Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 05, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | GALT | |
Entity Registrant Name | GALECTIN THERAPEUTICS INC | |
Entity Central Index Key | 1,133,416 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 23,929,244 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 21,319 | $ 29,128 |
Prepaid expenses and other current assets | 183 | 533 |
Total current assets | 21,502 | 29,661 |
Property and equipment, net | 1 | |
Intangible assets, net | 10 | 15 |
Total assets | 21,512 | 29,677 |
Current liabilities: | ||
Accounts payable | 929 | 906 |
Accrued expenses | 797 | 729 |
Accrued dividends payable | 68 | |
Total liabilities | $ 1,726 | $ 1,703 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Undesignated stock, $0.01 par value; 20,000,000 shares authorized, 8,001,000 designated at September 30, 2015 and December 31, 2014 | ||
Series A 12% convertible preferred stock; 5,000,000 shares authorized, 1,377,500 and 1,402,500 issued and outstanding at September 30, 2015 and December 31, 2014, respectively, liquidation value $1,377,500 at September 30, 2015 | $ 557 | $ 567 |
Common stock, $0.001 par value; 50,000,000 shares authorized at September 30, 2015 and December 31, 2014, 23,929,244 and 22,277,283 issued and outstanding at September 30, 2015 and December 31, 2014, respectively | 23 | 22 |
Additional paid-in capital | 147,338 | 139,531 |
Retained deficit | (135,083) | (118,925) |
Total stockholders' equity | 12,835 | 21,195 |
Total liabilities, redeemable convertible preferred stock and stockholders' equity | 21,512 | 29,677 |
Series B-1 12% redeemable convertible preferred stock | ||
Current liabilities: | ||
Convertible preferred stock, value | 1,744 | 1,731 |
Series B-2 12% redeemable convertible preferred stock | ||
Current liabilities: | ||
Convertible preferred stock, value | 3,484 | 3,325 |
Series C super dividend convertible preferred stock | ||
Current liabilities: | ||
Convertible preferred stock, value | $ 1,723 | $ 1,723 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Undesignated stock, par value | $ 0.01 | $ 0.01 |
Undesignated stock, shares authorized | 20,000,000 | 20,000,000 |
Undesignated stock, shares designated | 8,001,000 | 8,001,000 |
Series A 12% convertible preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Series A 12% convertible preferred stock, issued | 1,377,500 | 1,402,500 |
Series A 12% convertible preferred stock, outstanding | 1,377,500 | 1,402,500 |
Series A 12% convertible preferred stock, liquidation value | $ 1,377,500 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, issued | 23,929,244 | 22,277,283 |
Common stock, outstanding | 23,929,244 | 22,277,283 |
Series B-1 12% redeemable convertible preferred stock | ||
Convertible preferred stock, shares authorized | 900,000 | 900,000 |
Convertible preferred stock, shares issued | 900,000 | 900,000 |
Convertible preferred stock, shares outstanding | 900,000 | 900,000 |
Convertible preferred stock, redemption value | $ 1,800,000 | |
Convertible preferred stock, liquidation value | $ 1,800,000 | |
Series B-2 12% redeemable convertible preferred stock | ||
Convertible preferred stock, shares authorized | 2,100,000 | 2,100,000 |
Convertible preferred stock, shares issued | 2,100,000 | 2,100,000 |
Convertible preferred stock, shares outstanding | 2,100,000 | 2,100,000 |
Convertible preferred stock, redemption value | $ 4,200,000 | |
Convertible preferred stock, liquidation value | $ 4,200,000 | |
Series C super dividend convertible preferred stock | ||
Convertible preferred stock, shares authorized | 1,000 | 1,000 |
Convertible preferred stock, shares issued | 176 | 176 |
Convertible preferred stock, shares outstanding | 176 | 176 |
Convertible preferred stock, redemption value | $ 5,581,000 | |
Convertible preferred stock, liquidation value | $ 1,760,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating expenses: | ||||
Research and development | $ 4,464 | $ 1,979 | $ 10,200 | $ 6,345 |
General and administrative | 1,435 | 1,498 | 5,196 | 5,351 |
Total operating expenses | 5,899 | 3,477 | 15,396 | 11,696 |
Total operating loss | (5,899) | (3,477) | (15,396) | (11,696) |
Other income (expense): | ||||
Interest income | 12 | 12 | 40 | 29 |
Loss from equity method investment in Galectin Sciences, LLC | (53) | (390) | ||
Total other income (expense) | 12 | (41) | 40 | (361) |
Net loss | (5,887) | (3,518) | (15,356) | (12,057) |
Preferred stock dividends | (208) | (278) | (629) | (763) |
Preferred stock accretion | (57) | (57) | (172) | (172) |
Net loss applicable to common stockholders | $ (6,152) | $ (3,853) | $ (16,157) | $ (12,992) |
Net loss per common share - basic and diluted | $ (0.26) | $ (0.17) | $ (0.69) | $ (0.60) |
Weighted average common shares outstanding - basic and diluted | 23,793 | 22,051 | 23,531 | 21,732 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (15,356) | $ (12,057) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 6 | 8 |
Stock-based compensation expense | 2,527 | 3,271 |
Loss from equity method investment in Galectin Sciences LLC | 390 | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | 350 | 108 |
Accounts payable and accrued expenses (Notes 2 and 8) | 91 | (1,033) |
Net cash used in operating activities | (12,382) | (9,313) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Equity method investment in Galectin Sciences LLC | (400) | |
Net cash used in investing activities | (400) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net proceeds from issuance of common stock and warrants | 4,573 | 28,238 |
Proceeds from exercise of common stock warrants and options | 2,187 | |
Net cash provided by financing activities | 4,573 | 30,425 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (7,809) | 20,712 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 29,128 | 10,489 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 21,319 | 31,201 |
NONCASH FINANCING ACTIVITIES: | ||
Payment of preferred stock dividends in common stock | $ 629 | $ 763 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation | 1. Basis of Presentation Galectin Therapeutics Inc. (the “Company”) is a clinical stage biopharmaceutical company that is applying its leadership in galectin science and drug development to create new therapies for fibrotic disease and cancer. These candidates are based on the Company’s targeting of galectin proteins which are key mediators of biologic and pathologic function. These compounds also may have application for drugs to treat other diseases and chronic health conditions. The unaudited condensed consolidated financial statements as reported in this Quarterly Report on Form 10-Q reflect all adjustments which are, in the opinion of management, necessary to present fairly the financial position of the Company as of September 30, 2015 and the results of its operations for the three and nine months ended September 30, 2015 and 2014 and its cash flows for the nine months ended September 30, 2015 and 2014. All adjustments made to the interim financial statements include all those of a normal and recurring nature. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date these financial statements are available to be issued. The results for interim periods are not necessarily indicative of results which may be expected for any other interim period or for the full year. The unaudited condensed consolidated financial statements of the Company should be read in conjunction with its Annual Report on Form 10-K for the year ended December 31, 2014. The Company has operated at a loss since its inception and has had no significant revenues. The Company anticipates that losses will continue for the foreseeable future. At September 30, 2015, the Company had $21.3 million of unrestricted cash and cash equivalents available to fund future operations. The Company believes that with the cash on hand at September 30, 2015, there is sufficient cash to fund currently planned operations through September 30, 2016. The Company’s ability to fund operations after its current cash resources are exhausted depends on its ability to obtain additional financing or achieve profitable operations, as to which no assurances can be given. Accordingly, based on the forecasts and estimates underlying the Company’s current operating plan, the financial statements do not currently include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company was founded in July 2000, was incorporated in the State of Nevada in January 2001 under the name “Pro-Pharmaceuticals, Inc.,” and changed its name to “Galectin Therapeutics Inc.” on May 26, 2011. On March 23, 2012, the Company began trading on The NASDAQ Capital Market under the symbol GALT. Immediately prior to March 23, 2012, the Company was traded on the Over-the Counter Bulletin Board (“OTCBB”) under the symbol GALT.OB. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2015 | |
Accrued Expenses | 2. Accrued Expenses Accrued expenses consist of the following: September 30, December 31, (in thousands) Legal and accounting fees $ 233 $ 118 Accrued compensation 485 604 Accrued clinical trial costs 73 — Other 6 7 Total $ 797 $ 729 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation | 3. Stock-Based Compensation Following is the stock-based compensation expense related to common stock options, common stock, restricted common stock and common stock warrants: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in thousands) Research and development $ 237 $ 224 $ 780 $ 1,083 General and administrative 556 653 1,747 2,188 Total stock-based compensation expense $ 793 $ 877 $ 2,527 $ 3,271 The following table summarizes the stock option activity in the Company’s equity incentive plans from December 31, 2014 through September 30, 2015: Shares Weighted Average Outstanding, December 31, 2014 3,332,617 $ 5.79 Granted 454,000 3.23 Exercised (95,574 ) 1.80 Options forfeited/cancelled (348,718 ) 4.42 Outstanding, September 30, 2015 3,342,325 $ 5.70 As of September 30, 2015, there was $3,131,000 of unrecognized compensation related to 914,812 unvested options, which is expected to be recognized over a weighted–average period of approximately 1.76 years. The weighted-average grant date fair value for options granted during the nine months ended September 30, 2015 and 2014 was $2.60 and $10.75, respectively. The Company granted 304,000 stock options in January 2015, of which 76,000 options vested upon grant with the remaining 228,000 options vesting over 3 years. Approximately $173,000 of non-cash, stock-based compensation expense was recorded in the first quarter of 2015 related to the options granted in January 2015 that were vested upon the grant date. The fair value of all other options granted is determined using the Black-Scholes option-pricing model. The following weighted average assumptions were used: Nine 2015 2014 Risk-free interest rate 1.65 % 1.58 % Expected life of the options 6.0 years 6.0 years Expected volatility of the underlying stock 101 % 114 % Expected dividend rate 0 % 0 % The following table summarizes the restricted stock grant activity in the Company’s equity incentive plans from December 31, 2014 through September 30, 2015: Shares Outstanding, December 31, 2014 416,670 Granted 337,935 Exercised — Options forfeited/cancelled — Outstanding, September 30, 2015 754,605 On March 12, 2015, the Company granted 81,352 shares of restricted stock to non-employee directors as a component of their compensation. A total of 77,784 shares were issued to seven directors representing non-cash compensation cost of $280,000 which will be recognized on a straight-line basis from the grant date through May 20, 2016, when the restricted shares will vest in full. A total of 3,568 shares were issued to two directors, who were not nominated for reelection, representing non-cash compensation cost of $12,845 that will be recognized on a straight-line basis from the grant date through May 21, 2015, when the restricted shares will vest in full. On April 8, 2015, the Company granted 177,618 shares of restricted stock to non-employee directors in exchange for cancelation of 222,615 stock options. As the exchange was made at fair value, there was no additional non-cash compensation expense recorded in accordance with FASB ASC 718-20. Additionally, on April 8, 2015, the Company granted 71,378 shares of restricted stock to one non-employee director representing $236,975 of non-cash compensation expense which will be recorded on a straight-line basis from grant date to May 20, 2016, when the restricted shares will vest in full. Also, in April and May 2015, the Company granted a total of 7,587 shares of restricted stock to four non-employee directors for service as committee chairs or lead independent director representing $23,500 of non-cash compensation expense which will be recorded on a straight-line basis from grant date to May 20, 2016, when the restricted shares will vest in full. In January 2014, the Company entered into an agreement with a consultant that provided for the grant of 3,000 shares of common stock. The Company recognized an expense of $25,000, representing the fair value of the common stock, during the three months ended March 31, 2014. |
Common Stock Warrants
Common Stock Warrants | 9 Months Ended |
Sep. 30, 2015 | |
Common Stock Warrants | 4. Common Stock Warrants The following table summarizes the common stock warrant activity from December 31, 2014 through September 30, 2015: Shares Weighted Average Outstanding, December 31, 2014 5,470,995 $ 3.67 Granted — — Exercised — — Forfeited/cancelled (100,000 ) 4.26 Outstanding, September 30, 2015 5,370,995 $ 3.64 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value of Financial Instruments | 5. Fair Value of Financial Instruments The Company has certain financial assets and liabilities recorded at fair value. Fair values determined by Level 1 inputs utilize observable data such as quoted prices in active markets. Fair values determined by Level 2 inputs utilize data points other than quoted prices in active markets that are observable either directly or indirectly. Fair values determined by Level 3 inputs utilize unobservable data points in which there is little or no market data, which require the reporting entity to develop its own assumptions. The carrying amounts reflected in the consolidated balance sheets for cash equivalents, accounts payable and accrued expenses approximates their carrying value due to their short-term nature. There were no level 2 or level 3 assets held at fair value at September 30, 2015 or December 31, 2014. |
Loss Per Share
Loss Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Loss Per Share | 6. Loss Per Share Basic net loss per common share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares and other potential common shares then outstanding. Potential common shares consist of common shares issuable upon the assumed exercise of in-the-money stock options and warrants and potential common shares related to the conversion of the preferred stock. The computation of diluted net loss per share does not assume the issuance of common shares that have an anti-dilutive effect on net loss per share. Dilutive shares which could exist pursuant to the exercise of outstanding stock instruments and which were not included in the calculation because their affect would have been anti-dilutive are as follows: September 30, 2015 September 30, 2014 Warrants to purchase shares of common stock 5,370,995 5,450,995 Options to purchase shares of common stock 3,342,325 3,328,517 Unvested shares of restricted common stock 337,935 — Shares of common stock issuable upon conversion of preferred stock 2,522,936 2,527,103 11,574,191 11,306,615 |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2015 | |
Common Stock | 7. Common Stock 2014 At Market Issuance of Common Stock On March 30, 2014, the Company entered into an At Market Issuance Sales Agreement (the “2014 At Market Agreement”) with a sales agent under which the Company may issue and sell shares of its common stock having an aggregate offering price of up to $30.0 million from time to time through the sales agent. Sales of the Company’s common stock through the sales agent, if any, will be made by any method that is deemed an “at the market” offering as defined by the U.S. Securities and Exchange Commission. The Company will pay to the sales agent a commission rate equal to 3.0% of the gross proceeds from the sale of any shares of common stock sold through the sales agent under the 2014 At Market Agreement. As of December 31, 2014, the Company had issued 217,622 shares of its common stock through its 2014 At Market Agreement at an average price of $5.49 per share resulting in gross proceeds of approximately $1,196,000. The Company incurred commissions of approximately $36,000 resulting in net proceeds of approximately $1,159,000 as of December 31, 2014. In three months ended March 31, 2015, the Company issued 1,279,416 shares of common stock for net proceeds of approximately $4,532,000 under the 2014 At Market Agreement. In three months ended September 30, the Company issued 17,800 shares of common stock for net proceeds of approximately $41,000 under the 2014 At Market Agreement. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies | 8. Commitments and Contingencies Shareholder Class Actions and Derivative Lawsuits Between July 30, 2014, and August 6, 2014, three putative class action complaints were filed in the United States District Court for the District of Nevada (the “Nevada District Court”) against the Company and certain of its officers and directors on behalf of all persons who purchased or otherwise acquired the Company’s stock between January 6, 2014 and July 28, 2014. By order entered August 22, 2014, the Nevada District Court consolidated the three cases, relieved the defendants of any obligation to respond to the complaints then on file, and provided that defendants may respond to a consolidated amended complaint to be filed following appointment of a lead plaintiff(s) pursuant to the Private Securities Litigation Reform Act of 1995. By order dated January 5, 2015, the Nevada District Court granted the defendants’ motion to transfer the consolidated action to the United States District Court for the Northern District of Georgia (the “Court”). On March 24, 2015, the Court appointed Glyn Hotz as the lead plaintiff (“Plaintiff”). Plaintiff filed his Consolidated Class Action Complaint (the “Complaint”) on May 8, 2015. The Complaint asserts claims on behalf of a putative class of all persons who purchased or otherwise acquired the Company’s common stock between October 25, 2013 and July 28, 2014. The Complaint alleges that the Company and certain of its officers and directors (the “Class Action Individual Defendants”) violated Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and SEC Rule 10b-5 through allegedly false or misleading statements in certain SEC filings, press releases and other public statements. The Complaint further alleges that the Class Action Individual Defendants and one of the Company’s shareholders face liability for the alleged Section 10(b) and Rule 10b-5 violations pursuant to Section 20(a) of the Exchange Act. The Complaint seeks class certification, unspecified monetary damages, costs, and attorneys’ fees. The Company disputes the allegations and filed a motion to dismiss the Complaint on June 26, 2015. The parties presented oral argument regarding the motion to dismiss on November 3, 2015. As of the date of this filing, the motion to dismiss remains pending. On August 1 and 25, 2014, persons claiming to be Galectin shareholders filed putative shareholder derivative complaints in the Nevada District Court, seeking recovery on behalf of the Company against certain of the Company’s directors and officers. On September 10, 2014, the Nevada District Court entered an order consolidating the two cases, relieving the defendants of any obligation to respond to the initial complaints, and providing that defendants may respond to a consolidated complaint to be filed by the plaintiffs. On January 5, 2015, the Nevada District Court granted Defendants’ motion to transfer the consolidated putative derivative litigation to the United States District Court for the Northern District of Georgia. The plaintiffs filed a consolidated complaint on February 27, 2015. On April 6, 2015, the Company and defendants filed motions to dismiss the consolidated complaint. Rather than respond to those motions, the plaintiffs sought and obtained leave to file an amended complaint. Plaintiffs filed their amended complaint (the “Complaint”) on May 26, 2015. The Complaint alleges that certain of the Company’s directors and officers (the “Derivative Action Individual Defendants”) breached their fiduciary duties to the Company’s shareholders by causing or permitting the Company to make allegedly false and misleading public statements concerning the Company’s financial and business prospects. The Complaint also alleges that the Derivative Action Individual Defendants violated the federal securities laws by allegedly making false or misleading statements of material fact in the Company’s proxy filings, committed waste of corporate assets, were unjustly enriched, and that certain defendants breached their fiduciary duties through allegedly improper sales of Galectin stock. In addition, the Complaint alleges that the Derivative Action Individual Defendants and one of the Company’s shareholders aided and abetted the alleged breaches of fiduciary duties. The Complaint seeks unspecified monetary damages on behalf of the Company, corporate governance reforms, disgorgement of profits, benefits and compensation by the defendants, costs, and attorneys’ and experts’ fees. The Company and defendants filed motions to dismiss the Complaint on July 8, 2015. The parties presented oral argument regarding the motions to dismiss on November 3, 2015. As of the date of this filing, those motions to dismiss remain pending. On August 29, 2014, another alleged Galectin shareholder filed a putative shareholder derivative complaint in state court in Las Vegas, Nevada, seeking recovery on behalf of the Company against the same Galectin directors and officers who are named as defendants in the derivative litigation pending in the United States District Court for the Northern District of Georgia (the “Georgia Federal Action”). The plaintiff in the Nevada action subsequently filed first and second amended complaints. The second amended complaint alleges claims for breach of fiduciary duties, unjust enrichment, and waste of corporate assets, based on allegations that are substantially similar to those asserted in the Georgia Federal Action (except that the Nevada action does not allege violations of the federal securities laws and does not assert any claim against the Galectin shareholder named as a defendant in the Georgia Federal Action), and seeks unspecified monetary damages on behalf of the Company, corporate governance reforms, disgorgement of profits, benefits and compensation by the defendants, costs, and attorneys’ and experts’ fees. The Company and defendants filed motions to dismiss the second amended complaint on April 22, 2015. On April 29, 2015, the plaintiffs in the Georgia Federal Action filed a motion to intervene in the Nevada action which, among other things, raised questions regarding the Nevada plaintiff’s standing. Thereafter, the Nevada plaintiff filed a motion to join additional plaintiffs. At a hearing held on June 11, 2015, the Nevada court: (i) granted the Georgia Federal Action plaintiffs’ motion to intervene; (ii) directed the Georgia Federal Action plaintiffs to file a complaint in intervention; (iii) directed the Nevada plaintiff to file a motion for leave to file a further amended complaint to add additional plaintiffs; (iv) stated that the defendants’ motions to dismiss the second amended complaint were denied “at this point;” (v) ordered the Nevada action stayed until December 11, 2015; and (vi) directed the parties to submit a status report on December 11, 2015, updating the court on the progress and status of the Georgia Federal Action. Estimating an amount or range of possible losses resulting from litigation proceedings is inherently difficult and requires an extensive degree of judgment, particularly where the matters involve indeterminate claims for monetary damages, are in the early stages of the proceedings, and are subject to appeal. In addition, because most legal proceedings are resolved over extended periods of time, potential losses are subject to change due to, among other things, new developments, changes in legal strategy, the outcome of intermediate procedural and substantive rulings and other parties’ settlement posture and their evaluation of the strength or weakness of their case against us. For these reasons, we are currently unable to predict the ultimate timing or outcome of, or reasonably estimate the possible losses or a range of possible losses resulting from, the matters described above. Based on information currently available, the Company does not believe that any reasonably possible losses arising from currently pending legal matters will be material to the Company’s results of operations or financial condition. However, in light of the inherent uncertainties involved in such matters, an adverse outcome in one or more of these matters could materially and adversely affect the Company’s financial condition, results of operations or cash flows in any particular reporting period. Other Legal Proceedings The Company records accruals for such contingencies to the extent that the Company concludes that their occurrence is probable and the related damages are estimable. There are no other pending legal proceedings except as noted above. |
Galectin Sciences LLC
Galectin Sciences LLC | 9 Months Ended |
Sep. 30, 2015 | |
Galectin Sciences LLC | 9. Galectin Sciences LLC In January 2014, we created Galectin Sciences, LLC (the “LLC” or “Investee”), a collaborative joint venture co-owned by SBH Sciences, Inc. (“SBH”), to research and develop small organic molecule inhibitors of galectin-3 for oral administration. The LLC was initially capitalized with a $400,000 cash investment to fund future research and development activities, which was provided by the Company, and specific in-process research and development (“IPR&D”) contributed by SBH. The estimated fair value of the IPR&D contributed by SBH, on the date of contribution, was $400,000. Initially, the Company and SBH had a 50% equity ownership interest in the LLC, with neither party having control over the LLC. Accordingly, from inception through the fourth quarter of 2014, the Company accounted for its investment in the LLC using the equity method of accounting. Under the equity method of accounting, the Company’s investment was initially recorded at cost with subsequent adjustments to the carrying value to recognize additional investments in or distributions from the Investee, as wells the Company’s share of the Investee’s earnings, losses and/or changes in capital. The estimated fair value of the IPR&D contributed to the LLC was immediately expensed upon contribution as there was no alternative future use available at the point of contribution. The operating agreement provides that if either party does not desire to contribute its equal share of funding required after the initial capitalization, then the other party, providing all of the funding, will have its ownership share increased in proportion to the total amount contributed from inception. In the fourth quarter of 2014, after the LLC had expended the $400,000 in cash, SBH decided not to contribute its share of the funding required. As a result, the Company contributed the $93,000, $159,000, $172,000 and $160,000 needed for the fourth quarter of 2014, first quarter of 2015, the second quarter of 2015 and third quarter of 2015 expenses of the LLC, respectively. As a result, the Company’s ownership percentage in the LLC is 71.1% at September 30, 2015. The Company accounts for the interest in the LLC as a consolidated, less than wholly owned subsidiary. The Company’s portion of the LLC’s net loss for the year ended December 31, 2014, prior to the change in accounting discussed previously, was $400,000, which includes the Company’s proportionate share of the non-cash charge associated with the contributed IPR&D of $200,000. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events | 10. Subsequent Events The Company has evaluated all events or transactions that occurred through the date on which the financial statements were issued, with no items noted for disclosure or recording in the consolidated financial statements as of September 30, 2015. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accrued Expenses | Accrued expenses consist of the following: September 30, December 31, (in thousands) Legal and accounting fees $ 233 $ 118 Accrued compensation 485 604 Accrued clinical trial costs 73 — Other 6 7 Total $ 797 $ 729 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation Expense Related to Common Stock Options, Common Stock, Restricted Common Stock and Common Stock Warrants | Following is the stock-based compensation expense related to common stock options, common stock, restricted common stock and common stock warrants: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in thousands) Research and development $ 237 $ 224 $ 780 $ 1,083 General and administrative 556 653 1,747 2,188 Total stock-based compensation expense $ 793 $ 877 $ 2,527 $ 3,271 |
Summary of Stock Option Activity | The following table summarizes the stock option activity in the Company’s equity incentive plans from December 31, 2014 through September 30, 2015: Shares Weighted Average Outstanding, December 31, 2014 3,332,617 $ 5.79 Granted 454,000 3.23 Exercised (95,574 ) 1.80 Options forfeited/cancelled (348,718 ) 4.42 Outstanding, September 30, 2015 3,342,325 $ 5.70 |
Weighted Average Assumptions Used to Determine Fair Value of Options Granted | The fair value of all other options granted is determined using the Black-Scholes option-pricing model. The following weighted average assumptions were used: Nine 2015 2014 Risk-free interest rate 1.65 % 1.58 % Expected life of the options 6.0 years 6.0 years Expected volatility of the underlying stock 101 % 114 % Expected dividend rate 0 % 0 % |
Summary of Restricted Stock Grant Activity | The following table summarizes the restricted stock grant activity in the Company’s equity incentive plans from December 31, 2014 through September 30, 2015: Shares Outstanding, December 31, 2014 416,670 Granted 337,935 Exercised — Options forfeited/cancelled — Outstanding, September 30, 2015 754,605 |
Common Stock Warrants (Tables)
Common Stock Warrants (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Common Stock Warrant Activity | The following table summarizes the common stock warrant activity from December 31, 2014 through September 30, 2015: Shares Weighted Average Outstanding, December 31, 2014 5,470,995 $ 3.67 Granted — — Exercised — — Forfeited/cancelled (100,000 ) 4.26 Outstanding, September 30, 2015 5,370,995 $ 3.64 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Dilutive Shares Which Could Exist Pursuant to Exercise of Outstanding Stock Instruments and Which were not Included in Calculation | Dilutive shares which could exist pursuant to the exercise of outstanding stock instruments and which were not included in the calculation because their affect would have been anti-dilutive are as follows: September 30, 2015 September 30, 2014 Warrants to purchase shares of common stock 5,370,995 5,450,995 Options to purchase shares of common stock 3,342,325 3,328,517 Unvested shares of restricted common stock 337,935 — Shares of common stock issuable upon conversion of preferred stock 2,522,936 2,527,103 11,574,191 11,306,615 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Basis of Presentation [Line Items] | ||||
Unrestricted cash and cash equivalents | $ 21,319 | $ 29,128 | $ 31,201 | $ 10,489 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Accrued Liabilities [Line Items] | ||
Legal and accounting fees | $ 233 | $ 118 |
Accrued compensation | 485 | 604 |
Accrued clinical trial costs | 73 | |
Other | 6 | 7 |
Total | $ 797 | $ 729 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense Related to Common Stock Options, Restricted Common Stock and Common Stock Warrants (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 793 | $ 877 | $ 2,527 | $ 3,271 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 237 | 224 | 780 | 1,083 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 556 | $ 653 | $ 1,747 | $ 2,188 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - $ / shares | 1 Months Ended | 9 Months Ended |
Jan. 31, 2015 | Sep. 30, 2015 | |
Shares | ||
Beginning Balance | 3,332,617 | 3,332,617 |
Granted | 304,000 | 454,000 |
Exercised | (95,574) | |
Options forfeited/cancelled | (348,718) | |
Ending Balance | 3,342,325 | |
Weighted Average Exercise Price | ||
Beginning Balance | $ 5.79 | $ 5.79 |
Granted | 3.23 | |
Exercised | 1.80 | |
Options forfeited/cancelled | 4.42 | |
Ending Balance | $ 5.70 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | Apr. 08, 2015USD ($)Directorshares | Mar. 12, 2015USD ($)Directorshares | May. 31, 2015USD ($)Directorshares | Jan. 31, 2015shares | Jan. 31, 2014shares | Sep. 30, 2015USD ($)shares | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($)$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Unrecognized compensation cost | $ | $ 3,131,000 | $ 3,131,000 | |||||||||
Unvested option | 914,812 | 914,812 | |||||||||
Unrecognized compensation cost, recognition period | 1 year 9 months 4 days | ||||||||||
Weighted-average grant-date fair values of options granted | $ / shares | $ 2.60 | $ 10.75 | |||||||||
Number of options granted | 304,000 | 454,000 | |||||||||
Number of options vested | 76,000 | ||||||||||
Stock-based compensation expense | $ | $ 793,000 | $ 877,000 | $ 2,527,000 | $ 3,271,000 | |||||||
Options vesting over 3 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Unvested option | 228,000 | 228,000 | |||||||||
Consultant | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock-based compensation expense | $ | $ 25,000 | ||||||||||
Common stock options granted, shares | 3,000 | ||||||||||
Fair market value of shares | $ | $ 25,000 | ||||||||||
Stock Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options vesting period | 3 years | ||||||||||
Stock-based compensation expense | $ | $ 173,000 | ||||||||||
Restricted Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock awards granted | 177,618 | 81,352 | 337,935 | ||||||||
Non-cash stock-based compensation expense to be recognized | $ | $ 0 | ||||||||||
Restricted stock awards cancelled | 222,615 | ||||||||||
Restricted Stock | Non Employees Seven Board Of Directors | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock awards granted | 77,784 | ||||||||||
Number of non-employee directors | Director | 7 | ||||||||||
Non-cash stock-based compensation expense to be recognized | $ | $ 280,000 | ||||||||||
Share based compensation, cliff vest in full date | May 20, 2016 | ||||||||||
Restricted Stock | Non Employees Two Board Of Directors | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock awards granted | 3,568 | ||||||||||
Number of non-employee directors | Director | 2 | ||||||||||
Non-cash stock-based compensation expense to be recognized | $ | $ 12,845 | ||||||||||
Share based compensation, cliff vest in full date | May 21, 2015 | ||||||||||
Restricted Stock | Non Employee Board Of Directors Three | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock awards granted | 71,378 | ||||||||||
Number of non-employee directors | Director | 1 | ||||||||||
Non-cash stock-based compensation expense to be recognized | $ | $ 236,975 | ||||||||||
Share based compensation, cliff vest in full date | May 20, 2016 | ||||||||||
Restricted Stock | Non Employee Board Of Directors Four | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock awards granted | 7,587 | 7,587 | |||||||||
Number of non-employee directors | Director | 4 | 4 | |||||||||
Non-cash stock-based compensation expense to be recognized | $ | $ 23,500 | $ 23,500 | |||||||||
Share based compensation, cliff vest in full date | May 20, 2016 | May 20, 2016 |
Weighted Average Assumptions Us
Weighted Average Assumptions Used to Determine Fair Value of Options Granted (Detail) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.65% | 1.58% |
Expected life of the options | 6 years | 6 years |
Expected volatility of the underlying stock | 101.00% | 114.00% |
Expected dividend rate | 0.00% | 0.00% |
Summary of Restricted Stock Gra
Summary of Restricted Stock Grant Activity (Detail) - Restricted Stock - shares | Apr. 08, 2015 | Mar. 12, 2015 | Sep. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning Balance | 416,670 | ||
Granted | 177,618 | 81,352 | 337,935 |
Exercised | 0 | ||
Options forfeited/cancelled | 0 | ||
Ending Balance | 754,605 |
Common Stock Warrant Activity (
Common Stock Warrant Activity (Detail) - Warrant | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Shares | |
Beginning Balance | shares | 5,470,995 |
Granted | shares | 0 |
Exercised | shares | 0 |
Forfeited/cancelled | shares | (100,000) |
Ending Balance | shares | 5,370,995 |
Weighted Average Exercise Price | |
Outstanding, December 31, 2014 | $ 3.67 |
Granted | 0 |
Exercised | 0 |
Forfeited/cancelled | 4.26 |
Outstanding, September 30, 2015 | $ 3.64 |
Dilutive Shares Which Could Exi
Dilutive Shares Which Could Exist Pursuant to Exercise of Outstanding Stock Instruments and Which were not Included in Calculation (Detail) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive shares not included in calculation | 11,574,191 | 11,306,615 |
Warrant | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive shares not included in calculation | 5,370,995 | 5,450,995 |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive shares not included in calculation | 3,342,325 | 3,328,517 |
Unvested Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive shares not included in calculation | 337,935 | |
Contingently Issuable Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive shares not included in calculation | 2,522,936 | 2,527,103 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Mar. 30, 2014 | |
Class of Stock [Line Items] | ||||||
Proceeds from issuance of common stock | $ 4,573,000 | $ 28,238,000 | ||||
At Market Agreement | ||||||
Class of Stock [Line Items] | ||||||
Aggregate offering price | $ 30,000,000 | |||||
Commission to sales agent as a percentage of gross proceeds | 3.00% | |||||
Shares of common stock issued | 17,800 | 1,279,416 | 217,622 | |||
Price of common stock per share | $ 5.49 | |||||
Gross proceeds from sale of common stock | $ 1,196,000 | |||||
Commissions | 36,000 | |||||
Proceeds from issuance of common stock | $ 41,000 | $ 4,532,000 | $ 1,159,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Aug. 06, 2014LegalMatter |
Commitment And Contingencies [Line Items] | |
Number of putative class action complaints filed | 3 |
Galectin Science LLC - Addition
Galectin Science LLC - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jan. 31, 2014 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Investments in and Advances to Affiliates [Line Items] | |||||||||
Equity method investment in Galectin Sciences LLC | $ 400,000 | ||||||||
Loss from equity method investment in Galectin Sciences, LLC | $ (53,000) | $ (390,000) | |||||||
Galectin Sciences, LLC | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Equity method investment in Galectin Sciences LLC | $ 400,000 | ||||||||
Subsequent capital contribution | $ 160,000 | $ 172,000 | $ 159,000 | $ 93,000 | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||||
Ownership Percentage | 71.10% | ||||||||
Loss from equity method investment in Galectin Sciences, LLC | $ (400,000) | ||||||||
Non-cash charge for in-process research and development | $ 200,000 | ||||||||
Galectin Sciences, LLC | SBH Sciences, Inc | In Process Research and Development | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Estimated fair value of the IPR&D Contributed by SBH | $ 400,000 |