Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 31, 2020 | May 08, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | APPLIED GENETIC TECHNOLOGIES CORP | |
Entity Central Index Key | 0001273636 | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-36370 | |
Entity Tax Identification Number | 59-3553710 | |
Trading Symbol | AGTC | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 14193 NW 119th Terrace, Suite 10 | |
Entity Address, City or Town | Alachua | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32615 | |
City Area Code | 386 | |
Local Phone Number | 462-2204 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 25,765,621 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 58,491 | $ 26,703 |
Investments | 26,026 | 55,292 |
Grants receivable | 13 | |
Prepaid and other current assets | 2,942 | 2,276 |
Total current assets | 87,459 | 84,284 |
Property and equipment, net | 4,216 | 4,430 |
Intangible assets, net | 1,176 | 1,013 |
Investment in Bionic Sight | 8,115 | 1,945 |
Right of use assets – operating leases | 3,503 | |
Right of use asset – finance lease | 91 | |
Other assets | 544 | 544 |
Total assets | 105,104 | 92,216 |
Current liabilities: | ||
Accounts payable | 3,013 | 1,331 |
Accrued and other liabilities | 9,434 | 8,024 |
Lease liabilities – operating | 1,054 | |
Lease liability – finance | 47 | |
Total current liabilities | 13,548 | 9,355 |
Lease liabilities – operating, net of current portion | 4,329 | |
Lease liability – finance, net of current portion | 51 | |
Other liabilities | 2,357 | 4,152 |
Total liabilities | 20,285 | 13,507 |
Stockholders' equity: | ||
Preferred stock, par value $0.001 per share, 5,000 shares authorized; no shares issued and outstanding | ||
Common stock, par value $0.001 per share, 150,000 shares authorized; 25,784 and 18,226 shares issued; 25,764 and 18,207 shares outstanding at March 31, 2020 and June 30, 2019, respectively | 25 | 18 |
Additional paid-in capital | 251,819 | 214,324 |
Shares held in treasury of 20 and 19 at March 31, 2020 and June 30, 2019, respectively | (88) | (85) |
Accumulated deficit | (166,937) | (135,548) |
Total stockholders' equity | 84,819 | 78,709 |
Total liabilities and stockholders' equity | $ 105,104 | $ 92,216 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 25,784,000 | 18,226,000 |
Common stock, shares outstanding | 25,764,000 | 18,207,000 |
Treasury stock, shares held | 20,000 | 19,000 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||||
Total revenue | $ 21,318 | $ 2,453 | $ 41,286 | |
Operating expenses: | ||||
Research and development | $ 8,308 | 7,203 | 25,325 | 24,851 |
General and administrative and other | 3,134 | 3,110 | 9,490 | 9,345 |
Total operating expenses | 11,442 | 10,313 | 34,815 | 34,196 |
Income (loss) from operations | (11,442) | 11,005 | (32,362) | 7,090 |
Other income: | ||||
Investment income, net | 281 | 512 | 1,063 | 1,504 |
Other income | 4 | |||
Total other income, net | 285 | 512 | 1,063 | 1,504 |
Income (loss) before provision for income taxes | (11,157) | 11,517 | (31,299) | 8,594 |
Provision for income taxes | 21 | 19 | 63 | 57 |
Income (loss) before equity in net losses of an affiliate | (11,178) | 11,498 | (31,362) | 8,537 |
Equity in net losses of an affiliate | (11) | (9) | (27) | (29) |
Net income (loss) | $ (11,189) | $ 11,489 | $ (31,389) | $ 8,508 |
Weighted Average Shares Outstanding | ||||
Basic | 22,272 | 18,166 | 19,558 | 18,149 |
Diluted | 22,272 | 18,324 | 19,558 | 18,322 |
Net income (loss) per common share | ||||
Basic | $ (0.50) | $ 0.63 | $ (1.60) | $ 0.47 |
Diluted | $ (0.50) | $ 0.63 | $ (1.60) | $ 0.46 |
Collaboration [Member] | ||||
Revenue: | ||||
Total revenue | $ 21,207 | $ 2,297 | $ 41,128 | |
Grant and Other [Member] | ||||
Revenue: | ||||
Total revenue | $ 111 | $ 156 | $ 158 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Beginning balance at Jun. 30, 2018 | $ 99,182 | $ 18 | $ (49) | $ 210,139 | $ (110,926) |
Beginning balance, shares at Jun. 30, 2018 | 18,126,000 | 11,000 | |||
Cumulative impact of adopting Topic 606 | (22,616) | (22,616) | |||
Share-based compensation expense | 1,181 | 1,181 | |||
Shares issued under employee plans | (8) | $ (8) | |||
Shares issued under employee plans, shares | 4,000 | 2,000 | |||
Net income (loss) | 1,200 | 1,200 | |||
Ending balance at Sep. 30, 2018 | 78,939 | $ 18 | $ (57) | 211,320 | (132,342) |
Ending balance, shares at Sep. 30, 2018 | 18,130,000 | 13,000 | |||
Beginning balance at Jun. 30, 2018 | 99,182 | $ 18 | $ (49) | 210,139 | (110,926) |
Beginning balance, shares at Jun. 30, 2018 | 18,126,000 | 11,000 | |||
Net income (loss) | 8,508 | ||||
Ending balance at Mar. 31, 2019 | 88,302 | $ 18 | $ (77) | 213,395 | (125,034) |
Ending balance, shares at Mar. 31, 2019 | 18,168,000 | 17,000 | |||
Beginning balance at Sep. 30, 2018 | 78,939 | $ 18 | $ (57) | 211,320 | (132,342) |
Beginning balance, shares at Sep. 30, 2018 | 18,130,000 | 13,000 | |||
Share-based compensation expense | 1,094 | 1,094 | |||
Shares issued under employee plans | 123 | $ (13) | 136 | ||
Shares issued under employee plans, shares | 34,000 | 2,000 | |||
Net income (loss) | (4,181) | (4,181) | |||
Ending balance at Dec. 31, 2018 | 75,975 | $ 18 | $ (70) | 212,550 | (136,523) |
Ending balance, shares at Dec. 31, 2018 | 18,164,000 | 15,000 | |||
Share-based compensation expense | 845 | 845 | |||
Shares issued under employee plans | (7) | $ (7) | |||
Shares issued under employee plans, shares | 4,000 | 2,000 | |||
Net income (loss) | 11,489 | 11,489 | |||
Ending balance at Mar. 31, 2019 | 88,302 | $ 18 | $ (77) | 213,395 | (125,034) |
Ending balance, shares at Mar. 31, 2019 | 18,168,000 | 17,000 | |||
Beginning balance at Jun. 30, 2019 | 78,709 | $ 18 | $ (85) | 214,324 | (135,548) |
Beginning balance, shares at Jun. 30, 2019 | 18,207,000 | 19,000 | |||
Share-based compensation expense | 810 | 810 | |||
Shares issued under employee plans | 31 | $ (3) | 34 | ||
Shares issued under employee plans, shares | 11,000 | 1,000 | |||
Net income (loss) | (11,577) | (11,577) | |||
Ending balance at Sep. 30, 2019 | 67,973 | $ 18 | $ (88) | 215,168 | (147,125) |
Ending balance, shares at Sep. 30, 2019 | 18,218,000 | 20,000 | |||
Beginning balance at Jun. 30, 2019 | 78,709 | $ 18 | $ (85) | 214,324 | (135,548) |
Beginning balance, shares at Jun. 30, 2019 | 18,207,000 | 19,000 | |||
Net income (loss) | (31,389) | ||||
Ending balance at Mar. 31, 2020 | 84,819 | $ 25 | $ (88) | 251,819 | (166,937) |
Ending balance, shares at Mar. 31, 2020 | 25,764,000 | 20,000 | |||
Beginning balance at Sep. 30, 2019 | 67,973 | $ 18 | $ (88) | 215,168 | (147,125) |
Beginning balance, shares at Sep. 30, 2019 | 18,218,000 | 20,000 | |||
Share-based compensation expense | 689 | 689 | |||
Shares issued under employee plans, shares | 1,000 | ||||
Net income (loss) | (8,623) | (8,623) | |||
Ending balance at Dec. 31, 2019 | 60,039 | $ 18 | $ (88) | 215,857 | (155,748) |
Ending balance, shares at Dec. 31, 2019 | 18,219,000 | 20,000 | |||
Issuance of common stock, net of issuance costs | $ 34,811 | $ 7 | 34,804 | ||
Issuance of common stock, net of issuance costs, shares | 7,475,000 | ||||
Share-based compensation expense | $ 874 | 874 | |||
Shares issued under employee plans | 284 | 284 | |||
Shares issued under employee plans, shares | 70,000 | ||||
Net income (loss) | (11,189) | (11,189) | |||
Ending balance at Mar. 31, 2020 | $ 84,819 | $ 25 | $ (88) | $ 251,819 | $ (166,937) |
Ending balance, shares at Mar. 31, 2020 | 25,764,000 | 20,000 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net income (loss) | $ (31,389) | $ 8,508 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Share-based compensation expense | 2,373 | 3,120 |
Depreciation and amortization | 919 | 957 |
Recovery of bad debts | (258) | |
Investment discount accretion | (306) | (578) |
Reduction in the carrying amount of operating lease right-of-use assets | 222 | |
Collaboration revenue from Bionic Sight | (2,197) | |
Equity in net losses of an affiliate | 27 | 29 |
Changes in operating assets and liabilities: | ||
Grants receivable | 13 | 73 |
Prepaid and other assets | (660) | 302 |
Deferred revenues | (28,393) | |
Accounts payable | 1,603 | 505 |
Operating lease liabilities | (459) | |
Accrued and other liabilities | 2,000 | (185) |
Net cash used in operating activities | (27,854) | (15,920) |
Investing activities: | ||
Purchases of property and equipment | (812) | (81) |
Purchases of and capitalized costs related to intangible assets | (349) | (148) |
Investment in Bionic Sight | (4,000) | |
Maturities of investments | 63,500 | 71,619 |
Purchases of investments | (33,928) | (64,866) |
Net cash provided by investing activities | 24,411 | 6,524 |
Financing activities: | ||
Proceeds from the issuance of common stock, net of issuance costs | 34,949 | |
Proceeds from exercises of common stock options | 318 | 136 |
Taxes paid related to equity awards | (3) | (28) |
Deferred offering costs | (168) | |
Principal payments on finance/capital lease | (33) | (39) |
Net cash provided by (used in) financing activities | 35,231 | (99) |
Net increase (decrease) in cash and cash equivalents | 31,788 | (9,495) |
Cash and cash equivalents, beginning of period | 26,703 | 31,065 |
Cash and cash equivalents, end of period | 58,491 | 21,570 |
Supplemental information: | ||
Shares issued for no consideration | $ 3 | $ 28 |
Organization and Operations
Organization and Operations | 9 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Operations | 1. Organization and Operations Applied Genetic Technologies Corporation (the “Company” or “AGTC”) was incorporated as a Florida corporation on January 19, 1999 and reincorporated as a Delaware corporation on October 24, 2003. The Company is a clinical-stage biotechnology company that uses a proprietary gene therapy platform to develop transformational genetic therapies for patients suffering from rare and debilitating diseases. On February 11 , and such transaction closed on February 13, 2020 and generated additional gross proceeds of $4.9 million. Issuance costs totaling $138,000 were unpaid on March 31, 2020 and have been included in accounts payable on the Company’s Unaudited Condensed Balance Sheets as of such date. In July 2015, the Company entered into a collaboration agreement (the “Collaboration Agreement”) with Biogen MA, Inc., a wholly owned subsidiary of Biogen Inc. (“Biogen”), pursuant to which the Company and Biogen collaborated to develop, seek regulatory approval for and commercialize gene therapy products to treat X-linked X-linked The Company has devoted substantially all of its efforts to research and development, including clinical trials. The Company has not completed the development of any products. The Company has generated revenue from collaboration agreements, sponsored research payments and grants, but has not generated product revenue to date and is subject to a number of risks similar to those of other early stage companies in the biotechnology industry, including dependence on key individuals, the difficulties inherent in the development of commercially viable products, the need to obtain additional capital necessary to fund the development of its products, development by the Company or its competitors of technological innovations, risks of failure of clinical studies, protection of proprietary technology, compliance with government regulations and ability to transition to large-scale production of products. As of March 31, 2020, the Company had an accumulated deficit of $166.9 million. While the Company expects to continue to generate some revenue from partnering, the Company expects to incur losses for the foreseeable future. The Company has funded its operations to date primarily through public offerings of its common stock, private placements of its preferred stock, and collaborations. As of March 31, 2020, the Company had cash and cash equivalents and liquid investments of $84.5 million. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of presentation The accompanying Unaudited Condensed Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and, in the opinion of management, include all adjustments necessary for a fair presentation of the Company’s financial position, results of operations, stockholders’ equity and cash flows for the periods presented. The adjustments referred to above are of a normal and recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to SEC rules and regulations for interim reporting. The Condensed Balance Sheet as of June 30, 2019 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The Company’s Unaudited Condensed Financial Statements should be read in conjunction with the audited financial statements included in the Company’s 2019 Annual Report on Form 10-K Form 10-K”). Segment reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. To date, we have viewed our operations and managed our business as one segment. Use of estimates The preparation of financial statements in conformity with U.S. GAAP and SEC regulations, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and cash equivalents Cash consists of funds held in bank accounts. Cash equivalents consist of short-term, highly liquid investments with original maturities of 90 days or less at the time of purchase and generally include money market accounts. Investments The Company’s investments consist of certificates of deposit and debt securities classified as held-to-maturity. held-to-maturity maturity. Held-to-maturity held-to-maturity The Company uses the specific identification method to determine the cost basis of securities sold. Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. The Company evaluates an investment for impairment by considering the length of time and extent to which market value has been less than cost or amortized cost, the financial condition and near-term prospects of the issuer as well as specific events or circumstances that may influence the operations of the issuer and the Company’s intent to sell the security or the likelihood that it will be required to sell the security before recovery of the entire amortized cost. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to investment income (expense) and a new cost basis in the investment is established. Fair value of financial instruments The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. The Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2—Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3—Valuations that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Revenue recognition Effective July 1, 2018, the Company adopted the provisions of ASC Topic 606, Revenue from Contracts with Customers, The adoption of the new revenue recognition guidance resulted in an increase of $22.6 million in deferred revenue and accumulated deficit as of July 1, 2018. The Company may enter into collaboration agreements which are within the scope of Topic 606, under which the Company licenses rights to its technology and certain of the Company’s product candidates and performs research and development services for third parties. The terms of these arrangements typically may include payment of one or more of the following: non-refundable, up-front Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of Topic 606, the Company performs the following five steps: (i) identification of the contract; (ii) determination of whether the promised goods or services are performance obligations; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect consideration it is entitled to in exchange for the goods or services it transfers to the customer. Performance obligations are promises to transfer distinct goods or services to the customer. Promised goods or services are considered distinct when (i) the customer can benefit from the good or service on its own or together with other readily available resources and (ii) the promised good or service is separately identifiable from other promises in the contract. In assessing whether promised good or services are distinct, the Company considers factors such as the stage of development of the underlying intellectual property, the capabilities of the customer to develop the intellectual property on their own or whether the required expertise is readily available. The Company estimates the transaction price based on the amount expected to be received for transferring the promised goods or services in the contract. The consideration may include both fixed consideration and variable consideration. At the inception of an arrangement that includes variable consideration and at each reporting period, the Company evaluates the amount of potential payment and the likelihood that the payments will be received. The Company utilizes either the most likely amount method or expected amount method to estimate the amount to be received based on which method better predicts the amount expected to be received. If it is probable that a significant revenue reversal would not occur, the variable consideration is included in the transaction price. The Company will assess its revenue generating arrangements in order to determine whether a significant financing component exists and conclude that a significant financing component does not exist in any of its arrangements if: (a) the promised consideration approximates the cash selling price of the promised goods and services or any significant difference is due to factors other than financing; and (b) timing of payment approximates the transfer of goods and services and performance is over a relatively short period of time within the context of the entire term of the contract. The Company’s contracts will often include development and regulatory milestone payments. At contract inception and at each reporting period, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the customer’s control, such as regulatory approvals, are not included in the transaction price. At the end of each subsequent reporting period, the Company re-evaluates catch-up For arrangements that may include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue resulting from any of the Company’s collaboration arrangements. The Company allocates the transaction price based on the estimated standalone selling price of the underlying performance obligations or in the case of certain variable consideration to one or more performance obligations. The Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company utilizes key assumptions to determine the stand-alone selling price, which may include other comparable transactions, pricing considered in negotiating the transaction and the estimated costs to complete the respective performance obligation. Certain variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated to each performance obligation are consistent with the amounts the Company would expect to receive for each performance obligation. For performance obligations consisting of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front non-refundable, up-front The Company receives payments from its customers based on billing terms established in each contract. Such billings generally have 30-day Collaboration revenue To date, the Company’s collaboration revenue has been generated from its collaboration arrangement with Biogen and Bionic Sight as further described in Note 7, “ Collaboration Agreements. The Company analyzes its collaboration arrangements to assess whether they are within the scope of ASC 808, Collaborative Arrangements Income taxes The Company uses the asset and liability method for accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. As required by U.S. GAAP, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed into law. The CARES Act contains several significant provisions that affect corporations, including, among others, provisions addressing the use of net operating losses, interest deduction limitations and employer payroll tax payments. Management does not believe that the CARES Act will have a material impact on the Company; however, management will continue to monitor ongoing developments, new regulations and interpretive guidance regarding such legislation and evaluate any potential impact on the Company’s overall business and tax position. For the three and nine months ended March 31, 2020, the Company’s tax expense included an increase in the uncertain tax position liability of $21,000 and $63,000, respectively, related to interest on the uncertain tax position, compared to $19,000 and $57,000, respectively, for the three and nine months ended March 31, 2019. The uncertain tax position liability as of March 31, 2020 and June 30, 2019 was $2,098,000 and $2,035,000, respectively. Research and development Research and development costs include costs incurred in identifying, developing and testing product candidates and generally comprise compensation and related benefits and non-cash pre-clinical As part of the process of preparing its financial statements, the Company is required to estimate its accrued expenses. This process involves reviewing quotations and contracts, identifying services that have been performed on its behalf and estimating the level of service performed and the associated cost incurred for services for which the Company has not yet been invoiced or otherwise notified of the actual cost. The majority of the Company’s service providers invoice the Company monthly in arrears for services performed or when contractual milestones are met. The Company makes estimates of its accrued expenses as of each balance sheet date in its financial statements based on facts and circumstances known to it at that time. The significant estimates in the Company’s accrued research and development expenses are related to expenses incurred with respect to academic research centers, contract research organizations, and other vendors in connection with research and development activities for which it has not yet been invoiced. There may be instances in which the Company’s service providers require advance payments at the inception of a contract or in which payments made to these vendors will exceed the level of services provided, resulting in a prepayment of the research and development expense. Such prepayments are charged to research and development expense as and when the service is provided or when a specific milestone outlined in the contract is reached. Prepayments related to research and development activities were $1.8 million and $0.7 million at March 31, 2020 and June 30, 2019, respectively, and are included in prepaid and other current assets in the Company’s Unaudited Condensed Balance Sheets. Share-based compensation The Company accounts for share-based awards issued to employees in accordance with ASC Topic 718, Compensation—Stock Compensation non-employees 10-K, 505-50, Equity-Based Payments to Non-employees 505-50”). 505-50, non-employees re-measurement No. 2018-07, Compensation - 2018-07”). As non-employee non-employee non-employees For purposes of calculating stock-based compensation, the Company uses Monte Carlo simulation model to determine the fair value of restricted stock units and Black-Scholes model to determine the fair value of stock options. The Monte Carlo simulation model incorporates probability of satisfying a market condition and uses transaction details such as the Company’s stock price, contractual terms, maturity, risk free rates, as well as, volatility. The Black-Scholes model is affected by the Company’s stock price at the grant date and incorporates a number of assumptions, including expected volatility, expected term, risk-free interest rate and expected dividends. Net income or loss per share Basic net income or loss per share is calculated by dividing net income or loss by the weighted average shares outstanding during the period, without consideration of common stock equivalents. Diluted net income or loss per share is calculated by adjusting weighted average shares outstanding for the dilutive effects of common stock equivalents outstanding during the period, determined using the treasury-stock method. For purposes of the diluted net income or loss per share calculations, stock options, restricted stock awards and performance service awards are considered to be common stock equivalents if they are dilutive. The dilutive impact of common stock equivalents (i) for the three and nine months ended March 31, 2020 was approximately 0.4 million shares and 0.2 million shares, respectively, and (ii) for both the three and nine months ended March 31, 2019 was approximately 0.2 million shares. However, the dilutive impact of common stock equivalents was excluded from the calculations of diluted net loss per share for both the three and nine months ended March 31, 2020 because their effects were anti-dilutive. Therefore, for each of the three and nine months ended March 31, 2020, basic and diluted net loss per share were the same. Comprehensive income or loss Comprehensive income or loss consists of net income or loss and changes in equity during a period from transactions and other equity and circumstances generated from non-owner New Accounting Pronouncements Adopted during the nine months ended March 31, 2020 Leases In February 2016, the FASB issued ASU No. 2016-02, Leases 2016-02”), Leases right-of-use 2016-02 right-of-use ASU 2016-02 2016-02 2016-02 right-of-use There was no material impact from ASU 2016-02 right-of-use right-of-use 2016-02 right-of-use 2016-02. Share-Based Compensation In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting 2018-07 To be adopted in future periods Financial Instruments—Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Collaborative Arrangements In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 unit-of-account Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Equity Securities, Investment – Equity Method and Joint Ventures, and Derivatives and Hedging In January 2020, the FASB issued ASU No. 2020-01, Investments-Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 |
Leases
Leases | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | 3. Leases The Company leases certain laboratory and office space under operating leases, which consist of the following: Alachua, Florida The Company’s corporate headquarters are located in Alachua, Florida. In January 2016, the Company moved into a new combined-use Cambridge, Massachusetts In August 2015, the Company entered into a two-year In addition, the Company leases certain office equipment under a finance lease. As part of the Company’s assessment of the lease term, the Company did not elect the hindsight practical expedient, which allows companies to use current knowledge and expectations when determining the likelihood to extend lease options. By not electing this practical expedient, the Company will not re-assess Summary of all lease costs recognized under ASU 2016-02 The table below contains a summary of the lease costs recognized under ASU 2016-02 In thousands Three Months Ended Nine Months Ended Lease Cost: Finance lease cost Amortization of right-of-use $ 11 $ 34 Interest on lease liability 2 6 Operating lease cost 193 578 Variable lease cost 95 271 Total lease cost $ 301 $ 889 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for finance lease $ 2 $ 6 Operating cash flows used for operating leases $ 278 $ 829 Financing cash flows used for finance lease $ 11 $ 33 Other Information: Weighted-average remaining lease term - operating leases (in years) 6.4 Weighted-average remaining lease term - financing lease (in years) 2.1 Weighted-average discount rate - operating leases 8.5 % Weighted-average discount rate - financing lease 6.9 % Amortization of the right-of-use - As of March 31, 2020, future minimum commitments for the Company’s operating and financing leases for the years ending June 30 are summarized below. In thousands Operating lease liabilities: 2020 (excluding the nine months ended March 31, 2020) $ 275 2021 1,108 2022 1,127 2023 1,146 2024 and thereafter 3,311 Imputed interest (1,584 ) Operating lease liabilities per the Unaudited Condensed Balance Sheet $ 5,383 Finance lease liability: 2020 (excluding the nine months ended March 31, 2020) $ 13 2021 53 2022 39 Imputed interest (7 ) Finance lease liability per the Unaudited Condensed Balance Sheet $ 98 Based on the Company’s selected method of adoption for ASU 2016-02, under non-cancelable operating In thousands 2020 $ 1,353 2021 1,376 2022 1,400 2023 1,425 2024 1,450 Thereafter 2,638 Total 9,642 |
Share-based Compensation Plans
Share-based Compensation Plans | 9 Months Ended |
Mar. 31, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation Plans | 4. Share-based Compensation Plans The Company uses stock options, performance service awards, restricted stock awards and restricted stock units to provide long-term incentives to its employees, non-employee Information about the Company’s stock options that do not have performance conditions is provided below. Nine Months Ended March 31, 2020 2019 (In thousands, except per share amounts) Shares Weighted Average Shares Weighted Average Outstanding at June 30, 3,585 $ 9.19 3,107 $ 10.93 Granted 1,108 3.18 1,126 4.53 Exercised (81 ) 3.91 (29 ) 4.52 Forfeited (339 ) 3.97 (302 ) 7.21 Expired (324 ) 11.78 (200 ) 13.17 Outstanding at March 31, 3,949 $ 7.84 3,702 $ 9.22 Exercisable at March 31, 2,347 2,170 Weighted average fair value of options granted during the period $ 2.04 $ 2.91 The fair value of each option granted is estimated on the date of grant using the Black-Scholes stock option pricing model. Below are the assumptions that were used when estimating fair value. Assumption Nine months ended Nine months ended Dividend yield 0.00 % 0.00 % Expected term 6.00 to 6.25 years 6.00 to 6.25 years Risk-free interest rate 0.47% to 1.90 % 2.27% to 3.11 % Expected volatility 71.20 % 69.22 % In addition to the stock option activity described above, the Company also granted 100,000 performance-based stock options to a senior officer tran ches with tra nche one-sixth tranche During the nine months ended March 31, 2020, 175,500 restricted stock units, which included a market-based vesting condition related to the trading price of our common stock, were granted to certain of the Company’s employees under the 2013 Equity and Incentive Plan with a weighted average grant date fair value of $2.56. As of March 31, 2020, none of the restricted stock units had vested; however, the market condition embedded in the ing by the grantees, 50% of the remaining outstanding restricted stock units will vest on each of August 15, 2020 and August 15, 2021. The fair value of each restricted stock unit awarded was estimated on the grant date using a Monte Carlo simulation pricing model, which incorporated the probability of satisfying the related market-based vesting condition. Share-based compensation expense for the three and nine months ended March 31, 2020 was $0.9 million and $2.4 million, respectively, compared to $0.8 million and $3.1 million, respectively, for the three and nine months ended March 31, 2019. |
Investments
Investments | 9 Months Ended |
Mar. 31, 2020 | |
Schedule of Investments [Abstract] | |
Investments | 5 Investments Cash in excess of immediate requirements is invested in accordance with the Company’s investment policy, which primarily seeks to maintain adequate liquidity and preserve capital. As of both March 31, 2020 and June 30, 2019, the Company’s investments consisted entirely of held-to-maturity The Company’s debt securities that are classified as held-to-maturity In thousands March 31, 2020 June 30, 2019 U.S. Treasury Securities: Amortized cost 26,026 55,292 Gross unrealized gains 142 78 Gross unrealized losses — — Fair Value 26,168 55,370 The Company continues to expect to collect the principal and interest due on its debt securities that have an amortized cost in excess of fair value. At the end of each reporting period, the Company evaluates securities for impairment, if and when, the fair value of an investment is less than its amortized cost. In the event the fair value of an investment is less than its amortized cost, the Company will evaluate the underlying credit quality and credit ratings of the issuers. The Company does not intend to sell its investments before recovery of their amortized cost bases which may be at maturity. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Investments | 9 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Investments | 6. Fair Value of Financial Instruments and Investments Certain assets and liabilities are measured at fair value in the Company’s financial statements or have fair values disclosed in these Notes to Unaudited Condensed Financial Statements. Such assets and liabilities are classified into one of three levels of a hierarchy defined by U.S. GAAP. The Company’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The methods and assumptions described below were used to estimate fair values and determine the fair value hierarchy classification of each class of financial instrument held by the Company. Cash and Cash Equivalents. Debt securities—held-to-maturity. held-to-maturity The fair value hierarchy table below provides information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis or disclosed at fair value in these Notes to Unaudited Condensed Financial Statements. In thousands Level 1 Level 2 Level 3 Total Fair March 31, 2020 Cash and cash equivalents 58,491 $ — $ — $ 58,491 Held-to-maturity U.S. Treasury Securities 26,168 — — 26,168 Total assets 84,659 $ $ $ 84,659 June 30, 2019 Cash and cash equivalents 26,703 $ — $ — $ 26,703 Held-to-maturity U.S. Treasury Securities 55,370 — — 55,370 Total assets 82,073 $ — $ — $ 82,073 |
Collaboration Agreements
Collaboration Agreements | 9 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaboration Agreements | 7. Collaboration Agreements Biogen On July 1, 2015, the Company entered into a Collaboration Agreement with Biogen, pursuant to which the Company and Biogen collaborated to develop, seek regulatory approval for and commercialize gene therapy products to treat XLRS, XLRP, and discovery programs targeting three indications based on the Company’s adeno-associated virus vector technologies. Effective March 8, 2019, Biogen terminated the Collaboration Agreement. Upon termination, the Company received back the exclusive license rights to develop, manufacture and commercialize the product candidates for all of our partnered programs including our XLRP program, XLRS program and our three discovery programs. Accounting Analysis The performance obligations and the allocated transaction price as of the date of initial application of Topic 606 were as follows: In thousands Allocated XLRS License and Pre-Funded 52,060 XLRP License and Pre-Funded 43,570 Pre-Funded 16,700 112,330 The Pre-Funded Pre-Funded Pre-Funded The Company concluded that Post-Funded Activities represent customer options that are not material rights as any services requested by Biogen and provided by the Company are reimbursed at a rate that reflects the estimated standalone selling price for the services. As such, the Company recognized revenue related to Post-Funded Activities as the services were provided. The Company concluded that the option to receive (i) commercial licenses for the Discovery Programs that achieve clinical candidate designation, as defined in the Collaboration Agreement and (ii) manufacturing licenses for up to six genes pursuant to the Manufacturing Agreement represent customer options that were not material rights as the exercise price for such options reflects the estimated standalone selling price for such option. As such, the Company accounted for such option if and when the options were exercised. As of the date of the initial application of Topic 606, the total transaction price for the Biogen Agreement was $112.3 million , which included a $5.0 million milestone payment for initiation of dosing of XLRS and a $2.5 million milestone payment for initiation of dosing of XLRP. The Company used the most-likely method to determine the amount of variable consideration in the Biogen Agreement. The Company believes that any estimated amount of variable consideration related to clinical and regulatory milestone payments should be fully constrained as the achievement of such milestones was highly susceptible to factors outside of the Company’s control. The Company determined that the commercial milestones and sales-based royalties would be recognized when the related sales occurred as they were deemed to relate predominately to the license granted and therefore were also excluded from the transaction price. In the quarter ended September 30, 2018, the Company received a $10.0 million milestone payment related to XLRP which increased the transaction price. Based on an understanding between the parties in the quarter ended September 30, 2018, the Company also reallocated $1.1 million of Pre-Funded Pre-Funded The reallocation between Discovery Programs generated an insignificant cumulative catch up adjustment to revenue in the quarter ended September 30, 2018. The transaction price was allocated to the performance obligations based on the relative estimated standalone selling price of each performance obligation or, in the case of certain variable consideration, to one or more performance obligations. The estimated standalone selling prices for performance obligations, that include a license and Pre-Funded Pre-Funded The Company recognized revenue related to the performance obligations which included a license and Pre-Funded As a result of the termination of the Collaboration Agreement with Biogen effective March 8, 2019, the Company recognized the remaining deferred revenue balance as of the termination date. The Company’s revenue related to the Biogen Agreement for the three and nine months ended March 31, 2019 was comprised of the following: In thousands Three Months Ended March 31, 2019 Nine Months Ended March 31, 2019 Collaboration revenue: Licenses and related services 18,019 27,000 Development services 775 2,736 Milestone revenue 2,413 11,392 Total collaboration revenue 21,207 41,128 License and related services revenue comprise of revenue related to the Company’s completion of performance obligations that contained the delivery of licenses and Pre-Funded For a more detailed description of the Company’s collaboration agreement with Biogen refer to Note 7, Collaboration Agreements, of AGTC’s Annual Report on Form 10-K Bionic Sight On February 2, 2017, the Company entered into a strategic research and development collaboration agreement with Bionic Sight, LLC (“Bionic Sight”) to develop therapies for patients with visual deficits and blindness due to retinal disease. Through the AGTC-Bionic Sight collaboration, the companies seek to develop a new optogenetic therapy that leverages AGTC’s deep experience in gene therapy and ophthalmology and Bionic Sight’s innovative neuro-prosthetic device and algorithm for retinal coding. The collaboration agreement grants to AGTC, subject to achievement by Bionic Sight of certain development milestones, an option to exclusively negotiate for a limited period of time to acquire (i) a majority equity interest in Bionic Sight, (ii) the Bionic Sight assets to which the collaboration agreement relates, or (iii) an exclusive license with respect to the product to which the collaboration agreement relates. Under the agreement, AGTC made an initial $2.0 million payment to Bionic Sight for an equity interest in that company. This initial investment represented an equity interest of approximately 5% in Bionic Sight. In addition to the initial investment, AGTC contributed ongoing research and development support costs through additional payments and other in-kind in-kind in-kind Upon achievement of the IND Trigger, AGTC was (i) entitled to receive additional equity in Bionic Sight, based on the valuation in place at the beginning of the agreement, for the AGTC Ongoing R&D Support payments and in-kind pre-determined in-kind under the agreement The Company received the additional shares in Bionic Sight related to its $4.0 million investment and the conversion of the $2.2 million of in-kind The Company concluded that the AGTC Ongoing R&D Support was within the scope of Topic 606 because the services rendered represent a distinct service delivered to a counterparty that meets the definition of a customer. The Company further concluded that those services represented one combined performance obligation. Because the consideration that the Company was entitled to was contingent upon achievement of the IND Trigger, that consideration was determined to be variable and the amount was fully constrained until achievement of the IND Trigger. As a result of achieving the IND Trigger in December 2019, the Company recognized $2.2 million of collaboration revenue during the nine months ended March 31, 2020. With regard to the obligation to purchase additional equity in Bionic Sight for $4.0 million, the Company concluded at contract inception that such option represented a forward contract to be accounted for within the scope of ASC 321, Investments—Equity Securities The Company recorded its initial $2.0 million investment in Bionic Sight using the equity method of accounting for investments, which is recorded as its own line item in the Company’s Unaudited Condensed Balance Sheets. Upon the issuance of the additional shares in March 2020, the Company concluded that equity method accounting was still appropriate for the Company’s investment in Bionic Sight. Given that the conversion price used to calculate the number of additional shares that the Company was to receive was based on contractually fixed valuation amounts, the Company assessed whether there was a difference between the cost of the investment and the underlying equity in the net assets of Bionic Sight. The Company concluded that any such difference was not material to the Company’s financial statements and, therefore, recorded its additional investment in Bionic Sight at $6.2 million in its Unaudited Condensed Balance Sheet as of March 31, 2020. For the three and nine months ended March 31, 2020, the Company recorded equity in net losses of an affiliate of $11,000 and $27,000, respectively, in its Unaudited Statements of Operations to reflect its equity interest in the net loss es Bionic Sight . Otonomy, Inc. In October 2019, the Company entered into a strategic collaboration agreement with Otonomy, Inc. to co-develop co-commercialize AAV-based severe-to-profound The Company has concluded that the Otonomy collaboration agreement is within the scope of ASC 808, which defines collaborative arrangements and addresses the presentation of the transactions between the two parties in the income statement and related disclosures. However, ASC 808 does not provide guidance on the recognition of consideration exchanged or accounting for the obligations that may arise between the parties. The Company has concluded that ASC 730, Research and Development, |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 8. Subsequent Events On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the “COVID-19 COVID-19 The worldwide spread of the COVID-19 COVID-19 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying Unaudited Condensed Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and, in the opinion of management, include all adjustments necessary for a fair presentation of the Company’s financial position, results of operations, stockholders’ equity and cash flows for the periods presented. The adjustments referred to above are of a normal and recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to SEC rules and regulations for interim reporting. The Condensed Balance Sheet as of June 30, 2019 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The Company’s Unaudited Condensed Financial Statements should be read in conjunction with the audited financial statements included in the Company’s 2019 Annual Report on Form 10-K Form 10-K”). |
Segment Reporting | Segment reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. To date, we have viewed our operations and managed our business as one segment. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP and SEC regulations, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash consists of funds held in bank accounts. Cash equivalents consist of short-term, highly liquid investments with original maturities of 90 days or less at the time of purchase and generally include money market accounts. |
Investments | Investments The Company’s investments consist of certificates of deposit and debt securities classified as held-to-maturity. held-to-maturity maturity. Held-to-maturity held-to-maturity The Company uses the specific identification method to determine the cost basis of securities sold. Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. The Company evaluates an investment for impairment by considering the length of time and extent to which market value has been less than cost or amortized cost, the financial condition and near-term prospects of the issuer as well as specific events or circumstances that may influence the operations of the issuer and the Company’s intent to sell the security or the likelihood that it will be required to sell the security before recovery of the entire amortized cost. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to investment income (expense) and a new cost basis in the investment is established. |
Fair value of financial instruments | Fair value of financial instruments The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. The Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2—Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3—Valuations that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. |
Revenue recognition | Revenue recognition Effective July 1, 2018, the Company adopted the provisions of ASC Topic 606, Revenue from Contracts with Customers, The adoption of the new revenue recognition guidance resulted in an increase of $22.6 million in deferred revenue and accumulated deficit as of July 1, 2018. The Company may enter into collaboration agreements which are within the scope of Topic 606, under which the Company licenses rights to its technology and certain of the Company’s product candidates and performs research and development services for third parties. The terms of these arrangements typically may include payment of one or more of the following: non-refundable, up-front Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of Topic 606, the Company performs the following five steps: (i) identification of the contract; (ii) determination of whether the promised goods or services are performance obligations; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect consideration it is entitled to in exchange for the goods or services it transfers to the customer. Performance obligations are promises to transfer distinct goods or services to the customer. Promised goods or services are considered distinct when (i) the customer can benefit from the good or service on its own or together with other readily available resources and (ii) the promised good or service is separately identifiable from other promises in the contract. In assessing whether promised good or services are distinct, the Company considers factors such as the stage of development of the underlying intellectual property, the capabilities of the customer to develop the intellectual property on their own or whether the required expertise is readily available. The Company estimates the transaction price based on the amount expected to be received for transferring the promised goods or services in the contract. The consideration may include both fixed consideration and variable consideration. At the inception of an arrangement that includes variable consideration and at each reporting period, the Company evaluates the amount of potential payment and the likelihood that the payments will be received. The Company utilizes either the most likely amount method or expected amount method to estimate the amount to be received based on which method better predicts the amount expected to be received. If it is probable that a significant revenue reversal would not occur, the variable consideration is included in the transaction price. The Company will assess its revenue generating arrangements in order to determine whether a significant financing component exists and conclude that a significant financing component does not exist in any of its arrangements if: (a) the promised consideration approximates the cash selling price of the promised goods and services or any significant difference is due to factors other than financing; and (b) timing of payment approximates the transfer of goods and services and performance is over a relatively short period of time within the context of the entire term of the contract. The Company’s contracts will often include development and regulatory milestone payments. At contract inception and at each reporting period, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the customer’s control, such as regulatory approvals, are not included in the transaction price. At the end of each subsequent reporting period, the Company re-evaluates catch-up For arrangements that may include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue resulting from any of the Company’s collaboration arrangements. The Company allocates the transaction price based on the estimated standalone selling price of the underlying performance obligations or in the case of certain variable consideration to one or more performance obligations. The Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company utilizes key assumptions to determine the stand-alone selling price, which may include other comparable transactions, pricing considered in negotiating the transaction and the estimated costs to complete the respective performance obligation. Certain variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated to each performance obligation are consistent with the amounts the Company would expect to receive for each performance obligation. For performance obligations consisting of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front non-refundable, up-front The Company receives payments from its customers based on billing terms established in each contract. Such billings generally have 30-day Collaboration revenue To date, the Company’s collaboration revenue has been generated from its collaboration arrangement with Biogen and Bionic Sight as further described in Note 7, “ Collaboration Agreements. The Company analyzes its collaboration arrangements to assess whether they are within the scope of ASC 808, Collaborative Arrangements |
Income taxes | Income taxes The Company uses the asset and liability method for accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. As required by U.S. GAAP, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed into law. The CARES Act contains several significant provisions that affect corporations, including, among others, provisions addressing the use of net operating losses, interest deduction limitations and employer payroll tax payments. Management does not believe that the CARES Act will have a material impact on the Company; however, management will continue to monitor ongoing developments, new regulations and interpretive guidance regarding such legislation and evaluate any potential impact on the Company’s overall business and tax position. For the three and nine months ended March 31, 2020, the Company’s tax expense included an increase in the uncertain tax position liability of $21,000 and $63,000, respectively, related to interest on the uncertain tax position, compared to $19,000 and $57,000, respectively, for the three and nine months ended March 31, 2019. The uncertain tax position liability as of March 31, 2020 and June 30, 2019 was $2,098,000 and $2,035,000, respectively. |
Research and development | Research and development Research and development costs include costs incurred in identifying, developing and testing product candidates and generally comprise compensation and related benefits and non-cash pre-clinical As part of the process of preparing its financial statements, the Company is required to estimate its accrued expenses. This process involves reviewing quotations and contracts, identifying services that have been performed on its behalf and estimating the level of service performed and the associated cost incurred for services for which the Company has not yet been invoiced or otherwise notified of the actual cost. The majority of the Company’s service providers invoice the Company monthly in arrears for services performed or when contractual milestones are met. The Company makes estimates of its accrued expenses as of each balance sheet date in its financial statements based on facts and circumstances known to it at that time. The significant estimates in the Company’s accrued research and development expenses are related to expenses incurred with respect to academic research centers, contract research organizations, and other vendors in connection with research and development activities for which it has not yet been invoiced. There may be instances in which the Company’s service providers require advance payments at the inception of a contract or in which payments made to these vendors will exceed the level of services provided, resulting in a prepayment of the research and development expense. Such prepayments are charged to research and development expense as and when the service is provided or when a specific milestone outlined in the contract is reached. Prepayments related to research and development activities were $1.8 million and $0.7 million at March 31, 2020 and June 30, 2019, respectively, and are included in prepaid and other current assets in the Company’s Unaudited Condensed Balance Sheets. |
Share-based compensation | Share-based compensation The Company accounts for share-based awards issued to employees in accordance with ASC Topic 718, Compensation—Stock Compensation non-employees 10-K, 505-50, Equity-Based Payments to Non-employees 505-50”). 505-50, non-employees re-measurement No. 2018-07, Compensation - 2018-07”). As non-employee non-employee non-employees For purposes of calculating stock-based compensation, the Company uses Monte Carlo simulation model to determine the fair value of restricted stock units and Black-Scholes model to determine the fair value of stock options. The Monte Carlo simulation model incorporates probability of satisfying a market condition and uses transaction details such as the Company’s stock price, contractual terms, maturity, risk free rates, as well as, volatility. The Black-Scholes model is affected by the Company’s stock price at the grant date and incorporates a number of assumptions, including expected volatility, expected term, risk-free interest rate and expected dividends. |
Net income or loss per share | Net income or loss per share Basic net income or loss per share is calculated by dividing net income or loss by the weighted average shares outstanding during the period, without consideration of common stock equivalents. Diluted net income or loss per share is calculated by adjusting weighted average shares outstanding for the dilutive effects of common stock equivalents outstanding during the period, determined using the treasury-stock method. For purposes of the diluted net income or loss per share calculations, stock options, restricted stock awards and performance service awards are considered to be common stock equivalents if they are dilutive. The dilutive impact of common stock equivalents (i) for the three and nine months ended March 31, 2020 was approximately 0.4 million shares and 0.2 million shares, respectively, and (ii) for both the three and nine months ended March 31, 2019 was approximately 0.2 million shares. However, the dilutive impact of common stock equivalents was excluded from the calculations of diluted net loss per share for both the three and nine months ended March 31, 2020 because their effects were anti-dilutive. Therefore, for each of the three and nine months ended March 31, 2020, basic and diluted net loss per share were the same. |
Comprehensive loss | Comprehensive income or loss Comprehensive income or loss consists of net income or loss and changes in equity during a period from transactions and other equity and circumstances generated from non-owner |
New Accounting Pronouncements | New Accounting Pronouncements Adopted during the nine months ended March 31, 2020 Leases In February 2016, the FASB issued ASU No. 2016-02, Leases 2016-02”), Leases right-of-use 2016-02 right-of-use ASU 2016-02 2016-02 2016-02 right-of-use There was no material impact from ASU 2016-02 right-of-use right-of-use 2016-02 right-of-use 2016-02. Share-Based Compensation In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting 2018-07 To be adopted in future periods Financial Instruments—Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Collaborative Arrangements In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 unit-of-account Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Equity Securities, Investment – Equity Method and Joint Ventures, and Derivatives and Hedging In January 2020, the FASB issued ASU No. 2020-01, Investments-Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Summary of lease costs recognized under ASC 842 and other information pertaining to the Company's operating and finance leases | The table below contains a summary of the lease costs recognized under ASU 2016-02 In thousands Three Months Ended Nine Months Ended Lease Cost: Finance lease cost Amortization of right-of-use $ 11 $ 34 Interest on lease liability 2 6 Operating lease cost 193 578 Variable lease cost 95 271 Total lease cost $ 301 $ 889 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for finance lease $ 2 $ 6 Operating cash flows used for operating leases $ 278 $ 829 Financing cash flows used for finance lease $ 11 $ 33 Other Information: Weighted-average remaining lease term - operating leases (in years) 6.4 Weighted-average remaining lease term - financing lease (in years) 2.1 Weighted-average discount rate - operating leases 8.5 % Weighted-average discount rate - financing lease 6.9 % |
Summary of future minimum commitments under the ASC 842 for the Company's operating and financing leases | As of March 31, 2020, future minimum commitments for the Company’s operating and financing leases for the years ending June 30 are summarized below. In thousands Operating lease liabilities: 2020 (excluding the nine months ended March 31, 2020) $ 275 2021 1,108 2022 1,127 2023 1,146 2024 and thereafter 3,311 Imputed interest (1,584 ) Operating lease liabilities per the Unaudited Condensed Balance Sheet $ 5,383 Finance lease liability: 2020 (excluding the nine months ended March 31, 2020) $ 13 2021 53 2022 39 Imputed interest (7 ) Finance lease liability per the Unaudited Condensed Balance Sheet $ 98 |
Summary of Future Annual Minimum Lease Payments Under Non-Cancelable Operating Leases | As such, below are the Company’s future annual minimum lease payments for the years ending June 30 under non-cancelable operating leases as of June 30, 2019. In thousands 2020 $ 1,353 2021 1,376 2022 1,400 2023 1,425 2024 1,450 Thereafter 2,638 Total 9,642 |
Share-based Compensation Plans
Share-based Compensation Plans (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | Information about the Company’s stock options that do not have performance conditions is provided below. Nine Months Ended March 31, 2020 2019 (In thousands, except per share amounts) Shares Weighted Average Shares Weighted Average Outstanding at June 30, 3,585 $ 9.19 3,107 $ 10.93 Granted 1,108 3.18 1,126 4.53 Exercised (81 ) 3.91 (29 ) 4.52 Forfeited (339 ) 3.97 (302 ) 7.21 Expired (324 ) 11.78 (200 ) 13.17 Outstanding at March 31, 3,949 $ 7.84 3,702 $ 9.22 Exercisable at March 31, 2,347 2,170 Weighted average fair value of options granted during the period $ 2.04 $ 2.91 |
Stock Option Pricing Model Assumption | The fair value of each option granted is estimated on the date of grant using the Black-Scholes stock option pricing model. Below are the assumptions that were used when estimating fair value. Assumption Nine months ended Nine months ended Dividend yield 0.00 % 0.00 % Expected term 6.00 to 6.25 years 6.00 to 6.25 years Risk-free interest rate 0.47% to 1.90 % 2.27% to 3.11 % Expected volatility 71.20 % 69.22 % |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Schedule of Investments [Abstract] | |
Summary of Company's Debt Securities Held-to-Maturity | The Company’s debt securities that are classified as held-to-maturity In thousands March 31, 2020 June 30, 2019 U.S. Treasury Securities: Amortized cost 26,026 55,292 Gross unrealized gains 142 78 Gross unrealized losses — — Fair Value 26,168 55,370 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Investments (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Major Category of Company's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The fair value hierarchy table below provides information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis or disclosed at fair value in these Notes to Unaudited Condensed Financial Statements. In thousands Level 1 Level 2 Level 3 Total Fair March 31, 2020 Cash and cash equivalents 58,491 $ — $ — $ 58,491 Held-to-maturity U.S. Treasury Securities 26,168 — — 26,168 Total assets 84,659 $ $ $ 84,659 June 30, 2019 Cash and cash equivalents 26,703 $ — $ — $ 26,703 Held-to-maturity U.S. Treasury Securities 55,370 — — 55,370 Total assets 82,073 $ — $ — $ 82,073 |
Collaboration Agreements (Table
Collaboration Agreements (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Performance Obligations and Transaction Price | The performance obligations and the allocated transaction price as of the date of initial application of Topic 606 were as follows: In thousands Allocated XLRS License and Pre-Funded 52,060 XLRP License and Pre-Funded 43,570 Pre-Funded 16,700 112,330 |
Components of Collaboration Revenue | The Company’s revenue related to the Biogen Agreement for the three and nine months ended March 31, 2019 was comprised of the following: In thousands Three Months Ended March 31, 2019 Nine Months Ended March 31, 2019 Collaboration revenue: Licenses and related services 18,019 27,000 Development services 775 2,736 Milestone revenue 2,413 11,392 Total collaboration revenue 21,207 41,128 |
Organization and Operations - A
Organization and Operations - Additional Information (Detail) | Feb. 13, 2020USD ($)shares | Feb. 11, 2020USD ($)$ / sharesshares | Mar. 08, 2019TargetIndication | Jul. 01, 2015TargetIndication | Jul. 31, 2015TargetIndication | Mar. 31, 2020USD ($)shares | Jun. 30, 2019USD ($)shares |
Summary Of Organization And Operations [Line Items] | |||||||
Common stock, shares issued | shares | 6,500,000 | 25,784,000 | 18,226,000 | ||||
Common stock, share price | $ / shares | $ 5 | ||||||
Aggregate proceeds received | $ 32,500,000 | $ 34,949,000 | |||||
Unpaid issuance costs | 138,000 | ||||||
Accumulated deficit | (166,937,000) | $ (135,548,000) | |||||
Cash and cash equivalents and liquid investments | $ 84,500,000 | ||||||
Underwritten Public Offering [Member] | |||||||
Summary Of Organization And Operations [Line Items] | |||||||
Common stock, shares issued | shares | 975,000 | ||||||
Aggregate proceeds received | $ 4,900,000 | ||||||
Collaboration Agreement [Member] | BIOGEN [Member] | |||||||
Summary Of Organization And Operations [Line Items] | |||||||
Number of target indications | TargetIndication | 3 | 3 | 3 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) shares in Millions | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2020USD ($)shares | Mar. 31, 2019USD ($)shares | Mar. 31, 2020USD ($)Segmentshares | Mar. 31, 2019USD ($)shares | Jul. 01, 2019USD ($) | Jun. 30, 2019USD ($) | Jul. 01, 2018USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |||||||
Number of operating segments | Segment | 1 | ||||||
Increase in uncertain tax position liability | $ 21,000 | $ 19,000 | $ 63,000 | $ 57,000 | |||
Uncertain tax position liability | 2,098,000 | 2,098,000 | $ 2,035,000 | ||||
Right of use asset | 3,503,000 | 3,503,000 | |||||
Lease liability | $ 5,383,000 | $ 5,383,000 | |||||
Dilutive impact of common stock equivalents | shares | 0.4 | 0.2 | 0.2 | 0.2 | |||
Prepaid and Other Current Assets [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Advance payments | $ 1,800,000 | $ 1,800,000 | $ 700,000 | ||||
Accounting Standards Update 2014-09 [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Increase in deferred revenue and accumulated deficit | $ 22,600,000 | ||||||
Accounting Standards Update 2016-02 [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Right of use asset | $ 3,700,000 | ||||||
Lease liability | $ 5,800,000 |
Leases - Additional Information
Leases - Additional Information (Detail) - ft² | Jul. 31, 2017 | Jan. 31, 2016 | Aug. 31, 2015 |
Alachua, Florida [Member] | |||
Leases Description [Line Items] | |||
Office and laboratory space for lease | 21,500 | ||
Term of operating lease agreement | 12 years | ||
Renewal term of operating lease agreement | 5 years | ||
Cambridge, Massachusetts [Member] | |||
Leases Description [Line Items] | |||
Office and laboratory space for lease | 8,000 | ||
Office and laboratory space for leased area | 3,000 | ||
Additional square footage upon lease renewal | 5,000 | ||
Term of operating lease agreement | 7 years | 2 years | |
Renewal term of operating lease agreement | 3 years |
Leases - Summary of lease costs
Leases - Summary of lease costs recognized under ASC 842 and other information pertaining to the Company's operating and finance leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Finance lease cost | |||
Amortization of right-of-use asset | $ 11 | $ 34 | |
Interest on lease liability | 2 | 6 | |
Operating lease cost | 193 | 578 | |
Variable lease cost | 95 | 271 | |
Total lease cost | 301 | 889 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows used for finance lease | 2 | 6 | |
Operating cash flows used for operating leases | 278 | 829 | |
Financing cash flows used for finance lease | $ 11 | $ 33 | $ 39 |
Other Information: | |||
Weighted-average remaining lease term - operating leases (in years) | 6 years 4 months 24 days | 6 years 4 months 24 days | |
Weighted-average remaining lease term - financing lease (in years) | 2 years 1 month 6 days | 2 years 1 month 6 days | |
Weighted-average discount rate - operating leases | 8.50% | 8.50% | |
Weighted-average discount rate - financing lease | 6.90% | 6.90% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Commitments for the Company's Operating and Financing Leases (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Operating lease liabilities: | |
2020 (excluding the nine months ended March 31, 2020) | $ 275 |
2021 | 1,108 |
2022 | 1,127 |
2023 | 1,146 |
2024 and thereafter | 3,311 |
Imputed interest | (1,584) |
Operating lease liabilities per the Unaudited Condensed Balance Sheet | 5,383 |
Finance lease liability: | |
2020 (excluding the nine months ended March 31, 2020) | 13 |
2021 | 53 |
2022 | 39 |
Imputed interest | (7) |
Finance lease liability per the Unaudited Condensed Balance Sheet | $ 98 |
Leases - Summary of Future Annu
Leases - Summary of Future Annual Minimum Lease Payments Under Non-Cancelable Operating Leases (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Commitments and Contingencies [Line Items] | |
2020 | $ 1,353 |
2021 | 1,376 |
2022 | 1,400 |
2023 | 1,425 |
2024 | 1,450 |
Thereafter | 2,638 |
Total minimum future lease payments | $ 9,642 |
Share-based Compensation Plan_2
Share-based Compensation Plans - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2019USD ($)$ / shares | Mar. 31, 2020USD ($)Plan$ / sharesshares | Mar. 31, 2019USD ($)$ / sharesshares | Jun. 30, 2019$ / shares | Jun. 30, 2018$ / shares | |
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of equity compensation plans | Plan | 2 | |||||
Stock options granted | 1,108,000 | 1,126,000 | ||||
Exercise price | $ / shares | $ 7.84 | $ 9.22 | $ 7.84 | $ 9.22 | $ 9.19 | $ 10.93 |
Grant date fair value | $ / shares | $ 2.04 | $ 2.91 | ||||
2013 Employee Stock Purchase Plan [Member] | ||||||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share based awards issued | 0 | |||||
Number of shares authorized | 128,571 | 128,571 | ||||
Stock Options [Member] | ||||||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ | $ 0.9 | $ 0.8 | $ 2.4 | $ 3.1 | ||
Restricted Shares Awards [Member] | ||||||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock awards to employees, Granted | 175,500 | |||||
Award vesting rights, percentage | 50.00% | |||||
Grant date fair value | $ / shares | $ 2.56 | |||||
Restricted stock awards to employees, forfeited | 15,000 | |||||
Six Performance Criteria Based Stock Options [Member] | Senior Executive [Member] | 2013 Equity and Incentive Plan [Member] | ||||||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock options granted | 100,000 | |||||
Exercise price | $ / shares | $ 3.91 | $ 3.91 | ||||
Expiration period | 10 years | |||||
Award vesting period | 3 years | |||||
Six Performance Criteria Based Stock Options [Member] | Senior Executive [Member] | 2013 Equity and Incentive Plan [Member] | Vesting Period One [Member] | ||||||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 25.00% | |||||
Six Performance Criteria Based Stock Options [Member] | Senior Executive [Member] | 2013 Equity and Incentive Plan [Member] | Vesting Period Two [Member] | ||||||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 75.00% | |||||
First Performance Criteria Based Stock Options [Member] | Senior Executive [Member] | 2013 Equity and Incentive Plan [Member] | ||||||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Grant date fair value | $ / shares | $ 2.58 |
Share-based Compensation Plan_3
Share-based Compensation Plans - Summary of Stock Option Activity (Detail) - $ / shares shares in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Outstanding Beginning Balance, Shares | 3,585 | 3,107 |
Granted, Shares | 1,108 | 1,126 |
Exercised, Shares | (81) | (29) |
Forfeited, Shares | (339) | (302) |
Expired, Shares | (324) | (200) |
Outstanding Ending Balance, Shares | 3,949 | 3,702 |
Exercisable, end of period, Shares | 2,347 | 2,170 |
Weighted average fair value of options granted during the period | $ 2.04 | $ 2.91 |
Outstanding Beginning Balance, Weighted Average Exercise Price | 9.19 | 10.93 |
Granted, Weighted Average Exercise Price | 3.18 | 4.53 |
Exercised, Weighted Average Exercise Price | 3.91 | 4.52 |
Forfeited, Weighted Average Exercise Price | 3.97 | 7.21 |
Expired, Weighted Average Exercise Price | 11.78 | 13.17 |
Outstanding Ending Balance, Weighted Average Exercise Price | $ 7.84 | $ 9.22 |
Share-based Compensation Plan_4
Share-based Compensation Plans - Stock Option Pricing Model Assumption (Detail) | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Risk-free interest rate, minimum | 0.47% | 2.27% |
Risk-free interest rate, maximum | 1.90% | 3.11% |
Expected volatility | 71.20% | 69.22% |
Minimum [Member] | ||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term | 6 years | 6 years |
Maximum [Member] | ||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term | 6 years 3 months | 6 years 3 months |
Investments - Summary of Compan
Investments - Summary of Company's Debt Securities Held-to-Maturity (Detail) - US Treasury Securities [Member] - Investments [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 26,026 | $ 55,292 |
Gross Unrealized Gains | 142 | 78 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 26,168 | $ 55,370 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments and Investments - Schedule of Major Category of Company's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value on a Recurring Basis [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 84,659 | $ 82,073 |
Cash and Cash Equivalents [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 58,491 | 26,703 |
US Treasury Securities [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 26,168 | 55,370 |
Quoted Prices in Active markets (Level 1) [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 84,659 | 82,073 |
Quoted Prices in Active markets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 58,491 | 26,703 |
Quoted Prices in Active markets (Level 1) [Member] | US Treasury Securities [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 26,168 | $ 55,370 |
Collaboration Agreements - Addi
Collaboration Agreements - Additional Information (Detail) | Mar. 08, 2019TargetIndication | Jul. 01, 2018USD ($) | Feb. 02, 2017USD ($)Site | Jul. 01, 2015TargetIndication | Jan. 31, 2020USD ($) | Oct. 31, 2019 | Jul. 31, 2015TargetIndication | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Collaboration revenue | $ 21,318,000 | $ 2,453,000 | $ 41,286,000 | |||||||||
Payments to acquire equity interest | 4,000,000 | |||||||||||
Equity in net losses of affiliate | $ 11,000 | 9,000 | 27,000 | 29,000 | ||||||||
Number of clinical site required to conduct clinical trials | Site | 1 | |||||||||||
Discovery Programs [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Increase (Decrease) in transaction price | $ 1,800,000 | |||||||||||
Mutations in GJB2 [Member] | Otonomy Inc [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Percentage on mutations in GJB2 account | 30.00% | |||||||||||
Collaboration [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Collaboration revenue | 21,207,000 | 2,297,000 | 41,128,000 | |||||||||
Accounting Standards Update 2014-09 [Member] | XLRP [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Increase (Decrease) in transaction price | 10,000,000 | |||||||||||
Bionic Sight LLC [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Additional Equity method investments | 6,200,000 | 6,200,000 | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Number of target indications | TargetIndication | 3 | 3 | 3 | |||||||||
Milestone Revenue | $ 112,300,000 | |||||||||||
Collaboration revenue | $ 21,207,000 | $ 41,128,000 | ||||||||||
Increase (Decrease) in transaction price | (1,100,000) | |||||||||||
Decrease in deferred revenue | $ (1,100,000) | |||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | XLRS [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Milestone Revenue | 5,000,000 | |||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | XLRP [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Milestone Revenue | $ 2,500,000 | |||||||||||
Strategic Research And Development Collaboration Agreement [Member] | Bionic Sight LLC [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Payments to acquire equity interest | $ 2,000,000 | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 | ||||||||
Percentage of investment in equity interest | 5.00% | 15.50% | 15.50% | |||||||||
Contributions of in-kind contributions | $ 2,200,000 | $ 2,200,000 | ||||||||||
Equity in net losses of affiliate | $ 11,000 | 27,000 | ||||||||||
Additional investment | $ 2,000,000 | |||||||||||
Ongoing research and development support costs | $ 2,200,000 | |||||||||||
Strategic Research And Development Collaboration Agreement [Member] | Bionic Sight LLC [Member] | If IND Trigger Attained [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Obligated to purchase additional equity at pre-determined valuation | $ 4,000,000 |
Collaboration Agreements - Summ
Collaboration Agreements - Summary of Performance Obligations and Transaction Price (Detail) - Collaboration Agreement [Member] - BIOGEN [Member] - Accounting Standards Update 2014-09 [Member] $ in Thousands | Jul. 01, 2018USD ($) |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Allocated Transaction Price | $ 112,330 |
XLRS [Member] | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Allocated Transaction Price | 52,060 |
XLRP [Member] | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Allocated Transaction Price | 43,570 |
Discovery Programs [Member] | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Allocated Transaction Price | $ 16,700 |
Collaboration Agreements - Comp
Collaboration Agreements - Components of Collaboration Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Total collaboration revenue | $ 21,318 | $ 2,453 | $ 41,286 |
Collaboration Agreement [Member] | BIOGEN [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Total collaboration revenue | 21,207 | 41,128 | |
Collaboration Agreement [Member] | BIOGEN [Member] | Licenses and Related Services [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Total collaboration revenue | 18,019 | 27,000 | |
Collaboration Agreement [Member] | BIOGEN [Member] | Development Services [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Total collaboration revenue | 775 | 2,736 | |
Collaboration Agreement [Member] | BIOGEN [Member] | Milestone Revenue [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Total collaboration revenue | $ 2,413 | $ 11,392 |