Aradigm (ARDMQ) 10-Q 3 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 26, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
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		15,148,138

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 12,594	$ 22,591
Restricted cash	0	1,006
Receivables	363	167
Prepaid and other current assets	630	1,037
Total current assets	13,587	24,801
Property and equipment, net	280	253
Other assets	92
Total assets	13,959	25,054
Current liabilities:
Accounts payable	980	711
Accrued clinical and cost of other studies	311	3,306
Accrued compensation	1,745	1,335
Deferred revenue - related party, current	3,874
Deferred revenue - other	155
Other accrued liabilities	1,155	496
Total current liabilities	8,220	5,848
Deferred rent	21
Deferred revenue - related party, non-current	349	5,000
Convertible debt - non-current, net of discount	2,339	2,212
Convertible debt - related party, non-current, net of discount	12,198	11,007
Total liabilities	23,127	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 September 30, 2017 and December 31, 2016; issued and outstanding shares: 15,112,078 at September 30, 2017; 14,951,089 at December 31, 2016	441,826	439,406
Accumulated deficit	(450,994)	(438,419)
Total shareholders' equity (deficit)	(9,168)	987
Total liabilities and shareholders' equity (deficit)	$ 13,959	$ 25,054

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 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 Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Contract revenue - related party	$ 2,709	$ 40	$ 11,804	$ 40
Contract revenue	6		241
Grant revenue	13	10	51	30
Total revenue	2,728	50	12,096	70
Operating expenses:
Research and development	3,543	5,836	10,111	18,522
General and administrative	2,133	1,460	5,722	4,489
Restructuring and asset impairment				2
Total operating expenses	5,676	7,296	15,833	23,013
Loss from operations	(2,948)	(7,246)	(3,737)	(22,943)
Interest income	23	34	73	70
Interest expense	(970)	(898)	(2,882)	(1,475)
Other income (expense)	9	(76)	17	(653)
Net loss and comprehensive loss	$ (3,886)	$ (8,186)	$ (6,529)	$ (25,001)
Basic and diluted net loss per common share	$ (0.26)	$ (0.55)	$ (0.44)	$ (1.69)
Shares used in computing basic and diluted net loss per common share	14,860	14,782	14,836	14,774

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net loss	$ (6,529,000)	$ (25,001,000)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	85,000	90,000
Stock-based compensation expense	1,899,000	1,185,000
Amortization of convertible debt discount	1,318,000	643,000
Financing costs, derivative liability and warrants		997,000
Change in value of derivative liability		(386,000)
Changes in operating assets and liabilities:
Receivables	(196,000)	110,000
Prepaid and other current assets	407,000	2,196,000
Other assets	(92,000)	81,000
Accounts payable	269,000	(1,011,000)
Accrued compensation	854,000	184,000
Current deferred revenue - related party	(6,647,000)
Accrued liabilities	(2,336,000)	(693,000)
Deferred rent	21,000	(37,000)
Facility lease exit obligation		(104,000)
Net cash used in operating activities	(10,947,000)	(21,746,000)
Cash flows from investing activities:
Transfer to/from restricted cash	1,006,000	(2,016,000)
Capital expenditures	(112,000)	(69,000)
Net cash provided by (used in) investing activities	894,000	(2,085,000)
Cash flows from financing activities:
Proceeds from issuance of convertible debt		3,050,000
Proceeds from issuance of convertible debt - related party		19,950,000
Proceeds from issuance of common stock	56,000	60,000
Payments for debt issuance costs		(2,192,000)
Net cash provided by financing activities	56,000	20,868,000
Net decrease in cash and cash equivalents	(9,997,000)	(2,963,000)
Cash and cash equivalents at beginning of period	22,591,000	31,462,000
Cash and cash equivalents at end of period	12,594,000	28,499,000
Supplemental disclosure of non-cash financing activities:
Reclassification of derivative liability to equity		8,362,000
Reclassification of warrants to equity		11,000
Debt discount from warrants		662,000
Accrued financing costs		$ 221,000
Supplemental disclosure of non-cash activities:
Cumulative effect of adoption of new accounting standards	6,046,000
Stock issued in payment of officer bonus	$ 444,000

Organization, Basis of Presenta

Organization, Basis of Presentation and Liquidity	9 Months Ended
	Sep. 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 S-X. 10-K 10-K”). 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) 10-Q 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 September 30, 2017, the Company had an accumulated deficit of $451.0 million that includes a net loss of $6.5 million, working capital of $5.4 million and shareholders’ deficit of $9.2 million. The Company’s current assets of $13.6 million exceed current liabilities of $8.2 million by $5.4 million. The Company believes that its cash and cash equivalents of approximately $12.6 million as of September 30, 2017 will be sufficient to fund its operations at least through 2017. 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 or early in 2018, 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. The factors discussed above raise doubt about the Company’s ability to continue as a going concern. As stated above, the Company believes that its cash and cash equivalents of approximately $12.6 million as of September 30, 2017 are sufficient to fund its operations at least through 2017. 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	9 Months Ended
	Sep. 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 operating 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 September 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 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 from 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 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 Non-refundable 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 As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price of 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: non-refundable, up-front non-refundable, up-front 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 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 nine months ended September 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 505-50, 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 September 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. Potentially dilutive securities were not included in the net loss per common share calculation for the three and nine months ended September 30, 2017 and 2016 because the inclusion of such shares would have had an anti-dilutive effect. Accounting Changes In May 2014, the Financial Accounting Standards Board (“FASB”) 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 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	9 Months Ended
	Sep. 30, 2017
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents	3. Cash and Cash Equivalents At September 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	9 Months Ended
	Sep. 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 September 30, 2017, consist of cash and money market funds. Money market funds are valued using quoted market prices.

Other Accrued Liabilities

Other Accrued Liabilities	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Other Accrued Liabilities	5. Other Accrued Liabilities At September 30, 2017, other accrued liabilities consisted of accrued expenses for interest of $863,000, expenses for services of $178,000 and payroll withholding liabilities of $114,000. The liability for accrued interest of $863,000 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 September 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	9 Months Ended
	Sep. 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 the 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 first 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 nine months ended September 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 nine months ended September 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 As of September 30, 2017, the Convertible Notes consisted of the following: September 30, 2017 (in thousands, except Principal value $ 23,000 Unamortized debt discount (7,357 ) Unamortized debt issuance costs (1,106 ) Carrying value of the convertible notes $ 14,537 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 nine months ended September 30, 2017, the Company recognized interest expense associated with its Convertible Notes as follows: Three Months ended Nine Months ended (in thousands) (in thousands) Cash Interest Expense Coupon interest expense $ 517 $ 1,557 Noncash Interest Expense Amortization of debt discount 393 1,143 Amortization of transaction costs 60 174 $ 970 $ 2,874 As of September 30, 2017, the unamortized debt discount will be amortized over a remaining period of approximately 3.59 years. The if-converted 10-K.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 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 historical accounting under Topic 605. The adoption of the new revenue recognition guidance resulted in increases of $6.0 million in deferred revenue and the accumulated deficit as of January 1, 2017. For the three and nine months ended September 30, 2017, revenue increased by $2.6 million and $11.7 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 nine months ended September 30, 2017, net loss decreased by $2.6 million and $11.7 million, and basic and diluted net loss per share decreased by $0.18 and $0.79 per share, respectively. The following table shows the reconciliation of contract liabilities from what was disclosed in the Form 10-K 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 can 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 assets and liabilities for the nine months ended September 30, 2017. Balance at Additions Deductions Balance at End (in thousands) Contract Assets $ — $ 13 $ — $ 13 Contract Liabilities: Deferred Revenue $ 11,026 $ 5,356 $ (12,004 ) $ 4,378 During the nine months ended September 30, 2017, the Company recognized the following revenues (in thousands). Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period: Performance obligations satisfied $ 7,083 Changes in the period: Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods 4,521 Performance obligations satisfied from new activities in the period - contract revenue 441 Performance obligations satisfied from new activities in the period - grant revenue 51 Total revenue $ 12,096

Collaboration Agreement

Collaboration Agreement	9 Months Ended
	Sep. 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 Upon adoption of ASU No. 2014-09, 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 the first indication that were complete as of September 30, 2017, and regulatory approval services in the US and EU for the 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 and do not include a material right. Milestone payments related to regulatory approval services are considered variable consideration and excluded from the transaction price as of the date of adoption. 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. The milestone payment 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. Milestone payments related to regulatory approval services have been excluded from the transaction price for the quarter ended September 30, 2017. The Company recognizes revenue from license rights 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 The Company has deferred $4.2 million of the transaction price in the Grifols’ arrangement that is allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2017.

Stock-Based Compensation and St

Stock-Based Compensation and Stock Options and Awards	9 Months Ended
	Sep. 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 nine months ended September 30, 2017 and 2016 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Costs and expenses: Research and development $ 368 $ 190 $ 1,001 $ 564 General and administrative 368 196 898 621 Total stock-based compensation expense $ 736 $ 386 $ 1,899 $ 1,185 There was no capitalized stock-based employee compensation cost for the three and nine months ended September 30, 2017, and 2016. Since the Company did not record a tax provision during the quarters ended September 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, 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 Stock Option Activity The following is a summary of activity under the 2005 Plan and the 2015 Plan for the nine months ended September 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 canceled 179,963 Awards granted (539,100 ) Balance at September 30, 2017 2,604,734 Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Aggregate Outstanding at January 1, 2017 1,923,595 $ 6.86 Options granted 1,046,401 $ 1.73 Options canceled (179,963 ) $ 6.82 Outstanding at September 30, 2017 2,790,033 $ 4.94 7.97 $ 2,652,746 Exercisable at September 30, 2017 1,945,931 $ 5.57 7.67 $ 1,408,304 No stock options were exercised during the nine months ended September 30, 2017. The total amount of unrecognized compensation cost related to non-vested A summary of the activity of the Company’s unvested restricted stock and performance bonus stock award activities for the nine months ending September 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 Balance at December 31, 2016 152,238 $ 3.96 Restricted shares granted 539,100 $ 1.39 Restricted share awards vested (43,588 ) $ 2.24 Balance at September 30, 2017 647,750 $ 1.94 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 September 30, 2017, there was approximately $352,000 of total unrecognized compensation costs, net of forfeitures, related to non-vested

Net Loss and Comprehensive Loss

Net Loss and Comprehensive Loss Per Common Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Net Loss and Comprehensive Loss Per Common Share	10. Net Loss and Comprehensive Loss Per Common Share 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. The effects of including the incremental shares associated with options, warrants and unvested restricted stock are anti-dilutive, and are not included in the diluted weighted average number of shares of common stock outstanding for the nine months ending September 30, 2017 and 2016. The Company excluded the following securities from the calculation of diluted net loss per common share for the nine months ended September 30, 2017 and 2016, as their effect would be anti-dilutive (in thousands): Nine months ended September 30, 2017 2016 Common shares underlying convertible notes 4,415 4,263 Outstanding stock options 2,790 1,686 Common shares underlying warrants 263 334 Unvested restricted stock 227 157 Unvested restricted stock units 10 10

Lease Commitment

Lease Commitment	9 Months Ended
	Sep. 30, 2017
Leases [Abstract]
Lease Commitment	11. Lease Commitment The Company has entered into an amendment of the current lease for a building containing offices, laboratory, and manufacturing facilities, through March 31, 2023. The lease calls for annual minimum rental payments that increase at the rate of 3.5% per annum throughout the lease term. In accordance with U.S. generally accepted accounting principles, the Company recognizes rent expense on a straight-line basis. The Company recorded deferred rent for the difference between the amounts paid and recorded as an expense. At September 30, 2017, the Company had $21,000 in deferred rent. The landlord has a one-time one-time one-time If the lease is not terminated early in accordance with its terms the Company’s future minimum rental payments required under the operating lease as of September 30, 2017, are as follows: For the year ended September 30, (in thousands) 2018 $ 478 2019 495 2020 512 2021 530 2022 548 Thereafter 279 Total $ 2,842 For the three and nine months ended September 30, 2017, base rental expense was approximately $152,000 and $363,000, respectively.

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 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 operating 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 September 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 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 from 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
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 Non-refundable 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 As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price of 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: non-refundable, up-front non-refundable, up-front 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 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 nine months ended September 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 505-50, 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 September 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. Potentially dilutive securities were not included in the net loss per common share calculation for the three and nine months ended September 30, 2017 and 2016 because the inclusion of such shares would have had an anti-dilutive effect.
Accounting Changes	Accounting Changes In May 2014, the Financial Accounting Standards Board (“FASB”) 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 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)	9 Months Ended
	Sep. 30, 2017
Text Block [Abstract]
Summary of Convertible Notes	As of September 30, 2017, the Convertible Notes consisted of the following: September 30, 2017 (in thousands, except Principal value $ 23,000 Unamortized debt discount (7,357 ) Unamortized debt issuance costs (1,106 ) Carrying value of the convertible notes $ 14,537 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 nine months ended September 30, 2017, the Company recognized interest expense associated with its Convertible Notes as follows: Three Months ended Nine Months ended (in thousands) (in thousands) Cash Interest Expense Coupon interest expense $ 517 $ 1,557 Noncash Interest Expense Amortization of debt discount 393 1,143 Amortization of transaction costs 60 174 $ 970 $ 2,874

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 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 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 Assets and Liabilities	The following table presents changes in the Company’s contract assets and liabilities for the nine months ended September 30, 2017. Balance at Additions Deductions Balance at End (in thousands) Contract Assets $ — $ 13 $ — $ 13 Contract Liabilities: Deferred Revenue $ 11,026 $ 5,356 $ (12,004 ) $ 4,378
Summary of Revenue Recognized	During the nine months ended September 30, 2017, the Company recognized the following revenues (in thousands). Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period: Performance obligations satisfied $ 7,083 Changes in the period: Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods 4,521 Performance obligations satisfied from new activities in the period - contract revenue 441 Performance obligations satisfied from new activities in the period - grant revenue 51 Total revenue $ 12,096

Stock-Based Compensation and 20

Stock-Based Compensation and Stock Options and Awards (Tables)	9 Months Ended
	Sep. 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 nine months ended September 30, 2017 and 2016 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Costs and expenses: Research and development $ 368 $ 190 $ 1,001 $ 564 General and administrative 368 196 898 621 Total stock-based compensation expense $ 736 $ 386 $ 1,899 $ 1,185
Schedule of Activity Under Stock Option Plan	The following is a summary of activity under the 2005 Plan and the 2015 Plan for the nine months ended September 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 canceled 179,963 Awards granted (539,100 ) Balance at September 30, 2017 2,604,734 Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Aggregate Outstanding at January 1, 2017 1,923,595 $ 6.86 Options granted 1,046,401 $ 1.73 Options canceled (179,963 ) $ 6.82 Outstanding at September 30, 2017 2,790,033 $ 4.94 7.97 $ 2,652,746 Exercisable at September 30, 2017 1,945,931 $ 5.57 7.67 $ 1,408,304
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 nine months ending September 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 Balance at December 31, 2016 152,238 $ 3.96 Restricted shares granted 539,100 $ 1.39 Restricted share awards vested (43,588 ) $ 2.24 Balance at September 30, 2017 647,750 $ 1.94

Net Loss and Comprehensive Lo21

Net Loss and Comprehensive Loss Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
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 nine months ended September 30, 2017 and 2016, as their effect would be anti-dilutive (in thousands): Nine months ended September 30, 2017 2016 Common shares underlying convertible notes 4,415 4,263 Outstanding stock options 2,790 1,686 Common shares underlying warrants 263 334 Unvested restricted stock 227 157 Unvested restricted stock units 10 10

Lease Commitment (Tables)

Lease Commitment (Tables)	9 Months Ended
	Sep. 30, 2017
Leases [Abstract]
Future Minimum Rental Payments Required under the Operating Lease	If the lease is not terminated early in accordance with its terms the Company’s future minimum rental payments required under the operating lease as of September 30, 2017, are as follows: For the year ended September 30, (in thousands) 2018 $ 478 2019 495 2020 512 2021 530 2022 548 Thereafter 279 Total $ 2,842

Organization, Basis of Presen23

Organization, Basis of Presentation and Liquidity - Additional Information (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)Segment	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segment | Segment	1
Accumulated deficit	$ (450,994)		$ (438,419)
Net loss	(6,529)	$ (25,001)
Working capital	5,400
Shareholders' deficit	(9,168)		987
Current assets	13,587		24,801
Current liabilities	8,220		5,848
Current assets excess over current liabilities	5,400
Cash and cash equivalents	$ 12,594	$ 28,499	$ 22,591	$ 31,462
Existence of substantial doubt about going concern, within one year	true

Summary of Significant Accoun24

Summary of Significant Accounting Policies - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2017AUD	Dec. 31, 2016USD ($)
Income Tax Expense Benefit [Line Items]
Restricted cash	$ 0		$ 1,006,000
Amount of research and development cost offset through the recognition of tax incentive credits	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
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 ($)	Sep. 30, 2017	Dec. 31, 2016
Other Accrued Liabilities [Line Items]
Accrued payroll withholding liabilities	$ 1,745,000	$ 1,335,000
Other Accrued Liabilities [Member]
Other Accrued Liabilities [Line Items]
Accrued expenses for services	178,000	105,000
Accrued payroll withholding liabilities	114,000	51,000
Convertible Debt [Member] | Other Accrued Liabilities [Member]
Other Accrued Liabilities [Line Items]
Accrued expenses for interest	$ 863,000	$ 340,000

Convertible Notes and Warrant26

Convertible Notes and Warrants - Additional Information (Detail)	Dec. 01, 2017$ / shares	Jul. 14, 2016USD ($)Investorshares	Apr. 25, 2016USD ($)Investorshares	Apr. 21, 2016USD ($)shares	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Aggregate principal amount					$ 23,000,000		$ 23,000,000
Proceeds from issuance of convertible debt								$ 3,050,000
Proceeds from related party convertible debt								19,950,000
Fair value of the warrants issued								662,000
Amortization of financing cost					60,000		174,000
Financing costs, derivative liability and warrant						$ 61,000		$ 997,000
Other miscellaneous interest expense							8,000
Convertible Debt [Member] | Senior Convertible Notes Due 2021 [Member]
Debt Instrument [Line Items]
Financing cost					2,400,000		2,400,000
Amortization of financing cost							$ 1,400,000
Unamortized debt discount remaining amortization period							3 years 7 months 2 days
Convertible Debt [Member] | Other Accrued Liabilities [Member]
Debt Instrument [Line Items]
Accrued interest payable					863,000		$ 863,000		$ 340,000
Convertible Debt [Member] | Other Accrued Liabilities [Member] | Senior Convertible Notes Due 2021 [Member]
Debt Instrument [Line Items]
Accrued interest payable					$ 863,000		$ 863,000
Second and Final Closing [Member]
Debt Instrument [Line Items]
Amount funded by number of investors | Investor		2
Second and Final Closing [Member] | Class of Warrant Issued April 22, 2016 [Member]
Debt Instrument [Line Items]
Fair value of the warrants issued		$ 662,000
Class of warrants or rights, issued | shares		259,117
Second and Final Closing [Member] | Convertible Debt [Member] | Senior Convertible Notes Due 2021 [Member]
Debt Instrument [Line Items]
Proceeds from issuance of convertible debt		$ 3,000,000
Effective interest rate on liability component					16.24%		16.24%
Initial Closing [Member]
Debt Instrument [Line Items]
Amount funded by number of investors | Investor			2
Initial Closing [Member] | Class of Warrant Issued April 22, 2016 [Member]
Debt Instrument [Line Items]
Fair value of the warrants issued			$ 11,000
Amount funded by number of investors | Investor			1
Class of warrants or rights, issued | shares			4,319
Initial Closing [Member] | Convertible Debt [Member] | Senior Convertible Notes Due 2021 [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%
Initial Closing [Member] | Convertible Debt [Member] | Senior Convertible Notes Due 2021 [Member] | Grifols [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] | Convertible Debt [Member] | Senior Convertible Notes Due 2021 [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] | Convertible Debt [Member] | Senior Convertible Notes Due 2021 [Member] | Minimum [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 Warrant27

Convertible Notes and Warrants - Summary of Convertible Notes (Detail) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Convertible Debt [Abstract]
Principal value	$ 23,000
Unamortized debt discount	(7,357)
Unamortized debt issuance costs	(1,106)
Carrying value of the convertible notes	$ 14,537
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 Warrant28

Convertible Notes and Warrants - Summary of Convertible Notes (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2017USD ($)
Convertible Debt [Abstract]
Debt conversion, initial conversion ratio, denominator	$ 1,000

Convertible Notes and Warrant29

Convertible Notes and Warrants - Summary of Interest Expense Associated with Convertible Notes (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Interest Expense [Abstract]
Coupon interest expense	$ 517	$ 1,557
Noncash Interest Expense
Amortization of debt discount	393	1,143
Amortization of transaction costs	60	174
Interest expense	$ 970	$ 2,874

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - Accounting Standards Update 2014-09 [Member] - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 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	$ 2.6	$ 11.7
Decrease in net loss	$ 2.6	$ 11.7
Decrease in basic net loss per share	$ 0.18	$ 0.79
Decrease in diluted net loss per share	$ 0.18	$ 0.79

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Reconciliation of Contract Liabilities (Detail) - USD ($) $ in Thousands	Jan. 01, 2017	Sep. 30, 2017
Deferred Revenue Disclosure [Abstract]
Deferred Revenue, beginning balance	$ 5,000	$ 5,000
Changes in estimated consideration	0
Unsatisfied performance obligations	6,026	$ 5,356
Deferred Revenue, ending balance	$ 11,026

Revenue Recognition - Summary o

Revenue Recognition - Summary of Changes in Contract Assets and Liabilities (Detail) - USD ($) $ in Thousands	Jan. 01, 2017	Sep. 30, 2017
Revenue Recognition and Deferred Revenue [Abstract]
Contract Assets, beginning balance	$ 0	$ 0
Contract assets, additions		13
Contract assets, deductions		0
Contract Assets, ending balance		13
Contract liabilities: deferred revenue, beginning balance	11,026	11,026
Contract liabilities: deferred revenue, additions	$ 6,026	5,356
Contract liabilities: deferred revenue, deductions		(12,004)
Contract liabilities: deferred revenue, ending balance		$ 4,378

Revenue Recognition - Summary33

Revenue Recognition - Summary of Revenue Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2017	Sep. 30, 2017
Revenue recognized in the period from:
Performance obligations satisfied	$ 4,500	$ 7,083
Changes in the period:
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods		4,521
Total revenue		12,096
Contract Revenue [Member]
Changes in the period:
Performance obligations satisfied from new activities in the period		441
Grant Revenue [Member]
Changes in the period:
Performance obligations satisfied from new activities in the period		$ 51

Collaboration Agreement - Grifo

Collaboration Agreement - Grifols License and Collaboration Agreement - Additional Information (Detail) - USD ($)	Jan. 01, 2017	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Contract revenue recognized	$ 6,026,000			$ 5,356,000
Additional deferred revenue				12,004,000
Milestone payments received		$ 10,000,000
Performance obligation satisfied			$ 4,500,000	7,083,000
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		2,700,000		$ 11,800,000
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
Unsatisfied performance obligations		4,200,000		$ 4,200,000
Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Payments receivable upon the achievement of regulatory filing and approval milestones		$ 25,000,000		$ 25,000,000

Stock-Based Compensation and 35

Stock-Based Compensation and Stock Options and Awards - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Costs and Expenses
Total stock-based compensation expense	$ 736	$ 386	$ 1,899	$ 1,185
Research and Development [Member]
Costs and Expenses
Total stock-based compensation expense	368	190	1,001	564
General and Administrative [Member]
Costs and Expenses
Total stock-based compensation expense	$ 368	$ 196	$ 898	$ 621

Stock-Based Compensation and 36

Stock-Based Compensation and Stock Options and Awards - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 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			7 months 2 days
Unrecognized compensation expense	352,000		$ 352,000
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	1,400,000		$ 1,400,000
Weighted average period over which unrecognized compensation costs expected to be recognized			1 year 1 month 9 days
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 221,000		$ 221,000
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					$ 444,000

Stock-Based Compensation and 37

Stock-Based Compensation and Stock Options and Awards - Schedule of Activity Under Stock Option Plan - Shares Available for Future Grant (Detail) - Stock Options [Member]	9 Months Ended
	Sep. 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 canceled	179,963
Awards granted	(539,100)
Balance at September 30, 2017	2,604,734

Stock-Based Compensation and 38

Stock-Based Compensation and Stock Options and Awards - Schedule of Activity Under Stock Option Plan - Options Outstanding (Detail) - Stock Options [Member]	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Number of Shares
Outstanding at January 1, 2017 | shares	1,923,595
Options granted | shares	1,046,401
Options canceled | shares	(179,963)
Outstanding at September 30, 2017 | shares	2,790,033
Exercisable at September 30, 2017 | shares	1,945,931
Weighted Average Exercise Price
Outstanding at January 1, 2017 | $ / shares	$ 6.86
Options granted | $ / shares	1.73
Options canceled | $ / shares	6.82
Outstanding at September 30, 2017 | $ / shares	4.94
Exercisable at September 30, 2017 | $ / shares	$ 5.57
Weighted Average Remaining Contractual Term
Outstanding at September 30, 2017	7 years 11 months 19 days
Exercisable at September 30, 2017	7 years 8 months 2 days
Aggregate Intrinsic Value
Outstanding at September 30, 2017 | $	$ 2,652,746
Exercisable at September 30, 2017 | $	$ 1,408,304

Stock-Based Compensation and 39

Stock-Based Compensation and Stock Options and Awards - Schedule of Unvested Restricted Stock Award Activities (Detail) - Restricted Stock [Member]	9 Months Ended
	Sep. 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	(43,588)
Balance at September 30, 2017 | shares	647,750
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	2.24
Balance at September 30, 2017 | $ / shares	$ 1.94

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 shares in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Common Shares Underlying Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities outstanding	4,415	4,263
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities outstanding	2,790	1,686
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities outstanding	227	157
Unvested Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities outstanding	10	10
Common Shares Underlying Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities outstanding	263	334

Lease Commitment - Additional I

Lease Commitment - Additional Information (Detail)	3 Months Ended	9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2017USD ($)
Leases [Abstract]
Percentage increase in annual minimum rental payments	3.50%	3.50%
Deferred rent	$ 21,000	$ 21,000
New funding to be raised before lease termination notice date		20,000,000
One-time tenant improvement allowance		364,000
Base rental expenses	$ 152,000	$ 363,000

Lease Commitment - Future Minim

Lease Commitment - Future Minimum Rental Payments Required under the Operating Lease (Detail) $ in Thousands	Sep. 30, 2017USD ($)
Operating Leases, Future Minimum Payments Due, Rolling Maturity [Abstract]
2,018	$ 478
2,019	495
2,020	512
2,021	530
2,022	548
Thereafter	279
Total	$ 2,842