Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Nov. 29, 2013 | Mar. 31, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Biodel Inc | ' | ' |
Entity Central Index Key | '0001322505 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-Known Seasoned Issuer | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 21,075,870 | ' |
Entity Public Float | ' | ' | $40 |
Balance_Sheets
Balance Sheets (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Current: | ' | ' |
Cash and cash equivalents | $39,781 | $39,050 |
Restricted cash | ' | 60 |
Taxes receivable | 6 | 34 |
Grant receivable | 26 | 88 |
Other receivable | ' | 9 |
Prepaid and other assets | 264 | 295 |
Total current assets | 40,077 | 39,536 |
Property and equipment, net | 1,031 | 1,552 |
Intellectual property, net | 43 | 46 |
Total assets | 41,151 | 41,134 |
Current: | ' | ' |
Accounts payable | 246 | 285 |
Accrued expenses: | ' | ' |
Clinical trial expenses | 181 | 488 |
Payroll and related | 1,139 | 1,248 |
Accounting and legal fees | 226 | 244 |
Severance | 255 | 141 |
Other | 319 | 273 |
Income taxes payable | 75 | 101 |
Total current liabilities | 2,441 | 2,780 |
Common stock warrant liability | 6,121 | 7,338 |
Severance payable, long term portion | 26 | ' |
Total liabilities | 8,588 | 10,118 |
Commitments | ' | ' |
Stockholders' equity: | ' | ' |
Convertible preferred stock, $.01 par value; 50,000,000 shares authorized, 5,419,551 and 1,950,000 issued and outstanding | 19 | 54 |
Common stock, $.01 par value; 62,500,000 shares authorized; 14,174,545 and 21,070,824 issued and outstanding | 211 | 142 |
Additional paid-in capital | 247,761 | 226,913 |
Deficit accumulated during the development stage | -215,428 | -196,093 |
Total stockholders' equity | 32,563 | 31,016 |
Total liabilities and stockholders' equity | $41,151 | $41,134 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Balance Sheets [Abstract] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 1,950,000 | 5,419,551 |
Preferred stock, shares outstanding | 1,950,000 | 5,419,551 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 62,500,000 | 62,500,000 |
Common stock, shares issued | 21,070,824 | 14,174,545 |
Common stock, shares outstanding | 21,070,824 | 14,174,545 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | 118 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | |||
Income Statement [Abstract] | ' | ' | ' | ' | |||
Revenue | ' | ' | ' | ' | |||
Operating expenses: | ' | ' | ' | ' | |||
Research and development | 14,296 | 12,315 | 13,597 | 155,400 | |||
Government grants | -546 | -88 | ' | -634 | |||
General and administrative | 6,843 | 7,072 | 9,625 | 72,201 | |||
Total operating expenses | 20,593 | 19,299 | 23,222 | 226,967 | |||
Other (income) and expense: | ' | ' | ' | ' | |||
Interest and other income | -56 | -80 | -60 | -5,702 | |||
Interest expense | ' | ' | ' | 78 | |||
Adjustments to fair value of common stock warrant liability | -1,217 | 1,510 | -12,611 | -11,064 | |||
Loss on settlement of debt | ' | ' | ' | 627 | |||
Loss before tax provision (benefit) | -19,320 | -20,729 | -10,551 | -210,906 | |||
Tax provision (benefit) | 15 | 18 | 41 | -538 | |||
Net loss | -19,335 | -20,747 | -10,592 | -210,368 | |||
Charge for accretion of beneficial conversion rights | ' | ' | ' | -603 | |||
Deemed dividend - warrants | ' | ' | ' | -4,457 | |||
Net loss applicable to common stockholders | ($19,335) | ($20,747) | ($10,592) | ($215,428) | |||
Net loss per share - basic and diluted | ($1.24) | [1] | ($1.91) | [1] | ($1.36) | [1] | ' |
Weighted average shares outstanding - basicand diluted | 15,650,538 | [1] | 10,882,688 | [1] | 7,788,741 | [1] | ' |
[1] | Restated for a one for four (1:4) reverse stock split effective on June 11, 2012. |
Statements_of_Operations_Paren
Statements of Operations (Parenthetical) | 12 Months Ended |
Sep. 30, 2013 | |
Income Statement [Abstract] | ' |
EPS restated due to reverse stock split effective on June 11, 2012 | '1:4 |
Statements_of_Stockholders_Equ
Statements of Stockholders' Equity (USD $) | Total | Common Stock $.01 Par Value | Series A Preferred stock | Series B Preferred stock | Additional Paid in Capital | Accumulated Other Comprehensive Income (loss) | Accumulated Deficit during the Development Stage |
In Thousands, except Share data | |||||||
Balance at Dec. 03, 2003 | ' | ' | ' | ' | ' | ' | ' |
Balance (in shares) at Dec. 03, 2003 | ' | ' | ' | ' | ' | ' | ' |
Shares issued to employees and directors for services | ' | 2 | ' | ' | -2 | ' | ' |
Shares issued to employees and directors for services (in shares) | ' | 831,126 | ' | ' | ' | ' | ' |
Proceeds from sale of common stock | 1,354 | 11 | ' | ' | 1,343 | ' | ' |
Proceeds from sale of common stock (in shares) | ' | 1,145,306 | ' | ' | ' | ' | ' |
Net loss | -774 | ' | ' | ' | ' | ' | -774 |
Balance at Sep. 30, 2004 | 580 | 13 | ' | ' | 1,341 | ' | -774 |
Balance (in shares) at Sep. 30, 2004 | ' | 1,328,432 | ' | ' | ' | ' | ' |
Shares issued to employees and directors for services | 61 | ' | ' | ' | 61 | ' | ' |
Shares issued to employees and directors for services (in shares) | ' | 10,658 | ' | ' | ' | ' | ' |
Additional stockholder contributions | 514 | ' | ' | ' | 514 | ' | ' |
Stock-based compensation | 353 | ' | ' | ' | 353 | ' | ' |
Private placement - Sale of preferred stock, net of issuance costs of $379 (July 2005) (Series A) and $1,795 (July 2006) (Series B) for 2005 and 2006 respectively | 2,466 | ' | 6 | ' | 2,460 | ' | ' |
Private placement - Sale of preferred stock, net of issuance costs of $379 (July 2005) (Series A) and $1,795 (July 2006) (Series B) for 2005 and 2006 respectively (in shares) | ' | ' | 569,000 | ' | ' | ' | ' |
Founder's compensation contributed to capital | 63 | ' | ' | ' | 63 | ' | ' |
Net loss | -3,383 | ' | ' | ' | ' | ' | -3,383 |
Balance at Sep. 30, 2005 | 654 | 13 | 6 | ' | 4,792 | ' | -4,157 |
Balance (in shares) at Sep. 30, 2005 | ' | 1,339,090 | 569,000 | ' | ' | ' | ' |
Shares issued to employees and directors for services | 23 | ' | ' | ' | 23 | ' | ' |
Shares issued to employees and directors for services (in shares) | ' | 988 | ' | ' | ' | ' | ' |
Stock-based compensation | 1,132 | ' | ' | ' | 1,132 | ' | ' |
Private placement - Sale of preferred stock, net of issuance costs of $379 (July 2005) (Series A) and $1,795 (July 2006) (Series B) for 2005 and 2006 respectively | 19,405 | ' | ' | 54 | 19,351 | ' | ' |
Private placement - Sale of preferred stock, net of issuance costs of $379 (July 2005) (Series A) and $1,795 (July 2006) (Series B) for 2005 and 2006 respectively (in shares) | ' | ' | ' | 5,380,711 | ' | ' | ' |
July 2006 - Series B preferred stock units issued July 2006 to settle debt | 3,202 | ' | ' | 8 | 3,194 | ' | ' |
July 2006 - Series B preferred stock units issued July 2006 to settle debt (in shares) | ' | ' | ' | 817,468 | ' | ' | ' |
Accretion of fair value of beneficial conversion charge | ' | ' | ' | ' | 603 | ' | -603 |
Net loss | -8,068 | ' | ' | ' | ' | ' | -8,068 |
Balance at Sep. 30, 2006 | 16,348 | 13 | 6 | 62 | 29,095 | ' | -12,828 |
Balance (in shares) at Sep. 30, 2006 | ' | 1,340,078 | 569,000 | 6,198,179 | ' | ' | ' |
Stock-based compensation | 4,224 | ' | ' | ' | 4,224 | ' | ' |
Proceeds from sale of common stock | 78,755 | 14 | ' | ' | 78,741 | ' | ' |
Proceeds from sale of common stock (in shares) | ' | 1,437,500 | ' | ' | ' | ' | ' |
Conversion of preferred stock | ' | 16 | -6 | -62 | 52 | ' | ' |
Conversion of preferred stock (in shares) | ' | 1,601,749 | -569,000 | -6,198,179 | ' | ' | ' |
Shares issued to employees, non-employees and directors for services | 16 | ' | ' | ' | 16 | ' | ' |
Shares issued to employees, non-employees and directors for services (in shares) | ' | 732 | ' | ' | ' | ' | ' |
Stock options exercised | 5 | ' | ' | ' | 5 | ' | ' |
Stock options exercised (in shares) | ' | 885 | ' | ' | ' | ' | ' |
Warrants exercised | 423 | 7 | ' | ' | 416 | ' | ' |
Warrants exercised (in shares) | ' | 659,226 | ' | ' | ' | ' | ' |
Deemed dividend - warrants | ' | ' | ' | ' | 4,457 | ' | -4,457 |
Net loss | -22,548 | ' | ' | ' | ' | ' | -22,548 |
Balance at Sep. 30, 2007 | 77,223 | 50 | ' | ' | 117,006 | ' | -39,833 |
Balance (in shares) at Sep. 30, 2007 | ' | 5,040,170 | ' | ' | ' | ' | ' |
Stock-based compensation | 6,503 | ' | ' | ' | 6,503 | ' | ' |
Proceeds from sale of common stock | 46,817 | 8 | ' | ' | 46,809 | ' | ' |
Proceeds from sale of common stock (in shares) | ' | 815,000 | ' | ' | ' | ' | ' |
Stock options exercised | 902 | 1 | ' | ' | 901 | ' | ' |
Stock options exercised (in shares) | ' | 43,600 | ' | ' | ' | ' | ' |
Warrants exercised | 112 | ' | ' | ' | 112 | ' | ' |
Warrants exercised (in shares) | ' | 19,802 | ' | ' | ' | ' | ' |
Proceeds from the sale of stock - ESPP | 181 | ' | ' | ' | 181 | ' | ' |
Proceeds from the sale of stock - ESPP (in shares) | ' | 3,596 | ' | ' | ' | ' | ' |
RSUs granted | 172 | ' | ' | ' | 172 | ' | ' |
RSUs granted (in shares) | ' | 2,428 | ' | ' | ' | ' | ' |
Net unrealized gain (loss) on Marketable Securities | -62 | ' | ' | ' | ' | -62 | ' |
Net loss | -43,361 | ' | ' | ' | ' | ' | -43,361 |
Balance at Sep. 30, 2008 | 88,487 | 59 | ' | ' | 171,684 | -62 | -83,194 |
Balance (in shares) at Sep. 30, 2008 | ' | 5,924,596 | ' | ' | ' | ' | ' |
Stock-based compensation | 5,064 | ' | ' | ' | 5,064 | ' | ' |
Stock options exercised | 25 | ' | ' | ' | 25 | ' | ' |
Stock options exercised (in shares) | ' | 4,413 | ' | ' | ' | ' | ' |
Proceeds from the sale of stock - ESPP | 170 | ' | ' | ' | 170 | ' | ' |
Proceeds from the sale of stock - ESPP (in shares) | ' | 21,863 | ' | ' | ' | ' | ' |
Net unrealized gain (loss) on Marketable Securities | 62 | ' | ' | ' | ' | 62 | ' |
Net loss | -43,270 | ' | ' | ' | ' | ' | -43,270 |
Balance at Sep. 30, 2009 | 50,538 | 59 | ' | ' | 176,943 | ' | -126,464 |
Balance (in shares) at Sep. 30, 2009 | ' | 5,950,872 | ' | ' | ' | ' | ' |
Stock-based compensation | 5,621 | ' | ' | ' | 5,621 | ' | ' |
Registered direct offering or financing | 8,712 | 6 | ' | ' | 8,706 | ' | ' |
Registered direct offering or financing (in shares) | ' | 599,550 | ' | ' | ' | ' | ' |
Initial value of warrants issued in registered direct offering | -2,915 | ' | ' | ' | -2,915 | ' | ' |
Stock options exercised | 68 | ' | ' | ' | 68 | ' | ' |
Stock options exercised (in shares) | ' | 8,076 | ' | ' | ' | ' | ' |
Proceeds from the sale of stock - ESPP | 325 | 1 | ' | ' | 324 | ' | ' |
Proceeds from the sale of stock - ESPP (in shares) | ' | 41,393 | ' | ' | ' | ' | ' |
Net unrealized gain (loss) on Marketable Securities | 1 | ' | ' | ' | ' | 1 | ' |
Net loss | -38,290 | ' | ' | ' | ' | ' | -38,290 |
Balance at Sep. 30, 2010 | 24,060 | 66 | ' | ' | 188,747 | 1 | -164,754 |
Balance (in shares) at Sep. 30, 2010 | ' | 6,599,891 | ' | ' | ' | ' | ' |
Stock-based compensation | 4,920 | ' | ' | ' | 4,920 | ' | ' |
Registered direct offering or financing | 27,961 | 30 | 18 | ' | 27,913 | ' | ' |
Registered direct offering or financing (in shares) | ' | 3,018,736 | 1,813,944 | ' | ' | ' | ' |
Initial value of warrants issued in registered direct offering | -9,438 | ' | ' | ' | -9,438 | ' | ' |
Stock options exercised (in shares) | ' | 104 | ' | ' | ' | ' | ' |
Warrants exercised | 50 | ' | ' | ' | 50 | ' | ' |
Warrants exercised (in shares) | ' | 10,549 | ' | ' | ' | ' | ' |
Proceeds from the sale of stock - ESPP | 118 | ' | ' | ' | 118 | ' | ' |
Proceeds from the sale of stock - ESPP (in shares) | ' | 17,051 | ' | ' | ' | ' | ' |
RSUs granted (in shares) | ' | 15,537 | ' | ' | ' | ' | ' |
Net unrealized gain (loss) on Marketable Securities | -1 | ' | ' | ' | ' | -1 | ' |
Net loss | -10,592 | ' | ' | ' | ' | ' | -10,592 |
Balance at Sep. 30, 2011 | 37,078 | 96 | 18 | ' | 212,310 | ' | -175,346 |
Balance (in shares) at Sep. 30, 2011 | ' | 9,661,868 | 1,813,944 | ' | ' | ' | ' |
Proceeds from the sale of unregistered securities | 17,078 | 43 | ' | 36 | 16,999 | ' | ' |
Proceeds from the sale of unregistered securities, shares | ' | 4,250,020 | ' | 3,605,607 | ' | ' | ' |
Initial value of warrants issued in private placement financing | -4,832 | ' | ' | ' | -4,832 | ' | ' |
Stock-based compensation | 1,828 | ' | ' | ' | 1,828 | ' | ' |
Proceeds from the sale of stock - ESPP | 27 | ' | ' | ' | 27 | ' | ' |
Proceeds from the sale of stock - ESPP (in shares) | ' | 10,776 | ' | ' | ' | ' | ' |
RSUs issued to settle bonus liability | 584 | 2 | ' | ' | 582 | ' | ' |
RSUs issued to settle bonus liability, (in shares) | ' | 191,719 | ' | ' | ' | ' | ' |
RSUs granted | ' | 1 | ' | ' | -1 | ' | ' |
RSUs granted (in shares) | ' | 60,409 | ' | ' | ' | ' | ' |
Net loss | -20,747 | ' | ' | ' | ' | ' | -20,747 |
Company re-purchase of fractional shares from the reverse stock split | ' | -247 | ' | ' | ' | ' | ' |
Balance at Sep. 30, 2012 | 31,016 | 142 | 18 | 36 | 226,913 | ' | -196,093 |
Balance (in shares) at Sep. 30, 2012 | ' | 14,174,545 | 1,813,944 | 3,605,607 | ' | ' | ' |
Stock-based compensation | 1,538 | ' | ' | ' | 1,538 | ' | ' |
Proceeds from sale of common stock | 19,239 | 47 | ' | ' | 19,192 | ' | ' |
Proceeds from sale of common stock (in shares) | ' | 4,718,767 | ' | ' | ' | ' | ' |
Conversion of preferred stock | ' | 22 | -18 | -17 | 13 | ' | ' |
Conversion of preferred stock (in shares) | ' | 2,109,090 | -1,813,944 | -1,655,607 | ' | ' | ' |
Stock options exercised | 75 | ' | ' | ' | 75 | ' | ' |
Stock options exercised (in shares) | ' | 30,250 | ' | ' | ' | ' | ' |
Proceeds from the sale of stock - ESPP | 30 | ' | ' | ' | 30 | ' | ' |
Proceeds from the sale of stock - ESPP (in shares) | ' | 13,395 | ' | ' | ' | ' | ' |
RSUs granted (in shares) | ' | 24,777 | ' | ' | ' | ' | ' |
Net loss | -19,335 | ' | ' | ' | ' | ' | -19,335 |
Balance at Sep. 30, 2013 | $32,563 | $211 | ' | $19 | $247,761 | ' | ($215,428) |
Balance (in shares) at Sep. 30, 2013 | ' | 21,070,824 | ' | 1,950,000 | ' | ' | ' |
Statements_of_Stockholders_Equ1
Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2005 | Sep. 30, 2006 |
Series A Preferred stock | Series B Preferred stock | |
Issuance costs of Preferred Stock, Private Placement (in dollars) | $379 | $1,795 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | 118 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' | ' | ' |
Net loss | ($19,335) | ($20,747) | ($10,592) | ($210,368) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' | ' |
Depreciation and amortization | 641 | 725 | 938 | 5,444 |
Founder's compensation contributed to capital | ' | ' | ' | 271 |
Share-based compensation for employees and directors | 1,538 | 1,828 | 4,964 | 29,162 |
Share-based compensation for non-employees | ' | ' | -44 | 2,274 |
Loss on settlement of debt | ' | ' | ' | 627 |
Write-off of capitalized patent expense | ' | 38 | ' | 246 |
Write-off of loan to related party | ' | ' | ' | 41 |
Adjustments to fair value of common stock warrant liability | -1,217 | 1,510 | -12,611 | -11,064 |
(Increase) decrease in: | ' | ' | ' | ' |
Prepaid expenses and other assets | 31 | 111 | -41 | -264 |
Income taxes receivable | 28 | 1 | 81 | -6 |
Grant receivable | 63 | -88 | ' | -25 |
Other receivable | 8 | -8 | 10 | -1 |
Increase (decrease) in: | ' | ' | ' | ' |
Accounts payable | -39 | 63 | -1,767 | 246 |
Income tax payable | -26 | -2 | 58 | 75 |
Accrued expenses and other liabilities | -247 | -128 | 753 | 2,950 |
Total adjustments | 780 | 4,050 | -7,659 | 29,976 |
Net cash used in operating activities | -18,555 | -16,697 | -18,251 | -180,392 |
Cash flows from investing activities: | ' | ' | ' | ' |
Purchase of property and equipment | -118 | -59 | -189 | -6,467 |
Purchase of marketable securities | ' | ' | ' | -31,614 |
Sale of marketable securities | ' | ' | 6,000 | 31,614 |
Capitalized intellectual properties | ' | ' | ' | -298 |
Loan to related party | ' | ' | ' | -41 |
Net cash (used in) provided by investing activities | -118 | -59 | 5,811 | -6,806 |
Cash flows from financing activities: | ' | ' | ' | ' |
Restricted cash | 60 | ' | 90 | ' |
Options exercised | 75 | ' | ' | 1,075 |
Warrants exercised | ' | ' | 50 | 585 |
Net proceeds from employee stock purchase plan | 30 | 27 | 118 | 851 |
Deferred public offering costs | ' | ' | ' | -1,458 |
Stockholder contribution | ' | ' | ' | 1,660 |
Net proceeds from sale of common stock | 19,239 | ' | 25,276 | 180,257 |
Proceeds from bridge financing | ' | ' | ' | 2,575 |
Net proceeds from sale of unregistered common stock - private placement | ' | 8,587 | ' | 8,587 |
Net cash provided by financing activities | 19,404 | 17,105 | 28,219 | 226,979 |
Net increase in cash and cash equivalents | 731 | 349 | 15,779 | 39,781 |
Cash and cash equivalents, beginning of period | 39,050 | 38,701 | 22,922 | ' |
Cash and cash equivalents, end of period | 39,781 | 39,050 | 38,701 | 39,781 |
Cash paid for interest and income taxes was: | ' | ' | ' | ' |
Interest | ' | ' | ' | 9 |
Income taxes | 12 | 20 | ' | 338 |
Non-cash financing and investing activities: | ' | ' | ' | ' |
Warrants issued in connection with registered direct offering | ' | ' | 9,438 | 12,353 |
Warrants issued in connection with unregistered common stock - private placement | ' | 4,832 | ' | 4,832 |
Settlement of debt with Series B preferred stock | ' | ' | ' | 3,202 |
Accrued expenses settled with Series B preferred stock | ' | ' | ' | 150 |
Deemed dividend - warrants | ' | ' | ' | 4,457 |
Accretion of fair value of beneficial charge on preferred stock | ' | ' | ' | 603 |
Conversion of convertible preferred stock to common stock | ' | ' | ' | 68 |
Issuance of restricted stock units to settle accrued bonus | ' | 584 | ' | 584 |
Series A preferred stock 2005 | ' | ' | ' | ' |
Cash flows from financing activities: | ' | ' | ' | ' |
Net proceeds from sale of preferred stock | ' | ' | ' | 2,466 |
Series A preferred stock 2011 | ' | ' | ' | ' |
Cash flows from financing activities: | ' | ' | ' | ' |
Net proceeds from sale of preferred stock | ' | ' | 2,685 | 2,685 |
Series B preferred stock 2006 | ' | ' | ' | ' |
Cash flows from financing activities: | ' | ' | ' | ' |
Net proceeds from sale of preferred stock | ' | ' | ' | 19,205 |
Series B preferred stock 2012 | ' | ' | ' | ' |
Cash flows from financing activities: | ' | ' | ' | ' |
Net proceeds from sale of preferred stock | ' | $8,491 | ' | $8,491 |
Business_and_Basis_of_Presenta
Business and Basis of Presentation | 12 Months Ended |
Sep. 30, 2013 | |
Business and Basis of Presentation [Abstract] | ' |
Business and Basis of Presentation | ' |
1. Business and Basis of Presentation | |
Business | |
Biodel Inc. and its wholly owned subsidiary (collectively, "Biodel" or the "Company", and formerly Global Positioning Group Ltd.) is a development stage specialty pharmaceutical company located in Danbury, Connecticut. The Company was incorporated in the State of Delaware on December 3, 2003 and commenced operations in January 2004. The Company formed a wholly owned subsidiary in the United Kingdom in October 2011 ("Biodel UK Limited"). This subsidiary has been inactive since its inception. | |
The Company focuses on the development and commercialization of innovative treatments for diabetes that may be safer, more effective and more convenient for patients. The Company's develops its product candidates by applying its proprietary formulation technologies to existing drugs in order to improve their therapeutic profiles. The Company's proprietary insulin formulations are designed to be more rapid-acting than the formulations currently available to Type 1 and Type 2 diabetes patients. The Company refers to these as "ultra-rapid-acting" formulations. The Company's glucagon formulations and presentations are designed to be stable at room temperature and are intended for use by caregivers with no medical training as a rescue treatment for diabetes patients experiencing severe hypoglycemia, or very low concentrations of blood glucose. | |
The Company's most advanced ultra-rapid-acting insulin formulation, BIOD-123, combines recombinant human insulin, or RHI, with the Company's proprietary combination of excipients to increase the rate of absorption following injection when compared to other commercially available insulin formulations, including "rapid-acting" mealtime insulin analogs such as Humalog®, marketed by Eli Lilly, Novolog®, marketed by Novo Nordisk and Apidra®, marketed by Sanofi-Aventis. The Company is also using its proprietary excipients to develop ultra-rapid-acting insulin analog-based formulations using either insulin lispro, the active pharmaceutical ingredient in Humalog®, or insulin aspart, the active pharmaceutical ingredient in NovoLog®. | |
In addition the Company also has other products in the development stage. | |
Basis of Presentation | |
The Company is in the development stage, as defined by Financial Accounting Standards Board ("FASB") ASC 915 (prior authoritative literature: Statement of Financial Accounting Standards No. 7), "Accounting and Reporting by Development Stage Enterprises", as its primary activities since incorporation have been establishing its facilities, recruiting personnel, conducting research and development, business development, business and financial planning and raising capital. | |
On June 11, 2012, the Company effected a one-for-four reverse split of its outstanding common stock. All references in these financial statements and accompanying notes to units of common stock or per share amounts are reflective of the reverse split for all periods reported. (See Note 12.) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||
Research and Development Costs | |||||||||||||
The Company is in the business of research and development and, therefore, research and development costs include, but are not limited to, salaries and benefits, lab supplies, preclinical fees, clinical trial and related clinical manufacturing costs, allocated overhead costs and professional service providers. Research and development costs are expensed when incurred. Research and development costs aggregated $13,597, $12,315, and $14,296 for the years ended September 30, 2011, 2012 and 2013, respectively. | |||||||||||||
Government Grants | |||||||||||||
Grants received are recognized as grant income when the grants become receivable, provided there is reasonable assurance that the Company will comply with the conditions attached to the grant and there is reasonable assurance the grant will be received. The Company requests cash funding under approved grants as expenses are incurred (not in advance) and report these receipts on the statement of operations as a separate line item entitled "Government Grants" with the corresponding expenses included in research and development. In July and September 2012, the Company was awarded two National Institutes of Health grants for the development of concentrated ultra-rapid-acting insulin formulation and glucagon formulation, respectively, for use in an artificial pancreas. Both awards are for two years and total approximately $580 each. Work on the grant for the development of concentrated ultra-rapid-acting insulin formulation started in August 2012 and expenses incurred were $327 during the year ended September 30, 2013 and $88 for the year ended September 30, 2012. Work on the grant for the development of novel and stable glucagon formulations for closed loop systems started in January 2013, and expenses incurred were $219 during the year ended September 30, 2013. Corresponding income and receivable were recorded. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and assumptions including, but not limited to, accruals, income taxes payable, forfeiture rate used in the computation of share-based compensation and deferred tax assets. Actual results may differ from those estimates. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
The Company considers currency on hand, demand deposits and all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. As of September 30, 2012 and 2013, the Company had cash and cash equivalents of $39,050 and $39,781, respectively, and they are primarily held in a premium commercial money market account. | |||||||||||||
Restricted Cash | |||||||||||||
Restricted cash was $60 and $0 as of September 30, 2012 and 2013. This amount was held in a money market account with a bank to secure a credit card purchasing agreement utilized to facilitate employee travel and certain ordinary purchases. As of September 30, 2013 the Company canceled the credit card purchasing agreement and the restriction on the cash was lifted. | |||||||||||||
In February 2012, the Company brought action against one of its vendors before the American Arbitration Association in New York relating to disputed fees charged to the Company for inventory storage. As part of the arbitration stipulation, the Company established a $1,500 escrow account and recorded an accrual of $741 toward this claim. During the quarter ended June 30, 2012, the Company paid $500 from the escrow account. On July 30, 2012, the Company received a judgment from the arbitrator stating the Company's final amount due was $55. The remaining escrow balance of $945 was removed from the escrow account and transferred to cash. The remaining accrual of $186 was reversed and recorded in research and development expense during the quarter ended September 30, 2012. | |||||||||||||
Fair Value of Financial Instruments | |||||||||||||
The carrying amounts of the Company's financial instruments, which include cash and cash equivalents and accounts payable, approximate their fair values due to their short term maturities. | |||||||||||||
Pre-Launch Inventory | |||||||||||||
Inventory costs associated with product candidates that have not yet received regulatory approval are capitalized if the Company believes there is probable future commercial use and future economic benefit. If the probability of future commercial use and future economic benefit cannot be reasonably determined, then pre-launch inventory costs associated with such product candidates are expensed as research and development expense during the period the costs are incurred. Because all of its product candidates are in early stages of preclinical or clinical development, the Company currently expenses all purchases of pre-launch inventory as research and development, and expects to continue to do so until it can determine the probability of regulatory approval for the applicable product candidate. | |||||||||||||
For the years ended September 30, 2012 and 2013, the Company expensed $170 and $121, respectively, of costs associated with the purchase of RHI and glucagon as research and development expense after such materials passed quality control inspection by the Company and transfer of title occurred. | |||||||||||||
Intellectual Property | |||||||||||||
Intangible assets consist primarily of capitalized costs associated with the Company's ultra-rapid-acting insulin patents and the purchase of two domain addresses. They are amortized using the straight-line method over twenty years. If the Company determines that a patent will not result in future revenues, the cost related to such patent will be expensed in full on the date of that determination. Intellectual property amortization expense for the years ended September 30, 2011, 2012 and 2013 was $4, $3, and $3, respectively. | |||||||||||||
Property and Equipment | |||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation or amortization. Major improvements are capitalized, while maintenance and repairs are expensed in the period the cost is incurred. Property and equipment are depreciated over their estimated useful lives using the straight-line method. Leasehold improvements are amortized using the straight-line method over their estimated useful lives, or the remaining term of the lease, whichever is shorter. When assets are retired or otherwise disposed of, the assets and related accumulated depreciation are removed from the accounts and resulting gains or losses are included in other income (expense) in the statement of operations. Estimated useful lives for each asset category are as follows: Furniture and fixtures — 7 years; Leasehold improvements — estimated useful life or remaining term of lease, whichever is shorter; Laboratory equipment — 7 years; Manufacturing equipment — 5 years; Device development— 5 years; Facility equipment— 3 years and 7 years; Computer equipment — 5 years; and Computer software — 3 years. | |||||||||||||
Impairment of Long-Lived Assets | |||||||||||||
Whenever events or changes in circumstances indicate that the carrying amounts of a long-lived asset may not be recoverable, the Company reviews these assets for impairment and determines whether adjustments are needed to carrying values. There were no adjustments to the carrying value of long-lived assets at September 30, 2012 and 2013. | |||||||||||||
Warrant Liability | |||||||||||||
The Company applies the provisions of Accounting Standards Codification Topic 480 ("ASC 480") (formerly FASB Staff Position 150-5 (FSP 15-5)), Issuers Accounting under FASB Statement No. 150 for Freestanding Warrants and other Similar Instruments on Shares that are Redeemable or Distinguishing Liabilities from Equities. Pursuant to ASC 480, a freestanding financial instrument (other than outstanding share) that, at inception, embodies an obligation to repurchase the issuer's shares and "requires or may require" the obligation to be settled by transferring assets, qualifies as a liability (if the obligation is conditional, the number of conditions is irrelevant). | |||||||||||||
The Company issued warrants in June 2012 and recorded a liability determined by the Black-Scholes valuation model. The Black-Scholes valuation model was used because the June 2012 warrants do not contain a repricing provision. The Black-Scholes valuation model takes into account, as of the valuation date, factors including the current exercise price, the expected life of the warrant, the current price of the underlying stock and its expected volatility, expected dividends on the stock, and the risk-free interest rate for the term of the warrant. These warrants will be revalued at each reporting period and changes in fair value are recognized currently in the statements of operations under the caption "Adjustment to fair value of common stock warrant liability." | |||||||||||||
The Company issued warrants in May 2011 and recorded a liability determined by the Black-Scholes valuation model. The Black-Scholes valuation model was used because the May 2011 warrants do not contain a repricing provision. These warrants will be revalued at each reporting period and changes in fair value are recognized currently in the statements of operations under the caption "Adjustment to fair value of common stock warrant liability." | |||||||||||||
The Company issued warrants in August 2010 and recorded a liability determined by the Monte Carlo simulation method, which was used because the August 2010 warrants contain a re-pricing provision. The Monte Carlo simulation is a generally accepted statistical method used to generate a defined number of stock price paths in order to develop a reasonable estimate of the range of future expected stock prices of the Company and its peer group and minimize standard error. | |||||||||||||
On December 2, 2011, the unexercised warrants to purchase 589,000 shares of common stock expired. The Company revalued the liability associated with these warrants from September 30, 2011 through the date of expiration and there was no material impact on the statement of operations. The common stock warrant liability associated with these warrants no longer exists. | |||||||||||||
Income Taxes | |||||||||||||
The Company uses the asset and liability method of accounting for deferred income taxes. The provision for income taxes includes income taxes currently payable and those deferred as a result of temporary differences between the financial statement and tax bases of assets and liabilities. A valuation allowance is provided to reduce deferred tax assets to the amount of future tax benefit when it is more likely than not that some portion of the deferred tax assets will not be realized. Projected future taxable income and ongoing tax planning strategies are considered and evaluated when assessing the need for a valuation allowance. Any increase or decrease in a valuation allowance could have a material adverse or beneficial impact on the Company's income tax provision and net income or loss in the period which the determination is made. | |||||||||||||
Concentration of Risks and Uncertainties | |||||||||||||
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. The Company deposits excess cash with major financial institutions in the United States. Balances may exceed the amount of insurance provided on such deposits. The Company believes that its investment policy guideline for its excess cash maintains safety and liquidity through its policies on credit requirements, diversification and investment maturity. | |||||||||||||
The Company has experienced significant operating losses since inception. At September 30, 2013, the Company had a deficit accumulated during the development stage of $215,428. The Company has generated no revenue to date. The Company has funded its operations to date principally from the sale of securities. The Company expects to incur substantial additional operating losses for the next several years and will need to obtain additional financing in order to complete the clinical development of an ultra-rapid-acting insulin or a glucagon rescue product, launch and commercialize the product if it receives regulatory approval, and continue research and development programs. There can be no assurance that such financing will be available or will be at terms acceptable to the Company. | |||||||||||||
The Company is currently developing its first product candidates and has no products that have received regulatory approval. Any products developed by the Company will require approval from the FDA or foreign regulatory agencies prior to commercial sales. There can be no assurance that the Company's products will receive the necessary approvals. If the Company is denied such approvals or such approvals are delayed, it would have a material adverse effect on the Company's future operating results. | |||||||||||||
To achieve profitable operations, the Company must successfully develop, test, manufacture and market products, as well as secure the necessary regulatory approvals. There can be no assurance that any such products can be developed successfully or manufactured at an acceptable cost and with appropriate performance characteristics, or that such products will be successfully marketed. These factors would have a material adverse effect on the Company's future financial results. | |||||||||||||
Stock-Based Compensation | |||||||||||||
In March 2013, the shareholders of the Company approved the amended and restated 2010 Stock Incentive Plan (the "2010 Plan"). Up to 3,750,000 shares of the Company's common stock may be issued pursuant to awards granted under the 2010 Plan, plus 1,540,739 shares of common stock underlying already outstanding awards under the Company's prior plans. As of September 30, 2013, the Company had 1,951,347 shares of common stock subject to outstanding awards. The contractual life of options granted under the 2010 Plan may not exceed seven years. The 2010 Plan uses a "fungible share" concept under which any awards that are not a full-value award will be counted against the share limit as one (1) share for each share of common stock and any award that is a full-value award will be counted against the share limit as 1.5 shares for each one share of common stock. The Company has not made any new awards under any prior equity plans after March 2, 2010, the effective date the 2010 Plan was approved by the Company's stockholders. The 2010 Plan replaces the 2004 Stock Incentive Plan and 2005 Non-Employee Directors Stock Option Plan. | |||||||||||||
The Company uses the Black-Scholes pricing model to calculate the fair value of stock options. The expected life for grants was calculated in accordance with the simplified method described in the Securities and Exchange Commission Staff Accounting Bulletin (SAB) Topic 14.D.2 in accordance with SAB No. 110. | |||||||||||||
The risk-free rate of interest for periods within the contractual life of the stock option award is based on the yield of U.S. Treasury strips on the date the award is granted with a maturity equal to the expected term of the award. The Company estimates forfeitures based on actual forfeitures during its limited history. Additionally, the Company has assumed that dividends will not be paid. | |||||||||||||
For stock options granted to non-employees, the Company measures fair value of the equity instruments utilizing the Black-Scholes valuation model, if that value is more reliably measurable than the fair value of the consideration or service received. The fair value of these instruments is periodically revalued as the options vest, and is recognized as expense over the related period of service or vesting period, whichever is longer. The total cost expensed (credited) for options granted to non-employees for the years ended September 30, 2011, 2012 and 2013 was $(44), $0, and $0, respectively. | |||||||||||||
The Company expenses ratably over the vesting period the cost of the stock options granted to employees and directors. The total compensation cost for the years ended September 30, 2011, 2012, and 2013 was $4,964, $1,828, and $1,538 respectively. At September 30, 2013, the total compensation cost related to non-vested options not yet recognized was $871, which will be recognized over the next three years assuming the employees complete their service period for vesting of the options. The Black-Scholes valuation model assumptions are as follows and were determined as discussed above: | |||||||||||||
Year Ended September 30, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Expected life (in years) | 3.77 - 5.25 | 3.0 - 4.75 | 2.39-4.75 | ||||||||||
Expected volatility | 65 - 72% | 58 - 76% | 80-96% | ||||||||||
Expected dividend yield | 0% | 0% | 0% | ||||||||||
Risk-free interest rate | 0.75 - 1.97% | 0.39 - 0.91% | 0.25-0.75% | ||||||||||
Weighted-average grant date fair value | $ | 6.36 | $ | 2.54 | $ | 2.43 | |||||||
Participating Securities | |||||||||||||
In June 2008 the Financial Accounting Standards Board ("FASB") issued ASC 260-10-55 Earnings Per Share — Overall (formerly Financial Statement Position Emerging Issues Task Force 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities) ("ASC 260-10-55"). ASC 260-10-55 provides that securities and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. | |||||||||||||
Warrant Liability — Given that the warrant holders will participate fully on any dividends or dividend equivalents, the Company determined that the warrants are participating securities and therefore are subject to ASC 260-10-55. These securities were excluded from the per share calculation for all years since their inclusion would be anti-dilutive. | |||||||||||||
Restricted Stock Units — Given that the holders of Restricted Stock Unit awards ("RSUs") will only receive dividends or dividend equivalents on RSUs that have vested prior to the Company declaring dividends as well as forfeiting their rights to receive dividends or dividend equivalents on any unvested portion, the Company determined that the RSUs are non-participating securities and therefore are not subject to ASC 260-10-55. | |||||||||||||
Reclassifications: | |||||||||||||
Certain items in the prior year's financial statements have been reclassified to conform with the current year's presentation. |
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Fair Value Measurement [Abstract] | ' | ||||||||||||||||||||||||||||||||
Fair Value Measurement | ' | ||||||||||||||||||||||||||||||||
3. Fair Value Measurement | |||||||||||||||||||||||||||||||||
ASC Topic 820 ("ASC 820"), originally issued as SFAS No. 157, Fair Value Measurements) applies under other accounting pronouncements that require or permit fair value measurements, the FASB having previously concluded in those accounting pronouncements that fair value is the relevant measurement attribute. Accordingly, ASC 820 does not require any new fair value measurements. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. The three levels of inputs used are as follows: | |||||||||||||||||||||||||||||||||
Level 1 — Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||||||||||||||||
Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||||||||||||||||||
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | |||||||||||||||||||||||||||||||||
As of September 30, 2012 and 2013, the Company had assets and liabilities that fell under the scope of ASC 820. The fair value of the Company's warrant liability was determined by the Monte Carlo simulation method for the warrants issued in connection with the Company's August 2010 financing and by the Black-Scholes valuation model for the warrants issued in connection with the Company's May 2011 and June 2012 financings. The Monte Carlo simulation method is a generally accepted statistical method used to generate a defined number of stock price paths in order to develop a reasonable estimate of the range of future expected stock prices of the Company and its peer group and minimize standard error. The Black-Scholes valuation model takes into account, as of the valuation date, factors including the current exercise price, the expected life of the warrant, the current price of the underlying stock and its expected volatility, expected dividends on the stock, and the risk-free interest rate for the term of the warrant. Accordingly, the Company's fair value measurements of its warrant liability is classified as a Level 3 input. | |||||||||||||||||||||||||||||||||
The fair value of the Company's financial assets and liabilities carried at fair value and measured on a recurring basis are as follows: | |||||||||||||||||||||||||||||||||
Description | Fair Value at | Quoted Prices in | Significant | Significant | |||||||||||||||||||||||||||||
September 30, | Active Markets for | Other | Unobservable | ||||||||||||||||||||||||||||||
2013 | Identical Assets | Observable | Inputs | ||||||||||||||||||||||||||||||
(Level 1) | Market Inputs | (Level 3) | |||||||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 39,781 | $ | 39,781 | — | — | |||||||||||||||||||||||||||
Subtotal | 39,781 | 39,781 | — | — | |||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Common stock warrant liability | (6,121 | ) | — | — | (6,121 | ) | |||||||||||||||||||||||||||
Subtotal | (6,121 | ) | — | — | (6,121 | ) | |||||||||||||||||||||||||||
Total | $ | 33,660 | $ | 39,781 | $ | — | $ | (6,121 | ) | ||||||||||||||||||||||||
Description | Fair Value at | Quoted Prices in | Significant | Significant | |||||||||||||||||||||||||||||
September 30, | Active Markets for | Other | Unobservable | ||||||||||||||||||||||||||||||
2012 | Identical Assets | Observable | Inputs | ||||||||||||||||||||||||||||||
(Level 1) | Market Inputs | (Level 3) | |||||||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 39,050 | $ | 39,050 | $ | — | $ | — | |||||||||||||||||||||||||
Restricted cash | 60 | 60 | — | — | |||||||||||||||||||||||||||||
Subtotal | 39,110 | 39,110 | — | — | |||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Common stock warrant liability | (7,338 | ) | — | — | (7,338 | ) | |||||||||||||||||||||||||||
Subtotal | (7,338 | ) | — | — | (7,338 | ) | |||||||||||||||||||||||||||
Total | $ | 31,772 | $ | 39,110 | $ | — | $ | (7,338 | ) | ||||||||||||||||||||||||
The Company recognizes transfers into and out of the levels indicated above on the actual date of the event or change in circumstances that caused the transfer of change. All changes within Level 3 can be found in the following Level 3 reconciliation table: | |||||||||||||||||||||||||||||||||
Balance at September 30, 2009 | $ | — | |||||||||||||||||||||||||||||||
August 2010 warrant — initial fair value at the date of issuance | (2,915 | ) | |||||||||||||||||||||||||||||||
Increase in fair value | (1,254 | ) | |||||||||||||||||||||||||||||||
Balance at September 30, 2010 | (4,169 | ) | |||||||||||||||||||||||||||||||
May 2011 warrant — initial fair value at the date of issuance | (9,438 | ) | |||||||||||||||||||||||||||||||
Exercise of warrants | 29 | ||||||||||||||||||||||||||||||||
Decrease in fair value | 12,582 | ||||||||||||||||||||||||||||||||
Balance at September 30, 2011 | (996 | ) | |||||||||||||||||||||||||||||||
June 2012 warrant — initial fair value at the date of issuance | (4,832 | ) | |||||||||||||||||||||||||||||||
Increase in fair value | (1,510 | ) | |||||||||||||||||||||||||||||||
Balance at September 30, 2012 | (7,338 | ) | |||||||||||||||||||||||||||||||
Decrease in fair value | 1,217 | ||||||||||||||||||||||||||||||||
Balance at September 30, 2013 | $ | (6,121 | ) | ||||||||||||||||||||||||||||||
The following table presents the Company's liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of September 30, 2012 and September 30, 2013: | |||||||||||||||||||||||||||||||||
Description | Quoted | Significant | Significant | Balance | Quoted | Significant | Significant | Balance | |||||||||||||||||||||||||
Prices in | other | Unobservable | as of | Prices in | other | Unobservable | as of | ||||||||||||||||||||||||||
Active | Observable | Inputs | September 30, | Active | Observable | Inputs | September 30, | ||||||||||||||||||||||||||
Markets for | Inputs | (Level 3) | 2012 | Markets for | Inputs | (Level 3) | 2013 | ||||||||||||||||||||||||||
identical | (Level 2) | identical | (Level 2) | ||||||||||||||||||||||||||||||
Assets and | Assets and | ||||||||||||||||||||||||||||||||
Liabilities | Liabilities | ||||||||||||||||||||||||||||||||
(Level 1) | (Level 1) | ||||||||||||||||||||||||||||||||
Derivative liabilities related to Warrants | $ | — | $ | — | $ | 7,338 | $ | 7,338 | $ | — | $ | — | $ | 6,121 | $ | 6,121 | |||||||||||||||||
The following table sets forth a summary of changes in the fair value of the Company's Level 3 liabilities for the twelve months ended September 30, 2013 and September 30, 2012: | |||||||||||||||||||||||||||||||||
Description | Balance at | Fair Value of | Unrealized | Balance | Fair Value of | Unrealized | Balance as of | ||||||||||||||||||||||||||
September 30, | warrants | (gains) | as of | warrants | (gains) or | September 30, | |||||||||||||||||||||||||||
2011 | upon | or losses | September 30, | upon | losses | 2013 | |||||||||||||||||||||||||||
issuance | 2012 | issuance | |||||||||||||||||||||||||||||||
Derivative liabilities related to Warrants | $ | 996 | $ | 4,832 | $ | 1,510 | $ | 7,338 | $ | (1,217 | ) | $ | 6,121 | ||||||||||||||||||||
The unrealized gains or losses on the derivative liabilities are recorded as a change in fair value of derivative liabilities in the Company's statement of operations. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. At each reporting period, the Company reviews the assets and liabilities that are subject to ASC Topic 815-40. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs or instruments which trade infrequently and therefore have little or no price transparency are classified as Level 3. The fair value of cash and cash equivalents as of September 30, 2013 and 2012 are $39,781 and $39,050, respectively, and the fair value of accounts payable as of September 30, 2013 and 2012 is $246 and $285, respectively, which approximates Net Book Value due to the short term. |
Net_Loss_per_Share
Net Loss per Share | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Net Loss Per Share [Abstract] | ' | ||||||||||||
Net Loss per Share | ' | ||||||||||||
4. Net Loss per Share | |||||||||||||
Net loss per share information is determined using the two-class method, which includes the weighted-average number of common shares outstanding during the period and other securities that participate in dividends ("participating securities"). The Company considers the outstanding warrants participating securities because they include rights to participate in dividends with the common stock on a one-for-one basis. In applying the two-class method, earnings are allocated to both common stock shares and warrants based on their respective weighted-average shares outstanding for the period. Since losses are not allocated to the participating securities, the two-class method results in the same loss per common share calculated using the basic method for the periods presented in these financial statements. | |||||||||||||
Basic and diluted net loss per share has been calculated by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding during the period. All potentially dilutive common shares have been excluded from the calculation of weighted average common shares outstanding since their inclusion would be anti-dilutive. | |||||||||||||
The amount of options, warrants, shares of preferred stock and restricted stock units excluded are as follows: | |||||||||||||
Year Ended September 30, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Common shares issuable upon conversion of Series A Preferred Stock | 453,486 | 453,486 | — | ||||||||||
Common shares issuable upon conversion of Series B Preferred Stock | — | 3,605,607 | 1,950,000 | ||||||||||
Common shares underlying warrants issued for common stock | 2,875,647 | 5,006,398 | 5,006,398 | ||||||||||
Stock options | 1,365,350 | 1,546,454 | 1,920,051 | ||||||||||
Restricted stock units | 121,677 | 68,153 | 31,296 |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Property and Equipment [Abstract] | ' | ||||||||||||||
Property and Equipment | ' | ||||||||||||||
5. Property and Equipment | |||||||||||||||
Property and equipment consists of the following: | |||||||||||||||
September 30, | |||||||||||||||
2012 | 2013 | ||||||||||||||
Furniture and fixtures | $ | 324 | $ | 324 | |||||||||||
Leasehold improvements | 1,548 | 1,548 | |||||||||||||
Laboratory equipment | 1,945 | 2,062 | |||||||||||||
Manufacturing equipment | 655 | 655 | |||||||||||||
Facility equipment | 65 | 65 | |||||||||||||
Computer equipment and other | 1,308 | 1,308 | |||||||||||||
Sub-Total | 5,845 | 5,962 | |||||||||||||
Less: Accumulated depreciation and amortization | 4,293 | 4,931 | |||||||||||||
Total | $ | 1,552 | $ | 1,031 | |||||||||||
Depreciation expense for the years ended September 30, 2011, 2012, and 2013 was $934, $722, and $638, respectively. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
6. Related Party Transactions | |
The following is a description of material transactions, other than compensation arrangements, since the Company's incorporation on December 3, 2003 to which the Company has been a party and in which any of its directors, executive officers or persons who it knows held more than five percent of any class of capital stock, including their immediate family members who had or will have a direct or indirect material interest. The Company believes that the terms obtained orconsideration paid or received, as applicable, in connection with the transactions described below werecomparable to terms available or the amounts that would have been paid or received, as applicable, in arm's-length transactions. | |
Issuance of Series B Convertible Preferred Stock | |
On July 19, 2006, the Company issued and sold 38,071 shares of Series B convertible preferred stock (see Note 10) and a warrant to purchase 20,496 shares of common stock to its Chief Executive Officer in exchange for a $150 bonus that was earned by him during the calendar year ended December 31, 2005 but voluntarily deferred. At September 30, 2005, the Company accrued $113 of the bonus and the balance of $37 was expensed in fiscal 2006. The full amount of the accrued bonus was exchanged for Series B convertible preferred stock on July 19, 2006. | |
In connection with the issuance of the Series B convertible preferred stock, the Company retained MSI to serve as placement agent pursuant to an amendment to the Letter Agreement. MSI was paid (a) an aggregate commission of $350 from the sale of the Series B convertible preferred stock, (b) a warrant to purchase 126,903 shares of Series B convertible preferred stock and (c) a warrant to purchase 68,322 shares of common stock. On July 19, 2006, the Company also sold and issued to a director 12,690 shares of Series B convertible preferred stock and a warrant to purchase 6,832 shares of common stock. At the completion of the Series B preferred stock financing, the lead investor remitted the monies for its investment in the Series B Round net of offering-related expenses incurred by the investor group for which the Company was responsible. Total offering expenses were approximately $2,000, of which $1,470 was commissions for the placement of the offering. A director of the Company had arranged to pay for an investment in the Series B preferred stock financing (the "Investment") utilizing a portion of commissions due. Since the monies due for the commission were not received by the Company, the purchase price of the Investment could not be deducted from the monies received. The fair values of the warrants for common stock were $126 and $13 and were computed using the Black-Scholes valuation model using the following assumptions: term of 3.5 years; volatility rate of 50%; risk free rate of 5.05% and a dividend yield of 0.0%. The fair value of the warrants for preferred stock was $167 and was computed using the Black-Scholes valuation model using the following assumptions: term of 3.5 years; volatility rate of 50%; risk free rate of 4.70% and a dividend yield of 0.0%. These amounts were treated as cost of raising capital. | |
Commitments
Commitments | 12 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments [Abstract] | ' | ||||
Commitments | ' | ||||
7. Commitments | |||||
Chief Executive Officer Employment Agreement | |||||
On March 30, 2010, the Company announced the appointment of Errol B. De Souza, Ph.D., as the Company's President, Chief Executive Officer and a Director. In connection with his appointment, Dr. De Souza signed an employment agreement, dated March 26, 2010, setting forth the terms of his employment. The agreement provides for an initial term of employment for the period from March 29, 2010 to March 28, 2014 and it continues for successive one-year terms unless the agreement is terminated by either party on 120 days prior written notice in accordance with the terms of the agreement. The agreement provides for an annual salary of $450 and eligibility for a target bonus of 50% of the annual salary. In addition, Dr. De Souza was granted options to purchase 175,000 Shares of the Company's common stock pursuant to the Company's 2010 Plan. These options vest over a four-year period, with 25% vesting on the first anniversary of the grant date and the rest vesting in equal monthly amounts over the next three years. | |||||
The Company may terminate the agreement with or without cause. Dr. De Souza will not be entitled to severance benefits if the Company terminates his employment for cause, or if he terminates his employment without good reason, as defined in the agreement. If the Company terminates Dr. De Souza's employment without cause, or he terminates his employment with the Company for good reason, he is entitled to: | |||||
•two times his then current salary, plus two times his target annual bonus for the fiscal year in which he is terminated, plus the pro rata amount of his target annual bonus for the fiscal year in which he is terminated; | |||||
•COBRA benefits until the earlier of the end of the 24th month after the date his employment with the Company ends or the date his COBRA coverage expires; | |||||
•24 months of acceleration of his outstanding equity compensation awards; and | |||||
•full vesting of his outstanding equity compensation awards, if the Company terminates his employment without cause, or he resigns within 12 months following a change in control, as defined in the agreement. | |||||
Certain employees have agreements which provide for payouts in the event that the Company consummates a change in control. The amount of compensation due as a result of this event is approximately $4,337, as set forth in the agreements. These employees are also entitled to full vesting of their outstanding equity awards. These agreements also provide for routine severance compensation. As of September 30, 2013 and September 30, 2012, no amounts have been accrued. | |||||
Former Chief Scientific Officer General Release | |||||
Effective December 14, 2010, Dr. Solomon Steiner, the Company's former Chief Scientific Officer, retired from all his management positions with the Company. On the same date, the Company and Dr. Steiner executed a general release agreement. Dr. Steiner is therefore entitled to receive the severance benefits set forth in his employment agreement with the Company that were conditioned upon his signing the release. We recorded a charge of $1,360 for salary, bonus and benefits continuation for twenty-four months and an option acceleration modification charge of $7 in the three months ended December 31, 2010. As of December 31, 2012, the Company has paid the total of $1,360 in salary, bonus and benefits continuation per the terms of the agreement. | |||||
Leases | |||||
As of September 30, 2013, the Company leased three facilities in Danbury, Connecticut. | |||||
The Company renewed its lease for laboratory space for one year on November 6, 2013. This lease provides for annual basic lease payments from February 1, 2014 through January 31, 2015 of $68, plus the annual Consumers Price Index ("CPI") increase for October, not to exceed 6%, plus operating expenses. | |||||
The Company renewed its lease agreement for additional office space adjacent to its laboratory space for one year on November 6, 2013. This lease provides for annual basic lease payments from February 1, 2014 through January 31, 2015 of $3, plus the annual CPI increase for October, not to exceed 6%, plus operating expenses. | |||||
The Company renewed its lease for its corporate office for five years on November 6, 2013. This lease provides for annual basic lease payments from August 1, 2014 through July 31, 2019 of $388, plus the annual CPI increase for May, not to exceed 6%, plus operating expenses. Escalations shall be on an annual basis from August 1, 2015 through July 31, 2019, and will be calculated using the preceding year's basic lease payment, plus the annual CPI increase for May, not to exceed 6%. | |||||
Lease expense for the years ended September 2011, 2012, and 2013 was $633, $636, and $646, respectively. | |||||
Minimum lease payments under these agreements as of September 30, 2013, as well as equipment leases subsequently entered into, are as follows: | |||||
Years Ending September 30, | |||||
2014 | $ | 678 | |||
2015 | 588 | ||||
2016 | 555 | ||||
2017 | 565 | ||||
2018 | 580 | ||||
2019 | 493 | ||||
Total | $ | 3,459 | |||
Purchase Commitments | |||||
The Company contracted with N.V. Organon, a global producer of RHI, to supply the Company with all of the RHI that the Company will need for testing and manufacturing of the Company's product candidates. In July 2011, the Company executed an amendment with N.V. Organon, which extends the term of the existing supply agreement to June 30, 2018 and releases the Company from any purchase commitments until the third calendar quarter of 2014. These commitments commence in the third calendar quarter of 2014 and extend through the second calendar quarter of 2018 for a total purchase commitment of approximately 160 kilograms of RHI. Both parties have the right to terminate the agreement with six months notice, with the Company having the option to purchase significant additional quantities if the supplier terminates the agreement prior to June 30, 2018. As of September 30, 2013, the Company had purchase commitments of approximately $18,787 associated with the signing of the renewed contract with N.V. Organon. | |||||
Commercial Supply Agreement with Bachem Americas | |||||
The Company has entered into a commercial supply agreement for the supply of glucagon with Bachem Americas, a supplier of glucagon. The Company is obligated to purchase certain quantities of glucagon pursuant to a rolling forecast submitted by the Company under this agreement. | |||||
Customization and Commercial Supply Agreement with Unilife Medical Solutions, Inc. | |||||
The Company has entered into a customization and commercial supply agreement with Unilife Medical Solutions, Inc. ("Unilife"), a wholly owned subsidiary of Unilife Corporation, a company which designs, develops and manufactures advanced drug delivery devices. The agreement obligates Unilife to develop and supply dual-chamber reconstitution devices to be used with the Company's glucagon rescue product candidate. The Company is obligated to make payments to Unilife on the achievement of certain development milestones, including a payment of $700 upon the delivery of devices meeting a target profile to be approved by both parties. | |||||
Other Commitments | |||||
The Company has entered into certain licensing and collaboration agreements for products currently under development. The Company may be obligated in future periods to make additional payments, which would become due and payable only upon the achievement of certain research and development, regulatory, and approval milestones. The specific timing of such milestones cannot be predicted and depend upon future discretionary research and clinical developments, as well as, regulatory agency actions. Further, under the terms of certain agreements the Company may be obligated to pay commercial milestones contingent upon the realization of sales revenues and sublicense revenues. Due to the long range nature of such commercial milestones, they are neither probable at this time nor predictable, and consequently are not considered contingent milestone payment amounts. | |||||
Years Ending September 30, | |||||
2014 | $ | 1,702 | |||
2015 | 4,929 | ||||
2016 | 4,654 | ||||
2017 | 4,792 | ||||
2018 | 3,677 | ||||
Total | $ | 19,754 |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
8. Income Taxes | |||||||||||||
The Company files its tax returns on a fiscal year basis. For the years ended September 30, 2011, 2012, and 2013, the Company paid only state taxes. | |||||||||||||
The provision for income taxes is as follows: | |||||||||||||
Year Ended | |||||||||||||
September 30, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Current expense | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | 41 | 18 | 15 | ||||||||||
Tax provision | $ | 41 | $ | 18 | $ | 15 | |||||||
The following reconciles the amount of tax expense at the federal statutory rate to the tax provision (benefit) in operations: | |||||||||||||
Year Ended | |||||||||||||
September 30, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Federal statutory rate | 34 | % | 34 | % | 34 | % | |||||||
Federal taxes at statutory rate | $ | (3,587 | ) | $ | (7,028 | ) | (6,569 | ) | |||||
Tax expense on permanent differences (a) | (2,631 | ) | 1,137 | 163 | |||||||||
Tax benefit on research and business credits | — | — | — | ||||||||||
State taxes, net of federal tax effect | 19 | 12 | 10 | ||||||||||
State benefit, net operating loss | (163 | ) | (312 | ) | — | ||||||||
Valuation allowance increase (b) | 6,382 | 6,164 | 6,439 | ||||||||||
Connecticut research and development refund | — | — | — | ||||||||||
Reserve for uncertain tax positions | — | — | — | ||||||||||
Other | 21 | 45 | (28 | ) | |||||||||
Actual tax provision | $ | 41 | $ | 18 | $ | 15 | |||||||
____________ | |||||||||||||
(a) Permanent differences were derived from share based compensation and adjustments to common stock warrant liability. | |||||||||||||
(b) Net of the Section 382 Adjustment. | |||||||||||||
The following table summarized the activity related to the Company's liabilities for uncertain tax positions: | |||||||||||||
Year Ended | |||||||||||||
September 30, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Balance, beginning of year | $ | 86 | $ | 75 | $ | 75 | |||||||
Increase related to current year tax position | — | — | — | ||||||||||
Increase related to prior year's tax position | — | — | — | ||||||||||
Decrease related to prior year's tax position | (11 | ) | — | — | |||||||||
Balance, at end of year | $ | 75 | $ | 75 | $ | 75 | |||||||
The Company files U.S. federal and state tax returns and has determined that its major tax jurisdictions are the United States and Connecticut. The tax years through 2011 remain open due to net operating loss and are subject to examination by the appropriate governmental agencies in the United States and Connecticut carry-forwards. | |||||||||||||
As of September 30, 2013, the Company had net operating loss ("NOL") carry-forwards of approximately $57,628 (net of Section 382 limitation discussed below) for U.S. federal tax purposes and $112,240 for state tax purposes. These loss carry-forwards expire between 2024 and 2032. To the extent these net operating loss carry-forwards are available, the Company intends to use them to reduce the corporate income tax liability associated with its operations. | |||||||||||||
The ability of the Company to utilize its NOL carry-forwards to reduce future taxable income is subject to various limitations under the Internal Revenue Code Section 382 ("Section 382"). The utilization of such carry-forwards may be limited upon the occurrence of certain ownership changes, including the purchase or sale of stock by 5% shareholders and the offering of stock by the Company during any three-year period resulting in an aggregate change of more than 50% in the beneficial ownership of the Company. In the event of an ownership change, Section 382 imposes an annual limitation on the amount of a Company's taxable income that can be offset by these carry-forwards. As of September 30, 2011, the Company completed a study of the impact of Section 382 limitation on future payments and determined that the statutory provisions limited the Company's ability to realize future tax benefits. Accordingly, the Company decreased federal net operating loss carry-forwards by approximately $55,929 and federal research and development credit carry-forwards by $1,817. | |||||||||||||
The Company also has state research and development credit carry-forwards of approximately $339, which expire commencing in fiscal 2022. | |||||||||||||
The major components of deferred tax assets and valuation allowances and deferred tax liabilities at September 30, 2012 and 2013 are as follows: | |||||||||||||
September 30, | |||||||||||||
2012 | 2013 | ||||||||||||
Deferred Tax Assets | |||||||||||||
Net operating losses | $ | 24,969 | $ | 25,149 | |||||||||
Capitalized expense | 21,907 | 28,913 | |||||||||||
Research and development credits | 477 | 224 | |||||||||||
Depreciation of fixed assets | 51 | 445 | |||||||||||
Other | 453 | 283 | |||||||||||
Total deferred tax asset | 47,857 | 55,014 | |||||||||||
Valuation Allowance | (47,857 | ) | (55,014 | ) | |||||||||
Net Deferred Tax Assets | $ | — | $ | — | |||||||||
As the Company has not yet achieved profitable operation, management does not believe that it is more likely than not that the tax benefits as of September 30, 2013 will be realized and therefore has recorded a valuation allowance against its deferred tax assets. |
Financings
Financings | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Financing Transactions [Abstract] | ' | ||||||||
Financings | ' | ||||||||
9. Financings | |||||||||
June 2013 Public Offering | |||||||||
On June 24, 2013, the Company completed an underwritten public offering of 4,482,760 shares of its common stock at a price to the public of $4.35 per share. On July 22, 2013, the Company issued 236,007 additional shares of common stock, at the public offering price of $4.35 per share, in connection with the underwriters' exercise of a portion of their over-allotment option. The Company received net proceeds from this offering, after deducting underwriting discounts, commissions and expenses, of $19.2 million. | |||||||||
June 2012 Private Placement | |||||||||
In June 2012, the Company completed a private placement (the "2012 Private Placement") of an aggregate of 4,250,020 shares of the Company's common stock, 3,605,607 shares of the Company's Series B preferred stock and warrants to purchase an aggregate of 2,749,469 shares of common stock at an exercise price of $2.66 per share. For each unit, consisting of either a share of common stock or Series B preferred stock and a warrant to purchase 0.35 of a share of common stock, the purchasers in the June 2012 Private Placement paid a negotiated price of $2.355. The warrants are immediately exercisable and will expire on June 26, 2017, five years from the original issuance date of June 27, 2012. The Company received net proceeds, after deducting placement agents' fees and other transaction expenses, of approximately $17,100 from the 2012 Private Placement. | |||||||||
Each share of Series B preferred stock is convertible into one share of the Company's common stock at any time at the option of the holder, except that the securities purchase agreement that the Company entered into in connection with the 2012 Private Placement (the "Securities Purchase Agreement") provides that a holder will be prohibited from converting shares of Series B preferred stock into shares of common stock if, as a result of such conversion, such holder, together with its affiliates, would beneficially own more than 9.98% of the total number of shares of common stock then issued and outstanding. In the event of the Company's liquidation, dissolution or winding up, holders of the Series B preferred stock will receive a payment equal to $0.01 per share of Series B preferred stock before any proceeds are distributed to the holders of common stock. After the payment of this preferential amount, and subject to the rights of holders of any class or series of capital stock specifically ranking by its terms senior to the Series B preferred stock, holders of Series B preferred stock and holders of the Company's Series A preferred stock will participate ratably in the distribution of any remaining assets with the common stock and any other class or series of capital stock that participates with the common stock in such distributions. Shares of Series B preferred stock will generally have no voting rights, except as required by law and except that the consent of the holders of a majority of the outstanding Series B preferred stock will be required to amend the terms of the Series B preferred stock. Holders of Series B preferred stock are entitled to receive, and the Company is required to pay, dividends on shares of the Series B preferred stock equal (on an as-if-converted-to-common-stock basis) to and in the same form as dividends (other than dividends in the form of common stock) actually paid on shares of the common stock when, as and if such dividends (other than dividends in the form of common stock) are paid on shares of the common stock. | |||||||||
As required by the Securities Purchase Agreement, the Company filed a Registration Statement on Form S-3 (the "Registration Statement") with the Securities and Exchange Commission (the "SEC") on July 27, 2012, which was within 30 days after the closing of the 2012 Private Placement. The Registration Statement, which was declared effective on August 13, 2012, registers the resale of the shares of common stock and Series B preferred stock issued and sold in the 2012 Private Placement, the shares of common stock issuable upon conversion of the Series B preferred stock issued and sold in the 2012 Private Placement, and the shares of common stock issuable upon exercise of the warrants issued and sold in the 2012 Private Placement. Pursuant to the terms of the Securities Purchase Agreement, the Company agreed to pay liquidated damages to the purchasers in the 2012 Private Placement if, after effectiveness of the Registration Statement and subject to certain specified exceptions, the Company suspends the use of the Registration Statement or the Registration Statement ceases to remain continuously effective as to all the securities for which it is required to be effective (each such event, a "Registration Default"). Subject to specified exceptions, for each 30-day period or portion thereof during which a Registration Default remains uncured, the Company is obligated to pay liquidated damages to each purchaser in cash in an amount equal to 1.0% of the aggregate purchase price paid by each such purchaser in the 2012 Private Placement, up to a maximum of 8.0% of such aggregate purchase price. As of the date of these financial statements, the Company does not believe that it is probable that it will be obligated to pay any such liquidated damages. Accordingly, the Company has not established an accrual for liquidated damages. | |||||||||
In the event that the Company enters into a merger or change of control transaction, the holders of the warrants issued in the 2012 Private Placement will be entitled to receive consideration as if they had exercised the warrants immediately prior to such transaction, or they may require the Company to purchase the unexercised warrants at the Black-Scholes value (as defined in the warrant) of the warrant on the date of such transaction. The holders have up to 30 days following any such transaction to exercise this right. As a result of this provision, the Company recognizes the warrants as liabilities at their fair value on each reporting date. | |||||||||
During the year ended September 30, 2013, the Company recorded an adjustment to fair value of common stock warrant liability of $675, within Other (income) expense, to reflect the decrease in the valuation of the warrants from September 30, 2012 to September 30, 2013. At September 30, 2013, the fair value of the warrant liability utilizing the Black-Scholes valuation model was approximately $4,958. | |||||||||
The following summarizes the changes in value of the warrant liability from the date of issuance through September 30, 2013: | |||||||||
$ | |||||||||
Balance at September 30, 2011 | $ | — | |||||||
Initial fair value, at the date of issuance | 4,832 | ||||||||
Increase in fair value | 801 | ||||||||
Balance at September 30, 2012 | 5,633 | ||||||||
Decrease in fair value | (675 | ) | |||||||
Balance at September 30, 2013 | $ | 4,958 | |||||||
May 2011 Registered Direct Offering | |||||||||
In May 2011, the Company completed a registered direct offering of an aggregate of 3,018,736 shares of the Company's common stock, 453,486 shares of the Company's Series A preferred stock and warrants to purchase 2,256,929 shares of the Company's common stock. The shares and warrants were sold in units consisting of (i) one share of common stock and (ii) one warrant to purchase 0.1625 of a share of common stock, at an exercise price of $9.92 per share of the Company's common stock. However, one investor also purchased units consisting of one share of Series A preferred stock and a warrant to purchase 0.1625 of a share of common stock. No fractional warrants were issued. Each unit was sold at a price of $8.64 per unit. These units were not issued or certificated. The shares and warrants were immediately separated. The warrants will expire on May 17, 2016, five years from the issuance date of May 18, 2011. The Company received net proceeds, after deducting placement agent fees and other offering expenses, of approximately $28.0 million from this financing. | |||||||||
Each share of Series A preferred stock is convertible into one quarter of a share of the Company's common stock at any time at the option of the holder, provided that the holder will be prohibited from converting the shares of Series A preferred stock into shares of the Company's common stock if, as a result of such conversion, the holder, together with its affiliates, would beneficially own more than 9.98% of the total number of shares of the Company's common stock then issued and outstanding. In the event of the Company's liquidation, dissolution or winding up, holders of the Series A preferred stock will receive a payment equal to $0.01 per share of Series A preferred stock before any proceeds are distributed to the holders of the Company's common stock. After the payment of this preferential amount, and subject to the rights of holders of any class or series of capital stock specifically ranking by its terms senior to the Series A preferred stock, holders of Series A preferred stock will participate ratably in the distribution of any remaining assets with the Company's common stock and any other class or series of capital stock that participates with the common stock in such distributions. Shares of Series A preferred stock will generally have no voting rights, except as required by law and except that the consent of the holders of a majority of the outstanding Series A preferred stock will be required to amend the terms of the Series A preferred stock. The Series A preferred stock will not be entitled to receive any dividends, unless and until specifically declared by the Company's board of directors. | |||||||||
In the event that the Company enters into a merger or change of control transaction, the holders of the warrants issued in the May 2011 financing will be entitled to receive consideration as if they had exercised the warrant immediately prior to such transaction, or they may require the Company to purchase the unexercised warrants at the Black-Scholes value (as defined in the warrant) of the warrant on the date of such transaction. As per the terms of the warrants, the holders have up to 30 days following any such transaction to exercise this right. As a result of this provision, the Company recognizes the warrants as liabilities at their fair value on each reporting date. | |||||||||
The Company's warrant liability is marked-to-market each reporting period with the change in fair value recorded as a gain or loss within Other Expense ("Adjustment to fair value of common stock warrant liability"), until the warrants are exercised, expire or other facts and circumstances lead the warrant liability to be reclassified as an equity instrument. Because the warrants issued in the May 2011 financing do not contain a re-pricing provision, the Company is using the Black-Scholes valuation model to estimate the fair value of the warrants. Using this model, the Company recorded an initial warrant liability of $9,438 as of May 18, 2011 (the warrant issuance date). The significant assumptions of the model were warrants and common stock outstanding, remaining terms of the warrants, the per stock price of $2.06, a risk-free rate of 1.89% and expected volatility rate of 75%. | |||||||||
During the year ended September 30, 2013, the Company recorded an adjustment to fair value of common stock warrant liability of $542, within Other (income) expense, to reflect the decrease in the valuation of the warrants from September 30, 2012 to September 30, 2013. At September 30, 2013, the fair value of the warrant liability determined utilizing the Black-Scholes valuation model was approximately $1,163.The following summarizes the changes in value of the warrant liability from the date of issuance through September 30, 2013: | |||||||||
Balance at September 30, 2010 | $ | — | |||||||
Initial fair value, at the date of issuance | 9,438 | ||||||||
Decrease in fair value | (8,442 | ) | |||||||
Balance at September 30, 2011 | 996 | ||||||||
Increase in fair value | 709 | ||||||||
Balance at September 30, 2012 | $ | 1,705 | |||||||
Decrease in fair value | (542 | ) | |||||||
Balance at September 30, 2013 | $ | 1,163 | |||||||
August 2010 Registered Direct Offering | |||||||||
In August 2010, the Company sold to two institutional investors an aggregate of 599,550 units, with each unit consisting of (i) one share of common stock and (ii) one warrant to purchase one share of common stock, for a purchase price of $15.72 per unit. These units were not issued or certificated. The shares and warrants were immediately separated and the Company issued 599,550 shares of its common stock and warrants to purchase an additional 599,550 shares of the Company's common stock. This financing resulted in net proceeds of $8,700. | |||||||||
In August 2011, one investor exercised 10,550 warrants, at $4.70 per share, and the Company received proceeds totaling approximately $50. Subsequently, on December 1, 2011 the remaining 589,000 warrants expired unexercised. | |||||||||
Fair Value Assumptions Used in Accounting for Warrant Liability | |||||||||
The Company has determined its warrant liability to be a Level 3 fair value measurement and used the Black Scholes valuation model to calculate the fair value for the fiscal year ended September 30, 2012 and 2013. | |||||||||
At the measurement date, the Company estimated the fair value for the June 2012 warrants using the Black-Scholes valuation model using the following assumptions: | |||||||||
September 30, | September 30, | ||||||||
2012 | 2013 | ||||||||
June 2012 Financing | |||||||||
Stock price | $ | 2.97 | $ | 3.15 | |||||
Exercise price | $ | 2.66 | $ | 2.66 | |||||
Risk-free interest rate | 0.62 | % | 0.63 | % | |||||
Expected remaining term | 4.74 years | 3.74 years | |||||||
Expected volatility | 98 | % | 82 | % | |||||
Dividend yield | 0 | % | 0 | % | |||||
Warrants outstanding June 2012 registered direct | 2,749,469 | 2,749,469 | |||||||
The Company estimated the fair value for the May 2011 warrants using the Black-Scholes valuation model at the measurement dates of September 30, 2013 and 2012, respectively using the following assumptions: | |||||||||
September 30, | September 30, | ||||||||
2012 | 2013 | ||||||||
May 2011 Financing | |||||||||
Stock price | $ | 2.97 | $ | 3.15 | |||||
Exercise price | $ | 9.92 | $ | 9.92 | |||||
Risk-free interest rate | 0.31 | % | 0.63 | % | |||||
Expected remaining term | 3.63 years | 2.63 years | |||||||
Expected volatility | 82 | % | 77 | % | |||||
Dividend yield | 0 | % | 0 | % | |||||
Warrants outstanding May 2011 registered direct | 2,256,929 | 2,256,929 | |||||||
Risk-Free Interest Rate. This is the United States Treasury rate for the measurement date having a term equal to the expected remaining term of the warrant. An increase in the risk-free interest rate will increase the fair value and the associated derivative liability. | |||||||||
Expected Remaining Term. This is the period of time over which the warrant is expected to remain outstanding and is based on management's estimate, taking into consideration the remaining contractual life. | |||||||||
Expected Volatility. This is a measure of the amount by which the stock price has fluctuated or is expected to fluctuate. Since the Company's stock has been traded for the expected remaining term of the warrants, the Company uses its own historic volatility over the retrospective period corresponding to the expected remaining term of the warrants on the measurement date. Extra weighting is attached to those companies most similar in terms of size and business activity. An increase in the expected volatility will increase the fair value and the associated derivative liability. | |||||||||
Dividend Yield. The Company has not made any dividend payments nor does it have plans to pay dividends in the foreseeable future. An increase in the dividend yield will decrease the fair value and the associated derivative liability. | |||||||||
Participating Securities | |||||||||
If at any time the Company grants, issues or sells securities or other property to holders of any class of common stock the holders of the warrants are entitled to also acquire those same securities as if they held the number of shares of common stock acquirable upon complete exercise of the warrants. | |||||||||
As such, given that the warrant holders will participate fully on any dividends or dividend equivalents, the Company determined that the warrants are participating securities and therefore are subject to ASC 260-10-55 earnings per share. These securities were excluded for the years ended September 30, 2013, 2012 and 2011 earnings per share calculation since their inclusion would be anti-dilutive. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||||||||||||
10. Stockholders' Equity | |||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||
The Company's authorized common stock consists of 62,500,000 shares of a single class of common stock, having a par value of $0.01 per share. The holders of the common stock are entitled to one vote for each share and have no cumulative voting rights or preemptive rights. | |||||||||||||||||||||||||||
On June 24, 2013, the Company completed an underwritten public offering of 4,482,760 shares of its common stock at a price to the public of $4.35 per share. On July 22, 2013, the Company issued 236,007 additional shares of common stock, at the public offering price of $4.35 per share, in connection with the underwriters' exercise of a portion of their over-allotment option. The Company received net proceeds from this offering, after deducting underwriting discounts, commissions and expenses, of $19.2 million. | |||||||||||||||||||||||||||
On June 27, 2012 the Company completed a private placement of an aggregate of 4,250,020 shares of common stock, 3,605,607 shares of Series B preferred stock and warrants to purchase 2,256,929 shares of common stock at an exercise price of $2.66 per share. The Company received net proceeds, after deducting placement agent fees and other offering expenses of approximately $17,100 from this financing. In June 2013, 176,964 shares of the Company's Series B Convertible Preferred Stock were converted into an equal number of shares of common stock. In September 2013, 1,478,643 shares of the Company's Series B Convertible Preferred Stock were converted into an equal number of shares of common stock. | |||||||||||||||||||||||||||
On May 12, 2011, the Company completed a registered direct offering of an aggregate of 3,018,736 shares of common stock, 1,813,944 shares of Series A preferred stock and warrants to purchase 2,256,929 shares of common stock at an exercise price of $9.92 per share. The Company received net proceeds, after deducting placement agent fees and other offering expenses, of approximately $28,000 from this financing. In August 2013, 1,813,944 shares of the Company's Series A Convertible Preferred Stock, convertible at a 4:1 ratio, were converted into 453,483 shares of common stock. | |||||||||||||||||||||||||||
On August 24, 2010, the Company completed a registered direct offering of an aggregate of 599,550 shares of common stock and warrants to purchase an additional 599,550 shares of common stock at an exercise price of $18.864. The Company received net proceeds, after deducting placement agent fees and other offering expenses, of approximately $8,700 from this financing. | |||||||||||||||||||||||||||
On February 12, 2008, the Company completed a follow-on public offering of 815,000 shares of its common stock at a price to the public of $62.00 per share. The Company received net proceeds from this offering, after deducting underwriting discounts and commissions and expenses, of $46,817. Certain of the Company's stockholders sold 137,500 shares in the offering. The Company did not receive any proceeds from the sale of shares from the selling stockholders. | |||||||||||||||||||||||||||
On May 16, 2007, the Company completed an initial public offering of 1,437,500 shares of its common stock at a price to the public of $60.00 per share. The offering resulted in gross proceeds of $86,300. The Company received net proceeds from the offering of approximately $78,800 after deducting underwriting discounts and commissions and additional offering expenses. The completion of the initial public offering resulted in the conversion of the Company's Series A and B convertible preferred stock. A total of 1,601,749 shares of common stock were issued upon the conversion of the preferred stock. | |||||||||||||||||||||||||||
As of September 30, 2013, the Company had the following warrants outstanding: | |||||||||||||||||||||||||||
(i) May 2011 financing — | |||||||||||||||||||||||||||
(a) warrants to purchase 2,256,929 shares of the Company's common stock with an exercise price of $9.92 per share | |||||||||||||||||||||||||||
(ii) June 2012 financing — | |||||||||||||||||||||||||||
(a) warrants to purchase 2,066,969 shares of the Company's common stock with an exercise price of $2.66 per share and | |||||||||||||||||||||||||||
(b) Series B convertible preferred stock — warrants to purchase 682,500 shares of the Company's common stock with an exercise price of $2.66 per share. | |||||||||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||||||||
The Company is authorized to issue up to 50,000,000 shares of preferred stock, having a par value of $0.01 per share. The Company's preferred stock may be issued in one or more series, the terms of which may be determined at the time of issuance by the Company's Board of Directors, without further action by stockholders, and may include voting rights (including the right to vote as a series on particular matters), preferences as to dividends and liquidation and conversion, redemption rights and sinking fund provisions. | |||||||||||||||||||||||||||
The issuance of preferred stock could reduce the rights, including voting rights, of the holders of common stock and, therefore, could reduce the value of the common stock. In particular, specific rights granted to holders of preferred stock could be used to restrict the Company's ability to merge with or sell the Company's assets to a third party, thereby preserving control of the Company by existing management. | |||||||||||||||||||||||||||
Series A Preferred Stock May 2011 Financing | |||||||||||||||||||||||||||
As part of the May 2011 registered direct offering, the Company issued 1,813,944 shares of the Company's Series A preferred stock to one investor. The investor purchased units consisting of one share of Series A preferred stock and a warrant to purchase 0.1625 of a share of common stock. No fractional warrants were issued. Each unit was at a price of $8.84 per unit. | |||||||||||||||||||||||||||
Each share of Series A preferred stock is convertible into 0.25 of a share of the Company's common stock at any time at the option of the holder, provided that the holder will be prohibited from converting the shares of series A preferred stock into shares of the Company's common stock if, as a result of such conversion, the holder, together with its affiliates, would beneficially own more than 9.98% of the total number of shares of the Company's common stock then issued and outstanding. In the event of the Company's liquidation, dissolution or winding up, holders of the Series A preferred stock will receive a payment equal to $0.01 per share of Series A preferred stock before any proceeds are distributed to the holders of the Company's common stock. After the payment of this preferential amount, and subject to the rights of holders of any class or series of capital stock specifically ranking by its terms senior to the Series A preferred stock, holders of Series A preferred stock and holders of the Company's Series B stock will participate ratably in the distribution of any remaining assets with the Company's common stock and any other class or series of capital stock that participates with the common stock in such distributions. Shares of Series A preferred stock will generally have no voting rights, except as required by law and except that the consent of the holders of a majority of the outstanding Series A preferred stock will be required to amend the terms of the Series A preferred stock. The Series A preferred stock will not be entitled to receive any dividends, unless and until specifically declared by the Company's board of directors. | |||||||||||||||||||||||||||
In August 2013, 1,813,944 shares of the Company's Series A Convertible Preferred Stock were converted into 453,483 shares of common stock. | |||||||||||||||||||||||||||
Series A Preferred Stock July 2005 Private Placement | |||||||||||||||||||||||||||
In July 2005, the company authorized 1,050,000 shares of its Series A preferred stock and completed a private placement of 569,000 shares of these shares, of which 0 shares were issued and outstanding as of September 30, 2007. In addition, in connection with the July 2006 private placement, the Company issued warrants to purchase shares of the Company's series A preferred stock. All such warrants were expired as of September 30, 2012. | |||||||||||||||||||||||||||
In connection with the Series A preferred stock issuance, the Company entered into a registration rights agreement with the purchasers of its stock, which provided, among other things, for liquidated damages if the Company were initially unable to register and obtain an effective registration of the securities within the allotted time. The stockholders could not demand registration until one hundred and eighty (180) days after the Company had effected a qualified initial public offering. The penalties were (i) one and three quarters (1¾%) percent of the aggregate number of shares of underlying common stock for each month, or part thereof, after a ninety (90) day period that a registration statement was not filed with the SEC or (ii) one (1%) percent of the aggregate number of shares of underlying common stock for each month if the forgoing filed registration statement was not declared effective by the SEC within one hundred and twenty (120) days. | |||||||||||||||||||||||||||
Each share of Series A preferred stock was automatically converted into a number of shares of common stock equal to the quotient of $3.54 divided by $1.00 immediately subsequent to the date of the initial public offering. | |||||||||||||||||||||||||||
As part of the compensation agreement, the placement agent received 69,875 Series A warrants. Each warrant consists of the right to purchase one share of fully paid and non-assessable common stock for a period of seven years which expired on July 12, 2012. | |||||||||||||||||||||||||||
Series B Preferred Stock June 2012 Private Placement | |||||||||||||||||||||||||||
In June 2012, the Company completed a private placement of an aggregate of 4,250,020 shares of the Company's common stock, 3,605,607 shares of the Company's Series B Convertible Preferred Stock and warrants to purchase an aggregate of 2,749,469 shares of common stock at an exercise price of $2.66 per share. For each unit consisting of either a share of common stock or Series B preferred stock and a warrant to purchase 0.35 of a share of common stock, the purchasers in the June 2012 Private Placement paid a negotiated price of $2.355. | |||||||||||||||||||||||||||
Each share of Series B preferred stock is convertible into one share of the Company's common stock at any time at the option of the holder, except that the securities purchase agreement that the Company entered into in connection with the 2012 Private Placement (the "Securities Purchase Agreement") provides that a holder will be prohibited from converting shares of Series B preferred stock into shares of common stock if, as a result of such conversion, such holder, together with its affiliates, would beneficially own more than 9.98% of the total number of shares of common stock then issued and outstanding. In the event of the Company's liquidation, dissolution or winding up, holders of the Series B preferred stock will receive a payment equal to $0.01 per share of Series B preferred stock before any proceeds are distributed to the holders of common stock. After the payment of this preferential amount, and subject to the rights of holders of any class or series of capital stock specifically ranking by its terms senior to the Series B preferred stock, holders of Series B preferred stock and holders of the Company's Series A preferred stock will participate ratably in the distribution of any remaining assets with the common stock and any other class or series of capital stock that participates with the common stock in such distributions. Shares of Series B preferred stock will generally have no voting rights, except as required by law and except that the consent of the holders of a majority of the outstanding Series B preferred stock will be required to amend the terms of the Series B preferred stock. Holders of Series B preferred stock are entitled to receive, and the Company is required to pay, dividends on shares of the Series B preferred stock equal (on an as-if-converted-to-common-stock basis) to and in the same form as dividends (other than dividends in the form of common stock) actually paid on shares of the common stock when, as and if such dividends (other than dividends in the form of common stock) are paid on shares of the common stock. | |||||||||||||||||||||||||||
As required by the Securities Purchase Agreement, the Company filed a Registration Statement on Form S-3 (the "Registration Statement") with the Securities and Exchange Commission (the "SEC") on July 27, 2012, which was within 30 days after the closing of the 2012 Private Placement. The Registration Statement, which was declared effective on August 13, 2012, registers the resale of the shares of common stock and Series B preferred stock issued and sold in the 2012 Private Placement, the shares of common stock issuable upon conversion of the Series B preferred stock issued and sold in the 2012 Private Placement, and the shares of common stock issuable upon exercise of the warrants issued and sold in the 2012 Private Placement. Pursuant to the terms of the Securities Purchase Agreement, the Company agreed to pay liquidated damages to the purchasers in the 2012 Private Placement if, after effectiveness of the Registration Statement and subject to certain specified exceptions, the Company suspends the use of the Registration Statement or the Registration Statement ceases to remain continuously effective as to all the securities for which it is required to be effective (each such event, a "Registration Default"). Subject to specified exceptions, for each 30-day period or portion thereof during which a Registration Default remains uncured, the Company is obligated to pay liquidated damages to each purchaser in cash in an amount equal to 1.0% of the aggregate purchase price paid by each such purchaser in the 2012 Private Placement, up to a maximum of 8.0% of such aggregate purchase price. As of the date of these financial statements, the Company does not believe that it is probable that it will be obligated to pay any such liquidated damages. Accordingly, the Company has not established an accrual for liquidated damages. | |||||||||||||||||||||||||||
In June 2013, 176,964 shares of the Company's Series B Convertible Preferred Stock were converted into an equal number of shares of common stock. In September 2013, an additional 1,478,643 shares of the Company's Series B Convertible Preferred Stock were converted into an equal number of shares of common stock. | |||||||||||||||||||||||||||
Series B Preferred Stock July 2006 Private Placement | |||||||||||||||||||||||||||
In July 2006, the Company authorized 6,500,000 shares of its Series B preferred stock and completed a private placement of 5,380,711 of these shares, of which 0 shares were issued and outstanding as of September 30, 2007. In addition, in connection with the July 2006 private placement the Company issued warrants to purchase shares of the Company's Series B preferred stock. All such warrants were expired as of September 30, 2012. | |||||||||||||||||||||||||||
As a result of the conversion option, the Company considered the features contained in the Series B preferred stock to ascertain whether the shares contained a beneficial conversion feature and determined that the issuance of the Series B preferred stock resulted in a beneficial conversion feature in the amount of $603. | |||||||||||||||||||||||||||
Shares Reserved for Future Issuance | |||||||||||||||||||||||||||
As of September 30, 2013, the Company reserved shares of common stock for future issuance as follows: | |||||||||||||||||||||||||||
2010 stock incentive plan | 5,290,739 | ||||||||||||||||||||||||||
2005 employee stock purchase plan | 475,000 | ||||||||||||||||||||||||||
Common shares issuable upon conversion of Series B Preferred Stock | 1,950,000 | ||||||||||||||||||||||||||
Warrants issued in connection with May 2011 registered direct offering | 2,256,929 | ||||||||||||||||||||||||||
Warrants issued in connection with June 2012 private placement | 2,749,469 | ||||||||||||||||||||||||||
Total | 12,722,137 | ||||||||||||||||||||||||||
2004 Stock Incentive Plan | |||||||||||||||||||||||||||
The Company established the 2004 Stock Incentive Plan on October 1, 2004 (the "Plan"), as amended in March 2007, and subsequently replaced by the 2010 Stock Incentive Plan. The Plan provides for the granting of shares of common stock or securities convertible into or exercisable for shares of common stock, including stock options ("Incentive Stock Options") to directors, employees, consultants and advisors of or to the Company. Incentive Stock Options can be awarded only to persons who are employees of the Company at the time of the grant. Stock options are exercisable at the conclusion of the vesting period. Employees can exercise their vested shares up to 90 days after termination of services. No awards may be granted under the Plan after the effective date of the 2010 Plan. | |||||||||||||||||||||||||||
The Plan is be administered by either the Board of Directors of the Company or a Committee thereof, which determines the terms and conditions of the awards granted under the Plan, including the recipient of the award, the nature of the award, the exercise price of the award, the number of shares subject to the award and the exercisability thereof. | |||||||||||||||||||||||||||
Non-employee directors are not entitled to receive awards other than the non-qualified stock options the plan directs be issued to non-employee directors. | |||||||||||||||||||||||||||
2010 Stock Incentive Plan | |||||||||||||||||||||||||||
In March 2013, the stockholders of the Company approved the amended and restated 2010 Stock Incentive Plan (the "2010 Plan"). Up to 3,750,000 shares of the Company's common stock may be issued pursuant to awards granted under the 2010 Plan, plus 1,540,739 shares of common stock underlying already outstanding awards under the Company's prior plans. As of September 30, 2013, the Company had 1,951,347 shares of common stock subject to outstanding awards. The contractual life of options granted under the 2010 Plan may not exceed seven years. The 2010 Plan uses a "fungible share" concept under which any awards that are not a full-value award will be counted against the share limit as one (1) share for each share of common stock and any award that is a full-value award will be counted against the share limit as 1.5 shares for each one share of common stock. The Company has not made any new awards under any prior equity plans after March 2, 2010 — the effective date the 2010 Plan was approved by the Company's stockholders. The 2010 Plan replaces the 2004 Stock Incentive Plan and 2005 Non-Employee Directors Stock Option Plan. | |||||||||||||||||||||||||||
2005 Employee Stock Purchase Plan | |||||||||||||||||||||||||||
The Company's 2005 Employee Stock Purchase Plan, or the Purchase Plan, was adopted by its Board of Directors and approved by its stockholders on March 20, 2007. The Purchase Plan became effective upon the closing of the Company's initial public offering. The Purchase Plan is intended to qualify as an employee stock purchase plan within the meaning of Section 423 of the Code. | |||||||||||||||||||||||||||
Under the Purchase Plan, eligible employees may contribute up to 15% of their eligible earnings for the period of that offering withheld for the purchase of common stock under the Purchase Plan. The employee's purchase price is equal to the lower of: 85% of the fair market value per share on the start date of the offering period in which the employee is enrolled or 85% of the fair market value per share on the semi-annual purchase date. The Purchase Plan imposes a limitation upon a participant's right to acquire common stock if immediately after the purchase, the employee would own 5% or more of the total combined voting power or value of the Company's common stock or of any of its affiliates not eligible to participate in the Purchase Plan. The Purchase Plan provides for an automatic rollover when the purchase price for a new offering period is lower than previously established purchase price(s). The Purchase Plan also provides for a one-time election that allows an employee the opportunity to enroll into a new offering period when the new offering is higher than their current offering price. This election must be made within 30 days from the start of a new offering period. Offering periods are twenty-seven months in length. The compensation cost in connection with the plan for the years ended September 30, 2011, 2012 and 2013 was $53, $16, and $5 respectively. | |||||||||||||||||||||||||||
An aggregate of 475,000 shares of common stock are reserved for issuance pursuant to purchase rights to be granted to the Company's eligible employees under the Purchase Plan. The Purchase Plan shares are replenished annually on the first day of each fiscal year by virtue of an evergreen provision. The provision allows for share replenishment equal to the lesser of 1% of the total number of shares outstanding on that date or 25,000 shares. As of September 30, 2011, 2012 and 2013, a total of 341,097, 355,321 and 366,926 shares, respectively, were reserved and available for issuance under this plan. For the years ended September 30, 2011, 2012 and 2013, the Company issued a total of, 83,903, 94,679 and 108,074 shares, respectively, under the Purchase Plan. | |||||||||||||||||||||||||||
2005 Non-Employee Directors' Stock Option Plan | |||||||||||||||||||||||||||
The Company's 2005 Non-Employee Directors' Stock Option Plan (the "Directors' Plan") was adopted by its Board of Directors and approved by its stockholders on March 20, 2007 and subsequently replaced with the 2010 Stock Incentive Plan. The Directors' Plan became effective upon the closing of the Company's initial public offering. An aggregate of 125,000 shares of common stock were reserved for issuance under the Directors' Plan. Upon the effective date of the registration statement in connection with the Company's initial public offering, each of its non-employee directors automatically received an initial option to purchase 6,250 shares of common stock. Upon appointment, non-employee directors receive a one-time grant of an option to purchase 6,250 shares of common stock. Annually, non-employee directors receive an option to purchase 5,000 shares of common stock. Effective March 3, 2009, these shares vest pro rata over one year. However, in the event a non-employee director has not served since the date of the preceding annual meeting of stockholders, that director will receive an annual grant that has been reduced pro rata for each full quarter prior to the date of grant during which such person did not serve as a non-employee director. | |||||||||||||||||||||||||||
The fair value per share is being recognized as compensation expense over the applicable vesting period. The fair value per share for awards granted as of December 31, 2008 through September 30, 2012 was calculated using the Black-Scholes valuation model. | |||||||||||||||||||||||||||
The fair value of the common stock for the grants from December 23, 2004 through November 1, 2006 was determined using a retrospective valuation. The fair value of the common stock for the grants during December 2006 and subsequently was determined contemporaneously with the grants. | |||||||||||||||||||||||||||
The following table summarizes the stock option activity through September 30, 2013: | |||||||||||||||||||||||||||
Options | Number | Weighted | Weighted | Aggregate | |||||||||||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||||||||||||
Exercise Price | Remaining | ||||||||||||||||||||||||||
Contractual | |||||||||||||||||||||||||||
Life in Years | |||||||||||||||||||||||||||
Balance, September 30, 2004 | — | $ | — | $ | — | ||||||||||||||||||||||
Granted | 96,358 | 5.64 | — | ||||||||||||||||||||||||
Outstanding balance, September 30, 2005 | 96,358 | 5.64 | — | ||||||||||||||||||||||||
Granted | 115,401 | 22.6 | — | ||||||||||||||||||||||||
Forfeited, expired | 15,054 | 13.6 | — | ||||||||||||||||||||||||
Outstanding balance, September 30, 2006 | 196,705 | 12.92 | — | ||||||||||||||||||||||||
Granted | 238,961 | 55.84 | — | ||||||||||||||||||||||||
Exercised | 886 | 5.64 | — | ||||||||||||||||||||||||
Forfeited, expired | 13,283 | 22.6 | — | ||||||||||||||||||||||||
Outstanding balance, September 30, 2007 | 421,497 | 27.2 | — | ||||||||||||||||||||||||
Granted | 431,849 | 67.52 | — | ||||||||||||||||||||||||
Exercised | 43,604 | 20.72 | — | ||||||||||||||||||||||||
Forfeited, expired | 25,892 | 44.16 | — | ||||||||||||||||||||||||
Outstanding balance, September 30, 2008 | 783,850 | 55.68 | — | ||||||||||||||||||||||||
Granted | 152,875 | 10.76 | — | ||||||||||||||||||||||||
Exercised | 4,416 | 5.64 | — | ||||||||||||||||||||||||
Forfeited, expired | 80,398 | 55.52 | — | ||||||||||||||||||||||||
Outstanding balance, September 30, 2009 | 851,911 | 47.24 | — | ||||||||||||||||||||||||
Granted | 328,530 | 16.37 | — | ||||||||||||||||||||||||
Exercised | 8,081 | 8.43 | — | ||||||||||||||||||||||||
Forfeited, expired | 13,469 | 52.16 | — | ||||||||||||||||||||||||
Outstanding balance, September 30, 2010 | 1,158,891 | 38.72 | — | ||||||||||||||||||||||||
Granted | 290,834 | 6.36 | — | ||||||||||||||||||||||||
Exercised | 104 | 5.64 | — | ||||||||||||||||||||||||
Forfeited, expired | 84,271 | 38.48 | — | ||||||||||||||||||||||||
Outstanding balance, September 30, 2011 | 1,365,350 | 32.68 | — | ||||||||||||||||||||||||
Granted | 215,877 | 2.54 | — | ||||||||||||||||||||||||
Forfeited, expired | 34,773 | 32.09 | — | ||||||||||||||||||||||||
Outstanding balance September 30, 2012 | 1,546,454 | $ | 27.8 | — | |||||||||||||||||||||||
Granted | 486,000 | 2.43 | — | ||||||||||||||||||||||||
Exercised | 30,250 | 2.48 | — | ||||||||||||||||||||||||
Forfeited, expired | 82,153 | 15.37 | — | ||||||||||||||||||||||||
Outstanding balance September 30, 2013 | 1,920,051 | $ | 22.31 | 4 | $ | 445 | |||||||||||||||||||||
Exercisable shares, September 30, 2013 | 1,258,612 | $ | 32.14 | 3 | $ | 51 | |||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||||||||
The Company grants restricted stock units ("RSUs") to executive officers and employees pursuant to the 2010 Plan from time to time. There is no direct cost to the recipients of RSUs, except for any applicable taxes. | |||||||||||||||||||||||||||
On March 8, 2012, the Company's stockholders approved an amendment to the 2010 Plan to increase the number of shares of common stock authorized for issuance thereunder solely for the purpose of allowing the Company to issue an 191,719 restricted stock units to certain of the Company's employees in place of an aggregate of $823 in discretionary cash bonuses in connection with the fiscal year ended September 30, 2011 (the "2011 Bonus RSUs"). The 2011 Bonus RSUs vested and were distributed on September 30, 2012. The Company had previously accrued and expensed the $823 in the fiscal year ended September 30, 2011. The 2011 Bonus RSUs vested in full and was distributed on September 30, 2012. Since the total fair value of the 2011 Bonus RSUs did not exceed the discretionary aggregate cash bonus value of $823, the Company did not record any additional stock-based compensation expense in the year ended September 30, 2012. The accrued bonus liability was settled in March 2012 and, accordingly, the liability, net of taxes, in the amount of $582 was reversed into additional paid-in-capital. Each RSU award that was granted in December 2010 to our executive officers and employees represents one share of common stock and each award vests annually over three years, with fifty percent vesting on the first anniversary of the date of grant and the remainder vesting in two equal installments on each anniversary thereafter. Each year following the annual vesting date, between January 1st and March 15th, the Company will issue common stock for each vested RSU. During the period when the RSU is vested but not distributed, the RSUs cannot be transferred and the grantee has no voting rights. If the Company declares a dividend, RSU recipients will receive payment based upon the percentage of RSUs that have vested prior to the date of declaration. The costs of the awards, determined as the fair market value of the shares on the grant date, are expensed per the vesting schedule outlined in the award. For example, the December 2010 RSU awards vest over three years and are expensed 50% the first year and 25% the next two years; whereas, the December 2009 RSU awards are expensed ratably over the four year vesting period. | |||||||||||||||||||||||||||
Based on historical experience of option cancellations, the Company has estimated an annualized forfeiture rate of 7.5% for employee RSUs. Forfeiture rates will be adjusted over the requisite service period when actual forfeitures differ, or are expected to differ, from the estimate. As of September 30, 2013, the executives, the board of directors and employees had 374,925 vested and distributed RSUs. | |||||||||||||||||||||||||||
The stock-based compensation expense associated with the RSUs has been recorded in the statement of operations and in additional paid-in-capital on the balance sheets is as follows: | |||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||||||||||||
Stock compensation expense — RSUs | $ | 585 | $ | 1,202 | $ | 363 | |||||||||||||||||||||
At September 30, 2013, there was $50 of total unrecognized stock-based compensation expense related to RSU awards granted under the 2004 Stock Incentive Plan and the 2010 Plan. This expense is expected to be recognized over the remaining vesting periods up to four years. | |||||||||||||||||||||||||||
The following table summarizes RSU activity from October 1, 2010 through September 30, 2013: | |||||||||||||||||||||||||||
Shares | Weighted | ||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||
Grant-Date | |||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||
Non-vested and outstanding balance at September 30, 2009 | — | $ | — | ||||||||||||||||||||||||
Shares granted | 62,510 | 15.8 | |||||||||||||||||||||||||
Shares forfeited or expired | 246 | 15.8 | |||||||||||||||||||||||||
Non-vested and outstanding balance at September 30, 2010 | 62,264 | 15.8 | |||||||||||||||||||||||||
Changes during the period: | |||||||||||||||||||||||||||
Shares granted | 90,639 | 7.56 | |||||||||||||||||||||||||
Shares vested and issued | 22,435 | 17.2 | |||||||||||||||||||||||||
Shares forfeited or expired | 8,791 | 9.4 | |||||||||||||||||||||||||
Non-vested and outstanding balance at September 30, 2011 | 121,677 | 9.4 | |||||||||||||||||||||||||
Changes during the period: | |||||||||||||||||||||||||||
Shares granted | 274,189 | 2.36 | |||||||||||||||||||||||||
Shares vested and issued | 327,713 | 3.45 | |||||||||||||||||||||||||
Non-vested and outstanding balance at September 30, 2012 | 68,153 | $ | 10.51 | ||||||||||||||||||||||||
Changes during the period: | |||||||||||||||||||||||||||
Shares granted | — | — | |||||||||||||||||||||||||
Shares vested and issued | 36,851 | 10.26 | |||||||||||||||||||||||||
Shares forfeited or expired | 6 | 15.8 | |||||||||||||||||||||||||
Non-vested and outstanding balance at September 30, 2013 | 31,296 | 10.48 |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Sep. 30, 2013 | |
Employee Benefit Plan [Abstract] | ' |
Employee Benefit Plan | ' |
11. Employee Benefit Plan | |
Effective January 1, 2006, the Company established a 401(k) plan covering substantially all employees. Employees may contribute up to 100% of their salary per year (subject to maximum limit prescribed by federal tax law). The Company may elect to make a discretionary contribution or match a discretionary percentage of employee contributions. For the years ended September 30, 2011, 2012 and 2013, the Company had not elected to make any contributions to the plan. |
Reverse_Stock_Splits
Reverse Stock Splits | 12 Months Ended |
Sep. 30, 2013 | |
Reverse Stock Splits [Abstract] | ' |
Reverse Stock Splits | ' |
12. Reverse Stock Splits | |
On June 11, 2012, the Company amended its certificate of incorporation in order to effect a one-for-four reverse split of its outstanding common stock and to fix on a post-split basis the number of authorized shares of its common stock at 25,000,000 (reduced from 100,000,000 authorized shares). As a result of the 2012 reverse stock split, each share of Company common stock outstanding at the effective time was automatically changed into one-quarter of a share of common stock. No fractional shares were issued in connection with the 2012 reverse stock split, and cash of $0.3 was paid in lieu of fractional shares. Also as a result of the 2012 reverse stock split, the number of shares of common stock subject to outstanding options, RSUs and warrants issued by the Company and the number of shares reserved for future issuance under the Company's stock plans have been reduced by a factor of four. There was no alteration to the par value of the common stock or any modification of the voting rights or other terms thereof. All references in these financial statements and accompanying notes to units of common stock or per share amounts are reflective of the 2012 reverse stock split for all periods reported. Additionally, on November 1, 2012 as a result of a special stockholders meeting, authorized shares was increased from 25,000,000 to 62,500,000. | |
On April 12, 2007, the Company completed a 0.7085 for one (0.7085:1) reverse stock split rounding all fractional shares down to the next full share. Stockholders received cash in lieu of fractional shares. After the 2007 reverse split, there were 2,000,957 shares of common stock outstanding. The 2007 reverse split did not reduce the number of authorized shares of common stock, alter the par value or modify the voting rights or other terms thereof. As a result of the 2007 reverse split, the conversion prices and/or the numbers of shares issuable upon the exercise of any outstanding options and warrants to purchase common stock were proportionally adjusted pursuant to the respective anti-dilution terms of the 2004 Stock Incentive Plan and the respective warrant agreements. All references in these financial statements and accompanying notes to units of common stock or per share amounts are reflective of the 2007 reverse split for all periods reported. |
Summary_Selected_Quarterly_Fin
Summary Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Summary Selected Quarterly Financial Data (Unaudited) [Abstract] | ' | ||||||||||||||||||||||||||
Summary Selected Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||||||||||||
13. Summary Selected Quarterly Financial Data (Unaudited) | |||||||||||||||||||||||||||
The following table sets forth certain unaudited quarterly statement of operations data for the eight quarters ended September 30, 2013. This information is unaudited, but in the opinion of management, it has been prepared substantially on the same basis as the audited financial statements and all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts stated below to state fairly the unaudited quarterly results of operations. The results of operations for any quarter are not necessarily indicative of the results of operations for any future period. | |||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||||||||||||||
December 31, | March 31, | June 30, | September 30, | ||||||||||||||||||||||||
2012 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net loss | $ | (3,669 | ) | $ | (5,220 | ) | $ | (9,631 | ) | $ | (815 | ) | |||||||||||||||
Basic and diluted net loss per common share(1) | $ | (0.26 | ) | $ | (0.37 | ) | $ | (0.66 | ) | $ | (0.04 | ) | |||||||||||||||
Weighted average common shares basic and diluted | 14,176,057 | 14,182,451 | 14,573,110 | 19,622,878 | |||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||||||||||||||
December 31, | March 31, | June 30, | September 30, | ||||||||||||||||||||||||
2011 | 2012 | 2012 | 2012 | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net loss | $ | (4,501 | ) | $ | (4,316 | ) | $ | (6,051 | ) | $ | (5,879 | ) | |||||||||||||||
Basic and diluted net loss per common share(1) | $ | (0.47 | ) | $ | (0.45 | ) | $ | (0.60 | ) | $ | (0.42 | ) | |||||||||||||||
Weighted average common shares basic and diluted | 9,673,529 | 9,688,384 | 10,152,194 | 13,982,826 | |||||||||||||||||||||||
____________ | |||||||||||||||||||||||||||
(1) Basic earnings (loss) per share calculation for the third and fourth quarter include the weighted average effect of stock issuances; therefore, the sum of the quarterly earnings per share will not equal full-year earnings per share amounts which reflect the weighted average effect on an annual basis. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Basis of Presentation | ' | ||||||||||||
Basis of Presentation | |||||||||||||
The Company is in the development stage, as defined by Financial Accounting Standards Board ("FASB") ASC 915 (prior authoritative literature: Statement of Financial Accounting Standards No. 7), "Accounting and Reporting by Development Stage Enterprises", as its primary activities since incorporation have been establishing its facilities, recruiting personnel, conducting research and development, business development, business and financial planning and raising capital. | |||||||||||||
On June 11, 2012, the Company effected a one-for-four reverse split of its outstanding common stock. All references in these financial statements and accompanying notes to units of common stock or per share amounts are reflective of the reverse split for all periods reported. (See Note 12.) | |||||||||||||
Research and Development Costs | ' | ||||||||||||
Research and Development Costs | |||||||||||||
The Company is in the business of research and development and, therefore, research and development costs include, but are not limited to, salaries and benefits, lab supplies, preclinical fees, clinical trial and related clinical manufacturing costs, allocated overhead costs and professional service providers. Research and development costs are expensed when incurred. Research and development costs aggregated $13,597, $12,315, and $14,296 for the years ended September 30, 2011, 2012 and 2013, respectively. | |||||||||||||
Government Grants | ' | ||||||||||||
Government Grants | |||||||||||||
Grants received are recognized as grant income when the grants become receivable, provided there is reasonable assurance that the Company will comply with the conditions attached to the grant and there is reasonable assurance the grant will be received. The Company requests cash funding under approved grants as expenses are incurred (not in advance) and report these receipts on the statement of operations as a separate line item entitled "Government Grants" with the corresponding expenses included in research and development. In July and September 2012, the Company was awarded two National Institutes of Health grants for the development of concentrated ultra-rapid-acting insulin formulation and glucagon formulation, respectively, for use in an artificial pancreas. Both awards are for two years and total approximately $580 each. Work on the grant for the development of concentrated ultra-rapid-acting insulin formulation started in August 2012 and expenses incurred were $327 during the year ended September 30, 2013 and $88 for the year ended September 30, 2012. Work on the grant for the development of novel and stable glucagon formulations for closed loop systems started in January 2013, and expenses incurred were $219 during the year ended September 30, 2013. Corresponding income and receivable were recorded. | |||||||||||||
Use of Estimates | ' | ||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and assumptions including, but not limited to, accruals, income taxes payable, forfeiture rate used in the computation of share-based compensation and deferred tax assets. Actual results may differ from those estimates. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and Cash Equivalents | |||||||||||||
The Company considers currency on hand, demand deposits and all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. As of September 30, 2012 and 2013, the Company had cash and cash equivalents of $39,050 and $39,781, respectively, and they are primarily held in a premium commercial money market account. | |||||||||||||
Restricted Cash | ' | ||||||||||||
Restricted Cash | |||||||||||||
Restricted cash was $60 and $0 as of September 30, 2012 and 2013. This amount was held in a money market account with a bank to secure a credit card purchasing agreement utilized to facilitate employee travel and certain ordinary purchases. As of September 30, 2013 the Company canceled the credit card purchasing agreement and the restriction on the cash was lifted. | |||||||||||||
In February 2012, the Company brought action against one of its vendors before the American Arbitration Association in New York relating to disputed fees charged to the Company for inventory storage. As part of the arbitration stipulation, the Company established a $1,500 escrow account and recorded an accrual of $741 toward this claim. During the quarter ended June 30, 2012, the Company paid $500 from the escrow account. On July 30, 2012, the Company received a judgment from the arbitrator stating the Company's final amount due was $55. The remaining escrow balance of $945 was removed from the escrow account and transferred to cash. The remaining accrual of $186 was reversed and recorded in research and development expense during the quarter ended September 30, 2012. | |||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||
Fair Value of Financial Instruments | |||||||||||||
The carrying amounts of the Company's financial instruments, which include cash and cash equivalents and accounts payable, approximate their fair values due to their short term maturities. | |||||||||||||
Pre-Launch Inventory | ' | ||||||||||||
Pre-Launch Inventory | |||||||||||||
Inventory costs associated with product candidates that have not yet received regulatory approval are capitalized if the Company believes there is probable future commercial use and future economic benefit. If the probability of future commercial use and future economic benefit cannot be reasonably determined, then pre-launch inventory costs associated with such product candidates are expensed as research and development expense during the period the costs are incurred. Because all of its product candidates are in early stages of preclinical or clinical development, the Company currently expenses all purchases of pre-launch inventory as research and development, and expects to continue to do so until it can determine the probability of regulatory approval for the applicable product candidate. | |||||||||||||
For the years ended September 30, 2012 and 2013, the Company expensed $170 and $121, respectively, of costs associated with the purchase of RHI and glucagon as research and development expense after such materials passed quality control inspection by the Company and transfer of title occurred. | |||||||||||||
Intellectual Property | ' | ||||||||||||
Intellectual Property | |||||||||||||
Intangible assets consist primarily of capitalized costs associated with the Company's ultra-rapid-acting insulin patents and the purchase of two domain addresses. They are amortized using the straight-line method over twenty years. If the Company determines that a patent will not result in future revenues, the cost related to such patent will be expensed in full on the date of that determination. Intellectual property amortization expense for the years ended September 30, 2011, 2012 and 2013 was $4, $3, and $3, respectively. | |||||||||||||
Property and Equipment | ' | ||||||||||||
Property and Equipment | |||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation or amortization. Major improvements are capitalized, while maintenance and repairs are expensed in the period the cost is incurred. Property and equipment are depreciated over their estimated useful lives using the straight-line method. Leasehold improvements are amortized using the straight-line method over their estimated useful lives, or the remaining term of the lease, whichever is shorter. When assets are retired or otherwise disposed of, the assets and related accumulated depreciation are removed from the accounts and resulting gains or losses are included in other income (expense) in the statement of operations. Estimated useful lives for each asset category are as follows: Furniture and fixtures — 7 years; Leasehold improvements — estimated useful life or remaining term of lease, whichever is shorter; Laboratory equipment — 7 years; Manufacturing equipment — 5 years; Device development— 5 years; Facility equipment— 3 years and 7 years; Computer equipment — 5 years; and Computer software — 3 years. | |||||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||||
Impairment of Long-Lived Assets | |||||||||||||
Whenever events or changes in circumstances indicate that the carrying amounts of a long-lived asset may not be recoverable, the Company reviews these assets for impairment and determines whether adjustments are needed to carrying values. There were no adjustments to the carrying value of long-lived assets at September 30, 2012 and 2013. | |||||||||||||
Warrant Liability | ' | ||||||||||||
Warrant Liability | |||||||||||||
The Company applies the provisions of Accounting Standards Codification Topic 480 ("ASC 480") (formerly FASB Staff Position 150-5 (FSP 15-5)), Issuers Accounting under FASB Statement No. 150 for Freestanding Warrants and other Similar Instruments on Shares that are Redeemable or Distinguishing Liabilities from Equities. Pursuant to ASC 480, a freestanding financial instrument (other than outstanding share) that, at inception, embodies an obligation to repurchase the issuer's shares and "requires or may require" the obligation to be settled by transferring assets, qualifies as a liability (if the obligation is conditional, the number of conditions is irrelevant). | |||||||||||||
The Company issued warrants in June 2012 and recorded a liability determined by the Black-Scholes valuation model. The Black-Scholes valuation model was used because the June 2012 warrants do not contain a repricing provision. The Black-Scholes valuation model takes into account, as of the valuation date, factors including the current exercise price, the expected life of the warrant, the current price of the underlying stock and its expected volatility, expected dividends on the stock, and the risk-free interest rate for the term of the warrant. These warrants will be revalued at each reporting period and changes in fair value are recognized currently in the statements of operations under the caption "Adjustment to fair value of common stock warrant liability." | |||||||||||||
The Company issued warrants in May 2011 and recorded a liability determined by the Black-Scholes valuation model. The Black-Scholes valuation model was used because the May 2011 warrants do not contain a repricing provision. These warrants will be revalued at each reporting period and changes in fair value are recognized currently in the statements of operations under the caption "Adjustment to fair value of common stock warrant liability." | |||||||||||||
The Company issued warrants in August 2010 and recorded a liability determined by the Monte Carlo simulation method, which was used because the August 2010 warrants contain a re-pricing provision. The Monte Carlo simulation is a generally accepted statistical method used to generate a defined number of stock price paths in order to develop a reasonable estimate of the range of future expected stock prices of the Company and its peer group and minimize standard error. | |||||||||||||
On December 2, 2011, the unexercised warrants to purchase 589,000 shares of common stock expired. The Company revalued the liability associated with these warrants from September 30, 2011 through the date of expiration and there was no material impact on the statement of operations. The common stock warrant liability associated with these warrants no longer exists. | |||||||||||||
Income Tax | ' | ||||||||||||
Income Taxes | |||||||||||||
The Company uses the asset and liability method of accounting for deferred income taxes. The provision for income taxes includes income taxes currently payable and those deferred as a result of temporary differences between the financial statement and tax bases of assets and liabilities. A valuation allowance is provided to reduce deferred tax assets to the amount of future tax benefit when it is more likely than not that some portion of the deferred tax assets will not be realized. Projected future taxable income and ongoing tax planning strategies are considered and evaluated when assessing the need for a valuation allowance. Any increase or decrease in a valuation allowance could have a material adverse or beneficial impact on the Company's income tax provision and net income or loss in the period which the determination is made. | |||||||||||||
Concentration of Risks and Uncertainties | ' | ||||||||||||
Concentration of Risks and Uncertainties | |||||||||||||
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. The Company deposits excess cash with major financial institutions in the United States. Balances may exceed the amount of insurance provided on such deposits. The Company believes that its investment policy guideline for its excess cash maintains safety and liquidity through its policies on credit requirements, diversification and investment maturity. | |||||||||||||
The Company has experienced significant operating losses since inception. At September 30, 2013, the Company had a deficit accumulated during the development stage of $215,428. The Company has generated no revenue to date. The Company has funded its operations to date principally from the sale of securities. The Company expects to incur substantial additional operating losses for the next several years and will need to obtain additional financing in order to complete the clinical development of an ultra-rapid-acting insulin or a glucagon rescue product, launch and commercialize the product if it receives regulatory approval, and continue research and development programs. There can be no assurance that such financing will be available or will be at terms acceptable to the Company. | |||||||||||||
The Company is currently developing its first product candidates and has no products that have received regulatory approval. Any products developed by the Company will require approval from the FDA or foreign regulatory agencies prior to commercial sales. There can be no assurance that the Company's products will receive the necessary approvals. If the Company is denied such approvals or such approvals are delayed, it would have a material adverse effect on the Company's future operating results. | |||||||||||||
To achieve profitable operations, the Company must successfully develop, test, manufacture and market products, as well as secure the necessary regulatory approvals. There can be no assurance that any such products can be developed successfully or manufactured at an acceptable cost and with appropriate performance characteristics, or that such products will be successfully marketed. These factors would have a material adverse effect on the Company's future financial results. | |||||||||||||
Share-Based Compensation | ' | ||||||||||||
Stock-Based Compensation | |||||||||||||
In March 2013, the shareholders of the Company approved the amended and restated 2010 Stock Incentive Plan (the "2010 Plan"). Up to 3,750,000 shares of the Company's common stock may be issued pursuant to awards granted under the 2010 Plan, plus 1,540,739 shares of common stock underlying already outstanding awards under the Company's prior plans. As of September 30, 2013, the Company had 1,951,347 shares of common stock subject to outstanding awards. The contractual life of options granted under the 2010 Plan may not exceed seven years. The 2010 Plan uses a "fungible share" concept under which any awards that are not a full-value award will be counted against the share limit as one (1) share for each share of common stock and any award that is a full-value award will be counted against the share limit as 1.5 shares for each one share of common stock. The Company has not made any new awards under any prior equity plans after March 2, 2010, the effective date the 2010 Plan was approved by the Company's stockholders. The 2010 Plan replaces the 2004 Stock Incentive Plan and 2005 Non-Employee Directors Stock Option Plan. | |||||||||||||
The Company uses the Black-Scholes pricing model to calculate the fair value of stock options. The expected life for grants was calculated in accordance with the simplified method described in the Securities and Exchange Commission Staff Accounting Bulletin (SAB) Topic 14.D.2 in accordance with SAB No. 110. | |||||||||||||
The risk-free rate of interest for periods within the contractual life of the stock option award is based on the yield of U.S. Treasury strips on the date the award is granted with a maturity equal to the expected term of the award. The Company estimates forfeitures based on actual forfeitures during its limited history. Additionally, the Company has assumed that dividends will not be paid. | |||||||||||||
For stock options granted to non-employees, the Company measures fair value of the equity instruments utilizing the Black-Scholes valuation model, if that value is more reliably measurable than the fair value of the consideration or service received. The fair value of these instruments is periodically revalued as the options vest, and is recognized as expense over the related period of service or vesting period, whichever is longer. The total cost expensed (credited) for options granted to non-employees for the years ended September 30, 2011, 2012 and 2013 was $(44), $0, and $0, respectively. | |||||||||||||
The Company expenses ratably over the vesting period the cost of the stock options granted to employees and directors. The total compensation cost for the years ended September 30, 2011, 2012, and 2013 was $4,964, $1,828, and $1,538 respectively. At September 30, 2013, the total compensation cost related to non-vested options not yet recognized was $871, which will be recognized over the next three years assuming the employees complete their service period for vesting of the options. The Black-Scholes valuation model assumptions are as follows and were determined as discussed above: | |||||||||||||
Year Ended September 30, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Expected life (in years) | 3.77 - 5.25 | 3.0 - 4.75 | 2.39-4.75 | ||||||||||
Expected volatility | 65 - 72% | 58 - 76% | 80-96% | ||||||||||
Expected dividend yield | 0% | 0% | 0% | ||||||||||
Risk-free interest rate | 0.75 - 1.97% | 0.39 - 0.91% | 0.25-0.75% | ||||||||||
Weighted-average grant date fair value | $ | 6.36 | $ | 2.54 | $ | 2.43 | |||||||
Participating Securities | ' | ||||||||||||
Participating Securities | |||||||||||||
In June 2008 the Financial Accounting Standards Board ("FASB") issued ASC 260-10-55 Earnings Per Share — Overall (formerly Financial Statement Position Emerging Issues Task Force 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities) ("ASC 260-10-55"). ASC 260-10-55 provides that securities and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. | |||||||||||||
Warrant Liability — Given that the warrant holders will participate fully on any dividends or dividend equivalents, the Company determined that the warrants are participating securities and therefore are subject to ASC 260-10-55. These securities were excluded from the per share calculation for all years since their inclusion would be anti-dilutive. | |||||||||||||
Restricted Stock Units — Given that the holders of Restricted Stock Unit awards ("RSUs") will only receive dividends or dividend equivalents on RSUs that have vested prior to the Company declaring dividends as well as forfeiting their rights to receive dividends or dividend equivalents on any unvested portion, the Company determined that the RSUs are non-participating securities and therefore are not subject to ASC 260-10-55. | |||||||||||||
Reclassification | ' | ||||||||||||
Reclassifications: | |||||||||||||
Certain items in the prior year's financial statements have been reclassified to conform with the current year's presentation. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Black-Scholes valuation model assumptions | ' | ||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||||||
Expected life (in years) | 3.77 - 5.25 | 3.0 - 4.75 | 2.39-4.75 | ||||||||||||||||||
Expected volatility | 65 - 72% | 58 - 76% | 80-96% | ||||||||||||||||||
Expected dividend yield | 0% | 0% | 0% | ||||||||||||||||||
Risk-free interest rate | 0.75 - 1.97% | 0.39 - 0.91% | 0.25-0.75% | ||||||||||||||||||
Weighted-average grant date fair value | $6.36 | $2.54 | $2.43 | ||||||||||||||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||
Company's financial assets and liabilities carried at fair value and measured on a recurring basis | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Fair Value at | Quoted Prices in | Significant | Significant | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, | Active Markets for | Other | Unobservable | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | Identical Assets | Observable | Inputs | ||||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | Market Inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 39,781 | $ | 39,781 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Subtotal | 39,781 | 39,781 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock warrant liability | (6,121 | ) | — | — | (6,121 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Subtotal | (6,121 | ) | — | — | (6,121 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 33,660 | $ | 39,781 | $ | — | $ | (6,121 | ) | ||||||||||||||||||||||||||||||||||||||||||
Description | Fair Value at | Quoted Prices in | Significant | Significant | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, | Active Markets for | Other | Unobservable | ||||||||||||||||||||||||||||||||||||||||||||||||
2012 | Identical Assets | Observable | Inputs | ||||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | Market Inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 39,050 | $ | 39,050 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 60 | 60 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | 39,110 | 39,110 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock warrant liability | (7,338 | ) | — | — | (7,338 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Subtotal | (7,338 | ) | — | — | (7,338 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 31,772 | $ | 39,110 | $ | — | $ | (7,338 | ) | ||||||||||||||||||||||||||||||||||||||||||
Company recognizes transfers into and out of the level 3 | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2009 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
August 2010 warrant — initial fair value at the date of issuance | (2,915 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Increase in fair value | (1,254 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2010 | (4,169 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
May 2011 warrant — initial fair value at the date of issuance | (9,438 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of warrants | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in fair value | 12,582 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2011 | (996 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
June 2012 warrant — initial fair value at the date of issuance | (4,832 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Increase in fair value | (1,510 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2012 | (7,338 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in fair value | 1,217 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2013 | $ | (6,121 | |||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities measured and recognized at fair value on a recurring basis | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Quoted | Significant | Significant | Balance | Quoted | Significant | Significant | Balance | |||||||||||||||||||||||||||||||||||||||||||
Prices in | other | Unobservable | as of | Prices in | other | Unobservable | as of | ||||||||||||||||||||||||||||||||||||||||||||
Active | Observable | Inputs | September 30, | Active | Observable | Inputs | September 30, | ||||||||||||||||||||||||||||||||||||||||||||
Markets for | Inputs | (Level 3) | 2012 | Markets for | Inputs | (Level 3) | 2013 | ||||||||||||||||||||||||||||||||||||||||||||
identical | (Level 2) | identical | (Level 2) | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets and | Assets and | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities related to Warrants | $ | — | $ | — | $ | 7,338 | $ | 7,338 | $ | — | $ | — | $ | 6,121 | $ | 6,121 | |||||||||||||||||||||||||||||||||||
Summary of changes in the fair value liabilities | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Balance at | Fair Value of | Unrealized | Balance | Fair Value of | Unrealized | Balance as of | ||||||||||||||||||||||||||||||||||||||||||||
September 30, | warrants | (gains) | as of | warrants | (gains) or | September 30, | |||||||||||||||||||||||||||||||||||||||||||||
2011 | upon | or losses | September 30, | upon | losses | 2013 | |||||||||||||||||||||||||||||||||||||||||||||
issuance | 2012 | issuance | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities related to Warrants | $ | 996 | $ | 4,832 | $ | 1,510 | $ | 7,338 | $ | (1,217 | ) | $ | 6,121 |
Net_Loss_per_Share_Tables
Net Loss per Share (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Net Loss Per Share [Abstract] | ' | ||||||||||||
Dilutive common shares excluded from the calculation of weighted average common shares outstanding | ' | ||||||||||||
Year Ended September 30, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Common shares issuable upon conversion of Series A Preferred Stock | 453,486 | 453,486 | — | ||||||||||
Common shares issuable upon conversion of Series B Preferred Stock | — | 3,605,607 | 1,950,000 | ||||||||||
Common shares underlying warrants issued for common stock | 2,875,647 | 5,006,398 | 5,006,398 | ||||||||||
Stock options | 1,365,350 | 1,546,454 | 1,920,051 | ||||||||||
Restricted stock units | 121,677 | 68,153 | 31,296 |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Property and Equipment [Abstract] | ' | ||||||||||||||
Property and equipment | ' | ||||||||||||||
September 30, | |||||||||||||||
2012 | 2013 | ||||||||||||||
Furniture and fixtures | $ | 324 | $ | 324 | |||||||||||
Leasehold improvements | 1,548 | 1,548 | |||||||||||||
Laboratory equipment | 1,945 | 2,062 | |||||||||||||
Manufacturing equipment | 655 | 655 | |||||||||||||
Facility equipment | 65 | 65 | |||||||||||||
Computer equipment and other | 1,308 | 1,308 | |||||||||||||
Sub-Total | 5,845 | 5,962 | |||||||||||||
Less: Accumulated depreciation and amortization | 4,293 | 4,931 | |||||||||||||
Total | $ | 1,552 | $ | 1,031 |
Commitments_Tables
Commitments (Tables) | 12 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments [Abstract] | ' | ||||
Minimum lease payments | ' | ||||
2014 | $ | 678 | |||
2015 | 588 | ||||
2016 | 555 | ||||
2017 | 565 | ||||
2018 | 580 | ||||
2019 | 493 | ||||
Total | $ | 3,459 | |||
Purchase commitments | ' | ||||
2014 | $ | 1,702 | |||
2015 | 4,929 | ||||
2016 | 4,654 | ||||
2017 | 4,792 | ||||
2018 | 3,677 | ||||
Total | $ | 19,754 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Provision (benefit) for income taxes | ' | ||||||||||||
Year Ended | |||||||||||||
September 30, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Current expense | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | 41 | 18 | 15 | ||||||||||
Tax provision | $ | 41 | $ | 18 | $ | 15 | |||||||
Reconciles amount of tax expense at federal statutory rate to tax provision (benefit) in operations | ' | ||||||||||||
Year Ended | |||||||||||||
September 30, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Federal statutory rate | 34 | % | 34 | % | 34 | % | |||||||
Federal taxes at statutory rate | $ | (3,587 | ) | $ | (7,028 | ) | (6,569 | ) | |||||
Tax expense on permanent differences (a) | (2,631 | ) | 1,137 | 163 | |||||||||
Tax benefit on research and business credits | — | — | — | ||||||||||
State taxes, net of federal tax effect | 19 | 12 | 10 | ||||||||||
State benefit, net operating loss | (163 | ) | (312 | ) | — | ||||||||
Valuation allowance increase (b) | 6,382 | 6,164 | 6,439 | ||||||||||
Connecticut research and development refund | — | — | — | ||||||||||
Reserve for uncertain tax positions | — | — | — | ||||||||||
Other | 21 | 45 | (28 | ) | |||||||||
Actual tax provision | $ | 41 | $ | 18 | $ | 15 | |||||||
(a) Permanent differences were derived from share based compensation and adjustments to common stock warrant liability. | |||||||||||||
(b) Net of the Section 382 Adjustment. | |||||||||||||
Liabilities for uncertain tax positions | ' | ||||||||||||
Year Ended | |||||||||||||
September 30, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Balance, beginning of year | $ | 86 | $ | 75 | $ | 75 | |||||||
Increase related to current year tax position | — | — | — | ||||||||||
Increase related to prior year's tax position | — | — | — | ||||||||||
Decrease related to prior year's tax position | (11 | ) | — | — | |||||||||
Balance, at end of year | $ | 75 | $ | 75 | $ | 75 | |||||||
Deferred tax assets and deferred tax liabilities | ' | ||||||||||||
September 30, | |||||||||||||
2012 | 2013 | ||||||||||||
Deferred Tax Assets | |||||||||||||
Net operating losses | $ | 24,969 | $ | 25,149 | |||||||||
Capitalized expense | 21,907 | 28,913 | |||||||||||
Research and development credits | 477 | 224 | |||||||||||
Depreciation of fixed assets | 51 | 445 | |||||||||||
Other | 453 | 283 | |||||||||||
Total deferred tax asset | 47,857 | 55,014 | |||||||||||
Valuation Allowance | (47,857 | ) | (55,014 | ) | |||||||||
Net Deferred Tax Assets | $ | — | $ | — | |||||||||
Financings_Tables
Financings (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Class of Warrant or Right [Line Items] | ' | ||||||||
Fair value assumptions used in accounting for warrant liability | ' | ||||||||
September 30, | September 30, | ||||||||
2012 | 2013 | ||||||||
June 2012 Financing | |||||||||
Stock price | $ | 2.97 | $ | 3.15 | |||||
Exercise price | $ | 2.66 | $ | 2.66 | |||||
Risk-free interest rate | 0.62 | % | 0.63 | % | |||||
Expected remaining term | 4.74 years | 3.74 years | |||||||
Expected volatility | 98 | % | 82 | % | |||||
Dividend yield | 0 | % | 0 | % | |||||
Warrants outstanding June 2012 registered direct | 2,749,469 | 2,749,469 | |||||||
The Company estimated the fair value for the May 2011 warrants using the Black-Scholes valuation model at the measurement dates of September 30, 2013 and 2012, respectively using the following assumptions: | |||||||||
September 30, | September 30, | ||||||||
2012 | 2013 | ||||||||
May 2011 Financing | |||||||||
Stock price | $ | 2.97 | $ | 3.15 | |||||
Exercise price | $ | 9.92 | $ | 9.92 | |||||
Risk-free interest rate | 0.31 | % | 0.63 | % | |||||
Expected remaining term | 3.63 years | 2.63 years | |||||||
Expected volatility | 82 | % | 77 | % | |||||
Dividend yield | 0 | % | 0 | % | |||||
Warrants outstanding May 2011 registered direct | 2,256,929 | 2,256,929 | |||||||
Private Placement [Member] | ' | ||||||||
Class of Warrant or Right [Line Items] | ' | ||||||||
Summary of changes in value of the warrant liability in private placement | ' | ||||||||
Balance at September 30, 2010 | $ | — | |||||||
Initial fair value, at the date of issuance | 9,438 | ||||||||
Decrease in fair value | (8,442 | ) | |||||||
Balance at September 30, 2011 | 996 | ||||||||
Increase in fair value | 709 | ||||||||
Balance at September 30, 2012 | $ | 1,705 | |||||||
Decrease in fair value | (542 | ) | |||||||
Balance at September 30, 2013 | $ | 1,163 | |||||||
May 2011 registered direct offering [Member] | ' | ||||||||
Class of Warrant or Right [Line Items] | ' | ||||||||
Summary of changes in value of the warrant liability in private placement | ' | ||||||||
Balance at September 30, 2011 | $ | — | |||||||
Initial fair value, at the date of issuance | 4,832 | ||||||||
Increase in fair value | 801 | ||||||||
Balance at September 30, 2012 | $ | 5,633 | |||||||
Decrease in fair value | (675 | ) | |||||||
Balance at September 30, 2013 | $ | 4,958 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Stockholders' Equity [Abstract] | ' | |||||||||||||
Summary of stock reserved for future issuance | ' | |||||||||||||
2010 stock incentive plan | 5,290,739 | |||||||||||||
2005 employee stock purchase plan | 475,000 | |||||||||||||
Common shares issuable upon conversion of Series B Preferred Stock | 1,950,000 | |||||||||||||
Warrants issued in connection with May 2011 registered direct offering | 2,256,929 | |||||||||||||
Warrants issued in connection with June 2012 private placement | 2,749,469 | |||||||||||||
Total | 12,722,137 | |||||||||||||
Summary of the stock option activity | ' | |||||||||||||
Options | Number | Weighted | Weighted | Aggregate | ||||||||||
Average | Average | Intrinsic Value | ||||||||||||
Exercise Price | Remaining | |||||||||||||
Contractual | ||||||||||||||
Life in Years | ||||||||||||||
Balance, September 30, 2004 | — | $ | — | $ | — | |||||||||
Granted | 96,358 | 5.64 | — | |||||||||||
Outstanding balance, September 30, 2005 | 96,358 | 5.64 | — | |||||||||||
Granted | 115,401 | 22.6 | — | |||||||||||
Forfeited, expired | 15,054 | 13.6 | — | |||||||||||
Outstanding balance, September 30, 2006 | 196,705 | 12.92 | — | |||||||||||
Granted | 238,961 | 55.84 | — | |||||||||||
Exercised | 886 | 5.64 | — | |||||||||||
Forfeited, expired | 13,283 | 22.6 | — | |||||||||||
Outstanding balance, September 30, 2007 | 421,497 | 27.2 | — | |||||||||||
Granted | 431,849 | 67.52 | — | |||||||||||
Exercised | 43,604 | 20.72 | — | |||||||||||
Forfeited, expired | 25,892 | 44.16 | — | |||||||||||
Outstanding balance, September 30, 2008 | 783,850 | 55.68 | — | |||||||||||
Granted | 152,875 | 10.76 | — | |||||||||||
Exercised | 4,416 | 5.64 | — | |||||||||||
Forfeited, expired | 80,398 | 55.52 | — | |||||||||||
Outstanding balance, September 30, 2009 | 851,911 | 47.24 | — | |||||||||||
Granted | 328,530 | 16.37 | — | |||||||||||
Exercised | 8,081 | 8.43 | — | |||||||||||
Forfeited, expired | 13,469 | 52.16 | — | |||||||||||
Outstanding balance, September 30, 2010 | 1,158,891 | 38.72 | — | |||||||||||
Granted | 290,834 | 6.36 | — | |||||||||||
Exercised | 104 | 5.64 | — | |||||||||||
Forfeited, expired | 84,271 | 38.48 | — | |||||||||||
Outstanding balance, September 30, 2011 | 1,365,350 | 32.68 | — | |||||||||||
Granted | 215,877 | 2.54 | — | |||||||||||
Forfeited, expired | 34,773 | 32.09 | — | |||||||||||
Outstanding balance September 30, 2012 | 1,546,454 | $ | 27.8 | $ | — | |||||||||
Granted | 486,000 | 2.43 | ||||||||||||
Exercised | 30,250 | 2.48 | ||||||||||||
Forfeited, expired | 82,153 | 15.37 | ||||||||||||
Outstanding balance September 30, 2013 | 1,920,051 | $ | 22.31 | 4 | $ | 445 | ||||||||
Exercisable shares, September 30, 2013 | 1,258,612 | $ | 32.14 | 3 | $ | 51 | ||||||||
Stock-based compensation expense associated with the RSUs | ' | |||||||||||||
September 30, | ||||||||||||||
2011 | 2012 | 2013 | ||||||||||||
Stock compensation expense — RSUs | $ | 585 | $ | 1,202 | $ | 363 | ||||||||
Summary of RSU activity | ' | |||||||||||||
Shares | Weighted | |||||||||||||
Average | ||||||||||||||
Grant-Date | ||||||||||||||
Fair Value | ||||||||||||||
Non-vested and outstanding balance at September 30, 2009 | — | $ | — | |||||||||||
Shares granted | 62,510 | 15.8 | ||||||||||||
Shares forfeited or expired | 246 | 15.8 | ||||||||||||
Non-vested and outstanding balance at September 30, 2010 | 62,264 | 15.8 | ||||||||||||
Changes during the period: | ||||||||||||||
Shares granted | 90,639 | 7.56 | ||||||||||||
Shares vested and issued | 22,435 | 17.2 | ||||||||||||
Shares forfeited or expired | 8,791 | 9.4 | ||||||||||||
Non-vested and outstanding balance at September 30, 2011 | 121,677 | 9.4 | ||||||||||||
Changes during the period: | ||||||||||||||
Shares granted | 274,189 | 2.36 | ||||||||||||
Shares vested and issued | 327,713 | 3.45 | ||||||||||||
Non-vested and outstanding balance at September 30, 2012 | 68,153 | $ | 10.51 | |||||||||||
Changes during the period: | ||||||||||||||
Shares granted | — | — | ||||||||||||
Shares vested and issued | 36,851 | 10.26 | ||||||||||||
Shares forfeited or expired | 6 | 15.8 | ||||||||||||
Non-vested and outstanding balance at September 30, 2013 | 31,296 | 10.48 |
Summary_Selected_Quarterly_Fin1
Summary Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Summary Selected Quarterly Financial Data (Unaudited) [Abstract] | ' | ||||||||||||||||||||||||||
Summary of selected quarterly financial data | ' | ||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||||||||||||||
December 31, | March 31, | June 30, | September 30, | ||||||||||||||||||||||||
2012 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net loss | $ | (3,669 | ) | $ | (5,220 | ) | $ | (9,631 | ) | $ | (815 | ) | |||||||||||||||
Basic and diluted net loss per common share(1) | $ | (0.26 | ) | $ | (0.37 | ) | $ | (0.66 | ) | $ | (0.04 | ) | |||||||||||||||
Weighted average common shares basic and diluted | 14,176,057 | 14,182,451 | 14,573,110 | 19,622,878 | |||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||||||||||||||
December 31, | March 31, | June 30, | September 30, | ||||||||||||||||||||||||
2011 | 2012 | 2012 | 2012 | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net loss | $ | (4,501 | ) | $ | (4,316 | ) | $ | (6,051 | ) | $ | (5,879 | ) | |||||||||||||||
Basic and diluted net loss per common share(1) | $ | (0.47 | ) | $ | (0.45 | ) | $ | (0.60 | ) | $ | (0.42 | ) | |||||||||||||||
Weighted average common shares basic and diluted | 9,673,529 | 9,688,384 | 10,152,194 |
Business_and_Basis_of_Presenta1
Business and Basis of Presentation (Details) | 1 Months Ended |
Jun. 30, 2012 | |
Business and Basis of Presentation (Textual) | ' |
Description of reverse stock split of outstanding common stock | 'one-for-four |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Black-Scholes pricing model assumptions | ' | ' | ' |
Expected life (in years), Minimum | '2 years 4 months 21 days | '3 years | '3 years 9 months 7 days |
Expected life (in years), Maximum | '4 years 9 months | '4 years 9 months | '5 years 3 months |
Expected volatility, Minimum | 80.00% | 58.00% | 65.00% |
Expected volatility, Maximum | 96.00% | 76.00% | 72.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate, Minimum | 0.25% | 0.39% | 0.75% |
Risk-free interest rate, Maximum | 0.75% | 0.91% | 1.97% |
Weighted-average grant date fair value | $2.43 | $2.54 | $6.36 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 118 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Jul. 30, 2012 | Jun. 30, 2012 | Feb. 29, 2012 | Sep. 30, 2010 | Sep. 30, 2009 | Dec. 03, 2003 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2010 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Award | Maximum [Member] | Minimum [Member] | 2010 Stock Incentive Plan | 2010 Stock Incentive Plan | 2010 Stock Incentive Plan | Furniture and fixtures [Member] | Leasehold Improvements [Member] | Laboratory Equipment [Member] | Manufacturing Equipment [Member] | Device Development [Member] | Facility Equipment [Member] | Computer Equipment [Member] | Computer software [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life of Property and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | 'Estimated useful life or remaining term of lease, whichever is shorter | '7 years | '5 years | '5 years | '3 years and 7 years | '5 years | '3 years |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total compensation cost related to non-vested options not yet recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $871 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock incentive plan, terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The 2010 Plan uses a "fungible share" concept under which any awards that are not a full-value award will be counted against the share limit as one (1) share for each share of common stock and any award that is a full-value award will be counted against the share limit as 1.5 shares for each one share of common stock. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual life of options granted | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | '7 years | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation number of shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,750,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation outstanding, number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,951,347 | 1,540,739 | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development | ' | ' | 14,296 | 12,315 | 13,597 | 155,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of national institute of health developing concentrated ultra-rapid-acting insulin formulation and glucagon formulation | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of awards for developing ultra rapid acting insulin and glucagon formulation | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate cost of each award for two years developing ultra rapid acting insulin and glucagon formulation | ' | ' | 580 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses incurred for development of insulin | ' | ' | 327 | 88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses incurred for development of novel and glucagon | ' | ' | 219 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted cash | ' | 60 | ' | 60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | 39,050 | 39,781 | 39,050 | 38,701 | 39,781 | ' | ' | ' | 22,922 | 54,640 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Escrow deposit | ' | ' | ' | ' | ' | ' | ' | ' | 1,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid from escrow account | ' | ' | ' | ' | ' | ' | ' | 500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount due from arbitrator | ' | ' | ' | ' | ' | ' | 55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash recieved from escrow account | ' | 945 | ' | 945 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marketable securities | ' | ' | ' | ' | ' | ' | ' | ' | 741 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual reserves recorded as research and development expense | ' | 186 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Costs associated with purchase of recombinant human insulin as research and development expense | ' | ' | 121 | 170 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intellectual property, useful life | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of intangible assets | ' | ' | 3 | 3 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment for impairment of long-lived assets | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deficit accumulated during the development stage | ' | 196,093 | 215,428 | 196,093 | ' | 215,428 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation for non-employees | ' | ' | ' | ' | -44 | 2,274 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unexercised warrants to purchase of common stock expired | 589,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation for employees and directors | ' | ' | $1,538 | $1,828 | $4,964 | $29,162 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurement_Details
Fair Value Measurement (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Cash and cash equivalents | $39,781 | $39,050 |
Liabilities: | ' | ' |
Common stock warrant liability | 6,121 | 7,338 |
Recurring [Member] | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 39,781 | 39,050 |
Restricted cash | ' | 60 |
Subtotal | 39,781 | 39,110 |
Liabilities: | ' | ' |
Common stock warrant liability | -6,121 | -7,338 |
Subtotal | 6,121 | 7,338 |
Total | 33,660 | 31,772 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 39,781 | 39,050 |
Restricted cash | ' | 60 |
Subtotal | 39,781 | 39,110 |
Liabilities: | ' | ' |
Common stock warrant liability | ' | ' |
Subtotal | ' | ' |
Total | 39,781 | 39,110 |
Recurring [Member] | Significant Other Observable Market Inputs (Level 2) [Member] | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | ' | ' |
Restricted cash | ' | ' |
Subtotal | ' | ' |
Liabilities: | ' | ' |
Common stock warrant liability | ' | ' |
Subtotal | ' | ' |
Total | ' | ' |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | ' | ' |
Restricted cash | ' | ' |
Subtotal | ' | ' |
Liabilities: | ' | ' |
Common stock warrant liability | -6,121 | -7,338 |
Subtotal | 6,121 | 7,338 |
Total | ($6,121) | ($7,338) |
Fair_Value_Measurement_Details1
Fair Value Measurement (Details 1) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 |
Reconcilliation of Level 3 changes | ' | ' | ' | ' |
Beginning Balance | ($7,338) | ($996) | ($4,169) | ' |
Initial fair value at the date of issuance of warrant on June 2012, May 2011 and August 2010 respectively | ' | -4,832 | -9,438 | -2,915 |
Exercise of warrants | ' | ' | 29 | ' |
Decrease (Increase) in fair value | 1,217 | -1,510 | 12,582 | -1,254 |
Ending Balance | ($6,121) | ($7,338) | ($996) | ($4,169) |
Fair_Value_Measurement_Details2
Fair Value Measurement (Details 2) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Liabilities measured and recognized at fair value on a recurring basis | ' | ' |
Derivative liabilities related to Warrants | $6,121 | $7,338 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Liabilities measured and recognized at fair value on a recurring basis | ' | ' |
Derivative liabilities related to Warrants | ' | ' |
Significant Other Observable Market Inputs (Level 2) [Member] | ' | ' |
Liabilities measured and recognized at fair value on a recurring basis | ' | ' |
Derivative liabilities related to Warrants | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Liabilities measured and recognized at fair value on a recurring basis | ' | ' |
Derivative liabilities related to Warrants | $6,121 | $7,338 |
Fair_Value_Measurement_Details3
Fair Value Measurement (Details 3) (Derivative liabilities related to Warrants [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2010 |
Derivative liabilities related to Warrants [Member] | ' | ' | ' |
Summary of changes in the fair value of the Company's Level 3 liabilities | ' | ' | ' |
Beginning Balance | $7,338 | $996 | $4,169 |
Fair Value of warrants upon issuance | ' | 4,832 | ' |
Unrealized (gains) or losses | -1,217 | 1,510 | ' |
Ending Balance | $6,121 | $7,338 | $4,169 |
Fair_Value_Measurement_Details4
Fair Value Measurement (Details Textual) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Measurement Textual [Abstract] | ' | ' |
Cash and cash equivalents, Fair value | $39,781 | $39,050 |
Accounts payable, Fair value | $246 | $285 |
Net_Loss_per_Share_Details
Net Loss per Share (Details) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Common shares issuable upon conversion of Series A Preferred Stock [Member] | ' | ' | ' |
Dilutive common shares excluded from the calculation of weighted average common shares outstanding | ' | ' | ' |
Amount of options, warrants, preferred stock and RSUs | ' | 453,486 | 453,486 |
Common shares issuable upon conversion of Series B Preferred Stock [Member] | ' | ' | ' |
Dilutive common shares excluded from the calculation of weighted average common shares outstanding | ' | ' | ' |
Amount of options, warrants, preferred stock and RSUs | 1,950,000 | 3,605,607 | ' |
Common shares underlying warrants issued for common stock [Member] | ' | ' | ' |
Dilutive common shares excluded from the calculation of weighted average common shares outstanding | ' | ' | ' |
Amount of options, warrants, preferred stock and RSUs | 5,006,398 | 5,006,398 | 2,875,647 |
Stock options [Member] | ' | ' | ' |
Dilutive common shares excluded from the calculation of weighted average common shares outstanding | ' | ' | ' |
Amount of options, warrants, preferred stock and RSUs | 1,920,051 | 1,546,454 | 1,365,350 |
Restricted stock units [Member] | ' | ' | ' |
Dilutive common shares excluded from the calculation of weighted average common shares outstanding | ' | ' | ' |
Amount of options, warrants, preferred stock and RSUs | 31,296 | 68,153 | 121,677 |
Net_Loss_per_Share_Details_Tex
Net Loss per Share (Details Textual) | 12 Months Ended |
Sep. 30, 2013 | |
Net Loss Per Share (Textual) | ' |
Warrants participating securities voting rights | 'One-for-one basis. |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Property and equipment | ' | ' |
Sub-Total | $5,962 | $5,845 |
Less: Accumulated depreciation and amortization | 4,931 | 4,293 |
Total | 1,031 | 1,552 |
Furniture and fixtures [Member] | ' | ' |
Property and equipment | ' | ' |
Sub-Total | 324 | 324 |
Leasehold improvements [Member] | ' | ' |
Property and equipment | ' | ' |
Sub-Total | 1,548 | 1,548 |
Laboratory equipment [Member] | ' | ' |
Property and equipment | ' | ' |
Sub-Total | 2,062 | 1,945 |
Manufacturing equipment [Member] | ' | ' |
Property and equipment | ' | ' |
Sub-Total | 655 | 655 |
Facility equipment [Member] | ' | ' |
Property and equipment | ' | ' |
Sub-Total | 65 | 65 |
Computer equipment and other [Member] | ' | ' |
Property and equipment | ' | ' |
Sub-Total | $1,308 | $1,308 |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Property and Equipment (Textual) | ' | ' | ' |
Depreciation expense | $638 | $722 | $934 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2005 | Jul. 31, 2006 | Jul. 31, 2006 | Jul. 31, 2006 | Jul. 31, 2006 | Jul. 31, 2006 | Jul. 31, 2006 | Jul. 31, 2006 | Jul. 31, 2006 | Jul. 31, 2006 | Jul. 31, 2006 |
In Thousands, except Share data, unless otherwise specified | Series B Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Common stock [Member] | Common stock [Member] | Mc Ginn Smith and Company Inc [Member] | Mc Ginn Smith and Company Inc [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Director [Member] | Director [Member] | |||
Warrant [Member] | Warrant [Member] | Common stock [Member] | Series B Convertible Preferred Stock [Member] | Common stock [Member] | Series B Convertible Preferred Stock [Member] | Common stock [Member] | |||||||
Related Party Transactions (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate number of share issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,071 | ' | 12,690 | ' |
Commission paid to placement agent | ' | ' | ' | $1,470 | ' | ' | ' | $350 | ' | ' | ' | ' | ' |
Expensed related to private placement | ' | ' | ' | 2,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares reserved for future issuance | 12,722,137 | ' | ' | ' | ' | ' | ' | 126,903 | ' | ' | ' | ' | ' |
Fair value of warrant | ' | ' | ' | 126 | 167 | 13 | ' | ' | ' | ' | ' | ' | ' |
Expected term | ' | ' | ' | ' | '3 years 6 months | ' | '3 years 6 months | ' | ' | ' | ' | ' | ' |
Expected volatility | ' | ' | ' | ' | 50.00% | ' | 50.00% | ' | ' | ' | ' | ' | ' |
Risk-free interest rate | ' | ' | ' | ' | 4.70% | ' | 5.05% | ' | ' | ' | ' | ' | ' |
Dividend yield | ' | ' | ' | ' | 0.00% | ' | 0.00% | ' | ' | ' | ' | ' | ' |
Warrants issued to purchase common stock | ' | 2,256,929 | ' | ' | ' | ' | ' | ' | 68,322 | ' | 20,496 | ' | 6,832 |
Warrant issued to purchase common stock in exchange of bonus | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150 | ' | ' |
Accrued Bonus | ' | ' | 113 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued Expense | ' | ' | $37 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_Details
Commitments (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Minimum lease payments | ' |
2014 | $678 |
2015 | 588 |
2016 | 555 |
2017 | 565 |
2018 | 580 |
2019 | 493 |
Total | $3,459 |
Commitments_Details_1
Commitments (Details 1) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Purchase commitments | ' |
2014 | $1,702 |
2015 | 4,929 |
2016 | 4,654 |
2017 | 4,792 |
2018 | 3,677 |
Total | $19,754 |
Commitments_Details_Textual
Commitments (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2010 | Sep. 30, 2013 | Mar. 30, 2010 | Dec. 31, 2010 | Dec. 31, 2012 | Sep. 30, 2013 |
Insulin | Laboratory Space [Member] | Office Space [Member] | Corporate Office [Member] | Chief Executive Officer Employment Agreement [Member] | Chief Executive Officer Employment Agreement [Member] | Chief Executive Officer Employment Agreement [Member] | Former Chief Scientific Officer General Release [Member] | Former Chief Scientific Officer General Release [Member] | Severance agreement [Member] | |||
Facility | ||||||||||||
Commitments (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of initial term of employment | ' | ' | ' | ' | ' | ' | 'March 29, 2010 to March 28, 2014. | ' | ' | ' | ' | ' |
Successive renewable period | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' |
Notice period prior to expiry of term | ' | ' | ' | ' | ' | ' | '120 days | ' | ' | ' | ' | ' |
Compensation payable for agreement | ' | ' | ' | ' | ' | ' | ' | ' | $450 | ' | ' | ' |
Target bonus of annual salary, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' |
Grant of options to purchase Company's common stock pursuant to the Company's 2010 Plan with Dr. De Souza | ' | ' | ' | ' | ' | ' | 175,000 | ' | ' | ' | ' | ' |
Vesting period of options | '7 years | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' |
Percentage of options vesting | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' |
Term of options vesting in equal monthly amounts | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' |
Termination of employment without cause entitlement with Dr. De Souza, Description | ' | ' | ' | ' | ' | ' | ' | '1.) two times his then current salary, plus two times his target annual bonus for the fiscal year in which he is terminated, plus the pro rata amount of his target annual bonus for the fiscal year in which he is terminated; 2.) COBRA benefits until the earlier of the end of the 24th month after the date his employment with the Company ends or the date his COBRA coverage expires; 3.) 24 months of acceleration of his outstanding equity compensation awards; and 4.) full vesting of his outstanding equity compensation awards, if the Company terminates his employment without cause, or he resigns within 12 months following a change in control, as defined in the agreement. | ' | ' | ' | ' |
Compensation amount due to change in control and severance agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,337 |
Charges recorded for salary, bonus and benefits continuation for twenty-four months | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,360 | ' | ' |
Period of charges recorded for benefit continuation | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' |
Option acceleration modification charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' |
Salary, bonus and benefits paid as per employment agreement terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,360 | ' |
Number of facilities leased | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additionally period for renewal of lease | ' | ' | ' | '1 year | '1 year | '5 years | ' | ' | ' | ' | ' | ' |
Leases amendment description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease provides for annual basic lease payments from February 1, 2014 through January 31, 2015 of $68, plus the annual Consumers Price Index ("CPI") increase for October, not to exceed 6%, plus operating expenses. | Lease provides for annual basic lease payments from February 1, 2014 through January 31, 2015 of $3, plus the annual CPI increase for October, not to exceed 6%, plus operating expenses. | Lease provides for annual basic lease payments from August 1, 2014 through July 31, 2019 of $388, plus the annual CPI increase for May, not to exceed 6%, plus operating expenses. | ||||||||||
Annual basic lease payments plus operating expenses | ' | ' | ' | 68 | 3 | 388 | ' | ' | ' | ' | ' | ' |
Percentage of increase in annual Consumers Price Index | ' | ' | ' | 6.00% | 6.00% | 6.00% | ' | ' | ' | ' | ' | ' |
Lease expenses | 646 | 636 | 633 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase commitment of insulin (In Kg.) | 160 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase commitment | 19,754 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment to Unilife Medical Solutions, Inc | $700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Current expense | ' | ' | ' |
Federal | ' | ' | ' |
State | 15 | 18 | 41 |
Tax provision | $15 | $18 | $41 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Reconciles of tax expense at federal statutory rate to tax provision (benefit) in operations | ' | ' | ' | |||
Federal statutory rate | 34.00% | 34.00% | 34.00% | |||
Federal taxes at statutory rate | ($6,569) | ($7,028) | ($3,587) | |||
Tax expense on permanent differences(a) | 163 | [1] | 1,137 | [1] | -2,631 | [1] |
Tax benefit on research and business credits | ' | ' | ' | |||
State taxes, net of federal tax effect | 10 | 12 | 19 | |||
State benefit, net operating loss | ' | -312 | -163 | |||
Valuation allowance increase (b) | 6,439 | [2] | 6,164 | [2] | 6,382 | [2] |
Connecticut research and development refund | ' | ' | ' | |||
Reserve for uncertain tax positions | ' | ' | ' | |||
Other | -28 | 45 | 21 | |||
Actual tax provision | $15 | $18 | $41 | |||
[1] | Permanent differences were derived from share based compensation and adjustments to common stock warrant liability. | |||||
[2] | Net of the Section 382 Adjustment. |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2009 |
Liabilities for uncertain tax positions | ' | ' | ' | ' |
Balance, beginning of year | $75 | $75 | $86 | $188 |
Increase related to current year tax position | ' | ' | ' | ' |
Increase related to prior year's tax position | ' | ' | ' | ' |
Decrease related to prior year's tax position | ' | ' | -11 | ' |
Balance, at end of year | $75 | $75 | $75 | $188 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets | ' | ' |
Net operating losses | $25,149 | $24,969 |
Capitalized expense | 28,913 | 21,907 |
Research and development credits | 224 | 477 |
Depreciation of fixed assets | 445 | 51 |
Other | 283 | 453 |
Total deferred tax asset | 55,014 | 47,857 |
Valuation Allowance | -55,014 | -47,857 |
Net Deferred Tax Assets | ' | ' |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Internal Revenue Code [Member] | ' |
Income Taxes (Textual) | ' |
Portion of federal losses expire unused due to Section 382 limitation | $55,929 |
Expiration of net operating loss carryforwards | ' |
Loss carry-forwards expire between 2024 and 2032. | |
Description of net operating loss carryforwards to reduce future taxable income | 'The utilization of such carry-forwards may be limited upon the occurrence of certain ownership changes, including the purchase or sale of stock by 5% shareholders and the offering of stock by the Company during any three-year period resulting in an aggregate change of more than 50% in the beneficial ownership of the Company |
U.S. federal tax [Member] | ' |
Income Taxes (Textual) | ' |
Total federal losses (prior to the Section 382 limitation) | 57,628 |
Limitations of federal research and development credit carryovers | ' |
Approximately $1,817. | |
State tax [Member] | ' |
Income Taxes (Textual) | ' |
Total federal losses (prior to the Section 382 limitation) | $112,240 |
Limitations of federal research and development credit carryovers | ' |
Approximately $339. |
Financings_Details
Financings (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Private Placement [Member] | ' | ' | ' |
Summary of changes in fair value of warrant liability | ' | ' | ' |
Beginning Balance | $5,633 | ' | ' |
Initial fair value at date of issuance | ' | 4,832 | ' |
Increase in fair value | ' | 801 | ' |
Decrease in fair value | -675 | ' | ' |
Ending Balance | 4,958 | 5,633 | ' |
May 2011 registered direct offering [Member] | ' | ' | ' |
Summary of changes in fair value of warrant liability | ' | ' | ' |
Beginning Balance | 1,705 | 996 | ' |
Initial fair value at date of issuance | ' | ' | 9,438 |
Increase in fair value | ' | 709 | ' |
Decrease in fair value | -542 | ' | -8,442 |
Ending Balance | $1,163 | $1,705 | $996 |
Financings_Details_1
Financings (Details 1) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
June 2012 Financing [Member] | ' | ' |
Fair value assumptions used in accounting for warrant liability | ' | ' |
Stock price | $3.15 | $2.97 |
Exercise price | $2.66 | $2.66 |
Risk-free interest rate | 0.63% | 0.62% |
Expected remaining term | '3 years 8 months 27 days | '4 years 8 months 25 days |
Expected volatility | 82.00% | 98.00% |
Dividend yield | 0.00% | 0.00% |
Warrants outstanding on June 2012 and May 2011 registered direct respectively | 2,749,469 | 2,749,469 |
May 2011 financing [Member] | ' | ' |
Fair value assumptions used in accounting for warrant liability | ' | ' |
Stock price | $3.15 | $2.97 |
Exercise price | $9.92 | $9.92 |
Risk-free interest rate | 0.63% | 0.31% |
Expected remaining term | '2 years 7 months 17 days | '3 years 7 months 17 days |
Expected volatility | 77.00% | 82.00% |
Dividend yield | 0.00% | 0.00% |
Warrants outstanding on June 2012 and May 2011 registered direct respectively | 2,256,929 | 2,256,929 |
Financings_Details_Textual
Financings (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 118 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2012 | 31-May-11 | Aug. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2008 | Sep. 30, 2007 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2011 | Jul. 22, 2013 | Jun. 24, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | 31-May-11 | Sep. 30, 2013 | 18-May-11 | 31-May-11 | 31-May-11 | 31-May-11 | Aug. 31, 2011 | Aug. 31, 2010 | Aug. 31, 2010 | 31-May-11 |
Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | June 2013 Public Offering | June 2013 Public Offering | June 2012 Private Placement [Member] | June 2012 Private Placement [Member] | June 2012 Private Placement [Member] | June 2012 Private Placement [Member] | June 2012 Private Placement [Member] | May 2011 financing [Member] | May 2011 financing [Member] | May 2011 financing [Member] | May 2011 financing [Member] | May 2011 financing [Member] | May 2011 financing [Member] | August 2010 financing [Member] | August 2010 financing [Member] | August 2010 financing [Member] | Registered Direct Offering [Member] | ||||||||||
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Series B Preferred Stock [Member] | Warrant [Member] | Common Stock [Member] | Series Preferred Stock [Member] | Warrant [Member] | Investor | Abc [Member] | ||||||||||||||||||||
Financing (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of shares under private placement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,482,760 | ' | ' | 4,250,020 | 3,605,607 | 2,749,469 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of shares under direct registered offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,018,736 | 453,486 | 2,256,929 | ' | ' | ' | ' |
Warrant exercise price | $2.66 | $9.92 | $18.86 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.66 | ' | ' | ' | ' | $9.92 | ' | ' | ' | ' | ' | ' | ' | ' | $9.92 |
Common shares issued for each warrant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '0.35 of a share of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '0.1625 of a share of common stock |
Price of unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.35 | $4.35 | $2.36 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15.72 | ' | $8.64 |
Warrants issuance date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27-Jun-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18-May-11 |
Expiration date of warrant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26-Jun-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17-May-16 |
Warrants expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years |
Proceed from issuance of private placement, net | ' | ' | ' | ' | $8,587 | ' | ' | ' | $8,587 | ' | ' | ' | ' | $19,200 | $17,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $28,000 |
Common shares issued after conversion of preferred stock | ' | ' | ' | 1,478,643 | ' | ' | ' | ' | 1,478,643 | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mimimum benefit owned by holder on conversion of preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.98% | ' | 9.98% | ' | ' | ' | 9.98% | ' | ' | ' | ' | ' |
Per share payment to preferred stock holder before common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' |
Voting rights of preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'No voting rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of filing of registration statement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Within 30 days after the closing of the 2012 Private Placement. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Declaration date of registration statement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13-Aug-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of purchase price company obligated to pay as liquidated damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of purchase price company obligated to pay as liquidated damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial fair value at date of issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,832 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,438 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of warrant liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,633 | 4,958 | ' | ' | ' | ' | 5,633 | ' | ' | ' | ' | 1,705 | ' | ' | ' | ' | ' | ' | ' | ' |
Follow up period of holders to pay consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants reset exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.70 | ' | $6.24 | ' |
Warrants exercised | ' | ' | ' | ' | ' | 50 | 112 | 423 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 | ' | ' | ' |
Warrants exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,550 | ' | ' | ' |
Exercise of warrants | ' | ' | ' | ' | ' | 50 | ' | ' | 585 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unexercised warrants expired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 589,000 | ' | ' | ' |
Number of institutional investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Units sold to institutional investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 599,550 | ' | ' |
Issuance of common stock and warrants to purchase additional shares of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 236,007 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 599,550 | ' | ' |
Purchase of additional common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 599,550 | ' | ' |
Net proceed from registered direct offering financing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,700 | ' | ' |
Stock price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.06 | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.89% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from adjustment to fair value of common stock warrant liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $801 | ' | ' | ' | ' | $709 | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Details
Stockholders Equity (Details) | Sep. 30, 2013 |
Summary of shares reserved for future issuance | ' |
Shares reserved for future issuance | 12,722,137 |
2010 stock incentive plan [Member] | ' |
Summary of shares reserved for future issuance | ' |
Shares reserved for future issuance | 5,290,739 |
2005 employee stock purchase plan [Member] | ' |
Summary of shares reserved for future issuance | ' |
Shares reserved for future issuance | 475,000 |
Common shares issuable upon conversion of Series B Preferred Stock [Member] | ' |
Summary of shares reserved for future issuance | ' |
Shares reserved for future issuance | 1,950,000 |
Warrants issued in connection with May 2011 registered direct offering [Member] | ' |
Summary of shares reserved for future issuance | ' |
Shares reserved for future issuance | 2,256,929 |
Warrants issued in connection with June 2012 private placement [Member] | ' |
Summary of shares reserved for future issuance | ' |
Shares reserved for future issuance | 2,749,469 |
Stockholders_Equity_Details_1
Stockholders' Equity (Details 1) (Stock options [Member], USD $) | 12 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2009 | Sep. 30, 2008 | Sep. 30, 2007 | Sep. 30, 2006 | Sep. 30, 2005 | |
Stock options [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of the stock option activity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance, Outstanding options, Number | 1,546,454 | 1,365,350 | 1,158,891 | 851,911 | 783,850 | 421,497 | 196,705 | 96,358 | ' |
Granted, Number | 486,000 | 215,877 | 290,834 | 328,530 | 152,875 | 431,849 | 238,961 | 115,401 | 96,358 |
Excercised, Number | 30,250 | ' | 104 | 8,081 | 4,416 | 43,604 | 886 | ' | ' |
Forfeited, expired, Number | 82,153 | 34,773 | 84,271 | 13,469 | 80,398 | 25,892 | 13,283 | 15,054 | ' |
Ending balance, Outstanding options, Number | 1,920,051 | 1,546,454 | 1,365,350 | 1,158,891 | 851,911 | 783,850 | 421,497 | 196,705 | 96,358 |
Exercisable options, Number | 1,258,612 | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance, Outstanding options, Weighted Average Exercise Price | $27.80 | $32.68 | $38.48 | $47.24 | $55.68 | $27.20 | $12.92 | $5.64 | ' |
Granted, Weighted Average Exercise Price | $2.43 | $2.54 | $6.36 | $16.37 | $10.76 | $67.52 | $55.84 | $22.60 | $5.64 |
Excercised, Weighted Average Exercise Price | $2.48 | ' | $5.64 | $8.43 | $5.64 | $20.72 | $5.64 | ' | ' |
Forfeited, expired, Weighted Average Exercise Price | $15.37 | $32.09 | $38.48 | $52.16 | $55.52 | $44.16 | $22.60 | $13.60 | ' |
Ending balance, Outstanding options, Weighted Average Exercise Price | $22.31 | $27.80 | $32.68 | $38.48 | $47.24 | $55.68 | $27.20 | $12.92 | $5.64 |
Exercisable options, Weighted Average Exercise Price | $32.14 | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding options, Weighted Average Remaining Contractual Life in Years | '4 years | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable options, Weighted Average Remaining Contractual Life in Years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding options, Aggregate Intrinsic Value | $445 | ' | ' | ' | ' | ' | ' | ' | ' |
Granted, Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excercised, Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited, expired, Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding options, Aggregate Intrinsic Value | ' | 445 | ' | ' | ' | ' | ' | ' | ' |
Exercisable options, Aggregate Intrinsic Value | $51 | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Details_2
Stockholders' Equity (Details 2) (USD $) | 12 Months Ended | 118 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 |
Stock-based compensation expense associated with the RSUs | ' | ' | ' | ' |
Stock compensation expense-RSUs | $1,538 | $1,828 | $4,964 | $29,162 |
Restricted Stock Units [Member] | ' | ' | ' | ' |
Stock-based compensation expense associated with the RSUs | ' | ' | ' | ' |
Stock compensation expense-RSUs | $363 | $1,202 | $585 | ' |
Stockholders_Equity_Details_3
Stockholders' Equity (Details 3) (USD $) | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | |
Summary of RSUs activities | ' | ' | ' | ' |
Non-vested and outstanding balance | 69,153 | 121,677 | 62,264 | ' |
Non-vested and outstanding balance, Weighted Average Grant-Date Fair Value | $10.51 | $9.40 | $15.80 | ' |
Changes during the period: | ' | ' | ' | ' |
Shares granted, Shares | ' | 274,189 | 90,639 | 62,510 |
Shares granted, Weighted Average Grant-Date Fair Value | ' | $2.36 | $7.56 | $15.80 |
Shares vested and issued, Shares | 36,851 | 327,713 | 22,435 | ' |
Shares vested and issued, Weighted Average Grant-Date Fair Value | $10.26 | $3.45 | $17.20 | ' |
Shares forfeited or expired , Shares | 6 | ' | 8,791 | 246 |
Shares forfeited or expired, Weighted Average Grant-Date Fair Value | $15.80 | ' | $9.40 | $15.80 |
Non-vested and outstanding balance | 31,296 | 69,153 | 121,677 | 62,264 |
Non-vested and outstanding balance, Weighted Average Grant-Date Fair Value | $10.48 | $10.51 | $9.40 | $15.80 |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 118 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Jul. 22, 2013 | Jun. 24, 2013 | Jun. 30, 2012 | 31-May-11 | Aug. 31, 2010 | Feb. 29, 2008 | 31-May-07 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Aug. 31, 2013 | Jun. 30, 2013 | 31-May-11 | 31-May-11 | Aug. 31, 2011 | Aug. 31, 2010 | Jul. 31, 2005 | Sep. 30, 2007 | Jul. 31, 2005 | Jun. 30, 2012 | Sep. 30, 2013 | Jul. 31, 2006 | Sep. 30, 2007 | Jun. 30, 2012 | Jun. 30, 2012 |
Series A Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | May 2011 financing [Member] | May 2011 financing [Member] | August 2010 financing [Member] | August 2010 financing [Member] | July 2005 Private Placement [Member] | July 2005 Private Placement [Member] | July 2005 Private Placement [Member] | June 2012 Private Placement [Member] | June 2012 Private Placement [Member] | July 2006 Private Placement [Member] | July 2006 Private Placement [Member] | June 2012 Financing [Member] | June 2012 Financing [Member] | |||||||||||||
Series A Convertible Preferred Stock [Member] | Series A Convertible Preferred Stock [Member] | Series A Convertible Preferred Stock [Member] | Series A Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | |||||||||||||||||||
Series A Warrants [Member] | |||||||||||||||||||||||||||
Stockholders Equity (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants issued to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,256,929 | ' | ' | 2,256,929 | 294,766 | ' | ' | ' | ' | ' | 2,749,469 | ' | ' | ' | 2,066,969 | 682,500 |
Warrant exercise price | ' | ' | $2.66 | $9.92 | $18.86 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9.92 | $9.92 | ' | ' | ' | ' | ' | $2.66 | ' | ' | ' | $2.66 | $2.66 |
Warrants reset exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.70 | ' | ' | ' | ' | $0.35 | ' | ' | ' | ' | ' |
Preferred stock, shares issued | ' | ' | ' | ' | ' | ' | ' | 1,950,000 | 5,419,551 | ' | 1,950,000 | ' | ' | ' | ' | 1,813,944 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description for conversion of stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The investor purchased units consisting of one share of Series A preferred stock and a warrant to purchase 0.1625 of a share of common stock. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price of unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15.72 | ' | ' | ' | $2.36 | ' | ' | ' | ' | ' |
Proceed from issuance of private placement, net | ' | ' | ' | ' | ' | ' | ' | ' | $8,587 | ' | $8,587 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Per share price of convertible preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mimimum benefit owned by holder on conversion of preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.98% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Per share payment to preferred stock holder before common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | 50,000,000 | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | 1,050,000 | ' | ' | ' | ' | 6,500,000 | ' | ' | ' |
Preferred Stock Shares Issued and Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | 0 | ' | ' |
Preferred stock issued under private placement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 569,000 | ' | ' | ' | ' | 5,380,711 | ' | ' | ' |
Period of filing of registration statement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Within 30 days after the closing of the 2012 Private Placement. | ' | ' | ' | ' |
Declaration date of registration statement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13-Aug-12 | ' | ' | ' | ' |
Minimum percentage of purchase price company obligated to pay as liquidated damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' |
Maximum percentage of purchase price company obligated to pay as liquidated damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' |
Registration rights agreement period, Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The stockholders could not demand registration until one hundred and eighty (180) days after the Company had effected a qualified initial public offering. | ' | ' | ' | ' | ' | ' | ' | ' |
Description of penalties under private placement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '(i) one and three quarters (1 ¾%) percent of the aggregate number of shares of underlying common stock for each month, or part thereof, after a ninety (90) day period that a registration statement was not filed with the SEC or (ii) one (1%) percent of the aggregate number of shares of underlying common stock for each month if the forgoing filed registration statement was not declared effective by the SEC within one hundred and twenty (120) days. | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Preferred Stock, Terms of Conversion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'In August 2013, 1,813,944 shares of the Company's Series A Convertible Preferred Stock, convertible at a 4:1 ratio, were converted into 453,483 shares of common stock | ' | 'Each share of Series A preferred stock is convertible into 0.25 of a share of the Company's common stock at any time at the option of the holder. | ' | ' | ' | 'Each share of Series A preferred stock was automatically into a number of shares of common stock equal to the quotient of $3.54 divided by $1.00 immediately subsequent to the date of the initial public offering. | ' | ' | 'Each share of Series B preferred stock is convertible into one share of the Company's common stock at any time at the option of the holder, except that the securities purchase agreement that the Company entered into in connection with the 2012 Private Placement (the Securities Purchase Agreement) provides that a holder will be prohibited from converting shares of Series B preferred stock into shares of common stock if, as a result of such conversion, such holder, together with its affiliates, would beneficially own more than 9.98% of the total number of shares of common stock then issued and outstanding. In the event of the Company's liquidation, dissolution or winding up, holders of the Series B preferred stock will receive a payment equal to $0.01 per share of Series B preferred stock before any proceeds are distributed to the holders of common stock. | ' | ' | ' | ' | ' |
Preferred Stock, Redemption Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.54 | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant received by placement agent under compensation agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 69,875 | ' | ' | ' | ' | ' | ' |
Period of warrants received by placement agent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' |
Expiration date of warrant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12-Jul-12 | ' | ' | ' | ' | ' | ' |
Accretion of fair value of beneficial charge on preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 603 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 603 | ' | ' | ' |
Common stock, shares issued | ' | ' | ' | ' | ' | ' | ' | 21,070,824 | 14,174,545 | ' | 21,070,824 | ' | 453,483 | ' | ' | ' | ' | ' | ' | ' | ' | 4,250,020 | ' | ' | ' | ' | ' |
Series B Preferred Stock issued to purchase common stock | ' | ' | 3,605,607 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,605,607 | ' | ' | ' | ' | ' |
Common shares issued after conversion of preferred stock | ' | ' | ' | ' | ' | ' | ' | 1,478,643 | ' | ' | 1,478,643 | ' | 1,813,944 | 176,964 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | ' | ' | ' | ' | ' | ' | 62,500,000 | 62,500,000 | ' | 62,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $0.01 | $0.01 | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Registered direct offering or financing (in shares) | ' | ' | ' | 3,018,736 | 599,550 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Series A Preferred Stock issued to purchase common stock | ' | ' | ' | 1,813,944 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of preferred stock and warrant | ' | ' | 17,100 | 28,000 | 8,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of preferred stock (in shares) | ' | ' | ' | ' | ' | ' | 1,601,749 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $0.01 | $0.01 | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares offered in follow on public offering | 236,007 | 4,482,760 | ' | ' | ' | 815,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares offered in follow on public offering, Per share price | $4.35 | $4.35 | ' | ' | ' | $62 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceed from issuance in follow on public offering | 19,200 | ' | ' | ' | ' | 46,817 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares sold in offering | ' | ' | ' | ' | ' | 137,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of common stock (in shares) | ' | ' | ' | ' | ' | ' | 1,437,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Per share price of shares offered in initial public offering | ' | ' | ' | ' | ' | ' | $60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross proceed from issuance of initial public offering | ' | ' | ' | ' | ' | ' | 86,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceed from issuance of shares in IPO | ' | ' | ' | ' | ' | ' | $78,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Details_Te1
Stockholders' Equity (Details Textual 1) (USD $) | 12 Months Ended | 13 Months Ended | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Restricted Stock Units [Member] | Restricted Stock Units [Member] | 2010 stock incentive plan [Member] | 2010 stock incentive plan [Member] | 2004 Stock Incentive Plan [Member] | 2005 employee stock purchase plan [Member] | 2005 employee stock purchase plan [Member] | 2005 employee stock purchase plan [Member] | 2005 Non-Employee Directors' Stock Option Plan [Member] | 2009 Restricted Stock Units [Member] | 2010 Restricted Stock Units [Member] | 2004 Stock Incentive Plan and 2010 Plan [Member] | ||||
Installments | Restricted Stock Units [Member] | Restricted Stock Units [Member] | Restricted Stock Units [Member] | ||||||||||||
Stockholders Equity (Additional Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum shares issued under plan | ' | ' | ' | ' | ' | ' | 3,750,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock outstanding under company's prior plans | ' | ' | ' | ' | ' | ' | 1,540,739 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock subjected to outstanding awards | ' | ' | ' | ' | ' | 1,951,347 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum contractual life of options granted | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of Share-based Payment Award | ' | ' | ' | ' | ' | 'Share limit as one (1) share for each share of common stock and any award that is a full-value award will be counted against the share limit as 1.5 shares for each one share of common stock. | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum period to exercise vested shares by employees after termination of service | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' |
Vesting period | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '4 years | '3 years | ' |
Contribution by eligible employees under purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' |
Description of purchase price | ' | ' | ' | ' | ' | ' | ' | ' | 'Lower of: 85% of the fair market value per share on the start date of the offering period in which the employee is enrolled or 85% of the fair market value per share on the semi-annual purchase date. | ' | ' | ' | ' | ' | ' |
Limitation upon a participant's right to acquire common stock | ' | ' | ' | ' | ' | ' | ' | ' | '5% or more | ' | ' | ' | ' | ' | ' |
Maximum period with in which election must be made | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' |
Length of offering period | ' | ' | ' | ' | ' | ' | ' | ' | '27 months | ' | ' | ' | ' | ' | ' |
Compensation cost in connection with the purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | $5 | $16 | $53 | ' | ' | ' | ' |
Common stock reserved for issuance pursuant to purchase rights to be granted | ' | ' | ' | ' | ' | ' | ' | ' | 475,000 | ' | ' | ' | ' | ' | ' |
Provision for share replenishment | ' | ' | ' | ' | ' | ' | ' | ' | 'Lesser of 1% of the total number of shares outstanding on that date or 25,000 shares. | ' | ' | ' | ' | ' | ' |
Share issued under purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | 366,926 | 355,321 | 341,097 | ' | ' | ' | ' |
Bonus shares issued to employees | ' | ' | ' | ' | ' | ' | ' | ' | 108,074 | 94,679 | 83,903 | ' | ' | ' | ' |
Shares reserved and available for issuance under the purchase plan | 12,722,137 | ' | ' | ' | ' | 5,290,739 | ' | ' | 475,000 | ' | ' | 125,000 | ' | ' | ' |
Initial option to purchase common stock received by Non-employee director | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,250 | ' | ' | ' |
Option to purchase common stock by Non-employee first elected director | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,250 | ' | ' | ' |
Annual option to purchase common stock received by Non-employee director | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' |
RSUs issued to settle bonus liability, (in shares) | ' | ' | ' | ' | 191,719 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate amount of discretionary cash bonuses | ' | ' | ' | ' | 823 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued liabilities and expenses | ' | ' | ' | ' | 823 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional paid-in-capital | ' | ' | ' | 582 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual forfieture rate for employee and director options | ' | ' | ' | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares vested | 36,851 | 327,713 | 22,435 | 374,925 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards vest expensed year one percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' |
Awards vest expensed year two percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' |
Awards vest expensed year three percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' |
Number of vesting installments | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized stock-based compensation expense related to RSU | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50 |
Total compensation cost related to non-vested options not yet recognized, Period | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) | 12 Months Ended |
Sep. 30, 2013 | |
Employee Benefit Plan (Textual) | ' |
Maximum Annual Contribution Per Employee, Percent | 100.00% |
Reverse_Stock_Splits_Details
Reverse Stock Splits (Details) (USD $) | 1 Months Ended | ||||
Jun. 30, 2012 | Apr. 30, 2007 | Nov. 01, 2012 | Jun. 11, 2012 | Apr. 12, 2007 | |
Reverse Stock Split (Textual) | ' | ' | ' | ' | ' |
Number of authorized shares after post split | ' | ' | 25,000,000 | 25,000,000 | ' |
Reverse stock split, description | ' | 'The Company completed a 0.7085 for one (0.7085:1) reverse stock split rounding all fractional shares down to the next full share. | ' | ' | ' |
Authorized common shares prior to reverse stock split | ' | ' | 625,000,000 | 100,000,000 | ' |
Fractional shares issued from in connection with the reverse stock split | 0 | ' | ' | ' | ' |
Common stock outstanding after reverse split | ' | ' | ' | ' | 2,000,957 |
Cash paid during reverse stock splits in lieu of fractional shares | $0.30 | ' | ' | ' | ' |
Summary_Selected_Quarterly_Fin2
Summary Selected Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 10 Months Ended | 12 Months Ended | 118 Months Ended | ||||||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2004 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2009 | Sep. 30, 2008 | Sep. 30, 2007 | Sep. 30, 2006 | Sep. 30, 2005 | Sep. 30, 2013 | |||||||||||
Summary of selected quarterly financial data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net loss | ($815) | ($9,631) | ($5,220) | ($3,669) | ($5,879) | ($6,051) | ($4,316) | ($4,501) | ($774) | ($19,335) | ($20,747) | ($10,592) | ($38,290) | ($43,270) | ($43,361) | ($22,548) | ($8,068) | ($3,383) | ($210,368) | |||||||||||
Basic and diluted net loss per common share (1) | ($0.04) | [1] | ($0.66) | [1] | ($0.37) | [1] | ($0.26) | [1] | ($0.42) | [1] | ($0.60) | [1] | ($0.45) | [1] | ($0.47) | [1] | ' | ($1.24) | [2] | ($1.91) | [2] | ($1.36) | [2] | ' | ' | ' | ' | ' | ' | ' |
Weighted average common shares basic and diluted | 19,622,878 | 14,573,110 | 14,182,451 | 14,176,057 | 13,982,826 | 10,152,194 | 9,688,384 | 9,673,529 | ' | 15,650,538 | [2] | 10,882,688 | [2] | 7,788,741 | [2] | ' | ' | ' | ' | ' | ' | ' | ||||||||
[1] | Basic earnings (loss) per share calculation for the third and fourth quarter include the weighted average effect of stock issuances; therefore, the sum of the quarterly earnings per share will not equal full-year earnings per share amounts which reflect the weighted average effect on an annual basis. | |||||||||||||||||||||||||||||
[2] | Restated for a one for four (1:4) reverse stock split effective on June 11, 2012. |