Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 29, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'AERI | ' |
Entity Registrant Name | 'AERIE PHARMACEUTICALS INC | ' |
Entity Central Index Key | '0001337553 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 23,273,626 |
Balance_Sheets
Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $4,619 | $2,925 |
Prepaid expenses and other current assets | 117 | 113 |
Deferred offering costs | 2,330 | ' |
Total current assets | 7,066 | 3,038 |
Furniture, fixtures and equipment, net | 114 | 133 |
Other assets, net | 62 | 48 |
Total assets | 7,242 | 3,219 |
Current liabilities | ' | ' |
Accounts payable and other current liabilities | 3,175 | 1,437 |
Notes payable, net of discount-related parties | 14,433 | 2,331 |
Interest payable-related parties | 504 | 16 |
Total current liabilities | 18,112 | 3,784 |
Warrants liability-related parties | 11,485 | 2,456 |
Total liabilities | 29,597 | 6,240 |
Commitments and contingencies (Note 9) | ' | ' |
Convertible preferred stock | ' | ' |
Convertible preferred stock | 61,311 | 60,898 |
Stockholders' deficit | ' | ' |
Common stock, $0.001 par value; 22,000,000 shares authorized as of September 30, 2013 and 20,000,000 shares authorized as of December 31, 2012; 1,021,209 and 964,880 shares issued and outstanding at September 30, 2013 (unaudited) and December 31, 2012, respectively | 1 | 1 |
Additional paid-in capital | 1,123 | 4 |
Deficit accumulated during the development stage | -84,790 | -63,924 |
Total stockholders' deficit | -83,666 | -63,919 |
Total liabilities, convertible preferred stock and stockholders' deficit | 7,242 | 3,219 |
Convertible Preferred Stock Series A-1 [Member] | ' | ' |
Convertible preferred stock | ' | ' |
Convertible preferred stock | 1,000 | 1,000 |
Convertible Preferred Stock Series A-2 [Member] | ' | ' |
Convertible preferred stock | ' | ' |
Convertible preferred stock | 10,000 | 10,000 |
Convertible Preferred Stock Series A-3 [Member] | ' | ' |
Convertible preferred stock | ' | ' |
Convertible preferred stock | 20,979 | 20,979 |
Convertible Preferred Stock Series A-4 [Member] | ' | ' |
Convertible preferred stock | ' | ' |
Convertible preferred stock | 4,826 | 4,606 |
Convertible Preferred Stock Series B [Member] | ' | ' |
Convertible preferred stock | ' | ' |
Convertible preferred stock | $24,506 | $24,313 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Convertible preferred stock, par value | $0.00 | $0.00 |
Convertible preferred stock, shares authorized | 87,872,909 | 82,672,909 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 22,000,000 | 20,000,000 |
Common stock, shares issued | 1,021,209 | 964,880 |
Common stock, shares outstanding | 1,021,209 | 964,880 |
Convertible Preferred Stock Series A-1 [Member] | ' | ' |
Convertible preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Convertible preferred stock, shares issued | 2,000,000 | 2,000,000 |
Convertible preferred stock, shares outstanding | 2,000,000 | 2,000,000 |
Convertible Preferred Stock Series A-2 [Member] | ' | ' |
Convertible preferred stock, shares authorized | 10,010,029 | 10,010,029 |
Convertible preferred stock, shares issued | 10,000,000 | 10,000,000 |
Convertible preferred stock, shares outstanding | 10,000,000 | 10,000,000 |
Convertible Preferred Stock Series A-3 [Member] | ' | ' |
Convertible preferred stock, shares authorized | 22,479,476 | 22,479,476 |
Convertible preferred stock, shares issued | 20,979,476 | 20,979,476 |
Convertible preferred stock, shares outstanding | 20,979,476 | 20,979,476 |
Convertible Preferred Stock Series A-4 [Member] | ' | ' |
Convertible preferred stock, shares authorized | 5,683,404 | 5,683,404 |
Convertible preferred stock, shares issued | 4,895,904 | 4,895,904 |
Convertible preferred stock, shares outstanding | 4,895,904 | 4,895,904 |
Convertible Preferred Stock Series B [Member] | ' | ' |
Convertible preferred stock, shares authorized | 47,700,000 | 42,500,000 |
Convertible preferred stock, shares issued | 22,727,273 | 22,727,273 |
Convertible preferred stock, shares outstanding | 22,727,273 | 22,727,273 |
Statements_of_Operations_and_C
Statements of Operations and Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | 99 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Operating expenses | ' | ' | ' | ' | ' |
General and administrative | ($3,287) | ($1,416) | ($6,693) | ($3,701) | ($26,590) |
Research and development | -2,399 | -1,373 | -8,727 | -7,305 | -51,876 |
Loss from operations | -5,686 | -2,789 | -15,420 | -11,006 | -78,466 |
Other income (expense)-net | -5,062 | -803 | -5,446 | -427 | -6,188 |
Net loss | -10,748 | -3,592 | -20,866 | -11,433 | -84,654 |
Comprehensive loss | -10,748 | -3,592 | -20,866 | -11,433 | -84,654 |
Net loss attributable to common stockholders-basic and diluted | ($10,887) | ($3,730) | ($21,279) | ($11,845) | ' |
Net loss per share attributable to common stockholders-basic and diluted | ($10.81) | ($3.87) | ($21.61) | ($12.38) | ' |
Weighted average number of common shares outstanding-basic and diluted | 1,006,893 | 964,880 | 984,727 | 957,079 | ' |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 9 Months Ended | 99 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Cash flows from operating activities | ' | ' | ' |
Net loss | ($20,866) | ($11,433) | ($84,654) |
Adjustments to reconcile net loss to net cash used in operating activities | ' | ' | ' |
Depreciation | 47 | 104 | 933 |
Amortization and accretion costs related to notes payable-related parties | 2,377 | ' | 3,774 |
Gain on conversion of notes payable | ' | ' | -821 |
Stock-based compensation | 1,531 | 292 | 2,561 |
Interest payable-related parties | 488 | ' | 1,625 |
Change in fair value measurements | 3,850 | 441 | 3,851 |
Changes in operating assets and liabilities | ' | ' | ' |
Prepaid, current and other assets | -18 | 39 | -179 |
Accounts payable and other current liabilities | 1,025 | -1,395 | 2,481 |
Net cash used in operating activities | -11,566 | -11,952 | -70,429 |
Cash flows from investing activities | ' | ' | ' |
Purchase of furniture, fixtures and equipment | -28 | -51 | -1,047 |
Net cash provided by (used in) investing activities | -28 | -51 | -1,047 |
Cash flows from financing activities | ' | ' | ' |
Proceeds from sale of preferred stock | ' | ' | 45,000 |
Payments of stock issuance costs | ' | ' | -1,216 |
Proceeds from notes payable to related parties | 15,000 | ' | 34,778 |
Dividends paid | ' | ' | -130 |
Payments of debt issuance costs | ' | ' | -115 |
Proceeds from sale of common stock | ' | ' | 3 |
Proceeds from exercise of stock options | 1 | 6 | 16 |
Payments of long-term debt | ' | ' | -528 |
Payments of initial public offering costs | -1,713 | ' | -1,713 |
Net cash provided by financing activities | 13,288 | 6 | 76,095 |
Net change in cash and cash equivalents | 1,694 | -11,997 | 4,619 |
Beginning of period | 2,925 | 15,068 | ' |
End of period | 4,619 | 3,071 | 4,619 |
Noncash financing activities | ' | ' | ' |
Conversion of long-term debt into preferred stock | ' | ' | 17,364 |
Debt discount attributable to warrants | 5,275 | ' | 7,724 |
Accretion from conversion of note payable to related parties | 220 | 219 | 755 |
Accretion of stock issuance costs | 193 | 193 | 722 |
Deferred offering costs | $617 | ' | $617 |
The_Company
The Company | 9 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ' | |
The Company | ' | |
1 | The Company | |
Aerie Pharmaceuticals, Inc. (the “Company”) is a development stage pharmaceutical company focused on the discovery, development and commercialization of topical, small molecule drugs to treat patients with glaucoma and other diseases of the eye. Incorporated in the State of Delaware on June 22, 2005, the Company has its corporate headquarters in Bedminster, New Jersey, conducts research in Research Triangle Park, North Carolina, and has an office in Newport Beach, California. All technology of the Company is based on “own use” research and development. | ||
To date, the Company is in the development stage since it has not yet commenced primary operations or generated significant revenue. The Company’s activities since inception primarily consisted of developing product and technology rights, raising capital and performing research and development activities. The Company has no current source of revenue to sustain its present activities, and it does not expect to generate revenue until and unless it receives regulatory approval of and successfully commercializes its product candidates. | ||
The accompanying financial statements have been prepared on a basis that assumes the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has funded its operations as of September 30, 2013 primarily through the sale of convertible preferred stock and issuance of convertible notes. In October 2013, the Company completed its initial public offering and issued 6,720,000 shares of its common stock at an initial offering price of $10.00 per share (Note 11). In addition, the Company sold an additional 1,008,000 shares of common stock directly to its underwriters when they exercised their over-allotment option in full at the initial offering price of $10.00 per share. The Company received net proceeds from the initial public offering of approximately $68.3 million, after deducting underwriting discounts and commissions of $5.4 million and expenses of $3.6 million. Including the net proceeds from the initial public offering, the Company estimates that it has sufficient funding to sustain operations through approximately mid-2016. Accordingly, the Company will be required to obtain further funding through other public or private offerings, debt financing, collaboration and licensing arrangements or other sources. Adequate additional funding may not be available to the Company on acceptable terms, or at all. If the Company is unable to raise capital when needed or on attractive terms, it would be forced to delay, reduce or eliminate its research and development programs or commercialization efforts. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||
2 | Significant Accounting Policies | ||||||||||||||||
Basis of Presentation | |||||||||||||||||
The Company’s interim financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the Company has made all adjustments, which include normal recurring adjustments necessary for a fair statement of the Company’s financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These interim financial statements should be read in conjunction with the audited financial statements and accompanying notes for the year ended December 31, 2012 included in the Company’s final prospectus dated October 24, 2013 filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, with the Securities and Exchange Commission. The results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or period. | |||||||||||||||||
Additionally, the Company closed the aforementioned initial public offering in October 2013 as further described in Note 11 to the financial statements. As a result, there have been significant changes to the Company’s capital structure subsequent to the date of these financial statements. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of income and expenses during the reporting periods. Significant items subject to such estimates and assumptions include the valuation of stock options and warrants and operating expense accruals. | |||||||||||||||||
Reverse Stock Split | |||||||||||||||||
The Company effected a 1-for-5 reverse stock split of its common stock on October 8, 2013. Accordingly, all share and per share amounts related to common stock and options for all periods presented in these financial statements and notes thereto, have been adjusted retroactively to reflect this reverse stock split. The Company’s preferred stock was not subject to the reverse stock split. | |||||||||||||||||
Equity Issuances in the Quarter Ended September 30, 2013 | |||||||||||||||||
In the context of its initial public offering, the Company determined that the probability of the conversion of preferred stock into common stock, based on the consent from the holders of the requisite number of preferred shares, was high as of September 30, 2013. As a result, the allocation of the determined equity value assumed conversion of all preferred stock into common stock. For financial reporting purposes, based on recommendations from management and taking into account advice and assistance provided by third-party valuation consultants engaged to assist in such valuations, the Company’s board of directors determined that the fair value of its common stock for all equity transactions during the quarter ended September 30, 2013 and all transactions that require fair value measurement as of September 30, 2013 was consistent with the initial public offering price of $10.00. Accordingly, for the quarter ended September 30, 2013, the Company recognized a stock-based compensation charge of $0.2 million related to stock options granted on August 26, 2013 and September 12, 2013 and $0.7 million related to the remeasurement of grants to non-employees. The total unrecognized stock-based compensation expense related to the August and September 2013 option grants was $13.6 million and is expected to be recognized ratably through 2017, which represents the expected vesting period of the options (Note 8). In addition, the Company measured the stock purchase warrants issued on August 9, 2013 and September 30, 2013 using the initial public offering price as the deemed fair value of its common stock, resulting in an initial measurement of the warrant liability of $2.0 million and $1.4 million, respectively (Note 7). | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The Company records certain financial assets and liabilities at fair value in accordance with the provisions of ASC Topic 820 on fair value measurements. As defined in the guidance, fair value, defined as an exit price, represents the amount that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants. As a result, fair value is a market-based approach that should be determined based on assumptions that market participants would use in pricing an asset or a liability. | |||||||||||||||||
The Company’s material financial instruments consist primarily of cash and cash equivalents, other current assets, accounts payable, accrued expenses, long-term debt and stock purchase warrant liabilities. The fair value of cash and cash equivalents, other current assets, accounts payable and accrued expenses approximate their respective carrying values due to the short-term nature of these instruments. The Company has determined its stock purchase warrants liability to be Level 3 fair value measurement (Note 7). | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In July 2013, the FASB issued ASU 2013-11 which is an amendment to the accounting guidance on income taxes. This guidance provides clarification on the financial statement presentation of an unrecognized benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendment will be effective for the Company for interim and annual periods beginning after December 15, 2013, with early adoption permitted. The adoption of this standard is not expected to have a material impact on the Company’s financial statements. | |||||||||||||||||
In February 2013, the FASB issued ASU 2013-02 Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires that public and non-public companies present information about reclassification adjustments for accumulated other comprehensive income in their annual financial statement in a note or on the face of the financial statements. Public companies are also required to provide this information in interim financial statements. The new disclosure requirements are effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The adoption of the provisions of this guidance did not have a material impact on the Company’s results of operations, cash flows and financial position as the Company’s net income is equal to its comprehensive income. | |||||||||||||||||
In June 2011, the FASB issued amended guidance intended to increase the prominence of items reported on other comprehensive income (loss). This amended guidance requires that all non-owner changes in stockholders’ equity (deficit) be presented in a single continuous statement of comprehensive income (loss) or in two separate but consecutive statements. The amended guidance became effective for periods beginning after December 15, 2011. The Company has applied this guidance beginning with its financial information for the year ended December 31, 2012. This amended guidance affects presentation, but does not have a material effect on the Company’s financial statements. | |||||||||||||||||
Net Loss per Common Share | |||||||||||||||||
Basic net loss per share attributable to common stock (“Basic EPS”) is calculated by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period, without consideration for potential common stock instruments. Net loss attributable to common stockholders is calculated by adjusting the Company’s net loss for accretion on convertible preferred stock (Note 6). Diluted net loss per share attributable to common stock (“Diluted EPS”) gives effect to all dilutive potential shares of common stock outstanding during this period. For Diluted EPS, net loss attributable to common stockholders used in calculating Basic EPS is adjusted for certain items related to the dilutive securities. | |||||||||||||||||
For all periods presented, the Company’s potential common stock equivalents, which include convertible preferred stock, stock options, notes payable to related parties and stock purchase warrants, have been excluded from the computation of diluted net loss per common share attributable to common stockholders as their inclusion would have the effect of reducing the net loss per common share. Therefore, the denominator used to calculate both basic and diluted net loss per common stock is the same in all periods presented. The Company’s potential common stock equivalents that have been excluded from the computation of diluted net loss per share attributable to common stockholders for all periods presented because of their antidilutive effect consist of the following: | |||||||||||||||||
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||||
SEPTEMBER 30, | SEPTEMBER 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Convertible preferred stock | 60,602,653 | 60,602,653 | 60,602,653 | 60,602,653 | |||||||||||||
Outstanding stock options | 3,189,660 | 1,209,200 | 3,189,660 | 1,209,200 | |||||||||||||
Notes and interest payable to related parties(1) | $ | 18,504,000 | $ | — | $ | 18,504,000 | $ | — | |||||||||
Stock purchase warrants | 6,388,431 | 2,297,529 | 6,388,431 | 2,297,529 | |||||||||||||
Unvested restricted common stock awards | 317,900 | — | 317,900 | — | |||||||||||||
-1 | The 2012 Notes and accrued interest thereon are convertible into capital stock at the option of the holders according to the terms of the 2012 Note and Warrant Agreement. See Note 5. |
Other_Income_Expense_Net
Other Income (Expense), Net | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||||||||||
Other Income (Expense), Net | ' | ||||||||||||||||||||
3 | Other Income (Expense), Net | ||||||||||||||||||||
Other income (expense), net consists of the following: | |||||||||||||||||||||
THREE MONTHS ENDED | NINE MONTHS ENDED | PERIOD FROM | |||||||||||||||||||
SEPTEMBER 30, | SEPTEMBER 30, | INCEPTION | |||||||||||||||||||
(JUNE 22, 2005) TO | |||||||||||||||||||||
SEPTEMBER 30, | |||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||
Interest expense | $ | (1,477 | ) | $ | (15 | ) | $ | (2,865 | ) | $ | (15 | ) | $ | (5,399 | ) | ||||||
Gain on conversion of notes payable to related parties | — | — | — | — | 821 | ||||||||||||||||
Sale of New Jersey state tax benefit | — | — | 1,268 | — | 1,268 | ||||||||||||||||
(Expense)/income due to change in fair value measurements(1) | (3,585 | ) | (788 | ) | (3,850 | ) | (441 | ) | (3,851 | ) | |||||||||||
Other income, net | — | — | 1 | 29 | 973 | ||||||||||||||||
$ | (5,062 | ) | $ | (803 | ) | $ | (5,446 | ) | $ | (427 | ) | $ | (6,188 | ) | |||||||
-1 | Includes change in fair value of warrant liabilities and change in fair value of a certain conversion feature related to the 2012 Notes that was determined to be an embedded derivative requiring bifurcation and separate accounting. See Note 7 and Note 5, respectively. |
Accounts_Payable_Other_Current
Accounts Payable & Other Current Liabilities | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accounts Payable & Other Current Liabilities | ' | ||||||||
4 | Accounts Payable & Other Current Liabilities | ||||||||
Accounts payable and other current liabilities consist of the following: | |||||||||
(in thousands) | SEPTEMBER 30, | DECEMBER 31, | |||||||
2013 | 2012 | ||||||||
Accounts payable | $ | 1,126 | $ | 174 | |||||
Employee benefits and compensation related accruals(1) | 1,051 | 400 | |||||||
Accrued expenses and other liabilities | 998 | 863 | |||||||
$ | 3,175 | $ | 1,437 | ||||||
-1 | Comprised of accrued bonus, accrued vacation and accrued severance liabilities. |
Notes_Payable
Notes Payable | 9 Months Ended | |
Sep. 30, 2013 | ||
Debt Disclosure [Abstract] | ' | |
Notes Payable | ' | |
5 | Notes Payable | |
On December 7, 2012, the Company authorized the sale of convertible notes (the “2012 Notes”) to related parties in the aggregate principal amount of $15.0 million. The 2012 Notes accrue interest at a rate of 8% per annum, with principal plus accrued interest thereon due upon maturity at September 30, 2013. The 2012 Notes are convertible into capital stock at the option of the holders upon the closing of an equity financing that raises at least $15.0 million, a qualified initial public offering, liquidation or any reorganization, consolidation or merger. The Company may, in its discretion, request a subsequent closing when its cash and cash equivalents balance drops below $1.5 million. The initial closing comprised of five individual convertible notes with an aggregate principal balance of $3.0 million. As of December 31, 2012, $12.0 million of 2012 Notes were authorized and available for sale. On March 28, 2013, May 23, 2013 and August 9, 2013, the Company completed the second, third and fourth closing of the 2012 Notes, respectively. The closings each comprised of five individual convertible notes with aggregate principal balances of $3.0 million, $4.5 million and $4.5 million, respectively. On August 9, 2013, the Company amended the agreements relating to the 2012 Notes. The amendment authorized the sale of an additional $3.0 million of convertible notes to related parties, resulting in an aggregate principal amount of $18.0 million being authorized. Additionally, the amendment extended the maturity date of the 2012 Notes from September 30, 2013 to December 31, 2013 and the issuance period through November 30, 2013. No other terms and conditions of the agreements were changed as part of the amendment. In accordance with ASC 470 Debt, the amendment met the criteria of a troubled debt restructuring and the amortization of the debt discount was revised to align with a new effective interest rate determined as of the amendment date. No gain was recorded as part of the restructuring. On September 30, 2013, the Company completed the fifth closing of the 2012 Notes. Aggregate proceeds to the Company were $3.0 million. The Company classified all convertible notes and related accrued interest as current obligations as of September 30, 2013 and December 31, 2012. | ||
In connection with the issuance of the 2012 Notes, the Company determined that a certain conversion feature was an embedded derivative requiring bifurcation and separate accounting. To estimate the fair value, the Company compared the net present value of expected cash flows of the issued 2012 Notes with and without the conversion feature comprising the embedded derivative. The Company determined that the fair value of the embedded derivative was immaterial as of August 9, 2013, May 23, 2013, March 28, 2013 and December 7, 2012, representing the fourth, third, second and initial closing dates, and as of December 31, 2012. As of September 30, 2013, the fair value of the embedded derivative was $96,000. The Company recorded the embedded derivative liability within accounts payable and other current liabilities and the change in fair value as a component of Other income (expense), net. | ||
As of September 30, 2013 and December 31, 2012, the Company recognized unamortized debt discounts of $3.6 million and $669,000, respectively, relating to the detachable warrants issued in conjunction with the 2012 Notes (Note 7). Debt discounts are amortized using the effective interest method through the earlier of the date of maturity or the conversion of the debt. For the three months and nine month ended September 30, 2013, amortization of debt discounts and accrued interest expense amounted to $1.5 million and $2.9 million, respectively. |
Convertible_Preferred_Stock
Convertible Preferred Stock | 9 Months Ended | |
Sep. 30, 2013 | ||
Equity [Abstract] | ' | |
Convertible Preferred Stock | ' | |
6 | Convertible Preferred Stock | |
Concurrent with this issuance of its Series B Convertible Preferred Stock in February 2011, the certificate of incorporation was amended to authorize the issuance of 15,734,582 shares of common stock and 63,672,909 shares of convertible preferred stock, of which 2,000,000 are designated as Series A-1 Convertible Preferred Stock; 10,010,029 are designated as Series A-2 Convertible Preferred Stock; 23,266,976 are designated as Series A-3 Convertible Preferred Stock; 4,895,904 are designated as Series A-4 Convertible Preferred Stock; and 23,500,000 are designated as Series B Convertible Preferred Stock. | ||
In connection with the issuance of the 2012 Notes, the Certificate of Incorporation was amended on December 7, 2012, to authorize the issuance of 20,000,000 shares of common stock and 82,672,909 shares of preferred stock, of which 2,000,000 are designated as Series A-1 Preferred Stock; 10,010,029 are designated as Series A-2 Preferred Stock; 22,479,476 are designated as Series A-3 Preferred Stock; 5,683,404 are designated as Series A-4 Preferred Stock; and 42,500,000 are designated as Series B Preferred Stock. | ||
Concurrent with the amendment to the 2012 Notes, the certificate of incorporation was amended to authorize the issuance of 22,000,000 shares of common stock and 90,172,909 shares of preferred stock, of which 2,000,000 are designated as Series A-1 Preferred Stock; 10,010,029 are designated as Series A-2 Preferred Stock; 22,479,476 are designated as Series A-3 Preferred Stock; 5,683,404 are designated as Series A-4 Preferred Stock; and 50,000,000 are designated as Series B Preferred Stock. | ||
On September 16, 2013, the certificate of incorporation was amended to reflect the re-designation of 2,300,000 unissued shares of Series B Convertible Preferred Stock to common stock. | ||
Carrying Value | ||
The convertible preferred stock was originally recorded at the net proceeds received by the Company at issuance. The difference between the net proceeds and the total redemption price is being accreted on a straight-line basis over the period from issuance until the earliest redemption date. Accretion amounted to $65,000 and $193,000 for the three months and nine months ended September 30, 2013, respectively, and $65,000 and $193,000 for the three months and nine months ended September 30, 2012, respectively, and $722,000 for the period from inception (June 22, 2005) to September 30, 2013, respectively. | ||
The Series A-4 Convertible Preferred Stock issued in connection with the conversion of the 2010 Notes (Note 5) in February 2011 was recorded at fair value. The difference between stated and fair value of $1.3 million is being accreted on a straight-line basis of the period from February 23, 2011 until the earliest redemption date. Accretion amounted to $74,000 and $220,000 for the three months and nine months ended September 30, 2013, respectively, and $73,000 and $219,000 for the three months and nine months ended September 30, 2012, respectively, and $755,000 for the period from February 23, 2011 to September 30, 2013, respectively. The Company determined that the straight-line method approximates the effective interest method. |
Stock_Purchase_Warrants
Stock Purchase Warrants | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Text Block [Abstract] | ' | ||||
Stock Purchase Warrants | ' | ||||
7 | Stock Purchase Warrants | ||||
In connection with the issuance of long-term debt and convertible notes, the Company granted and/or sold warrants to purchase 6,388,431 and 2,979,345 shares of convertible preferred stock as of September 30, 2013 and December 31, 2012, respectively. All warrants become automatically exercisable to common stock upon a qualified initial public offering or the conversion of the related convertible preferred stock (Note 11). | |||||
The Company recognizes all of its warrants with in its balance sheet as liabilities. The liability is revalued at each reporting period and changes in the fair value of the warrant liability are included as a component of Other income (expense), net. The initial recognition and subsequent changes in fair value of the warrant liability have no effect on the Company’s cash flows. | |||||
Key assumptions utilized in the fair value calculation as of September 30, 2013 and December 31, 2012 appear in the table below. | |||||
SEPTEMBER 30, | DECEMBER 31, | ||||
2013 | 2012 | ||||
Expected term (years) | 5.39–6.91 | 6.13–7.66 | |||
Volatility | 65.00% | 60.00% | |||
Risk-free interest rate | 1.51%–2.00% | 0.98%–1.31% | |||
Dividend yield | 0% | 0% | |||
For the three months and nine months ended September 30, 2013, the Company recorded $3.5 million and $3.8 million in Other income (expense), net, respectively, to reflect the change in fair value. For the three months and nine months ended September 30, 2012, the Company recorded $788,000 and $441,000 in Other income (expense), net, respectively, to reflect the change in fair value. |
Stockbased_Compensation
Stock-based Compensation | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||
Stock-based Compensation | ' | ||||||||||||||||||||
8 | Stock-based Compensation | ||||||||||||||||||||
On July 13, 2005, the Company’s board of directors adopted and approved the 2005 Aerie Pharmaceutical Stock Plan (the “Plan”), which, as amended in 2008, 2009, 2011 and 2013, provides for the granting of up to 3,586,227 stock- based awards to employees, directors and consultants of the Company. Stock-based awards vest over variable periods, generally ranging from one to five years, and expire not more than ten years after the date of grant. The Company granted stock options to employees to purchase 2,009,551 and 230,200 shares of common stock for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||||||
NUMBER OF | WEIGHTED AVERAGE | AGGREGATE | |||||||||||||||||||
SHARES | EXERCISE PRICE | INTRINSIC | |||||||||||||||||||
VALUE | |||||||||||||||||||||
(000’S) | |||||||||||||||||||||
Options outstanding at December 31, 2012 | 1,554,200 | $ | 1.389 | $ | 2,348 | ||||||||||||||||
Granted | 2,009,551 | 3.1121 | |||||||||||||||||||
Exercised | (3,195 | ) | 0.3722 | ||||||||||||||||||
Cancelled | (370,896 | ) | 1.3844 | ||||||||||||||||||
Options outstanding at September 30, 2013 | 3,189,660 | $ | 2.1634 | $ | 24,996 | ||||||||||||||||
Options exercisable at September 30, 2013 | 975,669 | $ | 0.5911 | $ | 9,180 | ||||||||||||||||
The estimated fair value of options granted is determined on the date of grant using the Black-Scholes option pricing model. Options granted to non-employees are re-measured at each financial reporting period until required service is performed. | |||||||||||||||||||||
Stock-based compensation expense for options granted and restricted stock are reflected in the statement of operations as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | Period From | |||||||||||||||||||
September 30, | September 30, | Inception | |||||||||||||||||||
(June 22, 2005) to | |||||||||||||||||||||
September 30, | |||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||
Research and development | $ | 62 | $ | 22 | $ | 105 | $ | 66 | $ | 284 | |||||||||||
General and administrative | 1,068 | 86 | 1,426 | 226 | 2,277 | ||||||||||||||||
Total(1) | $ | 1,130 | $ | 108 | $ | 1,531 | $ | 292 | $ | 2,561 | |||||||||||
-1 | For the three and nine months ended September 30, 2013, stock-based compensation expense includes $0.9 million of expense related to a stock-based compensation charge on the August and September 2013 option grants based on the assessment of certain assumptions utilized in determining the fair value of common stock in the context of the Company’s initial public offering (Note 2). | ||||||||||||||||||||
As of September 30, 2013, the Company had $14.4 million of unrecognized compensation expense related to options granted under the Plan. This cost is expected to be recognized over a weighted average period of 3.5 years as of September 30, 2013. The weighted average remaining contractual life on all outstanding options as of September 30, 2013 was 6.0 years. | |||||||||||||||||||||
Restricted Common Stock | |||||||||||||||||||||
On March 21, 2013, concurrent with the cancellation of 345,000 stock options, the Company issued 371,034 shares of restricted stock to an employee. The vesting of these awards is time-based with terms of two to four years. These restricted stock awards are subject to repurchase, such that the Company has the right, but not the obligation, to repurchase unvested shares upon the employee’s termination. As of September 30, 2013, 317,900 shares of restricted stock awards were unvested and subject to repurchase. | |||||||||||||||||||||
Compensation expense related to these restricted stock awards is based on the market value of the Company’s common stock on the date of grant and is expensed on a straight-line basis (net of estimated forfeitures) over the vesting period. The weighted average remaining contractual term for restricted stock awards as of September 30, 2013 was 2.3 years. Compensation expense related to restricted stock awards for the three months and nine months ended September 30, 2013 was $105,000 and $247,000, respectively and was included in general and administrative expense. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |
Sep. 30, 2013 | ||
Commitments And Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies | ' | |
9 | Commitments and Contingencies | |
Litigation | ||
The Company is not party to any known litigation, is not aware of any unasserted claims and does not have contingency reserves established for any litigation liabilities. | ||
Contract Service Providers | ||
In the course of the Company’s normal business operations, it has agreements with contract service providers to assist in the performance of its research and development, clinical research and manufacturing. Substantially all of these contracts are on an | ||
as-needed basis. |
RelatedParty_Transactions
Related-Party Transactions | 9 Months Ended | |
Sep. 30, 2013 | ||
Text Block [Abstract] | ' | |
Related-Party Transactions | ' | |
10 | Related-Party Transactions | |
The notes issued in 2012 are due to holders of the Company’s convertible preferred stock. Interest expense on those obligations for the three months and nine months ended September 30, 2013 was $266,000 and $488,000, respectively, and is classified as a current obligation on the Company’s balance sheets (Note 5). | ||
On September 6, 2013, the Company terminated its agreement to exclusively license to Novaer the Company’s intellectual property for non-ophthalmic indications. As of September 6, 2013, the Company owns all of the worldwide rights to the Company’s current product candidates for all indications, both ophthalmic and non-ophthalmic. |
Subsequent_Events
Subsequent Events | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Subsequent Events [Abstract] | ' | |||
Subsequent Events | ' | |||
11 | Subsequent Events | |||
On October 8, 2013, the Company effected a 1-for-5 reverse split of its common stock. All share and per share amounts related to common stock and options included in these financial statements and notes to financial statements have been restated to reflect the reverse stock split of the Company’s common stock. The Company’s preferred stock was not subject to the reverse stock split and, accordingly, the conversion ratios of the Company’s preferred stock have been adjusted to reflect the reverse split. | ||||
As of October 11, 2013, the Company had obtained a written consent from the holders of its outstanding convertible notes in which the holders agreed to convert all principal and interest accrued thereon to common stock upon the completion of the Company’s initial public offering at a conversion price equal to the per share offering price. In addition, the Company had obtained the consent from the holders of the requisite number of preferred shares to convert to shares of the Company’s common stock upon the completion of the Company’s initial public offering. | ||||
On October 30, 2013, the Company completed its initial public offering and issued 6,720,000 shares of its common stock at an initial offering price of $10.00 per share. In addition, the Company sold an additional 1,008,000 shares of common stock directly to its underwriters when they exercised their over-allotment option in full at the initial offering price of $10.00 per share. The Company received net proceeds from the initial public offering of approximately $68.3 million, after deducting underwriting discounts and commissions of $5.4 million and expenses of $3.6 million. In connection with the initial public offering, the following events occurred subsequent to September 30, 2013: | ||||
• | On October 24, 2013, 1,486,830 warrants to purchase convertible preferred stock were net exercised and were subsequently automatically converted into 297,366 shares of common stock on October 30, 2013; | |||
• | On October 30, 2013, 931,240 warrants to purchase convertible preferred stock were net exercised and were subsequently automatically converted into 186,248 shares of common stock on October 30, 2013; | |||
• | On October 30, 2013, the outstanding shares of convertible preferred stock automatically converted into an aggregate 12,120,531 shares of common stock; | |||
• | On October 30, 2013, the principal and interest outstanding under our $18.0 million in aggregate principal amount of our 8% convertible notes due December 31, 2013 converted into 1,860,363 shares of common stock at a conversion price equal to the initial public offering price of $10.00 per share; | |||
• | On October 30, 2013, 3,589,005 warrants to purchase convertible preferred stock were converted into 717,801 warrants to purchase common stock, at which time the liabilities were re-measured and reclassified to equity. | |||
• | On October 30, 2013, the certificate of incorporation was amended to increase the number of authorized shares of common stock to 150,000,000 with a par value of $0.001 per share and decrease the number of authorized preferred stock to 15,000,000 with a par value of $0.001 per share. | |||
• | On October 30, 2013, the Company’s By-Laws were amended and restated in their entirety. | |||
• | On October 30, 2013, the 2013 Omnibus Incentive Plan became effective under which 3,229,068 equity awards for common stock of the Company may be distributed. | |||
• | On October 30, 2013, the 2013 Employee Stock Purchase Plan became effective under which a maximum of 645,814 shares may be issued. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||
Basis of Presentation | |||||||||||||||||
The Company’s interim financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the Company has made all adjustments, which include normal recurring adjustments necessary for a fair statement of the Company’s financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These interim financial statements should be read in conjunction with the audited financial statements and accompanying notes for the year ended December 31, 2012 included in the Company’s final prospectus dated October 24, 2013 filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, with the Securities and Exchange Commission. The results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or period. | |||||||||||||||||
Additionally, the Company closed the aforementioned initial public offering in October 2013 as further described in Note 11 to the financial statements. As a result, there have been significant changes to the Company’s capital structure subsequent to the date of these financial statements. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of income and expenses during the reporting periods. Significant items subject to such estimates and assumptions include the valuation of stock options and warrants and operating expense accruals. | |||||||||||||||||
Reverse Stock Split | ' | ||||||||||||||||
Reverse Stock Split | |||||||||||||||||
The Company effected a 1-for-5 reverse stock split of its common stock on October 8, 2013. Accordingly, all share and per share amounts related to common stock and options for all periods presented in these financial statements and notes thereto, have been adjusted retroactively to reflect this reverse stock split. The Company’s preferred stock was not subject to the reverse stock split. | |||||||||||||||||
Equity Issuances in the Quarter Ended September 30, 2013 | ' | ||||||||||||||||
Equity Issuances in the Quarter Ended September 30, 2013 | |||||||||||||||||
In the context of its initial public offering, the Company determined that the probability of the conversion of preferred stock into common stock, based on the consent from the holders of the requisite number of preferred shares, was high as of September 30, 2013. As a result, the allocation of the determined equity value assumed conversion of all preferred stock into common stock. For financial reporting purposes, based on recommendations from management and taking into account advice and assistance provided by third-party valuation consultants engaged to assist in such valuations, the Company’s board of directors determined that the fair value of its common stock for all equity transactions during the quarter ended September 30, 2013 and all transactions that require fair value measurement as of September 30, 2013 was consistent with the initial public offering price of $10.00. Accordingly, for the quarter ended September 30, 2013, the Company recognized a stock-based compensation charge of $0.2 million related to stock options granted on August 26, 2013 and September 12, 2013 and $0.7 million related to the remeasurement of grants to non-employees. The total unrecognized stock-based compensation expense related to the August and September 2013 option grants was $13.6 million and is expected to be recognized ratably through 2017, which represents the expected vesting period of the options (Note 8). In addition, the Company measured the stock purchase warrants issued on August 9, 2013 and September 30, 2013 using the initial public offering price as the deemed fair value of its common stock, resulting in an initial measurement of the warrant liability of $2.0 million and $1.4 million, respectively (Note 7). | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The Company records certain financial assets and liabilities at fair value in accordance with the provisions of ASC Topic 820 on fair value measurements. As defined in the guidance, fair value, defined as an exit price, represents the amount that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants. As a result, fair value is a market-based approach that should be determined based on assumptions that market participants would use in pricing an asset or a liability. | |||||||||||||||||
The Company’s material financial instruments consist primarily of cash and cash equivalents, other current assets, accounts payable, accrued expenses, long-term debt and stock purchase warrant liabilities. The fair value of cash and cash equivalents, other current assets, accounts payable and accrued expenses approximate their respective carrying values due to the short-term nature of these instruments. The Company has determined its stock purchase warrants liability to be Level 3 fair value measurement (Note 7). | |||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In July 2013, the FASB issued ASU 2013-11 which is an amendment to the accounting guidance on income taxes. This guidance provides clarification on the financial statement presentation of an unrecognized benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendment will be effective for the Company for interim and annual periods beginning after December 15, 2013, with early adoption permitted. The adoption of this standard is not expected to have a material impact on the Company’s financial statements. | |||||||||||||||||
In February 2013, the FASB issued ASU 2013-02 Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires that public and non-public companies present information about reclassification adjustments for accumulated other comprehensive income in their annual financial statement in a note or on the face of the financial statements. Public companies are also required to provide this information in interim financial statements. The new disclosure requirements are effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The adoption of the provisions of this guidance did not have a material impact on the Company’s results of operations, cash flows and financial position as the Company’s net income is equal to its comprehensive income. | |||||||||||||||||
In June 2011, the FASB issued amended guidance intended to increase the prominence of items reported on other comprehensive income (loss). This amended guidance requires that all non-owner changes in stockholders’ equity (deficit) be presented in a single continuous statement of comprehensive income (loss) or in two separate but consecutive statements. The amended guidance became effective for periods beginning after December 15, 2011. The Company has applied this guidance beginning with its financial information for the year ended December 31, 2012. This amended guidance affects presentation, but does not have a material effect on the Company’s financial statements. | |||||||||||||||||
Net Loss per Common Share | ' | ||||||||||||||||
Net Loss per Common Share | |||||||||||||||||
Basic net loss per share attributable to common stock (“Basic EPS”) is calculated by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period, without consideration for potential common stock instruments. Net loss attributable to common stockholders is calculated by adjusting the Company’s net loss for accretion on convertible preferred stock (Note 6). Diluted net loss per share attributable to common stock (“Diluted EPS”) gives effect to all dilutive potential shares of common stock outstanding during this period. For Diluted EPS, net loss attributable to common stockholders used in calculating Basic EPS is adjusted for certain items related to the dilutive securities. | |||||||||||||||||
For all periods presented, the Company’s potential common stock equivalents, which include convertible preferred stock, stock options, notes payable to related parties and stock purchase warrants, have been excluded from the computation of diluted net loss per common share attributable to common stockholders as their inclusion would have the effect of reducing the net loss per common share. Therefore, the denominator used to calculate both basic and diluted net loss per common stock is the same in all periods presented. The Company’s potential common stock equivalents that have been excluded from the computation of diluted net loss per share attributable to common stockholders for all periods presented because of their antidilutive effect consist of the following: | |||||||||||||||||
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||||
SEPTEMBER 30, | SEPTEMBER 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Convertible preferred stock | 60,602,653 | 60,602,653 | 60,602,653 | 60,602,653 | |||||||||||||
Outstanding stock options | 3,189,660 | 1,209,200 | 3,189,660 | 1,209,200 | |||||||||||||
Notes and interest payable to related parties(1) | $ | 18,504,000 | $ | — | $ | 18,504,000 | $ | — | |||||||||
Stock purchase warrants | 6,388,431 | 2,297,529 | 6,388,431 | 2,297,529 | |||||||||||||
Unvested restricted common stock awards | 317,900 | — | 317,900 | — | |||||||||||||
-1 | The 2012 Notes and accrued interest thereon are convertible into capital stock at the option of the holders according to the terms of the 2012 Note and Warrant Agreement. See Note 5. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Schedule of Computation of Diluted Net Loss Per Share Attributable to Common Stockholders | ' | ||||||||||||||||
The Company’s potential common stock equivalents that have been excluded from the computation of diluted net loss per share attributable to common stockholders for all periods presented because of their antidilutive effect consist of the following: | |||||||||||||||||
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||||
SEPTEMBER 30, | SEPTEMBER 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Convertible preferred stock | 60,602,653 | 60,602,653 | 60,602,653 | 60,602,653 | |||||||||||||
Outstanding stock options | 3,189,660 | 1,209,200 | 3,189,660 | 1,209,200 | |||||||||||||
Notes and interest payable to related parties(1) | $ | 18,504,000 | $ | — | $ | 18,504,000 | $ | — | |||||||||
Stock purchase warrants | 6,388,431 | 2,297,529 | 6,388,431 | 2,297,529 | |||||||||||||
Unvested restricted common stock awards | 317,900 | — | 317,900 | — | |||||||||||||
-1 | The 2012 Notes and accrued interest thereon are convertible into capital stock at the option of the holders according to the terms of the 2012 Note and Warrant Agreement. See Note 5. |
Other_Income_Expense_Net_Table
Other Income (Expense), Net (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||||||||||
Schedule of Other Income (Expense), Net | ' | ||||||||||||||||||||
Other income (expense), net consists of the following: | |||||||||||||||||||||
THREE MONTHS ENDED | NINE MONTHS ENDED | PERIOD FROM | |||||||||||||||||||
SEPTEMBER 30, | SEPTEMBER 30, | INCEPTION | |||||||||||||||||||
(JUNE 22, 2005) TO | |||||||||||||||||||||
SEPTEMBER 30, | |||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||
Interest expense | $ | (1,477 | ) | $ | (15 | ) | $ | (2,865 | ) | $ | (15 | ) | $ | (5,399 | ) | ||||||
Gain on conversion of notes payable to related parties | — | — | — | — | 821 | ||||||||||||||||
Sale of New Jersey state tax benefit | — | — | 1,268 | — | 1,268 | ||||||||||||||||
(Expense)/income due to change in fair value measurements(1) | (3,585 | ) | (788 | ) | (3,850 | ) | (441 | ) | (3,851 | ) | |||||||||||
Other income, net | — | — | 1 | 29 | 973 | ||||||||||||||||
$ | (5,062 | ) | $ | (803 | ) | $ | (5,446 | ) | $ | (427 | ) | $ | (6,188 | ) | |||||||
-1 | Includes change in fair value of warrant liabilities and change in fair value of a certain conversion feature related to the 2012 Notes that was determined to be an embedded derivative requiring bifurcation and separate accounting. See Note 7 and Note 5, respectively. |
Accounts_Payable_Other_Current1
Accounts Payable & Other Current Liabilities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Summary of Accounts Payable and Other Current Liabilities | ' | ||||||||
Accounts payable and other current liabilities consist of the following: | |||||||||
(in thousands) | SEPTEMBER 30, | DECEMBER 31, | |||||||
2013 | 2012 | ||||||||
Accounts payable | $ | 1,126 | $ | 174 | |||||
Employee benefits and compensation related accruals(1) | 1,051 | 400 | |||||||
Accrued expenses and other liabilities | 998 | 863 | |||||||
$ | 3,175 | $ | 1,437 | ||||||
-1 | Comprised of accrued bonus, accrued vacation and accrued severance liabilities. |
Stock_Purchase_Warrants_Tables
Stock Purchase Warrants (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Text Block [Abstract] | ' | ||||
Schedule of Key Assumptions Utilized in Fair Value Calculation | ' | ||||
Key assumptions utilized in the fair value calculation as of September 30, 2013 and December 31, 2012 appear in the table below. | |||||
SEPTEMBER 30, | DECEMBER 31, | ||||
2013 | 2012 | ||||
Expected term (years) | 5.39–6.91 | 6.13–7.66 | |||
Volatility | 65.00% | 60.00% | |||
Risk-free interest rate | 1.51%–2.00% | 0.98%–1.31% | |||
Dividend yield |
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||
Schedule of Stock Options Activity | ' | ||||||||||||||||||||
The Company granted stock options to employees to purchase 2,009,551 and 230,200 shares of common stock for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||||||
NUMBER OF | WEIGHTED AVERAGE | AGGREGATE | |||||||||||||||||||
SHARES | EXERCISE PRICE | INTRINSIC | |||||||||||||||||||
VALUE | |||||||||||||||||||||
(000’S) | |||||||||||||||||||||
Options outstanding at December 31, 2012 | 1,554,200 | $ | 1.389 | $ | 2,348 | ||||||||||||||||
Granted | 2,009,551 | 3.1121 | |||||||||||||||||||
Exercised | (3,195 | ) | 0.3722 | ||||||||||||||||||
Cancelled | (370,896 | ) | 1.3844 | ||||||||||||||||||
Options outstanding at September 30, 2013 | 3,189,660 | $ | 2.1634 | $ | 24,996 | ||||||||||||||||
Options exercisable at September 30, 2013 | 975,669 | $ | 0.5911 | $ | 9,180 | ||||||||||||||||
Stock-Based Compensation Expense for Options Granted and Restricted Stock as Reflected in the Statement of Operations | ' | ||||||||||||||||||||
Stock-based compensation expense for options granted and restricted stock are reflected in the statement of operations as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | Period From | |||||||||||||||||||
September 30, | September 30, | Inception | |||||||||||||||||||
(June 22, 2005) to | |||||||||||||||||||||
September 30, | |||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||
Research and development | $ | 62 | $ | 22 | $ | 105 | $ | 66 | $ | 284 | |||||||||||
General and administrative | 1,068 | 86 | 1,426 | 226 | 2,277 | ||||||||||||||||
Total(1) | $ | 1,130 | $ | 108 | $ | 1,531 | $ | 292 | $ | 2,561 | |||||||||||
-1 | For the three and nine months ended September 30, 2013, stock-based compensation expense includes $0.9 million of expense related to a stock-based compensation charge on the August and September 2013 option grants based on the assessment of certain assumptions utilized in determining the fair value of common stock in the context of the Company’s initial public offering (Note 2). |
The_Company_Additional_Informa
The Company - Additional Information (Detail) (Subsequent Event [Member], USD $) | 0 Months Ended | 1 Months Ended |
In Millions, except Share data, unless otherwise specified | Oct. 30, 2013 | Oct. 31, 2013 |
Organization And Nature Of Business [Line Items] | ' | ' |
Common stock initial public offering | 6,720,000 | 6,720,000 |
Public offering price of the shares sold | $10 | $10 |
Net proceeds from initial public offering | $68.30 | $68.30 |
Underwriting discounts and commissions | 5.4 | 5.4 |
Expenses for initial public offering | $3.60 | $3.60 |
Stock Offering Underwriter Over-Allotment Option [Member] | ' | ' |
Organization And Nature Of Business [Line Items] | ' | ' |
Common stock initial public offering | 1,008,000 | 1,008,000 |
Significant_Accounting_Policie3
Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 99 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 09, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 30, 2013 | Oct. 08, 2013 | Oct. 31, 2013 | |
Initial Public Offer [Member] | Initial Public Offer [Member] | Initial Public Offer [Member] | Initial Public Offer [Member] | Initial Public Offer [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||||
Stock Options [Member] | Grants to Non-Employees [Member] | |||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reverse split of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1-for-5 | ' |
Common stock, offering price per share | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | $10 | ' | $10 |
Stock-based compensation | $1,130,000 | $108,000 | $1,531,000 | $292,000 | $2,561,000 | ' | $900,000 | $900,000 | ' | $200,000 | $700,000 | ' | ' | ' |
Unrecognized stock-based compensation expense | ' | ' | ' | ' | ' | ' | 13,600,000 | 13,600,000 | ' | ' | ' | ' | ' | ' |
Warrant liability | $11,485,000 | ' | $11,485,000 | ' | $11,485,000 | $2,456,000 | $1,400,000 | $1,400,000 | $2,000,000 | ' | ' | ' | ' | ' |
Significant_Accounting_Policie4
Significant Accounting Policies - Schedule of Computation of Diluted Net Loss Per Share Attributable to Common Stockholders (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Notes and interest payable to related parties | 18,504,000 | ' | 18,504,000 | ' |
Convertible Preferred Stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potential common stock equivalents excluded from the computation of diluted net loss per share | 60,602,653 | 60,602,653 | 60,602,653 | 60,602,653 |
Outstanding Stock Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potential common stock equivalents excluded from the computation of diluted net loss per share | 3,189,660 | 1,209,200 | 3,189,660 | 1,209,200 |
Stock Purchase Warrants [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potential common stock equivalents excluded from the computation of diluted net loss per share | 6,388,431 | 2,297,529 | 6,388,431 | 2,297,529 |
Unvested Restricted Common Stock Awards [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potential common stock equivalents excluded from the computation of diluted net loss per share | 317,900 | ' | 317,900 | ' |
Other_Income_Expense_Net_Sched
Other Income (Expense), Net - Schedule of Other Income (Expense), Net (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 99 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Other Income And Expenses [Abstract] | ' | ' | ' | ' | ' |
Interest expense | ($1,477) | ($15) | ($2,865) | ($15) | ($5,399) |
Gain on conversion of notes payable to related parties | ' | ' | ' | ' | 821 |
Sale of New Jersey state tax benefit | ' | ' | 1,268 | ' | 1,268 |
(Expense)/income due to change in fair value measurements | -3,585 | -788 | -3,850 | -441 | -3,851 |
Other income, net | ' | ' | 1 | 29 | 973 |
Other income (expense), net | ($5,062) | ($803) | ($5,446) | ($427) | ($6,188) |
Accounts_Payable_Other_Current2
Accounts Payable & Other Current Liabilities - Summary of Accounts Payable and Other Current Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Accounts payable | $1,126 | $174 |
Employee benefits and compensation related accruals | 1,051 | 400 |
Accrued expenses and other liabilities | 998 | 863 |
Accounts payable and other current liabilities | $3,175 | $1,437 |
Notes_Payable_Additional_Infor
Notes Payable - Additional Information (Detail) (2012 Notes [Member], USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Dec. 07, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 09, 2013 | 23-May-13 | Mar. 28, 2013 | Dec. 31, 2012 | |
Note | |||||||
2012 Notes [Member] | ' | ' | ' | ' | ' | ' | ' |
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Aggregate convertible notes authorized | $15,000,000 | ' | ' | $18,000,000 | ' | ' | ' |
Convertible notes, interest rate | 8.00% | ' | ' | ' | ' | ' | ' |
Convertible notes, maturity date | ' | ' | 30-Sep-13 | ' | ' | ' | ' |
Convertible notes, equity amount | ' | ' | 15,000,000 | ' | ' | ' | ' |
Cash and cash equivalent threshold for requesting a subsequent closing | ' | 1,500,000 | 1,500,000 | ' | ' | ' | ' |
Number of individual convertible notes | 5 | ' | ' | ' | ' | ' | ' |
Convertible notes, aggregate principal balance | 3,000,000 | 3,000,000 | 3,000,000 | 4,500,000 | 4,500,000 | 3,000,000 | ' |
Convertible notes authorized and available for sale | ' | ' | ' | ' | ' | ' | 12,000,000 |
Additional convertible notes authorized | ' | ' | ' | 3,000,000 | ' | ' | ' |
Convertible notes, amendment maturity date | ' | ' | 31-Dec-13 | ' | ' | ' | ' |
Fair value of embedded derivative | ' | 96,000 | 96,000 | ' | ' | ' | ' |
Unamortized debt discounts | ' | 3,600,000 | 3,600,000 | ' | ' | ' | 669,000 |
Amortization of debt discount and accrued interest expense | ' | $1,500,000 | $2,900,000 | ' | ' | ' | ' |
Convertible_Preferred_Stock_Ad
Convertible Preferred Stock - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 07, 2012 | Feb. 28, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Feb. 28, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 28, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 28, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 28, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 28, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 28, 2011 | Sep. 30, 2013 | Dec. 07, 2012 | Sep. 30, 2013 | Dec. 07, 2012 | Sep. 30, 2013 | Dec. 07, 2012 | Sep. 30, 2013 | Dec. 07, 2012 | Sep. 30, 2013 | Dec. 07, 2012 | Sep. 16, 2013 | Feb. 23, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock Series A-1 [Member] | Convertible Preferred Stock Series A-1 [Member] | Convertible Preferred Stock Series A-1 [Member] | Convertible Preferred Stock Series A-2 [Member] | Convertible Preferred Stock Series A-2 [Member] | Convertible Preferred Stock Series A-2 [Member] | Convertible Preferred Stock Series A-3 [Member] | Convertible Preferred Stock Series A-3 [Member] | Convertible Preferred Stock Series A-3 [Member] | Convertible Preferred Stock Series A-4 [Member] | Convertible Preferred Stock Series A-4 [Member] | Convertible Preferred Stock Series A-4 [Member] | Convertible Preferred Stock Series B [Member] | Convertible Preferred Stock Series B [Member] | Convertible Preferred Stock Series B [Member] | Series A-1 Preferred Stock [Member] | Series A-1 Preferred Stock [Member] | Series A-2 Preferred Stock [Member] | Series A-2 Preferred Stock [Member] | Series A-3 Preferred Stock [Member] | Series A-3 Preferred Stock [Member] | Series A-4 Preferred Stock [Member] | Series A-4 Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Series A-4 Convertible Preferred Stock [Member] | Series A-4 Convertible Preferred Stock [Member] | Series A-4 Convertible Preferred Stock [Member] | Series A-4 Convertible Preferred Stock [Member] | Series A-4 Convertible Preferred Stock [Member] | Series A-4 Convertible Preferred Stock [Member] | |||||
Permanent And Temporary Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 22,000,000 | 20,000,000 | 20,000,000 | 15,734,582 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible preferred stock, shares authorized | 87,872,909 | 82,672,909 | 82,672,909 | ' | ' | ' | ' | ' | ' | 63,672,909 | 2,000,000 | 2,000,000 | 2,000,000 | 10,010,029 | 10,010,029 | 10,010,029 | 22,479,476 | 22,479,476 | 23,266,976 | 5,683,404 | 5,683,404 | 4,895,904 | 47,700,000 | 42,500,000 | 23,500,000 | 2,000,000 | 2,000,000 | 10,010,029 | 10,010,029 | 22,479,476 | 22,479,476 | 5,683,404 | 5,683,404 | 50,000,000 | 42,500,000 | ' | ' | ' | ' | ' | ' | ' |
Authorized Convertible Preferred Stock Shares Re-designated to Authorized Common Stock Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | ' | ' | ' | ' | ' | ' |
Accretion amount | ' | ' | ' | ' | $65,000 | $65,000 | $193,000 | $193,000 | $722,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $74,000 | $73,000 | $220,000 | $219,000 | $755,000 |
Difference between stated and fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,300,000 | ' | ' | ' | ' | ' |
Stock_Purchase_Warrants_Additi
Stock Purchase Warrants - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Convertible Preferred Stock Warrants [Member] | Convertible Preferred Stock Warrants [Member] | Other Income (Expense) [Member] | Other Income (Expense) [Member] | Other Income (Expense) [Member] | Other Income (Expense) [Member] | |
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' |
Number of shares of convertible preferred stock into which the warrants may be converted | 6,388,431 | 2,979,345 | ' | ' | ' | ' |
Other income (expense), net | ' | ' | $3,500,000 | $788,000 | $3,800,000 | $441,000 |
Stock_Purchase_Warrants_Schedu
Stock Purchase Warrants - Schedule of Key Assumptions Utilized in Fair Value Calculation (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Volatility | 65.00% | 60.00% |
Dividend yield | 0.00% | 0.00% |
Minimum [Member] | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Expected term (years) | '5 years 4 months 21 days | '6 years 1 month 17 days |
Risk-free interest rate | 1.51% | 0.98% |
Maximum [Member] | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Expected term (years) | '6 years 10 months 28 days | '7 years 7 months 28 days |
Risk-free interest rate | 2.00% | 1.31% |
Stockbased_Compensation_Additi
Stock-based Compensation - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 99 Months Ended | ||
Mar. 21, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Stock-based awards, shares granted | ' | ' | ' | 2,009,551 | ' | ' |
Stock options cancelled | 345,000 | ' | ' | ' | ' | ' |
Restricted stock, shares issued | 371,034 | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | $1,130,000 | $108,000 | $1,531,000 | $292,000 | $2,561,000 |
Restricted Stock Awards [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Restricted stock awards, unvested | ' | 317,900 | ' | 317,900 | ' | 317,900 |
Restricted stock awards, weighted average remaining contractual term | ' | ' | ' | '2 years 3 months 18 days | ' | ' |
Stock-based compensation expense | ' | 105,000 | ' | 247,000 | ' | ' |
Restricted Stock Awards [Member] | Maximum [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Stock-based awards, vesting period | ' | ' | ' | '4 years | ' | ' |
Restricted Stock Awards [Member] | Minimum [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Stock-based awards, vesting period | ' | ' | ' | '2 years | ' | ' |
2005 Aerie Pharmaceutical Stock Plan [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Stock-based awards, shares granted | ' | ' | ' | 2,009,551 | 230,200 | ' |
Unrecognized compensation expense | ' | $14,400,000 | ' | $14,400,000 | ' | $14,400,000 |
Compensation cost, weighted average recognition period | ' | ' | ' | '3 years 6 months | ' | ' |
Options outstanding, weighted average remaining contractual life | ' | ' | ' | '6 years | ' | ' |
2005 Aerie Pharmaceutical Stock Plan [Member] | Maximum [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Stock-based awards, shares authorized | ' | 3,586,227 | ' | 3,586,227 | ' | 3,586,227 |
Stock-based awards, vesting period | ' | ' | ' | '5 years | ' | ' |
Stock-based awards, expiration period | ' | ' | ' | '10 years | ' | ' |
2005 Aerie Pharmaceutical Stock Plan [Member] | Minimum [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Stock-based awards, vesting period | ' | ' | ' | '1 year | ' | ' |
Stockbased_Compensation_Schedu
Stock-based Compensation - Schedule of Stock Options Activity (Detail) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Options outstanding at December 31, 2012, Number of Shares | 1,554,200 |
Granted, Number of Shares | 2,009,551 |
Exercised, Number of Shares | -3,195 |
Cancelled, Number of Shares | -370,896 |
Options outstanding at September 30, 2013, Number of Shares | 3,189,660 |
Options exercisable at September 30, 2013, Number of Shares | 975,669 |
Options outstanding at December 31, 2012, Weighted Average Exercise Price | $1.39 |
Granted, Weighted Average Exercise Price | $3.11 |
Exercised, Weighted Average Exercise Price | $0.37 |
Cancelled, Weighted Average Exercise Price | $1.38 |
Options outstanding at September 30, 2013, Weighted Average Exercise Price | $2.16 |
Options exercisable at September 30, 2013, Weighted Average Exercise Price | $0.59 |
Options outstanding at December 31, 2012, Aggregate Intrinsic Value | $2,348 |
Options outstanding at September 30, 2013, Aggregate Intrinsic Value | 24,996 |
Options exercisable at September 30, 2013, Aggregate Intrinsic Value | $9,180 |
Stockbased_Compensation_Stockb
Stock-based Compensation - Stock-based Compensation Expense for Options Granted and Restricted Stock as Reflected in the Statement of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 99 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock-based compensation expense | $1,130,000 | $108,000 | $1,531,000 | $292,000 | $2,561,000 |
Research and Development [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock-based compensation expense | 62,000 | 22,000 | 105,000 | 66,000 | 284,000 |
General and Administrative [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock-based compensation expense | $1,068,000 | $86,000 | $1,426,000 | $226,000 | $2,277,000 |
Stockbased_Compensation_Stockb1
Stock-based Compensation - Stock-based Compensation Expense for Options Granted and Restricted Stock as Reflected in the Statement of Operations (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 99 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock-based compensation expense | $1,130,000 | $108,000 | $1,531,000 | $292,000 | $2,561,000 |
Initial Public Offer [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock-based compensation expense | $900,000 | ' | $900,000 | ' | ' |
RelatedParty_Transactions_Addi
Related-Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' | ' |
Interest expense | $266,000 | $488,000 |
Agreement with related party, Termination date | ' | 6-Sep-13 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 99 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Dec. 07, 2012 | Feb. 28, 2011 | Oct. 30, 2013 | Oct. 08, 2013 | Oct. 31, 2013 | Oct. 24, 2013 | Oct. 30, 2013 | Oct. 31, 2013 | Oct. 30, 2013 | Oct. 30, 2013 | Oct. 30, 2013 | Oct. 30, 2013 | Oct. 30, 2013 | Oct. 30, 2013 | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||
Stock Offering Underwriter Over-Allotment Option [Member] | Stock Offering Underwriter Over-Allotment Option [Member] | Omnibus Incentive Plan [Member] | Employee Stock Purchase Plan [Member] | Conversion One [Member] | Conversion Two [Member] | Conversion Three [Member] | Conversion Four [Member] | |||||||||
Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | |||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reverse split of common stock | ' | ' | ' | ' | ' | '1-for-5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | ' | ' | ' | 6,720,000 | ' | 6,720,000 | ' | 1,008,000 | 1,008,000 | ' | ' | ' | ' | ' | ' |
Common stock, offering price per share | ' | ' | ' | ' | $10 | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from initial public offering | ' | ' | ' | ' | $68,300,000 | ' | $68,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Underwriting discounts and commissions | ' | ' | ' | ' | 5,400,000 | ' | 5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses for initial public offering | ' | ' | ' | ' | 3,600,000 | ' | 3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercised to purchase convertible preferred stock | ' | ' | ' | ' | 931,240 | ' | ' | 1,486,830 | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of convertible securities to common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 297,366 | 186,248 | 12,120,531 | ' |
Debt conversion, shares issued | ' | ' | ' | ' | 1,860,363 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt conversion, conversion price per share | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, aggregate principal amount | $17,364,000 | ' | ' | ' | $18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, maturity date | ' | ' | ' | ' | 31-Dec-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants to purchase convertible preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,589,005 |
Warrants to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 717,801 |
Increase in common stock, shares authorized as per amendment | 22,000,000 | 20,000,000 | 20,000,000 | 15,734,582 | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | $0.00 | $0.00 | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in preferred stock, shares authorized as per amendment | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,229,068 | 645,814 | ' | ' | ' | ' |