Aldeyra Therapeutics (ALDX) 10-Q 9 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 09, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	ALDX
Entity Registrant Name	ALDEYRA THERAPEUTICS, INC.
Entity Central Index Key	1,341,235
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		9,712,521

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 10,148,524	$ 14,648,866
Marketable securities	12,877,281	12,941,776
Prepaid expenses and other current assets	283,509	497,552
Total current assets	23,309,314	28,088,194
Deferred offering costs	45,986	36,236
Fixed assets, net	81,466	80,334
Total assets	23,436,766	28,204,764
Current liabilities:
Accounts payable	578,017	851,160
Accrued expenses (Note 6)	1,035,888	1,186,429
Current portion of credit facility	193,866	77,546
Total current liabilities	1,807,771	2,115,135
Credit facility, net of current portion and debt discount	1,101,968	1,211,310
Total liabilities	$ 2,909,739	$ 3,326,445
Commitments and contingencies (Note 11)
Stockholders' equity:
Preferred stock, $0.001 par value, 15,000,000 shares authorized, none issued and outstanding
Common stock, voting, $0.001 par value; 150,000,000 authorized and 9,712,521 shares issued and outstanding, respectively	$ 9,713	$ 9,713
Additional paid-in capital	84,084,750	83,478,851
Accumulated other comprehensive income (loss), net of tax	1,800	(8,361)
Accumulated deficit	(63,569,236)	(58,601,884)
Total stockholders' equity	20,527,027	24,878,319
Total liabilities and stockholders' equity	$ 23,436,766	$ 28,204,764

Balance Sheets (Unaudited) (Par

Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred Stock, par value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	15,000,000	15,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	9,712,521	9,712,521
Common stock, shares outstanding	9,712,521	9,712,521

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating expenses:
Research and development	$ 3,511,477	$ 1,136,434
General and administrative	1,455,559	972,101
Loss from operations	(4,967,036)	(2,108,535)
Other income (expense):
Interest income	24,719
Interest expense	(25,035)	(28,024)
Total other income (expense), net	(316)	(28,024)
Net loss	$ (4,967,352)	$ (2,136,559)
Net loss per share
Basic	$ (0.51)	$ (0.32)
Diluted	$ (0.51)	$ (0.32)
Weighted average common shares outstanding:
Basic	9,712,521	6,667,519
Diluted	9,712,521	6,667,519

Statements of Comprehensive Los

Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (4,967,352)	$ (2,136,559)
Other comprehensive income:
Unrealized gain on marketable securities, net of tax	10,160
Total other comprehensive income	10,160
Comprehensive loss	$ (4,957,192)	$ (2,136,559)

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (4,967,352)	$ (2,136,559)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	609,108	640,073
Amortization of debt discount - non-cash interest expense	6,978	9,354
Depreciation	8,102	1,252
Net amortization of premium on debt securities available for sale	74,656
Change in assets and liabilities:
Prepaid expenses and other current assets	214,043	55,494
Accounts payable	(273,143)	64,851
Accrued expenses	(153,750)	(478,329)
Net cash used in operating activities	(4,481,358)	(1,843,864)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of property and equipment	(9,234)	(1,441)
Net cash used in investing activities	(9,234)	(1,441)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net of issuance costs		9,039,098
Deferred offering costs paid in cash	(9,750)
Net cash provided by (used in) financing activities	(9,750)	9,039,098
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(4,500,342)	7,193,793
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	14,648,866	8,527,304
CASH AND CASH EQUIVALENTS, END OF PERIOD	10,148,524	15,721,097
Cash paid during the period for:
Interest	$ 19,484	18,320
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Deferred offering costs not yet paid		$ 20,000

Nature of Business

Nature of Business	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	1. NATURE OF BUSINESS Aldeyra Therapeutics, Inc. (the Company or Aldeyra), a Delaware corporation, is developing new products for diseases caused by inflammation and inborn errors of metabolism that are thought to be related to naturally occurring toxic and pro-inflammatory chemical species known as aldehydes. The Company’s principal activities to date include raising capital and research and development activities.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	2. BASIS OF PRESENTATION The accompanying interim unaudited condensed financial statements and related disclosures are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s financial statements and related footnotes for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the Securities and Exchange Commission on March 30, 2016. The financial information as of March 31, 2016, the three months ended March 31, 2016 and 2015 is unaudited, but in the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of the financial position, results of operations and cash flows at the dates and for the periods presented of the results of these interim periods have been included. The balance sheet data as of December 31, 2015 was derived from audited financial statements. The results of the Company’s operations for any interim period are not necessarily indicative of the results that may be expected for any other interim period or for a full fiscal year. The Company’s management believes that its currently available resources, including amounts potentially available under its credit facility (Note 7), will provide sufficient funds to enable the Company to meet its expected obligations through approximately the end of 2017 based on the Company’s current business plan. However, these amounts will not be sufficient for the Company to commercialize its product candidates or conduct any substantial, additional development requirements requested by the U.S. Food and Drug Administration (FDA). Additional funding may not be available to the Company on acceptable terms, or at all. If the Company is unable to secure additional capital, or meet financial covenants that could be implemented under the Company’s term loans in certain circumstances, it will be required to significantly decrease the amount of planned expenditures, and may be required to cease operations. Curtailment of operations would cause significant delays in the Company’s efforts to introduce its products to market, which is critical to the realization of its business plan and the future operations of the Company. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09 “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), to simplify the accounting for stock compensation. This update focuses on income tax accounting, award classification, estimating forfeitures, and cash flow presentation. The ASU becomes effective in 2017 for public companies and in 2018 for all other entities. Early adoption is permitted. Certain disclosures and detailed transition provisions apply. We do not believe that ASU 2016-09 will have a material impact on our financial statements. In November 2015, the FASB issued Accounting Standards Update (ASU) No. 2015-17 “Income Taxes: Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). To simplify the presentation of deferred income taxes, the amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This update is required to be effective for all public Companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted. We do not believe that ASU 2015-17 will have a material impact on our financial statements. In February of 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). Under ASU 2016-2, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is in the process of evaluating the future impact of ASU 2016-02 on its financial position, results of operations and cash flows. In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). The amendments in ASU 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for the Company in the first quarter of fiscal year 2017, with early adoption permitted. ASU 2015-03 should be applied on a retrospective basis to each individual period presented. Upon implementation, the change in reporting debt issuance costs will require the Company to reclassify any deferred financing costs from an asset to a reduction of the reported debt balance. The application of ASU 2015-03 is not expected to have a material impact on the presentation of the Company’s financial position.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Net Loss Per Share	3. NET LOSS PER SHARE Net loss per share The following table summarizes the computation of basic and diluted net loss per share of the Company: Three Months Ended March 31, 2016 2015 Numerator: Basic Net loss – basic $ (4,967,352 ) $ (2,136,559 ) Diluted Net loss – basic (4,967,352 ) (2,136,559 ) Net loss – diluted $ (4,967,352 ) $ (2,136,559 ) Denominator: Basic Weighted-average number of common shares – basic 9,712,521 6,667,519 Diluted Weighted average number of common shares – diluted 9,712,521 6,667,519 Net loss per share: Basic $ (0.51 ) $ (0.32 ) Diluted $ (0.51 ) $ (0.32 ) The following potentially dilutive securities outstanding, prior to use of the treasury stock method or if-converted method, have been excluded from the computation of diluted weighted-average shares outstanding, because such securities had an antidilutive impact: Three Months Ended March 31, 2016 2015 Options to purchase common stock 1,647,009 874,032 Warrants to purchase common stock 1,384,608 1,384,608 Total of common stock equivalents 3,031,617 2,258,640

Cash, Cash Equivalents and Mark

Cash, Cash Equivalents and Marketable Securities	3 Months Ended
	Mar. 31, 2016
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents and Marketable Securities	4. CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES At March 31, 2016, cash, cash equivalents and marketable securities were comprised of: Carrying Amount Unrecognized Gain Unrecognized Loss Estimated Fair Value Cash Equivalents Current Marketable Securities Cash $ 1,125,979 $ — $ — $ 1,125,979 $ 1,125,979 $ — Money market funds 22,545 — — 22,545 22,545 — U.S. Reverse repurchase agreements 9,000,000 — — 9,000,000 9,000,000 — Government securities 12,875,481 2,616 (816 ) 12,877,281 — 12,877,281 Available for Sale(1) 21,875,481 2,616 (816 ) 21,877,281 9,000,000 12,877,281 Total cash, cash equivalents and current marketable securities $ 10,148,524 $ 12,877,281 (1) Available for sale securities are reported at fair value with unrealized gains and losses reported net of taxes in other comprehensive income. Fair value of government securities and obligations and corporate debt securities were estimated using quoted broker prices and significant other observable inputs. The contractual maturities of all available for sale securities are less than one year at March 31, 2016.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	5. FAIR VALUE MEASUREMENTS Financial instruments, including cash and accounts payable, are carried in the financial statements at amounts that approximate their fair value based on the short maturities of those instruments. The carrying amount of the Company’s term loans under its credit facility approximates market rates currently available to the Company. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value are performed in a manner to maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820, Fair Value Measurements Level 1 Level 2 Level 3 There were no assets or liabilities measured at fair value at March 31, 2015. There were no liabilities measured at fair value at March 31, 2016. The following table presents information about the Company’s assets measured at fair value at March 31, 2016: March 31, 2016 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 22,545 $ — $ — $ 22,545 Repurchase agreements — 9,000,000 — 9,000,000 U.S. government agency securities — 12,877,281 — 12,877,281 Total assets at fair value $ 22,545 $ 21,877,281 $ — $ 21,899,826

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2016
Payables and Accruals [Abstract]
Accrued Expenses	6. ACCRUED EXPENSES Accrued expenses at March 31, 2016 and December 31, 2015 were: March 31, December 31, 2016 2015 Accrued compensation $ 233,961 $ 394,773 Accrued research and development 590,879 550,323 Accrued general & administrative 211,048 192,676 Accrued other — 48,657 Accrued expenses $ 1,035,888 $ 1,186,429

Credit Facility

Credit Facility	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Credit Facility	7. CREDIT FACILITY In April 2012, the Company entered into a loan and security agreement (the Credit Facility) with Pacific Western which was subsequently amended in November 2013 to provide the Company with $1.5 million of available funds. The amended Credit Facility called for interest only payments at a 6.50% interest rate from November 2013 through November 2014 for all amounts outstanding, at which point the Company was scheduled to make principal payments of $58,160 plus interest through the maturity date in November 2016. In November 2014, the Credit Facility was further amended. Pursuant to the further amended Credit Facility, Pacific Western agreed to make term loans in a principal amount of up to $5.0 million available to the Company with proceeds to be used first to refinance outstanding loans from Pacific Western second to fund expenses related to the Company’s clinical trials, and the remainder for general working capital purposes. The term loans are to be made available to the Company upon the following terms: (i) $2.0 million was made available in November 2014; and (ii) $3.0 million (the Tranche B Loan) became available to the Company following the satisfaction of certain conditions, including receipt of positive phase 2 data in noninfectious anterior uveitis. Each term loan accrues interest from its date of issue at a variable annual interest rate equal to the greater of 2.0% plus prime or 5.25% per annum. Any term loan made was payable as interest-only prior to November 2015 and thereafter was scheduled to be payable in monthly installments of principal plus accrued interest through the maturity date in November 2018. The amended Credit Facility was amended again in November 2015 extending the interest only period and the Tranche B conditions. Each term loan accrues interest from its date of issue at a variable annual interest rate equal to the greater of 2.0% plus prime or 5.25% per annum. The annualized effective interest rate as of March 31, 2016 was 7.58%. Any term loan made is payable as interest-only prior to November 2016 and thereafter is payable in monthly installments of principal plus accrued interest over 36 months. The Credit Facility is collateralized by the Company’s assets, including its intellectual property. As of March 31, 2016, $1.4 million was outstanding under the Credit Facility. At March 31, 2016, the Credit Facility is shown net of a remaining debt discount of $100,000 which is being amortized using the effective interest method through the current maturity date of the Credit Facility, November 2019.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	8. INCOME TAXES No provision for federal taxes and state has been recorded as the Company has incurred losses since inception for tax purposes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In assessing the realizability of net deferred taxes in accordance with ASC 740, Income Taxes Under Section 382 of the Internal Revenue Code of 1986, as amended (Code), a corporation that undergoes an “ownership change” is subject to limitations on its ability to utilize its pre-change net operating losses (NOLs) and certain other tax assets (tax attributes) to offset future taxable income. In general, an ownership change occurs if the aggregate stock ownership of certain stockholders increases by more than 50 percentage points over such stockholders’ lowest percentage ownership during the testing period (generally three years). Transactions involving the Company’s common stock, even those outside the Company’s control, such as purchases or sales by investors, within the testing period could result in an ownership change. A limitation on the Company’s ability to utilize some or all of its NOLs or credits could have a material adverse effect on the Company’s results of operations and cash flows. In the past, Aldeyra has undergone two ownership changes. However, the Company’s management believes that it had sufficient “Built-In-Gain” to offset the Section 382 of the Code limitation generated by the ownership changes. Any future ownership changes may cause the Company’s existing tax attributes to have additional limitations. All tax years are open for examination by the taxing authorities for both federal and state purposes. The Company accounts for uncertain tax positions pursuant to ASC 740 which prescribes a recognition threshold and measurement process for financial statement recognition of uncertain tax positions taken or expected to be taken in a tax return. If the tax position meets this threshold, the benefit to be recognized is measured as the tax benefit having the highest likelihood of being realized upon ultimate settlement with the taxing authority. The Company recognizes interest accrued related to unrecognized tax benefits and penalties in the provision for income taxes. Management is not aware of any uncertain tax positions.

Stock Incentive Plan

Stock Incentive Plan	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Incentive Plan	9. STOCK INCENTIVE PLAN The Company has three incentive plans. One was adopted in 2004 (2004 Plan) and provided for the granting of stock options and restricted stock awards and generally prescribed a contractual term of seven years. The 2004 Plan terminated in August 2010. However, grants made under the 2004 Plan are still governed by that plan. As of March 31, 2016, options to purchase 23,954 shares of common stock at a weighted average exercise price of $3.24 per share remained outstanding under the 2004 Plan. The Company approved the 2010 Employee, Director and Consultant Equity Incentive Plan (2010 Plan) in September 2010 to replace the 2004 Plan. The 2010 Plan provided for the granting of stock options and restricted stock awards. The 2010 Plan terminated upon the Initial Public Offering. However, grants made under the 2010 Plan are still governed by that plan. As of March 31, 2016, options to purchase 585,888 shares of common stock at a weighted average exercise price of $1.41 per share remained outstanding under the 2010 Plan. The Company approved the 2013 Equity Incentive Plan (2013 Plan) in October 2013. The 2013 Plan became effective immediately on adoption although no awards were to be made under it until the effective date of the Registration Statement for the Initial Public Offering. The 2013 Plan provides for the granting of stock options, restricted stock, stock appreciation rights, stock units, and performance cash awards to certain employees, members of the board of directors and consultants of the Company. As of December 31, 2014, the number of shares of common stock authorized for issuance in connection with the 2013 Plan was 625,000. On January 1 of each year the aggregate number of common shares that may be issued under the Plan shall automatically increase by a number equal to the least of (a) 4% of the total number of common shares outstanding on the last calendar day of the prior fiscal year, (b) subject to adjustment for certain corporate transactions, 333,333 common shares, or (c) a number of common shares determined by the Company’s board of directors. As of January 1, 2016, the number of shares of common stock that may be issued under the 2013 Plan was automatically increased by 333,333 shares, increasing the number of shares of common stock available for issuance under the 2013 Plan to 1,180,950 shares. As of March 31, 2016, options to purchase 1,037,167 shares of common stock at a weighted average exercise price of $5.94 per share remained outstanding under the 2013 Plan. Terms of stock award agreements, including vesting requirements, are determined by the Company’s board of directors or its compensation committee, subject to the provisions of the respective plan they were granted. Options granted by the Company typically vest over a four year period. Certain of the options are subject to acceleration of vesting in the event of certain change of control transactions. The options may be granted for a term of up to ten years from the date of grant. The exercise price for options granted under the 2013 Plan must be at a price no less than 100% of the fair market value of a common share on the date of grant. The table below summarizes activity relating to stock options for the three months ended March 31, 2016: Number of Weighted Weighted Aggregate (a) Outstanding at December 31, 2015 1,077,330 $ 3.98 Granted 578,150 $ 4.86 Exercised — — Forfeited (8,471 ) $ 5.23 Expired — — Outstanding at March 31, 2016 1,647,009 $ 4.31 8.55 $ 1,710,985 Exercisable at March 31, 2016 636,207 $ 2.21 7.46 $ 1,405,047 Exercisable at March 31, 2015 239,369 $ 8.43 (a) The aggregate intrinsic value in this table was calculated on the positive difference, if any, between the closing market value of our common stock on March 31, 2016 of ($4.19) and the price of the underlying options. We recognize stock-based compensation expense over the requisite service period. Our share-based awards are accounted for as equity instruments. The amounts included in the consolidated statements of operations relating to stock-based compensation are as follows: Three Months Ended March 31, 2016 2015 Research and development expenses $ 234,922 $ 298,714 General and administrative expenses 374,186 341,359 Total stock-based compensation expense $ 609,108 $ 640,073 As of March 31, 2016, unamortized stock-based compensation was $4,770,187 and will be recognized over a weighted average period of 2.63 years.

Stock Purchase Warrants

Stock Purchase Warrants	3 Months Ended
	Mar. 31, 2016
Text Block [Abstract]
Stock Purchase Warrants	10. STOCK PURCHASE WARRANTS On January 14, 2015, the Company sold, in a private placement, an aggregate of approximately 1.1 million shares of common stock at a price of $7.00 per share. Investors received warrants to purchase up to approximately 1.1 million shares of common stock at an exercise price of $9.50. The Company raised approximately $7.1 million in net proceeds in the private placement of common stock and warrants. Additionally, on January 21, 2015, in a subsequent private placement, the Company sold an aggregate of 211,528 shares of common stock at a price of $9.33 per share and a warrant to purchase up to 211,528 shares of common stock at a price of $0.125 per share subject to the warrant. The Company raised approximately $1.9 million in net proceeds in the private placement of common stock and a warrant to purchase common stock. In both transactions, the exercise price of the warrants is $9.50 per share. The warrants will expire 3 years from their respective date of issuance. The warrants do not include a net-exercise feature. The warrants may be redeemed by the Company at a price of $0.001 per share upon notice to the holders thereof in the event that the closing bid for Aldeyra’s common stock for each of the fifteen consecutive trading days prior to such redemption is at least $20.00 per share and the average trading volume of Aldeyra’s common stock during such period is at least 50,000 shares per day. Following Aldeyra’s notification to the warrant holders of its exercise of the redemption right under the warrants, the warrant holders will have the option to exercise the warrants prior to the redemption date rather than having them redeemed. In connection with the Initial Public Offering, the Company issued the underwriters of the offering warrants to purchase up to 60,000 shares of common stock. The warrants are exercisable beginning on May 1, 2015 for cash or on a cashless basis at a per share price of $10.00. The warrants will expire on May 1, 2019. All of the warrants above were outstanding at March 31, 2016.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. COMMITMENTS AND CONTINGENCIES In the ordinary course of its business, the Company may be involved in various legal proceedings involving contractual and employment relationships, trademark rights, and a variety of other matters. The Company is not aware of any pending legal proceedings that will have a material impact on the Company’s financial position or results of operations.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying interim unaudited condensed financial statements and related disclosures are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s financial statements and related footnotes for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the Securities and Exchange Commission on March 30, 2016. The financial information as of March 31, 2016, the three months ended March 31, 2016 and 2015 is unaudited, but in the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of the financial position, results of operations and cash flows at the dates and for the periods presented of the results of these interim periods have been included. The balance sheet data as of December 31, 2015 was derived from audited financial statements. The results of the Company’s operations for any interim period are not necessarily indicative of the results that may be expected for any other interim period or for a full fiscal year. The Company’s management believes that its currently available resources, including amounts potentially available under its credit facility (Note 7), will provide sufficient funds to enable the Company to meet its expected obligations into approximately 2017 based on the Company’s current business plan. However, these amounts will not be sufficient for the Company to commercialize its product candidates or conduct any substantial, additional development requirements requested by the U.S. Food and Drug Administration (FDA). Additional funding may not be available to the Company on acceptable terms, or at all. If the Company is unable to secure additional capital, or meet financial covenants that could be implemented under the Company’s term loans in certain circumstances, it will be required to significantly decrease the amount of planned expenditures, and may be required to cease operations. Curtailment of operations would cause significant delays in the Company’s efforts to introduce its products to market, which is critical to the realization of its business plan and the future operations of the Company.
Use of Estimates	Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09 “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), to simplify the accounting for stock compensation. This update focuses on income tax accounting, award classification, estimating forfeitures, and cash flow presentation. The ASU becomes effective in 2017 for public companies and in 2018 for all other entities. Early adoption is permitted. Certain disclosures and detailed transition provisions apply. We do not believe that ASU 2016-09 will have a material impact on our financial statements. In November 2015, the FASB issued Accounting Standards Update (ASU) No. 2015-17 “Income Taxes: Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). To simplify the presentation of deferred income taxes, the amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This update is required to be effective for all public Companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted. We do not believe that ASU 2015-17 will have a material impact on our financial statements. In February of 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). Under ASU 2016-2, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is in the process of evaluating the future impact of ASU 2016-02 on its financial position, results of operations and cash flows. In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). The amendments in ASU 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for the Company in the first quarter of fiscal year 2017, with early adoption permitted. ASU 2015-03 should be applied on a retrospective basis to each individual period presented. Upon implementation, the change in reporting debt issuance costs will require the Company to reclassify any deferred financing costs from an asset to a reduction of the reported debt balance. The application of ASU 2015-03 is not expected to have a material impact on the presentation of the Company’s financial position.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Loss per Share	The following table summarizes the computation of basic and diluted net loss per share of the Company: Three Months Ended March 31, 2016 2015 Numerator: Basic Net loss – basic $ (4,967,352 ) $ (2,136,559 ) Diluted Net loss – basic (4,967,352 ) (2,136,559 ) Net loss – diluted $ (4,967,352 ) $ (2,136,559 ) Denominator: Basic Weighted-average number of common shares – basic 9,712,521 6,667,519 Diluted Weighted average number of common shares – diluted 9,712,521 6,667,519 Net loss per share: Basic $ (0.51 ) $ (0.32 ) Diluted $ (0.51 ) $ (0.32 )
Computation of Diluted Weighted-Average Shares Outstanding	The following potentially dilutive securities outstanding, prior to use of the treasury stock method or if-converted method, have been excluded from the computation of diluted weighted-average shares outstanding, because such securities had an antidilutive impact: Three Months Ended March 31, 2016 2015 Options to purchase common stock 1,647,009 874,032 Warrants to purchase common stock 1,384,608 1,384,608 Total of common stock equivalents 3,031,617 2,258,640

Cash, Cash Equivalents and Ma20

Cash, Cash Equivalents and Marketable Securities (Tables)	3 Months Ended
	Mar. 31, 2016
Cash and Cash Equivalents [Abstract]
Schedule of Cash, Cash Equivalents and Marketable Securities	At March 31, 2016, cash, cash equivalents and marketable securities were comprised of: Carrying Amount Unrecognized Gain Unrecognized Loss Estimated Fair Value Cash Equivalents Current Marketable Securities Cash $ 1,125,979 $ — $ — $ 1,125,979 $ 1,125,979 $ — Money market funds 22,545 — — 22,545 22,545 — U.S. Reverse repurchase agreements 9,000,000 — — 9,000,000 9,000,000 — Government securities 12,875,481 2,616 (816 ) 12,877,281 — 12,877,281 Available for Sale(1) 21,875,481 2,616 (816 ) 21,877,281 9,000,000 12,877,281 Total cash, cash equivalents and current marketable securities $ 10,148,524 $ 12,877,281 (1) Available for sale securities are reported at fair value with unrealized gains and losses reported net of taxes in other comprehensive income.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents information about the Company’s assets measured at fair value at March 31, 2016: March 31, 2016 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 22,545 $ — $ — $ 22,545 Repurchase agreements — 9,000,000 — 9,000,000 U.S. government agency securities — 12,877,281 — 12,877,281 Total assets at fair value $ 22,545 $ 21,877,281 $ — $ 21,899,826

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2016
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses at March 31, 2016 and December 31, 2015 were: March 31, December 31, 2016 2015 Accrued compensation $ 233,961 $ 394,773 Accrued research and development 590,879 550,323 Accrued general & administrative 211,048 192,676 Accrued other — 48,657 Accrued expenses $ 1,035,888 $ 1,186,429

Stock Incentive Plan (Tables)

Stock Incentive Plan (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Activity Relating to Stock Options	The table below summarizes activity relating to stock options for the three months ended March 31, 2016: Number of Weighted Weighted Aggregate (a) Outstanding at December 31, 2015 1,077,330 $ 3.98 Granted 578,150 $ 4.86 Exercised — — Forfeited (8,471 ) $ 5.23 Expired — — Outstanding at March 31, 2016 1,647,009 $ 4.31 8.55 $ 1,710,985 Exercisable at March 31, 2016 636,207 $ 2.21 7.46 $ 1,405,047 Exercisable at March 31, 2015 239,369 $ 8.43 (a) The aggregate intrinsic value in this table was calculated on the positive difference, if any, between the closing market value of our common stock on March 31, 2016 of ($4.19) and the price of the underlying options.
Schedule of Stock-Based Compensation Expense	The amounts included in the consolidated statements of operations relating to stock-based compensation are as follows: Three Months Ended March 31, 2016 2015 Research and development expenses $ 234,922 $ 298,714 General and administrative expenses 374,186 341,359 Total stock-based compensation expense $ 609,108 $ 640,073

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Basic and Diluted Net Loss per Share (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Basic
Net loss - basic	$ (4,967,352)	$ (2,136,559)
Diluted
Net loss - basic	(4,967,352)	(2,136,559)
Net loss - diluted	$ (4,967,352)	$ (2,136,559)
Basic
Weighted-average number of common shares - basic	9,712,521	6,667,519
Diluted
Weighted average number of common shares - diluted	9,712,521	6,667,519
Net loss per share:
Basic	$ (0.51)	$ (0.32)
Diluted	$ (0.51)	$ (0.32)

Net Loss Per Share - Computat25

Net Loss Per Share - Computation of Diluted Weighted-Average Shares Outstanding (Detail) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total of common stock equivalents	3,031,617	2,258,640
Employee Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total of common stock equivalents	1,647,009	874,032
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total of common stock equivalents	1,384,608	1,384,608

Cash, Cash Equivalents and Ma26

Cash, Cash Equivalents and Marketable Securities - Schedule of Cash, Cash Equivalents and Marketable Securities (Detail) - USD ($)	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Cash Cash Equivalents And Marketable Securities [Line Items]
Cash	$ 1,125,979
Money market funds	22,545
U.S. Reverse repurchase agreements	9,000,000
Government securities	12,875,481
Available for Sale	21,875,481
Cash Equivalents	10,148,524	$ 14,648,866	$ 15,721,097	$ 8,527,304
Current Marketable Securities	12,877,281	$ 12,941,776
Available for Sale [Member]
Cash Cash Equivalents And Marketable Securities [Line Items]
Unrecognized Gain	2,616
Unrecognized Loss	(816)
Estimated Fair Value	21,877,281
Cash Equivalents	9,000,000
Current Marketable Securities	12,877,281
Cash [Member]
Cash Cash Equivalents And Marketable Securities [Line Items]
Estimated Fair Value	1,125,979
Cash Equivalents	1,125,979
Money Market Funds [Member]
Cash Cash Equivalents And Marketable Securities [Line Items]
Estimated Fair Value	22,545
Cash Equivalents	22,545
U.S. Reverse Repurchase Agreements [Member]
Cash Cash Equivalents And Marketable Securities [Line Items]
Estimated Fair Value	9,000,000
Cash Equivalents	9,000,000
US Government Agencies Securities [Member]
Cash Cash Equivalents And Marketable Securities [Line Items]
Unrecognized Gain	2,616
Unrecognized Loss	(816)
Estimated Fair Value	12,877,281
Current Marketable Securities	$ 12,877,281

Cash, Cash Equivalents and Ma27

Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016
Maximum [Member]
Cash Cash Equivalents And Marketable Securities [Line Items]
Contractual maturities of available for sale securities	1 year

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Assets measured at fair value on a recurring basis	$ 21,899,826	$ 0
Liabilities measured at fair value on a recurring basis	$ 0	$ 0

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Assets:
Total assets at fair value	$ 21,899,826	$ 0
Money Market Funds [Member]
Assets:
Total assets at fair value	22,545
Repurchase Agreements [Member]
Assets:
Total assets at fair value	9,000,000
US Government Agencies Securities [Member]
Assets:
Total assets at fair value	12,877,281
Level 1 [Member]
Assets:
Total assets at fair value	22,545
Level 1 [Member] | Money Market Funds [Member]
Assets:
Total assets at fair value	22,545
Level 2 [Member]
Assets:
Total assets at fair value	21,877,281
Level 2 [Member] | Repurchase Agreements [Member]
Assets:
Total assets at fair value	9,000,000
Level 2 [Member] | US Government Agencies Securities [Member]
Assets:
Total assets at fair value	$ 12,877,281

Accrued Expenses - Schedule of

Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued compensation	$ 233,961	$ 394,773
Accrued research and development	590,879	550,323
Accrued general & administrative	211,048	192,676
Accrued other		48,657
Accrued expenses	$ 1,035,888	$ 1,186,429

Credit Facility - Additional In

Credit Facility - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended
	Nov. 30, 2015	Mar. 31, 2016	Nov. 30, 2013
Line of Credit Facility [Line Items]
Debt instrument annual interest rate	6.50%
Credit Facility, period of interest only payments		November 2013 through November 2014
Principal payments		$ 58,160
Maturity period of term loans		2016-11
Pacific Western Bank [Member]
Line of Credit Facility [Line Items]
Current borrowings capacity under credit facility			$ 1,500,000
Debt instrument annual interest rate		5.25%
Proceeds from credit facility		$ 2,000,000
Credit facility outstanding		$ 1,400,000
Debt instrument effective interest rate		7.58%
Loan repayment period		36 months
Term Loan [Member] | Pacific Western Bank [Member]
Line of Credit Facility [Line Items]
Credit facility amount		$ 5,000,000
Term Loan [Member] | Prime Rate [Member] | Pacific Western Bank [Member]
Line of Credit Facility [Line Items]
Debt instrument variable annual interest rate		2.00%
Tranche B Loans [Member] | Pacific Western Bank [Member]
Line of Credit Facility [Line Items]
Proceeds from credit facility		$ 3,000,000
Pacific Western Credit Facility [Member]
Line of Credit Facility [Line Items]
Net of debt discount amount		$ 100,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016USD ($)
Income Tax Disclosure [Abstract]
Provision for income tax benefit	$ 0
Deferred tax assets valuation allowance	100.00%

Stock Incentive Plan - Addition

Stock Incentive Plan - Additional Information (Detail)	Jan. 01, 2016shares	Mar. 31, 2016USD ($)Incentive_Plan$ / sharesshares	Dec. 31, 2015$ / sharesshares	Dec. 31, 2014shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of incentive plans | Incentive_Plan		3
Options to purchase of shares of common stock		1,647,009	1,077,330
Exercise price per share of common stock | $ / shares		$ 4.31	$ 3.98
Fair value of a common stock percentage		100.00%
Options granted, vesting period		4 years
Unrecognized compensation cost | $		$ 4,770,187
Weighted average period		2 years 7 months 17 days
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option granted in term years		10 years
2004 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock incentive plans, contractual term		Seven years
Stock incentive plan, termination date		2010-08
Options to purchase of shares of common stock		23,954
Exercise price per share of common stock | $ / shares		$ 3.24
2010 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options to purchase of shares of common stock		585,888
Exercise price per share of common stock | $ / shares		$ 1.41
2013 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options to purchase of shares of common stock		1,037,167
Exercise price per share of common stock | $ / shares		$ 5.94
Issuance of common stock authorized				625,000
Percentage of increase in common shares outstanding		4.00%
Increase in common stock outstanding | $		$ 333,333
Common stock issued under 2013 plan	333,333
Common stock available for issuance	1,180,950

Stock Incentive Plan - Summary

Stock Incentive Plan - Summary of Activity Relating to Stock Options (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options Outstanding, Weighted Average Exercise Price, and Additional Disclosures [Abstract]
Number of Shares Outstanding, Beginning Balance	1,077,330
Number of Shares, Granted	578,150
Number of Shares, Exercised	0
Number of Shares, Forfeited	(8,471)
Number of Shares, Expired	0
Number of Shares Outstanding, Ending Balance	1,647,009
Number of Shares Exercisable, Ending Balance	636,207	239,369
Weighted Average Exercise Price, Beginning Balance	$ 3.98
Weighted Average Exercise Price, Granted	4.86
Weighted Average Exercise Price, Exercised	0
Weighted Average Exercise Price, Forfeited	5.23
Weighted Average Exercise Price, Expired	0
Weighted Average Exercise Price, Ending Balance	4.31
Weighted Average Exercise Price Exercisable, Ending Balance	$ 2.21	$ 8.43
Weighted Average Contractual Term, Outstanding	8 years 6 months 18 days
Weighted Average Contractual Term, Exercisable	7 years 5 months 16 days
Aggregate Intrinsic Value, Outstanding	$ 1,710,985
Aggregate Intrinsic Value, Exercisable	$ 1,405,047

Stock Incentive Plan - Summar35

Stock Incentive Plan - Summary of Activity Relating to Stock Options (Parenthetical) (Detail) - $ / shares	Mar. 31, 2016	Jan. 21, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options Outstanding, Weighted Average Exercise Price, and Additional Disclosures [Abstract]
Closing market value of common stock	$ 4.19	$ 20

Stock Incentive Plan - Schedule

Stock Incentive Plan - Schedule of Stock-Based Compensation Expense (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 609,108	$ 640,073
Research and Development Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	234,922	298,714
General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 374,186	$ 341,359

Stock Purchase Warrants - Addit

Stock Purchase Warrants - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Jan. 21, 2015	Jan. 14, 2015	Mar. 31, 2016
Class of Warrant or Right [Line Items]
Common stock shares sold	211,528	1,100,000
Common stock issued price per share	$ 9.33	$ 7
Warrants redeemable into common shares	211,528	1,100,000
Exercise price of warrants	$ 9.50	$ 9.50
Private placement of common stock and warrants raised	$ 1.9	$ 7.1
Warrant to purchase Common stock exercise price	$ 0.125
Warrants expiration date	3 years
Warrants redemption price	$ 0.001
Share price of common stock	$ 20		$ 4.19
Trading volume of common stock	50,000
Warrant [Member]
Class of Warrant or Right [Line Items]
Warrants redeemable into common shares			60,000
Exercise price of warrants			$ 10
Warrants exercisable date			May 1, 2015
Warrants expiration date			May 1, 2019