Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 09, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | DNAI | |
Entity Registrant Name | ProNAi Therapeutics Inc | |
Entity Central Index Key | 1,290,149 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 30,325,124 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents (Note 5) | $ 130,550 | $ 150,180 |
Prepaid expenses and other current assets (Note 5) | 543 | 1,673 |
Total current assets | 131,093 | 151,853 |
Property and equipment, net (Note 5) | 401 | 566 |
Other assets | 200 | 349 |
TOTAL ASSETS | 131,694 | 152,768 |
CURRENT LIABILITIES: | ||
Accrued liabilities (Note 5) | 6,190 | 7,016 |
Accounts payable | 734 | 358 |
Other current liabilities | 23 | |
Total current liabilities | 6,924 | 7,397 |
TOTAL LIABILITIES | 6,924 | 7,397 |
Commitments and Contingencies (Note 6) | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized as of June 30, 2016 and December 31, 2015; nil shares issued and outstanding as of June 30, 2016 and December 31, 2015 | ||
Common stock, $0.001 par value; 500,000,000 shares authorized as of June 30, 2016 and December 31, 2015; 30,220,083 and 30,058,105 shares issued and outstanding as of June 30, 2016 and December 31, 2015 | 30 | 30 |
Additional paid-in capital | 682,337 | 679,528 |
Accumulated deficit | (557,597) | (534,187) |
TOTAL STOCKHOLDERS' EQUITY | 124,770 | 145,371 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 131,694 | $ 152,768 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 30,220,083 | 30,058,105 |
Common stock, shares outstanding | 30,220,083 | 30,058,105 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating expenses: | ||||
Research and development | $ 9,115 | $ 4,738 | $ 15,751 | $ 10,034 |
General and administrative | 3,831 | 1,874 | 7,808 | 3,315 |
Total operating expenses | 12,946 | 6,612 | 23,559 | 13,349 |
Loss from operations | (12,946) | (6,612) | (23,559) | (13,349) |
Other income (expense), net: | ||||
Change in fair value of preferred stock warrants | (8,630) | (9,956) | ||
Other income (expense) | 88 | (6) | 171 | 19 |
Total other income (expense), net | 88 | (8,636) | 171 | (9,937) |
Loss before provision for income taxes | (12,858) | (15,248) | (23,388) | (23,286) |
Provision for income taxes | 14 | 1 | 22 | 11 |
Net loss | (12,872) | (15,249) | (23,410) | (23,297) |
Adjustment to redemption value on redeemable convertible preferred stock | (140,880) | (151,885) | ||
Net loss attributable to common stockholders | $ (12,872) | $ (156,129) | $ (23,410) | $ (175,182) |
Net loss per share attributable to common stockholders, basic and diluted (Note 3) | $ (0.43) | $ (104.10) | $ (0.78) | $ (117.35) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (Note 3) | 30,191,093 | 1,499,840 | 30,130,660 | 1,492,764 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Convertible and Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Convertible Preferred Stock [Member] | Redeemable Convertible Preferred Stock [Member] | Series B and B-1 Redeemable Convertible Preferred Stock [Member] | Common Stock [Member] | Common Stock [Member]Series C and D Redeemable Convertible Preferred Stock [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member]Series C and D Redeemable Convertible Preferred Stock [Member] | Additional Paid-In Capital [Member]Series B and B-1 Redeemable Convertible Preferred Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Stockholders Equity, Beginning Balance at Dec. 31, 2014 | $ (107,815) | $ 2,543 | $ 141,832 | $ 2 | $ (10) | $ (107,807) | |||||
Stockholders Equity, Beginning Balance, Shares at Dec. 31, 2014 | 224,564 | 17,042,064 | 1,588,701 | ||||||||
Issuance of common stock for exercise of stock options | 18 | $ 18 | |||||||||
Issuance of common stock for exercise of stock options, Shares | 41,505 | ||||||||||
Stock-based compensation | 3,186 | 3,186 | |||||||||
Vesting of early exercised stock options | 90 | 90 | |||||||||
Issuance of redeemable convertible preferred stock upon exercise of redeemable convertible preferred stock warrants | $ 8,976 | ||||||||||
Issuance of redeemable convertible preferred stock upon exercise of redeemable convertible preferred stock warrants, Shares | 481,671 | ||||||||||
Issuance of redeemable convertible preferred stock upon net exercise of redeemable convertible preferred stock warrants and reclassification of preferred stock warrant liability upon initial public offering | $ 11,785 | ||||||||||
Issuance of redeemable convertible preferred stock upon net exercise of redeemable convertible preferred stock warrants and reclassification of preferred stock warrant liability upon initial public offering, Shares | 390,032 | ||||||||||
Adjustment to redemption value on redeemable convertible preferred stock | (374,015) | $ 374,015 | (895) | (373,120) | |||||||
Conversion of convertible preferred stock to common stock upon initial public offering | 2,543 | $ (2,543) | 2,543 | ||||||||
Conversion of convertible preferred stock to common stock upon initial public offering, Shares | (224,564) | 252,817 | |||||||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | 536,608 | $ (536,608) | $ 18 | 536,590 | |||||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering, Shares | (17,913,767) | 18,109,136 | |||||||||
Issuance of stock, value | 143,549 | $ 9 | 143,540 | ||||||||
Issuance of stock, shares | 9,315,000 | ||||||||||
Redeemable convertible preferred stock dividend | $ (5,543) | $ (5,543) | |||||||||
Redeemable convertible preferred stock dividend, common stock issued | $ 1 | $ (1) | |||||||||
Redeemable convertible preferred stock dividend | 750,946 | ||||||||||
Reclassification of other-than-temporary losses on short-term investments to net loss | 10 | $ 10 | |||||||||
Net loss | (53,260) | (53,260) | |||||||||
Stockholders Equity, Ending Balance at Dec. 31, 2015 | 145,371 | $ 30 | 679,528 | (534,187) | |||||||
Stockholders Equity, Ending Balance, Shares at Dec. 31, 2015 | 30,058,105 | ||||||||||
Issuance of common stock for exercise of stock options | 120 | 120 | |||||||||
Issuance of common stock for exercise of stock options, Shares | 161,978 | ||||||||||
Stock-based compensation | 2,666 | 2,666 | |||||||||
Vesting of early exercised stock options | 23 | 23 | |||||||||
Net loss | (23,410) | (23,410) | |||||||||
Stockholders Equity, Ending Balance at Jun. 30, 2016 | $ 124,770 | $ 30 | $ 682,337 | $ (557,597) | |||||||
Stockholders Equity, Ending Balance, Shares at Jun. 30, 2016 | 30,220,083 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Convertible and Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Common Stock [Member] | |
Issuance of common stock in connection with initial public offering, issuance costs | $ 14.8 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (23,410) | $ (23,297) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 2,666 | 600 |
Change in fair value of preferred stock warrant liabilities | 9,956 | |
Depreciation and amortization | 106 | 39 |
Non-cash restructuring charges (note 12) | 811 | |
Other | 22 | 9 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 468 | (196) |
Accrued liabilities | (592) | 216 |
Accounts payable | 376 | 438 |
Net cash used in operating activities | (19,553) | (12,235) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (193) | (254) |
Change in restricted cash | 25 | (150) |
Proceeds from sale of property and equipment | 13 | |
Purchase of short-term investments | (18) | |
Net cash used in investing activities | (155) | (422) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from exercise of common stock options | 120 | 15 |
Payment of deferred offering costs | (15) | (992) |
Proceeds from early exercise of stock options | 13 | |
Proceeds from exercise of redeemable convertible preferred stock warrants | 267 | |
Net cash provided by (used in) financing activities | 105 | (697) |
Effect of foreign exchange rate changes on cash and cash equivalents | (27) | |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (19,630) | (13,354) |
CASH AND CASH EQUIVALENTS - Beginning of period | 150,180 | 29,154 |
CASH AND CASH EQUIVALENTS - End of period | 130,550 | 15,800 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 80 | 3 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION: | ||
Change in redemption value of redeemable convertible preferred stock | (151,885) | |
Issuance of redeemable convertible preferred stock on exercise of warrants | 1,125 | |
Deferred offering costs included in accounts payable and accrued liabilities | 1,744 | |
Property and equipment purchases included in accounts payable and accrued liabilities | $ 11 | $ 7 |
The Company and Basis of Presen
The Company and Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Basis of Presentation | 1. The Company and Basis of Presentation Organization and Description of Business ProNAi Therapeutics, Inc. (together with its subsidiaries, collectively referred to as the “Company”), a Delaware corporation, is a drug development company focused on advancing targeted therapeutics for the treatment of patients with cancer. The Company is managed by a world-class team with a proven track record of success in oncology drug development. ProNAi intends to build and advance a broad and diverse pipeline of promising oncology assets against emerging targets on the leading edge of cancer biology. ProNAi is developing PNT141, a potent, selective and orally bioavailable small molecule inhibitor of the Cdc7 kinase that the Company recently in-licensed. This kinase is a key regulator of both DNA replication and DNA damage response, making it a compelling emerging target for the potential treatment of a broad range of tumor types. The Company is actively seeking and evaluating additional oncology drug candidates for potential in-licensing or acquisition. The Company’s primary activities since inception have been conducting research and development activities, conducting preclinical and clinical testing, recruiting personnel, performing business and financial planning, identifying and evaluating additional drug candidates for potential in-licensing or acquisition, and raising capital to support development activities. The Company has not generated any product revenue related to its primary business purpose to date, nor has it generated any income, and is subject to a number of risks and uncertainties, which include dependence on key individuals, the need to identify and successfully develop commercially viable products, the need to obtain regulatory approval for its products and commercialize them, and the need to obtain adequate additional financing to fund the development of its product candidates. Initial Public Offering On July 15, 2015, the Company’s Registration Statement on Form S-1 (File No. 333-204921) relating to the initial public offering (IPO) of its common stock was declared effective by the Securities and Exchange Commission (SEC). Pursuant to such Registration Statement, the Company sold an aggregate of 9,315,000 shares of its common stock at a price of $17.00 per share for aggregate cash proceeds of approximately $143.6 million, net of underwriting discounts and commissions and offering costs. On July 21, 2015, immediately prior to the closing of the IPO, all outstanding shares of convertible and redeemable convertible preferred stock converted into 18,361,953 shares of common stock, including an aggregate of 390,680 shares of common stock that were issued pursuant to the net exercise of 493,648 preferred stock warrants at the IPO price of $17.00 per share and an aggregate of 481,671 shares of common stock that were issued pursuant to the cash exercise of 481,671 preferred stock warrants. The IPO closed on July 21, 2015. As discussed further in Note 8, on the closing of the IPO, the Company paid $5.5 million to the holders of its Series B and B-1 redeemable convertible preferred stock in settlement of the cumulative dividends. In addition, the Company issued 750,946 shares of common stock to the holders of its Series C and D redeemable convertible preferred stock in settlement of the cumulative dividends. Following the filing of the Restated Certificate of Incorporation of the Company on July 21, 2015, the number of shares of capital stock the Company is authorized to issue is 510,000,000 shares, of which 500,000,000 shares may be common stock and 10,000,000 shares may be preferred stock. Both the common stock and the preferred stock have a par value of $0.001 per share. Reverse Stock Split On June 29, 2015, the Company’s board of directors approved an amendment to the Company’s Amended and Restated Certificate of Incorporation to effect a reverse split of the Company’s common stock, convertible preferred stock and redeemable convertible preferred stock at a 7.45-to-1 ratio (Reverse Stock Split). The Reverse Stock Split became effective on July 2, 2015, upon the filing of the amendment to the Company’s Amended and Restated Certificate of Incorporation. The authorized shares and par value of the common, convertible preferred and redeemable convertible preferred stock were not adjusted as a result of the Reverse Stock Split. All issued and outstanding common stock, convertible preferred stock, redeemable convertible preferred stock, warrants to purchase preferred stock, options to purchase common stock and per share amounts contained in the condensed consolidated financial statements have been retroactively adjusted to reflect this Reverse Stock Split for all periods presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The condensed consolidated balance sheet as of June 30, 2016, the condensed consolidated statements of operations for the three and six months ended June 30, 2016 and 2015, the condensed consolidated statements of cash flows for the six months ended June 30, 2016 and 2015, and the condensed consolidated statements of convertible and redeemable convertible preferred stock and stockholders’ equity (deficit) for the six months ended June 30, 2016 are unaudited. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company’s condensed consolidated financial statements included in this report. The condensed consolidated financial data disclosed in these notes to the condensed consolidated financial statements related to the three and six month periods are also unaudited. The condensed consolidated results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016, or for any other future annual or interim period. The consolidated balance sheet as of December 31, 2015 included herein was derived from the audited consolidated financial statements as of that date. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 3, 2016. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expense during the reporting period. Significant estimates and assumptions made in the accompanying condensed consolidated financial statements include, but are not limited to the fair value of common stock, the fair value of preferred stock, the fair value of preferred stock warrant liabilities, the fair value of stock options, recoverability of the Company’s net deferred tax assets, and related valuation allowance and certain accruals. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates. Foreign Currency The functional currency of the Company’s foreign subsidiaries is the U.S. Dollar. Transactions denominated in currencies other than the functional currency are remeasured to the functional currency at the average exchange rate in effect during the period. At the end of each reporting period, monetary assets and liabilities are remeasured to the functional currency using exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are recorded at historical exchange rates. Gains and losses related to remeasurement are recorded in other income (expense) in the condensed consolidated statements of operations. The net foreign exchange transaction gains (losses) included in other income (expense) in the accompanying condensed consolidated statements of operations was insignificant for the three and six months ended June 30, 2016 and 2015. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less from the date of purchase to be cash equivalents. Cash and cash equivalents consist primarily of funds invested in readily available checking and savings accounts and highly liquid investments in money market funds. Restricted Cash Restricted cash represents collateral for a corporate credit card facility and security deposits required for facility leases. Restricted cash consists of funds invested in a money market fund. As of June 30, 2016, the current portion of restricted cash of $12,000 was included in prepaid expenses and other current assets and the long-term portion of restricted cash of $0.2 million was included in other assets in the accompanying condensed consolidated balance sheets. As of December 31, 2015, the current portion of restricted cash included in prepaid expenses and other current assets and the long-term portion of restricted cash included in other assets were $25,000 and $0.2 million, respectively. Concentrations of Credit Risk Financial instruments that subject the Company to significant concentrations of credit risk consist of cash, cash equivalents and restricted cash. All of the Company’s cash, cash equivalents and restricted cash are held at financial institutions in the United States and Canada that management believes to be of high credit quality. Deposits held in the United States with these financial institutions exceed federally insured limits. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company’s investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer and establishing a minimum allowable credit rating. Comprehensive Income (Loss) The Company had no components of comprehensive income (loss) other than net loss for all periods presented. Fair Value of Financial Instruments The Company’s cash and cash equivalents, restricted cash, other current assets, accounts payable, and accrued liabilities approximate their fair value at June 30, 2016 and December 31, 2015, due to their short duration. The Company’s preferred stock warrant liabilities contain unobservable inputs that reflect the Company’s own assumptions in which there is little, if any, market activity at the measurement date; thus, the Company’s warrant liabilities were measured at fair value on a recurring basis using unobservable inputs until they were exercised in 2015. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines the fair value of its financial instruments based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: Level 1 Level 2 Level 3 Property and Equipment, Net Property and equipment, net are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization on property and equipment, excluding leasehold improvements, is computed using the straight-line method over the estimated useful lives of the respective assets, generally three to five years. Depreciation and amortization begins at the time the asset is placed in service. Maintenance and repairs are charged to operations as incurred. Upon sale or retirement of assets, the cost and related accumulated depreciation are removed from the condensed consolidated balance sheet and the resulting gain or loss is reflected in the condensed consolidated statement of operations. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful lives of the assets or the remaining lease term. Other Assets Other assets consist primarily of restricted cash pledged as collateral for a corporate credit card facility and security deposits required for facility leases. Preferred Stock Warrant Liabilities The Company accounts for its warrants issued in connection with its various financing transactions based upon the characteristics and provisions of the instrument. Warrants classified as derivative liabilities are recorded on the Company’s condensed consolidated balance sheets at their fair value on the date of issuance and remeasured to fair value on each subsequent reporting period, with the changes in fair value recognized as a component of other income (expense), net in the accompanying condensed consolidated statements of operations. On the closing of the IPO on July 21, 2015 (discussed in Note 1), all outstanding warrants were exercised and the liability on the preferred stock warrants was reclassified to additional paid-in capital in stockholders’ equity (deficit), and was no longer subject to remeasurement. Research and Development Costs Research and development costs are expensed as incurred. The Company accounts for non-refundable advance payments for goods and services that will be used in future research and development activities as expenses when the goods have been received or when the service has been performed rather than when the payment is made. Depending on the timing of payments to service providers of research and development costs, the Company recognizes prepaid expenses or accrued expenses related to these costs. These prepaid or accrued expenses are based on management’s estimates of the work performed under service agreements and milestones achieved. In the event that a clinical trial is terminated early, the Company records an accrual for the estimated remaining costs to complete the trial in the period of termination. Upfront payments made in connection with license agreements are expensed as research and developments costs, as the assets acquired do not have alterative future use. Contingent milestone payment obligations due to third parties under license agreements are expensed when the milestones results are achieved. Research and development costs include fees incurred in connection with license agreements, compensation and other related costs for employees engaged in research and development, costs associated with preclinical studies and trials, regulatory activities, manufacturing activities to support clinical activities, license fees, fees paid to external service providers that conduct certain research and development, clinical, and manufacturing activities on behalf of the Company and an allocation of overhead expenses. Stock-Based Compensation The Company accounts for share-based payments at fair value, which is measured using the Black-Scholes option-pricing model. For share-based awards that vest subject to the satisfaction of a service requirement, the fair value measurement date for employee stock-based compensation awards is the date of grant and the expense is recognized on a straight-line basis over the vesting period. For share-based awards that vest subject to the satisfaction of a service requirement and a performance component, the fair value measurement date is the date of grant and is recognized over the requisite service period as achievement of the performance objective becomes probable. Stock-based compensation arrangements with non-employees are recognized at the grant date and remeasured to fair value at each reporting period. The expense is recognized over the vesting period, which is generally the service period. Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Management makes an assessment of the likelihood that the resulting deferred tax assets will be realized. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. Due to the Company’s historical operating performance and the recorded cumulative net losses in prior fiscal periods, the net U.S. deferred tax assets have been offset by a full valuation allowance. The Company recognizes uncertain income tax positions at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Changes in recognition or measurement are reflected in the period in which judgment occurs. The Company recognizes interest and penalties related to the underpayment of income taxes as a component of provision for income taxes. Segment Information Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s Chief Executive Officer views the Company’s operations and manages its business in one operating segment, which is the business of researching, developing and commercializing therapies for the treatment of patients with cancer. Accordingly, the Company has a single reporting segment. Recent Accounting Pronouncements Not Yet Effective In February 2016, the Financial Accounting Standards Board (FASB) issued FASB Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued FASB ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 3. Net Loss Per Share Basic net loss per share is calculated by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, less common stock issued that is subject to repurchase, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, preferred stock and warrants to purchase preferred stock, stock options and common stock subject to repurchase are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: As of June 30, 2016 2015 Options to purchase common stock 4,409,724 3,294,849 Common stock subject to repurchase — 116,674 Convertible preferred stock — 252,817 Redeemable convertible preferred stock — 17,328,059 Warrants to purchase preferred stock — 885,201 Total potential dilutive shares 4,409,724 21,877,600 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The Company measures and reports its cash equivalents and restricted cash at fair value. The following table sets forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy: June 30, 2016 Level 1 Level 2 Level 3 Total (in thousands) Financial Assets Money market funds $ 128,340 $ — $ — $ 128,340 Restricted money market funds 200 — — 200 Total financial assets $ 128,540 $ — $ — $ 128,540 December 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Financial Assets Money market funds $ 148,604 $ — $ — $ 148,604 Restricted money market funds 225 — — 225 Total financial assets $ 148,829 $ — $ — $ 148,829 Money market funds and restricted money market funds are measured at fair value on a recurring basis using quoted prices and are classified as a Level 1 input. There were no transfers between Levels 1, 2 or 3 during the three and six months ended June 30, 2016. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | 5. Balance Sheet Components Cash and Cash Equivalents Cash and cash equivalents consist of the following: June 30, December 31, (in thousands) Cash $ 2,210 $ 1,576 Cash equivalents: Money market accounts 128,340 148,604 Total cash and cash equivalents $ 130,550 $ 150,180 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: June 30, December 31, (in thousands) Prepaid research and development project costs $ 33 $ 878 Prepaid insurance 84 480 Other receivables 154 44 Other 272 271 Total prepaid expenses and other current assets $ 543 $ 1,673 Property and Equipment, net Property and equipment, net consists of the following: June 30, December 31, (in thousands) Computer equipment $ 258 $ 242 Software 150 126 Lab equipment — 236 Leasehold improvements 110 79 Furniture and fixtures 47 5 Property and equipment, gross 565 688 Less: accumulated depreciation (164 ) (122 ) Total property and equipment, net $ 401 $ 566 Depreciation and amortization related to the Company’s property and equipment was $54,000 and $106,000 for the three and six months ended June 30, 2016 and was $26,000 and $39,000 for the three and six months ended June 30, 2015. During the three months ended June 30, 2016, as a result of the decision to halt investment in PNT2258 and the DNAi platform, the Company recorded impairment charges of $130,000 on its lab equipment (note 12). Accrued Liabilities Accrued liabilities consist of the following: June 30, December 31, (in thousands) Accrued research and development costs $ 2,147 $ 4,318 Accrued restructuring costs (note 12) 2,150 — Accrued employee-related costs 1,448 1,529 Accrued professional fees 227 933 Other 218 236 Total accrued liabilities $ 6,190 $ 7,016 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies License Agreements In May 2016, the Company entered into an exclusive license agreement with Carna Biosciences, Inc. (Carna) for worldwide rights to develop and commercialize PNT141, a small molecule kinase inhibitor targeting Cdc7 (the Carna License Agreement). In exchange for this exclusive right, the Company paid Carna an upfront payment of $0.9 million in June 2016. The Company will be required to pay Carna milestone payments of up to an aggregate of $270 million upon achievement of certain developmental, regulatory and commercial milestone events. In addition, for product candidates defined under the Carna License Agreement, the Company is required to pay Carna tiered single-digit royalties on net sales. As of June 30, 2016, the Company had not accrued any milestone payments to Carna. Milestone payments will be accrued once they are considered probable of occurring. Lease Agreements The Company leases its Michigan facility under a month-to-month operating lease that provides for a fixed monthly rent and also certain rent adjustments covering the expenses and taxes of the facility. In February 2015, the Company entered into an operating lease agreement to sublease office space in Vancouver, Canada. The operating lease agreement expires on February 27, 2018. Under the terms of the agreement, the Company issued a letter of credit to the sublessor on closing, which was collateralized by a restricted deposit of $25,000 at June 30, 2016. In January 2016, the Company entered into an operating lease agreement to lease office space near San Francisco, California. The operating lease agreement expires on April 30, 2019. In addition to base rent, these leases require payment of taxes and other operating costs. These operating costs are not included in the table below. As of June 30, 2016, the aggregate future non-cancelable minimum lease payments associated with these operating leases are as follows: Years Ending December 31: Operating Leases (in thousands) 2016 $ 176 2017 357 2018 209 2019 50 Total $ 792 The total rent expense for all operating leases was $0.2 million and $0.3 million for the three and six months ended June 30, 2016 and was $0.1 million for the three and six months ended June 30, 2015. Legal From time to time, the Company may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. In addition, the Company may receive letters alleging infringement of patent or other intellectual property rights. The Company is not currently a party to any material legal proceedings, nor is it aware of any pending or threatened litigation that, in the Company’s opinion, would have a material adverse effect on the business, operating results, cash flows or financial condition should such litigation be resolved unfavorably. |
Common Stock Reserved for Issua
Common Stock Reserved for Issuance | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Common Stock Reserved for Issuance | 7. Common Stock Reserved for Issuance The Company is required to reserve and keep available out of its authorized but unissued shares of common stock a number of shares sufficient to effect the conversion of all outstanding options granted and available for grant under the incentive plans and shares reserved for issuance under the employee stock purchase plan. June 30, December 31, Outstanding and issued stock options 4,409,724 3,522,813 Shares reserved for future option grants 3,677,314 3,523,879 Shares reserved under the 2015 employee stock purchase plan 700,000 700,000 Total common stock reserved for issuance 8,787,038 7,746,692 |
Preferred Stock
Preferred Stock | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Preferred Stock | 8. Preferred Stock Preferred Stock As of June 30, 2016, the Company had 10,000,000 shares of preferred stock authorized with a par value of $0.001. No shares of preferred stock were outstanding as of June 30, 2016. Convertible and Redeemable Convertible Preferred Stock During the year ended December 31, 2015, the Company issued an aggregate of 481,671 shares of redeemable convertible preferred stock upon the cash exercise of the Company’s Series B-1 and Series C redeemable convertible preferred stock warrants, consisting of 444,286 shares of Series B-1 redeemable convertible preferred stock and 37,385 shares of Series C redeemable convertible preferred stock. In addition, during the year ended December 31, 2015, the Company issued an aggregate of 390,032 shares of redeemable convertible preferred stock upon the net exercise of the Company’s Series B, Series B-1 and Series C redeemable convertible preferred stock warrants, consisting of 5,850 shares of Series B redeemable convertible preferred stock, 291,165 shares of Series B-1 redeemable convertible preferred stock and 93,017 shares of Series C redeemable convertible preferred stock. On July 21, 2015 (closing date of the IPO), all outstanding shares of Series A convertible preferred stock converted into 252,817 shares of common stock and all outstanding shares of Series B, Series B-1, Series C and Series D redeemable convertible preferred stock converted into 18,109,136 shares of common stock. On issuance, the Company’s convertible and redeemable convertible preferred stock was recorded at fair value or the amount of allocated proceeds, net of issuance costs. The Company’s Series B, B-1, C and D redeemable convertible preferred stock was classified outside of stockholders’ equity (deficit) from issuance through the closing of the IPO, because the stock contained redemption features that commenced at any time on or after December 31, 2018 at the election of the Series B, B-1, C and D redeemable convertible preferred stockholders. The Company adjusted the carrying amount of the redeemable convertible preferred stock to equal the redemption value at the end of each reporting period. Due to the absence of retained earnings, adjustments to redemption value were recorded against additional paid-in capital, if any, and then to accumulated deficit. The change in the redemption value of the redeemable convertible preferred stock for the six months ended June 30, 2015 was as follows: Redeemable Convertible Preferred Stock (in thousands) Series B $ 23,184 Series B-1 16,307 Series C 20,359 Series D 92,035 Total adjustment to redemption value on redeemable convertible preferred stock $ 151,885 As the redemption value for the redeemable convertible preferred stock was at times based on fair market value, the Company determined the fair value of the redeemable convertible preferred stock using a combination of the OPM and/or the PWERM models, or the fair value of the Company’s common stock. The following assumptions were used in the OPM to determine fair value of the redeemable convertible preferred stock for the six months ended June 30, 2015: Expected term (in years) 0.9 Expected volatility 66 % Risk-free interest rate 0.2 % Expected dividend rate — % Amendment to Dividend Rights On June 11, 2015, the Company’s stockholders approved an amendment to the Company’s Certificate of Incorporation to modify the terms of the cumulative accruing dividends on the outstanding shares of the Company’s Series C and Series D redeemable convertible preferred stock. Under the terms of the Amended Certificate of Incorporation, upon conversion of the Company’s redeemable convertible preferred stock into common stock in connection with an IPO, the Company was required to pay 50% of the then accrued but unpaid accruing dividends on shares of the Series C and Series D redeemable convertible preferred stock in shares of the Company’s common stock instead of payment in cash and the remaining 50% of the then accrued but unpaid accruing dividends was to be forfeited. The settlement of the accrued but unpaid accruing dividends in shares of common stock was required to be at the original issue price of the Series C and Series D redeemable convertible preferred stock of $5.215 per share. The terms of the dividends payable on the Series B and Series B-1 preferred stock were not modified. Settlement of Cumulative Dividends On July 21, 2015 (closing date of the IPO), the Company had total cumulative unpaid dividends in arrears of $18.9 million, which consisted of $9.4 million for the Series B, $1.7 million for the Series B-1, $1.7 million for the Series C and $6.1 million for the Series D redeemable convertible preferred stock. During the year ended December 31, 2015, the Company paid in cash accruing dividends in the aggregate amount of $5.5 million to the Series B and B-1 redeemable convertible preferred stockholders, consisting of $4.7 million for the Series B and $0.8 million for the Series B-1 redeemable convertible preferred stockholders. In addition, during the year ended December 31, 2015, the Company issued an aggregate of 750,946 shares of common stock to the Series C and D redeemable convertible preferred stockholders with an aggregate fair value of $20.4 million in settlement of the Series C and Series D redeemable convertible preferred stock cumulative dividends in accordance with the June 11, 2015 amendment discussed above, consisting of 161,536 shares of common stock with a fair value of $4.4 million to the Series C redeemable convertible preferred stockholders and 589,410 shares of common stock with a fair value of $16.0 million to the Series D redeemable convertible preferred stockholders. |
Preferred Stock Warrants
Preferred Stock Warrants | 6 Months Ended |
Jun. 30, 2016 | |
Text Block [Abstract] | |
Preferred Stock Warrants | 9. Preferred Stock Warrants The Company classified its preferred stock warrants as liabilities. During the year ended December 31, 2015, $19.3 million of the fair value of the warrant liability was reclassified to redeemable convertible preferred stock and then into additional paid-in capital in stockholders’ equity (deficit) on conversion of redeemable convertible preferred stock into common stock on the closing of the IPO. The warrants were no longer outstanding at September 30, 2015. During the year ended December 31, 2015, 31,778 of the Series B-1 warrants were cash exercised at an exercise price of $7.45 per share, 412,508 of the Series B-1 warrants were cash exercised at an exercise price of $2.6075 per share and 37,385 of the Series C warrants were cash exercised at an exercise price of $5.215 per share, resulting in total aggregate cash proceeds to the Company of $1.5 million. On the closing of the Company’s IPO, all of the remaining outstanding preferred stock warrants were net exercised at the IPO price of $17.00 per share, which resulted in 6,499 shares of common stock being issued upon the net exercise of outstanding warrants to purchase 10,414 shares of Series B preferred stock, 291,164 shares of common stock being issued upon the net exercise of outstanding warrants to purchase 349,054 shares of Series B-1 preferred stock and 93,017 shares of common stock being issued upon the net exercise of outstanding warrants to purchase 134,180 shares of Series C preferred stock. During the six months ended June 30, 2015, the Company remeasured the preferred stock warrants using the OPM and/or PWERM models, or based on the fair value of the underlying stock. On the closing of the IPO in July 2015, the outstanding preferred stock warrants were exercised and the liability on the preferred stock warrants was reclassified to additional paid-in capital in stockholders’ equity (deficit), and was no longer subject to remeasurement. The change in fair value of the preferred stock warrant liabilities is attributable to the increase of the fair value of the underlying stock. The change in the fair value of preferred stock warrants for the three and six months ended June 30, 2015 is recognized as a component of other income (expense), net in the condensed consolidated statements of operations. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation In the accompanying condensed consolidated statements of operations, the Company recognized stock-based compensation expense for its employees and non-employees as follows: Three Months June 30, Six Months June 30, 2016 2015 2016 2015 (in thousands) Research and development $ 807 $ 225 $ 1,761 $ 299 General and administrative 496 195 905 301 Total stock-based compensation $ 1,303 $ 420 $ 2,666 $ 600 Determination of Fair Value The estimated grant-date fair values of all of the Company’s stock-based awards were calculated using the Black-Scholes option pricing model, based on assumptions as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Expected term (in years) 5.3 – 7.0 5.2 – 10.0 5.3 – 9.9 6.0 – 10.0 Expected volatility 77 – 85% 75 – 79% 77 – 85% 75 – 81% Risk-free interest rate 1.1 – 1.7% 1.7% 1.1 – 1.9% 1.5 – 1.7% Expected dividend rate — % — % — % — % Equity Incentive Plans 2015 Plan The 2015 Equity Incentive Plan (2015 Plan) became effective on July 14, 2015. Under the 2015 Plan, 3,400,000 shares of common stock were initially reserved for issuance pursuant to a variety of stock-based compensation awards, including stock options, restricted stock awards, stock appreciation rights, restricted stock units, performance awards, cash awards and stock bonuses. In addition, 365,535 shares that had been available for future awards under the 2008 Plan as of July 14, 2015, were added to the initial reserve available under the 2015 Plan, bringing the total number of shares reserved for issuance under the 2015 Plan upon its effective date to 3,765,535 shares. The number of shares initially reserved for issuance under the 2015 Plan will increase automatically on January 1 of each calendar year 2016 through 2025 by the number of shares equal to 4% of the total outstanding shares of the Company’s common stock as of the immediately preceding December 31. Accordingly, 1,202,324 shares were added to the reserve available under the 2015 Plan on January 1, 2016. The Company’s Board of Directors or Compensation Committee may reduce the amount of the increase in any particular year. The exercise price of each stock-based award issued under the 2015 Plan is required to be no less than the fair value of the Company’s capital stock. The vesting and exercise provisions of options or restricted awards granted are determined individually with each grant. Stock options have a 10-year life and expire if not exercised within that period or if not exercised within three months of cessation of employment with the Company or such longer period of time as specified in the option agreement. 2008 Plan The Company granted options under the 2008 Stock Plan (2008 Plan) until July 2015 when it was terminated as to future awards, although it continues to govern the terms of options that remain outstanding under the 2008 Plan. The 2008 Plan provided for the granting of Incentive Stock Options (ISO), nonqualified stock options and stock purchase rights. In connection with the Board of Director’s approval of the 2015 Plan, all remaining shares available for future award under the 2008 Plan were transferred to the 2015 Plan, and the 2008 Plan was terminated. A summary of activity under the 2008 Plan and 2015 Plan and related information is as follows: Options Outstanding Shares Number Weighted- Weighted- Aggregate Outstanding — December 31, 2015 3,523,879 3,522,813 $ 3.81 8.78 $ 40,425 Awards authorized 1,202,324 Options granted (1,294,880 ) 1,294,880 5.82 Options exercised — (161,978 ) 0.74 Options forfeited/cancelled 245,991 (245,991 ) 8.39 Outstanding — June 30, 2016 3,677,314 4,409,724 $ 4.26 8.77 $ 1,935 Exercisable — June 30, 2016 2,248,919 $ 1.78 8.14 $ 1,935 Vested and expected to vest — June 30, 2016 4,269,833 $ 4.21 8.76 $ 1,897 The weighted-average grant date fair values of options granted during the three and six months ended June 30, 2016 was $2.23 and $3.93 per share and during the three and six months ended June 30, 2015 was $12.03 and $4.35 per share. The aggregate intrinsic value of options exercised was $0.2 million and $1.0 million for the three and six months ended June 30, 2016 and $0 and $0.4 million for the three and six months ended June 30, 2015. The total grant date fair value of options vested for the three and six months ended June 30, 2016 was $2.7 million and $3.5 million and during the three and six months ended June 30, 2015 was $0.1 million and $0.2 million. As of June 30, 2016, total unrecognized stock-based compensation related to unvested stock options was $13.9 million, net of estimated forfeitures. These costs are expected to be recognized over a remaining weighted-average period of 3.0 years as of June 30, 2016. Liability for Early Exercise of Stock Options The 2008 Plan allows for the granting of options that may be exercised before the options have vested. In December 2014, an executive officer early exercised 103,252 stock options. In February 2015, an executive officer early exercised 13,422 stock options. On early exercise, the awards became subject to a restricted stock agreement. The shares of restricted stock granted upon early exercise of the options are subject to the same vesting provisions as the original stock option awards. Shares issued as a result of early exercise that have not vested are subject to repurchase by the Company upon termination of the purchaser’s employment or services, at the price paid by the purchaser, and are not deemed to be issued for accounting purposes until those related shares vest. The liability is reclassified into common stock and additional paid-in capital as the shares vest and the repurchase right lapses. As at June 30, 2016, all stock granted upon early exercise of the options have vested and as such, the Company has no outstanding liability related to the early exercise of stock options. As of December 31, 2015, the Company recorded the unvested portion of the exercise proceeds of $23,000 as a current liability in the accompanying condensed consolidated balance sheets. As of December 31, 2015, 23,554 shares held by the employees were unvested and subject to repurchase. 2015 Employee Stock Purchase Plan The Company adopted the 2015 Employee Stock Purchase Plan (ESPP) and initially reserved 700,000 shares of common stock as of its effective date of July 15, 2015. The number of shares initially reserved for issuance under the ESPP will increase automatically on January 1 for nine years from the first offering date by the number of shares equal to 1% of the total outstanding shares of the Company’s common stock as of the immediately preceding December 31. The aggregate number of shares issued over the term of the 2015 Employee Stock Purchase Plan will not exceed 3,400,000 shares of common stock. Under the ESPP, participants are offered the options to purchase shares of the Company’s common stock at a 15% discount during a series of discrete offering periods, subject to any plan limitations. The ESPP will not become effective until such time as the Compensation Committee determines in the future, and as of June 30, 2016, the initial offering periods had not commenced. As of June 30, 2016, no shares of common stock have been issued to employees participating in the ESPP and 700,000 shares were available for issuance under the ESPP. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The Company did not record a provision for federal income taxes for the three and six months ended June 30, 2016 because it expects to generate a loss for the year ended December 31, 2016. The income tax expense of $14,000 and $22,000 for the three and six months ended June 30, 2016 represents foreign taxes. The Company’s net U.S. deferred tax assets continue to be offset by a full valuation allowance. |
Restructuring Costs
Restructuring Costs | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | 12. Restructuring Costs In June 2016, the Company halted investment in PNT2258 and the DNAi platform and closed the related Phase 2 clinical trials to further enrollment. As a result, the Company closed its research facility in Plymouth, Michigan, renegotiated and terminated certain contracts, and implemented staff reductions in the United States and Canada. The following table summarizes restructuring activities for the six months ended June 30, 2016: Contract Employee Asset Total (in thousands) Accrual balance at December 31, 2015 $ — $ — $ — $ — Restructuring costs charged to research and development expense 2,787 — — 2,787 Restructuring costs charged to general and administrative expense 5 186 130 321 Non-cash charges (681 ) — (130 ) (811 ) Cash payments (18 ) (129 ) — (147 ) Accrual balance at June 30, 2016 $ 2,093 $ 57 $ — $ 2,150 The accrual balance is expected to be fully paid in early 2017. There were no restructuring activities during the three and six months ended June 30, 2015. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated balance sheet as of June 30, 2016, the condensed consolidated statements of operations for the three and six months ended June 30, 2016 and 2015, the condensed consolidated statements of cash flows for the six months ended June 30, 2016 and 2015, and the condensed consolidated statements of convertible and redeemable convertible preferred stock and stockholders’ equity (deficit) for the six months ended June 30, 2016 are unaudited. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company’s condensed consolidated financial statements included in this report. The condensed consolidated financial data disclosed in these notes to the condensed consolidated financial statements related to the three and six month periods are also unaudited. The condensed consolidated results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016, or for any other future annual or interim period. The consolidated balance sheet as of December 31, 2015 included herein was derived from the audited consolidated financial statements as of that date. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 3, 2016. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expense during the reporting period. Significant estimates and assumptions made in the accompanying condensed consolidated financial statements include, but are not limited to the fair value of common stock, the fair value of preferred stock, the fair value of preferred stock warrant liabilities, the fair value of stock options, recoverability of the Company’s net deferred tax assets, and related valuation allowance and certain accruals. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates. |
Foreign Currency | Foreign Currency The functional currency of the Company’s foreign subsidiaries is the U.S. Dollar. Transactions denominated in currencies other than the functional currency are remeasured to the functional currency at the average exchange rate in effect during the period. At the end of each reporting period, monetary assets and liabilities are remeasured to the functional currency using exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are recorded at historical exchange rates. Gains and losses related to remeasurement are recorded in other income (expense) in the condensed consolidated statements of operations. The net foreign exchange transaction gains (losses) included in other income (expense) in the accompanying condensed consolidated statements of operations was insignificant for the three and six months ended June 30, 2016 and 2015. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less from the date of purchase to be cash equivalents. Cash and cash equivalents consist primarily of funds invested in readily available checking and savings accounts and highly liquid investments in money market funds. |
Restricted Cash | Restricted Cash Restricted cash represents collateral for a corporate credit card facility and security deposits required for facility leases. Restricted cash consists of funds invested in a money market fund. As of June 30, 2016, the current portion of restricted cash of $12,000 was included in prepaid expenses and other current assets and the long-term portion of restricted cash of $0.2 million was included in other assets in the accompanying condensed consolidated balance sheets. As of December 31, 2015, the current portion of restricted cash included in prepaid expenses and other current assets and the long-term portion of restricted cash included in other assets were $25,000 and $0.2 million, respectively. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that subject the Company to significant concentrations of credit risk consist of cash, cash equivalents and restricted cash. All of the Company’s cash, cash equivalents and restricted cash are held at financial institutions in the United States and Canada that management believes to be of high credit quality. Deposits held in the United States with these financial institutions exceed federally insured limits. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company’s investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer and establishing a minimum allowable credit rating. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company had no components of comprehensive income (loss) other than net loss for all periods presented. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s cash and cash equivalents, restricted cash, other current assets, accounts payable, and accrued liabilities approximate their fair value at June 30, 2016 and December 31, 2015, due to their short duration. The Company’s preferred stock warrant liabilities contain unobservable inputs that reflect the Company’s own assumptions in which there is little, if any, market activity at the measurement date; thus, the Company’s warrant liabilities were measured at fair value on a recurring basis using unobservable inputs until they were exercised in 2015. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines the fair value of its financial instruments based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: Level 1 Level 2 Level 3 |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization on property and equipment, excluding leasehold improvements, is computed using the straight-line method over the estimated useful lives of the respective assets, generally three to five years. Depreciation and amortization begins at the time the asset is placed in service. Maintenance and repairs are charged to operations as incurred. Upon sale or retirement of assets, the cost and related accumulated depreciation are removed from the condensed consolidated balance sheet and the resulting gain or loss is reflected in the condensed consolidated statement of operations. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful lives of the assets or the remaining lease term. |
Other Assets | Other Assets Other assets consist primarily of restricted cash pledged as collateral for a corporate credit card facility and security deposits required for facility leases. |
Preferred Stock Warrant Liabilities | Preferred Stock Warrant Liabilities The Company accounts for its warrants issued in connection with its various financing transactions based upon the characteristics and provisions of the instrument. Warrants classified as derivative liabilities are recorded on the Company’s condensed consolidated balance sheets at their fair value on the date of issuance and remeasured to fair value on each subsequent reporting period, with the changes in fair value recognized as a component of other income (expense), net in the accompanying condensed consolidated statements of operations. On the closing of the IPO on July 21, 2015 (discussed in Note 1), all outstanding warrants were exercised and the liability on the preferred stock warrants was reclassified to additional paid-in capital in stockholders’ equity (deficit), and was no longer subject to remeasurement. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. The Company accounts for non-refundable advance payments for goods and services that will be used in future research and development activities as expenses when the goods have been received or when the service has been performed rather than when the payment is made. Depending on the timing of payments to service providers of research and development costs, the Company recognizes prepaid expenses or accrued expenses related to these costs. These prepaid or accrued expenses are based on management’s estimates of the work performed under service agreements and milestones achieved. In the event that a clinical trial is terminated early, the Company records an accrual for the estimated remaining costs to complete the trial in the period of termination. Upfront payments made in connection with license agreements are expensed as research and developments costs, as the assets acquired do not have alterative future use. Contingent milestone payment obligations due to third parties under license agreements are expensed when the milestones results are achieved. Research and development costs include fees incurred in connection with license agreements, compensation and other related costs for employees engaged in research and development, costs associated with preclinical studies and trials, regulatory activities, manufacturing activities to support clinical activities, license fees, fees paid to external service providers that conduct certain research and development, clinical, and manufacturing activities on behalf of the Company and an allocation of overhead expenses. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for share-based payments at fair value, which is measured using the Black-Scholes option-pricing model. For share-based awards that vest subject to the satisfaction of a service requirement, the fair value measurement date for employee stock-based compensation awards is the date of grant and the expense is recognized on a straight-line basis over the vesting period. For share-based awards that vest subject to the satisfaction of a service requirement and a performance component, the fair value measurement date is the date of grant and is recognized over the requisite service period as achievement of the performance objective becomes probable. Stock-based compensation arrangements with non-employees are recognized at the grant date and remeasured to fair value at each reporting period. The expense is recognized over the vesting period, which is generally the service period. |
Income Taxes | Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Management makes an assessment of the likelihood that the resulting deferred tax assets will be realized. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. Due to the Company’s historical operating performance and the recorded cumulative net losses in prior fiscal periods, the net U.S. deferred tax assets have been offset by a full valuation allowance. The Company recognizes uncertain income tax positions at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Changes in recognition or measurement are reflected in the period in which judgment occurs. The Company recognizes interest and penalties related to the underpayment of income taxes as a component of provision for income taxes. |
Segment Information | Segment Information Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s Chief Executive Officer views the Company’s operations and manages its business in one operating segment, which is the business of researching, developing and commercializing therapies for the treatment of patients with cancer. Accordingly, the Company has a single reporting segment. |
Recent Accounting Pronouncements Not Yet Effective | Recent Accounting Pronouncements Not Yet Effective In February 2016, the Financial Accounting Standards Board (FASB) issued FASB Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued FASB ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Outstanding Shares of Common Stock Equivalents Excluded from Calculation of Diluted Net Loss Per Share Attributable to Common Stockholders | The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: As of June 30, 2016 2015 Options to purchase common stock 4,409,724 3,294,849 Common stock subject to repurchase — 116,674 Convertible preferred stock — 252,817 Redeemable convertible preferred stock — 17,328,059 Warrants to purchase preferred stock — 885,201 Total potential dilutive shares 4,409,724 21,877,600 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Financial Assets and Liabilities Measured on Recurring Basis | The following table sets forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy: June 30, 2016 Level 1 Level 2 Level 3 Total (in thousands) Financial Assets Money market funds $ 128,340 $ — $ — $ 128,340 Restricted money market funds 200 — — 200 Total financial assets $ 128,540 $ — $ — $ 128,540 December 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Financial Assets Money market funds $ 148,604 $ — $ — $ 148,604 Restricted money market funds 225 — — 225 Total financial assets $ 148,829 $ — $ — $ 148,829 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Cash and Cash Equivalents | Cash and cash equivalents consist of the following: June 30, December 31, (in thousands) Cash $ 2,210 $ 1,576 Cash equivalents: Money market accounts 128,340 148,604 Total cash and cash equivalents $ 130,550 $ 150,180 |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: June 30, December 31, (in thousands) Prepaid research and development project costs $ 33 $ 878 Prepaid insurance 84 480 Other receivables 154 44 Other 272 271 Total prepaid expenses and other current assets $ 543 $ 1,673 |
Summary of Property and Equipment, Net | Property and equipment, net consists of the following: June 30, December 31, (in thousands) Computer equipment $ 258 $ 242 Software 150 126 Lab equipment — 236 Leasehold improvements 110 79 Furniture and fixtures 47 5 Property and equipment, gross 565 688 Less: accumulated depreciation (164 ) (122 ) Total property and equipment, net $ 401 $ 566 |
Summary of Accrued Liabilities | Accrued liabilities consist of the following: June 30, December 31, (in thousands) Accrued research and development costs $ 2,147 $ 4,318 Accrued restructuring costs (note 12) 2,150 — Accrued employee-related costs 1,448 1,529 Accrued professional fees 227 933 Other 218 236 Total accrued liabilities $ 6,190 $ 7,016 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Aggregate Future Non-Cancelable Minimum Lease Payments | As of June 30, 2016, the aggregate future non-cancelable minimum lease payments associated with these operating leases are as follows: Years Ending December 31: Operating Leases (in thousands) 2016 $ 176 2017 357 2018 209 2019 50 Total $ 792 |
Common Stock Reserved for Iss25
Common Stock Reserved for Issuance (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Issuance | The Company is required to reserve and keep available out of its authorized but unissued shares of common stock a number of shares sufficient to effect the conversion of all outstanding options granted and available for grant under the incentive plans and shares reserved for issuance under the employee stock purchase plan. June 30, December 31, Outstanding and issued stock options 4,409,724 3,522,813 Shares reserved for future option grants 3,677,314 3,523,879 Shares reserved under the 2015 employee stock purchase plan 700,000 700,000 Total common stock reserved for issuance 8,787,038 7,746,692 |
Preferred Stock (Tables)
Preferred Stock (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Change in Redemption Value of Convertible Preferred Stock | The change in the redemption value of the redeemable convertible preferred stock for the six months ended June 30, 2015 was as follows: Redeemable Convertible Preferred Stock (in thousands) Series B $ 23,184 Series B-1 16,307 Series C 20,359 Series D 92,035 Total adjustment to redemption value on redeemable convertible preferred stock $ 151,885 |
Summary of Assumptions used to Determine Fair Value of Temporary Equity | As the redemption value for the redeemable convertible preferred stock was at times based on fair market value, the Company determined the fair value of the redeemable convertible preferred stock using a combination of the OPM and/or the PWERM models, or the fair value of the Company’s common stock. The following assumptions were used in the OPM to determine fair value of the redeemable convertible preferred stock for the six months ended June 30, 2015: Expected term (in years) 0.9 Expected volatility 66 % Risk-free interest rate 0.2 % Expected dividend rate — % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-based Compensation Expense for Employees and Non-employees | In the accompanying condensed consolidated statements of operations, the Company recognized stock-based compensation expense for its employees and non-employees as follows: Three Months June 30, Six Months June 30, 2016 2015 2016 2015 (in thousands) Research and development $ 807 $ 225 $ 1,761 $ 299 General and administrative 496 195 905 301 Total stock-based compensation $ 1,303 $ 420 $ 2,666 $ 600 |
Schedule of Estimated Grant-date Fair Values of Stock-based Awards Using Black-Scholes Option Pricing Model Assumptions | The estimated grant-date fair values of all of the Company’s stock-based awards were calculated using the Black-Scholes option pricing model, based on assumptions as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Expected term (in years) 5.3 – 7.0 5.2 – 10.0 5.3 – 9.9 6.0 – 10.0 Expected volatility 77 – 85% 75 – 79% 77 – 85% 75 – 81% Risk-free interest rate 1.1 – 1.7% 1.7% 1.1 – 1.9% 1.5 – 1.7% Expected dividend rate — % — % — % — % |
Summary of Stock-Based Compensation Activity | A summary of activity under the 2008 Plan and 2015 Plan and related information is as follows: Options Outstanding Shares Number Weighted- Weighted- Aggregate Outstanding — December 31, 2015 3,523,879 3,522,813 $ 3.81 8.78 $ 40,425 Awards authorized 1,202,324 Options granted (1,294,880 ) 1,294,880 5.82 Options exercised — (161,978 ) 0.74 Options forfeited/cancelled 245,991 (245,991 ) 8.39 Outstanding — June 30, 2016 3,677,314 4,409,724 $ 4.26 8.77 $ 1,935 Exercisable — June 30, 2016 2,248,919 $ 1.78 8.14 $ 1,935 Vested and expected to vest — June 30, 2016 4,269,833 $ 4.21 8.76 $ 1,897 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Activities | The following table summarizes restructuring activities for the six months ended June 30, 2016: Contract Employee Asset Total (in thousands) Accrual balance at December 31, 2015 $ — $ — $ — $ — Restructuring costs charged to research and development expense 2,787 — — 2,787 Restructuring costs charged to general and administrative expense 5 186 130 321 Non-cash charges (681 ) — (130 ) (811 ) Cash payments (18 ) (129 ) — (147 ) Accrual balance at June 30, 2016 $ 2,093 $ 57 $ — $ 2,150 |
The Company and Basis of Pres29
The Company and Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Millions | Jul. 21, 2015$ / sharesshares | Jul. 15, 2015USD ($)$ / sharesshares | Jun. 29, 2015 | Jun. 30, 2016USD ($)$ / sharesshares | Dec. 31, 2015$ / sharesshares |
Class of Stock [Line Items] | |||||
Shares issued, price per share | $ / shares | $ 17 | ||||
Convertible preferred stock, conversion basis | On July 21, 2015, immediately prior to the closing of the IPO, all outstanding shares of convertible and redeemable convertible preferred stock converted into 18,361,953 shares of common stock, including an aggregate of 390,680 shares of common stock that were issued pursuant to the net exercise of 493,648 preferred stock warrants at the IPO price of $17.00 per share and an aggregate of 481,671 shares of common stock that were issued pursuant to the cash exercise of 481,671 preferred stock warrants. The IPO closed on July 21, 2015. | ||||
Number of common stock shares issued upon exercise of preferred stock warrants | 390,680 | 481,671 | |||
Preferred stock warrants exercised | 493,648 | ||||
Capital stock, authorized | 510,000,000 | ||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | ||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||
Reverse stock split, description | 7.45-to-1 | ||||
Reverse Stock Split, Conversion Ratio | 0.13422818 | ||||
Reverse stock split, effective date | Jul. 2, 2015 | ||||
Series B and B-1 Redeemable Convertible Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Cumulative dividends | $ | $ 5.5 | ||||
Series C and D Redeemable Convertible Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Issuable common stock to redeemable convertible preferred stockholders | 750,946 | ||||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Stock issued, shares | 9,315,000 | ||||
Redeemable convertible preferred stock converted into common stock | 18,361,953 | ||||
Cash Exercise [Member] | |||||
Class of Stock [Line Items] | |||||
Number of common stock shares issued upon exercise of preferred stock warrants | 481,671 | ||||
Preferred stock warrants exercised | 481,671 | ||||
Initial Public Offering [Member] | |||||
Class of Stock [Line Items] | |||||
Stock issued, shares | 9,315,000 | ||||
Shares issued, price per share | $ / shares | $ 17 | ||||
Proceeds from issuance of common stock, net | $ | $ 143.6 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2016USD ($)Segment | Dec. 31, 2015USD ($) | |
Summary Of Significant Accounting Policy [Line Items] | ||
Number of operating segment | Segment | 1 | |
Minimum [Member] | Property Plant and Equipment Other than Leasehold Improvement [Member] | ||
Summary Of Significant Accounting Policy [Line Items] | ||
Estimated useful lives of assets | 3 years | |
Maximum [Member] | Property Plant and Equipment Other than Leasehold Improvement [Member] | ||
Summary Of Significant Accounting Policy [Line Items] | ||
Estimated useful lives of assets | 5 years | |
Other Assets [Member] | ||
Summary Of Significant Accounting Policy [Line Items] | ||
Long-term portion of restricted cash | $ 200,000 | $ 200,000 |
Prepaid Expenses and Other Current Assets [Member] | ||
Summary Of Significant Accounting Policy [Line Items] | ||
Current portion of restricted cash | $ 12,000 | $ 25,000 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Outstanding Shares of Common Stock Equivalents Excluded from Calculation of Diluted Net Loss Per Share Attributable to Common Stockholders (Detail) - shares | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 4,409,724 | 21,877,600 |
Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 252,817 | |
Redeemable Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 17,328,059 | |
Options to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 4,409,724 | 3,294,849 |
Common Stock Subject to Repurchase [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 116,674 | |
Warrants to Purchase Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 885,201 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Financial Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financial Assets | ||
Total financial assets | $ 128,540 | $ 148,829 |
Money Market Funds [Member] | ||
Financial Assets | ||
Total financial assets | 128,340 | 148,604 |
Restricted Money Market Funds [Member] | ||
Financial Assets | ||
Total financial assets | 200 | 225 |
Level 1 [Member] | ||
Financial Assets | ||
Total financial assets | 128,540 | 148,829 |
Level 1 [Member] | Money Market Funds [Member] | ||
Financial Assets | ||
Total financial assets | 128,340 | 148,604 |
Level 1 [Member] | Restricted Money Market Funds [Member] | ||
Financial Assets | ||
Total financial assets | $ 200 | $ 225 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | |
Fair Value Disclosures [Abstract] | ||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | $ 0 | $ 0 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Abstract] | ||||
Cash | $ 2,210 | $ 1,576 | ||
Cash equivalents: | ||||
Money market accounts | 128,340 | 148,604 | ||
Total cash and cash equivalents | $ 130,550 | $ 150,180 | $ 15,800 | $ 29,154 |
Balance Sheet Components - Su35
Balance Sheet Components - Summary of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid research and development project costs | $ 33 | $ 878 |
Prepaid insurance | 84 | 480 |
Other receivables | 154 | 44 |
Other | 272 | 271 |
Total prepaid expenses and other current assets | $ 543 | $ 1,673 |
Balance Sheet Components - Su36
Balance Sheet Components - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 565 | $ 688 |
Less: accumulated depreciation | (164) | (122) |
Total property and equipment, net | 401 | 566 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 258 | 242 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 150 | 126 |
Lab Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 236 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 110 | 79 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 47 | $ 5 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization related to property and equipment | $ 54,000 | $ 26,000 | $ 106,000 | $ 39,000 |
Lab Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charges | $ 130,000 |
Balance Sheet Components - Su38
Balance Sheet Components - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued research and development costs | $ 2,147 | $ 4,318 |
Accrued restructuring costs | 2,150 | |
Accrued employee-related costs | 1,448 | 1,529 |
Accrued professional fees | 227 | 933 |
Other | 218 | 236 |
Total accrued liabilities | $ 6,190 | $ 7,016 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Lease Agreements [Member] | |||||
Loss Contingencies [Line Items] | |||||
Total rent expense for operating leases | $ 200,000 | $ 100,000 | $ 300,000 | $ 100,000 | |
License Agreements [Member] | |||||
Loss Contingencies [Line Items] | |||||
Upfront payment paid | $ 900,000 | ||||
Operating Lease Agreement To Sublease Office Space [Member] | Vancouver [Member] | |||||
Loss Contingencies [Line Items] | |||||
Operating lease agreement expiration date | Feb. 27, 2018 | ||||
Collateralized restricted deposit | $ 25,000 | $ 25,000 | |||
Operating Lease Agreement To Lease Office Space [Member] | San Francisco [Member] | |||||
Loss Contingencies [Line Items] | |||||
Operating lease agreement expiration date | Apr. 30, 2019 | ||||
Maximum [Member] | License Agreements [Member] | |||||
Loss Contingencies [Line Items] | |||||
Aggregate milestone payment | $ 270,000,000 |
Commitments and Contingencies40
Commitments and Contingencies - Schedule of Aggregate Future Non-Cancelable Minimum Lease Payments (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 176 |
2,017 | 357 |
2,018 | 209 |
2,019 | 50 |
Total | $ 792 |
Common Stock Reserved for Iss41
Common Stock Reserved for Issuance - Schedule of Common Stock Reserved for Issuance (Detail) - shares | Jun. 30, 2016 | Dec. 31, 2015 | Jul. 15, 2015 |
Class of Stock [Line Items] | |||
Outstanding and issued stock options | 4,409,724 | 3,522,813 | |
Total common stock reserved for future issuance | 8,787,038 | 7,746,692 | |
2015 Employee Stock Purchase Plan [Member] | |||
Class of Stock [Line Items] | |||
Total common stock reserved for future issuance | 700,000 | 700,000 | 700,000 |
Shares Reserved For Future Option Grants [Member] | |||
Class of Stock [Line Items] | |||
Total common stock reserved for future issuance | 3,677,314 | 3,523,879 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jul. 21, 2015 | Jun. 11, 2015 | Dec. 31, 2015 | Jun. 30, 2016 |
Temporary Equity [Line Items] | ||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Preferred stock, shares outstanding | 0 | 0 | ||
Number of shares issued upon exercise of stock warrants | 390,680 | 481,671 | ||
Number of convertible preferred stock issued upon exercise of stock warrants | 390,032 | |||
Percentage of accrued but unpaid dividends paid in shares | 50.00% | |||
Percentage of accrued but unpaid dividends forfeited | 50.00% | |||
Share price | $ 5.215 | |||
Cumulative unpaid dividends in arrears | $ 18.9 | |||
Series C Redeemable Convertible Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Number of shares issued upon exercise of stock warrants | 93,017 | 37,385 | ||
Number of convertible preferred stock issued upon exercise of stock warrants | 93,017 | |||
Cumulative unpaid dividends in arrears | $ 1.7 | |||
Issuable common stock to redeemable convertible preferred stockholders | 161,536 | |||
Fair value of common stock to redeemable convertible preferred stockholders | $ 4.4 | |||
Series D Redeemable Convertible Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Cumulative unpaid dividends in arrears | $ 6.1 | |||
Issuable common stock to redeemable convertible preferred stockholders | 589,410 | |||
Fair value of common stock to redeemable convertible preferred stockholders | $ 16 | |||
Series B-1 Redeemable Convertible Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Number of shares issued upon exercise of stock warrants | 291,164 | 444,286 | ||
Number of convertible preferred stock issued upon exercise of stock warrants | 291,165 | |||
Cumulative unpaid dividends in arrears | $ 1.7 | |||
Accruing dividends | $ 0.8 | |||
Series B Redeemable Convertible Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Number of shares issued upon exercise of stock warrants | 6,499 | |||
Number of convertible preferred stock issued upon exercise of stock warrants | 5,850 | |||
Cumulative unpaid dividends in arrears | $ 9.4 | |||
Accruing dividends | $ 4.7 | |||
Series A Convertible Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Preferred stock converted into common stock shares | 252,817 | |||
Redeemable Convertible Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Preferred stock converted into common stock shares | 18,109,136 | (17,913,767) | ||
Series B and B-1 Redeemable Convertible Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Accruing dividends | $ 5.5 | |||
Series C and D Redeemable Convertible Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Issuable common stock to redeemable convertible preferred stockholders | 750,946 | |||
Fair value of common stock to redeemable convertible preferred stockholders | $ 20.4 |
Preferred Stock - Change in Red
Preferred Stock - Change in Redemption Value of Convertible Preferred Stock (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Temporary Equity [Line Items] | ||
Adjustment to redemption value | $ 140,880 | $ 151,885 |
Series B Redeemable Convertible Preferred Stock [Member] | ||
Temporary Equity [Line Items] | ||
Adjustment to redemption value | 23,184 | |
Series B-1 Redeemable Convertible Preferred Stock [Member] | ||
Temporary Equity [Line Items] | ||
Adjustment to redemption value | 16,307 | |
Series C Redeemable Convertible Preferred Stock [Member] | ||
Temporary Equity [Line Items] | ||
Adjustment to redemption value | 20,359 | |
Series D Redeemable Convertible Preferred Stock [Member] | ||
Temporary Equity [Line Items] | ||
Adjustment to redemption value | 92,035 | |
Redeemable Convertible Preferred Stock [Member] | ||
Temporary Equity [Line Items] | ||
Adjustment to redemption value | $ 151,885 |
Preferred Stock - Summary of As
Preferred Stock - Summary of Assumptions used to Determine Fair Value of Temporary Equity (Detail) | 6 Months Ended |
Jun. 30, 2015 | |
Temporary Equity Disclosure [Abstract] | |
Expected term (in years) | 10 months 24 days |
Expected volatility | 66.00% |
Risk-free interest rate | 0.20% |
Expected dividend rate | 0.00% |
Preferred Stock Warrants - Addi
Preferred Stock Warrants - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jul. 21, 2015 | Dec. 31, 2015 |
Class of Warrant or Right [Line Items] | ||
Fair value of warrant liability reclassified to redeemable convertible preferred stock and additional paid-in capital | $ 19.3 | |
Warrants exercised | 493,648 | |
Warrants exercise price | $ 17 | |
Cash proceeds from warrants exercised | $ 1.5 | |
Number of common stock shares issued upon exercise of preferred stock warrants | 390,680 | 481,671 |
Series B Redeemable Convertible Preferred Stock [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants exercised | 10,414 | |
Number of common stock shares issued upon exercise of preferred stock warrants | 6,499 | |
Series B-1 Redeemable Convertible Preferred Stock [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants exercised | 349,054 | |
Number of common stock shares issued upon exercise of preferred stock warrants | 291,164 | 444,286 |
Series C Redeemable Convertible Preferred Stock [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants exercised | 134,180 | |
Number of common stock shares issued upon exercise of preferred stock warrants | 93,017 | 37,385 |
Series B-1 Redeemable Convertible Preferred Stock Cash Exercised at Exercise Price of $7.45 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants exercised | 31,778 | |
Warrants exercise price | $ 7.45 | |
Series B-1 Redeemable Convertible Preferred Stock Warrants Cash Exercised at Exercise Price of $2.6075 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants exercised | 412,508 | |
Warrants exercise price | $ 2.6075 | |
Series C Redeemable Convertible Preferred Stock Warrants Cash Exercised at Exercise Price of $5.215 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants exercised | 37,385 | |
Warrants exercise price | $ 5.215 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-based Compensation Expense for Employees and Non-employees (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | $ 1,303 | $ 420 | $ 2,666 | $ 600 |
Research and development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | 807 | 225 | 1,761 | 299 |
General and administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | $ 496 | $ 195 | $ 905 | $ 301 |
Stock-Based Compensation - Sc47
Stock-Based Compensation - Schedule of Estimated Grant-date Fair Values of Stock-based Awards Using Black-Scholes Option Pricing Model Assumptions (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility, Minimum | 77.00% | 75.00% | 77.00% | 75.00% |
Expected volatility, Maximum | 85.00% | 79.00% | 85.00% | 81.00% |
Risk-free interest rate, Minimum | 1.10% | 1.10% | 1.50% | |
Risk-free interest rate, Maximum | 1.70% | 1.70% | 1.90% | 1.70% |
Expected dividend rate | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years 3 months 18 days | 5 years 2 months 12 days | 5 years 3 months 18 days | 6 years |
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 7 years | 10 years | 9 years 10 months 24 days | 10 years |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Jan. 01, 2016 | Dec. 31, 2015 | Jul. 15, 2015 | Jul. 14, 2015 | Feb. 28, 2015 | Dec. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of common stock shares reserved for issuance | 7,746,692 | 8,787,038 | 8,787,038 | |||||||
Proceeds from early exercise of stock options of unvested portion | $ 13,000 | |||||||||
2008 Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of common stock shares reserved for issuance | 365,535 | |||||||||
Number of shares held by employees subject to repurchase | 23,554 | |||||||||
2008 Plan [Member] | Executive officer [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options early exercised | 13,422 | 103,252 | ||||||||
Proceeds from early exercise of stock options of unvested portion | $ 23,000 | |||||||||
2015 Employee Stock Purchase Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of common stock shares reserved for issuance | 700,000 | 700,000 | 700,000 | 700,000 | ||||||
Stock option grants description | The number of shares initially reserved for issuance under the ESPP will increase automatically on January 1 for nine years from the first offering date by the number of shares equal to 1% of the total outstanding shares of the Company's common stock as of the immediately preceding December 31. | |||||||||
Percentage threshold of outstanding shares increased annually under the plan | 1.00% | |||||||||
Maximum number of common stock shares allowed to issue under employee stock purchase plan | 3,400,000 | |||||||||
Options to purchase shares of common stock, discount percentage | 15.00% | |||||||||
Number of common stock issued | 0 | |||||||||
2015 Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of common stock shares initially reserved for issuance | 3,400,000 | |||||||||
Number of common stock shares reserved for issuance | 3,765,535 | |||||||||
Stock option grants description | The number of shares initially reserved for issuance under the 2015 Plan will increase automatically on January 1 of each calendar year 2016 through 2025 by the number of shares equal to 4% of the total outstanding shares of the Company's common stock as of the immediately preceding December 31. | |||||||||
Percentage threshold of outstanding shares increased annually under the plan | 4.00% | |||||||||
Stock option life in years | 10 years | |||||||||
Number of common stock shares reserved for issuance | 1,202,324 | |||||||||
2008 Plan and 2015 Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of common stock shares reserved for issuance | 1,202,324 | |||||||||
Weighted-average grant date fair values of options granted | $ 2.23 | $ 12.03 | $ 3.93 | $ 4.35 | ||||||
Aggregate intrinsic value of options exercised | $ 200,000 | $ 0 | $ 1,000,000 | $ 400,000 | ||||||
Total grant date fair value of options vested | 2,700,000 | $ 100,000 | 3,500,000 | $ 200,000 | ||||||
Total unrecognized stock-based compensation related to unvested stock options | $ 13,900,000 | $ 13,900,000 | ||||||||
Weighted-average period | 3 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Options Outstanding, Number of Shares Outstanding | ||
Number of Shares Outstanding, Beginning balance | 3,522,813 | |
Number of Shares Outstanding, Ending balance | 4,409,724 | 3,522,813 |
2008 Plan and 2015 Plan [Member] | ||
Options Outstanding, Shares Available for Grant | ||
Shares Available for Grant, Beginning balance | 3,523,879 | |
Shares Available for Grant, Awards authorized | 1,202,324 | |
Shares Available for Grant, Granted | (1,294,880) | |
Shares Available for Grant, Exercised | 0 | |
Shares Available for Grant, forfeited/Cancelled | 245,991 | |
Shares Available for Grant, Ending balance | 3,677,314 | 3,523,879 |
Options Outstanding, Number of Shares Outstanding | ||
Number of Shares Outstanding, Beginning balance | 3,522,813 | |
Number of Shares Outstanding, Options granted | 1,294,880 | |
Number of Shares Outstanding, Options exercised | (161,978) | |
Number of Shares Outstanding, Options forfeited/cancelled | (245,991) | |
Number of Shares Outstanding, Ending balance | 4,409,724 | 3,522,813 |
Number of Shares Outstanding, Exercisable | 2,248,919 | |
Number of Shares Outstanding, Vested and expected to vest | 4,269,833 | |
Options Outstanding, Weighted-Average Exercise Price Per Share | ||
Weighted-Average Exercise Price Per Share, Beginning balance | $ 3.81 | |
Weighted-Average Exercise Price Per Share, Options granted | 5.82 | |
Weighted-Average Exercise Price Per Share, Options exercised | 0.74 | |
Weighted-Average Exercise Price Per Share, Options forfeited/cancelled | 8.39 | |
Weighted-Average Exercise Price Per Share, Ending balance | 4.26 | $ 3.81 |
Weighted-Average Exercise Price Per Share, Exercisable | 1.78 | |
Weighted-Average Exercise Price Per Share, Vested and expected to vest | $ 4.21 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (Years) | ||
Weighted-Average Remaining Contractual Term (Years) | 8 years 9 months 7 days | 8 years 9 months 11 days |
Weighted-Average Remaining Contractual Term (Year), Exercisable | 8 years 1 month 21 days | |
Weighted-Average Remaining Contractual Term (Year), Vested and expected to vest | 8 years 9 months 4 days | |
Aggregate Intrinsic Value of Outstanding Options | ||
Aggregate Intrinsic Value of Outstanding Options | $ 1,935 | $ 40,425 |
Aggregate Intrinsic Value of Outstanding Options, Exercisable | 1,935 | |
Aggregate Intrinsic Value of Outstanding Options, Vested and expected to vest | $ 1,897 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense for foreign taxes | $ 14,000 | $ 22,000 |
Provision for federal income taxes | $ 0 | $ 0 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Restructuring Activities (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost | $ 0 | $ 0 | |
Non-cash charges | $ (811,000) | ||
Accrual, Ending balance | 2,150,000 | ||
PNT2258 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Non-cash charges | (811,000) | ||
Cash payments | (147,000) | ||
Accrual, Ending balance | 2,150,000 | ||
PNT2258 [Member] | Contract Termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Non-cash charges | (681,000) | ||
Cash payments | (18,000) | ||
Accrual, Ending balance | 2,093,000 | ||
PNT2258 [Member] | Employee Termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cash payments | (129,000) | ||
Accrual, Ending balance | 57,000 | ||
PNT2258 [Member] | Asset Impairment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Non-cash charges | (130,000) | ||
Research and development [Member] | PNT2258 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost | 2,787,000 | ||
Research and development [Member] | PNT2258 [Member] | Contract Termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost | 2,787,000 | ||
General and administrative [Member] | PNT2258 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost | 321,000 | ||
General and administrative [Member] | PNT2258 [Member] | Contract Termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost | 5,000 | ||
General and administrative [Member] | PNT2258 [Member] | Employee Termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost | 186,000 | ||
General and administrative [Member] | PNT2258 [Member] | Asset Impairment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost | $ 130,000 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring charges | $ 0 | $ 0 |