MEI Pharma (MEIP) 10-K 5 Sep 17 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Aug. 30, 2017	Dec. 31, 2016
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Trading Symbol	MEIP
Entity Registrant Name	MEI Pharma, Inc.
Entity Central Index Key	1,262,104
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		36,938,970
Entity Public Float			$ 52.9

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Current assets:
Cash and cash equivalents	$ 8,458	$ 10,837
Short-term investments	45,107	35,081
Total cash, cash equivalents and short-term investments	53,565	45,918
Prepaid expenses and other current assets	1,758	831
Total current assets	55,323	46,749
Intangible assets, net	331	366
Property and equipment, net	50	49
Total assets	55,704	47,164
Current liabilities:
Accounts payable	585	1,079
Accrued liabilities	3,285	4,433
Deferred revenues	996
Total current liabilities	4,866	5,512
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $0.01 par value; 100 shares authorized; none outstanding
Common stock, $0.00000002 par value; 113,000 shares authorized; 36,772 and 34,156 shares issued and outstanding at June 30, 2017 and 2016, respectively.	0	0
Additional paid-in-capital	225,169	218,653
Accumulated deficit	(174,331)	(177,001)
Total stockholders' equity	50,838	41,652
Total liabilities and stockholders' equity	$ 55,704	$ 47,164

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Jun. 30, 2016
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.00	$ 0.00
Common stock, shares authorized	113,000,000	113,000,000
Common stock, shares issued	36,772,000	34,156,000
Common stock, shares outstanding	36,772,000	34,156,000

Statements of Operations

Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Revenues:
License revenue	$ 20,880
Research and development revenue	2,369
Total revenues	23,249
Operating expenses:
Cost of research and development revenue	5,000
Research and development	7,237	$ 13,403	$ 23,823
General and administrative	8,628	7,601	8,948
Total operating expenses	20,865	21,004	32,771
Income (loss) from operations	2,384	(21,004)	(32,771)
Other income (expense):
Interest and dividend income	287	143	78
Income tax expense	(1)	(1)	(1)
Net income (loss)	$ 2,670	$ (20,862)	$ (32,694)
Net income (loss) per share, basic	$ 0.07	$ (0.61)	$ (1.16)
Net income (loss) per share, diluted	$ 0.07	$ (0.61)	$ (1.16)
Shares used in computing net income (loss) per share:
Basic	36,813	34,400	28,204
Diluted	36,938	34,400	28,204

Statement of Stockholders' Equi

Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Shares	Additional paid in capital	Accumulated Deficit
Beginning Balance (in shares) at Jun. 30, 2014		21,607
Beginning Balance at Jun. 30, 2014	$ 45,192		$ 168,637	$ (123,445)
Net income (loss)	(32,694)			(32,694)
Issuance of common stock	43,070		43,070
Issuance of common stock (shares)		11,500
Exercise of warrants	0	$ 0	0	0
Exercise of warrants (shares)		1,049
Share-based compensation expense	4,223		4,223
Ending Balance (in shares) at Jun. 30, 2015		34,156
Ending Balance at Jun. 30, 2015	59,791		215,930	(156,139)
Net income (loss)	(20,862)			(20,862)
Share-based compensation expense	2,723		2,723
Ending Balance (in shares) at Jun. 30, 2016		34,156
Ending Balance at Jun. 30, 2016	41,652		218,653	(177,001)
Net income (loss)	2,670			2,670
Issuance of common stock	4,212		4,212
Issuance of common stock (shares)		2,616
Share-based compensation expense	2,304		2,304
Ending Balance (in shares) at Jun. 30, 2017		36,772
Ending Balance at Jun. 30, 2017	$ 50,838		$ 225,169	$ (174,331)

Statements of Cash Flows

Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ 2,670	$ (20,862)	$ (32,694)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Share-based compensation	2,304	2,723	4,223
Depreciation and amortization	85	58	64
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(927)	(329)	(5)
Accounts payable	(494)	216	(845)
Accrued liabilities	(1,148)	337	1,188
Deferred revenue	996
Net cash provided by (used in) operating activities	3,486	(17,857)	(28,069)
Cash flows from investing activities:
Purchases of property and equipment	(51)	(4)	(15)
Purchases of short-term investments	(60,123)	(55,238)	(70,077)
Proceeds from maturity of short-term investments	50,097	65,214	60,036
Net cash (used in) provided by investing activities	(10,077)	9,972	(10,056)
Cash flows from financing activities:
Net proceeds from issuance of common stock	4,212		43,070
Net cash provided by financing activities	4,212		43,070
Net (decrease) increase in cash and cash equivalents	(2,379)	(7,885)	4,945
Cash and cash equivalents at beginning of the period	10,837	18,722	13,777
Cash and cash equivalents at end of the period	8,458	10,837	18,722
Supplemental cash flow information:
Income taxes paid	$ (1)	$ (1)	$ (1)

The Company and Summary of Sign

The Company and Summary of Significant Accounting Policies	12 Months Ended
	Jun. 30, 2017
The Company and Summary of Significant Accounting Policies	Note 1. The Company and Summary of Significant Accounting Policies The Company We are an oncology company focused on the clinical development of novel therapies for cancer. Our common stock is listed on the NASDAQ Capital Market under the symbol “MEIP”. We were incorporated in December 2000 as a wholly-owned subsidiary of Novogen Limited (“Novogen”). In December 2012, Novogen distributed to its shareholders substantially all of its MEI Pharma common stock. Our business purpose is the development of drugs for the treatment of cancer. Our portfolio of drug candidates includes Pracinostat, an oral HDAC inhibitor that is being developed in combination with azacitidine for the treatment of adults with newly diagnosed AML who are unfit for intensive chemotherapy, and patients with high or very high-risk MDS. In August 2016, we entered into the Helsinn License Agreement for Pracinostat in AML, MDS and other potential indications. Our clinical development portfolio also includes ME-401, an oral inhibitor of PI3K delta currently in a Phase Ib study in patients with relapsed/refractory CLL or follicular lymphoma, and ME-344, a mitochondrial inhibitor currently in an investigator-sponsored clinical study in combination with bevacizumab for the treatment of HER2-negative breast cancer. We own exclusive worldwide rights to ME-401 and ME-344. The results of pre-clinical studies and completed clinical trials are not necessarily predictive of future results, and our current drug candidates may not have favorable results in later studies or trials. The commercial opportunity will be reduced or eliminated if competitors develop and market products that are more effective, have fewer side effects or are less expensive than our drug candidates. We will need substantial additional funds to progress the clinical trial programs for the drug candidates ME-401 and ME-344, and to develop new compounds. The actual amount of funds that will be needed are determined by a number of factors, some of which are beyond our control. Negative U.S. and global economic conditions may pose challenges to our business strategy, which relies on funding from the financial markets or collaborators. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Deferral of the Effective Date Revenue from Contracts with Customers, Principal versus Agent Considerations Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing Revenue from Contracts with Customers and Derivatives and Hedging—Rescission of SEC Guidance Revenue from Contracts with Customers—Narrow Scope Improvements and Practical Expedients In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern In February 2016, the FASB issued ASU 2016-02 Leases In March 2016, the FASB issued ASU 2016-09 Improvements to Employee Share-Based Payment Accounting In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation: Scope of Modification Accounting, Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. We use estimates that affect the reported amounts (including assets, liabilities and expenses) and related disclosures. Actual results could materially differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of cash and highly liquid investments with original maturities of three months or less when purchased. Cash is maintained at financial institutions and, at times, balances may exceed federally insured limits. We have never experienced any losses related to these balances. Short-Term Investments Investments that have maturities of greater than three months but less than one year are classified as short-term investments. As of June 30, 2017 and 2016, our short-term investments consisted of $45.1 million and $35.1 million, respectively, in U.S. government securities. The short-term investments held as of June 30, 2017 and 2016 had maturity dates of less than one year, are considered to be “held to maturity” and are carried at amortized cost. Due to the short-term maturities of these instruments, the amortized cost approximates the related fair values. As of June 30, 2017 and 2016, the gross holding gains and losses were immaterial. Fair Value of Financial Instruments The carrying amounts of financial instruments such as cash equivalents, short-term investments and accounts payable approximate the related fair values due to the short-term maturities of these instruments. We invest our excess cash in financial instruments which are readily convertible into cash, such as money market funds and U.S. government securities. The fair value of financial assets and liabilities is measured under a three-tier fair value hierarchy as follows: Level 1 fair value is determined from observable, quoted prices in active markets for identical assets or liabilities. Level 2 fair value is determined from quoted prices for similar items in active markets or quoted prices for identical or similar items in markets that are not active. Level 3 fair value is determined using the entity’s own assumptions about the inputs that market participants would use in pricing an asset or liability. Cash equivalents, where applicable, and short-term investments are classified as Level 1 as defined by the fair value hierarchy. Intangible Assets Intangible assets consist of patents acquired from S*Bio in August 2012, relating to a family of heterocyclic compounds that inhibit HDACs. Capitalized amounts are amortized on a straight-line basis over the expected life of the intellectual property of 14 years from the date of acquisition. The carrying values of intangible assets are periodically reviewed to determine if the facts and circumstances suggest that a potential impairment may have occurred. Results of operations for the years ended June 30, 2017, 2016 and 2015 do not reflect any write-downs associated with the potential impairment of intangible assets. Property and Equipment Property and equipment are stated at cost and depreciated over the estimated useful lives of the assets (generally three to seven years) using the straight-line method. Leasehold improvements are stated at cost and are amortized over the shorter of the estimated useful lives of the assets or the lease term. Revenue Recognition Payments received under commercial arrangements, such as licensing technology rights, may include non-refundable fees at the inception of the arrangements, milestone payments for specific achievements designated in the agreements, and royalties on the sale of products. The Company considers a variety of factors in determining the appropriate method of accounting under its license agreements, including whether the various elements can be separated and accounted for individually as separate units of accounting. Multiple Element Arrangements Deliverables under an arrangement will be separate units of accounting, provided (i) a delivered item has value to the customer on a standalone basis; and (ii) the arrangement includes a general right of return relative to the delivered item, and delivery or performance of the undelivered item is considered probable and substantially in the Company’s control. We account for revenue arrangements with multiple elements by separating and allocating consideration according to the relative selling price of each deliverable. If an element can be separated, an amount is allocated based upon the relative selling price of each element. We determine the relative selling price of a separate deliverable using the price we charge other customers when we sell that element separately. If the element is not sold separately and third party pricing evidence is not available, we will use our best estimate of selling price. License Fee Revenue Non-refundable, up-front fees that are not contingent on any future performance by us and require no consequential continuing involvement on our part are recognized as revenue when the license term commences and the licensed data, technology or product is delivered. We defer recognition of non-refundable upfront license fees if it has continuing performance obligations, without which the licensed data, technology, or product has no utility to the licensee separate and independent of its performance under the other elements of the applicable arrangement. The specific methodology for the recognition of the revenue is determined on a case-by-case basis according to the facts and circumstances of the applicable agreement. Research and Development Revenue Research and development revenue represents ratable recognition of fees allocated to research and development activities. We defer recognition of research and development revenue until the performance of the related research and development activities has occurred. Cost of Research and Development Revenue Cost of research and development revenue primarily includes external costs paid to third-party contractors to perform research, conduct clinical trials and develop and manufacture drug materials, and internal compensation and related personnel expenses to support our research and development revenue. All cost of research and development revenue relate to expenses incurred in connection with our development activities in accordance with the Helsinn License Agreement. Research and Development Costs Research and development costs are expensed as incurred and include costs paid to third-party contractors to perform research, conduct clinical trials and develop and manufacture drug materials. Clinical trial costs, including costs associated with third-party contractors, are a significant component of research and development expenses. We accrue research and development costs based on work performed. In determining the amount to accrue, management relies on estimates of total costs based on contract components completed, the enrollment of subjects, the completion of trials, and other events. Costs incurred related to the purchase of in-process research and development for early-stage products or products that are not commercially viable and ready for use, or have no alternative future use, are charged to expense in the period incurred. License Fees Costs incurred related to the licensing of products that have not yet received regulatory approval to be marketed, or that are not commercially viable and ready for use, or have no alternative future use, are charged to expense in the period incurred. Share-based Compensation Share-based compensation expense for employees and directors is recognized in the statement of operations based on estimated amounts, including the grant date fair value and the expected service period. For stock options, we estimate the grant date fair value using a Black-Scholes valuation model, which requires the use of multiple subjective inputs including estimated future volatility, expected forfeitures and the expected term of the awards. We estimate the expected future volatility based on the stock’s historical price volatility. The stock’s future volatility may differ from our estimated volatility at the grant date. For RSU equity awards, we estimate the grant date fair value using our closing stock price on the date of grant. Share-based compensation recorded in the statement of operations is based on the awards expected to ultimately vest and has been reduced for estimated forfeitures. The estimated forfeiture rates may differ from actual forfeiture rates which would affect the amount of expense recognized during the period. We recognize the value of the awards over the awards’ requisite service or performance periods. The requisite service period is generally the time over which the share-based awards vest. Interest and Dividend Income Interest on cash balances is recognized when earned. Dividend income is recognized when the right to receive the payment is established. Income Taxes Our income tax expense consists of current and deferred income tax expense or benefit. Current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is recognized for the future tax consequences attributable to tax credits and loss carryforwards and to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of June 30, 2017 and 2016, we have established a valuation allowance to fully reserve our net deferred tax assets. Tax rate changes are reflected in income during the period such changes are enacted. Changes in our ownership may limit the amount of net operating loss carry-forwards that can be utilized in the future to offset taxable income. The FASB Topic on Income Taxes prescribes a recognition threshold and measurement attribute criteria for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. There were no unrecognized tax benefits as of June 30, 2017 and 2016. Net Income (Loss) Per Share Basic and diluted net income (loss) per share are computed using the weighted-average number of shares of common stock outstanding during the period, less any shares subject to repurchase or forfeiture. There were no shares of common stock subject to repurchase or forfeiture for the years ended June 30, 2017, 2016 and 2015. Shares used in calculating net income (loss) per share was determined as follows (in thousands): Years ended June 30, 2017 2016 2015 Weighted average shares outstanding 36,435 34,156 28,093 Effect of vested restricted stock units 378 244 111 Weighted average shares used in calculating basic earnings per share 36,813 34,400 28,204 Effect of potentially dilutive common shares from equity awards 125 — — Weighted average shares used in calculating diluted earnings per share 36,938 34,400 28,204 Potentially dilutive shares excluded form calculation due to anti-dilutive effect 7,377 6,628 6,533 Because we were in a net loss position for the years ended June 30, 2016 and 2015, we excluded stock options, warrants, unvested RSUs and convertible preferred stock from our calculation of diluted net loss per share, and our diluted net loss per share for such years was the same as our basic net loss per share. For the years ended June 30, 2017, 2016 and 2015, we did not have any items that would be classified as other comprehensive income or losses.

Helsinn License Agreement

Helsinn License Agreement	12 Months Ended
	Jun. 30, 2017
Helsinn License Agreement	Note 2. Helsinn License Agreement In August 2016, we entered into the Helsinn License Agreement. Under the terms of the agreement, Helsinn was granted a worldwide exclusive license to develop, manufacture and commercialize Pracinostat, and is primarily responsible for funding its global development and commercialization. As compensation for such grant of rights, we received payments of $20.0 million, including a $15.0 million upfront payment and a $5.0 million payment in March 2017. In addition, we are eligible to receive up to $444 million in potential regulatory and sales-based milestones, along with royalty payments on the net sales of Pracinostat, which, in the U.S., are tiered and begin in the mid-teens. We determined that the exclusive license, development and commercialization agreement represents a multiple-element arrangement for purposes of revenue recognition. We identified the following elements, based upon deliverables under the agreement: (i) worldwide license and transfer of technology and data; (ii) completion of the conduct of certain identified clinical trials related to Pracinostat; (iii) coordination of services provided by third-party vendors related to research and development activities, for which Helsinn has agreed to reimburse such third-party expenses; and (iv) the conduct of the POC study, for which Helsinn has agreed to share third-party expenses. The license was determined to represent a separate element as it has stand-alone value and is not dependent upon the performance of the research and development activities. The research and development elements, related to the conduct of clinical trials and services provided by third-party vendors, were determined to represent separate elements as they primarily represent pass through of services performed by third parties and therefore are sold separately by other vendors. We allocated the proceeds related to the agreement to the units of accounting using the relative selling price method. We determined the estimated selling price for the license using an income approach. We determined the estimated selling price for the research and development elements based on estimated fulfillment costs plus a normal profit margin. Revenue of $20.9 million related to the license was recognized during the year ended June 30, 2017. Revenues related to the research and development elements of the arrangement are recognized based on the proportional performance of each research and development activity. Research and development revenues are recognized on a gross basis as we are the primary obligor and have discretion in supplier selection. Contemporaneously with the Helsinn License Agreement, we entered into the Helsinn Equity Agreement in August 2016, with Helsinn Investment Fund SA (the “Purchaser”). Pursuant to the terms of the Helsinn Equity Agreement, the Purchaser agreed to purchase and we agreed to issue a number of shares of our common stock determined by dividing $5,000,000 by the volume weighted-average price for shares of our common stock for the 10-trading-day-period beginning on August 1, 2016 and ending on August 12, 2016 (the “VWAP”), rounded to the nearest whole share. The VWAP was $1.911 per share. Accordingly, on August 16, 2016, we issued 2,616,431 shares of common stock. The multiple-element arrangements guidance contains a presumption that separate contracts entered into at or near the same time with the same entity or related parties were negotiated together and should be evaluated as a single agreement. Therefore, the difference between the VWAP of $1.911 per share and the closing price of our common stock on August 5, 2016 of $1.61 per share, totaling $0.8 million, has been allocated as additional consideration related to the revenue elements.

Intangible Assets

Intangible Assets	12 Months Ended
	Jun. 30, 2017
Intangible Assets	Note 3. Intangible Assets Intangible assets consisted of the following, in thousands: June 30, 2017 2016 S*Bio Patents - Gross $ 500 $ 500 S*Bio Patents - Accumulated amortization (169 ) (134 ) Intangible assets, net $ 331 $ 366 Amortization expense of intangible assets for the years ended June 30, 2017, 2016 and 2015 was $35,000, $35,000 and $34,000, respectively. We expect to record amortization of $35,000 per year through 2026 for our S*Bio patents.

Property and Equipment

Property and Equipment	12 Months Ended
	Jun. 30, 2017
Property and Equipment	Note 4. Property and Equipment Property and equipment consisted of the following, in thousands: June 30, 2017 2016 Furniture and equipment $ 95 $ 127 Less: accumulated depreciation (45 ) (78 ) Property and equipment, net $ 50 $ 49 Depreciation expense of property and equipment for the years ended June 30, 2017, 2016 and 2015 was $50,000, $23,000 and $30,000, respectively.

Accrued Liabilities

Accrued Liabilities	12 Months Ended
	Jun. 30, 2017
Accrued Liabilities	Note 5. Accrued Liabilities Accrued liabilities consisted of the following, in thousands: June 30, 2017 2016 Accrued pre-clinical $ 1,334 $ 2,816 Accrued compensation and benefits 1,546 1,342 Accrued legal and professional services expenses 267 215 Other 138 60 Total accrued liabilties $ 3,285 $ 4,433

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Jun. 30, 2017
Stockholders' Equity	Note 6. Stockholders’ Equity Equity Transactions Shelf Registration Statement In May 2017, we filed a shelf registration statement on Form S-3 with the SEC (“shelf registration statement”). The shelf registration statement was declared effective by the SEC in May 2017. The shelf registration statement permits us to sell, from time to time, up to $150.0 million of common stock, preferred stock and warrants. As of June 30, 2017, there is $150.0 million aggregate value of securities available under the shelf registration statement. Helsinn Equity Investment On August 5, 2016, we entered into the Helsinn Equity Agreement. Pursuant to the terms of the Helsinn Equity Agreement, we issued 2,616,431 shares of common stock on August 16, 2016 in exchange for a $5.0 million investment. Under the multiple-element arrangement accounting guidance, we allocated $0.8 million of the investment as additional consideration related to the revenues under the Helsinn License Agreement (Note 2). The transaction was exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. Underwritten Registered Offerings In December 2014, we completed an underwritten registered offering of 11,500,000 shares of our common stock at a price per share of $4.00. We received net proceeds of $43.1 million associated with the offering, after costs of $2.9 million. Description of Capital Stock Our total authorized share capital is 113,100,000 shares consisting of 113,000,000 shares of common stock, $0.00000002 par value per share, and 100,000 shares of preferred stock, $0.01 par value per share. Common Stock The holders of common stock are entitled to one vote per share. In the event of a liquidation, dissolution or winding up of the our affairs, holders of the common stock will be entitled to share rateably in all our assets that are remaining after payment of the our liabilities and the liquidation preference of any outstanding shares of preferred stock. All outstanding shares of common stock are fully paid and non-assessable. The rights, preferences and privileges of holders of common stock are subject to any series of preferred stock that we have issued or that we may issue in the future. The holders of common stock have no pre-emptive rights and are not subject to future calls or assessments by us. Preferred Stock Our Board of Directors has the authority to issue up to 100,000 shares of preferred stock with par value of $.01 per share in one or more series and to fix the rights, preferences, privileges and restrictions in respect of that preferred stock, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption (including sinking fund provisions), redemption prices and liquidation preferences, and the number of shares constituting such series and the designation of any such series, without future vote or action by the stockholders. Therefore, the board without the approval of the stockholders could authorize the issue of preferred stock with voting, conversion and other rights that could affect the voting power, dividend and other rights of the holders of shares or that could have the effect of delaying, deferring or preventing a change of control. There were no shares of preferred stock outstanding as of June 30, 2017 or 2016. Warrants As of June 30, 2017, there were outstanding warrants to purchase 3,230,202 shares of our common stock at an exercise price of $3.12 per share, which expire in December 2017, issued in conjunction with our December 2012 private placement.

Share-based Compensation

Share-based Compensation	12 Months Ended
	Jun. 30, 2017
Share-based Compensation	Note 7. Share-based Compensation We use equity-based compensation programs to provide long-term performance incentives for our employees. These incentives consist primarily of stock options and RSUs. In December 2008, we adopted the MEI Pharma, Inc. 2008 Stock Omnibus Equity Compensation Plan (“2008 Plan”), as amended and restated in 2011, 2013 and 2016, under which 10,186,000 shares of common stock are authorized for issuance. The 2008 Plan provides for the grant of options and/or other stock-based or stock-denominated awards to our non-employee directors, officers, employees and advisors. As of June 30, 2017, there were 5,096,693 shares available for future grant under the 2008 Plan. Total share-based compensation expense for all stock awards consists of the following, in thousands: Years Ended June 30, 2017 2016 2015 Research and development $ 839 $ 1,871 $ 1,030 General and administrative 1,465 852 3,193 Total share-based compensation $ 2,304 $ 2,723 $ 4,223 Stock Options Stock options granted to employees vest ratably each month for a period of 36 months, or vest 25% one year from the date of grant and ratably each month thereafter for a period of 36 months and expire either five years or ten years from the date of grant. Stock options granted to directors vest ratably each month for periods ranging from seven to 36 months from the date of grant and expire either five years or ten years from the date of grant. As of June 30, 2017, there were a total of 4,259,083 options outstanding. A summary of our stock option activity and related data follows: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Outstanding at June 30, 2016 2,827,172 $ 4.29 Granted 1,709,583 1.41 Forfeited / Cancelled (222,865 ) 1.76 Expired (54,807 ) 9.13 Outstanding at June 30, 2017 4,259,083 $ 3.21 6.6 $ 2,644,191 Vested and exercisable at June 30, 2017 2,239,490 $ 4.37 5.0 $ 930,673 No stock option exercises occurred during the years ended June 30, 2017, 2016 and 2015. As of June 30, 2017, the aggregate intrinsic value of outstanding options is calculated as the difference between the exercise price of the underlying options and the closing price of our common stock of $2.39 on that date. The total fair value of options that vested during the years ended June 30, 2017, 2016 and 2015 was $2.4 million, $3.1 million and $2.6 million, respectively. A summary of our nonvested stock option activity: Number of Weighted-Average Grant Date Fair Value Nonvested at June 30, 2016 1,464,217 $ 2.69 Granted 1,709,583 1.15 Forfeited (222,865 ) 1.44 Vested (931,342 ) 2.60 Nonvested at June 30, 2017 2,019,593 $ 1.57 Unrecognized compensation expense related to non-vested stock options totalled $1.1 million as of June 30, 2017. Such compensation expense is expected to be recognized over a weighted-average period of 1.6 years. As of June 30, 2017, we expect all outstanding options to vest. We use a Black-Scholes valuation model to estimate the grant date fair value of stock options. To calculate these fair values, the following weighted-average assumptions were used: Years ended June 30, 2017 2016 2015 Risk-free interest rate 1.3 % 1.7 % 1.6 % Expected life (years) 5.9 5.8 5.0 Expected volatility 107.4 % 116.7 % 115.9 % Dividend yield 0.0 % 0.0 % 0.0 % Weighted-average grant date fair value $ 1.15 $ 1.35 $ 4.81 Restricted Stock Units In March 2013, the Compensation Committee of the Board of Directors granted 400,000 RSUs to our Chief Executive Officer, Dr. Daniel P. Gold. Each RSU represents the contingent right to receive one share of our common stock. One-third of the RSUs vested on August 30, 2014, one-third vested on August 30, 2015, and the remaining one-third vested on August 30, 2016. The shares underlying the RSUs will be delivered to Dr. Gold on the earliest to occur of (i) March 29, 2018, (ii) Dr. Gold’s death, disability or separation from service from us for any reason, or (iii) a change in our control. The fair value of the RSUs on the date of grant was $3.5 million. The grant date fair value per unit was $8.63. In June 2016, we granted 364,726 RSUs to employees. Each RSU represents the contingent right to receive one share of our common stock. The RSUs were subject to performance criteria that were met in August 2016. The RSUs will vest in August 2018. The fair value of the RSUs was measured at $1.61 per unit on the date the performance criteria were met. Under the terms of the 2008 Plan, each of these RSUs is calculated as 1.25 shares of common stock for purposes of determining the number of shares available for future grant. There were forfeitures of 18,835 RSUs during the year ended June 30, 2017, and 344,179 unvested RSUs were outstanding as of June 30, 2017. As of June 30, 2017, unrecognized compensation expense related to the unvested portion of our RSUs was approximately $0.3 million and is expected to be recognized over approximately 1.1 years.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Jun. 30, 2017
Commitments and Contingencies	Note 8. Commitments and Contingencies We have contracted with various consultants and third parties to assist it in pre-clinical research and development and clinical trials work for our leading drug compounds. The contracts are terminable at any time, but obligate us to reimburse the providers for any time or costs incurred through the date of termination. We also have employment agreements with certain of our current employees that provide for severance payments and accelerated vesting for share-based awards if their employment is terminated under specified circumstances. We have leased approximately 13,700 square feet of office space, located at 3611 Valley Centre Drive, San Diego, California 92130. The location houses our executive and administrative offices. The lease commenced in June 2017 and expires in May 2020. The monthly rental rate is approximately $44,000 over the remaining lease term, plus a pro rata share of certain building expenses. The remaining contractual obligation is $1.5 million. Asset Purchase Agreement In August 2012, we entered into a definitive asset purchase agreement with S*Bio, pursuant to which we agreed to acquire certain assets comprised of intellectual property and technology including rights to Pracinostat, in exchange for $500,000 of common stock. On August 22, 2012, we completed the asset purchase and issued 195,756 shares of common stock to S*Bio. We have also agreed to make certain milestone payments to S*Bio based on the achievement of certain clinical, regulatory and net sales-based milestones, as well as to make certain contingent earnout payments to S*Bio. Milestone payments will be made to S*Bio up to an aggregate amount of $75.2 million if certain U.S., E.U. and Japanese regulatory approvals are obtained and if certain net sales thresholds are met in North America, the E.U. and Japan. The first milestone payment of $200,000 plus shares of our common stock having a value of $500,000 will be due upon the first dosing of a patient in a Phase III clinical trial or other pivotal trial, for any indication. Subsequent milestone payments will be due upon certain regulatory approvals and sales-based events. In July 2017, the first patient was dosed in a Phase III study of Pracinostat in AML. As of June 30, 2017, we have accrued $700,000 for payment of the first milestone. In August 2017, we issued 166,527 shares and paid $200,000 in cash to S*Bio. License Agreement In September 2012, we entered into a license agreement with CyDex Pharmaceuticals, Inc. (“CyDex”). Under the license agreement, CyDex granted to us an exclusive, nontransferable license to intellectual property rights relating to Captisol ®

Segment Information

Segment Information	12 Months Ended
	Jun. 30, 2017
Segment Information	Note 9. Segment Information We have one operating segment, the development of pharmaceutical compounds. All of our assets and liabilities were located in the United States of America as of June 30, 2017, 2016 and 2015.

Income Taxes

Income Taxes	12 Months Ended
	Jun. 30, 2017
Income Taxes	Note 10. Income Taxes Pre-tax income (loss) consists of the following jurisdictions (in thousands): Years ended June 30, 2017 2016 2015 Domestic $ 2,670 $ (20,862 ) $ (32,694 ) Foreign — — — Pre-tax loss $ 2,670 $ (20,862 ) $ (32,694 ) The reconciliation of income tax computed at the U.S. federal statutory tax rates to income tax expense is as follows (in thousands): Years Ended June 30, 2017 2016 2015 $ % $ % $ % Tax (expense) benefit at U.S. statutory rates $ (908 ) 34 % $ 7,093 34 % $ 11,116 34 % State tax (158 ) 6 % 1,215 6 % 1,906 6 % Other (208 ) 8 % (356 ) (2 )% (475 ) (2 )% Capital loss carryover expiration (26,382 ) 988 % — 0 % — 0 % Decrease (increase) in valuation allowance 27,655 (1,036 )% (7,953 ) (38 )% (12,548 ) (38 )% $ (1 ) 0 % $ (1 ) 0 % $ (1 ) 0 % Deferred tax liabilities and assets are comprised of the following (in thousands): June 30, 2017 2016 Deferred tax assets: Tax carried forward losses $ 7,886 $ 7,730 Share-based payments 5,621 4,904 Consultant and other accruals 325 145 Fixed and intangible assets 29,660 32,484 Compensation accruals 630 545 Capital lease obligation 413 — Capital loss carryforward — 26,382 Total deferred tax assets 44,535 72,190 Valuation allowance for deferred tax assets (44,535 ) (72,190 ) Net deferred tax assets and liabilities $ — $ — We evaluate the recoverability of the deferred tax assets and the amount of the required valuation allowance. Due to the uncertainty surrounding the realization of the tax deductions in future tax returns, we have recorded a valuation allowance against our net deferred tax assets as of June 30, 2017 and 2016. At such time as it is determined that it is more likely than not that the deferred tax assets will be realized, the valuation allowance would be reduced. We had federal and state net operating loss carryforwards of approximately $20.1 million and $17.8 million as of June 30, 2017. The federal and state net operating losses will begin to expire in 2022 and 2029, respectively. We also had federal and state capital loss carryforwards of approximately $66.2 million that expired in 2017. Our ability to utilize our net operating loss carryforwards may be substantially limited due to ownership changes that have occurred or that could occur in the future under Section 382 of the Internal Revenue Code and similar state laws. During 2017, we completed a study to analyze whether one or more ownership changes have occurred and determined that two such ownership changes did occur. Although these changes currently limit the use of some of our net operating losses, all of the net operating losses will be available for utilization before they expire. None of our prior income tax returns have been selected for examination by a major taxing jurisdiction; however, the statutes of limitations for various filings remain open. The oldest filings subject to potential examination for federal, state, and foreign purposes are 2014 and 2013, respectively. If we utilize a net operating loss related to a closed year, the statute for that year would re-open. We have not reduced any tax benefit on our financial statements due to uncertain tax positions as of June 30, 2017 and we are not aware of any circumstance that would significantly change this result through the end of fiscal year 2018. To the extent we incur income-tax related penalties or interest, we will recognize them as additional income tax expense.

Selected Quarterly Financial In

Selected Quarterly Financial Information (Unaudited)	12 Months Ended
	Jun. 30, 2017
Selected Quarterly Financial Information (Unaudited)	Note 11. Selected Quarterly Financial Information (Unaudited) The following table presents our unaudited quarterly results of operations for the years ended June 30, 2017 and 2016 (in thousands, except per share amounts). Quarters Ended June 30, March 31, December 31, September 30, Total revenues $ 449 $ 4,505 $ 17,199 $ 1,096 Net income (loss) (4,343 ) (602 ) 11,885 (4,270 ) Basic income (loss) per share (0.12 ) (0.02 ) 0.32 (0.12 ) Diluted income (loss) per share (0.12 ) (0.02 ) 0.32 (0.12 ) Quarters Ended June 30, March 31, December 31, September 30, Revenues $ — $ — $ — $ — Net loss (5,770 ) (5,371 ) (5,101 ) (4,620 ) Basic loss per share (0.17 ) (0.16 ) (0.15 ) (0.13 ) Diluted loss per share (0.17 ) (0.16 ) (0.15 ) (0.13 )

The Company and Summary of Si18

The Company and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jun. 30, 2017
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers 2015-14, Deferral of the Effective Date 2014-09 2014-09 2016-08, Revenue from Contracts with Customers, Principal versus Agent Considerations 2016-10, Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing 2016-11, Revenue from Contracts with Customers and Derivatives and Hedging—Rescission of SEC Guidance 2016-12, Revenue from Contracts with Customers—Narrow Scope Improvements and Practical Expedients In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern 2014-15”). 2014-15 2014-15 In February 2016, the FASB issued ASU 2016-02 Leases right-of-use In March 2016, the FASB issued ASU 2016-09 Improvements to Employee Share-Based Payment Accounting In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation: Scope of Modification Accounting, non-substantive. 2017-09
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. We use estimates that affect the reported amounts (including assets, liabilities and expenses) and related disclosures. Actual results could materially differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of cash and highly liquid investments with original maturities of three months or less when purchased. Cash is maintained at financial institutions and, at times, balances may exceed federally insured limits. We have never experienced any losses related to these balances.
Short-Term Investments	Short-Term Investments Investments that have maturities of greater than three months but less than one year are classified as short-term investments. As of June 30, 2017 and 2016, our short-term investments consisted of $45.1 million and $35.1 million, respectively, in U.S. government securities. The short-term investments held as of June 30, 2017 and 2016 had maturity dates of less than one year, are considered to be “held to maturity” and are carried at amortized cost. Due to the short-term maturities of these instruments, the amortized cost approximates the related fair values. As of June 30, 2017 and 2016, the gross holding gains and losses were immaterial.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of financial instruments such as cash equivalents, short-term investments and accounts payable approximate the related fair values due to the short-term maturities of these instruments. We invest our excess cash in financial instruments which are readily convertible into cash, such as money market funds and U.S. government securities. The fair value of financial assets and liabilities is measured under a three-tier fair value hierarchy as follows: Level 1 fair value is determined from observable, quoted prices in active markets for identical assets or liabilities. Level 2 fair value is determined from quoted prices for similar items in active markets or quoted prices for identical or similar items in markets that are not active. Level 3 fair value is determined using the entity’s own assumptions about the inputs that market participants would use in pricing an asset or liability. Cash equivalents, where applicable, and short-term investments are classified as Level 1 as defined by the fair value hierarchy.
Intangible Assets	Intangible Assets Intangible assets consist of patents acquired from S*Bio in August 2012, relating to a family of heterocyclic compounds that inhibit HDACs. Capitalized amounts are amortized on a straight-line basis over the expected life of the intellectual property of 14 years from the date of acquisition. The carrying values of intangible assets are periodically reviewed to determine if the facts and circumstances suggest that a potential impairment may have occurred. Results of operations for the years ended June 30, 2017, 2016 and 2015 do not reflect any write-downs associated with the potential impairment of intangible assets.
Property and Equipment	Property and Equipment Property and equipment are stated at cost and depreciated over the estimated useful lives of the assets (generally three to seven years) using the straight-line method. Leasehold improvements are stated at cost and are amortized over the shorter of the estimated useful lives of the assets or the lease term.
Revenue Recognition	Revenue Recognition Payments received under commercial arrangements, such as licensing technology rights, may include non-refundable fees at the inception of the arrangements, milestone payments for specific achievements designated in the agreements, and royalties on the sale of products. The Company considers a variety of factors in determining the appropriate method of accounting under its license agreements, including whether the various elements can be separated and accounted for individually as separate units of accounting. Multiple Element Arrangements Deliverables under an arrangement will be separate units of accounting, provided (i) a delivered item has value to the customer on a standalone basis; and (ii) the arrangement includes a general right of return relative to the delivered item, and delivery or performance of the undelivered item is considered probable and substantially in the Company’s control. We account for revenue arrangements with multiple elements by separating and allocating consideration according to the relative selling price of each deliverable. If an element can be separated, an amount is allocated based upon the relative selling price of each element. We determine the relative selling price of a separate deliverable using the price we charge other customers when we sell that element separately. If the element is not sold separately and third party pricing evidence is not available, we will use our best estimate of selling price. License Fee Revenue Non-refundable, up-front fees that are not contingent on any future performance by us and require no consequential continuing involvement on our part are recognized as revenue when the license term commences and the licensed data, technology or product is delivered. We defer recognition of non-refundable upfront license fees if it has continuing performance obligations, without which the licensed data, technology, or product has no utility to the licensee separate and independent of its performance under the other elements of the applicable arrangement. The specific methodology for the recognition of the revenue is determined on a case-by-case basis according to the facts and circumstances of the applicable agreement. Research and Development Revenue Research and development revenue represents ratable recognition of fees allocated to research and development activities. We defer recognition of research and development revenue until the performance of the related research and development activities has occurred. Cost of Research and Development Revenue Cost of research and development revenue primarily includes external costs paid to third-party contractors to perform research, conduct clinical trials and develop and manufacture drug materials, and internal compensation and related personnel expenses to support our research and development revenue. All cost of research and development revenue relate to expenses incurred in connection with our development activities in accordance with the Helsinn License Agreement.
Research and Development Costs	Research and Development Costs Research and development costs are expensed as incurred and include costs paid to third-party contractors to perform research, conduct clinical trials and develop and manufacture drug materials. Clinical trial costs, including costs associated with third-party contractors, are a significant component of research and development expenses. We accrue research and development costs based on work performed. In determining the amount to accrue, management relies on estimates of total costs based on contract components completed, the enrollment of subjects, the completion of trials, and other events. Costs incurred related to the purchase of in-process
License Fees	License Fees Costs incurred related to the licensing of products that have not yet received regulatory approval to be marketed, or that are not commercially viable and ready for use, or have no alternative future use, are charged to expense in the period incurred.
Share-based Compensation	Share-based Compensation Share-based compensation expense for employees and directors is recognized in the statement of operations based on estimated amounts, including the grant date fair value and the expected service period. For stock options, we estimate the grant date fair value using a Black-Scholes valuation model, which requires the use of multiple subjective inputs including estimated future volatility, expected forfeitures and the expected term of the awards. We estimate the expected future volatility based on the stock’s historical price volatility. The stock’s future volatility may differ from our estimated volatility at the grant date. For RSU equity awards, we estimate the grant date fair value using our closing stock price on the date of grant. Share-based compensation recorded in the statement of operations is based on the awards expected to ultimately vest and has been reduced for estimated forfeitures. The estimated forfeiture rates may differ from actual forfeiture rates which would affect the amount of expense recognized during the period. We recognize the value of the awards over the awards’ requisite service or performance periods. The requisite service period is generally the time over which the share-based awards vest.
Interest and Dividend Income	Interest and Dividend Income Interest on cash balances is recognized when earned. Dividend income is recognized when the right to receive the payment is established.
Income Taxes	Income Taxes Our income tax expense consists of current and deferred income tax expense or benefit. Current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is recognized for the future tax consequences attributable to tax credits and loss carryforwards and to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of June 30, 2017 and 2016, we have established a valuation allowance to fully reserve our net deferred tax assets. Tax rate changes are reflected in income during the period such changes are enacted. Changes in our ownership may limit the amount of net operating loss carry-forwards that can be utilized in the future to offset taxable income. The FASB Topic on Income Taxes prescribes a recognition threshold and measurement attribute criteria for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not
Net Income (Loss) Per Share	Net Income (Loss) Per Share Basic and diluted net income (loss) per share are computed using the weighted-average number of shares of common stock outstanding during the period, less any shares subject to repurchase or forfeiture. There were no shares of common stock subject to repurchase or forfeiture for the years ended June 30, 2017, 2016 and 2015. Shares used in calculating net income (loss) per share was determined as follows (in thousands): Years ended June 30, 2017 2016 2015 Weighted average shares outstanding 36,435 34,156 28,093 Effect of vested restricted stock units 378 244 111 Weighted average shares used in calculating basic earnings per share 36,813 34,400 28,204 Effect of potentially dilutive common shares from equity awards 125 — — Weighted average shares used in calculating diluted earnings per share 36,938 34,400 28,204 Potentially dilutive shares excluded form calculation due to anti-dilutive effect 7,377 6,628 6,533 Because we were in a net loss position for the years ended June 30, 2016 and 2015, we excluded stock options, warrants, unvested RSUs and convertible preferred stock from our calculation of diluted net loss per share, and our diluted net loss per share for such years was the same as our basic net loss per share. For the years ended June 30, 2017, 2016 and 2015, we did not have any items that would be classified as other comprehensive income or losses.

The Company and Summary of Si19

The Company and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Jun. 30, 2017
Shares Used in Calculating Net Income (Loss) Per Share	Shares used in calculating net income (loss) per share was determined as follows (in thousands): Years ended June 30, 2017 2016 2015 Weighted average shares outstanding 36,435 34,156 28,093 Effect of vested restricted stock units 378 244 111 Weighted average shares used in calculating basic earnings per share 36,813 34,400 28,204 Effect of potentially dilutive common shares from equity awards 125 — — Weighted average shares used in calculating diluted earnings per share 36,938 34,400 28,204 Potentially dilutive shares excluded form calculation due to anti-dilutive effect 7,377 6,628 6,533

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Jun. 30, 2017
Schedule of Intangible Assets	Intangible assets consisted of the following, in thousands: June 30, 2017 2016 S*Bio Patents – Gross $ 500 $ 500 S*Bio Patents – Accumulated amortization (169 ) (134 ) Intangible assets, net $ 331 $ 366

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Jun. 30, 2017
Schedule of Property and Equipment	Property and equipment consisted of the following, in thousands: June 30, 2017 2016 Furniture and equipment $ 95 $ 127 Less: accumulated depreciation (45 ) (78 ) Property and equipment, net $ 50 $ 49

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
	Jun. 30, 2017
Accrued Liabilities	Accrued liabilities consisted of the following, in thousands: June 30, 2017 2016 Accrued pre-clinical $ 1,334 $ 2,816 Accrued compensation and benefits 1,546 1,342 Accrued legal and professional services expenses 267 215 Other 138 60 Total accrued liabilties $ 3,285 $ 4,433

Share-based Compensation (Table

Share-based Compensation (Tables)	12 Months Ended
	Jun. 30, 2017
Share-Based Compensation Expense for Stock Awards	Total share-based compensation expense for all stock awards consists of the following, in thousands: Years Ended June 30, 2017 2016 2015 Research and development $ 839 $ 1,871 $ 1,030 General and administrative 1,465 852 3,193 Total share-based compensation $ 2,304 $ 2,723 $ 4,223
Summary of Stock Option Activity and Related Data	A summary of our stock option activity and related data follows: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Outstanding at June 30, 2016 2,827,172 $ 4.29 Granted 1,709,583 1.41 Forfeited / Cancelled (222,865 ) 1.76 Expired (54,807 ) 9.13 Outstanding at June 30, 2017 4,259,083 $ 3.21 6.6 $ 2,644,191 Vested and exercisable at June 30, 2017 2,239,490 $ 4.37 5.0 $ 930,673
Nonvested Stock Option Activity	A summary of our nonvested stock option activity: Number of Weighted-Average Grant Date Fair Value Nonvested at June 30, 2016 1,464,217 $ 2.69 Granted 1,709,583 1.15 Forfeited (222,865 ) 1.44 Vested (931,342 ) 2.60 Nonvested at June 30, 2017 2,019,593 $ 1.57
Fair Value of Stock Options Weighted-Average Assumptions Used	We use a Black-Scholes valuation model to estimate the grant date fair value of stock options. To calculate these fair values, the following weighted-average assumptions were used: Years ended June 30, 2017 2016 2015 Risk-free interest rate 1.3 % 1.7 % 1.6 % Expected life (years) 5.9 5.8 5.0 Expected volatility 107.4 % 116.7 % 115.9 % Dividend yield 0.0 % 0.0 % 0.0 % Weighted-average grant date fair value $ 1.15 $ 1.35 $ 4.81

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jun. 30, 2017
Pre-Tax Income (Loss) Information	Pre-tax Years ended June 30, 2017 2016 2015 Domestic $ 2,670 $ (20,862 ) $ (32,694 ) Foreign — — — Pre-tax $ 2,670 $ (20,862 ) $ (32,694 )
Reconciliation of Income Taxes Computed at U.S Federal Statutory Tax Rates to Income Tax Expense	The reconciliation of income tax computed at the U.S. federal statutory tax rates to income tax expense is as follows (in thousands): Years Ended June 30, 2017 2016 2015 $ % $ % $ % Tax (expense) benefit at U.S. statutory rates $ (908 ) 34 % $ 7,093 34 % $ 11,116 34 % State tax (158 ) 6 % 1,215 6 % 1,906 6 % Other (208 ) 8 % (356 ) (2 )% (475 ) (2 )% Capital loss carryover expiration (26,382 ) 988 % — 0 % — 0 % Decrease (increase) in valuation allowance 27,655 (1,036 )% (7,953 ) (38 )% (12,548 ) (38 )% $ (1 ) 0 % $ (1 ) 0 % $ (1 ) 0 %
Deferred Tax Liabilities and Assets	Deferred tax liabilities and assets are comprised of the following (in thousands): June 30, 2017 2016 Deferred tax assets: Tax carried forward losses $ 7,886 $ 7,730 Share-based payments 5,621 4,904 Consultant and other accruals 325 145 Fixed and intangible assets 29,660 32,484 Compensation accruals 630 545 Capital lease obligation 413 — Capital loss carryforward — 26,382 Total deferred tax assets 44,535 72,190 Valuation allowance for deferred tax assets (44,535 ) (72,190 ) Net deferred tax assets and liabilities $ — $ —

Selected Quarterly Financial 25

Selected Quarterly Financial Information (Unaudited) (Tables)	12 Months Ended
	Jun. 30, 2017
Unaudited Quarterly Results of Operations	The following table presents our unaudited quarterly results of operations for the years ended June 30, 2017 and 2016 (in thousands, except per share amounts). Quarters Ended June 30, March 31, December 31, September 30, Total revenues $ 449 $ 4,505 $ 17,199 $ 1,096 Net income (loss) (4,343 ) (602 ) 11,885 (4,270 ) Basic income (loss) per share (0.12 ) (0.02 ) 0.32 (0.12 ) Diluted income (loss) per share (0.12 ) (0.02 ) 0.32 (0.12 ) Quarters Ended June 30, March 31, December 31, September 30, Revenues $ — $ — $ — $ — Net loss (5,770 ) (5,371 ) (5,101 ) (4,620 ) Basic loss per share (0.17 ) (0.16 ) (0.15 ) (0.13 ) Diluted loss per share (0.17 ) (0.16 ) (0.15 ) (0.13 )

Company and Summary of Signific

Company and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Dec. 31, 2000	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Targeted or Tracking Stock, Stock [Line Items]
Incorporation date, year and month	2000-12
Short term investments		$ 45,107,000	$ 35,081,000
Estimated life of the intellectual property		14 years
Impairment of intangible assets		$ 0	0	$ 0
Unrecognized tax benefits		$ 0	$ 0
Common stock subject to repurchase or forfeiture		0	0	0
Minimum
Targeted or Tracking Stock, Stock [Line Items]
Property and equipment, estimated useful life		3 years
Maximum
Targeted or Tracking Stock, Stock [Line Items]
Property and equipment, estimated useful life		7 years

Calculation of Weighted Average

Calculation of Weighted Average Shares Used to Calculate Basic and Diluted Earnings (Loss) Per Share (Detail) - shares shares in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average shares outstanding	36,435	34,156	28,093
Effect of vested restricted stock units	378	244	111
Weighted average shares used in calculating basic earnings per share	36,813	34,400	28,204
Effect of potentially dilutive common shares from equity awards	125
Weighted average shares used in calculating diluted earnings per share	36,938	34,400	28,204
Potentially dilutive shares excluded form calculation due to anti-dilutive effect	7,377	6,628	6,533

Helsinn License Agreement - Add

Helsinn License Agreement - Additional Information (Detail) - USD ($)	Aug. 16, 2016	Aug. 05, 2016	Aug. 31, 2016	Jun. 30, 2017	Mar. 31, 2017
Related Party Transaction [Line Items]
License revenue				$ 20,880,000
Potential Regulatory and Sales-Based Milestone Payment | Maximum
Related Party Transaction [Line Items]
Milestone payment receivable amount			$ 444,000,000
Helsinn License Agreement | Helsinn
Related Party Transaction [Line Items]
Compensation receivable for grant of rights			20,000,000
Helsinn License Agreement | Helsinn | Up Front Payment
Related Party Transaction [Line Items]
Compensation receivable for grant of rights			15,000,000
Helsinn License Agreement | Helsinn | Balance Payment
Related Party Transaction [Line Items]
Compensation receivable for grant of rights					$ 5,000,000
Helsinn Equity Agreement | Helsinn Investment Fund SA
Related Party Transaction [Line Items]
Proceeds from sale of equity method investment		$ 5,000,000	$ 5,000,000
Volume weighted average price period			10 days
Volume weighted average price period beginning date			Aug. 1, 2016
Volume weighted average price period ending date			Aug. 12, 2016
Sale of stock, number of common stock issued	2,616,431
Sale of common stock, price per share			$ 1.911
Closing price of common stock		$ 1.61
Revenue recognized		$ 800,000	$ 800,000

Schedule of Intangible Assets (

Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 331	$ 366
S*Bio Patents
Finite-Lived Intangible Assets [Line Items]
Intangible assets - Gross	500	500
Intangible assets - Accumulated amortization	(169)	(134)
Intangible assets, net	$ 331	$ 366

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($)	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 35,000	$ 35,000	$ 34,000
S*Bio Patents
Finite-Lived Intangible Assets [Line Items]
Expected amortization expense per year	$ 35,000
Amortization period	2,026

Schedule of Property and Equipm

Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Property, Plant and Equipment [Line Items]
Less: accumulated depreciation	$ (45)	$ (78)
Property and equipment, net	50	49
Furniture and Equipment
Property, Plant and Equipment [Line Items]
Property plant and equipment, Gross	$ 95	$ 127

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($)	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 50,000	$ 23,000	$ 30,000

Accrued Liabilities (Detail)

Accrued Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Accrued Liabilities [Line Items]
Accrued pre-clinical and clinical trial expenses	$ 1,334	$ 2,816
Accrued compensation and benefits	1,546	1,342
Accrued legal and professional services expenses	267	215
Other	138	60
Total accrued liabilties	$ 3,285	$ 4,433

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	Aug. 16, 2016	Aug. 05, 2016	Aug. 31, 2016	Dec. 31, 2014	May 31, 2014	Jun. 30, 2017	Jun. 30, 2015	Jun. 30, 2016
Class of Stock [Line Items]
Aggregate value of securities available under shelf registration statement						$ 150,000,000
Net proceeds from issuance of common stock						$ 4,212,000	$ 43,070,000
Total authorized share capital						113,100,000
Common stock, shares authorized						113,000,000		113,000,000
Common stock, par value						$ 0.00		$ 0.00
Preferred stock, shares authorized						100,000		100,000
Preferred stock, par value						$ 0.01		$ 0.01
Preferred stock, shares outstanding						0		0
Helsinn Investment Fund SA | Helsinn Equity Agreement
Class of Stock [Line Items]
Sale of stock, number of common stock issued	2,616,431
Proceeds from sale of equity method investment		$ 5,000,000	$ 5,000,000
Revenue recognized		$ 800,000	$ 800,000
Common stock, sales price per share			$ 1.911
Underwritten Registered Offering
Class of Stock [Line Items]
Issuance of common stock (in shares)				11,500,000
Common stock, sales price per share				$ 4
Net proceeds from issuance of common stock				$ 43,100,000
Payment of stock offering cost				$ 2,900,000
December 2012 Private Placement
Class of Stock [Line Items]
Warrants outstanding						3,230,202
Exercise price						$ 3.12
Warrants expiration date						2017-12
Maximum
Class of Stock [Line Items]
Sale of shares and warrants under agreement					$ 150,000,000

Share-based Compensation - Addi

Share-based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		12 Months Ended
	Jun. 30, 2016	Mar. 31, 2013	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding	2,827,172		4,259,083	2,827,172
Stock option exercised			0	0	0
Total fair value of options vested			$ 2.4	$ 3.1	$ 2.6
Unrecognized compensation expense related to unvested stock options			$ 1.1
Expected weighted average period for recognition of compensation expense			1 year 7 months 6 days
Directors | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			7 months
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			5 years
Directors | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			36 months
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
2008 Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized			10,186,000
Shares available for future grant			5,096,693
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected weighted average period for recognition of compensation expense			1 year 1 month 6 days
Fair value of RSUs on the date of grant		$ 3.5
RSUs grant date fair value per unit		$ 8.63
Unrecognized compensation expense related to non-vested RSUs			$ 0.3
Restricted Stock Units (RSUs) | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted	364,726
Number of common stock to be received for each RSUs	1			1
RSUs grant date fair value per unit	$ 1.61
RSUs outstanding			344,179
RSUs forfeitures			18,835
Restricted Stock Units (RSUs) | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted		400,000
Number of common stock to be received for each RSUs		1
Restricted Stock Units (RSUs) | Chief Executive Officer | Vested on August 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs vested percentage		33.33%
Restricted Stock Units (RSUs) | Chief Executive Officer | Vested on August 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs vested percentage		33.33%
Restricted Stock Units (RSUs) | Chief Executive Officer | Vested on August 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs vested percentage		33.33%
Restricted Stock Units (RSUs) | 2008 Omnibus Plan | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock considered per unit in determining shares for future grant	1.25
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs vested percentage			25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			36 months
Employee Stock Option | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			5 years
Employee Stock Option | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
Stock Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Closing price of common stock			$ 2.39

Share-Based Compensation Expens

Share-Based Compensation Expense for Stock Awards (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	$ 2,304	$ 2,723	$ 4,223
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	839	1,871	1,030
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	$ 1,465	$ 852	$ 3,193

Summary of Stock Option Activit

Summary of Stock Option Activity (Detail)	12 Months Ended
	Jun. 30, 2017USD ($)$ / sharesshares
Number of Options
Beginning Balance | shares	2,827,172
Granted | shares	1,709,583
Forfeited / Cancelled | shares	(222,865)
Expired | shares	(54,807)
Ending balance | shares	4,259,083
Vested and exercisable at end of period | shares	2,239,490
Weighted- Average Exercise Price
Beginning Balance | $ / shares	$ 4.29
Granted | $ / shares	1.41
Forfeited / Cancelled | $ / shares	1.76
Expired | $ / shares	9.13
Ending balance | $ / shares	3.21
Vested and exercisable at end of period | $ / shares	$ 4.37
Weighted Average Remaining Contractual Term (in years)
Outstanding at end of period	6 years 7 months 6 days
Vested and exercisable at end of period	5 years
Aggregate Intrinsic Value
Outstanding at end of period | $	$ 2,644,191
Vested and exercisable at end of period | $	$ 930,673

Nonvested Stock Option Activity

Nonvested Stock Option Activity (Detail) - $ / shares	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Number of options
Beginning balance	1,464,217
Granted	1,709,583
Forfeited	(222,865)
Vested	(931,342)
Ending balance	2,019,593	1,464,217
Weighted average grant date fair value
Beginning balance	$ 2.69
Granted	1.15	$ 1.35	$ 4.81
Forfeited	1.44
Vested	2.60
Ending balance	$ 1.57	$ 2.69

Fair Value of Stock Options Wei

Fair Value of Stock Options Weighted-Average Assumptions Used (Detail) - $ / shares	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.30%	1.70%	1.60%
Expected life (years)	5 years 10 months 25 days	5 years 9 months 18 days	5 years
Expected volatility	107.40%	116.70%	115.90%
Dividend yield	0.00%	0.00%	0.00%
Weighted-average grant date fair value	$ 1.15	$ 1.35	$ 4.81

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Aug. 22, 2012shares	Aug. 31, 2017USD ($)shares	Sep. 30, 2012	Aug. 31, 2012USD ($)	Jun. 30, 2017USD ($)ft²	Jun. 30, 2016USD ($)
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Lease expiration month and year					2020-05
Lease commencement month and year					2017-06
Lease arrangement rent area, square feet | ft²					13,700
Lease rental rate					$ 44,000
Remaining contractual obligation					1,500,000
Issuance of common stock to acquire intellectual property and technology rights				$ 500,000
Issuance of common stock to purchase asset, shares | shares	195,756
Future aggregate milestone payments				75,200,000
First milestone payment				200,000
Common stock value					0	$ 0
Accrued payment of first milestone					$ 700,000
Percentage of Purchase Requirement			100.00%
License and supply agreement notice period			90 days
Phase Three Clinical Trial
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Common stock value				$ 500,000
Subsequent Event
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Issuance of common stock to purchase asset, shares | shares		166,527
Cash payment to S*Bio for the first milestone		$ 200,000

Segment Information - Additiona

Segment Information - Additional Information (Detail)	12 Months Ended
	Jun. 30, 2017Segment
Segment Reporting Information [Line Items]
Number of operating segments	1

Pre- Tax Income (Loss) Jurisdic

Pre- Tax Income (Loss) Jurisdictions (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Pretax Income (Loss) [Line Items]
Domestic	$ 2,670	$ (20,862)	$ (32,694)
Foreign	0	0	0
Pre-tax loss	$ 2,670	$ (20,862)	$ (32,694)

Reconciliation of Income Taxes

Reconciliation of Income Taxes Computed at U.S Federal Statutory Tax rates to Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Reconciliation of Statutory Federal Tax Rate [Line Items]
Tax benefit at U.S. statutory rates	$ (908)	$ 7,093	$ 11,116
State tax	(158)	1,215	1,906
Other	(208)	(356)	(475)
Capital loss carryover expiration	(26,382)
Decrease (increase) in valuation allowance	27,655	(7,953)	(12,548)
Income tax expense	$ (1)	$ (1)	$ (1)
Tax (expense) benefit at U.S. statutory rates	34.00%	34.00%	34.00%
State tax	6.00%	6.00%	6.00%
Other	8.00%	(2.00%)	(2.00%)
Capital loss carryover expiration	988.00%	0.00%	0.00%
Decrease (increase) in valuation allowance	(1036.00%)	(38.00%)	(38.00%)
Effective Income Tax Rate, Continuing Operations, Total	0.00%	0.00%	0.00%

Deferred Tax Liabilities and As

Deferred Tax Liabilities and Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Deferred tax assets:
Tax carried forward losses	$ 7,886	$ 7,730
Share-based payments	5,621	4,904
Consultant and other accruals	325	145
Fixed and intangible assets	29,660	32,484
Compensation accruals	630	545
Capital lease obligation	413
Capital loss carryforward		26,382
Total deferred tax assets	44,535	72,190
Valuation allowance for deferred tax assets	(44,535)	(72,190)
Net deferred tax assets and liabilities	$ 0	$ 0

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) $ in Millions	12 Months Ended
	Jun. 30, 2017USD ($)
Income Taxes [Line Items]
Federal net operating loss carry forwards	$ 20.1
State net operating loss carry forwards	17.8
Capital Loss Carry Forward	$ 66.2
Capital Loss Expiration Year	2,017
Federal
Income Taxes [Line Items]
Expiration year of operating loss carry forwards	2,022
State
Income Taxes [Line Items]
Expiration year of operating loss carry forwards	2,029

Quarterly Financial Information

Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Quarterly Financial Information [Line Items]
Total revenues	$ 449	$ 4,505	$ 17,199	$ 1,096					$ 23,249
Net income (loss)	$ (4,343)	$ (602)	$ 11,885	$ (4,270)	$ (5,770)	$ (5,371)	$ (5,101)	$ (4,620)	$ 2,670	$ (20,862)	$ (32,694)
Basic income (loss) per share	$ (0.12)	$ (0.02)	$ 0.32	$ (0.12)	$ (0.17)	$ (0.16)	$ (0.15)	$ (0.13)	$ 0.07	$ (0.61)	$ (1.16)
Diluted income (loss) per share	$ (0.12)	$ (0.02)	$ 0.32	$ (0.12)	$ (0.17)	$ (0.16)	$ (0.15)	$ (0.13)	$ 0.07	$ (0.61)	$ (1.16)