Senomyx (SNMX) Inactive 10-Q12 Nov 132013 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2013	Nov. 05, 2013
Document and Entity Information	'	'
Entity Registrant Name	'SENOMYX INC	'
Entity Central Index Key	'0001123979	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	40,789,434
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Current assets:	'	'
Cash and cash equivalents	$11,723	$15,427
Short-term investments available-for-sale	13,586	21,365
Accounts receivable	1,152	2,702
Other current assets	940	845
Total current assets	27,401	40,339
Long-term investments available-for-sale	10,248	5,031
Property and equipment, net	6,294	7,910
Total assets	43,943	53,280
Current liabilities:	'	'
Accounts payable, accrued expenses and other current liabilities	5,608	6,538
Deferred rent	246	183
Leasehold incentive obligation	987	987
Deferred revenues	11,403	10,580
Total current liabilities	18,244	18,288
Deferred rent	942	1,138
Leasehold incentive obligation	2,386	3,126
Deferred revenues	1,750	5,000
Commitments	'	'
Stockholders' equity:	'	'
Preferred stock, $.001 par value; 7,500,000 shares authorized; no shares issued or outstanding at September 30, 2013 (unaudited) and December 31, 2012	'	'
Common stock, $.001 par value; 120,000,000 shares authorized at September 30, 2013 (unaudited) and December 31, 2012; 40,753,310 and 40,100,483 shares issued and outstanding at September 30, 2013 (unaudited) and December 31, 2012, respectively.	41	40
Additional paid-in capital	260,169	256,470
Accumulated other comprehensive income	12	7
Accumulated deficit	-239,601	-230,789
Total stockholders' equity	20,621	25,728
Total liabilities and stockholders' equity	$43,943	$53,280

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
BALANCE SHEETS	'	'
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	7,500,000	7,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	120,000,000	120,000,000
Common stock, shares issued	40,753,310	40,100,483
Common stock, shares outstanding	40,753,310	40,100,483

STATEMENTS_OF_OPERATIONS_AND_C

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues:	'	'	'	'
Development revenues	$5,862	$7,007	$18,085	$20,247
Commercial revenues	867	909	3,793	2,882
Total revenues	6,729	7,916	21,878	23,129
Operating expenses:	'	'	'	'
Cost of commercial revenues	61	64	266	203
Research and development	7,053	7,152	21,401	21,458
General and administrative	3,098	2,739	9,051	8,498
Total operating expenses	10,212	9,955	30,718	30,159
Loss from operations	-3,483	-2,039	-8,840	-7,030
Other income	8	12	28	57
Net loss	-3,475	-2,027	-8,812	-6,973
Other comprehensive loss:	'	'	'	'
Unrealized gain (loss) on investments	26	10	5	-24
Comprehensive loss	($3,449)	($2,017)	($8,807)	($6,997)
Net loss per share, basic and diluted (in dollars per share)	($0.09)	($0.05)	($0.22)	($0.17)
Shares used in calculating net loss per share, basic and diluted (in shares)	40,673,885	39,981,991	40,588,656	39,907,866

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Operating activities	'	'
Net loss	($8,812)	($6,973)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation	2,179	2,066
Accretion of premium on available-for-sale securities	191	137
Amortization of leasehold incentive obligation	-740	-740
Stock-based compensation for employees and non-employee directors	2,884	3,292
Stock-based compensation for non-employees	15	2
Change in operating assets and liabilities:	'	'
Accounts receivable	1,550	387
Other current assets	-127	-162
Accounts payable, accrued expenses and other current liabilities	-970	-455
Deferred revenues	-2,427	-7,061
Deferred rent	-133	-74
Net cash used in operating activities	-6,390	-9,581
Investing activities	'	'
Purchases of property and equipment	-523	-1,441
Purchases of available-for-sale securities	-20,887	-25,388
Maturities of available-for-sale securities	23,295	35,135
Net cash provided by investing activities	1,885	8,306
Financing activities	'	'
Proceeds from issuance of common stock, net of issuance costs	801	746
Net cash provided by financing activities	801	746
Net change in cash and cash equivalents	-3,704	-529
Cash and cash equivalents at beginning of period	15,427	15,964
Cash and cash equivalents at end of period	11,723	15,435
Supplemental disclosure of cash flow information:	'	'
Purchases of property and equipment included in accounts payable, accrued expenses and other current liabilities at period end	$73	'

Basis_of_Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2013
Basis of Presentation	'
Basis of Presentation	'
	1. Basis of Presentation

	The financial statements of Senomyx, Inc. (“Senomyx” or the “Company”) at September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 are unaudited. The unaudited financial statements have been prepared on the same basis as the Company’s audited financial statements and, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary to state fairly the financial information therein. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be reported for the year ending December 31, 2013. For more complete financial information, these financial statements, and the notes thereto, should be read in conjunction with the audited financial statements for the year ended December 31, 2012, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission (the “SEC”).

	Use of Estimates

	The preparation of financial statements in conformity with United States generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that 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 amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

	Reclassifications

	Cost of commercial revenues represent royalties payable to third parties under the Company’s licensing agreements. Such amounts from the prior year have been reclassified from commercial revenues to conform to the current year presentation.

	Cash and Cash Equivalents

	The Company considers all highly liquid investments with a remaining maturity of three months or less when purchased to be cash equivalents. Cash equivalents are recorded at cost, which approximates market value.

	Investments Available-for-Sale

	The Company’s surplus cash is invested in United States Treasuries and United States government agency bonds with maturity dates of two years or less from the settlement date. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity with all amortization and accretion included in interest income. The Company’s investments are classified as available-for-sale and carried at estimated fair value with unrealized gains and losses reported in a separate component of accumulated other comprehensive income (loss). Realized gains and losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are included in interest income. The cost of securities sold is based on the specific identification method. Interest on securities classified as available-for-sale is included in interest income.

	Fair Value of Financial Instruments other than Investments Available-for-Sale

	The carrying amount of cash and cash equivalents, accounts receivables, accounts payable and accrued expenses are considered to be representative of their respective fair value because of the short-term nature of those items.

	Revenue Recognition

	The Company’s revenue recognition policies are in compliance with the Revenue Recognition Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). Some of the Company’s agreements contain multiple elements, including technological and territorial licenses and research and development services. In accordance with these agreements, the Company may be eligible for upfront fees, research and development funding, cost reimbursements, development milestones, commercial milestones, minimum periodic royalty payments and royalty payments. Development revenues include revenues from license fees, research and development funding, development milestones and cost reimbursements. Commercial revenues include revenues from commercial milestones, royalties on sales made by the Company’s collaborators of products incorporating the Company’s flavor ingredients and minimum periodic royalty payments.

	Pursuant to the Revenue Recognition – Multiple-Element Arrangements Topic of the FASB ASC, each required deliverable is evaluated to determine if it qualifies as a separate unit of accounting. For the Company this determination is generally based on whether the deliverable has “stand-alone value” to the customer. The arrangement’s consideration is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. The estimated selling price of each deliverable is determined using the following hierarchy of values: (i) vendor-specific objective evidence of fair value; (ii) third-party evidence of selling price; and (iii) best estimate of selling price (“BESP”). The BESP reflects the Company’s best estimate of what the selling price would be if the deliverable was regularly sold by the Company on a stand-alone basis. The Company expects, in general, to use the BESP for allocating consideration to each deliverable. In general, the consideration allocated to each unit of accounting is then recognized as the related goods or services are delivered limited to the consideration that is not contingent upon future deliverables. For multiple-element arrangements entered into prior to January 1, 2011 and not materially modified thereafter, the Company continues to apply the Company’s prior accounting policy with respect to such arrangements.

	Non-refundable license fees, if not associated with future Company performance, are recognized when received. Non-refundable license fees, if associated with future Company performance obligations, are attributed to a specific program or collaboration and recognized over the period of service for that specific program or collaboration. Amounts received for research funding are recognized as revenue as the services are performed. Revenue is deferred for fees received before earned. Revenues from development milestones are accounted for in accordance with the Revenue Recognition — Milestone Method Topic of the FASB ASC. Milestones are recognized when earned, as evidenced by written acknowledgment from the collaborator or other persuasive evidence that the milestone has been achieved, provided that the milestone event is substantive. A milestone event is considered to be substantive if its achievability was not reasonably assured at the inception of the agreement and the Company’s efforts led to the achievement of the milestone or the milestone was due upon the occurrence of a specific outcome resulting from the Company’s performance. If both of these criteria are not met, the milestone payment is recognized over the remaining minimum period of the Company’s performance obligations under the agreement, if any. The Company assesses whether a milestone is substantive at the inception of each agreement. Revenues from cost reimbursement are recognized when earned, as evidenced by written acknowledgment from the collaborator or other persuasive evidence.

	Revenues from commercial milestones are recognized when earned, as evidenced by written acknowledgment from the collaborator or other persuasive evidence that the milestone has been achieved, as these milestone payments do not require the Company’s efforts, but result from the efforts of the collaborator. Royalties on sales made by the Company’s collaborators of products incorporating the Company’s flavor ingredients are recognized when a royalty report or other persuasive evidence is received, which is generally one quarter in arrears. Non-refundable minimum periodic royalty payments are recognized as revenues over the related royalty periods. Royalty terms are specific to each collaboration and collaborator and can vary from year to year. These terms vary based on factors such as the characteristics of the flavor ingredient and the product categories and geographies licensed by the collaborator. Periodically, as contractually specified, the Company’s collaborators are required to provide a report detailing all sales of products containing the Company’s flavor ingredients. To the extent that calculated royalties on sales of such products exceed the minimum periodic royalty payments made to date, the collaborators are required to remit to the Company the difference between royalties calculated and minimum periodic royalty payments made to date. The Company recognizes this difference as royalties on product sales at the time the report is received. To the extent that minimum periodic royalty payments through the end of any applicable period exceed calculated royalties, the Company is not required to refund the difference. Although the Company currently does not have any collaborations that include refundable minimum periodic royalty payments, in such a case, revenue would be deferred for refundable minimum periodic royalty payments received before earned.

	Stock-Based Compensation

	Total stock-based compensation expenses recognized for the three and nine months ended September 30, 2013 and 2012 was comprised as follows (in thousands):

			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2013			2012			2013			2012

	Research and development		$	417		$	438		$	1,188		$	1,362
	General and administrative		607			641			1,711			1,932
	Total stock-based compensation expenses		$	1,024		$	1,079		$	2,899		$	3,294

	At September 30, 2013, total unrecognized estimated compensation expenses related to non-vested stock options granted prior to that date was $6.7 million, which is expected to be recognized over a weighted average period of 2.0 years.

	Net Loss Per Share

	The Company calculated net loss per share in accordance with the Earnings Per Share Topic of the FASB ASC. Basic earnings per share (“EPS”) is calculated by dividing the net loss by the weighted average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing the net income or loss by the weighted average number of common share equivalents outstanding for the period determined using the treasury-stock method. Dilutive common share equivalents include the dilutive effect of in-the-money shares, which is calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of a share, the amount of compensation cost, if any, for future service that the Company has not yet recognized, and the amount of estimated tax benefits that would be recorded in paid-in capital, if any, when the share is exercised are assumed to be used to repurchase shares in the current period. For purposes of this calculation, common stock subject to repurchase by the Company, convertible preferred stock, options, and warrants are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive.

	The following table sets forth the computation of basic and diluted net loss per share for the respective periods.

			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2013			2012			2013			2012
	Numerator:
	Net loss (in thousands)		$	(3,475	)	$	(2,027	)	$	(8,812	)	$	(6,973	)
	Denominator:
	Weighted average common shares		40,673,885			39,981,991			40,588,656			39,907,866

	Basic and diluted net loss per share		$	(0.09	)	$	(0.05	)	$	(0.22	)	$	(0.17	)

Outstanding antidilutive securities not included in diluted net loss per share calculation:
Options to purchase common stock		11,932,170			10,661,900			11,932,170			10,661,900

Comprehensive Income (Loss)

The Comprehensive Income Topic of the FASB ASC requires that all components of comprehensive income (loss), including net income (loss), be reported in the financial statements in the period in which they are recognized. Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. The Company’s accumulated other comprehensive income as of September 30, 2013 and December 31, 2012 consisted of unrealized gains or losses on investments available-for-sale and is reported in stockholders’ equity.

Balance_Sheet_Details

Balance Sheet Details	9 Months Ended
	Sep. 30, 2013
Balance Sheet Details	'
Balance Sheet Details	'
	2. Balance Sheet Details

	Investments Available-for-Sale

	The following is a summary of investments available-for-sale at September 30, 2013 (in thousands):

		Amortized		Unrealized		Unrealized		Estimated
		Cost		Gain		Loss		Fair Value
	United States Treasuries	$	7,512	$	6	$	—	$	7,518
	United States government agency securities	16,310		6		—		16,316

	Total	$	23,822	$	12	$	—	$	23,834

	The following is a summary of investments available-for-sale at December 31, 2012 (in thousands):

		Amortized		Unrealized		Unrealized		Estimated
		Cost		Gain		Loss		Fair Value
	United States Treasuries	$	5,533	$	1	$	—	$	5,534
	United States government agency securities	20,856		6		—		20,862

	Total	$	26,389	$	7	$	—	$	26,396

	Gross realized gains and losses on available-for-sale securities were immaterial during the three and nine months ended September 30, 2013 and 2012. As of September 30, 2013, the Company held $13.6 million of available-for-sale securities with maturity dates within one year and $10.2 million with maturity dates over one year and less than two years.

Fair_Value_Disclosures

Fair Value Disclosures	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures	'
Fair Value Disclosures	'
	3. Fair Value Disclosures

	The following table presents information about the Company’s financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2013, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. The Company classifies money market funds and United States Treasuries as Level 1 assets.

	Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. The Company obtains the fair value of Level 2 financial instruments from a third-party professional pricing service using quoted market prices for identical or comparable instruments. The Company’s professional pricing service gathers market prices from a variety of industry standard data providers, security master files from large financial institutions and other third-party sources. The service uses these multiple prices as inputs into a distribution-curve based algorithm to determine a fair value. The Company then validates the quoted fair values provided by the professional pricing service by comparing the service’s assessment of the fair values of the Company’s Level 2 investment portfolio balance against the fair values of the Company’s Level 2 investment portfolio balance provided by the Company’s investment managers. The Company classifies United States government agency securities as Level 2 assets. There were no transfers between Level 1 and Level 2 during the nine months ended September 30, 2013 or 2012.

	Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The Company does not hold any Level 3 assets. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

	Assets that have recurring measurements are shown below (in thousands):

				Fair Value Measurement at Reporting Date Using
	Description	Balance as of		Quoted Prices in		Significant Other		Significant
		September 30,		Active Markets		Observable Inputs		Unobservable
		2013		for Identical		(Level 2)		Inputs
				Assets (Level 1)				(Level 3)

	Financial instruments owned:
	Money market funds	$	11,188	$	11,188	$	—	$	—
	United States Treasuries	7,518		7,518		—		—
	United States government agency securities	16,316		—		16,316		—
	Total financial instruments owned	$	35,022	$	18,706	$	16,316	$	—

Product_Discovery_Development_

Product Discovery, Development and Commercialization Collaborations	9 Months Ended
	Sep. 30, 2013
Product Discovery, Development and Commercialization Collaborations	'
Product Discovery, Development and Commercialization Collaborations	'
	4. Product Discovery, Development and Commercialization Collaborations

	In April 2013, the Company amended and restated the Collaborative Research and Development Agreement with Firmenich dated July 28, 2009, as amended, to extend the collaborative research period through July 2016, subject to limited termination rights. The agreement is focused on discovering novel flavor ingredients intended to modify the sweet flavor of sucrose, fructose or various forms of rebaudioside. The significant deliverables under the agreement are research services and certain license rights. Firmenich will pay an additional non-refundable license fee of $5 million, of which $1 million was paid in the second quarter of 2013 and $3 million was paid in the third quarter of 2013. Firmenich will also pay approximately $13 million in research funding over the three-year extension period from July 2013 through July 2016, payable on a quarterly basis. Because of the proprietary nature of the Company’s technology, the Company has determined that the research services and license rights do not have standalone value and are therefore treated as a combined unit of accounting with development revenues to be recognized ratably over the collaborative research period. The Company may receive up to an additional $7 million in substantive development milestones based on specific objectives related to new sweet flavor ingredients, with a total of $14.1 million in substantive development milestones available under the amended agreement. Firmenich continues to have obligations for other milestone payments, cost reimbursements and royalty payments under an increased royalty rate structure based upon Firmenich sales of flavor ingredients developed under the collaboration.

	No development milestones were earned during the nine months ended September 30, 2013. During the nine months ended September 30, 2012, the Company earned development milestones totaling $1.3 million related to its Sweet Taste Program and $500,000 related to its Cooling Taste Program.

Basis_of_Presentation_Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2013
Basis of Presentation	'
Use of Estimates	'
	Use of Estimates

	The preparation of financial statements in conformity with United States generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that 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 amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Reclassifications	'
	Reclassifications

	Cost of commercial revenues represent royalties payable to third parties under the Company’s licensing agreements. Such amounts from the prior year have been reclassified from commercial revenues to conform to the current year presentation.

Cash and Cash Equivalents	'
	Cash and Cash Equivalents

	The Company considers all highly liquid investments with a remaining maturity of three months or less when purchased to be cash equivalents. Cash equivalents are recorded at cost, which approximates market value.

Investments Available-for-Sale	'
	Investments Available-for-Sale

	The Company’s surplus cash is invested in United States Treasuries and United States government agency bonds with maturity dates of two years or less from the settlement date. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity with all amortization and accretion included in interest income. The Company’s investments are classified as available-for-sale and carried at estimated fair value with unrealized gains and losses reported in a separate component of accumulated other comprehensive income (loss). Realized gains and losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are included in interest income. The cost of securities sold is based on the specific identification method. Interest on securities classified as available-for-sale is included in interest income.

Fair Value of Financial Instruments other than Investments Available-for-Sale	'
	Fair Value of Financial Instruments other than Investments Available-for-Sale

	The carrying amount of cash and cash equivalents, accounts receivables, accounts payable and accrued expenses are considered to be representative of their respective fair value because of the short-term nature of those items.
Revenue Recognition	'
	Revenue Recognition

	The Company’s revenue recognition policies are in compliance with the Revenue Recognition Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). Some of the Company’s agreements contain multiple elements, including technological and territorial licenses and research and development services. In accordance with these agreements, the Company may be eligible for upfront fees, research and development funding, cost reimbursements, development milestones, commercial milestones, minimum periodic royalty payments and royalty payments. Development revenues include revenues from license fees, research and development funding, development milestones and cost reimbursements. Commercial revenues include revenues from commercial milestones, royalties on sales made by the Company’s collaborators of products incorporating the Company’s flavor ingredients and minimum periodic royalty payments.

	Pursuant to the Revenue Recognition – Multiple-Element Arrangements Topic of the FASB ASC, each required deliverable is evaluated to determine if it qualifies as a separate unit of accounting. For the Company this determination is generally based on whether the deliverable has “stand-alone value” to the customer. The arrangement’s consideration is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. The estimated selling price of each deliverable is determined using the following hierarchy of values: (i) vendor-specific objective evidence of fair value; (ii) third-party evidence of selling price; and (iii) best estimate of selling price (“BESP”). The BESP reflects the Company’s best estimate of what the selling price would be if the deliverable was regularly sold by the Company on a stand-alone basis. The Company expects, in general, to use the BESP for allocating consideration to each deliverable. In general, the consideration allocated to each unit of accounting is then recognized as the related goods or services are delivered limited to the consideration that is not contingent upon future deliverables. For multiple-element arrangements entered into prior to January 1, 2011 and not materially modified thereafter, the Company continues to apply the Company’s prior accounting policy with respect to such arrangements.

	Non-refundable license fees, if not associated with future Company performance, are recognized when received. Non-refundable license fees, if associated with future Company performance obligations, are attributed to a specific program or collaboration and recognized over the period of service for that specific program or collaboration. Amounts received for research funding are recognized as revenue as the services are performed. Revenue is deferred for fees received before earned. Revenues from development milestones are accounted for in accordance with the Revenue Recognition — Milestone Method Topic of the FASB ASC. Milestones are recognized when earned, as evidenced by written acknowledgment from the collaborator or other persuasive evidence that the milestone has been achieved, provided that the milestone event is substantive. A milestone event is considered to be substantive if its achievability was not reasonably assured at the inception of the agreement and the Company’s efforts led to the achievement of the milestone or the milestone was due upon the occurrence of a specific outcome resulting from the Company’s performance. If both of these criteria are not met, the milestone payment is recognized over the remaining minimum period of the Company’s performance obligations under the agreement, if any. The Company assesses whether a milestone is substantive at the inception of each agreement. Revenues from cost reimbursement are recognized when earned, as evidenced by written acknowledgment from the collaborator or other persuasive evidence.

	Revenues from commercial milestones are recognized when earned, as evidenced by written acknowledgment from the collaborator or other persuasive evidence that the milestone has been achieved, as these milestone payments do not require the Company’s efforts, but result from the efforts of the collaborator. Royalties on sales made by the Company’s collaborators of products incorporating the Company’s flavor ingredients are recognized when a royalty report or other persuasive evidence is received, which is generally one quarter in arrears. Non-refundable minimum periodic royalty payments are recognized as revenues over the related royalty periods. Royalty terms are specific to each collaboration and collaborator and can vary from year to year. These terms vary based on factors such as the characteristics of the flavor ingredient and the product categories and geographies licensed by the collaborator. Periodically, as contractually specified, the Company’s collaborators are required to provide a report detailing all sales of products containing the Company’s flavor ingredients. To the extent that calculated royalties on sales of such products exceed the minimum periodic royalty payments made to date, the collaborators are required to remit to the Company the difference between royalties calculated and minimum periodic royalty payments made to date. The Company recognizes this difference as royalties on product sales at the time the report is received. To the extent that minimum periodic royalty payments through the end of any applicable period exceed calculated royalties, the Company is not required to refund the difference. Although the Company currently does not have any collaborations that include refundable minimum periodic royalty payments, in such a case, revenue would be deferred for refundable minimum periodic royalty payments received before earned.

Stock-Based Compensation	'
	Stock-Based Compensation

	Total stock-based compensation expenses recognized for the three and nine months ended September 30, 2013 and 2012 was comprised as follows (in thousands):

		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012

	Research and development	$	417		$	438		$	1,188		$	1,362
	General and administrative	607			641			1,711			1,932
	Total stock-based compensation expenses	$	1,024		$	1,079		$	2,899		$	3,294

	At September 30, 2013, total unrecognized estimated compensation expenses related to non-vested stock options granted prior to that date was $6.7 million, which is expected to be recognized over a weighted average period of 2.0 years.

Net Loss Per Share	'
	Net Loss Per Share

	The Company calculated net loss per share in accordance with the Earnings Per Share Topic of the FASB ASC. Basic earnings per share (“EPS”) is calculated by dividing the net loss by the weighted average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing the net income or loss by the weighted average number of common share equivalents outstanding for the period determined using the treasury-stock method. Dilutive common share equivalents include the dilutive effect of in-the-money shares, which is calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of a share, the amount of compensation cost, if any, for future service that the Company has not yet recognized, and the amount of estimated tax benefits that would be recorded in paid-in capital, if any, when the share is exercised are assumed to be used to repurchase shares in the current period. For purposes of this calculation, common stock subject to repurchase by the Company, convertible preferred stock, options, and warrants are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive.

	The following table sets forth the computation of basic and diluted net loss per share for the respective periods.

		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
	Numerator:
	Net loss (in thousands)	$	(3,475	)	$	(2,027	)	$	(8,812	)	$	(6,973	)
	Denominator:
	Weighted average common shares	40,673,885			39,981,991			40,588,656			39,907,866

	Basic and diluted net loss per share	$	(0.09	)	$	(0.05	)	$	(0.22	)	$	(0.17	)

	Outstanding antidilutive securities not included in diluted net loss per share calculation:
	Options to purchase common stock	11,932,170			10,661,900			11,932,170			10,661,900

Comprehensive Income (Loss)	'
	Comprehensive Income (Loss)

	The Comprehensive Income Topic of the FASB ASC requires that all components of comprehensive income (loss), including net income (loss), be reported in the financial statements in the period in which they are recognized. Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. The Company’s accumulated other comprehensive income as of September 30, 2013 and December 31, 2012 consisted of unrealized gains or losses on investments available-for-sale and is reported in stockholders’ equity.

Basis_of_Presentation_Tables

Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2013
Significant Accounting Policies	'
Schedule of stock-based compensation expense	'
	Total stock-based compensation expenses recognized for the three and nine months ended September 30, 2013 and 2012 was comprised as follows (in thousands):

		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012

	Research and development	$	417		$	438		$	1,188		$	1,362
	General and administrative	607			641			1,711			1,932
	Total stock-based compensation expenses	$	1,024		$	1,079		$	2,899		$	3,294
Schedule of computation of basic and diluted net loss per share	'


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
	Numerator:
	Net loss (in thousands)	$	(3,475	)	$	(2,027	)	$	(8,812	)	$	(6,973	)
	Denominator:
	Weighted average common shares	40,673,885			39,981,991			40,588,656			39,907,866

	Basic and diluted net loss per share	$	(0.09	)	$	(0.05	)	$	(0.22	)	$	(0.17	)

	Outstanding antidilutive securities not included in diluted net loss per share calculation:
	Options to purchase common stock	11,932,170			10,661,900			11,932,170			10,661,900

Balance_Sheet_Details_Tables

Balance Sheet Details (Tables)	9 Months Ended
	Sep. 30, 2013
Balance Sheet Details	'
Summary of investments available-for-sale	'
	The following is a summary of investments available-for-sale at September 30, 2013 (in thousands):

		Amortized		Unrealized		Unrealized		Estimated
		Cost		Gain		Loss		Fair Value
	United States Treasuries	$	7,512	$	6	$	—	$	7,518
	United States government agency securities	16,310		6		—		16,316

	Total	$	23,822	$	12	$	—	$	23,834

	The following is a summary of investments available-for-sale at December 31, 2012 (in thousands):

		Amortized		Unrealized		Unrealized		Estimated
		Cost		Gain		Loss		Fair Value
	United States Treasuries	$	5,533	$	1	$	—	$	5,534
	United States government agency securities	20,856		6		—		20,862

	Total	$	26,389	$	7	$	—	$	26,396

Fair_Value_Disclosures_Tables

Fair Value Disclosures (Tables)	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures	'
Schedule of assets that have recurring measurements	'
	Assets that have recurring measurements are shown below (in thousands):

				Fair Value Measurement at Reporting Date Using
	Description	Balance as of		Quoted Prices in		Significant Other		Significant
		September 30,		Active Markets		Observable Inputs		Unobservable
		2013		for Identical		(Level 2)		Inputs
				Assets (Level 1)				(Level 3)

	Financial instruments owned:
	Money market funds	$	11,188	$	11,188	$	—	$	—
	United States Treasuries	7,518		7,518		—		—
	United States government agency securities	16,316		—		16,316		—
	Total financial instruments owned	$	35,022	$	18,706	$	16,316	$	—

Basis_of_Presentation_Details

Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2013
	item
Revenue Recognition	'
Number of quarters in arrears revenue from commercial milestones is recognized	1
Maximum	'
Investments Available-for-Sale	'
Maturity dates	'2 years

Basis_of_Presentation_Details_

Basis of Presentation (Details 2) (USD $)	3 Months Ended		9 Months Ended
Basis of Presentation (Details 2) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock-based Compensation	'	'	'	'
Total stock-based compensation expenses	$1,024,000	$1,079,000	$2,899,000	$3,294,000
Total unrecognized estimated compensation expenses related to non-vested stock options	6,700,000	'	6,700,000	'
Weighted average period of recognition of unrecognized estimated compensation expense	'	'	'2 years	'
Research and development	'	'	'	'
Stock-based Compensation	'	'	'	'
Total stock-based compensation expenses	417,000	438,000	1,188,000	1,362,000
General and administrative	'	'	'	'
Stock-based Compensation	'	'	'	'
Total stock-based compensation expenses	$607,000	$641,000	$1,711,000	$1,932,000

Basis_of_Presentation_Details_1

Basis of Presentation (Details 3) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net Loss Per Share	'	'	'	'
Numerator: Net loss	($3,475)	($2,027)	($8,812)	($6,973)
Denominator: Weighted average common shares	40,673,885	39,981,991	40,588,656	39,907,866
Basic and diluted net loss per share (in dollars per share)	($0.09)	($0.05)	($0.22)	($0.17)
Options to purchase common stock	'	'	'	'
Outstanding antidilutive securities not included in diluted net loss per share calculation:	'	'	'	'
Antidilutive securities not included in diluted net loss per share calculation (in shares)	11,932,170	10,661,900	11,932,170	10,661,900

Balance_Sheet_Details_Details

Balance Sheet Details (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Investments Available-for-Sale	'	'
Amortized Cost	$23,822,000	$26,389,000
Unrealized Gain	12,000	7,000
Estimated Fair Value	23,834,000	26,396,000
Available-for-sale securities with maturity dates within one year	13,600,000	'
Available-for-sale securities with maturity dates over one year and less than two years	10,200,000	'
United States Treasuries	'	'
Investments Available-for-Sale	'	'
Amortized Cost	7,512,000	5,533,000
Unrealized Gain	6,000	1,000
Estimated Fair Value	7,518,000	5,534,000
United States government agency securities	'	'
Investments Available-for-Sale	'	'
Amortized Cost	16,310,000	20,856,000
Unrealized Gain	6,000	6,000
Estimated Fair Value	$16,316,000	$20,862,000

Fair_Value_Disclosures_Details

Fair Value Disclosures (Details) (USD $)

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

In Thousands, unless otherwise specified

United States Treasuries

United States government agency securities

Recurring measurements

Total

Quoted Prices in Active Markets for Identical Assets (Level 1)

Significant Other Observable Inputs (Level 2)

United States Treasuries

United States government agency securities

United States Treasuries

United States government agency securities

Fair Value Disclosures

Amount of transfers of assets out of Level 1 into Level 2

Amount of transfers of assets out of Level 2 into Level 1

Amount of transfers of liabilities out of Level 1 into Level 2

Amount of transfers of liabilities out of Level 2 into Level 1

Financial instruments owned:

Money market funds

11,188

Fair value of securities

23,834

26,396

7,518

5,534

16,316

20,862

7,518

16,316

7,518

16,316

Total financial instruments owned

$35,022

$18,706

$16,316

Product_Discovery_Development_1

Product Discovery, Development and Commercialization Collaborations (Details) (USD $)	9 Months Ended	1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Apr. 30, 2013	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2012	Sep. 30, 2012
	Sep. 30, 2013	Firmenich	Firmenich	Firmenich	Sweet Taste Program	Cooling Taste Program
Product discovery and development collaborations	'	'	'	'	'	'
Additional non-refundable license fee payments	'	$5,000,000	'	'	'	'
Payment received	'	'	3,000,000	1,000,000	'	'
Additional research funding	'	13,000,000	'	'	'	'
Extension period	'	'3 years	'	'	'	'
Additional substantive development milestone payments available	'	7,000,000	'	'	'	'
Total substantive development milestone payments available	'	14,100,000	'	'	'	'
Development milestones earned	$0	'	'	'	$1,300,000	$500,000