Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 08, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | CASSAVA SCIENCES INC | |
Entity Central Index Key | 0001069530 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,219,300 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 18,534 | $ 19,807 |
Other current assets | 49 | 233 |
Total current assets | 18,583 | 20,040 |
Operating lease right-of-use assets | 135 | |
Property and equipment, net | 75 | 87 |
Other assets | 12 | 12 |
Total assets | 18,805 | 20,139 |
Current liabilities: | ||
Accounts payable | 594 | 294 |
Accrued development expense | 179 | 156 |
Accrued compensation and benefits | 60 | 61 |
Operating lease liabilities, current | 90 | |
Other current liabilities | 14 | |
Total current liabilities | 937 | 511 |
Operating lease liabilities, non-current | 45 | |
Total liabilities | 982 | 511 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.001 par value; 10,000,000 shares authorized, none issued and outstanding | ||
Common stock, $.001 par value; 120,000,000 shares authorized; 17,219,300 shares issued and outstanding at June 30, 2019 and December 31, 2018 | 17 | 17 |
Additional paid-in capital | 184,180 | 183,567 |
Accumulated deficit | (166,374) | (163,956) |
Total stockholders' equity | 17,823 | 19,628 |
Total liabilities and stockholders' equity | $ 18,805 | $ 20,139 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Balance Sheets [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 17,219,300 | 17,219,300 |
Common stock, shares outstanding | 17,219,300 | 17,219,300 |
Statements Of Operations
Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating expenses: | ||||
Research and development, net of grant reimbursement | $ 308 | $ 1,463 | $ 882 | $ 2,532 |
General and administrative | 845 | 998 | 1,722 | 2,097 |
Total operating expenses | 1,153 | 2,461 | 2,604 | 4,629 |
Operating loss | (1,153) | (2,461) | (2,604) | (4,629) |
Interest income | 94 | 9 | 186 | 16 |
Net loss | $ (1,059) | $ (2,452) | $ (2,418) | $ (4,613) |
Net loss per share, basic and diluted | $ (0.06) | $ (0.36) | $ (0.14) | $ (0.68) |
Shares used in computing net loss per share, basic and diluted | 17,162 | 6,838 | 17,162 | 6,739 |
Statements Of Cash Flows
Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (2,418) | $ (4,613) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Non-cash stock-based compensation | 673 | 1,501 |
Depreciation and amortization | 30 | 34 |
Changes in operating assets and liabilities: | ||
Other current assets | 184 | 154 |
Accounts payable | 300 | 538 |
Accrued development expense | 23 | (399) |
Accrued compensation and benefits | (1) | 4 |
Other current liabilities | 14 | 12 |
Net cash used in operating activities | (1,195) | (2,769) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (18) | |
Net cash used in investing activities | (18) | |
Cash flows from financing activities: | ||
Issuance costs from 2018 sale of common stock and warrants | (60) | |
Proceeds from issuance of common stock and warrants, net of issuance costs | 1,898 | |
Net cash (used in) / provided by financing activities | (60) | 1,898 |
Net decrease in cash and cash equivalents | (1,273) | (871) |
Cash and cash equivalents at beginning of period | 19,807 | 10,479 |
Cash and cash equivalents at end of period | $ 18,534 | $ 9,608 |
General And Liquidity
General And Liquidity | 6 Months Ended |
Jun. 30, 2019 | |
General And Liquidity [Abstract] | |
General And Liquidity | Note 1. General and Liquidity Cassava Sciences, Inc. (the “Company”) develops proprietary drugs that offer significant improvements to patients and healthcare professionals. The Company generally focuses its drug development efforts on disorders of the nervous system. The accompanying unaudited condensed financial statements of the Company have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management of the Company, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for any other interim period or for the year 2019 . For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Liquidity The Company has incurred significant net losses and negative cash flows since inception, and as a result has an accumulated deficit of $166.4 million at June 30, 2019. The Company expects its cash requirements to be significant in the future. The amount and timing of the Company’s future cash requirements will depend on regulatory and market acceptance of its product candidates and the resources it devotes to researching and developing, formulating, manufacturing, commercializing and supporting its products. The Company may seek additional funding through public or private financing in the future, if such funding is available and on terms acceptable to the Company. There are no assurances that additional financing will be available on favorable terms, or at all. However, management believes that the current working capital position will be sufficient to meet the Company’s working capital needs for at least the next 12 months. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2. Significant Accounting Policies Use of Estimates The Company makes estimates and assumptions in preparing its financial statements in conformity with U.S. GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue earned and expenses incurred during the reporting period. The Company evaluates its estimates on an ongoing basis, including those estimates related to agreements, research collaborations and investments. Actual results could differ from these estimates and assumptions. Cash and Cash Equivalents and Concentration of Credit Risk The Company invests in cash and cash equivalents. The Company considers highly-liquid financial instruments with original maturities of three months or less to be cash equivalents. Highly liquid investments that are considered cash equivalents include money market funds, certificates of deposits, treasury bills and commercial paper. The carrying value of cash equivalents approximates fair value due to the short-term maturity of these securities. The Company maintains its investments at one financial institution. Fair Value Measurements The Company reports its cash and cash equivalents at fair value as Level 1, Level 2 or Level 3 using the following inputs: · Level 1 includes quoted prices in active markets. The Company bases the fair value of money market funds and U.S. treasury securities on Level 1 inputs. · Level 2 includes significant observable inputs, such as quoted prices for identical or similar investments, or other inputs that are observable and can be corroborated by observable market data for similar securities. The Company uses market pricing and other observable market inputs obtained from third-party providers. It uses the bid price to establish fair value where a bid price is available. The Company does not have any investments where the fair value is based on Level 2 inputs. · Level 3 includes unobservable inputs that are supported by little or no market activity. The Company does not have any investments where the fair value is based on Level 3 inputs. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument will be categorized based upon the lowest level of input that is significant to the fair value calculation. The fair value of all cash and cash equivalents was based on Level 1 inputs at June 30, 2019 and December 31, 2018. Awards of and Proceeds from Grants During the six months ended June 30, 2019, the Company was awarded a National Institutes of Health (“ NIH”) grant totaling up to $1.5 million to support the Company’s on-going development of new technology to detect Alzheimer’s disease with a simple blood test. During the three months ended June 30, 2019 and 2018, the Company received reimbursements totaling $1.4 million and $0.4 million pursuant to previously announced NIH research grants, respectively. During the six months ended June 30, 2019 and 2018, the Company received reimbursements totaling $2.2 million and $0.8 million pursuant to NIH research grants, respectively. The Company records the proceeds from these grants as reductions to its research and development expenses. Non-cash Stock-based Compensation The Company recognizes non-cash expense for the fair value of all stock options and other share-based awards. The Company uses the Black-Scholes option valuation model (“Black-Scholes”) to calculate the fair value of stock options, using the single-option award approach and straight-line attribution method. The Company adopted ASU No. 2018-07, Compensation—Stock Compensation (Topic 718) , Improvements to Nonemployee Share-Based Payment Accounting , on January 1, 2019. Accordingly, for all options granted, it recognizes the resulting fair value as expense on a straight-line basis over the vesting period of each respective stock option, generally four years. The Company has granted share-based awards that vest upon achievement of certain performance criteria (“Performance Awards”). The Company multiplies the number of Performance Awards by the fair market value of its common stock on the date of grant to calculate the fair value of each award. It estimates an implicit service period for achieving performance criteria for each award. The Company recognizes the resulting fair value as expense over the implicit service period when it concludes that achieving the performance criteria is probable. It periodically reviews and updates as appropriate its estimates of implicit service periods and conclusions on achieving the performance criteria. Performance Awards vest and common stock is issued upon achievement of the performance criteria. Net Loss per Share The Company computes basic net loss per share on the basis of the weighted-average number of common shares outstanding for the reporting period. Diluted net loss per share is computed on the basis of the weighted-average number of common shares outstanding plus potential dilutive common shares outstanding using the treasury-stock method. Potential dilutive common shares consist of outstanding common stock options and warrants. There is no difference between the Company’s net loss and comprehensive loss. The Company included the following in the calculation of basic and diluted net loss per share (in thousands, except per share data): Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Numerator: Net loss $ (1,059) $ (2,452) $ (2,418) $ (4,613) Denominator: Shares used in computing net loss per share, basic and diluted 17,162 6,838 17,162 6,739 Net loss per share, basic and diluted $ (0.06) $ (0.36) $ (0.14) $ (0.68) Dilutive common shares excluded from net loss per share, diluted 2,960 2,220 2,962 2,190 Common stock warrants excluded from net loss per share, diluted 9,127 - 9,127 - The Company excluded common stock options and warrants outstanding from the calculation of net loss per share, diluted, because the effect of including options and warrants outstanding would have been anti - dilutive. Fair Value of Financial Instruments Financial instruments include cash and cash equivalents, accounts payable and accrued liabilities. The estimated fair value of certain financial instruments may be determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value; therefore, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange. The effect of using different market assumptions and/or estimation methodologies may be material to the estimated fair value amounts. The carrying amounts of cash and cash equivalents, accounts payable and accrued liabilities are at cost, which approximates fair value due to the short maturity of those instruments. Income Taxes The Company makes estimates and judgments in determining the need for a provision for income taxes, including the estimation of its taxable income or loss for each full fiscal year. The Company has accumulated significant deferred tax assets that reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings. The Company is uncertain about the timing and amount of any future earnings. Accordingly, it offsets these deferred tax assets with a valuation allowance. The Company may in the future determine that certain deferred tax assets will likely be realized, in which case it will reduce its valuation allowance in the period in which such determination is made. If the valuation allowance is reduced, the Company may recognize a benefit from income taxes in its statement of operations in that period. The Company classifies interest recognized pursuant to its deferred tax assets as interest expense, when appropriate. Recently Adopted Accounting Pronouncements The Company has a single non-cancelable operating lease for approximately 6,000 square feet of office space in Austin, Texas that expires on December 31, 2020, which is used for the development of novel drugs. Prior to January 1, 2019, the Company accounted for leases in accordance with the provisions of ASC Topic 840. Under the previous leasing guidance, the Company expensed lease payments over the term of the lease and did not give recognition to any lease related assets or liabilities on its balance sheet. On January 1, 2019, the Company adopted ASU No. 2016-02 , Leases (ASC 842) which, as permitted by ASC Topic 842, is the date of initial application. The core principle of ASC Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. For operating leases, a lessee is required to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position. The Company recognized a right-of-use asset and operating lease liability upon the adoption of ASU 2016-02 which increased total assets and total liabilities relative to such amounts prior to adoption. The Company utilized a discount rate of 5.5% to determine the present value of the future lease payments which represents the Company’s incremental borrowing rate. The impact of adopting ASC 842 on assets and liabilities recorded as of January 1, 2019 were as follows (in thousands): Assets Operating lease right-of-use asset $ 180 Liabilities Operating lease liabilities, current 90 Operating lease liabilities, non-current $ 90 The Company recorded a reduction of the non-current portion of the lease liability and an offsetting reduction in the right-of-use assets of $22,500 and $45,000 during the three and six months ended June 30, 2019, respectively. There was no change to the statement of operations or statement of cash flows during the three and six months ended June 30, 2019 as a result of the adoption of ASC Topic 842. See additional information regarding leases in Note 5 – Commitments. |
Stockholders' Equity And Stock-
Stockholders' Equity And Stock-Based Compensation Expense | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity And Stock-Based Compensation Expense [Abstract] | |
Stockholders' Equity And Stock-Based Compensation Expense | Note 3. Stockholders’ Equity and Stock-Based Compensation Expense Stockholders’ Equity Activity during the Six Months Ended June 30, 2019 and 2018 During the six months ended June 30, 2019 and 2018, the Company’s common stock outstanding and stockholders’ equity changed as follows: Common Stock Stockholders' equity (in thousands) Balance at December 31, 2017 6,595,509 $ 9,699 Non-cash stock-based compensation for: Stock options for employees — 789 Stock options for non-employees — 13 Issuance of common stock and warrants, net of issuance costs 300,000 1,959 Net loss — (2,160) Balance at March 31, 2018 6,895,509 $ 10,300 Non-cash stock-based compensation for: Stock options for employees — 679 Stock options for non-employees — 19 Net loss — (2,452) Balance at June 30, 2018 6,895,509 $ 8,546 Balance at December 31, 2018 17,219,300 $ 19,628 Non-cash stock-based compensation for: Stock options for employees — 342 Stock options for non-employees — 2 Issuance costs from sale 2018 sale of common stock and warrants — (60) Net loss — (1,359) Balance at March 31, 2019 17,219,300 $ 18,553 Non-cash stock-based compensation for: Stock options for employees — 328 Stock options for non-employees — 1 Net loss — (1,059) Balance at June 30, 2019 17,219,300 $ 17,823 At-the-Market Common Stock Issuance On February 8, 2018, the Company entered into a Capital on Demand™ Sales Agreement (the “ATM Agreement”) with JonesTrading. In accordance with the terms of the ATM Agreement, the Company was able to offer and sell shares of its common stock, from time to time in one or more public offerings of its common stock, with JonesTrading acting as agent, in transactions pursuant to a shelf registration statement that was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on July 31, 2017. On August 16, 2018, the Company suspended sales of its common stock under its ATM Agreement. There were no common stock sales under the ATM Agreement during the six months ended June 30, 2019. During the six months ended June 30, 2018, the Company sold a total of 300,000 shares of its common stock under the ATM Agreement, in the open market at an average gross selling price of $6.70 per share for net proceeds of $1.9 million. The Company expensed approximately $0.1 million of cost for the offering, excluding JonesTrading commissions. Stock Option and Performance Award Activity in 2019 During the six months ended June 30, 2019, stock options and unvested Performance Awards outstanding under the Company’s 2018 Plan (defined below) changed as follows: Stock Options Performance Awards Outstanding as of December 31, 2018 2,964,973 138,055 Options granted 50,000 — Options exercised — — Options forfeited/canceled (24,512) — Outstanding as of June 30, 2019 2,990,461 138,055 The weighted average exercise price of options outstanding at June 30, 2019 was $13.89 . As outstanding options vest over the current remaining vesting period of 2.5 years, the Company expects to recognize non-cash expense of $2.2 million. If and when outstanding Performance Awards vest, the Company would recognize non-cash expense of $2.3 million over the implicit service period. Stock-based Compensation Expense in 2019 During the three and six months ended June 30, 2019 and 2018, the Company’s non-cash stock-based compensation expenses were as follows (in thousands): Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Research and development $ 135 $ 316 $ 272 $ 668 General and administrative 194 382 401 833 Total non-cash stock-based compensation expense $ 329 $ 698 $ 673 $ 1,501 2018 Equity Incentive Plan On January 31, 2018, the Company’s Board of Directors approved the Company’s 2018 Omnibus Incentive Plan (the “2018 Plan”). The Company’s Board of Directors or a designated committee of the Board of Directors is responsible for administration of the 2018 Plan and determines the terms and conditions of each option granted, consistent with the terms of the 2018 Plan. The Company’s employees, directors, and consultants are eligible to receive awards under the 2018 Plan, including grants of stock options and performance awards. Share-based awards generally expire ten years from the date of grant. The 2018 Plan provides for issuance of up to 1,000,000 shares of common stock, par value $0.001 per share under the 2018 Plan, subject to adjustment as provided in the 2018 Plan. When stock options or performance awards are exercised net of the exercise price and taxes, the number of shares of stock issued is reduced by the number of shares equal to the amount of taxes owed by the award recipient and that number of shares are cancelled. The Company then uses its cash to pay tax authorities the amount of statutory taxes owed by and on behalf of the award recipient. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | Note 4. Income Taxes The Company did not provide for income taxes during the six months ended June 30, 2019, because it has projected a net loss for the full year 2019. There was also no provision for income taxes for the six months ended June 30, 2018. |
Commitments
Commitments | 6 Months Ended |
Jun. 30, 2019 | |
Commitments [Abstract] | |
Commitments | Note 5. Commitments The Company conducts its product research and development programs through a combination of internal and collaborative programs that include, among others, arrangements with universities, contract research organizations and clinical research sites. The Company has contractual arrangements with these organizations that are cancelable. The Company’s obligations under these contracts are largely based on services performed. The Company has a non-cancelable operating lease for approximately 6,000 square feet of office space in Austin, Texas that expires on December 31, 2020 . Minimum lease payments as of June 30, 2019 were as follows (in thousands): For the year ending December 31, 2019 $ 47 2020 99 Total future minimum lease payments $ 146 Lease: imputed interest (11) Total $ 135 Building rent expense for the three months ended June 30, 2019 and 2018 totaled $24,000 and $22,000 , respectively. Building rent expense for the six months ended June 30, 2019 and 2018 totaled $48,000 and $45,000 , respectively. These amounts were equal to the Company’s operating cash outflow from operating leases. |
Collaboration Agreements
Collaboration Agreements | 6 Months Ended |
Jun. 30, 2019 | |
Collaboration Agreements [Abstract] | |
Collaboration Agreements | 6. Collaboration Agreements Durect Corporation The Company had formerly entered into a Development and License Agreement (the “License Agreement”) with Durect Corporation around certain controlled-release technology. On March 20, 2019, the Company gave notice of termination to Durect Corporation for such License Agreement. This and other actions effectively ended the Company’s development of any product candidates related to such technology. There were no payments made to Durect Corporation during the six months ended June 30, 2019 and 2018. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Recently Issued Accounting Pronouncements [Abstract] | |
Recently Issued Accounting Pronouncements | Note 7. Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which is designed to improve the effectiveness of disclosures by removing, modifying and adding disclosures related to fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the impact of ASU 2018-13 on its consolidated financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2019 | |
Significant Accounting Policies [Abstract] | |
Use Of Estimates | Use of Estimates The Company makes estimates and assumptions in preparing its financial statements in conformity with U.S. GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue earned and expenses incurred during the reporting period. The Company evaluates its estimates on an ongoing basis, including those estimates related to agreements, research collaborations and investments. Actual results could differ from these estimates and assumptions. |
Cash And Cash Equivalents And Concentration Of Credit Risk | Cash and Cash Equivalents and Concentration of Credit Risk The Company invests in cash and cash equivalents. The Company considers highly-liquid financial instruments with original maturities of three months or less to be cash equivalents. Highly liquid investments that are considered cash equivalents include money market funds, certificates of deposits, treasury bills and commercial paper. The carrying value of cash equivalents approximates fair value due to the short-term maturity of these securities. The Company maintains its investments at one financial institution. |
Fair Value Measurements | Fair Value Measurements The Company reports its cash and cash equivalents at fair value as Level 1, Level 2 or Level 3 using the following inputs: · Level 1 includes quoted prices in active markets. The Company bases the fair value of money market funds and U.S. treasury securities on Level 1 inputs. · Level 2 includes significant observable inputs, such as quoted prices for identical or similar investments, or other inputs that are observable and can be corroborated by observable market data for similar securities. The Company uses market pricing and other observable market inputs obtained from third-party providers. It uses the bid price to establish fair value where a bid price is available. The Company does not have any investments where the fair value is based on Level 2 inputs. · Level 3 includes unobservable inputs that are supported by little or no market activity. The Company does not have any investments where the fair value is based on Level 3 inputs. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument will be categorized based upon the lowest level of input that is significant to the fair value calculation. The fair value of all cash and cash equivalents was based on Level 1 inputs at June 30, 2019 and December 31, 2018. |
Awards Of And Proceeds From Grants | Awards of and Proceeds from Grants During the six months ended June 30, 2019, the Company was awarded a National Institutes of Health (“ NIH”) grant totaling up to $1.5 million to support the Company’s on-going development of new technology to detect Alzheimer’s disease with a simple blood test. During the three months ended June 30, 2019 and 2018, the Company received reimbursements totaling $1.4 million and $0.4 million pursuant to previously announced NIH research grants, respectively. During the six months ended June 30, 2019 and 2018, the Company received reimbursements totaling $2.2 million and $0.8 million pursuant to NIH research grants, respectively. The Company records the proceeds from these grants as reductions to its research and development expenses. |
Non-Cash Stock-Based Compensation | Non-cash Stock-based Compensation The Company recognizes non-cash expense for the fair value of all stock options and other share-based awards. The Company uses the Black-Scholes option valuation model (“Black-Scholes”) to calculate the fair value of stock options, using the single-option award approach and straight-line attribution method. The Company adopted ASU No. 2018-07, Compensation—Stock Compensation (Topic 718) , Improvements to Nonemployee Share-Based Payment Accounting , on January 1, 2019. Accordingly, for all options granted, it recognizes the resulting fair value as expense on a straight-line basis over the vesting period of each respective stock option, generally four years. The Company has granted share-based awards that vest upon achievement of certain performance criteria (“Performance Awards”). The Company multiplies the number of Performance Awards by the fair market value of its common stock on the date of grant to calculate the fair value of each award. It estimates an implicit service period for achieving performance criteria for each award. The Company recognizes the resulting fair value as expense over the implicit service period when it concludes that achieving the performance criteria is probable. It periodically reviews and updates as appropriate its estimates of implicit service periods and conclusions on achieving the performance criteria. Performance Awards vest and common stock is issued upon achievement of the performance criteria. |
Net Loss Per Share | Net Loss per Share The Company computes basic net loss per share on the basis of the weighted-average number of common shares outstanding for the reporting period. Diluted net loss per share is computed on the basis of the weighted-average number of common shares outstanding plus potential dilutive common shares outstanding using the treasury-stock method. Potential dilutive common shares consist of outstanding common stock options and warrants. There is no difference between the Company’s net loss and comprehensive loss. The Company included the following in the calculation of basic and diluted net loss per share (in thousands, except per share data): Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Numerator: Net loss $ (1,059) $ (2,452) $ (2,418) $ (4,613) Denominator: Shares used in computing net loss per share, basic and diluted 17,162 6,838 17,162 6,739 Net loss per share, basic and diluted $ (0.06) $ (0.36) $ (0.14) $ (0.68) Dilutive common shares excluded from net loss per share, diluted 2,960 2,220 2,962 2,190 Common stock warrants excluded from net loss per share, diluted 9,127 - 9,127 - The Company excluded common stock options and warrants outstanding from the calculation of net loss per share, diluted, because the effect of including options and warrants outstanding would have been anti - dilutive. |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments Financial instruments include cash and cash equivalents, accounts payable and accrued liabilities. The estimated fair value of certain financial instruments may be determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value; therefore, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange. The effect of using different market assumptions and/or estimation methodologies may be material to the estimated fair value amounts. The carrying amounts of cash and cash equivalents, accounts payable and accrued liabilities are at cost, which approximates fair value due to the short maturity of those instruments. |
Income Taxes | Income Taxes The Company makes estimates and judgments in determining the need for a provision for income taxes, including the estimation of its taxable income or loss for each full fiscal year. The Company has accumulated significant deferred tax assets that reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings. The Company is uncertain about the timing and amount of any future earnings. Accordingly, it offsets these deferred tax assets with a valuation allowance. The Company may in the future determine that certain deferred tax assets will likely be realized, in which case it will reduce its valuation allowance in the period in which such determination is made. If the valuation allowance is reduced, the Company may recognize a benefit from income taxes in its statement of operations in that period. The Company classifies interest recognized pursuant to its deferred tax assets as interest expense, when appropriate. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements The Company has a single non-cancelable operating lease for approximately 6,000 square feet of office space in Austin, Texas that expires on December 31, 2020, which is used for the development of novel drugs. Prior to January 1, 2019, the Company accounted for leases in accordance with the provisions of ASC Topic 840. Under the previous leasing guidance, the Company expensed lease payments over the term of the lease and did not give recognition to any lease related assets or liabilities on its balance sheet. On January 1, 2019, the Company adopted ASU No. 2016-02 , Leases (ASC 842) which, as permitted by ASC Topic 842, is the date of initial application. The core principle of ASC Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. For operating leases, a lessee is required to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position. The Company recognized a right-of-use asset and operating lease liability upon the adoption of ASU 2016-02 which increased total assets and total liabilities relative to such amounts prior to adoption. The Company utilized a discount rate of 5.5% to determine the present value of the future lease payments which represents the Company’s incremental borrowing rate. The impact of adopting ASC 842 on assets and liabilities recorded as of January 1, 2019 were as follows (in thousands): Assets Operating lease right-of-use asset $ 180 Liabilities Operating lease liabilities, current 90 Operating lease liabilities, non-current $ 90 The Company recorded a reduction of the non-current portion of the lease liability and an offsetting reduction in the right-of-use assets of $22,500 and $45,000 during the three and six months ended June 30, 2019, respectively. There was no change to the statement of operations or statement of cash flows during the three and six months ended June 30, 2019 as a result of the adoption of ASC Topic 842. See additional information regarding leases in Note 5 – Commitments. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Significant Accounting Policies [Abstract] | |
Numerators And Denominators In The Calculation Of Basic And Diluted Net Loss Per Share | Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Numerator: Net loss $ (1,059) $ (2,452) $ (2,418) $ (4,613) Denominator: Shares used in computing net loss per share, basic and diluted 17,162 6,838 17,162 6,739 Net loss per share, basic and diluted $ (0.06) $ (0.36) $ (0.14) $ (0.68) Dilutive common shares excluded from net loss per share, diluted 2,960 2,220 2,962 2,190 Common stock warrants excluded from net loss per share, diluted 9,127 - 9,127 - |
Supplemental Cash Flow Information Of Assets And Liabilities Related To Leases | Assets Operating lease right-of-use asset $ 180 Liabilities Operating lease liabilities, current 90 Operating lease liabilities, non-current $ 90 |
Stockholders' Equity And Stoc_2
Stockholders' Equity And Stock-Based Compensation Expense (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity And Stock-Based Compensation Expense [Abstract] | |
Common Stock Outstanding and Stockholders' Equity | Common Stock Stockholders' equity (in thousands) Balance at December 31, 2017 6,595,509 $ 9,699 Non-cash stock-based compensation for: Stock options for employees — 789 Stock options for non-employees — 13 Issuance of common stock and warrants, net of issuance costs 300,000 1,959 Net loss — (2,160) Balance at March 31, 2018 6,895,509 $ 10,300 Non-cash stock-based compensation for: Stock options for employees — 679 Stock options for non-employees — 19 Net loss — (2,452) Balance at June 30, 2018 6,895,509 $ 8,546 Balance at December 31, 2018 17,219,300 $ 19,628 Non-cash stock-based compensation for: Stock options for employees — 342 Stock options for non-employees — 2 Issuance costs from sale 2018 sale of common stock and warrants — (60) Net loss — (1,359) Balance at March 31, 2019 17,219,300 $ 18,553 Non-cash stock-based compensation for: Stock options for employees — 328 Stock options for non-employees — 1 Net loss — (1,059) Balance at June 30, 2019 17,219,300 $ 17,823 |
Stock Option And Performance Award Activity | Stock Options Performance Awards Outstanding as of December 31, 2018 2,964,973 138,055 Options granted 50,000 — Options exercised — — Options forfeited/canceled (24,512) — Outstanding as of June 30, 2019 2,990,461 138,055 |
Summary Of Non-Cash Stock-Based Compensation | Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Research and development $ 135 $ 316 $ 272 $ 668 General and administrative 194 382 401 833 Total non-cash stock-based compensation expense $ 329 $ 698 $ 673 $ 1,501 |
Commitments (Tables)
Commitments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments [Abstract] | |
Future Minimum Lease Payments | For the year ending December 31, 2019 $ 47 2020 99 Total future minimum lease payments $ 146 Lease: imputed interest (11) Total $ 135 |
General And Liquidity (Narrativ
General And Liquidity (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
General And Liquidity [Abstract] | ||
Accumulated deficit | $ (166,374) | $ (163,956) |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)ft² | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)ft² | Jun. 30, 2018USD ($) | Jan. 01, 2019 | |
Significant Accounting Policies [Line Items] | |||||
Total grants awarded | $ 1,500,000 | ||||
Reimbursement from grants as reduction to research and development expenses | $ 1,400,000 | $ 400,000 | $ 2,200,000 | $ 800,000 | |
Vesting period of stock options | 4 years | ||||
Leases, discount rate | 5.50% | ||||
Reduction of non-current lease liability and offsetting reduction in right-of-use assets | $ 22,500 | $ 45,000 | |||
Austin, Texas [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Office space | ft² | 6,000 | 6,000 | |||
Lease expiration date | Dec. 31, 2020 |
Significant Accounting Polici_5
Significant Accounting Policies (Numerators And Denominators In The Calculation Of Basic And Diluted Net Loss Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | |||||||
Net loss | $ (1,059) | $ (1,359) | $ (2,452) | $ (2,452) | $ (2,160) | $ (2,418) | $ (4,613) |
Denominator: | |||||||
Shares used in computing net loss per share, basic and diluted | 17,162 | 6,838 | 6,838 | 17,162 | 6,739 | ||
Net loss per share, basic and diluted | $ (0.06) | $ (0.36) | $ (0.36) | $ (0.14) | $ (0.68) | ||
Dilutive common shares excluded from net loss per share, diluted | 2,960 | 2,220 | 2,962 | 2,190 | |||
Common stock warrants excluded from net loss per share, diluted | 9,127 | 9,127 |
Significant Accounting Polici_6
Significant Accounting Policies (Supplemental Cash Flow Information Of Assets And Liabilities Related To Leases) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets [Abstract] | |||
Operating lease right-of-use asset | $ 135 | ||
Liabilities [Abstract] | |||
Operating lease liabilities, current | 90 | ||
Operating lease liabilities, non-current | $ 45 | ||
ASU No. 2016-02 [Member] | |||
Assets [Abstract] | |||
Operating lease right-of-use asset | $ 180 | ||
Liabilities [Abstract] | |||
Operating lease liabilities, current | 90 | ||
Operating lease liabilities, non-current | $ 90 |
Stockholders' Equity And Stoc_3
Stockholders' Equity And Stock-Based Compensation Expense (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Net proceeds from offering | $ 1,898 | |||||
Vesting period of stock options | 4 years | |||||
Non-cash stock-based compensation expense | $ 329 | $ 698 | $ 673 | $ 1,501 | ||
Par value per share | $ 0.001 | $ 0.001 | $ 0.001 | |||
ATM Agreement [Member] | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Number of common stock sold shares | 0 | 300,000 | ||||
Average gross selling price per share | $ 6.70 | $ 6.70 | ||||
Net proceeds from offering | $ 1,900 | |||||
Cost of the offering, excluding commissions | $ 100 | |||||
2018 Plan [Member] | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Expiration period | 10 years | |||||
Par value per share | $ 0.001 | |||||
2018 Plan [Member] | Maximum [Member] | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Shares issued | 1,000,000 | |||||
Stock Options [Member] | Stock Option And Performance Award Activity In 2019 Plan [Member] | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Weighted average exercise price or options | $ 13.89 | $ 13.89 | ||||
Vesting period of stock options | 2 years 6 months | |||||
Non-cash stock-based compensation expense | $ 2,200 | |||||
Performance Awards [Member] | Stock Option And Performance Award Activity In 2019 Plan [Member] | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Non-cash stock-based compensation expense | $ 2,300 |
Stockholders' Equity And Stoc_4
Stockholders' Equity And Stock-Based Compensation Expense (Common Stock Outstanding and Stockholders' Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Common Stock, Beginning balance | 17,219,300 | 17,219,300 | 6,895,509 | 6,895,509 | 6,595,509 | 17,219,300 | 6,595,509 |
Common Stock, Issuance of common stock and warrants, net of issuance costs | 300,000 | ||||||
Issuance costs from sale 2018 sale of common stock and warrants | 60,000 | ||||||
Common Stock, Ending balance | 17,219,300 | 17,219,300 | 6,895,509 | 6,895,509 | 17,219,300 | 6,895,509 | |
Stockholders' equity, Beginning balance | $ 18,553 | $ 19,628 | $ 8,546 | $ 10,300 | $ 9,699 | $ 19,628 | $ 9,699 |
Stockholders' equity, Non-cash stock-based compensation for: | 673 | 1,501 | |||||
Stockholders' Equity, Issuance of common stock and warrants, net of issuance costs | 1,959 | ||||||
Net loss | (1,059) | (1,359) | $ (2,452) | (2,452) | (2,160) | (2,418) | (4,613) |
Stockholders' equity, Ending balance | $ 17,823 | $ 18,553 | $ 8,546 | $ 10,300 | $ 17,823 | $ 8,546 | |
Stock Options [Member] | |||||||
Common Stock, Non-cash stock-based compensation for: | |||||||
Stockholders' equity, Non-cash stock-based compensation for: | $ 328 | $ 342 | $ 679 | $ 789 | |||
Non-Employee Stock Options [Member] | |||||||
Common Stock, Non-cash stock-based compensation for: | |||||||
Stockholders' equity, Non-cash stock-based compensation for: | $ 1 | $ 2 | $ 19 | $ 13 |
Stockholders' Equity And Stoc_5
Stockholders' Equity And Stock-Based Compensation Expense (Stock Option And Performance Award Activity) (Details) | 6 Months Ended |
Jun. 30, 2019shares | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding as of December 31, 2018 | 2,964,973 |
Options granted | 50,000 |
Options exercised | |
Options forfeited/canceled | (24,512) |
Outstanding as of June 30, 2019 | 2,990,461 |
Performance Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding as of December 31, 2018 | 138,055 |
Options granted | |
Options exercised | |
Options forfeited/canceled | |
Outstanding as of June 30, 2019 | 138,055 |
Stockholders' Equity And Stoc_6
Stockholders' Equity And Stock-Based Compensation Expense (Summary Of Non-Cash Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total non-cash stock-based compensation expense | $ 329 | $ 698 | $ 673 | $ 1,501 |
Research And Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total non-cash stock-based compensation expense | 135 | 316 | 272 | 668 |
General And Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total non-cash stock-based compensation expense | $ 194 | $ 382 | $ 401 | $ 833 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)ft² | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)ft² | Jun. 30, 2018USD ($) | |
Building [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Rent | $ | $ 24 | $ 22 | $ 48 | $ 45 |
Austin, Texas [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Office space | ft² | 6,000 | 6,000 | ||
Lease expiration date | Dec. 31, 2020 |
Commitments (Future Minimum Lea
Commitments (Future Minimum Lease Payments) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Commitments [Abstract] | |
2019 | $ 47 |
2020 | 99 |
Total future minimum lease payments | 146 |
Lease: imputed interest | (11) |
Total | $ 135 |
Collaboration Agreements (Detai
Collaboration Agreements (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Durect Corporation [Member] | ||
Payment for collaboration agreements | $ 0 | $ 0 |