended June 30, 2017, which raises doubt about the Company’s ability to continue as a going concern. The Company’s current assets of $13 million exceed current liabilities of $5.2 million by $7.8 million. As stated above, the Company believes that its cash and cash equivalents of approximately $12.0 million as of June 30, 2017 are sufficient to fund its operations through 2017, provided the Company receives the $5 million milestone payment from Grifols upon the first regulatory filing; however, since cash and cash equivalents are insufficient to fund the Company’s operations for the ensuing twelve months from the filing of this report, there is substantial doubt about the Company’s ability to continue to operate as a going concern. While recoverability of the recorded asset amounts shown in the accompanying condensed consolidated balance sheet is dependent upon continued operations of the Company, the condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates include useful lives for property and equipment and related depreciation calculations, accruals for clinical trial expenses, assumptions for valuing options and warrants, and income taxes. Actual results could differ from these estimates. Cash and Cash Equivalents All highly liquid investments with maturities of three months or less at the time of purchase are classified as cash equivalents. Restricted Cash The Company classifies transfers to or from the restricted cash balance in the statement of cash flows based on the nature of the restriction. At June 30, 2017, the Company had no restricted cash. Property and Equipment The Company records property and equipment at cost and calculates depreciation using the straight-line method over the estimated useful lives of the respective assets. Machinery and equipment includes external costs incurred for validation of the equipment. The Company does not capitalize internal validation expense. Computer equipment and software includes capitalized computer software. All the Company’s capitalized software is purchased; the Company has no internally-developed computer software. Leasehold improvements are amortized over the shorter of the term of the lease or useful life of the improvement. Convertible Instruments The Company accounts for hybrid contracts that feature conversion options in accordance with generally accepted accounting principles in the United States. ASC 815, Derivatives and Hedging Activities, or ASC 815, requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The Company accounts for convertible instruments (when it has determined that the embedded conversion options should be bifurcated from their host instruments) in accordance with ASC 815. Under ASC 815, a portion of the proceeds received upon the issuance of the hybrid contract is allocated to the fair value of the derivative. The derivative is subsequently marked to market at each reporting date based on current fair value, with the changes in fair value reported in results of operations. Warrants Issued in Connection with Financings The Company generally accounts for warrants issued in connection with financings as a component of equity, unless there is a possibility that the Company may have to settle the warrants in cash. For warrants issued with the deemed possibility of a cash settlement, the Company records the fair value of the issued warrants as a liability at each reporting date and records changes in the estimated fair value as a non-cash gain or loss in the condensed consolidated statements of operations. The fair values of warrants have been determined using the Black Scholes Merton Option Pricing valuation model, or the Black-Scholes Model. The Black-Scholes Model provides for assumptions regarding volatility, call and put features and risk-free interest rates within the total period to maturity. These values are subject to a significant degree of judgment on the part of the Company. Accounting for Costs Associated with Exit or Disposal Activities The Company recognizes a liability for the cost associated with an exit or disposal activity that is measured initially at its fair value in the period in which the liability is incurred. Costs to terminate an operating lease or other contracts are (a) costs to terminate the contract before the end of its term or (b) costs that will continue to be incurred under the contract for its remaining term without economic benefit to the entity. In periods subsequent to initial measurement, changes to the liability are measured using the credit-adjusted risk-free rate that was used to measure the liability initially. Revenue Recognition Beginning January 1, 2017, the Company has followed the provisions of ASC Topic 606, Revenue from Contracts with Customers The Company’s contract revenues consist of revenues from grants, collaboration agreements and feasibility studies. License and collaboration revenue is primarily generated through agreements with strategic partners for the development and commercialization of our product candidates. The terms of the agreement typically include non-refundable upfront fees, funding of research and development activities, payments based upon achievement of milestones and royalties on net product sales. The Company has both fixed and variable consideration. Non-refundable upfront fees and funding of research and development activities are considered fixed, while milestone payments are identified as variable consideration. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC Topic 606. The Company’s performance obligations include license rights, development services, and services associated with regulatory submission and approval processes. Significant management judgment is required to determine the level of effort required under an arrangement and the period over which the Company expects to complete its performance obligations under the arrangement. If the Company cannot reasonably estimate when its performance obligations either are completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company uses key assumptions to determine the stand-alone selling price, which may include forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success. The Company allocates the total transaction price to each performance obligation based on the estimated relative standalone selling prices of the promised goods or service underlying each performance obligation. Estimated selling prices for license rights are calculated using an income approach model and include the following key assumptions: the development timeline, revenue forecast, commercialization expenses, discount rate and probabilities of technical and regulatory success. To estimate selling prices for development services, regulatory submission services, and product supply, the Company uses a cost plus margin approach. Licenses of intellectual property: Milestone payments Royalties: The Company has optional additional items in contracts, which are considered marketing offers and are accounted for as separate contracts when the customer elects such options. Arrangements that include a promise for future supply of drug substance or drug product for either clinical development or commercial supply at the customer’s discretion are generally considered as options. The Company assesses if these options provide a material right to the licensee and if so, they are accounted for as separate performance obligations. If the Company is entitled to additional payments when the customer exercises these options, any additional payments are recorded in license, collaboration and other revenues when the customer obtains control of the goods, which is upon delivery. Research and Development Research and development expenses consist of costs incurred for company-sponsored, collaborative and contracted research and development activities. These costs include direct and research-related overhead expenses. Research and development expenses that are reimbursed under collaborative and government grants approximate the revenue recognized under such agreements. The Company expenses research and development costs as such costs are incurred. The Company is eligible under the AusIndustry research and development tax incentive program to obtain a cash amount from the Australian Taxation Office. The tax incentive is available to the Company on the basis of specific criteria with which the Company must comply. Specifically, the Company must have revenue of less than AUD $20.0 million and cannot be controlled by income tax exempt entities. These research and development tax incentives are recognized as contra research and development expense when the right to receive has been attained and funds are considered to be collectible. The tax incentive is denominated in Australian dollars and, therefore, the related receivable is re-measured into U.S. dollars as of each reporting date. The Company recognizes the funds related to its Australian research and development tax incentives that are not subject to refund provisions as a reduction of research and development expense. The amounts are determined on a cost reimbursement basis and the incentive is related to the Company’s research and development expenditures and is refundable regardless of whether any Australian tax is owed. These Australian research and development tax incentives are recognized when there is reasonable assurance that the incentive will be received, the relevant expenditure has been incurred and the amount of the consideration can be reliably measured. During the three and six months ended June 30, 2017, the Company offset its research and development costs by $0.9 million through the recognition of tax incentive credits. Stock-Based Compensation The Company accounts for share-based payment arrangements in accordance with ASC 718, Compensation-Stock Compensation Equity-Equity Based Payments to Non-Employees Income Taxes The Company makes certain estimates and judgments in determining income tax expense for consolidated financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. As part of the process of preparing the financial statements, the Company is required to estimate income taxes in each of the jurisdictions in which it operates. This process involves the Company estimating its current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities which are included in the Company’s condensed consolidated balance sheets. The Company assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers all available evidence, both positive and negative, including the historical levels of income and losses, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance. If the Company does not consider it more likely than not that it will recover its deferred tax assets, the Company records a valuation allowance against the deferred tax assets that it estimates will not ultimately be recoverable. At June 30, 2017, and December 31, 2016 the Company believed that the amount of its deferred income taxes would not be ultimately recovered. Accordingly, the Company recorded a full valuation allowance for deferred tax assets. However, should there be a change in the Company’s ability to recover its deferred tax assets the Company would recognize a benefit to its tax provision in the period in which it determines that it is more likely than not that it will recover its deferred tax assets. Net Income/(Loss) Per Common Share Basic net income/(loss) per common share is computed using the weighted-average number of shares of common stock outstanding during the period less the weighted-average number of restricted shares of common stock subject to repurchase. Diluted net income/(loss) per common share is based on the weighted average number of common and common equivalent shares, such as stock options and unvested restricted stock shares outstanding during the period. Potentially dilutive securities were included for the three months ended June 30, 2017 but were excluded in the other periods presented, because such inclusion of shares would have been anti-dilutive. Accounting Changes In May 2014, the Financial Accounting Standards Board issued ASU No. 2014-09, Revenue from Contracts with Customers Effective January 1, 2017, the Company elected to early adopt the requirements of Topic 606 using the modified retrospective method, applying the new guidance to the most current period presented with the cumulative effect of changes reflected in the opening balance of accumulated deficit. See Note 7 for further details. In March 2016, the Financial Accounting Standards Board, (“FASB”) issued Accounting Standards Update, or ASU 2016-09, Improvements to Employee Share-Based Payment Accounting Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 3. Cash and Cash Equivalents At June 30, 2017 and December 31, 2016, the Company’s cash and cash equivalents approximated their fair values. The Company currently invests its cash and cash equivalents in money market funds. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The Company follows ASC 820, Fair Value Measurements The Company’s cash and cash equivalents at June 30, 2017 consist of cash and money market funds. Money market funds are valued using quoted market prices. |
Other Accrued Liabilities
Other Accrued Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | 5. Other Accrued Liabilities At June 30, 2017, other accrued liabilities consisted of accrued expenses for interest of $345,000, expenses for services of $87,000 and payroll withholding liabilities of $65,000. The liability for accrued interest of $345,000 is related to the Convertible Notes as outlined in Note 6 and represents the interest on the Convertible Notes that is accrued but unpaid as of June 30, 2017. At December 31, 2016, other accrued liabilities consisted of accrued expenses for interest of $340,000, expenses for services of $105,000 and payroll withholding liabilities of $51,000. |
Convertible Notes and Warrants
Convertible Notes and Warrants | 6 Months Ended |
Jun. 30, 2017 | |
Text Block [Abstract] | |
Convertible Notes and Warrants | 6. Convertible Notes and Warrants On April 21, 2016, the Company entered into a securities purchase agreement to conduct a private offering, or the Convertible Note Financing, consisting of $23 million in aggregate principal amount of 9% senior convertible notes convertible into shares of common stock, or the Convertible Notes, and 263,436 warrants to purchase shares of the Company’s common stock, or the Warrants. The Convertible Notes bear interest at a rate of 9% per year, payable semiannually in arrears on November 1 and May 1 of each year commencing on November 1, 2016. The Convertible Notes mature on May 1, 2021, unless earlier redeemed or converted. The Convertible Notes are senior unsecured and unsubordinated obligations; rank equal in right of payment to the Company’s existing and future unsecured indebtedness that is not subordinated and are effectively subordinated in right of payment to the Company’s existing and future secured indebtedness. On or after December 1, 2017, the Company may redeem for cash all or a portion of the Convertible Notes if the last reported sale price of the Company’s common stock is at any time equal to or greater than 200% of the conversion price then in effect for at least twenty trading days immediately preceding the date on which the Company provides notice of redemption, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The Indenture provides for customary events of default which may result in the acceleration of the maturity of the Notes, including, but not limited to, cross acceleration to certain other indebtedness of the Company and its subsidiaries. In the case of an event of default arising from specified events of bankruptcy or insolvency or reorganization all outstanding Convertible Notes will become due and payable immediately without further action or notice. If any other event of default under the Indenture occurs or is continuing, the trustee or holders of at least 25% in aggregate principal amount of the then outstanding Convertible Notes may declare all the Convertible Notes to be due and payable immediately. The Warrants have a five-year term and are exercisable at $5.21 per share of common stock. The exercise price is subject to adjustment in the event of certain stock dividends and distributions, stock splits, stock combinations, reclassifications or similar events or upon any distributions of assets, including cash, stock or other property to the Company’s shareholders. On April 25, 2016, the initial closing of the Convertible Notes took place under which the Company raised $20 million from a total of two investors and issued 4,319 Warrants to one investor. Of the $20 million, $19.9 million was financed by Grifols, a related party to the Company, as described in Note 8 below. The fair value of the warrants issued in the second closing was $11,000 and was recorded as a component of equity and discount to the debt host. There were 3,319,820 common shares underlying the conversion feature that was bifurcated as a derivative liability due to the Conversion Share Cap. The effective interest rate of the liability component was equal to 22.9% for the three and six months ended June 30, 2017. On July 14, 2016, the second and final closing of the Convertible Notes took place under which the Company raised $3 million from a total of two investors and issued 259,117 Warrants. The fair value of the warrants issued in the second closing was $662,000 and was recorded as a component of equity and discount to the debt host. The effective interest rate of the liability component was equal to 16.24% for the three and six months ended June 30, 2017. The financing costs of $2.4 million incurred in connection with the issuance of the Convertible Notes were allocated to the derivative liability, warrants and Convertible Note components based on their relative fair values. Financing costs of $1.4 million allocated to the Convertible Note host are being amortized using the effective interest rate method and recognized as non-cash interest expense over the expected term of the Convertible Notes. For the three and six months ended June 30, 2016, financing costs of $936,000, allocated to the derivative liability and Warrant components were expensed and are included in other expense in the Consolidated Statement of Operations and Comprehensive Income/(Loss). As of June 30, 2017, the Convertible Notes consisted of the following: June 30, 2017 (in thousands, except Principal value $ 23,000 Unamortized debt discount (7,750) Unamortized debt issuance costs (1,166) Carrying value of the convertible notes $ 14,084 Conversion rate (shares of common stock per $1,000 principal amount of notes) 191.9386 Conversion price (per share of common stock) $ 5.21 For the three and six months ended June 30, 2017, the Company recognized interest expense associated with its Convertible Notes as follows: Three Months ended June 30, 2017 Six Months ended June 30, 2017 (in thousands) (in thousands) Cash Interest Expense Coupon interest expense $ 518 $ 1,040 Noncash Interest Expense Amortization of debt discount 383 750 Amortization of transaction costs 58 114 $ 959 $ 1,904 As of June 30, 2017, the unamortized debt discount will be amortized over a remaining period of approximately 3.84 years. The if converted value as of June 30, 2017 does not exceed the principal balance of the Convertible Notes. Accrued interest payable at June 30, 2017 is $345,000 and is included in other accrued liabilities. For more information on the Company’s accounting for Convertible Notes and Warrants, see Note 7 to the consolidated financial statements included in the Company’s 2016 Annual Report on Form 10-K. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2017 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 7. Revenue Recognition Adoption of ASC Topic 606, “Revenue from Contracts with Customers” On January 1, 2017, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2017. Results for reporting periods beginning after January 1, 2017 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 605. The adoption of the new revenue recognition guidance resulted in increases of $6.0 million to deferred revenue and the accumulated deficit as of January 1, 2017. For the three and six months ended June 30, 2017, revenue increased by $7.5 million and $9.1 million, respectively, for services performed in the period which under the prior milestone recognition methodology would not be recognized until the milestone was achieved. For the three and six months ended June 30, 2017, net loss decreased by $7.4 million and $9.1 million, and basic and diluted net loss per share decreased by $0.50 and $0.61 per share, respectively. The following table shows the reconciliation of Contract Liabilities from what was disclosed in the Form 10-K for the year ended December 31, 2016 and giving effect to the modified retrospective adoption of the revenue guidance at January 1, 2017 (in thousands): Deferred Revenue, balance at December 31, 2016 $ 5,000 Changes in estimated consideration - Unsatisfied performance obligations 6,026 Deferred Revenue, balance at January 1, 2017 $ 11,026 Revenue Recognition Revenues are recognized for services as they are satisfied over time, and the Company recognizes revenue for licenses of functional intellectual property at the point in time the customer has the ability to use and benefit from the license. For additional detail on the Company’s accounting policy regarding revenue recognition, refer to Note 2 above. The following table presents changes in the Company’s contract liabilities for the six months ended June 30, 2017. There were no contract assets during the same period. Balance at Period Additions Deductions Balance at End of Period (in thousands) Contract Assets $ - $ - $ - $ - Contract Liabilities: Deferred Revenue $ 11,026 $ 274 $ (9,330) $ 1,970 During the six months ended June 30, 2017, the Company recognized the following revenues as a result of changes in contract liability balances in the period (in thousands). Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period: Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods $ 4,540 Performance obligations satisfied 4,594 New activities in the period: Performance obligations satisfied 196 Total revenue $ 9,330 |
Collaboration Agreement
Collaboration Agreement | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaboration Agreement | 8. Collaboration Agreement Grifols License and Collaboration Agreement See Note 8 to the audited consolidated financial statements included in Part II, Item 8 of the 2016 Annual Report on Form 10-K for information on the Grifols Collaboration Transaction. Grifols is a 35% shareholder and, thus, a related party of the Company. Upon adoption of ASU No. 2014-09, the Company deferred $6.0 million for the portion of the transaction price allocated to development phase services delivered prior to January 1, 2017, which under the new guidance is allocated to unsatisfied (or partially satisfied) performance obligations as of January 1, 2017. As a result of adoption, an additional $7.5 million and $9.1 million of contract revenue was recognized for performance obligations satisfied during the three and six months ended June 30, 2017, respectively. Under the License Agreement, the Company is eligible to receive up to an additional $20 million in payments upon the achievement of regulatory filing and approval milestones. The Company’s performance obligations include those related to the worldwide license to commercialize products developed from the collaboration development services for Phase 3 clinical trials that were completed as of December 31, 2016, regulatory submission services for first indication, and regulatory approval services in the US and EU for first indication. In addition, the Company identified that Grifols has an option that will create manufacturing obligations for the Company upon exercise by the customer. Further, these customer options for manufacturing services were evaluated to not include a material right. Milestone payments related to regulatory submission and approval services are considered variable consideration and excluded from the transaction price as of the date of adoption and the quarter ended June 30, 2017. The Company recognizes revenue from license rights at a point in time, which is when the customer can use and benefit from the license rights. The Company recognizes revenue from its services performance obligations over time using a cost-to-cost input method. In the second quarter of 2017, the Company determined that the $5.0 million milestone payment associated with NDA submission (the first regulatory filing) is probable and updated the estimated transaction price accordingly. This was allocated to the performance obligations based upon relative estimated selling prices resulting in recognition of $4.5 million for performance obligations that had been satisfied in prior periods. The Company has deferred $1.9 million of the transaction price in the Grifols’ arrangement that is allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2017. |
Stock-Based Compensation and St
Stock-Based Compensation and Stock Options and Awards | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation and Stock Options and Awards | 9. Stock-Based Compensation and Stock Options and Awards The following table shows the stock-based compensation expense included in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) for the three and six months ended June 30, 2017 and 2016 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Costs and expenses: Research and development $ 327 $ 207 $ 633 $ 374 General and administrative 293 193 530 426 Total stock-based compensation expense $ 620 $ 400 $1,163 $ 800 There was no capitalized stock-based employee compensation cost for the three and six months ended June 30, 2017 and 2016. Since the Company did not record a tax provision during the quarters ended June 30, 2017 and 2016, there was no recognized tax benefit associated with stock-based compensation expense. In March 2016, the Company granted to the officers certain stock option bonus awards, (contingent upon shareholder approval that was received in June 2016) that vested based upon meeting certain specified company-wide performance goals. In June 2017, the Company granted to the officers additional stock awards whose vesting was also dependent upon meeting specified company-wide performance goals. These options and stock awards were granted at-the-money, contingently vest upon the achievement of performance goals, and have contractual lives of ten years. In June 2017, the Company also cancelled certain officer stock option awards made in March 2016 as the specified company-wide performance goal was not achieved. Stock Option Plans: 2005 Equity Incentive Plan (the “2005 Plan”), and 2015 Equity Incentive Plan (the “2015 Plan”) On March 13, 2015 the Board adopted and, on May 14, 2015 the Company’s shareholders approved, the 2015 Plan. The 2015 Plan replaces the Company’s 2005 Plan, which expired in March 2015. The 2015 Plan is intended to promote the Company’s long-term success and increase shareholder value by attracting, motivating, and retaining non-employee directors, officers, employees, advisors, consultants and independent contractors, and allows the flexibility to grant a variety of awards to eligible individuals, thereby strengthening their commitment to the Company’s success and aligning their interests with those of the Company’s shareholders. In April 2017, the Company’s Board of Directors amended, and in June 2017 the Company’s shareholders approved, the amendment to the 2015 Plan increasing the shares of common stock authorized for issuance by 2,500,000 shares. Stock Option Activity The following is a summary of activity under the 2005 Plan and the 2015 Plan for the six months ended June 30, 2017: Shares Available for Balance at January 1, 2017 1,510,272 Increase in authorized shares 2,500,000 Options granted (1,046,401 ) Options cancelled 179,963 Awards granted (539,100 ) Balance at June 30, 2017 2,604,734 Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Term Aggregate Value Outstanding at January 1, 2017 1,923,595 $ 6.86 Options granted 1,046,401 $ 1.73 Options cancelled (179,963 ) $ 6.82 Outstanding at June 30, 2017 2,790,033 $ 4.94 8.23 $ --- Exercisable at June 30, 2017 1,436,121 $ 5.67 7.89 $ --- No stock options were exercised during the six months ended June 30, 2017. The total amount of unrecognized compensation cost related to non-vested stock options and stock purchases, was $1.9 million as of June 30, 2017. This amount will be recognized over a weighted average period of 1.04 years. There also was $258,000 of unrecognized compensation expense related to the current ESPP offering period which is expected to be recognized through March 2019. During the quarter ended March 31, 2017 the Board approved the issuance of approximately 360,000 stock options in aggregate, which vested immediately, to the Company’s Officers in lieu of a cash bonus for their performance in 2016. The Company charged approximately $445,000 to accrued bonuses which were outstanding at December 31, 2016 related to these shares. A summary of the activity of the Company’s unvested restricted stock and performance bonus stock award activities for the six months ending June 30, 2017 is presented below representing the maximum number of shares that could be earned or vested under the 2005 Plan and the 2015 Plan: Number Shares Weighted Average Grant Date Fair Value Balance at December 31, 2016 152,238 $ 3.96 Restricted shares granted 539,100 $ 1.39 Restricted share awards vested (9,375) $ 4.04 Balance at June 30, 2017 681,963 $ 1.93 For restricted stock awards the Company recognizes compensation expense over the vesting period for the fair value of the stock award on the measurement date. As of June 30, 2017, there was approximately $455,000 of total unrecognized compensation costs, net of forfeitures, related to non-vested stock award which are expected to be recognized over a weighted average period of 0.86 years. |
Net Loss and Comprehensive Loss
Net Loss and Comprehensive Loss Per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss and Comprehensive Loss Per Common Share | 10. Net Loss and Comprehensive Loss Per Common Share The following data was used in computing net income/(loss) per share and the effect on the weighted-average number of shares of potentially dilutive common stock. Three Six Months Ended June 30 June 30 2017 2016 2017 2016 (In thousands, except per share amounts) Numerator: Net income/(loss) $ 1,035 $ (8,729) $ (2,643) $ (16,815) Denominator: Weighted average number of common shares used in basic net income/(loss) per share 14,847 14,778 14,823 14,769 Effect of dilutive securities (using treasury stock method): Common stock options and restricted stock awards and units 1 - - - Weighted average number of common shares and dilutive potential common shares used in diluted net income/(loss) per share 14,848 14,778 14,823 14,769 Basic net income/(loss) per share $ 0.07 $ (0.59) $ (0.18) $ (1.14) Diluted net income/(loss) per share $ 0.07 $ (0.59) $ (0.18) $ (1.14) The Company computes basic net loss per common share using the weighted-average number of shares of common stock outstanding during the period less the weighted-average number of shares of common stock subject to repurchase. For the three months ended June 30, 2017, there were no potentially dilutive stock options or common shares underlying warrants because the exercise prices are greater than or equal to the average market price of the common shares during the period. For the three months ended June 30, 2017, the Company excluded 4,414,588 shares underlying the Convertible Notes from the calculation of diluted net income/(loss) per share as their effect would be anti-dilutive due to the inclusion of the interest expense adjustment to net income under the as-converted method. The effects of including the incremental shares associated with options, warrants and unvested restricted stock are anti-dilutive and not included in the diluted weighted average number of shares of common stock outstanding for the six months ending June 30, 2017 and 2016 and the three months ending June 30, 2016. The Company excluded the following securities from the calculation of diluted net loss per common share for the six months ended June 30, 2017 and 2016, as their effect would be anti-dilutive (in thousands): Six months ended June 30, 2017 2016 Common shares underlying convertible notes 4,415 3,839 Outstanding stock options 2,790 1,644 Common shares underlying warrants 263 75 Unvested restricted stock 261 162 Unvested restricted stock units 10 10 |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates include useful lives for property and equipment and related depreciation calculations, accruals for clinical trial expenses, assumptions for valuing options and warrants, and income taxes. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments with maturities of three months or less at the time of purchase are classified as cash equivalents. |
Restricted Cash | Restricted Cash The Company classifies transfers to or from the restricted cash balance in the statement of cash flows based on the nature of the restriction. At June 30, 2017, the Company had no restricted cash. |
Property and Equipment | Property and Equipment The Company records property and equipment at cost and calculates depreciation using the straight-line method over the estimated useful lives of the respective assets. Machinery and equipment includes external costs incurred for validation of the equipment. The Company does not capitalize internal validation expense. Computer equipment and software includes capitalized computer software. All the Company’s capitalized software is purchased; the Company has no internally-developed computer software. Leasehold improvements are amortized over the shorter of the term of the lease or useful life of the improvement. |
Convertible Instruments | Convertible Instruments The Company accounts for hybrid contracts that feature conversion options in accordance with generally accepted accounting principles in the United States. ASC 815, Derivatives and Hedging Activities, or ASC 815, requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The Company accounts for convertible instruments (when it has determined that the embedded conversion options should be bifurcated from their host instruments) in accordance with ASC 815. Under ASC 815, a portion of the proceeds received upon the issuance of the hybrid contract is allocated to the fair value of the derivative. The derivative is subsequently marked to market at each reporting date based on current fair value, with the changes in fair value reported in results of operations. |
Warrants Issued in Connection with Financings | Warrants Issued in Connection with Financings The Company generally accounts for warrants issued in connection with financings as a component of equity, unless there is a possibility that the Company may have to settle the warrants in cash. For warrants issued with the deemed possibility of a cash settlement, the Company records the fair value of the issued warrants as a liability at each reporting date and records changes in the estimated fair value as a non-cash gain or loss in the condensed consolidated statements of operations. The fair values of warrants have been determined using the Black Scholes Merton Option Pricing valuation model, or the Black-Scholes Model. The Black-Scholes Model provides for assumptions regarding volatility, call and put features and risk-free interest rates within the total period to maturity. These values are subject to a significant degree of judgment on the part of the Company. |
Accounting for Costs Associated with Exit or Disposal Activities | Accounting for Costs Associated with Exit or Disposal Activities The Company recognizes a liability for the cost associated with an exit or disposal activity that is measured initially at its fair value in the period in which the liability is incurred. Costs to terminate an operating lease or other contracts are (a) costs to terminate the contract before the end of its term or (b) costs that will continue to be incurred under the contract for its remaining term without economic benefit to the entity. In periods subsequent to initial measurement, changes to the liability are measured using the credit-adjusted risk-free rate that was used to measure the liability initially. |
Revenue Recognition | Revenue Recognition Beginning January 1, 2017, the Company has followed the provisions of ASC Topic 606, Revenue from Contracts with Customers The Company’s contract revenues consist of revenues from grants, collaboration agreements and feasibility studies. License and collaboration revenue is primarily generated through agreements with strategic partners for the development and commercialization of our product candidates. The terms of the agreement typically include non-refundable upfront fees, funding of research and development activities, payments based upon achievement of milestones and royalties on net product sales. The Company has both fixed and variable consideration. Non-refundable upfront fees and funding of research and development activities are considered fixed, while milestone payments are identified as variable consideration. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC Topic 606. The Company’s performance obligations include license rights, development services, and services associated with regulatory submission and approval processes. Significant management judgment is required to determine the level of effort required under an arrangement and the period over which the Company expects to complete its performance obligations under the arrangement. If the Company cannot reasonably estimate when its performance obligations either are completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company uses key assumptions to determine the stand-alone selling price, which may include forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success. The Company allocates the total transaction price to each performance obligation based on the estimated relative standalone selling prices of the promised goods or service underlying each performance obligation. Estimated selling prices for license rights are calculated using an income approach model and include the following key assumptions: the development timeline, revenue forecast, commercialization expenses, discount rate and probabilities of technical and regulatory success. To estimate selling prices for development services, regulatory submission services, and product supply, the Company uses a cost plus margin approach. Licenses of intellectual property: Milestone payments Royalties: The Company has optional additional items in contracts, which are considered marketing offers and are accounted for as separate contracts when the customer elects such options. Arrangements that include a promise for future supply of drug substance or drug product for either clinical development or commercial supply at the customer’s discretion are generally considered as options. The Company assesses if these options provide a material right to the licensee and if so, they are accounted for as separate performance obligations. If the Company is entitled to additional payments when the customer exercises these options, any additional payments are recorded in license, collaboration and other revenues when the customer obtains control of the goods, which is upon delivery. |
Research and Development | Research and Development Research and development expenses consist of costs incurred for company-sponsored, collaborative and contracted research and development activities. These costs include direct and research-related overhead expenses. Research and development expenses that are reimbursed under collaborative and government grants approximate the revenue recognized under such agreements. The Company expenses research and development costs as such costs are incurred. The Company is eligible under the AusIndustry research and development tax incentive program to obtain a cash amount from the Australian Taxation Office. The tax incentive is available to the Company on the basis of specific criteria with which the Company must comply. Specifically, the Company must have revenue of less than AUD $20.0 million and cannot be controlled by income tax exempt entities. These research and development tax incentives are recognized as contra research and development expense when the right to receive has been attained and funds are considered to be collectible. The tax incentive is denominated in Australian dollars and, therefore, the related receivable is re-measured into U.S. dollars as of each reporting date. The Company recognizes the funds related to its Australian research and development tax incentives that are not subject to refund provisions as a reduction of research and development expense. The amounts are determined on a cost reimbursement basis and the incentive is related to the Company’s research and development expenditures and is refundable regardless of whether any Australian tax is owed. These Australian research and development tax incentives are recognized when there is reasonable assurance that the incentive will be received, the relevant expenditure has been incurred and the amount of the consideration can be reliably measured. During the three and six months ended June 30, 2017, the Company offset its research and development costs by $0.9 million through the recognition of tax incentive credits. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for share-based payment arrangements in accordance with ASC 718, Compensation-Stock Compensation Equity-Equity Based Payments to Non-Employees |
Income Taxes | Income Taxes The Company makes certain estimates and judgments in determining income tax expense for consolidated financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. As part of the process of preparing the financial statements, the Company is required to estimate income taxes in each of the jurisdictions in which it operates. This process involves the Company estimating its current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities which are included in the Company’s condensed consolidated balance sheets. The Company assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers all available evidence, both positive and negative, including the historical levels of income and losses, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance. If the Company does not consider it more likely than not that it will recover its deferred tax assets, the Company records a valuation allowance against the deferred tax assets that it estimates will not ultimately be recoverable. At June 30, 2017, and December 31, 2016 the Company believed that the amount of its deferred income taxes would not be ultimately recovered. Accordingly, the Company recorded a full valuation allowance for deferred tax assets. However, should there be a change in the Company’s ability to recover its deferred tax assets the Company would recognize a benefit to its tax provision in the period in which it determines that it is more likely than not that it will recover its deferred tax assets. |
Net Income/(Loss) Per Common Share | Net Income/(Loss) Per Common Share Basic net income/(loss) per common share is computed using the weighted-average number of shares of common stock outstanding during the period less the weighted-average number of restricted shares of common stock subject to repurchase. Diluted net income/(loss) per common share is based on the weighted average number of common and common equivalent shares, such as stock options and unvested restricted stock shares outstanding during the period. Potentially dilutive securities were included for the three months ended June 30, 2017 but were excluded in the other periods presented, because such inclusion of shares would have been anti-dilutive. |
Accounting Changes | Accounting Changes In May 2014, the Financial Accounting Standards Board issued ASU No. 2014-09, Revenue from Contracts with Customers Effective January 1, 2017, the Company elected to early adopt the requirements of Topic 606 using the modified retrospective method, applying the new guidance to the most current period presented with the cumulative effect of changes reflected in the opening balance of accumulated deficit. See Note 7 for further details. In March 2016, the Financial Accounting Standards Board, (“FASB”) issued Accounting Standards Update, or ASU 2016-09, Improvements to Employee Share-Based Payment Accounting |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) |
Convertible Notes and Warrants
Convertible Notes and Warrants (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Text Block [Abstract] | |
Summary of Convertible Notes | As of June 30, 2017, the Convertible Notes consisted of the following: June 30, 2017 (in thousands, except Principal value $ 23,000 Unamortized debt discount (7,750) Unamortized debt issuance costs (1,166) Carrying value of the convertible notes $ 14,084 Conversion rate (shares of common stock per $1,000 principal amount of notes) 191.9386 Conversion price (per share of common stock) $ 5.21 |
Summary of Interest Expense Associated with Convertible Notes | For the three and six months ended June 30, 2017, the Company recognized interest expense associated with its Convertible Notes as follows: Three Months ended June 30, 2017 Six Months ended June 30, 2017 (in thousands) (in thousands) Cash Interest Expense Coupon interest expense $ 518 $ 1,040 Noncash Interest Expense Amortization of debt discount 383 750 Amortization of transaction costs 58 114 $ 959 $ 1,904 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Reconciliation of Contract Liabilities | The following table shows the reconciliation of Contract Liabilities from what was disclosed in the Form 10-K for the year ended December 31, 2016 and giving effect to the modified retrospective adoption of the revenue guidance at January 1, 2017 (in thousands): Deferred Revenue, balance at December 31, 2016 $ 5,000 Changes in estimated consideration - Unsatisfied performance obligations 6,026 Deferred Revenue, balance at January 1, 2017 $ 11,026 |
Summary of Changes in Contract Liabilities | The following table presents changes in the Company’s contract liabilities for the six months ended June 30, 2017. There were no contract assets during the same period. Balance at Period Additions Deductions Balance at End of Period (in thousands) Contract Assets $ - $ - $ - $ - Contract Liabilities: Deferred Revenue $ 11,026 $ 274 $ (9,330) $ 1,970 |
Summary of Revenue Resulting from Changes in Contractual Liability | During the six months ended June 30, 2017, the Company recognized the following revenues as a result of changes in contract liability balances in the period (in thousands). Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period: Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods $ 4,540 Performance obligations satisfied 4,594 New activities in the period: Performance obligations satisfied 196 Total revenue $ 9,330 |
Stock-Based Compensation and 19
Stock-Based Compensation and Stock Options and Awards (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table shows the stock-based compensation expense included in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) for the three and six months ended June 30, 2017 and 2016 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Costs and expenses: Research and development $ 327 $ 207 $ 633 $ 374 General and administrative 293 193 530 426 Total stock-based compensation expense $ 620 $ 400 $1,163 $ 800 |
Schedule of Activity Under Stock Option Plan | The following is a summary of activity under the 2005 Plan and the 2015 Plan for the six months ended June 30, 2017: Shares Available for Balance at January 1, 2017 1,510,272 Increase in authorized shares 2,500,000 Options granted (1,046,401 ) Options cancelled 179,963 Awards granted (539,100 ) Balance at June 30, 2017 2,604,734 Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Term Aggregate Value Outstanding at January 1, 2017 1,923,595 $ 6.86 Options granted 1,046,401 $ 1.73 Options cancelled (179,963 ) $ 6.82 Outstanding at June 30, 2017 2,790,033 $ 4.94 8.23 $ --- Exercisable at June 30, 2017 1,436,121 $ 5.67 7.89 $ --- |
Schedule of Unvested Restricted Stock Award Activities | A summary of the activity of the Company’s unvested restricted stock and performance bonus stock award activities for the six months ending June 30, 2017 is presented below representing the maximum number of shares that could be earned or vested under the 2005 Plan and the 2015 Plan: Number Shares Weighted Average Grant Date Fair Value Balance at December 31, 2016 152,238 $ 3.96 Restricted shares granted 539,100 $ 1.39 Restricted share awards vested (9,375) $ 4.04 Balance at June 30, 2017 681,963 $ 1.93 |
Net Loss and Comprehensive Lo20
Net Loss and Comprehensive Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Computing Net Income/(Loss) Per Share and Effect on Weighted-Average Number of Shares of Potentially Dilutive Common Stock | The following data was used in computing net income/(loss) per share and the effect on the weighted-average number of shares of potentially dilutive common stock. Three Six Months Ended June 30 June 30 2017 2016 2017 2016 (In thousands, except per share amounts) Numerator: Net income/(loss) $ 1,035 $ (8,729) $ (2,643) $ (16,815) Denominator: Weighted average number of common shares used in basic net income/(loss) per share 14,847 14,778 14,823 14,769 Effect of dilutive securities (using treasury stock method): Common stock options and restricted stock awards and units 1 - - - Weighted average number of common shares and dilutive potential common shares used in diluted net income/(loss) per share 14,848 14,778 14,823 14,769 Basic net income/(loss) per share $ 0.07 $ (0.59) $ (0.18) $ (1.14) Diluted net income/(loss) per share $ 0.07 $ (0.59) $ (0.18) $ (1.14) |
Schedule of Securities Excluded from Calculation of Diluted Net Loss per Common Share | The Company excluded the following securities from the calculation of diluted net loss per common share for the six months ended June 30, 2017 and 2016, as their effect would be anti-dilutive (in thousands): Six months ended June 30, 2017 2016 Common shares underlying convertible notes 4,415 3,839 Outstanding stock options 2,790 1,644 Common shares underlying warrants 263 75 Unvested restricted stock 261 162 Unvested restricted stock units 10 10 |
Organization, Basis of Presen21
Organization, Basis of Presentation and Liquidity - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Segment | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Summary Of Organization And Operations [Line Items] | ||||||
Number of operating segment | Segment | 1 | |||||
Accumulated deficit | $ (447,108) | $ (447,108) | $ (438,419) | |||
Working capital | 7,800 | 7,800 | ||||
Shareholders' deficit | (6,018) | (6,018) | 987 | |||
Cash and cash equivalents | 12,028 | $ 31,213 | 12,028 | $ 31,213 | 22,591 | $ 31,462 |
Net loss | 1,035 | $ (8,729) | (2,643) | $ (16,815) | ||
Current assets | 12,989 | 12,989 | 24,801 | |||
Current liabilities | 5,150 | 5,150 | $ 5,848 | |||
Current assets excess over current liabilities | 7,800 | $ 7,800 | ||||
Existence of substantial doubt about going concern, within one year | false | |||||
Grifols [Member] | ||||||
Summary Of Organization And Operations [Line Items] | ||||||
Milestone payment to be received | $ 5,000 | $ 5,000 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2017AUD | |
Income Tax Expense Benefit [Line Items] | |||
Amount of research and development cost offset through the recognition of tax incentive credits | $ 900,000 | $ 900,000 | |
Accounting Standards Update 2016-09 [Member] | |||
Income Tax Expense Benefit [Line Items] | |||
Cumulative effect on retained earning net of tax due to accounting changes | $ 22,000 | $ 22,000 | |
Australian Taxation Office [Member] | |||
Income Tax Expense Benefit [Line Items] | |||
Maximum amount of revenue subject to eligible tax incentive under AusIndustry research and development program | AUD | AUD 20,000,000 |
Other Accrued Liabilities - Add
Other Accrued Liabilities - Additional Information (Detail) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Other Accrued Liabilities [Line Items] | ||
Accrued expenses for interest | $ 345,000 | |
Accrued payroll withholding liabilities | 1,149,000 | $ 1,335,000 |
Other Accrued Liabilities [Member] | ||
Other Accrued Liabilities [Line Items] | ||
Accrued expenses for services | 87,000 | 105,000 |
Accrued payroll withholding liabilities | 65,000 | 51,000 |
Convertible Debt [Member] | Other Accrued Liabilities [Member] | ||
Other Accrued Liabilities [Line Items] | ||
Accrued expenses for interest | $ 345,000 | $ 340,000 |
Convertible Notes and Warrant24
Convertible Notes and Warrants - Additional Information (Detail) | Dec. 01, 2017$ / shares | Jul. 14, 2016USD ($)Investorshares | Apr. 25, 2016USD ($)Investorshares | Apr. 21, 2016USD ($)shares | Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 23,000,000 | $ 23,000,000 | |||||
Proceeds from related party convertible debt | $ 20,000,000 | ||||||
Amortization of financing cost | 58,000 | 114,000 | |||||
Financing costs, derivative liability and warrant | $ 936,000 | ||||||
Accrued interest payable | $ 345,000 | $ 345,000 | |||||
Second and Final Closing [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of the warrants issued | $ 662,000 | $ 11,000 | |||||
Class of warrants or rights, issued | shares | 259,117 | ||||||
Effective interest rate on liability component | 16.24% | 16.24% | |||||
Class of Warrant Issued April 22, 2016 [Member] | Initial Closing [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Amount funded by number of investors | Investor | 2 | ||||||
Class of warrants or rights, issued | shares | 4,319 | ||||||
Class of Warrant Issued April 22, 2016 [Member] | Second and Final Closing [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Amount funded by number of investors | Investor | 2 | ||||||
Convertible Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Financing cost | $ 2,400,000 | $ 2,400,000 | |||||
Amortization of financing cost | 1,400,000 | ||||||
Financing costs, derivative liability and warrant | $ 936,000 | $ 936,000 | |||||
Senior Convertible Notes Due 2021 [Member] | Convertible Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized debt discount remaining amortization period | 3 years 10 months 3 days | ||||||
Senior Convertible Notes Due 2021 [Member] | Convertible Debt [Member] | Initial Closing [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of convertible debt | $ 20,000,000 | ||||||
Number of common shares convertible to derivative liability due to Conversion Share Cap | shares | 3,319,820 | ||||||
Effective interest rate on liability component | 22.90% | 22.90% | |||||
Senior Convertible Notes Due 2021 [Member] | Convertible Debt [Member] | Second and Final Closing [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of convertible debt | $ 3,000,000 | ||||||
Senior Convertible Notes Due 2021 [Member] | Convertible Debt [Member] | Grifols [Member] | Initial Closing [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from related party convertible debt | $ 19,900,000 | ||||||
Private Placement [Member] | Class of Warrant Issued April 22, 2016 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of shares into which the class of warrant may be converted | shares | 263,436 | ||||||
Private Placement [Member] | Senior Convertible Notes Due 2021 [Member] | Convertible Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 23,000,000 | ||||||
Maturity date | May 1, 2021 | ||||||
Notes bear interest rate | 9.00% | ||||||
Frequency of periodic payment of interest | Payable semiannually in arrears on November 1 and May 1 of each year commencing on November 1, 2016. | ||||||
Scenario, Forecast [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of trading days for effectiveness preceding issuance of redemption notice | 20 days | ||||||
Redeemable portion of notes equal to percentage of principal amount of notes | 100.00% | ||||||
Scenario, Forecast [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Redeemable portion of notes equal to or greater than percentage of sale price of common stock | 200.00% | ||||||
Scenario, Forecast [Member] | Class of Warrant Issued April 22, 2016 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Warrants term | 5 years | ||||||
Warrants, exercise price | $ / shares | $ 5.21 | ||||||
Scenario, Forecast [Member] | Senior Convertible Notes Due 2021 [Member] | Convertible Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of principal amount of outstanding debt held by trustee or holders, in which they may declare debt to be due and payable immediately in event of default | 25.00% |
Convertible Notes and Warrant25
Convertible Notes and Warrants - Summary of Convertible Notes (Detail) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Convertible Debt [Abstract] | |
Principal value | $ 23,000 |
Unamortized debt discount | (7,750) |
Unamortized debt issuance costs | (1,166) |
Carrying value of the convertible notes | $ 14,084 |
Conversion rate (shares of common stock per $1,000 principal amount of notes) | shares | 191.9386 |
Conversion price (per share of common stock) | $ / shares | $ 5.21 |
Convertible Notes and Warrant26
Convertible Notes and Warrants - Summary of Convertible Notes (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Convertible Debt [Abstract] | |
Debt conversion, initial conversion ratio, denominator | $ 1,000 |
Convertible Notes and Warrant27
Convertible Notes and Warrants - Summary of Interest Expense Associated with Convertible Notes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Interest Expense [Abstract] | ||
Coupon interest expense | $ 518 | $ 1,040 |
Noncash Interest Expense | ||
Amortization of debt discount | 383 | 750 |
Amortization of transaction costs | 58 | 114 |
Interest expense | $ 959 | $ 1,904 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - Accounting Standards Update 2014-09 [Member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Revenue Recognition [Line Items] | |||
Increase in accumulated deficit | $ 6 | ||
Increase in deferred revenue | $ 6 | ||
Increase in revenue for services performed | $ 7.5 | $ 9.1 | |
Decrease in net loss | $ 7.4 | $ 9.1 | |
Decrease in basic net loss per share | $ 0.50 | $ 0.61 | |
Decrease in diluted net loss per share | $ 0.50 | $ 0.61 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Reconciliation of Contract Assets and Contract Liabilities (Detail) - USD ($) $ in Thousands | Jan. 01, 2017 | Jun. 30, 2017 |
Deferred Revenue Disclosure [Abstract] | ||
Deferred Revenue, beginning balance | $ 5,000 | $ 5,000 |
Changes in estimated consideration | 0 | |
Unsatisfied performance obligations | 6,026 | $ 274 |
Deferred Revenue, ending balance | $ 11,026 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Changes in Contract Liabilities (Detail) - USD ($) $ in Thousands | Jan. 01, 2017 | Jun. 30, 2017 |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Contract Assets, beginning balance | $ 0 | $ 0 |
Contract assets, additions | 0 | |
Contract assets, deductions | 0 | |
Contract Assets, ending balance | 0 | |
Contract liabilities: deferred revenue, beginning balance | 11,026 | 11,026 |
Contract liabilities: deferred revenue, additions | $ 6,026 | 274 |
Contract liabilities: deferred revenue, deductions | (9,330) | |
Contract liabilities: deferred revenue, ending balance | $ 1,970 |
Revenue Recognition - Summary31
Revenue Recognition - Summary of Revenue Resulting from Changes in Contractual Liability (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Revenue recognized in the period from: | ||
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods | $ 4,540 | |
Performance obligations satisfied | $ 4,500 | 4,594 |
New activities in the period: | ||
Performance obligations satisfied | 196 | |
Total revenue | $ 9,330 |
Collaboration Agreement - Grifo
Collaboration Agreement - Grifols License and Collaboration Agreement - Additional Information (Detail) - USD ($) | Jan. 01, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Contract revenue recognized | $ 6,026,000 | $ 274,000 | ||
Additional deferred revenue | 9,330,000 | |||
Performance obligation satisfied | $ 4,500,000 | 4,594,000 | ||
Unsatisfied performance obligations | 11,026,000 | $ 5,000,000 | ||
Accounting Standards Update 2014-09 [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Contract revenue recognized | $ 6,000,000 | |||
Additional deferred revenue | 7,500,000 | $ 9,100,000 | ||
Grifols [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Percentage of equity held by related party | 35.00% | |||
Milestone payment to be earned | 5,000,000 | $ 5,000,000 | ||
Unsatisfied performance obligations | 1,900,000 | 1,900,000 | ||
Maximum [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Additional payments receivable upon the achievement of regulatory filing and approval milestones | $ 20,000,000 | $ 20,000,000 |
Stock-Based Compensation and 33
Stock-Based Compensation and Stock Options and Awards - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Costs and Expenses | ||||
Total stock-based compensation expense | $ 620 | $ 400 | $ 1,163 | $ 800 |
Research and Development [Member] | ||||
Costs and Expenses | ||||
Total stock-based compensation expense | 327 | 207 | 633 | 374 |
General and Administrative [Member] | ||||
Costs and Expenses | ||||
Total stock-based compensation expense | $ 293 | $ 193 | $ 530 | $ 426 |
Stock-Based Compensation and 34
Stock-Based Compensation and Stock Options and Awards - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Capitalized stock-based employee compensation cost | $ 0 | $ 0 | $ 0 | $ 0 | |
Tax benefit associated with stock-based compensation expense | 0 | $ 0 | |||
Vesting period | 10 years | ||||
2005 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Plan expiration date | 2015-03 | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average period over which unrecognized compensation costs expected to be recognized | 10 months 10 days | ||||
Unrecognized compensation expense | 455,000 | $ 455,000 | |||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Increasing in shares of common stock authorized for issuance | 2,500,000 | ||||
Stock options exercised during the period | 0 | ||||
Options granted | 1,046,401 | ||||
Unvested Stock Options and Stock Purchases [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to unvested stock options and stock purchases | 1,900,000 | $ 1,900,000 | |||
Weighted average period over which unrecognized compensation costs expected to be recognized | 1 year 15 days | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense | $ 258,000 | $ 258,000 | |||
Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted | 360,000 | ||||
Officer [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Accrued bonuses outstanding | $ 445,000 |
Stock-Based Compensation and 35
Stock-Based Compensation and Stock Options and Awards - Schedule of Activity Under Stock Option Plan - Shares Available for Future Grant (Detail) - Stock Options [Member] | 6 Months Ended |
Jun. 30, 2017shares | |
Shares Available for Future Grant | |
Balance at January 1, 2017 | 1,510,272 |
Increase in authorized shares | 2,500,000 |
Options granted | (1,046,401) |
Options cancelled | 179,963 |
Awards granted | (539,100) |
Balance at June 30, 2017 | 2,604,734 |
Stock-Based Compensation and 36
Stock-Based Compensation and Stock Options and Awards - Schedule of Activity Under Stock Option Plan - Options Outstanding (Detail) - Stock Options [Member] | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding at January 1, 2017 | shares | 1,923,595 |
Options granted | shares | 1,046,401 |
Options cancelled | shares | (179,963) |
Outstanding at June 30, 2017 | shares | 2,790,033 |
Exercisable at June 30, 2017 | shares | 1,436,121 |
Weighted Average Exercise Price | |
Outstanding at January 1, 2017 | $ / shares | $ 6.86 |
Options granted | $ / shares | 1.73 |
Options cancelled | $ / shares | 6.82 |
Outstanding at June 30, 2017 | $ / shares | 4.94 |
Exercisable at June 30, 2017 | $ / shares | $ 5.67 |
Weighted Average Remaining Contractual Term | |
Outstanding at June 30, 2017 | 8 years 2 months 23 days |
Exercisable at June 30, 2017 | 7 years 10 months 21 days |
Aggregate Intrinsic Value | |
Outstanding at June 30, 2017 | $ | $ 0 |
Exercisable at June 30, 2017 | $ | $ 0 |
Stock-Based Compensation and 37
Stock-Based Compensation and Stock Options and Awards - Schedule of Unvested Restricted Stock Award Activities (Detail) - Restricted Stock [Member] | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Number of Shares | |
Balance at December 31, 2016 | shares | 152,238 |
Restricted shares granted | shares | 539,100 |
Restricted share awards vested | shares | (9,375) |
Balance at June 30, 2017 | shares | 681,963 |
Weighted Average Grant Date Fair Value | |
Balance at December 31, 2016 | $ / shares | $ 3.96 |
Weighted Average Grant Date Fair Value, granted | $ / shares | 1.39 |
Weighted Average Grant Date Fair Value, vested | $ / shares | 4.04 |
Balance at June 30, 2017 | $ / shares | $ 1.93 |
Net Loss and Comprehensive Lo38
Net Loss and Comprehensive Loss Per Common Share - Schedule of Computing Net Income/(Loss) Per Share and Effect on Weighted-Average Number of Shares of Potentially Dilutive Common Stock (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator: | ||||
Net income/(loss) | $ 1,035 | $ (8,729) | $ (2,643) | $ (16,815) |
Denominator: | ||||
Weighted average number of common shares used in basic net income/(loss) per share | 14,847 | 14,778 | 14,823 | 14,769 |
Effect of dilutive securities (using treasury stock method): | ||||
Common stock options and restricted stock awards and units | 1 | |||
Weighted average number of common shares and dilutive potential common shares used in diluted net income/(loss) per share | 14,848 | 14,778 | 14,823 | 14,769 |
Basic net income/(loss) per share | $ 0.07 | $ (0.59) | $ (0.18) | $ (1.14) |
Diluted net income/(loss) per share | $ 0.07 | $ (0.59) | $ (0.18) | $ (1.14) |
Net Loss and Comprehensive Lo39
Net Loss and Comprehensive Loss Per Common Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Warrants Liability [Member] | |||
Earnings Per Share [Line Items] | |||
Shares excluded from calculation of diluted net income/ (loss) per share | 0 | ||
Common Shares Underlying Convertible Notes [Member] | |||
Earnings Per Share [Line Items] | |||
Shares excluded from calculation of diluted net income/ (loss) per share | 4,414,588 | 4,415,000 | 3,839,000 |
Net Loss and Comprehensive Lo40
Net Loss and Comprehensive Loss Per Common Share - Schedule of Securities Excluded from Calculation of Diluted Net Loss per Common Share (Detail) - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Common Shares Underlying Convertible Notes [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dilutive securities outstanding | 4,414,588 | 4,415,000 | 3,839,000 |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dilutive securities outstanding | 2,790,000 | 1,644,000 | |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dilutive securities outstanding | 261,000 | 162,000 | |
Unvested Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dilutive securities outstanding | 10,000 | 10,000 | |
Common Shares Underlying Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dilutive securities outstanding | 263,000 | 75,000 |