Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Sep. 04, 2015 | Dec. 31, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PSDV | ||
Entity Registrant Name | PSIVIDA CORP. | ||
Entity Central Index Key | 1,314,102 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 29,417,365 | ||
Entity Public Float | $ 118,606,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 19,121 | $ 15,334 |
Marketable securities | 9,414 | 2,944 |
Accounts and other receivables | 622 | 517 |
Prepaid expenses and other current assets | 681 | 547 |
Total current assets | 29,838 | 19,342 |
Property and equipment, net | 338 | 297 |
Intangible assets, net | 1,925 | 2,765 |
Other assets | 116 | 117 |
Restricted cash | 150 | 150 |
Total assets | 32,367 | 22,671 |
Current liabilities: | ||
Accounts payable | 744 | 464 |
Accrued expenses | 2,571 | 1,524 |
Deferred revenue | 33 | 138 |
Total current liabilities | 3,348 | 2,126 |
Deferred revenue, less current portion | 5,596 | 5,584 |
Deferred rent | 55 | 37 |
Total liabilities | $ 8,999 | $ 7,747 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, $.001 par value, 60,000,000 shares authorized, 29,412,365 and 29,298,558 shares issued and outstanding at June 30, 2015 and 2014, respectively | $ 29 | $ 29 |
Additional paid-in capital | 293,060 | 290,864 |
Accumulated deficit | (270,666) | (277,013) |
Accumulated other comprehensive income | 945 | 1,044 |
Total stockholders' equity | 23,368 | 14,924 |
Total liabilities and stockholders' equity | $ 32,367 | $ 22,671 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Jun. 30, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 29,412,365 | 29,298,558 |
Common stock, shares outstanding | 29,412,365 | 29,298,558 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues: | |||
Collaborative research and development | $ 25,411 | $ 2,155 | $ 780 |
Royalty income | 1,154 | 1,318 | 1,363 |
Total revenues | 26,565 | 3,473 | 2,143 |
Operating expenses: | |||
Research and development | 12,088 | 9,573 | 7,005 |
General and administrative | 8,056 | 7,468 | 7,169 |
Gain on sale of property and equipment | 0 | (78) | 0 |
Total operating expenses | 20,144 | 16,963 | 14,174 |
Operating income (loss) | 6,421 | (13,490) | (12,031) |
Other income (expense): | |||
Interest income, net | 19 | 6 | 16 |
Other income (expense), net | 3 | (1) | (2) |
Total other income | 22 | 5 | 14 |
Income (loss) before income taxes | 6,443 | (13,485) | (12,017) |
Income tax (expense) benefit | (96) | 130 | 117 |
Net income (loss) | $ 6,347 | $ (13,355) | $ (11,900) |
Net income (loss) per share: | |||
Basic | $ 0.22 | $ (0.49) | $ (0.52) |
Diluted | $ 0.21 | $ (0.49) | $ (0.52) |
Weighted average common shares outstanding: | |||
Basic | 29,378,250 | 27,443,592 | 23,044,152 |
Diluted | 30,584,140 | 27,443,592 | 23,044,152 |
Net income (loss) | $ 6,347 | $ (13,355) | $ (11,900) |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (95) | 124 | (29) |
Net unrealized (loss) gain on marketable securities | (4) | 0 | 7 |
Other comprehensive (loss) income | (99) | 124 | (22) |
Comprehensive income (loss) | $ 6,248 | $ (13,231) | $ (11,922) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] |
Balance at Jun. 30, 2012 | $ 13,636 | $ 21 | $ 264,431 | $ (251,758) | $ 942 |
Balance, shares at Jun. 30, 2012 | 20,802,592 | ||||
Net income (loss) | (11,900) | $ 0 | 0 | (11,900) | 0 |
Other comprehensive (loss) income | (22) | 0 | 0 | 0 | (22) |
Issuance of stock, net of issue costs | 4,669 | $ 0 | 4,667 | 0 | 0 |
Issuance of stock, shares | 2,494,419 | ||||
Exercise of stock options | 0 | ||||
Stock-based compensation | 1,317 | $ 0 | 1,317 | 0 | 0 |
Balance at Jun. 30, 2013 | 7,700 | $ 23 | 270,415 | (263,658) | 920 |
Balance, shares at Jun. 30, 2013 | 23,297,011 | ||||
Net income (loss) | (13,355) | $ 0 | 0 | (13,355) | 0 |
Other comprehensive (loss) income | 124 | 0 | 0 | 0 | 124 |
Issuance of stock, net of issue costs | 18,057 | $ 6 | 18,051 | 0 | 0 |
Issuance of stock, shares | 5,576,112 | ||||
Exercise of stock options | 987 | $ 0 | 987 | 0 | 0 |
Exercise of stock options, shares | 425,435 | ||||
Stock-based compensation | 1,411 | $ 0 | 1,411 | 0 | 0 |
Balance at Jun. 30, 2014 | $ 14,924 | $ 29 | 290,864 | (277,013) | 1,044 |
Balance, shares at Jun. 30, 2014 | 29,298,558 | 29,298,558 | |||
Net income (loss) | $ 6,347 | $ 0 | 0 | 6,347 | 0 |
Other comprehensive (loss) income | (99) | 0 | 0 | 0 | (99) |
Exercise of stock options | 235 | $ 0 | 235 | 0 | 0 |
Exercise of stock options, shares | 113,807 | ||||
Stock-based compensation | 1,961 | $ 0 | 1,961 | 0 | 0 |
Balance at Jun. 30, 2015 | $ 23,368 | $ 29 | $ 293,060 | $ (270,666) | $ 945 |
Balance, shares at Jun. 30, 2015 | 29,412,365 | 29,412,365 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 6,347 | $ (13,355) | $ (11,900) |
Adjustments to reconcile net income (loss) to cash flows from operating activities: | |||
Amortization of intangible assets | 770 | 778 | 769 |
Depreciation of property and equipment | 112 | 139 | 225 |
Amortization of bond premium on marketable securities | 98 | 45 | 152 |
Stock-based compensation | 1,961 | 1,411 | 1,317 |
Gain on sale of property and equipment | 0 | (78) | 0 |
Changes in operating assets and liabilities: | |||
Accounts and other receivables | (124) | 103 | 364 |
Prepaid expenses and other current assets | (136) | 1,110 | (1,272) |
Accounts payable | 292 | (213) | 277 |
Accrued expenses | 1,053 | (381) | 1,288 |
Deferred revenue | (94) | (267) | 35 |
Deferred rent | 18 | 37 | 0 |
Net cash provided by (used in) operating activities | 10,297 | (10,671) | (8,745) |
Cash flows from investing activities: | |||
Purchases of marketable securities | (10,222) | (2,964) | (7,758) |
Maturities of marketable securities | 3,650 | 3,350 | 14,184 |
Purchases of property and equipment | (161) | (248) | (68) |
Proceeds from sale of property and equipment | 0 | 78 | 0 |
Change in restricted cash | 0 | (150) | 0 |
Net cash (used in) provided by investing activities | (6,733) | 66 | 6,358 |
Cash flows from financing activities: | |||
Proceeds from issuance of stock, net of issuance costs | 0 | 18,057 | 4,669 |
Proceeds from exercise of stock options | 235 | 987 | 0 |
Net cash provided by financing activities | 235 | 19,044 | 4,669 |
Effect of foreign exchange rate changes on cash and cash equivalents | (12) | (4) | (8) |
Net increase in cash and cash equivalents | 3,787 | 8,435 | 2,274 |
Cash and cash equivalents at beginning of year | 15,334 | 6,899 | 4,625 |
Cash and cash equivalents at end of year | 19,121 | 15,334 | 6,899 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | $ 263 | $ 0 | $ 0 |
Operations
Operations | 12 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations | 1. Operations pSivida Corp. (together with its subsidiaries, the “Company”), incorporated in Delaware, develops sustained-release drug-delivery products for treating eye diseases. Its products deliver drugs at a controlled and steady rate for months or years. The Company has developed three of only four sustained-release products approved by the U.S. Food and Drug Administration (“FDA”) for treatment of back-of-the-eye diseases. The most recent is ILUVIEN ® ILUVIEN is an injectable, sustained-release micro-insert that provides treatment of DME for three years from a single administration. ILUVIEN is licensed to Alimera Sciences, Inc. (“Alimera”), and the Company is entitled to a share of the net profits (as defined) from Alimera’s sales of ILUVIEN. ILUVIEN was launched in late February 2015 in the U.S., where it is indicated for the treatment of DME in patients previously treated with a course of corticosteroids without a clinically significant rise in intraocular pressure. ILUVIEN has been commercially available in the United Kingdom (“U.K.”) and Germany since June 2013 and in Portugal since January 2015. ILUVIEN has marketing approvals in these and 14 other EU countries for the treatment of chronic DME considered insufficiently responsive to available therapies. Distribution, regulatory and reimbursement matters for ILUVIEN for DME in Australia and New Zealand, Canada and Italy have been sublicensed. Medidur, the Company’s lead development product, is an injectable, micro-insert designed to treat chronic, non-infectious uveitis affecting the posterior of the eye (“posterior uveitis”) for three years from a single administration. Medidur, which is the same micro-insert as ILUVIEN, is in Phase III clinical trials, with the filing of a new drug application (“NDA”) anticipated in the first half of 2017. The Company is developing Medidur independently. The Company’s FDA-approved Retisert ® The Company’s pre-clinical development program is focused on developing products using its core platform technologies, Durasert™ and Tethadur™, to deliver drugs and biologics to treat wet and dry age-related macular degeneration (“AMD”), glaucoma, osteoarthritis and other diseases. The Company has a history of operating losses and has financed its operations primarily from the receipt of license fees, milestone payments, research and development funding and royalty income from its collaboration partners, and from proceeds of sales of its equity securities. The Company believes that its cash, cash equivalents and marketable securities of $28.5 million at June 30, 2015, together with expected cash inflows under existing collaboration agreements, will enable the Company to maintain its current and planned operations into early calendar year 2017. This estimate excludes any potential net profits receipts from sales of ILUVIEN under the Alimera collaboration agreement. The Company’s ability to fund its planned operations beyond then, including completion of clinical development of Medidur, is expected to depend on the amount and timing of cash receipts from ILUVIEN net profits participation, as well as proceeds from any future collaboration or other agreements and/or financing transactions. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The consolidated financial statements are presented in U.S. dollars in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and include the accounts of pSivida Corp. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The Company’s fiscal year ends on June 30 of each year. The years ended June 30, 2015, 2014 and 2013 may be referred to herein as fiscal 2015, fiscal 2014 and fiscal 2013, respectively. Certain prior period amounts have been reclassified to conform to the current presentation. Specifically, the significant components of the rate reconciliation have been reclassified to present permanent items and the significant components of the gross deferred tax assets have been reclassified to present tax credits (see Note 12). Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts and disclosure of assets and liabilities at the date of the consolidated financial statements and the reported amounts and disclosure of revenues and expenses during the reporting periods. Significant management estimates and assumptions include, among others, those related to revenue recognition for multiple-deliverable arrangements, recognition of expense in outsourced clinical trial agreements, recoverability of intangible assets, realization of deferred tax assets and the valuation of stock option awards. Actual results could differ from these estimates. Foreign Currency The functional currency of the Company and each of its subsidiaries is the currency of the primary economic environment in which that entity operates—the U.S. dollar or the Pound Sterling. Assets and liabilities of the Company’s foreign subsidiary are translated at period-end exchange rates. Amounts included in the statements of comprehensive income (loss) and cash flows are translated at the weighted average exchange rates for the period. Gains and losses from currency translation are included in accumulated other comprehensive income as a separate component of stockholders’ equity in the consolidated balance sheets. The balance of accumulated other comprehensive income attributable to foreign currency translation was $950,000 at June 30, 2015 and $1,045,000 at June 30, 2014. Foreign currency gains or losses arising from transactions denominated in foreign currencies, whether realized or unrealized, are recorded in other income (expense), net in the consolidated statements of comprehensive income (loss) and were not significant for all periods presented. Cash Equivalents Cash equivalents represent highly liquid investments with maturities of three months or less at the date of purchase, principally consisting of institutional money market funds. Marketable Securities Marketable securities consist of investments with an original or remaining maturity of greater than three months at the date of purchase. The Company has classified its marketable securities as available-for-sale. Accordingly, the Company records these investments at fair value, with unrealized gains and losses excluded from earnings and reported, net of tax, in accumulated other comprehensive income, which is a component of stockholders’ equity. If the Company determines that a decline of any investment is other-than-temporary, the investment is written down to fair value. As of June 30, 2015 and 2014, there were no investments in a significant unrealized loss position. The fair value of marketable securities is determined based on quoted market prices at the balance sheet date of the same or similar instruments. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts through to the earlier of sale or maturity. Such amortization and accretion amounts are included in interest income, net in the consolidated statements of comprehensive income (loss). The cost of marketable securities sold is determined by the specific identification method. Concentrations of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and marketable securities. At June 30, 2015, all of the Company’s interest-bearing cash equivalent balances, aggregating $15.8 million, were concentrated in one institutional money market fund that has investments consisting primarily of certificates of deposit, commercial paper, time deposits and treasury repurchase agreements. Generally, these deposits may be redeemed upon demand and, therefore, the Company believes they bear minimal risk. Marketable securities at June 30, 2015 and 2014 consisted of investment-grade corporate bonds and commercial paper. The Company’s investment policy, approved by the Board of Directors, includes guidelines relative to diversification and maturities designed to preserve principal and liquidity. Alimera Sciences accounted for $25.1 million, or 95% of total revenues in fiscal 2015 and inconsequential revenues in each of fiscal 2014 and fiscal 2013. Bausch & Lomb accounted for $1.2 million, or 5% of total revenues in fiscal 2015, $1.3 million, or 38% of total revenues in fiscal 2014, and $1.4 million, or 64%, of total revenues in fiscal 2013. A completed feasibility study agreement accounted for $1.7 million, or 49%, of total revenues in fiscal 2014. Pfizer revenues, which were inconsequential in fiscal 2015 and fiscal 2014, accounted for $368,000, or 17%, of total revenues in fiscal 2013. Bausch & Lomb accounted for $371,000, or 60% of total accounts receivable at June 30, 2015 and $302,000, or 58% of total accounts receivable at June 30, 2014. Fair Value of Financial Instruments The carrying amounts of cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value because of their short-term maturity. Accounts and Other Receivables Receivables consist primarily of: (i) quarterly royalties earned; (ii) U.K. research and development tax credits; and (iii) accrued interest on marketable securities. Debt and Equity Instruments Debt and equity instruments are classified as either liabilities or equity in accordance with the substance of the contractual arrangement. Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives (generally three to five years) using the straight-line method. Leasehold improvements are amortized on a straight-line basis over the shorter of the remaining non-cancellable lease term or their estimated useful lives. Repair and maintenance costs are expensed as incurred. When assets are retired or sold, the assets and accumulated depreciation are derecognized from the respective accounts and any gain or loss is recognized. Leases The Company leases real estate and office equipment under operating leases. Its primary real estate lease contains rent holiday and rent escalation clauses. The Company recognizes the rent holiday and scheduled rent increases on a straight-line basis over the lease term, with the excess of rent expense over cash payments recorded as a deferred rent liability. Impairment of Intangible Assets The Company’s finite life intangible assets include its acquired Durasert™ and BioSilicon™ (including Tethadur™) patented technologies, which are being amortized on a straight-line basis over twelve years. The intangible asset lives were determined based upon the anticipated period that the Company will derive future cash flows from the intangible assets, considering the effects of legal, regulatory, contractual, competitive and other economic factors. The Company continually monitors whether events or circumstances have occurred that indicate that the remaining estimated useful life of its intangible assets may warrant revision. The Company assesses potential impairments to its intangible assets when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized when the future undiscounted net cash flows expected to result from the use of an asset are less than its carrying value. If the Company considers an asset to be impaired, the impairment charge to be recognized is measured by the amount by which the carrying value of the asset exceeds its estimated fair value. Revenue Recognition Collaborative Research and Development and Multiple-Deliverable Arrangements The Company enters into collaborative arrangements with strategic partners for the development and commercialization of product candidates utilizing the Company’s technologies. The terms of these agreements have typically included multiple deliverables by the Company (for example, license rights, research and development services and manufacturing of clinical materials) in exchange for consideration to the Company of some combination of non-refundable license fees, research and development funding, payments based upon achievement of clinical development or other milestones and royalties in the form of a designated percentage of product sales or profits. Revenue is recognized when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed and determinable, and collection is reasonably assured. Multiple-deliverable arrangements, such as license and development agreements, are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. When deliverables are separable, consideration received is allocated to the separate units of accounting based on the relative selling price method using management’s best estimate of the standalone selling price of deliverables when vendor-specific objective evidence or third-party evidence of selling price is not available. Allocated consideration is recognized as revenue upon application of the appropriate revenue recognition principles to each unit. When the Company determines that an arrangement should be accounted for as a single unit of accounting, it must determine the period over which the performance obligations will be performed and revenue will be recognized. The Company estimates its performance period used for revenue recognition based on the specific terms of each agreement, and adjusts the performance periods, if appropriate, based on the applicable facts and circumstances. Significant management judgment may be required to determine the level of effort required under an arrangement and the period over which the Company is expected to complete its performance obligations under the arrangement. If the Company cannot reasonably estimate when its performance obligations either are completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. Royalties Royalty income is recognized upon the sale of the related products, provided that the royalty amounts are fixed or determinable, collection of the related receivable is reasonably assured and the Company has no remaining performance obligations under the arrangement. Such revenues are included as royalty income. If royalties are received when the Company has remaining performance obligations, the royalty payments would be attributed to the services being provided under the arrangement and therefore revenue would be recognized as such performance obligations are performed. Any such revenues are included as collaborative research and development revenues. Reimbursement of Costs The Company may provide research and development services and incur maintenance costs of licensed patents under collaboration arrangements to assist in advancing the development of licensed products. The Company acts primarily as a principal in these transactions and, accordingly, reimbursement amounts received are classified as a component of revenue to be recognized consistent with the revenue recognition policy summarized above. The Company records the expenses incurred and reimbursed on a gross basis. Deferred Revenue Amounts received prior to satisfying the above revenue recognition criteria are recorded as deferred revenue in the accompanying consolidated balance sheets. Amounts not expected to be recognized within one year following the balance sheet date are classified as non-current deferred revenue. Research and Development Research and development costs are charged to operations as incurred. These costs include all direct costs, including cash compensation, stock-based compensation and benefits for research and development personnel, amortization of intangible assets, third-party costs and services for clinical trials, clinical materials, pre-clinical programs, regulatory affairs, external consultants, and other operational costs related to the Company’s research and development of its product candidates. Stock-Based Compensation The Company may award stock options and other equity-based instruments to its employees, directors and consultants pursuant to stockholder-approved plans. Compensation cost related to such awards is based on the fair value of the instrument on the grant date and is recognized, net of estimated forfeitures, on a graded vesting basis over the requisite service period for each separately vesting tranche of the awards. The Company may also award stock options that are subject to objectively measurable performance and service criteria. Compensation expense for performance-based option awards begins at such time as it becomes probable that the respective performance conditions will be achieved. The Company continues to recognize the grant date fair value of performance-based options through the vesting date of the respective awards so long as it remains probable that the related performance conditions will be satisfied. The Company estimates the fair value of stock option awards using the Black-Scholes option valuation model. Net Income (Loss) per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. For periods in which the Company reports net income, diluted net income per share is determined by adding to the weighted-average number of common shares outstanding the average number of dilutive common equivalent shares using the treasury stock method, unless the effect is anti-dilutive. The following table reconciles the number of shares used to compute basic and diluted net income (loss) per share: Year Ended June 30, 2015 2014 2013 Number of common shares—basic 29,378,250 27,443,592 23,044,152 Effect of dilutive securities: Stock options 956,441 — — Warrants 249,449 — — Number of common shares—diluted 30,584,140 27,443,592 23,044,152 Potential common stock equivalents excluded from the calculation of diluted earnings per share because the effect would have been anti-dilutive were as follows: Year Ended June 30, 2015 2014 2013 Options outstanding 2,010,793 3,791,001 3,554,549 Warrants outstanding 552,500 1,176,105 1,176,105 2,563,293 4,967,106 4,730,654 Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss), foreign currency translation adjustments and unrealized gains and losses on available-for-sale marketable securities. Income Tax The Company accounts for income taxes under the asset and liability method. Deferred income tax assets and liabilities are computed for the expected future impact of differences between the financial reporting and income tax bases of assets and liabilities and for the expected future benefit to be derived from tax credits and loss carry forwards. Such deferred income tax computations are measured based on enacted tax laws and rates applicable to the years in which these temporary differences are expected to be recovered or settled. A valuation allowance is provided against net deferred tax assets if, based on the available evidence, it is more likely than not that some or all of the net deferred tax assets will not be realized. The Company determines whether it is more likely than not that a tax position will be sustained upon examination. If it is not more likely than not that a position will be sustained, none of the benefit attributable to the position is recognized. The tax benefit to be recognized for any tax position that meets the more likely than not recognition threshold is calculated as the largest amount that is more than 50% likely of being realized upon resolution of the uncertainty. The Company accounts for interest and penalties related to uncertain tax positions as part of its income tax benefit. Recently Adopted and Recently Issued Accounting Pronouncements New accounting pronouncements are issued periodically by the Financial Accounting Standards Board (“FASB”) and are adopted by the Company as of the specified effective dates. Unless otherwise disclosed below, the Company believes that the impact of recently issued and adopted pronouncements will not have a material impact on the Company’s financial position, results of operations and cash flows or do not apply to the Company’s operations. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern |
License and Collaboration Agree
License and Collaboration Agreements | 12 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
License and Collaboration Agreements | 3. License and Collaboration Agreements Alimera Under the collaboration agreement with Alimera, as amended in March 2008, (the “Alimera Agreement”), the Company licensed to Alimera the rights to develop, market and sell certain product candidates, including ILUVIEN, and Alimera assumed all financial responsibility for the development of licensed products. In addition, the Company is entitled to receive 20% of any net profits (as defined) on sales of each licensed product (including ILUVIEN) by Alimera, measured on a quarter-by-quarter and country-by-country basis. Alimera may recover 20% of previously incurred and unapplied net losses (as defined) for commercialization of each product in a country, but only by an offset of up to 4% of the net profits earned in that country each quarter, reducing the Company’s net profit share to 16% in each country until those net losses are recouped. In the event that Alimera sublicenses commercialization in any country, the Company is entitled to 20% of royalties and 33% of non-royalty consideration received by Alimera, less certain permitted deductions. The Company is also entitled to reimbursement of certain patent maintenance costs with respect to the patents licensed to Alimera. The Company’s performance obligations ended on December 31, 2009 and, accordingly, all amounts received thereafter under the Alimera Agreement are recognized as revenue upon receipt or at such earlier date, if applicable, on which any such amounts are both fixed and determinable and reasonably assured of collectability. In September 2014, the Company earned a $25.0 million milestone from Alimera as a result of the FDA approval of ILUVIEN, which amount was received in October 2014. Revenue under the Alimera Agreement totaled $25.1 million for fiscal 2015, $114,000 for fiscal 2014 and $67,000 for fiscal 2013. Pfizer In June 2011, the Company and Pfizer entered into an Amended and Restated Collaborative Research and License agreement (the “Restated Pfizer Agreement”) to focus solely on the development of a sustained-release bioerodible micro-insert designed to deliver latanoprost for human ophthalmic disease or conditions other than uveitis (the “Latanoprost Product”). Pfizer made an upfront payment of $2.3 million, and the Company agreed to use commercially reasonable efforts to fund the development for at least one year, including assumption of an investigator-sponsored Phase I/II dose-escalation study that enrolled and followed six patients to treat ocular hypertension and glaucoma. The Company may, at its option, conduct Phase II clinical trials, which to date have not been undertaken, for the purpose of demonstrating Proof-of-Concept (“POC”). If the Company were to issue a final report demonstrating POC, Pfizer would have a 90-day exercise option for an exclusive, worldwide license to further develop and commercialize the Latanoprost Product in return for a $20.0 million payment to the Company and potential double-digit sales-based royalties and prescribed development, regulatory and sales performance milestone payments. If the Company elects to cease development of the Latanoprost Product prior to POC, Pfizer could exercise its option for the same worldwide license upon payment of a lesser option fee, with comparable reductions in any future milestones and royalties. If Pfizer does not exercise its option when available, the Restated Pfizer Agreement will automatically terminate, with any remaining deferred revenue balance recorded as revenue at that time, provided, however, that the Company would retain the right to develop and commercialize the Latanoprost Product. The Company considered the Restated Pfizer Agreement a material modification and applied the guidance of ASU No. 2009-13, Revenue Recognition (Topic 605), Multiple-Deliverable Revenue Arrangements The arrangement consideration of the Restated Pfizer Agreement totaled $10.05 million, which consisted of $7.75 million of deferred revenue on the Company’s balance sheet at the effective date plus the $2.3 million upfront payment. The excess of the arrangement consideration over the $6.7 million estimated selling price of the Company’s deliverables, or $3.3 million, was recognized as collaborative research and development revenue in the period of the modification, with the remaining $6.7 million deferred and recognized as collaborative research and development revenue over the expected performance period using the lesser of straight-line amortization or the proportional performance method. As of June 30, 2015, the Company continues to evaluate whether to undertake Phase II clinical trials and, consequently, the Company cannot currently estimate the remaining performance period and has therefore not recognized any additional revenue. As a result, the current portion of deferred revenue was $0 at each of June 30, 2015 and 2014. Total deferred revenue was approximately $5.6 million at each of June 30, 2015 and 2014. Collaborative research and development revenue related to the Restated Pfizer Agreement was inconsequential in each of fiscal 2015 and fiscal 2014, and totaled $368,000 in fiscal 2013. Costs associated with conducting the R&D program are included in operating expenses as incurred. Pfizer owned approximately 6.3% of the Company’s outstanding shares at June 30, 2015. Bausch & Lomb Pursuant to a licensing and development agreement, as amended, Bausch & Lomb has a worldwide exclusive license to make and sell Retisert in return for royalties based on sales. Bausch & Lomb was also licensed to make and sell Vitrasert, an implant for sustained release of CMV retinitis, pursuant to this agreement, but discontinued sales of Vitrasert in the second quarter of fiscal 2013 following patent expiration. Royalty income totaled approximately $1.2 million in fiscal 2015, $1.3 million in fiscal 2014 and $1.4 million in fiscal 2013. Accounts receivable from Bausch & Lomb totaled $371,000 at June 30, 2015 and $302,000 at June 30, 2014. Enigma Therapeutics The Company entered into an exclusive, worldwide royalty-bearing license agreement in December 2012, amended and restated in March 2013, with Enigma Therapeutics Limited (“Enigma”) for the development of BrachySil, the Company’s BioSilicon product candidate for the treatment of pancreatic and other types of cancer. The Company received an upfront fee of $100,000 and is entitled to 8% sales-based royalties, 20% of sublicense consideration and milestone payments based on aggregate product sales. Enigma is obligated to pay an annual license maintenance fee of $100,000 by the end of each calendar year, the first of which was received in January 2014. For each calendar year commencing with 2014, the Company is entitled to receive reimbursement of any patent maintenance costs, sales-based royalties and sub-licensee sales-based royalties earned, but only to the extent such amounts, in the aggregate, exceed the $100,000 annual license maintenance fee. The Company has no consequential performance obligations under the Enigma license agreement, and, accordingly, any amounts to which the Company is entitled under the agreement are recognized as revenue on the earlier of receipt or when collectability is reasonably assured. Revenue related to the Enigma agreement totaled $100,000 in fiscal 2015, $102,000 in fiscal 2014 and $100,000 in fiscal 2013. At June 30, 2015, no deferred revenue was recorded for this agreement. Feasibility Study Agreements The Company from time to time enters into funded agreements to evaluate the potential use of its technology systems for sustained release of third party drug candidates in the treatment of various diseases. Consideration received is generally recognized as revenue over the term of the feasibility study agreement. Revenue recognition for consideration, if any, related to a license option right is assessed based on the terms of any such future license agreement or is otherwise recognized at the completion of the feasibility study agreement. Revenues under feasibility study agreements totaled $144,000 in fiscal 2015, $1.9 million in fiscal 2014 and $245,000 in fiscal 2013. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 4. Intangible Assets The reconciliation of intangible assets for the years ended June 30, 2015 and 2014 was as follows (in thousands): June 30, 2015 2014 Patented technologies Gross carrying amount at beginning of year $ 41,689 $ 38,941 Foreign currency translation adjustments (1,979 ) 2,748 Gross carrying amount at end of year 39,710 41,689 Accumulated amortization at beginning of year (38,924 ) (35,511 ) Amortization expense (770 ) (778 ) Foreign currency translation adjustments 1,909 (2,635 ) Accumulated amortization at end of year (37,785 ) (38,924 ) Net book value at end of year $ 1,925 $ 2,765 The net book value of the Company’s intangible assets at June 30, 2015 and 2014 is summarized as follows (in thousands): June 30, Estimated 2015 2014 (Years) Patented technologies Durasert $ 1,324 $ 1,853 2.5 BioSilicon 601 912 2.5 $ 1,925 $ 2,765 The Company amortizes its intangible assets with finite lives on a straight-line basis over their respective estimated useful lives. Amortization expense for intangible assets totaled $770,000 in fiscal 2015, $778,000 in fiscal 2014 and $769,000 in fiscal 2013. The carrying value of intangible assets at June 30, 2015 of $1.9 million is expected to be amortized on a straight-line basis of approximately $770,000 per year. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 5. Marketable Securities The amortized cost, unrealized loss and fair value of the Company’s available-for-sale marketable securities at June 30, 2015 and 2014 were as follows (in thousands): June 30, 2015 Amortized Unrealized Fair Corporate bonds $ 9,419 $ (5 ) $ 9,414 June 30, 2014 Amortized Unrealized Fair Corporate bonds $ 2,446 $ (1 ) $ 2,445 Commercial paper 499 — 499 Total marketable securities $ 2,945 $ (1 ) $ 2,944 During fiscal 2015, $10.2 million of marketable securities were purchased and $3.7 million matured. At June 30, 2015, the marketable securities had maturities ranging between 15 days and 8.5 months, with a weighted average maturity of 5.1 months. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 6. Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): June 30, 2015 2014 Property and equipment $ 1,927 $ 1,956 Leasehold improvements 217 231 Gross property and equipment 2,144 2,187 Accumulated depreciation and amortization (1,806 ) (1,890 ) $ 338 $ 297 Depreciation expense was $112,000 for fiscal 2015, $139,000 for fiscal 2014 and $225,000 for fiscal 2013. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. Fair Value Measurements The Company accounts for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. The Company categorizes each of its fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: • Level 1—Inputs are quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. • Level 2—Inputs are directly or indirectly observable in the marketplace, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities with insufficient volume or infrequent transactions (less active markets). • Level 3—Inputs are unobservable estimates that are supported by little or no market activity and require the Company to develop its own assumptions about how market participants would price the assets or liabilities. The Company’s cash equivalents and marketable securities are classified within Level 1 or Level 2 on the basis of valuations using quoted market prices or alternative pricing sources and models utilizing market observable inputs, respectively. Certain of the Company’s corporate debt securities were valued based on quoted prices for the specific securities in an active market and were therefore classified as Level 1. The remaining marketable securities have been valued on the basis of valuations provided by third-party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and ask prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security, and have been classified as Level 2. The following table summarizes the Company’s assets carried at fair value measured on a recurring basis at June 30, 2015 and 2014 by valuation hierarchy (in thousands): June 30, 2015 Description Total Carrying Quoted prices in Significant other Significant Assets: Cash equivalents $ 15,835 $ 15,835 $ — $ — Marketable securities: Corporate bonds 9,414 7,413 2,001 — $ 25,249 $ 23,248 $ 2,001 $ — June 30, 2014 Description Total Carrying Quoted prices in Significant other Significant Assets: Cash equivalents $ 14,260 $ 14,260 $ — $ — Marketable securities: Corporate bonds 2,444 1,936 508 — Commercial paper 500 — 500 — $ 17,204 $ 16,196 $ 1,008 $ — |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 8. Accrued Expenses Accrued expenses consisted of the following (in thousands): June 30, 2015 2014 Personnel costs $ 735 $ 952 Professional fees 384 249 Clinical trial costs 1,424 316 Other 28 7 $ 2,571 $ 1,524 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity Sales of Common Stock and Warrants In March 2014, the Company sold 1,700,000 shares of its common stock in a registered direct offering to a single institutional investor at a price of $4.11 per share for gross proceeds of $7.0 million. Placement agent fees and other share issue costs totaled $191,000. In December 2013, the Company entered into an at-the-market (“ATM”) program pursuant to which the Company may, at its option, offer and sell shares of its common stock from time to time for an aggregate offering price of up to $19.2 million. In connection with execution of the ATM program, the Company incurred transaction costs of $153,000. In addition, the Company pays the sales agent a commission of up to 3.0% of the gross proceeds from the sale of such shares. During fiscal 2015, the Company did not sell any shares under this program. During fiscal 2014, the Company sold 381,562 common shares for net proceeds of $1.5 million, reflecting a weighted-average gross selling price of $3.98 per share. At June 30, 2015, an aggregate registered amount of approximately $10.7 million of common stock remains available for sale under the Company’s existing shelf registration statement. In July 2013, the Company sold 3,494,550 shares of its common stock in an underwritten public offering at a price of $3.10 per share for gross proceeds of $10.8 million. Underwriter commissions and other share issue costs approximated $890,000. In August 2012, the Company sold 2,494,419 shares of its common stock and warrants to purchase 623,605 shares of its common stock in a registered direct offering to institutional investors for gross proceeds of $5.4 million. The shares and warrants were sold in units, each unit consisting of one share together with 0.25 of one warrant, at a negotiated price of $2.15 per unit. Each whole warrant has an exercise price of $2.50 per share and a five-year term, and became exercisable in February 2013. Placement agent fees and other share issue costs approximated $700,000. In connection with a January 2011 equity offering, the Company issued warrants to purchase 552,500 shares of its common stock with an exercise price of $5.00 per share and a five-year term. Warrants to Purchase Common Shares A total of 1,176,105 warrants were outstanding at June 30, 2015 and 2014 with a weighted average exercise price of $3.67. At June 30, 2015, the remaining lives of these outstanding warrants ranged from 7 months to 2.1 years, representing a weighted-average term of 1.4 years. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation 2008 Incentive Plan The pSivida Corp. 2008 Incentive Plan (the “2008 Plan”) provides for the issuance of stock options and other stock awards to directors, employees and consultants. Awards may include stock options, stock appreciation rights, restricted and unrestricted stock, deferred stock, performance awards, convertible securities and cash grants. At June 30, 2015, a total of 6,341,255 shares of common stock were authorized for issuance under the 2008 Plan, of which 1,123,791 shares were available for new awards. The 2008 Plan includes an “evergreen provision” that allows for an annual increase in the number of shares of common stock available for issuance under the 2008 Plan. On the first day of each fiscal year until July 1, 2017, the number of shares authorized for issuance under the 2008 Plan is increased by the least of: (i) 750,000 shares; (ii) 4% of the then outstanding shares of common stock; and (iii) any such lesser amount of shares of common stock as is determined by the Compensation Committee of the Board of Directors. The number of shares reserved for issuance increased by 750,000 shares on July 1, 2015. Options to purchase a total of 831,200 shares were granted during fiscal 2015 at exercise prices equal to the closing market price of the Company’s common stock on the NASDAQ Global Market (“NASDAQ”) on the respective option grant dates. Of this total, options to purchase 701,200 shares were issued to employees with ratable annual vesting over 4 years, options to purchase 90,000 shares were issued to non-executive directors with 1-year cliff vesting and options to purchase 40,000 shares were issued to a newly appointed non-executive director with ratable annual vesting over 3 years. A total of 542,434 options vested during fiscal 2015. All options have a 10-year life. The Company measures the fair value of options on their grant date using the Black-Scholes option-pricing model. Based upon limited option exercise history, the Company has generally used the “simplified” method outlined in SEC Staff Accounting Bulletin No. 110 to estimate the expected life of stock option grants. Management believes that the historical volatility of the Company’s stock price on NASDAQ best represents the expected volatility over the estimated life of the option. The risk-free interest rate is based upon published U.S. Treasury yield curve rates at the date of grant corresponding to the expected life of the stock option. An assumed dividend yield of zero reflects the fact that the Company has never paid cash dividends and has no intentions to pay dividends in the foreseeable future. The key assumptions used to apply the option pricing model for options granted under the 2008 Plan during the years ended June 30, 2015, 2014 and 2013 were as follows: 2015 2014 2013 Option life (in years) 5.50 - 6.25 5.50 - 6.25 5.50 - 6.25 Stock volatility 79% - 93% 94% - 96% 95% - 98% Risk-free interest rate 1.70% - 2.00% 1.70% - 1.99% 0.81% - 0.98% Expected dividends 0.0% 0.0% 0.0% The Company recognizes compensation expense for only the portion of options that are expected to vest. Based on historical trends, the Company applies estimated forfeiture rates to determine the numbers of awards that are expected to vest. Additional expense is recorded if the actual forfeiture rate for each tranche of option grants is lower than estimated, and a recovery of prior expense is recorded if the actual forfeiture rate is higher than estimated. The Company assesses the forfeiture rate at the end of each reporting period. The following table summarizes information about stock options for the years ended June 30, 2015, 2014 and 2013 (in thousands except per share amounts): 2015 2014 2013 Weighted-average grant date fair value per share $ 3.33 $ 2.48 $ 1.29 Total cash received from exercise of stock options 235 987 — Total intrinsic value of stock options exercised 257 841 — At June 30, 2015, there was approximately $1.7 million of unrecognized stock-based compensation expense related to unvested stock options, which is expected to be recognized as expense over a weighted average period of 1.9 years. The following table provides a reconciliation of stock option activity under the 2008 Plan for fiscal 2015: Number of Weighted Weighted Aggregate (in years) (in thousands) Outstanding at July 1, 2014 3,791,001 $ 3.08 Granted 831,200 4.48 Exercised (113,807 ) 2.07 Forfeited (60,419 ) 4.00 Outstanding at June 30, 2015 4,447,975 $ 3.36 6.23 $ 3,165 Outstanding at June 30, 2015—vested or unvested and expected to vest 4,365,104 $ 3.35 6.19 $ 3,141 Exercisable at June 30, 2015 2,894,183 $ 3.03 5.09 $ 2,767 Stock-Based Compensation Expense The Company’s statements of comprehensive income (loss) included total compensation expense from stock-based payment awards as follows (in thousands): Year Ended June 30, 2015 2014 2013 Compensation expense included in: Research and development $ 676 $ 516 $ 632 General and administrative 1,285 895 685 $ 1,961 $ 1,411 $ 1,317 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | 11. Retirement Plans The Company operates a defined contribution plan intended to qualify under Section 401(k) of the U.S. Internal Revenue Code. Participating U.S. employees may contribute a portion of their pre-tax compensation, as defined, subject to statutory maximums. The Company matches employee contributions up to 5% of eligible compensation, subject to a stated calendar year Internal Revenue Service maximum. The Company operates a defined contribution pension plan for U.K. employees pursuant to which the Company makes contributions on behalf of employees plus a matching percentage of elective employee contributions. The Company contributed a total of $187,000 for fiscal 2015, $189,000 for fiscal 2014 and $231,000 for fiscal 2013 in connection with these retirement plans. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The components of income tax expense (benefit) are as follows (in thousands): Year Ended June 30, 2015 2014 2013 U.S. operations: Current income tax expense $ 263 $ — $ — Deferred income tax benefit — — — 263 — — Non-U.S. operations: Current income tax benefit (167 ) (130 ) (117 ) Deferred income tax benefit — — — (167 ) (130 ) (117 ) Income tax expense (benefit) $ 96 $ (130 ) $ (117 ) The significant components of domestic income tax expense for the fiscal year ended June 30, 2015 included a provision for current income tax expense of $2.8 million, less a tax benefit of operating loss carry forwards of $2.5 million, resulting in a net domestic income tax expense of $263,000, which represented federal alternative minimum tax based on taxable income for the tax year ended December 31, 2014. During the fiscal years ended June 30, 2015, 2014 and 2013, the Company also recognized a current income tax benefit of $167,000, $130,000 and $117,000, respectively, related to foreign research and development tax credits earned by its U.K. subsidiary. The components of income (loss) before income taxes are as follows (in thousands): Year Ended June 30, 2015 2014 2013 U.S. operations $ 8,120 $ (11,712 ) $ (10,101 ) Non-U.S. operations (1,677 ) (1,773 ) (1,916 ) Income (loss) before income taxes $ 6,443 $ (13,485 ) $ (12,017 ) The difference between Company’s expected income tax expense (benefit), as computed by applying the statutory U.S. federal tax rate of 34% to income (loss) before income taxes, and actual income tax expense (benefit) is reconciled in the following table (in thousands): Year Ended June 30, 2015 2014 2013 Income tax expense (benefit) at statutory rate $ 2,191 $ (4,585 ) $ (4,086 ) State income taxes, net of federal benefit 435 (693 ) (569 ) Non-U.S. income tax rate differential 137 157 145 Research and development tax credits (313 ) (169 ) (134 ) Capital loss expiration 511 — — Permanent items 236 221 201 Changes in valuation allowance (3,572 ) 4,619 2,939 Expiration of state net operating loss carryforwards — 161 706 Other, net 471 159 681 Income tax expense (benefit) $ 96 $ (130 ) $ (117 ) The significant components of the prior period rate reconciliations have been reclassified to conform to the current presentation. Specifically, $221,000 and $201,000 for the years ended June 30, 2014 and 2013, respectively, have been reclassified from Other, net to Permanent items. The significant components of deferred income taxes are as follows (in thousands): June 30, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 25,736 $ 30,123 Deferred revenue 2,194 2,194 Stock-based compensation 3,431 3,079 Tax credits 1,246 564 Provision for loss on note receivable — 511 Other 110 88 Total deferred tax assets 32,717 36,559 Deferred tax liabilities: Intangible assets 640 910 Deferred tax assets, net 32,077 35,649 Valuation allowance 32,077 35,649 Total deferred tax liability $ — $ — The significant components of the prior period gross deferred tax assets have been reclassified to conform to the current presentation. Specifically, $564,000 as of June 30, 2014 has been reclassified from Other to Tax credits. The valuation allowance generally reflects limitations on the Company’s ability to use the tax attributes and reduce the value of such attributes to the more-likely-than-not realizable amount. Management assessed the available positive and negative evidence to estimate if sufficient taxable income will be generated to use the existing net deferred tax assets. Based on a weighting of the objectively verifiable negative evidence in the form of cumulative operating losses over the three year period ended June 30, 2015, management believes that it is not more-likely-than-not that the deferred tax assets will be realized and, accordingly, a full valuation allowance has been established. The valuation allowance decreased $3.6 million during the fiscal year ended June 30, 2015, which is attributed to the consumption of $2.5 million in tax benefits from domestic net operating loss carry forwards and a decrease of $1.1 million attributed to re-measurement of the remaining net deferred tax assets which continue to bear a full valuation allowance. The valuation allowance increased $4.6 million and $2.9 million during the fiscal years ended June 30, 2014 and 2013, respectively, with such increases being attributed to the re-measurement of the net deferred tax assets at the respective year-end dates. The Company has tax net operating loss and tax credit carry forwards in its individual tax jurisdictions. At June 30, 2015, the Company had U.S. federal net operating loss carry forwards of approximately $55.1 million, which expire at various dates between calendar years 2023 and 2035. The utilization of certain of these loss and tax credit carry forwards may be limited by Sections 382 and 383 of the Internal Revenue Code as a result of historical or future changes in the Company’s ownership. At June 30, 2015, the Company had state net operating loss carry forwards of approximately $14.2 million, which expire between 2033 and 2035, as well as U.S. federal and state research and development tax credit carry forwards of approximately $742,000, which expire at various dates between calendar years 2016 and 2035. In addition, at June 30, 2015 the Company had net operating loss carry forwards in the U.K. of £19.8 million (approximately $31.1 million), which are not subject to any expiration dates. The Company’s U.S. federal income tax returns for calendar years 2003 through 2014 remain subject to examination by the Internal Revenue Service. The Company’s U.K. tax returns for fiscal years 2006 through 2014 remain subject to examination. The Australian tax returns for the Company’s predecessor for fiscal years 2004 through 2008 remain subject to examination. Through June 30, 2015, the Company had no unrecognized tax benefits in its consolidated statements of comprehensive income (loss) and no unrecognized tax benefits in its consolidated balance sheets as of June 30, 2015 or 2014. As of June 30, 2015 and 2014, the Company had no accrued penalties or interest related to uncertain tax positions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Operating Leases On March 21, 2014, the Company commenced a lease for approximately 13,650 square feet of combined office and laboratory space in Watertown, Massachusetts to replace the Company’s previous facilities lease that expired on April 5, 2014. The Company provided a cash-collateralized $150,000 irrevocable standby letter of credit as security for the Company’s obligations under the lease. The initial lease term extends through April 2019, with a five-year renewal option at market rates. In addition to base rent, the Company is obligated to pay its proportionate share of building operating expenses and real estate taxes in excess of base year amounts. In addition, the Company leases approximately 2,200 square feet of laboratory and office space in Malvern, U.K. through August 2016. At June 30, 2015, the Company’s total future minimum lease payments under non-cancellable operating leases were as follows (in thousands): Fiscal Year: 2016 $ 482 2017 482 2018 437 2019 359 2020 — $ 1,760 Rent expense related to the Company’s real estate and other operating leases charged to operations was approximately $494,000 for fiscal 2015, $485,000 for fiscal 2014 and $454,000 for fiscal 2013. Litigation The Company is subject to various routine legal proceedings and claims incidental to its business, which management believes will not have a material effect on the Company’s financial position, results of operations or cash flows. |
Segment and Geographic Area Inf
Segment and Geographic Area Information | 12 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment and Geographic Area Information | 14. Segment and Geographic Area Information (a) Business Segment The Company operates in only one business segment, being the biotechnology sector. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker in making decisions regarding resource allocation and assessing performance. The chief operating decision maker made such decisions and assessed performance at the company level, as one segment. (b) Geographic Area Information The following table summarizes the Company’s revenues and long-lived assets, net, by geographic area (in thousands): Revenues Long-lived assets, net 2015 2014 2013 2015 2014 U.S. $ 26,465 $ 3,248 $ 1,873 $ 273 $ 248 U.K. 100 225 270 65 49 Consolidated $ 26,565 $ 3,473 $ 2,143 $ 338 $ 297 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | 15. Quarterly Financial Data (unaudited) The following table summarizes the quarterly results of operations for the years ended June 30, 2015 and 2014 (in thousands except per share amounts): Fiscal Year 2015 First Quarter Second Quarter 2014 Third Quarter 2015 Fourth Quarter June 30, 2015 Year Ended (1) Total revenues $ 25,307 $ 521 $ 328 $ 409 $ 26,565 Operating income (loss) 20,789 (4,116 ) (5,052 ) (5,200 ) 6,421 Net income (loss) 20,566 (4,075 ) (4,998 ) (5,146 ) 6,347 Net income (loss) per share: Basic $ 0.70 $ (0.14 ) $ (0.17 ) $ (0.17 ) $ 0.22 Diluted $ 0.67 $ (0.14 ) $ (0.17 ) $ (0.17 ) $ 0.21 Weighted average common shares: Basic 29,323 29,367 29,412 29,412 29,378 Diluted 30,765 29,367 29,412 29,412 30,584 Fiscal Year 2014 First Quarter Second Quarter 2013 Third Quarter 2014 Fourth Quarter June 30, 2014 Year Ended (2) Total revenues $ 597 $ 592 $ 1,992 $ 292 $ 3,473 Operating loss (3,718 ) (3,541 ) (2,219 ) (4,012 ) (13,490 ) Net loss (3,687 ) (3,514 ) (2,187 ) (3,967 ) (13,355 ) Net loss per share—basic and diluted $ (0.14 ) $ (0.13 ) $ (0.08 ) $ (0.14 ) $ (0.49 ) Weighted average common shares—basic and diluted 25,918 26,953 27,672 29,256 27,444 (1) Results for the first quarter of fiscal 2015 included $25.0 million of revenue as a result of the FDA approval of ILUVIEN under the Company’s collaboration agreement with Alimera (see Note 3). (2) Results for the third quarter of fiscal 2014 included $1.5 million of revenue for recognition of arrangement consideration upon resolution of a contingency associated with completion of a feasibility study agreement (see Note 3). |
Significant Accounting Polici22
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements are presented in U.S. dollars in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and include the accounts of pSivida Corp. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The Company’s fiscal year ends on June 30 of each year. The years ended June 30, 2015, 2014 and 2013 may be referred to herein as fiscal 2015, fiscal 2014 and fiscal 2013, respectively. Certain prior period amounts have been reclassified to conform to the current presentation. Specifically, the significant components of the rate reconciliation have been reclassified to present permanent items and the significant components of the gross deferred tax assets have been reclassified to present tax credits (see Note 12). |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts and disclosure of assets and liabilities at the date of the consolidated financial statements and the reported amounts and disclosure of revenues and expenses during the reporting periods. Significant management estimates and assumptions include, among others, those related to revenue recognition for multiple-deliverable arrangements, recognition of expense in outsourced clinical trial agreements, recoverability of intangible assets, realization of deferred tax assets and the valuation of stock option awards. Actual results could differ from these estimates. |
Foreign Currency | Foreign Currency The functional currency of the Company and each of its subsidiaries is the currency of the primary economic environment in which that entity operates—the U.S. dollar or the Pound Sterling. Assets and liabilities of the Company’s foreign subsidiary are translated at period-end exchange rates. Amounts included in the statements of comprehensive income (loss) and cash flows are translated at the weighted average exchange rates for the period. Gains and losses from currency translation are included in accumulated other comprehensive income as a separate component of stockholders’ equity in the consolidated balance sheets. The balance of accumulated other comprehensive income attributable to foreign currency translation was $950,000 at June 30, 2015 and $1,045,000 at June 30, 2014. Foreign currency gains or losses arising from transactions denominated in foreign currencies, whether realized or unrealized, are recorded in other income (expense), net in the consolidated statements of comprehensive income (loss) and were not significant for all periods presented. |
Cash Equivalents | Cash Equivalents Cash equivalents represent highly liquid investments with maturities of three months or less at the date of purchase, principally consisting of institutional money market funds. |
Marketable Securities | Marketable Securities Marketable securities consist of investments with an original or remaining maturity of greater than three months at the date of purchase. The Company has classified its marketable securities as available-for-sale. Accordingly, the Company records these investments at fair value, with unrealized gains and losses excluded from earnings and reported, net of tax, in accumulated other comprehensive income, which is a component of stockholders’ equity. If the Company determines that a decline of any investment is other-than-temporary, the investment is written down to fair value. As of June 30, 2015 and 2014, there were no investments in a significant unrealized loss position. The fair value of marketable securities is determined based on quoted market prices at the balance sheet date of the same or similar instruments. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts through to the earlier of sale or maturity. Such amortization and accretion amounts are included in interest income, net in the consolidated statements of comprehensive income (loss). The cost of marketable securities sold is determined by the specific identification method. |
Concentrations of Risk | Concentrations of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and marketable securities. At June 30, 2015, all of the Company’s interest-bearing cash equivalent balances, aggregating $15.8 million, were concentrated in one institutional money market fund that has investments consisting primarily of certificates of deposit, commercial paper, time deposits and treasury repurchase agreements. Generally, these deposits may be redeemed upon demand and, therefore, the Company believes they bear minimal risk. Marketable securities at June 30, 2015 and 2014 consisted of investment-grade corporate bonds and commercial paper. The Company’s investment policy, approved by the Board of Directors, includes guidelines relative to diversification and maturities designed to preserve principal and liquidity. Alimera Sciences accounted for $25.1 million, or 95% of total revenues in fiscal 2015 and inconsequential revenues in each of fiscal 2014 and fiscal 2013. Bausch & Lomb accounted for $1.2 million, or 5% of total revenues in fiscal 2015, $1.3 million, or 38% of total revenues in fiscal 2014, and $1.4 million, or 64%, of total revenues in fiscal 2013. A completed feasibility study agreement accounted for $1.7 million, or 49%, of total revenues in fiscal 2014. Pfizer revenues, which were inconsequential in fiscal 2015 and fiscal 2014, accounted for $368,000, or 17%, of total revenues in fiscal 2013. Bausch & Lomb accounted for $371,000, or 60% of total accounts receivable at June 30, 2015 and $302,000, or 58% of total accounts receivable at June 30, 2014. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value because of their short-term maturity. |
Accounts and Other Receivables | Accounts and Other Receivables Receivables consist primarily of: (i) quarterly royalties earned; (ii) U.K. research and development tax credits; and (iii) accrued interest on marketable securities. |
Debt and Equity Instruments | Debt and Equity Instruments Debt and equity instruments are classified as either liabilities or equity in accordance with the substance of the contractual arrangement. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives (generally three to five years) using the straight-line method. Leasehold improvements are amortized on a straight-line basis over the shorter of the remaining non-cancellable lease term or their estimated useful lives. Repair and maintenance costs are expensed as incurred. When assets are retired or sold, the assets and accumulated depreciation are derecognized from the respective accounts and any gain or loss is recognized. |
Leases | Leases The Company leases real estate and office equipment under operating leases. Its primary real estate lease contains rent holiday and rent escalation clauses. The Company recognizes the rent holiday and scheduled rent increases on a straight-line basis over the lease term, with the excess of rent expense over cash payments recorded as a deferred rent liability. |
Impairment of Intangible Assets | Impairment of Intangible Assets The Company’s finite life intangible assets include its acquired Durasert™ and BioSilicon™ (including Tethadur™) patented technologies, which are being amortized on a straight-line basis over twelve years. The intangible asset lives were determined based upon the anticipated period that the Company will derive future cash flows from the intangible assets, considering the effects of legal, regulatory, contractual, competitive and other economic factors. The Company continually monitors whether events or circumstances have occurred that indicate that the remaining estimated useful life of its intangible assets may warrant revision. The Company assesses potential impairments to its intangible assets when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized when the future undiscounted net cash flows expected to result from the use of an asset are less than its carrying value. If the Company considers an asset to be impaired, the impairment charge to be recognized is measured by the amount by which the carrying value of the asset exceeds its estimated fair value. |
Revenue Recognition | Revenue Recognition Collaborative Research and Development and Multiple-Deliverable Arrangements The Company enters into collaborative arrangements with strategic partners for the development and commercialization of product candidates utilizing the Company’s technologies. The terms of these agreements have typically included multiple deliverables by the Company (for example, license rights, research and development services and manufacturing of clinical materials) in exchange for consideration to the Company of some combination of non-refundable license fees, research and development funding, payments based upon achievement of clinical development or other milestones and royalties in the form of a designated percentage of product sales or profits. Revenue is recognized when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed and determinable, and collection is reasonably assured. Multiple-deliverable arrangements, such as license and development agreements, are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. When deliverables are separable, consideration received is allocated to the separate units of accounting based on the relative selling price method using management’s best estimate of the standalone selling price of deliverables when vendor-specific objective evidence or third-party evidence of selling price is not available. Allocated consideration is recognized as revenue upon application of the appropriate revenue recognition principles to each unit. When the Company determines that an arrangement should be accounted for as a single unit of accounting, it must determine the period over which the performance obligations will be performed and revenue will be recognized. The Company estimates its performance period used for revenue recognition based on the specific terms of each agreement, and adjusts the performance periods, if appropriate, based on the applicable facts and circumstances. Significant management judgment may be required to determine the level of effort required under an arrangement and the period over which the Company is expected to complete its performance obligations under the arrangement. If the Company cannot reasonably estimate when its performance obligations either are completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. Royalties Royalty income is recognized upon the sale of the related products, provided that the royalty amounts are fixed or determinable, collection of the related receivable is reasonably assured and the Company has no remaining performance obligations under the arrangement. Such revenues are included as royalty income. If royalties are received when the Company has remaining performance obligations, the royalty payments would be attributed to the services being provided under the arrangement and therefore revenue would be recognized as such performance obligations are performed. Any such revenues are included as collaborative research and development revenues. Reimbursement of Costs The Company may provide research and development services and incur maintenance costs of licensed patents under collaboration arrangements to assist in advancing the development of licensed products. The Company acts primarily as a principal in these transactions and, accordingly, reimbursement amounts received are classified as a component of revenue to be recognized consistent with the revenue recognition policy summarized above. The Company records the expenses incurred and reimbursed on a gross basis. Deferred Revenue Amounts received prior to satisfying the above revenue recognition criteria are recorded as deferred revenue in the accompanying consolidated balance sheets. Amounts not expected to be recognized within one year following the balance sheet date are classified as non-current deferred revenue. |
Research and Development | Research and Development Research and development costs are charged to operations as incurred. These costs include all direct costs, including cash compensation, stock-based compensation and benefits for research and development personnel, amortization of intangible assets, third-party costs and services for clinical trials, clinical materials, pre-clinical programs, regulatory affairs, external consultants, and other operational costs related to the Company’s research and development of its product candidates. |
Stock-Based Compensation | Stock-Based Compensation The Company may award stock options and other equity-based instruments to its employees, directors and consultants pursuant to stockholder-approved plans. Compensation cost related to such awards is based on the fair value of the instrument on the grant date and is recognized, net of estimated forfeitures, on a graded vesting basis over the requisite service period for each separately vesting tranche of the awards. The Company may also award stock options that are subject to objectively measurable performance and service criteria. Compensation expense for performance-based option awards begins at such time as it becomes probable that the respective performance conditions will be achieved. The Company continues to recognize the grant date fair value of performance-based options through the vesting date of the respective awards so long as it remains probable that the related performance conditions will be satisfied. The Company estimates the fair value of stock option awards using the Black-Scholes option valuation model. |
Net Income (Loss) per Share | Net Income (Loss) per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. For periods in which the Company reports net income, diluted net income per share is determined by adding to the weighted-average number of common shares outstanding the average number of dilutive common equivalent shares using the treasury stock method, unless the effect is anti-dilutive. The following table reconciles the number of shares used to compute basic and diluted net income (loss) per share: Year Ended June 30, 2015 2014 2013 Number of common shares—basic 29,378,250 27,443,592 23,044,152 Effect of dilutive securities: Stock options 956,441 — — Warrants 249,449 — — Number of common shares—diluted 30,584,140 27,443,592 23,044,152 Potential common stock equivalents excluded from the calculation of diluted earnings per share because the effect would have been anti-dilutive were as follows: Year Ended June 30, 2015 2014 2013 Options outstanding 2,010,793 3,791,001 3,554,549 Warrants outstanding 552,500 1,176,105 1,176,105 2,563,293 4,967,106 4,730,654 |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss), foreign currency translation adjustments and unrealized gains and losses on available-for-sale marketable securities. |
Income Tax | Income Tax The Company accounts for income taxes under the asset and liability method. Deferred income tax assets and liabilities are computed for the expected future impact of differences between the financial reporting and income tax bases of assets and liabilities and for the expected future benefit to be derived from tax credits and loss carry forwards. Such deferred income tax computations are measured based on enacted tax laws and rates applicable to the years in which these temporary differences are expected to be recovered or settled. A valuation allowance is provided against net deferred tax assets if, based on the available evidence, it is more likely than not that some or all of the net deferred tax assets will not be realized. The Company determines whether it is more likely than not that a tax position will be sustained upon examination. If it is not more likely than not that a position will be sustained, none of the benefit attributable to the position is recognized. The tax benefit to be recognized for any tax position that meets the more likely than not recognition threshold is calculated as the largest amount that is more than 50% likely of being realized upon resolution of the uncertainty. The Company accounts for interest and penalties related to uncertain tax positions as part of its income tax benefit. |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted and Recently Issued Accounting Pronouncements New accounting pronouncements are issued periodically by the Financial Accounting Standards Board (“FASB”) and are adopted by the Company as of the specified effective dates. Unless otherwise disclosed below, the Company believes that the impact of recently issued and adopted pronouncements will not have a material impact on the Company’s financial position, results of operations and cash flows or do not apply to the Company’s operations. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern |
Significant Accounting Polici23
Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule that Reconciles the Number of Shares Used to Compute Basic and Diluted Net (Loss) Income Per Share | The following table reconciles the number of shares used to compute basic and diluted net income (loss) per share: Year Ended June 30, 2015 2014 2013 Number of common shares—basic 29,378,250 27,443,592 23,044,152 Effect of dilutive securities: Stock options 956,441 — — Warrants 249,449 — — Number of common shares—diluted 30,584,140 27,443,592 23,044,152 |
Potentially Dilutive Securities Excluded from Computation of Diluted Weighted-Average Shares | Potential common stock equivalents excluded from the calculation of diluted earnings per share because the effect would have been anti-dilutive were as follows: Year Ended June 30, 2015 2014 2013 Options outstanding 2,010,793 3,791,001 3,554,549 Warrants outstanding 552,500 1,176,105 1,176,105 2,563,293 4,967,106 4,730,654 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Reconciliation of Intangible Assets | The reconciliation of intangible assets for the years ended June 30, 2015 and 2014 was as follows (in thousands): June 30, 2015 2014 Patented technologies Gross carrying amount at beginning of year $ 41,689 $ 38,941 Foreign currency translation adjustments (1,979 ) 2,748 Gross carrying amount at end of year 39,710 41,689 Accumulated amortization at beginning of year (38,924 ) (35,511 ) Amortization expense (770 ) (778 ) Foreign currency translation adjustments 1,909 (2,635 ) Accumulated amortization at end of year (37,785 ) (38,924 ) Net book value at end of year $ 1,925 $ 2,765 |
Schedule of Net Book Value of Intangible Assets | The net book value of the Company’s intangible assets at June 30, 2015 and 2014 is summarized as follows (in thousands): June 30, Estimated 2015 2014 (Years) Patented technologies Durasert $ 1,324 $ 1,853 2.5 BioSilicon 601 912 2.5 $ 1,925 $ 2,765 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Unrealized Loss and Fair Value of Available-for-Sale Marketable Securities | The amortized cost, unrealized loss and fair value of the Company’s available-for-sale marketable securities at June 30, 2015 and 2014 were as follows (in thousands): June 30, 2015 Amortized Unrealized Fair Corporate bonds $ 9,419 $ (5 ) $ 9,414 June 30, 2014 Amortized Unrealized Fair Corporate bonds $ 2,446 $ (1 ) $ 2,445 Commercial paper 499 — 499 Total marketable securities $ 2,945 $ (1 ) $ 2,944 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consisted of the following (in thousands): June 30, 2015 2014 Property and equipment $ 1,927 $ 1,956 Leasehold improvements 217 231 Gross property and equipment 2,144 2,187 Accumulated depreciation and amortization (1,806 ) (1,890 ) $ 338 $ 297 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets Carried at Fair Value Measured on Recurring Basis | The following table summarizes the Company’s assets carried at fair value measured on a recurring basis at June 30, 2015 and 2014 by valuation hierarchy (in thousands): June 30, 2015 Description Total Carrying Quoted prices in Significant other Significant Assets: Cash equivalents $ 15,835 $ 15,835 $ — $ — Marketable securities: Corporate bonds 9,414 7,413 2,001 — $ 25,249 $ 23,248 $ 2,001 $ — June 30, 2014 Description Total Carrying Quoted prices in Significant other Significant Assets: Cash equivalents $ 14,260 $ 14,260 $ — $ — Marketable securities: Corporate bonds 2,444 1,936 508 — Commercial paper 500 — 500 — $ 17,204 $ 16,196 $ 1,008 $ — |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): June 30, 2015 2014 Personnel costs $ 735 $ 952 Professional fees 384 249 Clinical trial costs 1,424 316 Other 28 7 $ 2,571 $ 1,524 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Key Assumptions Used to Apply Option Pricing Model for Options Granted | The key assumptions used to apply the option pricing model for options granted under the 2008 Plan during the years ended June 30, 2015, 2014 and 2013 were as follows: 2015 2014 2013 Option life (in years) 5.50 - 6.25 5.50 - 6.25 5.50 - 6.25 Stock volatility 79% - 93% 94% - 96% 95% - 98% Risk-free interest rate 1.70% - 2.00% 1.70% - 1.99% 0.81% - 0.98% Expected dividends 0.0% 0.0% 0.0% |
Summary of Information about Stock Options | The following table summarizes information about stock options for the years ended June 30, 2015, 2014 and 2013 (in thousands except per share amounts): 2015 2014 2013 Weighted-average grant date fair value per share $ 3.33 $ 2.48 $ 1.29 Total cash received from exercise of stock options 235 987 — Total intrinsic value of stock options exercised 257 841 — |
Compensation Expense from Stock-Based Payment Awards | The Company’s statements of comprehensive income (loss) included total compensation expense from stock-based payment awards as follows (in thousands): Year Ended June 30, 2015 2014 2013 Compensation expense included in: Research and development $ 676 $ 516 $ 632 General and administrative 1,285 895 685 $ 1,961 $ 1,411 $ 1,317 |
2008 Incentive Plan [Member] | |
Stock Option Activity Under Plan | The following table provides a reconciliation of stock option activity under the 2008 Plan for fiscal 2015: Number of Weighted Weighted Aggregate (in years) (in thousands) Outstanding at July 1, 2014 3,791,001 $ 3.08 Granted 831,200 4.48 Exercised (113,807 ) 2.07 Forfeited (60,419 ) 4.00 Outstanding at June 30, 2015 4,447,975 $ 3.36 6.23 $ 3,165 Outstanding at June 30, 2015—vested or unvested and expected to vest 4,365,104 $ 3.35 6.19 $ 3,141 Exercisable at June 30, 2015 2,894,183 $ 3.03 5.09 $ 2,767 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) are as follows (in thousands): Year Ended June 30, 2015 2014 2013 U.S. operations: Current income tax expense $ 263 $ — $ — Deferred income tax benefit — — — 263 — — Non-U.S. operations: Current income tax benefit (167 ) (130 ) (117 ) Deferred income tax benefit — — — (167 ) (130 ) (117 ) Income tax expense (benefit) $ 96 $ (130 ) $ (117 ) |
Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes are as follows (in thousands): Year Ended June 30, 2015 2014 2013 U.S. operations $ 8,120 $ (11,712 ) $ (10,101 ) Non-U.S. operations (1,677 ) (1,773 ) (1,916 ) Income (loss) before income taxes $ 6,443 $ (13,485 ) $ (12,017 ) |
Difference Between Expected Income Tax Expense (Benefit) and Actual Income Tax Expense (Benefit) | The difference between Company’s expected income tax expense (benefit), as computed by applying the statutory U.S. federal tax rate of 34% to income (loss) before income taxes, and actual income tax expense (benefit) is reconciled in the following table (in thousands): Year Ended June 30, 2015 2014 2013 Income tax expense (benefit) at statutory rate $ 2,191 $ (4,585 ) $ (4,086 ) State income taxes, net of federal benefit 435 (693 ) (569 ) Non-U.S. income tax rate differential 137 157 145 Research and development tax credits (313 ) (169 ) (134 ) Capital loss expiration 511 — — Permanent items 236 221 201 Changes in valuation allowance (3,572 ) 4,619 2,939 Expiration of state net operating loss carryforwards — 161 706 Other, net 471 159 681 Income tax expense (benefit) $ 96 $ (130 ) $ (117 ) |
Significant Components of Deferred Income Taxes | The significant components of deferred income taxes are as follows (in thousands): June 30, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 25,736 $ 30,123 Deferred revenue 2,194 2,194 Stock-based compensation 3,431 3,079 Tax credits 1,246 564 Provision for loss on note receivable — 511 Other 110 88 Total deferred tax assets 32,717 36,559 Deferred tax liabilities: Intangible assets 640 910 Deferred tax assets, net 32,077 35,649 Valuation allowance 32,077 35,649 Total deferred tax liability $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments Under Non-Cancellable Operating Leases | At June 30, 2015, the Company’s total future minimum lease payments under non-cancellable operating leases were as follows (in thousands): Fiscal Year: 2016 $ 482 2017 482 2018 437 2019 359 2020 — $ 1,760 |
Segment and Geographic Area I32
Segment and Geographic Area Information (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Summary of Company's Revenues and Long-Lived Assets, Net, by Geographic Area | The following table summarizes the Company’s revenues and long-lived assets, net, by geographic area (in thousands): Revenues Long-lived assets, net 2015 2014 2013 2015 2014 U.S. $ 26,465 $ 3,248 $ 1,873 $ 273 $ 248 U.K. 100 225 270 65 49 Consolidated $ 26,565 $ 3,473 $ 2,143 $ 338 $ 297 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | The following table summarizes the quarterly results of operations for the years ended June 30, 2015 and 2014 (in thousands except per share amounts): Fiscal Year 2015 First Quarter Second Quarter 2014 Third Quarter 2015 Fourth Quarter June 30, 2015 Year Ended (1) Total revenues $ 25,307 $ 521 $ 328 $ 409 $ 26,565 Operating income (loss) 20,789 (4,116 ) (5,052 ) (5,200 ) 6,421 Net income (loss) 20,566 (4,075 ) (4,998 ) (5,146 ) 6,347 Net income (loss) per share: Basic $ 0.70 $ (0.14 ) $ (0.17 ) $ (0.17 ) $ 0.22 Diluted $ 0.67 $ (0.14 ) $ (0.17 ) $ (0.17 ) $ 0.21 Weighted average common shares: Basic 29,323 29,367 29,412 29,412 29,378 Diluted 30,765 29,367 29,412 29,412 30,584 Fiscal Year 2014 First Quarter Second Quarter 2013 Third Quarter 2014 Fourth Quarter June 30, 2014 Year Ended (2) Total revenues $ 597 $ 592 $ 1,992 $ 292 $ 3,473 Operating loss (3,718 ) (3,541 ) (2,219 ) (4,012 ) (13,490 ) Net loss (3,687 ) (3,514 ) (2,187 ) (3,967 ) (13,355 ) Net loss per share—basic and diluted $ (0.14 ) $ (0.13 ) $ (0.08 ) $ (0.14 ) $ (0.49 ) Weighted average common shares—basic and diluted 25,918 26,953 27,672 29,256 27,444 (1) Results for the first quarter of fiscal 2015 included $25.0 million of revenue as a result of the FDA approval of ILUVIEN under the Company’s collaboration agreement with Alimera (see Note 3). (2) Results for the third quarter of fiscal 2014 included $1.5 million of revenue for recognition of arrangement consideration upon resolution of a contingency associated with completion of a feasibility study agreement (see Note 3). |
Operations - Additional Informa
Operations - Additional Information (Detail) - Jun. 30, 2015 $ in Millions | USD ($)Country |
Operations [Line Items] | |
Cash equivalents and marketable securities | $ | $ 28.5 |
Europe [Member] | ILUVIEN [Member] | |
Operations [Line Items] | |
Number of additional countries approved for lead product | 14 |
Significant Accounting Polici35
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Accumulated other comprehensive income attributable to foreign currency translation | $ 950,000 | $ 1,045,000 | $ 950,000 | $ 1,045,000 | |||||||
Investments in significant unrealized loss position | 0 | 0 | 0 | 0 | |||||||
Interest-bearing cash equivalent | 15,800,000 | 15,800,000 | |||||||||
Revenues | 409,000 | $ 328,000 | $ 521,000 | $ 25,307,000 | 292,000 | $ 1,992,000 | $ 592,000 | $ 597,000 | 26,565,000 | 3,473,000 | $ 2,143,000 |
Accounts receivable | 622,000 | 517,000 | $ 622,000 | 517,000 | |||||||
Durasert and BioSilicon [Member] | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Finite life intangible assets amortization period | 12 years | ||||||||||
Minimum [Member] | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Estimated useful lives of assets | 3 years | ||||||||||
Maximum [Member] | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Estimated useful lives of assets | 5 years | ||||||||||
Pfizer [Member] | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Revenues | $ 368,000 | ||||||||||
Pfizer [Member] | Customer Concentration Risk [Member] | Total Revenues [Member] | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Percentage of concentration risk | 17.00% | ||||||||||
Bausch and Lomb [Member] | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Revenues | $ 1,200,000 | 1,300,000 | $ 1,400,000 | ||||||||
Accounts receivable | $ 371,000 | $ 302,000 | $ 371,000 | $ 302,000 | |||||||
Bausch and Lomb [Member] | Customer Concentration Risk [Member] | Total Revenues [Member] | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Percentage of concentration risk | 5.00% | 38.00% | 64.00% | ||||||||
Bausch and Lomb [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Percentage of concentration risk | 60.00% | 58.00% | |||||||||
Feasibility Study Agreement [Member] | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Revenues | $ 1,700,000 | ||||||||||
Feasibility Study Agreement [Member] | Customer Concentration Risk [Member] | Total Revenues [Member] | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Percentage of concentration risk | 49.00% | ||||||||||
Alimera [Member] | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Revenues | $ 25,100,000 | ||||||||||
Alimera [Member] | Customer Concentration Risk [Member] | Total Revenues [Member] | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Percentage of concentration risk | 95.00% |
Significant Accounting Polici36
Significant Accounting Policies - Schedule that Reconciles the Number of Shares Used to Compute Basic and Diluted Net (Loss) Income per Share (Detail) - shares | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share [Abstract] | |||||||
Number of common shares - basic | 29,412,000 | 29,412,000 | 29,367,000 | 29,323,000 | 29,378,250 | 27,443,592 | 23,044,152 |
Effect of dilutive securities: | |||||||
Stock options | 956,441 | 0 | 0 | ||||
Warrants | 249,449 | 0 | 0 | ||||
Number of common shares - diluted | 29,412,000 | 29,412,000 | 29,367,000 | 30,765,000 | 30,584,140 | 27,443,592 | 23,044,152 |
Significant Accounting Polici37
Significant Accounting Policies - Potentially Dilutive Securities Excluded from Computation of Diluted Weighted-Average Shares (Detail) - shares | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation | 2,563,293 | 4,967,106 | 4,730,654 |
Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation | 2,010,793 | 3,791,001 | 3,554,549 |
Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation | 552,500 | 1,176,105 | 1,176,105 |
License and Collaboration Agr38
License and Collaboration Agreements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2013 | Jun. 30, 2011 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | |
Collaborative Agreements And Contracts [Line Items] | ||||||
Collaborative research and development revenue | $ 25,411,000 | $ 2,155,000 | $ 780,000 | |||
Current portion of deferred revenue | 33,000 | 138,000 | ||||
Noncurrent portion of deferred revenue | $ 5,596,000 | 5,584,000 | ||||
Percentage of outstanding share capital owned by Pfizer | 6.30% | |||||
Royalty income | $ 1,154,000 | 1,318,000 | 1,363,000 | |||
Accounts receivable | $ 622,000 | 517,000 | ||||
Enigma Therapeutics Limited [Member] | ||||||
Collaborative Agreements And Contracts [Line Items] | ||||||
Percentage of royalties received from sublicense | 8.00% | |||||
Percentage of non-royalty consideration received from sublicense | 20.00% | |||||
Collaborative research and development revenue | $ 100,000 | 102,000 | 100,000 | |||
Upfront payment | $ 100,000 | |||||
Deferred revenue | $ 0 | |||||
License agreement commencement date | 2012-12 | |||||
Annual license maintenance fee | $ 100,000 | |||||
Alimera [Member] | ||||||
Collaborative Agreements And Contracts [Line Items] | ||||||
Percentage of company's share of net profits | 20.00% | |||||
Pre-profitability net losses percentage | 20.00% | |||||
Maximum Percentage offset of previously incurred and unapplied pre-profitability quarterly net losses | 4.00% | |||||
Percentage of net profit share after offset of previously incurred and unapplied pre-profitability net losses | 16.00% | |||||
Percentage of royalties received from sublicense | 20.00% | |||||
Percentage of non-royalty consideration received from sublicense | 33.00% | |||||
Milestone payment received upon an FDA approval of ILUVIEN | $ 25,000,000 | |||||
Collaborative research and development revenue | $ 25,100,000 | 114,000 | 67,000 | |||
Pfizer Collaboration Agreement [Member] | ||||||
Collaborative Agreements And Contracts [Line Items] | ||||||
Collaborative research and development revenue | $ 3,300,000 | 368,000 | ||||
Upfront payment | 2,300,000 | |||||
Contingent option exercise period | 90 days | |||||
License option upfront payment upon exercise | $ 20,000,000 | |||||
Estimated selling price of the deliverables for revenue recognition | 6,700,000 | |||||
Current portion of deferred revenue | 0 | 0 | ||||
Noncurrent portion of deferred revenue | 5,600,000 | 5,600,000 | ||||
Collaboration agreement cumulative cash consideration received | 10,050,000 | |||||
Deferred revenue | $ 7,750,000 | |||||
Bausch and Lomb [Member] | ||||||
Collaborative Agreements And Contracts [Line Items] | ||||||
Royalty income | 1,200,000 | 1,300,000 | 1,400,000 | |||
Accounts receivable | 371,000 | 302,000 | ||||
Feasibility Study Agreement [Member] | ||||||
Collaborative Agreements And Contracts [Line Items] | ||||||
Collaborative research and development revenue | $ 144,000 | $ 1,900,000 | $ 245,000 |
Intangible Assets - Reconciliat
Intangible Assets - Reconciliation of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ (770) | $ (778) | $ (769) |
Net book value at end of year | 1,925 | 2,765 | |
Patented Technologies [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount at beginning of year | 41,689 | 38,941 | |
Foreign currency translation adjustments | (1,979) | 2,748 | |
Gross carrying amount at end of year | 39,710 | 41,689 | 38,941 |
Accumulated amortization at beginning of year | (38,924) | (35,511) | |
Amortization expense | (770) | (778) | |
Foreign currency translation adjustments | 1,909 | (2,635) | |
Accumulated amortization at end of year | (37,785) | (38,924) | $ (35,511) |
Net book value at end of year | $ 1,925 | $ 2,765 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Net Book Value of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Intangible Assets [Line Items] | ||
Net book value of intangible assets | $ 1,925 | $ 2,765 |
Durasert [Member] | ||
Intangible Assets [Line Items] | ||
Net book value of intangible assets | $ 1,324 | 1,853 |
Estimated remaining useful life | 2 years 6 months | |
BioSilicon [Member] | ||
Intangible Assets [Line Items] | ||
Net book value of intangible assets | $ 601 | $ 912 |
Estimated remaining useful life | 2 years 6 months |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 770,000 | $ 778,000 | $ 769,000 |
Intangible assets, net | 1,925,000 | $ 2,765,000 | |
Amortization expense per year | $ 770,000 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Amortized Cost, Unrealized Loss and Fair Value of Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Amortized Cost | $ 2,945 | |
Marketable securities, Unrealized Loss | (1) | |
Marketable securities, Fair Value | 2,944 | |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Amortized Cost | $ 9,419 | 2,446 |
Marketable securities, Unrealized Loss | (5) | (1) |
Marketable securities, Fair Value | $ 9,414 | 2,445 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Amortized Cost | 499 | |
Marketable securities, Unrealized Loss | 0 | |
Marketable securities, Fair Value | $ 499 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable securities purchased | $ 10,222 | $ 2,964 | $ 7,758 |
Marketable securities matured and sold | $ 3,650 | $ 3,350 | $ 14,184 |
Weighted average maturity | 5 months 3 days | ||
Minimum [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable securities maturity period | 15 days | ||
Maximum [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable securities maturity period | 8 months 15 days |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 2,144 | $ 2,187 |
Accumulated depreciation and amortization | (1,806) | (1,890) |
Property and equipment, net | 338 | 297 |
Property and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 1,927 | 1,956 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 217 | $ 231 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Property Plant and Equipment Useful Life and Values [Abstract] | |||
Depreciation of property and equipment | $ 112 | $ 139 | $ 225 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Assets: | ||
Cash equivalents | $ 15,835 | $ 14,260 |
Marketable securities | 9,414 | 2,944 |
Cash equivalents and marketable securities | 25,249 | 17,204 |
Corporate Bonds [Member] | ||
Assets: | ||
Marketable securities | 9,414 | 2,444 |
Commercial Paper [Member] | ||
Assets: | ||
Marketable securities | 500 | |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Assets: | ||
Cash equivalents | 15,835 | 14,260 |
Cash equivalents and marketable securities | 23,248 | 16,196 |
Quoted Prices in Active Markets (Level 1) [Member] | Corporate Bonds [Member] | ||
Assets: | ||
Marketable securities | 7,413 | 1,936 |
Quoted Prices in Active Markets (Level 1) [Member] | Commercial Paper [Member] | ||
Assets: | ||
Marketable securities | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Cash equivalents and marketable securities | 2,001 | 1,008 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ||
Assets: | ||
Marketable securities | 2,001 | 508 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | ||
Assets: | ||
Marketable securities | 500 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Cash equivalents and marketable securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Bonds [Member] | ||
Assets: | ||
Marketable securities | $ 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial Paper [Member] | ||
Assets: | ||
Marketable securities | $ 0 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Payables and Accruals [Abstract] | ||
Personnel costs | $ 735 | $ 952 |
Professional fees | 384 | 249 |
Clinical trial costs | 1,424 | 316 |
Other | 28 | 7 |
Accrued expenses | $ 2,571 | $ 1,524 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2014USD ($)Investor$ / sharesshares | Dec. 31, 2013USD ($) | Jul. 31, 2013USD ($)$ / sharesshares | Aug. 31, 2012USD ($)$ / sharesshares | Jan. 31, 2011$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2013shares | |
Class of Stock [Line Items] | ||||||||
Common stock issued to investors | shares | 1,700,000 | 3,494,550 | 2,494,419 | |||||
Common stock price per share | $ / shares | $ 4.11 | $ 3.10 | ||||||
Gross proceeds from issuance of common stock | $ 7,000,000 | $ 10,800,000 | ||||||
Share issuance costs | $ 191,000 | $ 890,000 | $ 700,000 | |||||
Number of institutional investors in direct offering | Investor | 1 | |||||||
Number of warrants to purchase shares of common stock issued | shares | 623,605 | 552,500 | ||||||
Proceeds from issuance of common stock and warrants | $ 5,400,000 | |||||||
Issue price per unit | $ / shares | $ 2.15 | |||||||
Percentage of warrants on common stock | 25.00% | |||||||
Warrant exercise price | $ / shares | $ 2.50 | $ 5 | ||||||
Term of warrants | 5 years | 5 years | ||||||
Class of warrant or right - period from which warrants or rights exercisable | 2013-02 | |||||||
Number of warrants | shares | 1,176,105 | 1,176,105 | ||||||
Weighted Average Exercise Price | $ / shares | $ 3.67 | $ 3.67 | ||||||
Outstanding warrants remaining contract life, weighted average period | 1 year 4 months 24 days | |||||||
At-the-Market Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock issued to investors | shares | 0 | 381,562 | ||||||
Gross proceeds from issuance of common stock | $ 1,500,000 | |||||||
Common stock shares maximum aggregate offering price | $ 19,200,000 | |||||||
Agreement transaction costs | $ 153,000 | |||||||
Stock issuances, sales agent commission maximum percentage | 3.00% | |||||||
Weighted-average gross selling price | $ / shares | $ 3.98 | |||||||
Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock issued to investors | shares | 5,576,112 | 2,494,419 | ||||||
Common Stock [Member] | At-the-Market Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock available for sale, value | $ 10,700,000 | |||||||
Minimum [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Outstanding warrants remaining contract life | 7 months | |||||||
Maximum [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Outstanding warrants remaining contract life | 2 years 1 month 6 days |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | Jul. 01, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Assumed dividend yield | 0.00% | 0.00% | 0.00% | |
Unrecognized compensation expense | $ 1.7 | |||
Unrecognized compensation expense weighted average period | 1 year 10 months 24 days | |||
2008 Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of common stock, authorized for issuance | 6,341,255 | |||
Shares available for grant | 1,123,791 | |||
Percentage increase on outstanding shares | 4.00% | |||
Options granted with annual vesting | 831,200 | |||
Options vested during the period | 542,434 | |||
Assumed dividend yield | 0.00% | |||
2008 Incentive Plan [Member] | Non-Executive Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted with annual vesting | 90,000 | |||
Vesting period of granted options | 1 year | |||
2008 Incentive Plan [Member] | Newly Appointed Non-executive Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted with annual vesting | 40,000 | |||
Vesting period of granted options | 3 years | |||
2008 Incentive Plan [Member] | Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted with annual vesting | 701,200 | |||
Vesting period of granted options | 4 years | |||
Contractual life of option grants | 10 years | |||
2008 Incentive Plan [Member] | Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares reserved for issuance, increased | 750,000 |
Stock-Based Compensation - Key
Stock-Based Compensation - Key Assumptions Used to Apply Option Pricing Model for Options Granted (Detail) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock volatility, minimum | 79.00% | 94.00% | 95.00% |
Stock volatility, maximum | 93.00% | 96.00% | 98.00% |
Risk-free interest rate, Minimum | 1.70% | 1.70% | 0.81% |
Risk-free interest rate, Maximum | 2.00% | 1.99% | 0.98% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option life (in years) | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option life (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Information about Stock Options (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted-average grant date fair value per share | $ 3.33 | $ 2.48 | $ 1.29 |
Total cash received from exercise of stock options | $ 235 | $ 987 | $ 0 |
Total intrinsic value of stock options exercised | $ 257 | $ 841 | $ 0 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity Under Plan (Detail) - 2008 Incentive Plan [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options Outstanding, Beginning balance | 3,791,001 |
Number of Options, Granted | 831,200 |
Number of Options, Exercised | (113,807) |
Number of Options, Forfeited | (60,419) |
Number of Options Outstanding, Ending balance | 4,447,975 |
Number of Options, Outstanding at June 30, 2015 - vested or unvested and expected to vest | 4,365,104 |
Number of Options, Exercisable at June 30, 2015 | 2,894,183 |
Weighted Average Exercise Price Outstanding, beginning balance | $ 3.08 |
Weighted Average Exercise Price, Granted | 4.48 |
Weighted Average Exercise Price, Exercised | 2.07 |
Weighted Average Exercise Price, Forfeited | 4 |
Weighted Average Exercise Price Outstanding, ending balance | 3.36 |
Weighted Average Exercise Price, Outstanding at June 30, 2015 - vested or unvested and expected to vest | 3.35 |
Weighted Average Exercise Price, Exercisable at June 30, 2015 | $ 3.03 |
Weighted Average Remaining Contractual Life Outstanding, Ending balance | 6 years 2 months 23 days |
Weighted Average Remaining Contractual Life, Outstanding at June 30, 2015 - vested or unvested and expected to vest | 6 years 2 months 9 days |
Weighted Average Remaining Contractual Life, Exercisable at June 30, 2015 | 5 years 1 month 2 days |
Aggregate Intrinsic Value Outstanding, Ending balance | $ 3,165 |
Aggregate Intrinsic Value, Outstanding at June 30, 2015 - vested or unvested and expected to vest | 3,141 |
Aggregate Intrinsic Value, Exercisable at June 30, 2015 | $ 2,767 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Expense from Stock-Based Payment Awards (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 1,961 | $ 1,411 | $ 1,317 |
Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 676 | 516 | 632 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 1,285 | $ 895 | $ 685 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Maximum percentage of eligible compensation matched by employer | 5.00% | ||
Employer contributions to retirement plans | $ 187,000 | $ 189,000 | $ 231,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
U.S. operations: | |||
Current income tax expense | $ 263 | $ 0 | $ 0 |
Deferred income tax benefit | 0 | 0 | 0 |
Income tax expense (benefit) continuing operations | 263 | 0 | 0 |
Non-U.S. operations: | |||
Current income tax benefit | (167) | (130) | (117) |
Deferred income tax benefit | 0 | 0 | 0 |
Income tax expense (benefit) continuing operations | (167) | (130) | (117) |
Income tax expense (benefit) | $ 96 | $ (130) | $ (117) |
Income Taxes - Components of 56
Income Taxes - Components of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ 8,120 | $ (11,712) | $ (10,101) |
Non-U.S. operations | (1,677) | (1,773) | (1,916) |
Income (loss) before income taxes | $ 6,443 | $ (13,485) | $ (12,017) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) £ in Millions | 12 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Jun. 30, 2015GBP (£) | |
Income Tax [Line Items] | ||||
Statutory U.S. federal tax rate | 34.00% | |||
Permanent items | $ 236,000 | $ 221,000 | $ 201,000 | |
Research and development tax credit carry forwards | 1,246,000 | 564,000 | ||
Federal alternative minimum tax | 263,000 | |||
Foreign current income tax benefit | 167,000 | 130,000 | 117,000 | |
Domestic or federal tax expense before utilization of loss carry forwards | 2,800,000 | |||
Domestic tax benefit from utilizing loss carry forwards | 2,500,000 | |||
Changes in valuation allowance | (3,572,000) | 4,619,000 | 2,939,000 | |
Increase (decrease) in deferred tax assets, net | (1,100,000) | 4,600,000 | $ 2,900,000 | |
Unrecognized tax benefits | 0 | 0 | ||
Accrued penalties or interest related to uncertain tax positions | 0 | $ 0 | ||
U.S. Federal [Member] | ||||
Income Tax [Line Items] | ||||
Operating loss carry forwards | $ 55,100,000 | |||
Operating loss carry forwards, expiration range start dates | 2,023 | |||
Operating loss carry forwards, expiration range end dates | 2,035 | |||
Tax years subject to examination | 2003 through 2014 | |||
United Kingdom Tax Authority [Member] | ||||
Income Tax [Line Items] | ||||
Tax years subject to examination | 2006 through 2014 | |||
Australian Tax Authority [Member] | ||||
Income Tax [Line Items] | ||||
Tax years subject to examination | 2004 through 2008 | |||
State [Member] | ||||
Income Tax [Line Items] | ||||
Operating loss carry forwards | $ 14,200,000 | |||
Research and development tax credit carry forwards expiration begin date | 2,016 | |||
Research and development tax credit carry forwards expiration end date | 2,035 | |||
Foreign Tax [Member] | ||||
Income Tax [Line Items] | ||||
Operating loss carry forwards | $ 31,100,000 | £ 19.8 | ||
Federal and State Tax [Member] | ||||
Income Tax [Line Items] | ||||
Research and development tax credit carry forwards | $ 742,000 |
Income Taxes - Difference Betwe
Income Taxes - Difference Between Expected Income Tax Expense (Benefit) and Actual Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) at statutory rate | $ 2,191 | $ (4,585) | $ (4,086) |
State income taxes, net of federal benefit | 435 | (693) | (569) |
Non-U.S. income tax rate differential | 137 | 157 | 145 |
Research and development tax credits | (313) | (169) | (134) |
Capital loss expiration | 511 | 0 | 0 |
Permanent items | 236 | 221 | 201 |
Changes in valuation allowance | (3,572) | 4,619 | 2,939 |
Expiration of state net operating loss carryforwards | 0 | 161 | 706 |
Other, net | 471 | 159 | 681 |
Income tax expense (benefit) | $ 96 | $ (130) | $ (117) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Income Taxes (Detail) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 25,736,000 | $ 30,123,000 |
Deferred revenue | 2,194,000 | 2,194,000 |
Stock-based compensation | 3,431,000 | 3,079,000 |
Tax credits | 1,246,000 | 564,000 |
Provision for loss on note receivable | 0 | 511,000 |
Other | 110,000 | 88,000 |
Total deferred tax assets | 32,717,000 | 36,559,000 |
Deferred tax liabilities: | ||
Intangible assets | 640,000 | 910,000 |
Deferred tax assets, net | 32,077,000 | 35,649,000 |
Valuation allowance | 32,077,000 | 35,649,000 |
Total deferred tax liability | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Mar. 21, 2014ft² | Jun. 30, 2015USD ($)ft² | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) |
Operating Leased Assets [Line Items] | ||||
Irrevocable standby letter of credit | $ 150,000 | |||
Rent expense related to real estate and other operating leases charged to operations | $ 494,000 | $ 485,000 | $ 454,000 | |
Watertown [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Area of leased office and laboratory space | ft² | 13,650 | |||
Expiry date of previous facilities lease | Apr. 5, 2014 | |||
Initial lease term expiration date | 2019-04 | |||
Lease renewal, Period | 5 years | |||
Malvern, U.K. [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Area of leased office and laboratory space | ft² | 2,200 | |||
Lease expiry date | Aug. 31, 2016 |
Commitments and Contingencies61
Commitments and Contingencies - Future Minimum Lease Payments Under Non-Cancellable Operating Leases (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 482 |
2,017 | 482 |
2,018 | 437 |
2,019 | 359 |
2,020 | 0 |
Total future minimum lease payments | $ 1,760 |
Segment and Geographic Area I62
Segment and Geographic Area Information - Summary of Company's Revenues and Long-Lived Assets, Net, by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-lived assets, net | $ 338 | $ 297 | $ 338 | $ 297 | |||||||
Revenues | 409 | $ 328 | $ 521 | $ 25,307 | 292 | $ 1,992 | $ 592 | $ 597 | 26,565 | 3,473 | $ 2,143 |
U.S. [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-lived assets, net | 273 | 248 | 273 | 248 | |||||||
Revenues | 26,465 | 3,248 | 1,873 | ||||||||
U.K. [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-lived assets, net | $ 65 | $ 49 | 65 | 49 | |||||||
Revenues | $ 100 | $ 225 | $ 270 |
Quarterly Financial Data - Summ
Quarterly Financial Data - Summary of Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 409 | $ 328 | $ 521 | $ 25,307 | $ 292 | $ 1,992 | $ 592 | $ 597 | $ 26,565 | $ 3,473 | $ 2,143 |
Operating income (loss) | (5,200) | (5,052) | (4,116) | 20,789 | (4,012) | (2,219) | (3,541) | (3,718) | 6,421 | (13,490) | (12,031) |
Net income (loss) | $ (5,146) | $ (4,998) | $ (4,075) | $ 20,566 | $ (3,967) | $ (2,187) | $ (3,514) | $ (3,687) | $ 6,347 | $ (13,355) | $ (11,900) |
Net income (loss) per share: | |||||||||||
Basic | $ (0.17) | $ (0.17) | $ (0.14) | $ 0.70 | $ 0.22 | $ (0.49) | $ (0.52) | ||||
Diluted | $ (0.17) | $ (0.17) | $ (0.14) | $ 0.67 | $ 0.21 | (0.49) | $ (0.52) | ||||
Net loss per share - basic and diluted | $ (0.14) | $ (0.08) | $ (0.13) | $ (0.14) | $ (0.49) | ||||||
Weighted average common shares: | |||||||||||
Basic | 29,412,000 | 29,412,000 | 29,367,000 | 29,323,000 | 29,378,250 | 27,443,592 | 23,044,152 | ||||
Diluted | 29,412,000 | 29,412,000 | 29,367,000 | 30,765,000 | 30,584,140 | 27,443,592 | 23,044,152 | ||||
Weighted average common shares - basic and diluted | 29,256,000 | 27,672,000 | 26,953,000 | 25,918,000 | 27,444,000 |
Quarterly Financial Data - Su64
Quarterly Financial Data - Summary of Quarterly Results of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Quarterly Financial Data [Line Items] | |||||||||||
Revenues | $ 409 | $ 328 | $ 521 | $ 25,307 | $ 292 | $ 1,992 | $ 592 | $ 597 | $ 26,565 | $ 3,473 | $ 2,143 |
Alimera [Member] | |||||||||||
Quarterly Financial Data [Line Items] | |||||||||||
Revenue recognized upon FDA approval of ILUVIEN | $ 25,000 | ||||||||||
Feasibility Study Agreement [Member] | |||||||||||
Quarterly Financial Data [Line Items] | |||||||||||
Revenues | $ 1,500 |